Advisory: Proper Utilization and Safeguards of the Gender and Development (GAD) Budget

From	ERMELITA V. VALDEAVILLA Chairperson
For	All Heads of Executive Departments, National Government Agencies, Bureaus, Offices, State Universities and Colleges (SUCs), Government-Owned and/or Controlled Corporations (GOCCs), Legislative and Judiciary Branches, Constitutional Bodies, Other Government Instrumentalities, and All Others Concerned   All Provincial, City, Municipal, and Barangay Governments, DILG, Regional Offices, and All Others Concerned
Subject	Proper Utilization and Safeguards of the Gender and Development (GAD) Budget
Date	22 September 2025

1. BACKGROUND

The Magna Carta of Women (Republic Act No. 9710) provides the robust legal and policy foundation for gender mainstreaming in the Philippines. A cornerstone of this law is Section 36(a), which mandates all government entities to allocate at least five percent (5%) of their total appropriations to Gender and Development (GAD) programs, activities, and projects to advance gender equality and women’s empowerment.

To operationalize this mandate across all levels of government, separate joint circulars have been issued to provide specific guidance for national and local entities.

For national government agencies, the Philippine Commission on Women (PCW), the Department of Budget and Management (DBM), and the Department of Economy, Planning and Development (DEPDev)^[1] jointly issued circulars governing the preparation, implementation, monitoring, and evaluation of the GAD Plan and Budget (GPB) and GAD Accomplishment Report (GAD AR).^[2]

For Local Government Units (LGUs), a distinct set of guidelines was jointly issued by the PCW, the Department of the Interior and Local Government (DILG), DBM, and DEPDev to govern the equivalent processes for the local GPB and GAD AR.³

The central tenet of this policy is gender mainstreaming, wherein the GAD budget serves as a strategic tool to influence an agency’s mainstream programs and make them gender-responsive. It is not a separate fund but an attribution of the agency’s overall budget, reflecting the cost of integrating a gender perspective into its core mandates and services.

While these directives provide clear guidance, the PCW has noted recurring areas where government agencies and LGUs face challenges in fully and correctly applying the GAD budget. Addressing these concerns is crucial to strengthen compliance and ensure the effective implementation of the law. In particular, the following misconceptions continue to surface:

1. The GAD Budget as a Separate ‘Fund.’ A prevalent misconception is treating the GAD budget as a distinct fund source outside an agency’s appropriation under the General Appropriations Act (GAA), or the annual approved budget appropriations for LGUs or the corporate operating budget for Government-Owned and/or Controlled Corporations (GOCCs). This  leads to the erroneous practice of creating separate, often superficial, “GAD projects” instead of integrating GAD perspectives into the agency’s major programs and projects.
2. GAD Budget as an Automatic Fund for Agencies with GAD-related mandates. For agencies, including those with social development mandates, the GAD budget should not be viewed as an automatic augmentation of operational funds. Rather, it is a deliberate mechanism for gender mainstreaming. Its purpose is to influence and make existing Programs, Activities, and Projects (PAPs) more gender-responsive. Therefore, even within a GAD mandate, each PAP must be individually justified by its specific contribution to addressing an identified gender issue.
3. GAD Budget as a Checklist of Allowable Expenses. The GAD budget is not a simple checklist of allowable expenses. While certain activities are commonly recognized as GAD-attributable, this is the result of years of consistent gender analysis across agencies. Because gender issues and solutions vary by sector, cluster, mandate and localities, attribution must always be guided by context and purpose. Conducting a formal Gender Analysis remains the primary requirement for agencies to identify their unique gender gaps and to design targeted interventions, ensuring that the GAD budget is used strategically and effectively.
4. GAD Budget as a Contingency or Standby Fund. Some agencies and LGUs incorrectly perceive the GAD budget as a reserve fund to be used for activities that were not approved or funded in their regular budget. The GAD budget is not a contingency fund; its utilization must be anchored on the duly approved GPB, which identifies programs and activities that directly address gender issues relevant to the agency’s mandate.
5. Impermissible Earmarking of the GAD Budget for Other Purposes. The GAD budget must not be earmarked for purposes unrelated to an agency’s GAD mandates or the objectives of the MCW (RA 9710). Upholding this ensures alignment with the law and the GAA, while preserving the strategic focus of the budget toward advancing gender equality and women’s empowerment.

These persistent practices not only dilute the transformative potential of the GAD budget but also undermine the principles of gender mainstreaming enshrined in law.

This Policy Advisory is therefore issued to provide definitive guidance, reinforce the correct application of the GAD budget policy, and ensure that this vital mechanism is protected from misuse and is utilized effectively towards the goal of achieving gender equality and women’s empowerment.

2. POLICY GUIDANCE AND CLARIFICATIONS

In view of the foregoing, all concerned are hereby directed to strictly adhere to the following principles in the utilization of the GAD budget:

2.1 Integration, Not Separation. The GAD budget shall not be treated as a separate, contingency, reserve, or discretionary fund. It is sourced from the agency’s and LGU’s existing line-item appropriations within its total budget and represents a strategic allocation of resources to address gender issues and advance women’s empowerment.

2.2 Issue-Based and Evidence-Driven Programming. The allocation, utilization and attribution of the GAD budget must be strategic, purposeful, and evidence-based. All GAD PAPs must be:

• Anchored on identified gender issues substantiated by sex-disaggregated data (SDD) and gender analysis⁴;
• Designed either as client-focused (for external stakeholders) or organization-focused (for internal needs); and
• Note: Big-ticketed programs and projects must be assessed using the Harmonized Gender and Development Guidelines (HGDG) tool to determine the appropriate amount that may be attributed.

When applying Gender Equality, Disability, and Social Inclusion (GEDSI/GESI) frameworks, agencies and LGUs must demonstrate how the PAP addresses intersectional barriers faced by marginalized groups, ensuring inclusivity beyond gender.⁵

2.3 Prohibition on Diversion of Funds. The GAD budget is not a contingency, reserve, or discretionary fund and shall not be diverted for non-GAD PAPs,

contingency uses, or as stop-gap funding. Its utilization must strictly comply with the MCW, the GAA, and the GAD Planning and Budgeting Guidelines.

2.4 Primacy of the PCW-DBM-NEDA and PCW-DILG-DBM-NEDA Joint Circulars and Prohibition on External Earmarking. The planning, budgeting, and utilization of the GAD budget are guided by the Joint Memorandum Circulars (JMCs) issued by the PCW, DEPDev, DBM and the DILG. Therefore, any memorandum, department order, local issuance, or other policy from any government body that compels an agency to earmark, set aside, or transfer any portion of its GAD budget for external initiatives, contributions, or programs is without legal basis. Agencies are directed to utilize their GAD budget solely to address gender issues within their purview and for their specific constituency, as identified and approved in their GPB.

2.5 Upholding Transparency and Accountability. The utilization of the GAD budget shall be governed by the principles of transparency, accountability, and fiscal responsibility, in strict adherence to government accounting and auditing rules and regulations. All agency heads and personnel are directly responsible for ensuring that GAD funds are used judiciously and achieve tangible results in gender equality.

In line with this, and in consonance with the rules set forth by the Commission on Audit (COA) and the Civil Service Commission (CSC), the following are strictly prohibited:

• Diversion of Funds: GAD funds shall be used exclusively for the implementation of GAD PAPs identified in the PCW-endorsed GPB. Use of the GAD Budget for non-GAD purposes constitutes technical malversation.
• Cost Inflation (“Bloating”): The cost of GAD PAPs must be reasonable and consistent with prevailing market rates. Any act of artificially inflating expenses is a corrupt practice punishable under the Anti-Graft and Corrupt Practices Act (RA 3019)⁶ and the New Government Procurement Act (RA 12009)⁷ .
• Use for Personal Interest or Gain: Consistent with the rules on procurement of goods and services of the agency/office, the same standards shall apply to the utilization of the GAD budget. It shall not be used to benefit any private individual or employee, and officials must likewise avoid any conflict of interest in the implementation of GAD PAPs.

Violations shall be subject to administrative, civil, and/or criminal liability under applicable laws.

All agencies/LGUs must ensure the timely submission of their GPBs for PCW (agencies) and DILG/higher level LGUs (LGUs)⁸ review and endorsement, and the GAD ARs detailing the results of their GAD PAPs. The GAD AR must be supported by clear evidence and sex-disaggregated data (SDD), which is the minimum basis for gender analysis. The GPB and GAD AR are non-negotiable requirements and shall be made publicly available as part of the agency’s commitment to transparency.⁹

3. OPERATIONAL GUIDE AND KEY REMINDERS

To ensure the effective implementation of the GAD budget policy and prevent misuse, all shall be guided by the following operational procedures and reminders, grounded in the PCW-DBM-NEDA and PCW-DILG-DBM-NEDA Joint Memorandum Circulars.

3.1 Computation of the GAD Budget. The basis for computation shall always be the enacted GAA for the fiscal year. Agencies shall not use internal budget ceilings provided during budget preparation or the figures in the National Expenditure Program (NEP) as the final basis for the 5% GAD budget, as these may change during the legislative process. For GOCCs, the GAD budget shall be based on their corporate operating budget (COB), while for LGUs, it is based on their annual budget appropriations.¹⁰

3.2 Planning and Allocation. The GAD Plan and Budget (GPB) is the primary instrument and must be anchored on a thorough gender analysis of the agency/LGU mandate and constituency. It is the basis for allocating and utilizing the GAD budget. GAD PAPs in the GPB can be either client-focused (addressing gender issues of external stakeholders) or organization-focused (addressing internal agency gender issues and concerns). The ultimate goal of gender mainstreaming is the attribution of a portion of the agency/LGU major, mainstream PAPs to the GAD budget, as assessed using the Harmonized Gender and Development Guidelines (HGDG) tool.

3.3 Implementation. The implementation and utilization of the GAD budget shall be guided by the following:

3.3.1 For Endorsed GPBs – The agency shall strictly adhere to the PAPs detailed in the PCW-endorsed GAD Plan and Budget.

3.3.2 For GPBs Not Yet Endorsed or Returned with Comments – An agency’s legal mandate to implement GAD PAPs remains in effect. Implementation shall proceed but must be limited to PAPs that are compliant with existing policies, and must be directly informed by the official comments and recommendations provided by PCW and DILG/higher level LGUs for LGUs.

3.3.3 Realignment – Any realignment of an endorsed GPB is subject to the procedures outlined in the relevant JMC and must be supported by a strong justification.

3.3.4 Full Implementation and Utilization of the GAD Budget – All agencies and LGUs are highly encouraged to ensure the full implementation of all GAD PAPs as detailed in their GPB. This is to ensure that the actual GAD expenditure, as reflected in the GAD AR, also meets or exceeds the mandated five percent (5%) threshold. It must be emphasized that compliance is measured not only by the allocation of at least 5% of the total budget but, more importantly, by the actual utilization of this budget for the intended GAD PAPs. Agencies and LGUs are therefore directed to strategically manage and monitor their GAD funds to achieve the complete implementation of all targets set forth in their endorsed GPB for the fiscal year.

3.4 Monitoring, Reporting, and Documentation. All agencies are required to submit an annual GAD AR to the PCW while LGUs shall submit to the higher level LGUs or to DILG regional offices (for provincial LGUs and SUCs) on or before the prescribed deadline. The GAD AR is a document that reflects the performance and utilization of the GAD budget against the approved GPB and details the results achieved. Accomplishment reports must present concrete evidence of performance. This includes, at the minimum, sex-disaggregated data (SDD) for all outputs and qualitative descriptions of outcomes. Reporting should focus on results and the changes brought about by the GAD PAPs.

3.5 Accountability and Authority. The GAD budget is subject to audit by the COA. Improper use, diversion, or unsubstantiated attribution of funds to the GAD budget may result in Audit Observation Memoranda (AOM), disallowances, and potential administrative liability for responsible officials under RA 9710 and other existing laws.

The PCW, DBM, DEPDev and the DILG are the recognized authorities that issue the governing guidelines on the GAD planning and budgeting process. All agencies shall refer to the issuances or JMCs from these oversight bodies for definitive guidance and clarifications.

3.7 Prohibited Practices. To preserve the integrity and strategic purpose of the GAD budget, all agencies and LGUs are explicitly prohibited from engaging in the following practices. These actions are considered violations of the guidelines jointly issued by the PCW, DBM, DEPDev and the DILG, and may be subject to audit observations and disallowances.

3.7.1 Circumventing the National Budget Process – Utilizing the GAD budget as a substitute or alternative funding source for PAPs that were not approved or included in the agency’s budget under the GAA. The GAD budget is not a discretionary fund for unapproved initiatives disguised as “GAD programs.”

3.7.2 Issuance of Unvetted GAD Policies – Formulating and issuing internal or inter-agency policies, guidelines, or memoranda that govern or direct the use of the GAD budget without prior consultation with, and formal clearance from, the PCW and or DILG for LGUs. This practice undermines the standardized, evidence-based, and coherent implementation of the national GAD budget policy.

3.7.3 Integrity and Exclusive Use of the Gender and Development (GAD) Budget – The GAD budget must be used exclusively for the planning and implementation of an agency’s own mandate-specific GAD PAPs. This principle of exclusive use strictly prohibits misuse from both external and internal sources. Therefore, agencies must disregard any policy or directive from government bodies and even private entities—without the endorsement/approval of the PCW, DBM, DEPDev and/or the DILG—that compels the pooling, mandatory contribution, or transfer of GAD funds, as such directives have no legal basis. Furthermore, the GAD budget shall not be treated as a separate “special fund” to be misappropriated for administrative overhead, superficial activities, or any expense not directly addressing a clearly identified gender issue.

4. EFFECTIVITY

This Advisory shall take effect immediately and shall remain in force until amended or superseded by subsequent issuances consistent with RA 9710 and the annual GAA.

(Sgd.)

ERMELITA V. VALDEAVILLA
Chairperson

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