Department of Budget and Management (DBM) has reminded concerned government agencies to conduct program convergence budgeting (PCB) during the 2026 budget preparation.
DBM Circular Letter No. 2025-4 posted on the agency’s website on Friday states that the adoption of the PCB aligns with the current administration’s commitment to streamline government programs and projects by rationalizing similar, overlapping and/or redundant programs/activities/projects (P/A/P) in order to optimize fiscal resources.
The circular applies to all lead and participating agencies with budget proposals for P/A/Ps which form part of convergence programs and projects.
“This ensures the efficient allocation of government resources to programs and projects, coordinated in a holistic approach across departments/agencies working towards shared goals,” the DBM said in its circular.
Last Thursday, the DBM and the National Economic and Development Authority signed a Joint Memorandum Circular on Strengthening the PCB Approach.
“The PCB enables government agencies to work together, ensuring consistency in program targets, beneficiaries, focus areas, implementation timelines, and resource requirements, guided by a unified Master Plan or roadmap. It also opens up opportunities for partnerships with development groups and the private sector,” Budget Secretary Amenah Pangandaman said during the signing ceremony held at the DBM office in Manila.
The DBM said the PCB optimizes government funding for major programs in healthcare, livelihood, tourism, agriculture and environmental protection, so that resources are allocated and utilized efficiently.
According to the DBM’s circular, lead agencies must convene meetings with participating agencies for the alignment of assumptions, targets, beneficiaries, focus areas and implementation timelines for respective PCB programs.
The agencies must also evaluate funding proposals and corresponding targets submitted by the participating agencies to ensure that it is reasonable, appropriate and aligned with the goals and objectives of PCB programs.
The lead agencies should prepare and submit a consolidated report detailing convergence programs by agency together with the funding requirements to the DBM on or before March 31.
