This Circular is being issued to prescribe the criteria and conditions on the grant of the PBB for FY 2022 performance, to be given in FY 2023. In FY 2021, a simplified scheme was adopted to strengthen the effectiveness of the existing incentive system and assist agencies in achieving the goals and expected outcomes of the government. Under the simplified scheme, the PBB criteria were classified according to the four dimensions of accountabilities. The good governance conditions were considered separate agency accountabilities. A scoring system for accomplishments was introduced, which also enables agencies to conduct self-assessment of their overall performance. The agency score was tied~up to the rates of incentives and higher threshold for individual performance rating was required in order to be eligible for the performance-based incentive.

The FY 2022 cycle shall continue to observe the simplified PBB scheme. The FY 2022 PBB will sustain focus on results especially on the delivery of agency performance commitments and optimum utilization of agency budget, and make stronger the roles of agencies in ensuring accountability for results of their delivery units. Further, the FY 2022 PBB shall measure and evaluate agency performance highlighting the public’s satisfaction with the quality of public service delivery, utilization of resources, and strengthened agency stewardship. The FY 2022 PBB shall facilitate a more transparent and objective assessment of performance and timely release of the PBB to eligible agencies.