Linking planning and budgeting

For both the national and local governments, it is budget preparation time again.
           
The discussion is often centered on whether there are enough funds to support the proposed budget. Also, an important part of this decision-making process is determining what projects to fund.
           
A question that may be raised is: does the budget adhere to a development plan?
           
To many local government units (LGUs) the basic question in this regard is: do the LGUs have a development plan?
           
What seems to be the prevalent practice is to have an Annual Investment Program (AIP) which is first passed by the Sanggunian and then the budget is tackled.
           
The AIP often contains an enumeration of the goals, objectives, and vision upon which the LGUs will base its listing of projects.
           
Is such a discussion in the AIP sufficient to ensure that the budget will be used efficiently and effectively to promote the socio-economic development of the town, city or province?
           
My view here is that it is not sufficient.
           
The reason for this is that to arrive at objectives, there is a need to carefully analyze facts, trends and problems which are then the basis for proposing strategies on how to solve these problems and make the best use of available resources.
           
The best course of action is: prepare a Development Plan first before deciding on the AIP and the budget.

This way, LGU resources will be put to their best use to promote the common good and the welfare of the LGUs constituents.