THE Department of Budget and Management (DBM) has begun its executive review of 2012 budget proposals submitted by departments and agencies, with focus on the “social contract” priorities of the Aquino administration, Budget Secretary Florencio Abad Jr. said on Monday.

Abad said in a statement that the Executive Review Board (ERB) has commenced with its review, keeping in mind President Benigno S. Aquino III’s directive to align next year’s spending plan with his administration’s social contract with the people.

“We will scale up programs, activities and projects that are in line with the social contract. Meanwhile, we will scale down, if not eliminate altogether, those which are unaligned,” Abad said.

Abad, who chairs the ERB, added that the body would “also be tackling operational issues that have hindered the agencies from optimally implementing their projects” and “will consider measures to escalate transparency, accountability and citizen participation in the use of public funds.”

He reiterated that lump-sum funds under agency budgets, which have caused undue delays in program and project implementation, will not be allowed.

Abad said aside from the fact that agencies take up to midyear to submit special budget requests for the release of such funds, lump-sum budgeting is generally considered as least transparent.

The DBM said the ERB, which has as members all DBM undersecretaries and assistant secretaries, began deliberations on May 24 with a plenary discussion on macroeconomic assumptions and fiscal levels, dimensions of the 2012 budget and status of the 2010 and 2011 budgets, and profile of personal services.

“It will end on June 10 where a matrix of major programs and projects directed towards the five Key Result Areas of the Aquino Social Contract [per Executive Order 43] will be presented; as well as the catch-up plan for 2011 and new strategy for project implementation for 2012,” the DBM said.