budget reform agenda & highlights of the 2015 budget

8/10/2019 Budget Reform Agenda & Highlights of the 2015 Budget

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Budget Reform Agenda &Highlights of the 2015 Budget

by Assistant Secretary Janet Abuel

November 6, 2014

Presentation for the Good Governance Dialogue in Davao


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2

HealthcareInsufficient funding, too

many programs, low

coverage (ADB). Poverty

incidence worsened

from 2003-2009

Poor targeting &

coverage: only 1M

or 21% of poor

households covered by

PhilHealth in 2010

Social Protection

Basic

Education

Infrastructure

As of 2010, Phl behind MDG goal

of universal primary education.

Huge backlog of 66,800

classrooms & 145,827 teachers

Low infra spending &poor quality: only 86%

of road network paved

& 27% needs to be

rehabilitated as of 2009

2

The Situation We Came Upon

Inadequate Services, Lingering Backlogs


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Aquino Budget Transformation Agenda

Spendingwithin means

Spending on the right priorities

Spending with measurable results

In an empowering regime of

transparency, accountability

& citizens engagement

3


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Spending Within Means

Fiscal Deficit reduced to andmaintained at just 2.0 % of GDP

Improved Revenue Collection without

raising new taxes (except Sin Tax)

Early Budget Enactment since2011 GAA, eliminating the practice of

frequent budget reenactment

4


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Spending Within Means

Investment Grade = Less Borrowing Cost

Baa3in October 2013

BBB-in March 2013

BBBin May 2014

Ba3in July 2009

BBin May 2009

BB-in July 2009

BBBin May 2013

BBB-in Mar 2009

5


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Spending on the Right Priorities

Zero-Based Budgetingto review and

evaluate major ongoing programs and projects

Budget Priorities Framework to focus

resources on programs for Inclusive Growth

6

Focus Geographic Areas to focus on

poorest areas and tailor-fit interventions

Social services sector has greater share at37%; debt burden down to 16% (2015)


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7


Huge Investments in Social Services and Infrastructure(as percent of total budget)

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8


Resource Gaps Closed

Universal

Healthcare4.09 million household

beneficiaries covered

as of June 2014

14.7 million poor &

near-poor families

covered by end-2014

Conditional

Cash Transfer

Basic

EducationInfrastructure

2010 classroom & teacher

supply closed as of May 2014

to support K-12 roll-out

88.2% National Road

Network Paved

as of March 2014;

100% by 2016.

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Spending With Measurable Results

Performance-Informed Budgetingto clearly link budgets with performancetargets (outcome and output)

GAA-as-Release Document and other

reform measures to ensure faster budget

execution and delivery of services

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Performance-Informed Budgeting


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Spending with Measurable Results

Growth & Poverty

GDP grew 6.8% in 2012 &7.2% in 2013,

the fastest in ASEAN

Poverty incidence decreased to 19.1%

of families in 1st semester of 2013from 22.3% & 22.9% in 2012 & 2009;

12


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Citizen Empowerment

Introduced the Transparency Seal, the

Open Data Portal,the Peoples Budget

publications, and other meansto improve

citizens access to budget information

Established participation mechanisms like

Grassroots Participatory Budgeting and

Agency-CSO Budget Partnerships to give

citizens a greater voice in the budget process

13


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Php2.606TrillionProposed National Budget

for Inclusive & Sustained Development

2015 Budget:

Kaunlaran Para sa Lahat

15


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Enabling Environment for

Inclusive Development

Climate Change

Adaptation and

Mitigation

Budget Strategy:Priority Programs for Inclusive Development

Social Protection

and Social Services

Economic Expansion

and Job Creation

16


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17

E i


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Top 10 Executive Departments

Level Rank Level Rank

Education1 309.5 1 365.1 1 17.9Public Works and Highways2 219.9 2 300.5 2 36.7

National Defense3 123.2 4 144.0 3 16.9

Interior and Local Government3 136.1 3 141.4 4 3.9

Social Welfare and Development4 83.4 6 109.0 5 30.7

Health2, 4 90.8 5 102.2 6 12.6

Agriculture5 80.0 7 88.9 7 11.1

Transporation and Communications2, 4 48.8 8 59.0 8 20.9

Environment and Natural Resources3 23.9 9 21.3 9 (11.0) 6

Science and Technology4 13.1 10 19.4 10 47.7

Notes:

1

Inclusive of School Building Program and transfers from MPBF2 Inclusive of budgetary support to attached corporations3Inclusive of transfers from MPBF and PGF4Inclusive of transfers from MPBF5Inclusive of FPA, budgetary support to attached corporations and budgetary support to NFA, PCA and NIA

Figures indicated here are the "all in" budgets of these agencies: their agency-specific budget plus allocations from

special purpose funds.

6 The reduction is due to lower PS requirements because of completed rationalization program, lower requirements for

cadastral survey and geo-hazard mapping activities

Particulars2014 Program 2015 Proposed Growth

Rate

(2014 vs. 2015,in Billion Pesos)

18


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Budget Focus:

Poorest and climate-vulnerable provinces

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2 0 1 5 E X P E N D I T U R E P R O G R A M

REGIONS 11, 12, ARMM

P55.1 Billion 3.5 % Growth

Region 11


Region 12

SUBTOTAL P 157.2 Billion

TOTAL MINDANAO P 314 Billion

20

Note: these amounts do not yet include

allocations for major programs and projects to

be implemented by the central offices of

national government agencies in these regions


ARMM


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21

Pantawid Pamilyang Pilipino

Maguindanao

Php 2.37 Billionfor 212,863 households

Region XI 3.51 247,171

Region XII 4.32 244,690

ARMM 6.04 448,757

Total 13.87 940,618

Amount (inbillion pesos)

Region Target HouseholdBeneficiaries

U


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22

Universal Healthcare:Healthcare Insurance Premiums

Davao Del Sur

P691 MillionFor 288,099 families

Region XI 1.69 702,972

Region XII 1.96 816,583

ARMM 3.20 1,333,790

Total 6.85 2,853,345

Amount (in

billion pesos)Region

Target Family

Beneficiaries

Ed


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23

Basic Education:Educational Facilities

Lanao Del Sur

P718 MillionTo construct 575 classrooms

Region XI 0.84 674

Region XII 0.47 375

ARMM 1.65 1,319

Total 2.96 2,368

Amount (in

billion pesos)Region

Target Number

of Classrooms


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24

Transport Infrastructure

Air Transport Php 1,227 M

Mati Airport Php 5 M

General Santos Airport Php 959 M

Cagayan de Sulu Airport Php 10 M

Cotabato Airport Php 5 M

Sanga-Sanga Airport Php 248 M

Maritime Transport Php 154 M

Region XI Php 50 M

ARMM Php 104 M

Particulars 2015


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25

Peace and Development

BANGSAMORO

P7.3 Bto deliver crucial social &

economic services in

conflict-torn areas

P2.7 Bto support the Comprehensive

Agreement on the Bangsamoro(CAB) implementation thru key

programs & institutional build-up

PAMANA

S t f B D l t


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2015

Total Php 2,690 M

Php 2,462 M

DSWD Immediate Assistance Php 950 MAuxillary Social Services for PWD Combatants

Sustainable Livelihood Program

Cash for Work and Cash for Training

DA Agri-enterprise support program 31 municipalities Php 880 M

6 acknowledged camps

TESDA Technical Vocational Training Identified areas in Regions IX, X, XI and Php 335 M

and XII

DEPED Literacy Program (Alternative Learning System) Php 231 M

PHIC Philhealth Insurance Cards Php 50 M

CHED Php 16 M

II. Annex on Normalization Php 228 M

OPAPP Implementation of Annex on Normalization Php 228 MIdentified areas in Regions IX, X, XI and

XII

Agricultural Development Support Program: SWIP,

FMRs, Farm inputs and machineries, Seeds

Identified areas in Regions IX, X, XI andXII

Identified areas in Regions IX, X, XI and

XII

Particulars

Identified in areas in Regions IX, X, XIand XII.

CHED Scholarship Program Total of 1,550 beneficiaries in 31

municipalities

I. Socio-Economic

Construction and renovation of Community Based

Infrastructure: (access roads, level 2 water system)

Support for Bangsamoro Development

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2014 2015

Ph 7,215 M Ph 7,301 M

Php 1,547 M Php 3,143 M

Community-Driven Development (DA) Php 1,735 M Php 1,800 M

Community Support (DSWD) Php 922 M Php 760 M

Community-Driven Development (ARMM) Php 2,660 M Php 655 M

Road Construction (DPWH) Php 519 M

Reforestation (DENR) Php 200 M

Php 57 M Php 100 M

Support to Indigenous Peoples (NCIP) Php 57 M Php 62 MHealth Insurance Premiums (PHIC) Php 15 M Php 48 M

Study Grant (CHED) Php 4 M Php 9 M

Solar Electrification (DOE) Php 19 M Php 3 M

Sitio Electrification and Brgy. Line Enhancement

Pro ects NEA

Particulars

Community Infrastructure and Support (DILG)

Total

PAMANA Program

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GENUINE DEVOLUTIONNecessary for Inclusive Development

LGUs with capacity to deliver

services & to implementgovernance standards

Communities & local CSOs

empowered to engagegovernance & service delivery

28


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Performance Challenge Fund:Rewarding Best-Performing LGUs

For 2015:

PhP 1BTo reward LGUs that

meet Seal of Good LocalGovernance standards

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Grassroots Participatory BudgetingEmpowering Communities through the Budget

Total for 2015:

Regions XI, XII, & ARMM

are allocated PhP1.95B

PhP 20.9B

for 173 cities & municipalities

for 1,590 cities & municipalities

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Grassroots Participatory BudgetingEmpowering Communities through the Budget

31

Region Province Total

ARMM Basilan 16,626,000

Lanao Del Sur 81,219,844

Maguindanao 98,119,000

Sulu 79,305,700

Tawi-Tawi 38,650,000REGION XI Compostela Valley 160,500,000

Davao Del Norte 165,500,000

Davao Del Sur 268,500,000

Davao Oriental 166,500,000

REGION XII Cotabato 294,000,000

Cotabato City 30,000,000Sarangani 139,956,875

South Cotabato 217,000,000

Sultan Kudarat 198,991,431


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Moving Forward to 2016


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Tuloy-Tuloy na Kasaganaan

Growth sustained &

spread throughout

Philippines

Poverty further reduced

& middle class broadened

33


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at Kapayapaan

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Sa Daang Matuwid

Good Governance Made Irreversible:

Reforms deeply

installed as policies

& systems of public

institutions

Reforms lead to

tangible benefits

to people

Technology

leveraged forgreater efficiency

& accountability

Strong

constituencypresent to support

& demand reforms

35


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Budget Reform Agenda &Highlights of the 2015 Budget

by Assistant Secretary Clare Amador

October 23, 2014

Presentation for the Good Governance Dialogue in CDO


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Backup Slides

Gross Regional Domestic Product


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0

1

2

3

4

5

6

7

8

09-10 10-11 11-12 12-13

Mindanao Visayas Luzon NCR

Region Per CapitaRGDP

Region XI PhP 54,359

Region XII PhP 41,996

Region ARMM PhP 14,566

Gross Regional Domestic Product

Contribution to GDP Growth by Major Island

Group

In percentage points

Poverty Incidence of Population by Major Island


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y p y jGroup

39

26.5 26.3 25.5

17.9 17.215.7

34.533.6 33.2

40.441.6 41.3

0

5

10

15

20

25

30

35

40

45

2006 2009 2012

Philippines Luzon Visayas Mindanao

2006, 2009 and 2012

Poverty Incidence of Population in Southern Mindanao


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30.6 31.4 30.7

37.9 38.3

44.747.1 47.4

55.8

0.0

10.0

20.0

30.0

40.0

50.0

60.0

2006 2009 2012

Region XI Region XII Region ARMM

Poverty Incidence of Population in Southern Mindanao2006, 2009 and 2012


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1. Social Protection

2. Universal Healthcare3. Basic Education

SOCIAL PROTECTIONAND SOCIAL SERVICES

41

Social Protection Programs


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Social Protection Programs(Pantawid Pamilyang Pilipino Program)

Total 579,346 6,257 27,469 949

Region XI 87,618 946 8,316 304Davao del sur 87,618 946 8,316 304

Region XII 109,660 1,184 8,756 301

North Cotabato 76,438 826 6,954 239

Saranggani 33,222 359 1,802 62

ARMM 382,068 4,126 10,397 344

Lanao del Sur 97,604 1,054 - -

Maguindanao 177,198 1,914 10,295 341

Sulu 107,266 1,158 102 3

Particulars

CCT MCCT

Physical Target

Amount

(in million

pesos)

Physical Target

Amount

(in million

pesos)


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Social Protection Programs

Total 157,211 784 70,173 421 32,845 328 14,076 70

Region XI 24,441 40 10,534 63 4,866 49 2,085 10

Davao del sur 24,441 40 10,534 63 4,866 49 2,085 10

Region XII 73,330 652 32,500 195 11,298 113 4,842 24

North Cotabato 38,286 597 18,723 112 7,032 70 3,014 15

Saranggani 35,044 55 13,777 83 4,266 43 1,828 9

ARMM 59,440 93 27,139 163 16,681 167 7,149 36

Lanao del Sur 18,662 29 9,626 58 5,005 50 2,145 11

Maguindanao 31,702 49 9,055 54 8,672 87 3,717 19

Sulu 9,076 14 8,458 51 3,004 30 1,288 6

Particulars

Social Pension for Indigent

Senior Citizens

Supplemental Feeding

Program

Physical

Target

Amount

(in million

pesos)

Physical

Target

Amount

(in million

pesos)

Sustainable Livelihood Program

Microenterprise Employment Facilitation

Physical

Target

Amount

(in million

pesos)

Physical

Target

Amount

(in million

pesos)

U l l h


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Universal Healthcare

Total 1,782,169 4,277 241 714 1,241 278 - 113 - 33

Region XI 288,099 691 131 279 220 48 - 17 - 9

Davao del sur 288,099 691 131 279 220 48 17 9

Region XII 388,744 933 53 199 304 67 - 25 - 10

North Cotabato 274,167 658 41 137 211 46 17 6

Saranggani 114,577 275 12 63 93 21 8 4

ARMM 1,105,326 2,653 57 235 717 163 - 72 - 14

Lanao del Sur 251,120 603 24 83 300 68 18 5

Maguindanao 557,883 1,339 5 30 264 61 35 5

Sulu 296,323 711 28 122 153 34 19 4

a/ Includes Doctors, Nurses, Midwives and Dentists

Particulars

National Health

Insurance Program

Health Facilities

Enhancement Program

Doctors to the Barrios

and Rural Health

Practice Programa/

Physical

Target

Amount

(in million

pesos)

Physical

Target

Amount

(in million

pesos)

Physical

Target

Amount

(in million

pesos)

Physical

Target

Amount

(in million

pesos)

Physical

Target

Amount

(in million

pesos)

Family Health and

Responsible Parenting

Disease prevention and

Control

Ed


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Basic Education

Total 1,544 1,930 - 78 69,480 49 16 40

Region XI 233 291 - 9 10,485 8 11 28

Davao del sur 233 291 9 10,485 8 11 28

Region XII 188 235 - 16 8,460 7 5 13

North Cotabato 96 120 10 4,320 3 2 5

Saranggani 92 115 6 4,140 3 3 8

ARMM 1,123 1,404 - 53 50,535 40 - -

Lanao del Sur 575 719 20 25,875 21 - -

Maguindanao 319 399 24 14,355 11 - -

Sulu 229 286 9 10,305 8 - -

Particulars

Construction of

ClassroomRepair of Classrooms School Furniture

Technical Vocational

Laboratories

Physical

Target

Amount

(in million

pesos)

Physical

Target

Amount

(in million

pesos)

Physical

Target

Amount

(in million

pesos)

Physical

Target

Amount

(in million

pesos)

B Ed


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Basic Education

Total 3,491,949 153 1,201 302 621 33 42,266 275 57,500 108

Region XI 482,161 21 168 32 57 3 9,387 61 5,500 10

Davao del sur 482,161 21 168 32 57 3 9,387 61 5,500 10

Region XII 1,130,498 50 281 59 266 13 18,388 120 17,000 32

North Cotabato 754,495 34 149 32 195 10 13,748 89 12,250 23

Saranggani 376,003 17 132 26 71 4 4,640 30 4,750 9

ARMM 1,879,290 82 752 212 298 17 14,491 94 35,000 66

Lanao del Sur 846,898 37 287 81 171 9 3,574 23 16,750 31

Maguindanao 656,399 28 278 70 97 5 8,461 55 12,000 23

Sulu 375,993 16 187 61 30 2 2,456 16 6,250 12

Abot Alam Program

Physical

Target

Amount

(in million

pesos)

Physical

Target

Amount

(in million

pesos)

Physical

Target

Amount

(in million

pesos)

Physical

Target

Amount

(in million

pesos)

Particulars

Provision of Textbooks

and Instructional

Materials

Government Assistance

for Students and

Teachers for PrivateEducation (GASTPE)

Physical

Target

Amount

(in million

pesos)

DepEd Computerization Program

Provision of ICT Packages Internet Connectivity


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ECONOMIC EXPANSIONAND JOB GENERATION

1. Transportat Infrastructure2. Agriculture Development

47

1 I f a t u tu e DPWH


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1. Infrastructure: DPWH

Region XI 13.73

Region XII 8.89

ARMM 9.60Total 32.22

Amount (inbillion pesos)

Region

1 I f a t u tu e DOTC


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1. Infrastructure: DOTC

Air Transport Php 1,227 M

Mati Airport Php 5 M

General Santos Airport Php 959 M

Cagayan de Sulu Airport Php 10 M

Cotabato Airport Php 5 M

Sanga-Sanga Airport Php 248 MMaritime Transport Php 154 M

Region XI Php 50 M

ARMM Php 104 M

Particulars 2015

2 Agriculture Development (1)


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2. Agriculture Development (1)

Provinces covered by

FGA

Production

Support

Market

Development

Ext. Support Educ.

and TrainingR&D

Region XI Php 97 M Php 3 M Php 16 M -

Davao del Sur Php 97 M Php 3 M Php 16 M -

Region XII Php 150 M Php 0.2 M Php 18 M Php 4 M

North Cotabato Php 101 M Php 0.2 M Php 14 M Php 4 M

Saranggani Php 49 M Php 0.04 M Php 4 M -

ARMM Php 201 M Php 1 M Php 50 M Php 34 M

Lanao del Sur Php 75 M Php 0.3 M Php 15 M Php 3 MMaguindanao Php 106 M Php 0.7 M Php 28 M Php 32 M

Sulu Php 20 M - Php 7 M -

50

Note The amounts are based only on the budget of the DA-OSEC, staff bureaus and regional offices

2 Agriculture Development (2)


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2. Agriculture Development (2)

Provinces covered by

FGA

Irrigation

NetworkFMR

Agri Equipment &

Facilities SupportTotal

Region XI Php 50 M Php 135 M Php 60 M Php 362 M

Davao del Sur Php 50 M Php 135 M Php 60 M Php 362 M

Region XII Php 52 M Php 330 M Php 241 M Php 794 M

North Cotabato Php 35 M Php 250 M Php 186 M Php 591 M

Saranggani Php 16 M Php 80 M Php 55 M Php 203 M

ARMM Php 9 M Php 268 M Php 201 M Php 1,040 M*

Lanao del Sur Php 6 M Php 93 M Php 88 M Php 364 M*

Maguindanao Php 3 M Php 90 M Php 92 M Php 443 M*

Sulu Php 0.8 M Php 85 M Php 21 M Php 233 M*

51

Note: The amounts are based only on the budget of the DA-OSEC, staff bureaus and regional offices

* Includes infrastructure support for ARMM (Php 84 M for Lanao del Sur, Php 93 M for Maguindanao and Php 99 M for Sulu)


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CLIMATE CHANGEADAPTATION AND

MITIGATION

1. Build Back Better2. Risk Resiliency Program

52

1 Build Back Better


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1. Build Back Better

Php 13,000 M Php 14,000 M *

Php 4,850 M Php 6,508 M

DA-OSEC 500 M 500 M

DepEd 655 M 1000 M

DOH 500 M 500 MDND-OSEC 353 M 353 M

DND-OCD 530 M 530 M

DPWH 650 M 800 M

DSWD 663 M 1,325 M

DOTC 1000 M 1,000 M

NIA 500 M

Php 20,000 M Php 1,000 M

2015Particulars

Quick Response Fund

Rehabilitation and Reconstruction

Program

2014

National Disaster Risk Reduction and

Management Fund (Calamity Fund)

*of which P1 B is for Peoples Survival Fund

N ti l G i P


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National Greening Program

area

planted

(ha)

seedling

produced

(no.)

areamaintained

and

protected

ha

areamaintained

and

protected

haRegion XI 3,476 1,987,990 15,189 Php 90 M 49 Php 9 M Php 99 M

Davao del Sur 3,476 1,987,990 15,189 Php 90 M 49 Php 9 M Php 99 M

Region XII 7,773 3,208,100 28,209 Php 161 M 81 Php 14 M Php 177 M

North Cotabato 2,371 1,429,000 12,799 Php 65 M 41 Php 7 M Php 73 M

Saranggani 5,402 1,779,100 15,410 Php 96 M 40 Php 7 M Php 104 M

ARMM - - - - - - -

Lanao del Sur - - - - - - -

Maguindanao - - - - - - -

Sulu - - - - - - -

Provinces covered

by FGATotal

AmountAmount

Area Planted, Seedling Production, Maintenance &

Protection and PMS

Hiring of ENR Extension

Officers

budget reform agenda & highlights of the 2015 budget

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