creating 17 national capital regions

Creating 17 National Capital Regions (NCRs)

Pump-Priming Regional Development thru a GRDP-based Socially-Equitized Fund Allocation Scheme for Annual

Government Funds

1 Hilario P. Martinez

Imagine the Philippines with 17 vibrant

and competitive

Metro-Manila-like Mega-cities in 17

regions


Exploring Possibilities

Hilario P. Martinez 3

Fund Allocation using a Social Equity-

based GRDP Rates


A fund allocation that is too biased for a centralized

governmental set-up

PROBLEM

17 Competitive Regions

OUTCOME

• Modify allo-cation scheme • Re-structure & empower RDCs • Differentiate roles of central & regional offices

ACTION • OP and DBM • NEDA • Congress • Other agencies in the Executive Branch

PLAYERS

• NCR garners ⅓ of annual GDP • NCR is the seat of government as well as the financial center • OP proposes and Congress passes the annual GAA

• Planning is largely centralized though with regional consultations • Regions get an average of 38% of the programmed annual appropriations • Automatic debt servicing

S E T T I N G

PRINCIPLES AND ELEMENTS

Would spending huge sums of government funds for Metro-Manila infrastructure projects solve its perennial problems? Would it be fair to the other regions? Would it be good for the whole country?


Social Equity in Fund Allocation


Differentiating the Roles and Responsibilities of Government Line Offices


Decentralization Decongestion Sustainable Development


Strengthening the Area-Specific Focus of the Regional Development Councils

Mandating the Service-Area bias of NGA’s* Regional

Offices

Programs should be in accordance to RDC

specification and service area needs-

based

Central Office-Regional Office fund sharing ratio should range from 15-85 to

30-70 ratio

Regional Offices should have more

autonomy in project development,

implementation and resource utilization


* NGA – National Government Agencies

Autonomy and Economic Development

S E L F - DIRECTED


Desired Hierarchical Input-Process-Output-Outcome in a Regional Dimension


THE GENERAL APPROPRIATION – THE NATIONAL BUDGET

A Tool for Country-wide Development, or

Just A Tool for Sustaining Centralized Governance


In 2009, there were 34 Offices sharing the National Funds

1. Congress of the Philippines

2. Office of the President

3. Office of the Vice-President

4. Dep't of Agrarian Reform

5. Dep't of Agriculture

6. Dep't of Budget & Management

7. Dep't of Education

8. State Universities & Colleges

9. Dep't of Energy

10. Dep't of Environment & Natural Resources

11. Dep't of Finance

12. Dep't of Foreign Affairs

13. Dep't of Health

14. Dep't of the Interior & Local Government

15. Dep't of Justice

16. Dep't of Labor & Employment

17. Dep't of National Defence

18. Dep't of Public Works & Highways

19. Dep't of Science & Technology

20. Dep't of Social Welfare & Development

21. Dep't of Tourism

22. Dep't of Trade & Industry

23. Dep't of Transportation & Communications

24. National Economic & Development Authority

25. Office of the Press Secretary

26. Other Executive Offices

27. Autonomous Region in Muslim Mindanao

28. Joint Legislative-Executive Councils

29. The Judiciary

30. Civil Service Commission

31. Commission on Audit

32. Commission on Elections

33. Office of the Ombudsman

34. Commission on Human Rights


Except for the OP, OVP, Congress and some other Executive Offices, all line departments and

constitutional bodies have regional representations implementing various programs and projects to

address local development concerns

2010 National Budget (000)


I bet this National Expenditure Program is even crazier inside

the layers

Dimensions of a General Appropriations


Fund Allocation of Departments by Region, 2000-2010

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Average

Nationwide 127,843,441 90,957,314 109,302,732 106,266,676 125,586,517 116,520,019 176,204,534 160,157,508 171,236,967 225,566,040 253,467,246 160,478,693

Central Off 48,327,317 66,755,006 69,129,229 69,046,763 75,706,590 68,239,614 39,799,033 87,058,385 101,074,741 104,679,305 117,714,772 81,383,159

NCR 26,389,489 35,120,956 30,229,031 27,430,792 25,181,482 23,212,156 25,199,001 27,513,645 29,421,940 32,115,061 33,040,888 28,149,333

CAR 5,926,247 9,166,879 6,779,862 7,494,097 5,692,705 6,198,145 6,205,861 6,336,044 8,607,556 12,879,287 8,961,924 7,683,942

R1 11,662,001 13,310,560 13,423,960 11,640,189 11,603,285 13,742,839 12,486,583 12,134,068 13,366,967 16,442,264 18,400,188 13,693,371

R2 6,725,014 9,236,624 8,323,150 7,553,263 7,568,490 7,847,099 7,985,709 8,741,904 9,743,062 12,519,166 12,875,780 9,239,736

R3 12,443,960 15,400,930 16,910,420 15,285,980 14,743,728 15,854,714 15,175,350 18,307,480 22,142,949 27,004,949 27,161,912 19,176,387

R4A* 17,529,710 22,358,693 22,792,070 19,964,546 19,431,207 16,324,940 12,885,048 15,560,308 19,770,896 23,052,239 24,698,189 19,386,605

R4B 9,732,826 6,109,170 8,629,880 10,037,073 14,399,151 11,344,535 10,042,106

R5 10,783,861 13,395,756 12,709,767 11,726,971 11,368,316 12,393,336 11,907,910 13,962,800 15,369,659 18,948,884 18,689,898 14,119,727

R6 13,805,617 17,689,054 18,062,837 16,181,960 15,054,609 17,406,096 16,325,089 19,430,462 19,533,347 24,573,474 24,525,922 19,010,422

R7 9,510,295 12,243,543 11,387,628 10,202,138 10,204,065 11,537,685 11,243,083 12,619,756 14,799,714 17,917,684 17,718,184 13,069,993

R8 10,359,629 12,220,863 11,457,137 9,928,122 9,475,044 11,786,264 10,125,544 11,023,284 13,353,929 16,210,811 16,984,947 12,260,565

R9 7,247,352 10,493,618 9,603,051 8,248,684 7,862,366 8,603,171 7,458,229 8,769,882 10,383,587 13,552,761 11,179,213 9,517,883

R10 6,595,899 8,660,787 7,984,335 6,952,199 6,832,421 8,783,189 8,312,351 10,596,599 12,501,161 17,095,440 15,958,011 10,557,301

R11 10,101,329 13,107,849 12,715,309 9,500,987 9,245,664 8,554,074 7,872,830 8,712,058 12,042,608 13,584,412 12,888,846 10,568,532

R12 6,857,358 8,348,549 8,681,320 8,224,765 7,452,622 8,395,597 7,930,568 9,300,902 10,230,166 11,934,662 12,320,574 9,385,686

ARMM 6,172,892 9,262,127 5,198,277 6,289,341 6,268,411 7,288,062 8,778,207 9,227,315 8,834,710 10,153,103 10,083,482 8,013,434

R13 5,019,644 7,194,519 7,418,350 5,519,802 5,578,260 9,122,303 7,660,840 9,488,999 8,782,145 11,726,409 11,205,642 8,500,306

Total 343,301,055 374,919,617 382,108,465 357,457,275 374,855,782 381,542,128 399,664,940 457,571,279 511,233,176 624,355,102 659,220,153 460,889,811

Source: Department of Budget and Management

* Fund Allocation for Regions IVA and IVB effective 2005

(in 000s)


₱343B

₱659B

And 16 PPAs allocated for varying Special Purpose Funds

1. Budgetary Support to Government Corporations

2. Agriculture and Fisheries Modernization Program

3. Allocations to Local Government Units

4. AFP Modernization Program

5. Calamity Fund

6. Contingent Fund

7. DepEd - School Building Program

8. E-Government Fund

9. General Fund Adjustments

10. International Commitments Fund

11. Miscellaneous Personnel Benefits Fund

12. National Unification Fund

13. Pension and Gratuity Fund

14. Priority Development Assistance Fund

15. Tax Expenditure Fund

16. Debt Service Fund-Interest Payment


Allocation of Special Funds, 2000-2010

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Average

Nationwide 285,431,855 34,453,215 35,599,660 26,039,125 25,953,949 26,280,736 66,428,915 60,427,034 98,063,384 113,418,222 224,080,693 90,561,526

Central Off 16,607,873 161,872,552 212,540,614 270,238,649 316,256,229 345,022,760 411,902,810 414,029,733 398,711,708 414,254,756 386,094,324 304,321,092

NCR 675,564 12,065,604 11,751,822 13,183,775 10,772,313 13,073,985 14,001,178 15,694,542 17,510,509 20,260,841 19,305,822 13,481,450

CAR 133,693 8,650,546 4,578,844 4,552,287 8,341,620 4,735,729 5,173,475 5,759,901 6,420,273 8,184,327 7,962,531 5,863,021

R1 50,849 5,052,788 7,906,085 8,403,513 4,535,160 8,939,082 9,782,852 10,906,346 12,244,606 14,433,985 14,894,261 8,831,775

R2 555,810 7,416,695 7,382,648 7,596,208 7,563,823 8,028,509 8,841,878 9,923,035 11,499,243 13,480,853 14,518,803 8,800,682

R3 178,183 13,686,901 14,030,650 13,091,046 13,711,465 14,600,991 15,991,917 17,842,705 20,201,817 24,352,761 25,911,271 15,781,792

R4A* 137,925 19,693,391 20,625,290 21,514,204 20,875,953 15,211,571 16,809,868 18,885,299 21,228,738 26,696,297 28,330,115 19,091,695

R4B 6,902,179 4,325,714 8,592,250 9,589,253 11,008,756 11,735,320 8,692,245

R5 142,265 8,807,066 8,945,139 9,478,896 9,451,408 10,041,001 10,992,418 12,248,543 13,747,501 16,071,471 16,773,481 10,609,017

R6 228,433 13,149,313 12,336,402 12,739,769 12,726,747 13,524,920 18,042,508 16,504,615 18,534,245 20,971,575 22,733,002 14,681,048

R7 82,979 11,625,277 11,522,898 10,581,465 10,540,721 11,201,055 12,242,310 13,662,937 15,346,333 18,080,960 18,811,922 12,154,442

R8 236,053 9,925,127 10,126,011 9,191,743 9,189,867 9,745,952 10,662,422 11,915,505 13,315,704 16,413,286 16,205,105 10,629,707

R9 391,527 7,051,866 7,067,073 7,062,284 6,185,981 6,560,003 7,500,731 8,014,113 9,004,227 10,381,141 11,089,803 7,300,795

R10 162,369 6,886,464 6,358,262 8,103,001 8,102,361 8,610,627 9,413,064 10,798,389 11,811,769 14,382,327 14,663,619 9,026,568

R11 2,526,120 10,061,953 9,781,941 7,175,772 7,103,840 7,560,203 8,272,114 9,244,996 10,379,037 12,186,282 12,851,926 8,831,289

R12 69,596 5,716,213 5,576,174 6,474,173 6,372,031 6,769,620 7,426,286 8,356,900 9,916,613 12,265,430 11,977,465 7,356,409

ARMM 5,638,870 5,886,600 5,823,941 6,738,671 7,208,078 7,723,924 8,851,067 10,111,550 13,375,523 13,931,697 8,528,992

R13 87,851 8,326,542 6,665,605 5,492,874 5,485,658 5,825,457 6,373,823 7,109,812 8,130,315 10,426,106 10,008,687 6,721,157

Sub-Total 307,698,945 350,080,383 398,681,718 446,742,725 489,907,797 529,842,458 651,908,207 668,767,721 715,766,824 790,644,898 881,879,847 535,004,168

Debt Service Fund-Interest Payment109,314,000 144,907,791 204,267,000 223,235,000 271,531,000 301,692,000 339,998,000 328,733,000 295,751,000 302,650,000 340,812,000 260,262,799

Net 198,384,945 205,172,592 194,414,718 223,507,725 218,376,797 228,150,458 311,910,207 340,034,721 420,015,824 487,994,898 541,067,847 282,796,289


* Fund Allocation for Regions IVA and IVB effective 2005

(in 000s)


₱307B

₱541B

Annual Funds (GAA) 2000-2010

0

200,000,000

400,000,000

600,000,000

800,000,000

1,000,000,000

1,200,000,000

1,400,000,000

1,600,000,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

in 0

00

s

Department Special Purpose

53% 52% 49% 44% 43% 42% 38% 41% 42% 44% 43%

57%

56% 58%

59% 62%

58% 57% 56% 51% 48% 47%


Fund Allocation of Departments and Special Funds, 2000-2010

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Average

Nationwide 413,275,296 125,410,529 144,902,392 132,305,801 151,540,466 142,800,755 242,633,449 220,584,542 269,300,351 338,984,262 477,547,939 241,753,253

Central Off 64,935,190 228,627,558 281,669,843 339,285,412 391,962,819 413,262,374 451,701,843 501,088,118 499,786,449 518,934,061 503,809,096 381,369,342

NCR 27,065,053 47,186,560 41,980,853 40,614,567 35,953,795 36,286,141 39,200,179 43,208,187 46,932,449 52,375,902 52,346,710 42,104,581

CAR 6,059,940 17,817,425 11,358,706 12,046,384 14,034,325 10,933,874 11,379,336 12,095,945 15,027,829 21,063,614 16,924,455 13,521,985

R1 11,712,850 18,363,348 21,330,045 20,043,702 16,138,445 22,681,921 22,269,435 23,040,414 25,611,573 30,876,249 33,294,449 22,305,676

R2 7,280,824 16,653,319 15,705,798 15,149,471 15,132,313 15,875,608 16,827,587 18,664,939 21,242,305 26,000,019 27,394,583 17,811,524

R3 12,622,143 29,087,831 30,941,070 28,377,026 28,455,193 30,455,705 31,167,267 36,150,185 42,344,766 51,357,710 53,073,183 34,002,916

R4A* 17,667,635 42,052,084 43,417,360 41,478,750 40,307,160 31,536,511 29,694,916 34,445,607 40,999,633 49,748,536 53,028,304 38,579,681

R4B - - - - - 16,635,005 10,434,884 17,222,130 19,626,325 25,407,907 23,079,855 10,218,737

R5 10,926,126 22,202,822 21,654,906 21,205,867 20,819,724 22,434,337 22,900,328 26,211,343 29,117,160 35,020,355 35,463,379 24,359,668

R6 14,034,050 30,838,367 30,399,239 28,921,729 27,781,356 30,931,016 34,367,597 26,211,343 38,067,592 45,545,049 47,258,924 32,214,206

R7 9,593,274 23,868,820 22,910,526 20,783,603 20,744,786 22,738,740 23,485,393 35,935,077 30,146,047 35,998,644 36,530,106 25,703,183

R8 10,595,682 22,145,990 21,583,148 19,119,865 18,664,911 21,532,216 20,787,966 26,282,693 26,669,633 32,624,097 33,190,052 23,017,841

R9 7,638,879 17,545,484 16,670,124 15,310,968 14,048,347 15,163,174 14,958,960 22,938,789 19,387,814 23,933,902 22,269,016 17,260,496

R10 6,758,268 15,547,251 14,342,597 15,055,200 14,934,782 17,393,816 17,725,415 16,783,995 24,312,930 31,477,767 30,621,630 18,632,150

R11 12,627,449 23,169,802 22,497,250 16,676,759 16,349,504 16,114,277 16,144,944 21,394,988 22,421,645 25,770,694 25,740,772 19,900,735

R12 6,926,954 14,064,762 14,257,494 14,698,938 13,824,653 15,165,217 15,356,854 17,957,054 20,146,779 24,200,092 24,298,039 16,445,167

ARMM 6,172,892 14,900,997 11,084,877 12,113,282 13,007,082 14,496,140 16,502,131 18,078,382 18,946,260 23,528,626 24,015,179 15,713,259

R13 5,107,495 15,521,061 14,083,955 11,012,676 11,063,918 14,947,760 14,034,663 16,598,811 16,912,460 22,152,515 21,214,329 14,786,331

Yearly Budget 651,000,000 725,004,010 780,790,183 804,200,000 864,763,579 911,384,586 1,051,573,147 1,126,339,000 1,227,000,000 1,415,000,000 1,541,100,000 1,008,923,137

Yearly Debt Service 109,314,000 144,907,791 204,267,000 223,235,000 271,531,000 301,692,000 339,998,000 328,733,000 295,751,000 302,650,000 340,812,000 260,262,799

Yearly Net 541,686,000 580,096,219 576,523,183 580,965,000 593,232,579 609,692,586 711,575,147 797,606,000 931,249,000 1,112,350,000 1,200,288,000 748,660,338


* Fund Allocation for Region IVA and IVB effective 2005

(in 000s)


If the annual government budget grew by this much in 10 years,

shouldn’t we expect a commensurate progress by that much too?

₱542B

₱1.2T

Special Purpose Fund less Debt Servicing

-

100,000,000

200,000,000

300,000,000

400,000,000

500,000,000

600,000,000

700,000,000

800,000,000

900,000,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

In 0

00

s

Net Debt Service Fund-Interest Payment

INC

REA

SE


A Fund Apportionment Wanting of Social Equity


An average

of 66% of

yearly Gov’t

Funds

residing in

NCR

METRO-MANILA, A NATIONAL CAPITAL REGION

A Benchmark?

An Unending Development Concern? or

A Key to a Strategic Solution?


Metro-Manila = National Capital Region

Seat of National Government

Center of Industry, Finance and Commerce

Headquarters to Multinational and Large Enterprises

Center of Education and Training

The only political region composed of urbanized cities

Earns 1/3 share of Gross Domestic Product w/ no Agriculture component

The most densely populated region

Most developed road, transportation and communication infrastructure

Highest density of motor vehicles

Highest number of micro-enterprises


Peculiarities:

An a

rea 6

36 s

quare

kilo

mete

rs

in a

country

of 3

00,0

00 s

quare

kilo

mete

rs

N.C.R. -

0.21% of the total

land area of

the Philippines

Metro-Manila = National Capital Region

Over population, consumerist orientation

Uncontrolled Water pollution

High incidence of Air pollution

Traffic congestion

High crime rate

Flooding

Garbage and Sewerage problem

Highest incidence of urban poor

Highest number of informal settlers


Issues and Concerns:

An a

rea 6

36 s

quare

kilo

mete

rs

in a

country

of 3

00,0

00 s

quare

kilo

mete

rs

N.C.R. -

0.21% of the total

land area of

the Philippines

Encourages

more migration

and perpetuates

centralized

governance

Big-time Spending for an Area that is only 0.21% of the Philippines

Build an integrated metro wide commuter

train system

Build better flood control and warning

systems

Build more elevated highways

Build more low-cost housing

projects

Rehabilitate waterways and

drainage systems

Install state-of-the-art traffic management

system

Install a metro-wide electronic

surveillance system

Establish more & better garbage /waste disposal

systems

Construction of more high-rise condominiums & apartments


Better health facilities and

services

Average % Share of Department Funds (2000-2010) by Region


Sharing of Special Purpose Fund (2000-2010 Average) by Region


So who says that Metro-Manila should be the only National Capital?


We need more funds to solve the perennial

problems of the National Capital!

They can help themselves! We need these monies to make decent lives for non-

Metro-Manilans!

Central

Offices/

NCR Regional

Offices

NATIONAL BUDGET

The Issue!


The CHALLENGE


GROSS REGIONAL DOMESTIC PRODUCT (GRDP)

Just a Sum-Total of Production or

A Key Factor in Infusing Social and Economic Equity?


GRDP 1999 – 2009*

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

PHILIPPINES 918,160,722 954,962,010 1,001,715,338 1,046,083,473 1,069,953,418 1,134,907,014 1,210,497,421 1,276,435,452 1,366,492,669 1,417,087,459 1,432,115,499

NCR 280,861,506 296,859,345 306,378,800 320,019,929 330,040,000 355,158,231 387,751,888 414,292,958 446,669,407 467,453,002 465,688,965

CAR 22,330,210 22,278,263 24,736,337 25,690,330 26,467,608 27,558,078 27,390,829 28,338,279 30,412,839 30,920,809 31,547,310

I 28,430,746 30,325,561 30,354,194 32,166,547 32,263,445 34,099,931 35,927,006 38,136,691 40,350,978 41,168,347 40,737,475

II 21,511,711 21,599,576 23,337,343 23,401,585 21,818,178 24,154,966 23,701,925 25,419,614 27,153,695 27,638,771 28,157,464

III 82,869,131 84,969,647 90,716,577 94,117,375 95,689,197 97,684,293 102,428,717 107,385,259 113,374,390 117,622,250 115,947,511

IV 141,082,969 144,996,192 152,833,569 162,840,800

IVA 138,598,064 143,134,032 150,502,498 157,406,451 165,060,085 168,196,749 165,572,379

IVB 32,123,732 33,606,170 33,740,765 34,526,488 37,648,674 38,790,154 39,105,919

V 25,934,587 25,917,877 28,409,406 29,975,399 30,845,530 32,794,782 34,453,986 35,358,229 38,059,765 39,634,904 42,877,886

VI 65,379,593 67,001,371 70,896,180 74,429,639 79,710,404 86,034,130 87,498,594 91,806,935 98,906,685 103,145,489 109,252,408

VII 63,100,694 65,031,138 71,670,870 74,895,353 75,114,120 80,536,980 86,112,111 90,379,775 98,080,372 101,292,120 102,052,820

VIII 21,798,175 22,955,695 23,198,715 24,216,876 24,312,693 25,993,729 26,663,453 27,979,058 28,954,519 29,939,775 30,482,024

IX 25,661,596 27,001,350 26,938,789 28,382,289 28,571,332 29,959,003 31,971,822 32,631,502 35,041,838 35,761,837 38,196,714

X 34,875,738 36,515,067 39,254,435 39,748,836 46,442,538 49,242,740 58,555,017 62,558,765 67,557,449 71,133,097 73,206,779

XI 56,831,636 60,274,875 62,741,572 64,094,744 48,319,185 51,671,348 55,425,093 57,844,052 61,675,857 63,928,106 67,366,644

XII 24,686,351 25,720,713 26,185,533 27,642,420 37,831,186 40,254,157 41,934,851 44,729,136 47,721,516 49,896,778 50,556,259

ARMM 9,207,369 9,179,349 9,461,849 9,915,275 9,351,189 9,852,212 10,865,931 11,311,801 11,903,558 12,098,904 12,409,350

XIII 13,598,712 14,335,991 14,601,169 14,546,076 12,455,017 13,172,232 15,572,937 16,330,459 17,921,043 18,466,367 18,957,590

Data are as of August 2010

Source: National Statistical Coordination Board

* In 1985 constant prices


Comparative GRDP*: NCR vs Major Island Groups

100,000,000

150,000,000

200,000,000

250,000,000

300,000,000

350,000,000

400,000,000

450,000,000

500,000,000

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

In 0

00

s

NCR Luzon Visayas Mindanao

* In Constant Prices 1985 34 Hilario P. Martinez

NCR is the only

region without an

agricultural

component in its

GRDP. Yet, it takes

the GRDPs of the

whole of Luzon to

compare to NCR’s

share, not even the

combined share of

Mindanao and

Visayas can.

What does NCR

produce?

The Mirror-Image of a National Government-biased Fund Allocation – a Centralized Economy


GRDP in % per Region 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

PHILIPPINES 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

NCR 30.59% 31.09% 30.59% 30.59% 30.85% 31.29% 32.03% 32.46% 32.69% 32.99% 32.52%

CAR 2.43% 2.33% 2.47% 2.46% 2.47% 2.43% 2.26% 2.22% 2.23% 2.18% 2.20%

I 3.10% 3.18% 3.03% 3.07% 3.02% 3.00% 2.97% 2.99% 2.95% 2.91% 2.84%

II 2.34% 2.26% 2.33% 2.24% 2.04% 2.13% 1.96% 1.99% 1.99% 1.95% 1.97%

III 9.03% 8.90% 9.06% 9.00% 8.94% 8.61% 8.46% 8.41% 8.30% 8.30% 8.10%

IV 15.37% 15.18% 15.26% 15.57%

IVA 12.95% 12.61% 12.43% 12.33% 12.08% 11.87% 11.56%

IVB 3.00% 2.96% 2.79% 2.70% 2.76% 2.74% 2.73%

V 2.82% 2.71% 2.84% 2.87% 2.88% 2.89% 2.85% 2.77% 2.79% 2.80% 2.99%

VI 7.12% 7.02% 7.08% 7.12% 7.45% 7.58% 7.23% 7.19% 7.24% 7.28% 7.63%

VII 6.87% 6.81% 7.15% 7.16% 7.02% 7.10% 7.11% 7.08% 7.18% 7.15% 7.13%

VIII 2.37% 2.40% 2.32% 2.32% 2.27% 2.29% 2.20% 2.19% 2.12% 2.11% 2.13%

IX 2.79% 2.83% 2.69% 2.71% 2.67% 2.64% 2.64% 2.56% 2.56% 2.52% 2.67%

X 3.80% 3.82% 3.92% 3.80% 4.34% 4.34% 4.84% 4.90% 4.94% 5.02% 5.11%

XI 6.19% 6.31% 6.26% 6.13% 4.52% 4.55% 4.58% 4.53% 4.51% 4.51% 4.70%

XII 2.69% 2.69% 2.61% 2.64% 3.54% 3.55% 3.46% 3.50% 3.49% 3.52% 3.53%

ARMM 1.00% 0.96% 0.94% 0.95% 0.87% 0.87% 0.90% 0.89% 0.87% 0.85% 0.87%

XIII 1.48% 1.50% 1.46% 1.39% 1.16% 1.16% 1.29% 1.28% 1.31% 1.30% 1.32%


Projecting the GRDP 2010 to be consistent to the Schedule of National Funds (GAA)

Region

GRDP Average

1999-2010 Rank

% Difference

from rank 1

NCR 31.72% 1 0.00%

CAR 2.32% 13 -92.68%

I 2.99% 9 -90.56%

II 2.09% 15 -93.41%

III 8.60% 3 -72.88%

IVA 12.20% 2 -61.54%

IVB 2.80% 11 -91.18%

V 2.84% 10 -91.05%

VI 7.28% 4 -77.04%

VII 7.08% 5 -77.68%

VIII 2.24% 14 -92.95%

IX 2.65% 12 -91.64%

X 4.51% 7 -85.80%

XI 5.08% 6 -83.99%

XII 3.25% 8 -89.76%

ARMM 0.90% 17 -97.16%

XIII 1.33% 16 -95.82%

Projected

GRDP 2010* % Share

PHILIPPINES 1,499,702,169 100.00%

NCR 494,123,550 32.95%

CAR 32,728,498 2.18%

I 43,114,574 2.87%

II 28,431,588 1.90%

III 121,923,179 8.13%

IVA 176,296,603 11.76%

IVB 40,680,620 2.71%

V 43,091,657 2.87%

VI 111,670,030 7.45%

VII 107,715,117 7.18%

VIII 31,417,598 2.09%

IX 38,224,858 2.55%

X 78,431,971 5.23%

XI 62,308,211 4.15%

XII 55,865,655 3.73%

ARMM 12,649,947 0.84%

XIII 18,721,356 1.25%


* Trending formula applied

The difference emphasizes the inequity of privileges

and opportunities accorded to constituents beyond

Metro-Manila, thus the exodus to the capital region

DEFINING THE URGENCY OF DEVELOPMENT AND ASSISTANCE

Which regions need to be prioritized?


Classification and Development Time Frame based on GRDP

GRDP Range Development Time Frame Classification

Equal or lesser than 3.50%

10 years Developing

Greater than 3.50% but lesser or equal to 7.00%

15 years Emerging

Greater than 7.00% 20 years Industrializing


NCR as the Benchmark

NCR’s Average GRDP 1999-2009 -

is almost equal to the aggregate

average of all Luzon regions, and

is almost twice the average GRDP of the

Visayas and Mindanao groups

is the only GRDP that is almost

one-third of the GDP


NCR 32%

Luzon 34%

Visayas 16%

Mindanao 18%

Classification of Regions According to GRDP* Range

<= than 3.50% >3.50% but <= 7.00% > 7.00%

CAR Region 10 NCR

Region 1 Region 11 Region 3

Region 2 Region 12 Region 4A

Region 4B Region 6

Region 5 Region 7

Region 8

Region 9

ARMM

Region 13

* Based on 1999-2010 GRDP Average 41 Hilario P. Martinez

Variance of Urgency in Development Timeframes*

0 2 4 6 8 10 12 14 16 18 20

NCR

CAR

I

II

III

IVA

IVB

V

VI

VII

VIII

IX

X

XI

XII

ARMM

XIII

Y E A R S

* Based on average GDRP 99-10 42 Hilario P. Martinez

FORMULATING THE GRDP-BASED FUND ALLOCATION SCHEME


The GRDP-based Fund Allocation Concept


Update GRDP table

Update Regional Allocation of Expenditure

Program (REAP) table

Project Next Year’s GRDP

and REAP tables

Calculate Required

Increment Factor

Update Development Timeframe for

all Regions

Apply Increment Factor to

Calculate Next Year’s REAP

Calculating the Increment

For NCR: 99-10 GRDP Average of NCR

Dev’t. Timeframe of NCR

based on 99-08 GRDP Ave.

= 31.72%

20 = 1.59% per year

GRDP Difference from NCR

Dev’t. Timeframe of Region

based on 99-10 GRDP Ave.

For Other

Regions:

Dev’t Timeframe:


Regions 99-10 Est'd Ave

NCR 20

CAR 10

I 10

II 10

III 20

IVA 20

IVB 10

V 10

VI 20

VII 20

VIII 10

IX 10

X 15

XI 15

XII 15

ARMM 10

XIII 10

Regions

GRDP

difference

from NCR's

Required

Annual

Increment

NCR 0.00% 1.59%

CAR 29.40% 2.94%

I 28.72% 2.87%

II 29.63% 2.96%

III 23.12% 1.16%

IVA 19.52% 0.98%

IVB 28.92% 2.89%

V 28.88% 2.89%

VI 24.44% 1.22%

VII 24.64% 1.23%

VIII 29.48% 2.95%

IX 29.07% 2.91%

X 27.21% 1.81%

XI 26.64% 1.78%

XII 28.47% 1.90%

ARMM 30.82% 3.08%

XIII 30.39% 3.04%

Computing for period: 2010

Regions

GRDP

difference

from NCR's

Required

Annual

Increment

GRDP rate

needed to catch

up

NCR 0.00% 1.59% 17.45%

CAR 29.40% 2.94% 5.26%

I 28.72% 2.87% 5.87%

II 29.63% 2.96% 5.05%

III 23.12% 1.16% 9.76%

IVA 19.52% 0.98% 13.18%

IVB 28.92% 2.89% 5.69%

V 28.88% 2.89% 5.73%

VI 24.44% 1.22% 8.50%

VII 24.64% 1.23% 8.31%

VIII 29.48% 2.95% 5.18%

IX 29.07% 2.91% 5.56%

X 27.21% 1.81% 6.32%

XI 26.64% 1.78% 6.86%

XII 28.47% 1.90% 5.14%

ARMM 30.82% 3.08% 3.98%

XIII 30.39% 3.04% 4.36%

122.20%

Determining Desired GRDP Rate – the increment needed for accelerated development

Required Increment +

99-10 Ave GRDP of NCR

2

= the GRDP Rate of NCR

taking into account the

development of other

regions

For NCR:

99-10 Ave GRDP +

Required Increment =

Desired Growth Rate

For Other Regions:


Finalizing the GRDP Rate as Basis for Fund Allocation using Ratio and Proportion

17.45%

122.20% =

A

100%

17.47%

122.20% = A

100% x

C

D

A

B

=

Where A = Leveled Target GRDP

B = 100%

C = Desired GDRP of a Region

D = Sum of desired GDRP of

all Regions

.


Regions

GRDP rate

needed to

catch up

Leveled Target

GRDPs

NCR 17.45% 14.2756%

CAR 5.26% 4.3059%

I 5.87% 4.8007%

II 5.05% 4.1353%

III 9.76% 7.9850%

IVA 13.18% 10.7815%

IVB 5.69% 4.6569%

V 5.73% 4.6871%

VI 8.50% 6.9580%

VII 8.31% 6.8005%

VIII 5.18% 4.2417%

IX 5.56% 4.5495%

X 6.32% 5.1713%

XI 6.86% 5.6099%

XII 5.14% 4.2099%

ARMM 3.98% 3.2594%

XIII 4.36% 3.5719%

122.20% 100.00%

The GRDP-based Fund Allocation Scheme as the Equalizing Factor

Regions

GRDP

difference

from NCR's

Required

Annual

Increment

GRDP rate

needed to

catch up

Leveled

Target

GRDPs

Difference

from 99-10

GRDP Ave

NCR 0.00% 1.59% 17.45% 14.2756% -17.44%

CAR 29.40% 2.94% 5.26% 4.3059% 1.98%

I 28.72% 2.87% 5.87% 4.8007% 1.81%

II 29.63% 2.96% 5.05% 4.1353% 2.04%

III 23.12% 1.16% 9.76% 7.9850% -0.62%

IVA 19.52% 0.98% 13.18% 10.7815% -1.42%

IVB 28.92% 2.89% 5.69% 4.6569% 1.86%

V 28.88% 2.89% 5.73% 4.6871% 1.85%

VI 24.44% 1.22% 8.50% 6.9580% -0.32%

VII 24.64% 1.23% 8.31% 6.8005% -0.28%

VIII 29.48% 2.95% 5.18% 4.2417% 2.01%

IX 29.07% 2.91% 5.56% 4.5495% 1.90%

X 27.21% 1.81% 6.32% 5.1713% 0.67%

XI 26.64% 1.78% 6.86% 5.6099% 0.53%

XII 28.47% 1.90% 5.14% 4.2099% 0.96%

ARMM 30.82% 3.08% 3.98% 3.2594% 2.36%

XIII 30.39% 3.04% 4.36% 3.5719% 2.25%

122.20% 100.00%48 Hilario P. Martinez

Applying the 20:80 Ratio to Emphasize the Differentiation of Central Offices and Regional Offices

Present Fund Allocation Ratio:

Nationwide :

Central Offices :

Regional Offices:

39.79% = 477,547,939

13.58% = 503,809,096

46.63% = 218,930,965

Proposed Fund Allocation Ratio:

Nationwide :

Central Offices :

Regional Offices:

20% = 240,057,600

80% = 960,230,400

% for re-distribution is dependent on national imperatives

Net of Nationwide


OPTIONS

Applying the 20:80 Ratio in each of the eight (8) GRDP-based Fund Allocation Schemes


Options for Applying the GRDP-based Increment Factor in Fund Allocation


Re-allocate Department Fund only, Redistribute/Frontload 100% of Nationwide Funds to CO-RO and applying the 20-80 ratio

Re-allocate Department Fund only, Redistribute/Frontload 50% of Nationwide Funds to CO-RO and applying the 20-80 ratio

Re-allocate Special Purpose Fund only, Redistribute/Frontload 100% of Nationwide Funds to CO-RO and applying the 20-80 ratio

Re-allocate Special Purpose Fund only, Redistribute/Frontload 50% of Nationwide Funds to CO-RO and applying the 20-80 ratio

Combine Option 1 and Option 4




2010 Distribution of Department and Special Purpose Funds per GAA


Targetted

GRDPs 2010 Dep't Fund

2010 Spec'l Purp.

Fund (Net of

Debt Service) 2010 Total Fund Percent to Total

Nationwide 0.00% 253,467,246 224,080,693 477,547,939 39.79%

Central Offices 0.00% 117,714,772 45,282,324 162,997,096 13.58%

NCR 14.28% 33,040,888 19,305,822 52,346,710 4.36%

CAR 4.31% 8,961,924 7,962,531 16,924,455 1.41%

R1 4.80% 18,400,188 14,894,261 33,294,449 2.77%

R2 4.14% 12,875,780 14,518,803 27,394,583 2.28%

R3 7.98% 27,161,912 25,911,271 53,073,183 4.42%

R4A 10.78% 24,698,189 28,330,115 53,028,304 4.42%

R4B 4.66% 11,344,535 11,735,320 23,079,855 1.92%

R5 4.69% 18,689,898 16,773,481 35,463,379 2.95%

R6 6.96% 24,525,922 22,733,002 47,258,924 3.94%

R7 6.80% 17,718,184 18,811,922 36,530,106 3.04%

R8 4.24% 16,984,947 16,205,105 33,190,052 2.77%

R9 4.55% 11,179,213 11,089,803 22,269,016 1.86%

R10 5.17% 15,958,011 14,663,619 30,621,630 2.55%

R11 5.61% 12,888,846 12,851,926 25,740,772 2.14%

R12 4.21% 12,320,574 11,977,465 24,298,039 2.02%

ARMM 3.26% 10,083,482 13,931,697 24,015,179 2.00%

R13 3.57% 11,205,642 10,008,687 21,214,329 1.77%

Total 100.00% 659,220,153 541,067,847 1,200,288,000 100.00%

Government

Funds based

in Metro-

Manila = 58%

Option 1: Re-allocate Department Fund only, Redistribute/Frontload 100% of Nationwide Funds to CO-RO and applying the 20-80 ratio


Targetted


Adjusted 2010

Dep't Fund

Special Purpose

Fund Total

Slide 47

Inc/Dec

Nationwide 0.00% 253,467,246 - 224,080,693 224,080,693 -53%

Central Offices 0.00% 117,714,772 131,844,031 45,282,324 177,126,355 9%

NCR 14.28% 33,040,888 75,285,857 19,305,822 94,591,679 81%

CAR 4.31% 8,961,924 22,708,235 7,962,531 30,670,766 81%

R1 4.80% 18,400,188 25,317,844 14,894,261 40,212,105 21%

R2 4.14% 12,875,780 21,808,505 14,518,803 36,327,308 33%

R3 7.98% 27,161,912 42,110,757 25,911,271 68,022,028 28%

R4A 10.78% 24,698,189 56,859,245 28,330,115 85,189,360 61%

R4B 4.66% 11,344,535 24,559,383 11,735,320 36,294,703 57%

R5 4.69% 18,689,898 24,718,457 16,773,481 41,491,938 17%

R6 6.96% 24,525,922 36,694,809 22,733,002 59,427,811 26%

R7 6.80% 17,718,184 35,864,381 18,811,922 54,676,303 50%

R8 4.24% 16,984,947 22,369,491 16,205,105 38,574,596 16%

R9 4.55% 11,179,213 23,992,787 11,089,803 35,082,590 58%

R10 5.17% 15,958,011 27,272,283 14,663,619 41,935,902 37%

R11 5.61% 12,888,846 29,585,292 12,851,926 42,437,218 65%

R12 4.21% 12,320,574 22,202,131 11,977,465 34,179,596 41%

ARMM 3.26% 10,083,482 17,189,531 13,931,697 31,121,228 30%

R13 3.57% 11,205,642 18,837,133 10,008,687 28,845,820 36%

Total 100.00% 659,220,153 659,220,153 541,067,847 1,200,288,000 0%

10

0%

RE

DIS

TR

IBU

TE

National Government delegating 100% of Nationwide Programs of Department Funds

to the Regions but retaining 100% control of Special Purpose Funds



2010 Total Fund

per GAA

Percent

to Total

Nationwide 477,547,939.00 40%

Central Offices 162,997,096.00 14%

NCR 52,346,710.00 4%

CAR 16,924,455.00 1%

R1 33,294,449.00 3%

R2 27,394,583.00 2%

R3 53,073,183.00 4%

R4A 53,028,304.00 4%

R4B 23,079,855.00 2%

R5 35,463,379.00 3%

R6 47,258,924.00 4%

R7 36,530,106.00 3%

R8 33,190,052.00 3%

R9 22,269,016.00 2%

R10 30,621,630.00 3%

R11 25,740,772.00 2%

R12 24,298,039.00 2%

ARMM 24,015,179.00 2%

R13 21,214,329.00 2%

Total 1,200,288,000.00 100%

Nationwide 19%

Central Offices 15%

NCR 8%

CAR 3% R1

3% R2 3%

R3 6%

R4A 7%

R4B 3%

R5 3%

R6 5%

R7 5%

R8 3%

R9 3%

R10 3%

R11 4%

R12 3%

ARMM 3%

R13 2%

Government Funds based in NCR = 42%

58%



Targetted


Adjusted 2010

Dep't Fund

Special Purpose

Fund Total

Slide 47

Inc/Dec

Nationwide 0.00% 253,467,246 126,733,623 224,080,693 350,814,316 -26.54%

Central Offices 0.00% 117,714,772 106,497,306 45,282,324 151,779,630 -6.88%

NCR 14.28% 33,040,888 60,812,316 19,305,822 80,118,138 53.05%

CAR 4.31% 8,961,924 18,342,627 7,962,531 26,305,158 55.43%

R1 4.80% 18,400,188 20,450,544 14,894,261 35,344,805 6.16%

R2 4.14% 12,875,780 17,615,868 14,518,803 32,134,671 17.30%

R3 7.98% 27,161,912 34,015,057 25,911,271 59,926,328 12.91%

R4A 10.78% 24,698,189 45,928,180 28,330,115 74,258,295 40.04%

R4B 4.66% 11,344,535 19,837,896 11,735,320 31,573,216 36.80%

R5 4.69% 18,689,898 19,966,388 16,773,481 36,739,869 3.60%

R6 6.96% 24,525,922 29,640,313 22,733,002 52,373,315 10.82%

R7 6.80% 17,718,184 28,969,533 18,811,922 47,781,455 30.80%

R8 4.24% 16,984,947 18,069,006 16,205,105 34,274,111 3.27%

R9 4.55% 11,179,213 19,380,227 11,089,803 30,470,030 36.83%

R10 5.17% 15,958,011 22,029,247 14,663,619 36,692,866 19.83%

R11 5.61% 12,888,846 23,897,584 12,851,926 36,749,510 42.77%

R12 4.21% 12,320,574 17,933,821 11,977,465 29,911,286 23.10%

ARMM 3.26% 10,083,482 13,884,882 13,931,697 27,816,579 15.83%

R13 3.57% 11,205,642 15,215,736 10,008,687 25,224,423 18.90%

Total 100.00% 659,220,153 659,220,153 541,067,847 1,200,288,000 0.00%

50

% R

ED

IST

RIB

UT

E

National Government delegating 50% of Nationwide Programs of Department Funds

to the Regions but retaining 100% control of Special Purpose Funds



Nationwide 29%

Central Offices 13%

NCR 7%

CAR 2%

R1 3%

R2 3%

R3 5%

R4A 6%

R4B 3%

R5 3%

R6 4%

R7 4%

R8 3%

R9 3%

R10 3%

R11 3%

R12 2%

ARMM 2%

R13 2%

Government Funds based in Metro-Manila = 49%

2010 Total Fund

per GAA

Percent

to Total

Nationwide 477,547,939.00 40%


NCR 52,346,710.00 4%

CAR 16,924,455.00 1%

R1 33,294,449.00 3%

R2 27,394,583.00 2%

R3 53,073,183.00 4%

R4A 53,028,304.00 4%

R4B 23,079,855.00 2%

R5 35,463,379.00 3%

R6 47,258,924.00 4%

R7 36,530,106.00 3%

R8 33,190,052.00 3%

R9 22,269,016.00 2%

R10 30,621,630.00 3%

R11 25,740,772.00 2%

R12 24,298,039.00 2%

ARMM 24,015,179.00 2%

R13 21,214,329.00 2%

Total 1,200,288,000.00 100%

58%

Option 3: Re-allocate Special Purpose Fund only, Redistribute/ Frontload 100% of Nationwide Funds to CO-RO and applying the 20-80 ratio


Targetted

GRDPs

2010 Spec'l

Purpose Fund

(Net of Debt

Servicing)

Adjusted 2010

Spec'l Purpose

Fund 2010 Dep't Fund Total

Slide 47

Inc/Dec

Nationwide 0.00% 224,080,693 - 253,467,246 253,467,246 -46.92%

Central Offices 0.00% 45,282,324 108,213,569 117,714,772 225,928,341 38.61%

NCR 14.28% 19,305,822 61,792,341 33,040,888 94,833,229 81.16%

CAR 4.31% 7,962,531 18,638,228 8,961,924 27,600,152 63.08%

R1 4.80% 14,894,261 20,780,116 18,400,188 39,180,304 17.68%

R2 4.14% 14,518,803 17,899,758 12,875,780 30,775,538 12.34%

R3 7.98% 25,911,271 34,563,228 27,161,912 61,725,140 16.30%

R4A 10.78% 28,330,115 46,668,338 24,698,189 71,366,527 34.58%

R4B 4.66% 11,735,320 20,157,595 11,344,535 31,502,130 36.49%

R5 4.69% 16,773,481 20,288,157 18,689,898 38,978,055 9.91%

R6 6.96% 22,733,002 30,117,983 24,525,922 54,643,905 15.63%

R7 6.80% 18,811,922 29,436,393 17,718,184 47,154,577 29.08%

R8 4.24% 16,205,105 18,360,198 16,984,947 35,345,145 6.49%

R9 4.55% 11,089,803 19,692,550 11,179,213 30,871,763 38.63%

R10 5.17% 14,663,619 22,384,260 15,958,011 38,342,271 25.21%

R11 5.61% 12,851,926 24,282,707 12,888,846 37,171,553 44.41%

R12 4.21% 11,977,465 18,222,834 12,320,574 30,543,408 25.70%

ARMM 3.26% 13,931,697 14,108,644 10,083,482 24,192,126 0.74%

R13 3.57% 10,008,687 15,460,946 11,205,642 26,666,588 25.70%

Total 100.00% 541,067,847 541,067,847 659,220,153 1,200,288,000 0.00%

10

0%

RE

DIS

TR

IBU

TE

National Government retaining 100% of Nationwide Programs of Department Funds

but delegating 100% of Special Purpose Funds to the Regions

Option 3: Re-allocate Special Purpose Fund only, Redistribute/Frontload 100% of Nationwide Funds to CO-RO and applying the 20-80 ratio


2010 Total Fund

per GAA

Percent

to Total

Nationwide 477,547,939.00 40%


NCR 52,346,710.00 4%

CAR 16,924,455.00 1%

R1 33,294,449.00 3%

R2 27,394,583.00 2%

R3 53,073,183.00 4%

R4A 53,028,304.00 4%

R4B 23,079,855.00 2%

R5 35,463,379.00 3%

R6 47,258,924.00 4%

R7 36,530,106.00 3%

R8 33,190,052.00 3%

R9 22,269,016.00 2%

R10 30,621,630.00 3%

R11 25,740,772.00 2%

R12 24,298,039.00 2%

ARMM 24,015,179.00 2%

R13 21,214,329.00 2%

Total 1,200,288,000.00 100%

Nationwide 21%

Central Offices 19%

NCR 8%

CAR 2%

R1 3%

R2 3%

R3 5%

R4A 6%

R4B 3%

R5 3%

R6 5%

R7 4%

R8 3%

R9 3%

R10 3%

R11 3%

R12 3%

ARMM 2%

R13 2%


58%

Option 4: Re-allocate Special Purpose Fund only, Redistribute/ Frontload 50% of Nationwide Funds to CO-RO and applying the 20-80 ratio


Targetted

GRDPs

2010 Spec'l

Purpose Fund

(Net of Debt

Servicing)

Adjusted 2010

Spec'l Purpose

Fund

2010 Dep't

Fund Total

Slide 47

Inc/Dec

Nationwide 0.00% 224,080,693 112,040,347 253,467,246 365,507,593 -23.46%

Central Offices 0.00% 45,282,324 76,749,035 117,714,772 194,463,807 19.31%

NCR 14.28% 19,305,822 50,289,698 33,040,888 83,330,586 59.19%

CAR 4.31% 7,962,531 15,168,722 8,961,924 24,130,646 42.58%

R1 4.80% 14,894,261 16,911,898 18,400,188 35,312,086 6.06%

R2 4.14% 14,518,803 14,567,718 12,875,780 27,443,498 0.18%

R3 7.98% 25,911,271 28,129,284 27,161,912 55,291,196 4.18%

R4A 10.78% 28,330,115 37,981,028 24,698,189 62,679,217 18.20%

R4B 4.66% 11,735,320 16,405,259 11,344,535 27,749,794 20.23%

R5 4.69% 16,773,481 16,511,517 18,689,898 35,201,415 -0.74%

R6 6.96% 22,733,002 24,511,521 24,525,922 49,037,443 3.76%

R7 6.80% 18,811,922 23,956,809 17,718,184 41,674,993 14.08%

R8 4.24% 16,205,105 14,942,448 16,984,947 31,927,395 -3.80%

R9 4.55% 11,089,803 16,026,782 11,179,213 27,205,995 22.17%

R10 5.17% 14,663,619 18,217,431 15,958,011 34,175,442 11.61%

R11 5.61% 12,851,926 19,762,482 12,888,846 32,651,328 26.85%

R12 4.21% 11,977,465 14,830,654 12,320,574 27,151,228 11.74%

ARMM 3.26% 13,931,697 11,482,320 10,083,482 21,565,802 -10.20%

R13 3.57% 10,008,687 12,582,891 11,205,642 23,788,533 12.13%

Total 100.00% 541,067,847 541,067,847 659,220,153 1,200,288,000 0.00%

50

% R

ED

IST

RIB

UT

E

National Government retaining 100% of Nationwide Programs of Department

Funds but delegating 50% of Special Purpose Funds to the Regions

Option 4: Re-allocate Special Purpose Fund only, Redistribute/Frontload 50% of Nationwide Funds to CO-RO and applying the 20-80 ratio


2010 Total Fund

per GAA

Percent

to Total

Nationwide 477,547,939.00 40%


NCR 52,346,710.00 4%

CAR 16,924,455.00 1%

R1 33,294,449.00 3%

R2 27,394,583.00 2%

R3 53,073,183.00 4%

R4A 53,028,304.00 4%

R4B 23,079,855.00 2%

R5 35,463,379.00 3%

R6 47,258,924.00 4%

R7 36,530,106.00 3%

R8 33,190,052.00 3%

R9 22,269,016.00 2%

R10 30,621,630.00 3%

R11 25,740,772.00 2%

R12 24,298,039.00 2%

ARMM 24,015,179.00 2%

R13 21,214,329.00 2%

Total 1,200,288,000.00 100%

Nationwide 30%

Central Offices 16%

NCR 7%

CAR 2%

R1 3%

R2 2%

R3 5%

R4A 5% R4B

2%

R5 3%

R6 4%

R7 3%

R8 3%

R9 2%

R10 3%

R11 3%

R12 2%

ARMM 2%

R13 2%


58%

Option 5: Combine Option 1 and Option 4 (100% Nationwide Fund and 50% Special Purpose Fund Re-allocated)


Targetted

GRDPs

2010 Department

Fund

Adjusted 2010

Dep't Fund

2010 Spec'l

Purpose Fund

(Net of Debt

Servicing)

Adjusted 2010

Spec'l Purpose

Fund (Net of

Debt Service)

Total Adjusted

2010 Funds

Slide 47

Inc/Dec

Nationwide 0.00% 253,467,246 - 224,080,693 112,040,347 112,040,347 -76.54%

Central Offices 0.00% 117,714,772 131,844,031 45,282,324 76,749,035 208,593,066 27.97%

NCR 14.28% 33,040,888 75,285,857 19,305,822 50,289,698 125,575,555 139.89%

CAR 4.31% 8,961,924 22,708,235 7,962,531 15,168,722 37,876,957 123.80%

R1 4.80% 18,400,188 25,317,844 14,894,261 16,911,898 42,229,742 26.84%

R2 4.14% 12,875,780 21,808,505 14,518,803 14,567,718 36,376,224 32.79%

R3 7.98% 27,161,912 42,110,757 25,911,271 28,129,284 70,240,042 32.35%

R4A 10.78% 24,698,189 56,859,245 28,330,115 37,981,028 94,840,273 78.85%

R4B 4.66% 11,344,535 24,559,383 11,735,320 16,405,259 40,964,642 77.49%

R5 4.69% 18,689,898 24,718,457 16,773,481 16,511,517 41,229,974 16.26%

R6 6.96% 24,525,922 36,694,809 22,733,002 24,511,521 61,206,331 29.51%

R7 6.80% 17,718,184 35,864,381 18,811,922 23,956,809 59,821,190 63.76%

R8 4.24% 16,984,947 22,369,491 16,205,105 14,942,448 37,311,939 12.42%

R9 4.55% 11,179,213 23,992,787 11,089,803 16,026,782 40,019,570 79.71%

R10 5.17% 15,958,011 27,272,283 14,663,619 18,217,431 45,489,714 48.55%

R11 5.61% 12,888,846 29,585,292 12,851,926 19,762,482 49,347,774 91.71%

R12 4.21% 12,320,574 22,202,131 11,977,465 14,830,654 37,032,785 52.41%

ARMM 3.26% 10,083,482 17,189,531 13,931,697 11,482,320 28,671,852 19.39%

R13 3.57% 11,205,642 18,837,133 10,008,687 12,582,891 31,420,025 48.11%

Total 100.00% 659,220,153 659,220,153 541,067,847 541,067,847 1,200,288,000 0.00%

50

% R

ED

IST

RIB

UT

E

10

0%

RE

DIS

TR

IBU

TE

National Government delegating 100% of Nationwide Programs of Department Funds and

50% of Special Purpose Funds to the Regions, National Government retains 50% of latter



Nationwide 9%

Central Offices 17%

NCR 10%

CAR 3% R1

4% R2 3%

R3 6%

R4A 8%

R4B 3%

R5 3%

R6 5%

R7 5%

R8 3%

R9 3%

R10 4%

R11 4%

R12 3%

ARMM 2%

R13 3%


2010 Total Fund

per GAA

Percent

to Total

Nationwide 477,547,939.00 40%


NCR 52,346,710.00 4%

CAR 16,924,455.00 1%

R1 33,294,449.00 3%

R2 27,394,583.00 2%

R3 53,073,183.00 4%

R4A 53,028,304.00 4%

R4B 23,079,855.00 2%

R5 35,463,379.00 3%

R6 47,258,924.00 4%

R7 36,530,106.00 3%

R8 33,190,052.00 3%

R9 22,269,016.00 2%

R10 30,621,630.00 3%

R11 25,740,772.00 2%

R12 24,298,039.00 2%

ARMM 24,015,179.00 2%

R13 21,214,329.00 2%

Total 1,200,288,000.00 100%

58%



Targetted


Adjusted 2010

Dep't Fund

2010 Spec'l

Purpose Fund

(Net of Debt

Servicing)

Adjusted 2010

Spec'l Purpose

Fund (Net of

Debt Service)

Total Adjusted

2010 Funds

Slide 47

Inc/(Dec)

Nationwide 0.00% 253,467,246 126,733,623 224,080,693 112,040,347 238,773,970 -50.00%

Central Offices 0.00% 117,714,772 106,497,306 45,282,324 76,749,035 183,246,341 12.42%

NCR 14.28% 33,040,888 60,812,316 19,305,822 50,289,698 111,102,015 112.24%

CAR 4.31% 8,961,924 18,342,627 7,962,531 15,168,722 33,511,349 98.01%

R1 4.80% 18,400,188 20,450,544 14,894,261 16,911,898 37,362,442 12.22%

R2 4.14% 12,875,780 17,615,868 14,518,803 14,567,718 32,183,587 17.48%

R3 7.98% 27,161,912 34,015,057 25,911,271 28,129,284 62,144,341 17.09%

R4A 10.78% 24,698,189 45,928,180 28,330,115 37,981,028 83,909,209 58.23%

R4B 4.66% 11,344,535 19,837,896 11,735,320 16,405,259 36,243,155 57.03%

R5 4.69% 18,689,898 19,966,388 16,773,481 16,511,517 36,477,905 2.86%

R6 6.96% 24,525,922 29,640,313 22,733,002 24,511,521 54,151,834 14.59%

R7 6.80% 17,718,184 28,969,533 18,811,922 23,956,809 52,926,342 44.88%

R8 4.24% 16,984,947 18,069,006 16,205,105 14,942,448 33,011,453 -0.54%

R9 4.55% 11,179,213 19,380,227 11,089,803 16,026,782 35,407,009 59.00%

R10 5.17% 15,958,011 22,029,247 14,663,619 18,217,431 40,246,678 31.43%

R11 5.61% 12,888,846 23,897,584 12,851,926 19,762,482 43,660,066 69.61%

R12 4.21% 12,320,574 17,933,821 11,977,465 14,830,654 32,764,475 34.84%

ARMM 3.26% 10,083,482 13,884,882 13,931,697 11,482,320 25,367,202 5.63%

R13 3.57% 11,205,642 15,215,736 10,008,687 12,582,891 27,798,627 31.04%

Total 100.00% 659,220,153 659,220,153 541,067,847 541,067,847 1,200,288,000 0.00%

50

% R

ED

IST

RIB

UT

E

50

% R

ED

IST

RIB

UT

E


50% of Special Purpose Funds to the Regions, but retaining 50% of both


Nationwide 20%

Central Offices 15%

NCR 9%

CAR 3%

R1 3%

R2 3%

R3 5%

R4A 7%

R4B 3%

R5 3%

R6 5%

R7 4%

R8 3%

R9 3%

R10 3%

R11 4%

R12 3%

ARMM 2%

R13 2%


2010 Total Fund

per GAA

Percent

to Total

Nationwide 477,547,939.00 40%


NCR 52,346,710.00 4%

CAR 16,924,455.00 1%

R1 33,294,449.00 3%

R2 27,394,583.00 2%

R3 53,073,183.00 4%

R4A 53,028,304.00 4%

R4B 23,079,855.00 2%

R5 35,463,379.00 3%

R6 47,258,924.00 4%

R7 36,530,106.00 3%

R8 33,190,052.00 3%

R9 22,269,016.00 2%

R10 30,621,630.00 3%

R11 25,740,772.00 2%

R12 24,298,039.00 2%

ARMM 24,015,179.00 2%

R13 21,214,329.00 2%

Total 1,200,288,000.00 100%

58%




Targetted


Adjusted 2010

Dep't Fund

2010 Spec'l

Purpose Fund

(Net of Debt

Servicing)

Adjusted 2010

Spec'l Purpose

Fund (Net of

Debt Service)

Adjusted 2010

Total

Slide 47

Inc/(Dec)

Nationwide 0.00% 253,467,246 - 224,080,693 - - -100.00%

Central Offices 0.00% 117,714,772 131,844,031 45,282,324 108,213,569 240,057,600 47.28%

NCR 14.28% 33,040,888 75,285,857 19,305,822 61,792,341 137,078,197 161.87%

CAR 4.31% 8,961,924 22,708,235 7,962,531 18,638,228 41,346,463 144.30%

R1 4.80% 18,400,188 25,317,844 14,894,261 20,780,116 46,097,960 38.46%

R2 4.14% 12,875,780 21,808,505 14,518,803 17,899,758 39,708,263 44.95%

R3 7.98% 27,161,912 42,110,757 25,911,271 34,563,228 76,673,986 44.47%

R4A 10.78% 24,698,189 56,859,245 28,330,115 46,668,338 103,527,583 95.23%

R4B 4.66% 11,344,535 24,559,383 11,735,320 20,157,595 44,716,978 93.75%

R5 4.69% 18,689,898 24,718,457 16,773,481 20,288,157 45,006,614 26.91%

R6 6.96% 24,525,922 36,694,809 22,733,002 30,117,983 66,812,792 41.38%

R7 6.80% 17,718,184 35,864,381 18,811,922 29,436,393 65,300,774 78.76%

R8 4.24% 16,984,947 22,369,491 16,205,105 18,360,198 40,729,689 22.72%

R9 4.55% 11,179,213 23,992,787 11,089,803 19,692,550 43,685,337 96.17%

R10 5.17% 15,958,011 27,272,283 14,663,619 22,384,260 49,656,543 62.16%

R11 5.61% 12,888,846 29,585,292 12,851,926 24,282,707 53,867,999 109.27%

R12 4.21% 12,320,574 22,202,131 11,977,465 18,222,834 40,424,966 66.37%

ARMM 3.26% 10,083,482 17,189,531 13,931,697 14,108,644 31,298,175 30.33%

R13 3.57% 11,205,642 18,837,133 10,008,687 15,460,946 34,298,079 61.67%

Total 100.00% 659,220,153 659,220,153 541,067,847 541,067,847 1,200,288,000 0.00%

10

0%

RE

DIS

TR

IBU

TE

10

0%

RE

DIS

TR

IBU

TE


Special Purpose Funds to the Regions, National Government retains retaining none


Nationwide 0%

Central Offices 20%

NCR 11%

CAR 3%

R1 4% R2

3%

R3 6%

R4A 9%

R4B 4%

R5 4%

R6 6%

R7 5%

R8 3%

R9 4%

R10 4%

R11 4%

R12 3%

ARMM 3%

R13 3%


2010 Total Fund

per GAA

Percent

to Total

Nationwide 477,547,939.00 40%


NCR 52,346,710.00 4%

CAR 16,924,455.00 1%

R1 33,294,449.00 3%

R2 27,394,583.00 2%

R3 53,073,183.00 4%

R4A 53,028,304.00 4%

R4B 23,079,855.00 2%

R5 35,463,379.00 3%

R6 47,258,924.00 4%

R7 36,530,106.00 3%

R8 33,190,052.00 3%

R9 22,269,016.00 2%

R10 30,621,630.00 3%

R11 25,740,772.00 2%

R12 24,298,039.00 2%

ARMM 24,015,179.00 2%

R13 21,214,329.00 2%

Total 1,200,288,000.00 100%

58%




Targetted


Adjusted 2010

Dep't Fund

2010 Spec'l

Purpose Fund

(Net of Debt

Servicing)

Adjusted 2010

Spec'l Purpose

Fund (Net of

Debt Service)

Adjusted 2010

Total

Slide 47

Inc/(Dec)

Nationwide 0.00% 253,467,246 126,733,623 224,080,693 - 126,733,623 -73.46%

Central Offices 0.00% 117,714,772 106,497,306 45,282,324 108,213,569 214,710,875 31.73%

NCR 14.28% 33,040,888 60,812,316 19,305,822 61,792,341 122,604,657 134.22%

CAR 4.31% 8,961,924 18,342,627 7,962,531 18,638,228 36,980,855 118.51%

R1 4.80% 18,400,188 20,450,544 14,894,261 20,780,116 41,230,660 23.84%

R2 4.14% 12,875,780 17,615,868 14,518,803 17,899,758 35,515,626 29.64%

R3 7.98% 27,161,912 34,015,057 25,911,271 34,563,228 68,578,285 29.21%

R4A 10.78% 24,698,189 45,928,180 28,330,115 46,668,338 92,596,519 74.62%

R4B 4.66% 11,344,535 19,837,896 11,735,320 20,157,595 39,995,491 73.29%

R5 4.69% 18,689,898 19,966,388 16,773,481 20,288,157 40,254,545 13.51%

R6 6.96% 24,525,922 29,640,313 22,733,002 30,117,983 59,758,296 26.45%

R7 6.80% 17,718,184 28,969,533 18,811,922 29,436,393 58,405,926 59.88%

R8 4.24% 16,984,947 18,069,006 16,205,105 18,360,198 36,429,204 9.76%

R9 4.55% 11,179,213 19,380,227 11,089,803 19,692,550 39,072,777 75.46%

R10 5.17% 15,958,011 22,029,247 14,663,619 22,384,260 44,413,507 45.04%

R11 5.61% 12,888,846 23,897,584 12,851,926 24,282,707 48,180,292 87.18%

R12 4.21% 12,320,574 17,933,821 11,977,465 18,222,834 36,156,655 48.80%

ARMM 3.26% 10,083,482 13,884,882 13,931,697 14,108,644 27,993,526 16.57%

R13 3.57% 11,205,642 15,215,736 10,008,687 15,460,946 30,676,682 44.60%

Total 100.00% 659,220,153 659,220,153 541,067,847 541,067,847 1,200,288,000 0.00%

10

0%

RE

DIS

TR

IBU

TE

50%

RE

DIS

TR

IBU

TE


100% of Special Purpose Funds to the Regions


Nationwide 11%

Central Offices 18%

NCR 10%

CAR 3% R1

3% R2 3%

R3 6%

R4A 8%

R4B 3%

R5 3%

R6 5%

R7 5%

R8 3%

R9 3%

R10 4%

R11 4%

R12 3%

ARMM 2%

R13 3%


2010 Total Fund

per GAA

Percent

to Total

Nationwide 477,547,939.00 40%


NCR 52,346,710.00 4%

CAR 16,924,455.00 1%

R1 33,294,449.00 3%

R2 27,394,583.00 2%

R3 53,073,183.00 4%

R4A 53,028,304.00 4%

R4B 23,079,855.00 2%

R5 35,463,379.00 3%

R6 47,258,924.00 4%

R7 36,530,106.00 3%

R8 33,190,052.00 3%

R9 22,269,016.00 2%

R10 30,621,630.00 3%

R11 25,740,772.00 2%

R12 24,298,039.00 2%

ARMM 24,015,179.00 2%

R13 21,214,329.00 2%

Total 1,200,288,000.00 100%

58%


Comparative Changes Applied to 2010 Fund Allocation (Options 1 to 8)


Per 2010

GAA Option 1 Option 2 Option 3 Option 4 Option 5 Option 6 Option 7 Option 8 AverageNationwide 477,547,939 224,080,693 350,814,316 253,467,246 365,507,593 112,040,347 238,773,970 - 126,733,623 208,927,223

Central Offices 162,997,096 177,126,355 151,779,630 225,928,341 194,463,807 208,593,066 183,246,341 240,057,600 214,710,875 199,488,252

NCR 52,346,710 94,591,679 80,118,138 94,833,229 83,330,586 125,575,555 111,102,015 137,078,197 122,604,657 106,154,257

CAR 16,924,455 30,670,766 26,305,158 27,600,152 24,130,646 37,876,957 33,511,349 41,346,463 36,980,855 32,302,793

R1 33,294,449 40,212,105 35,344,805 39,180,304 35,312,086 42,229,742 37,362,442 46,097,960 41,230,660 39,621,263

R2 27,394,583 36,327,308 32,134,671 30,775,538 27,443,498 36,376,224 32,183,587 39,708,263 35,515,626 33,808,089

R3 53,073,183 68,022,028 59,926,328 61,725,140 55,291,196 70,240,042 62,144,341 76,673,986 68,578,285 65,325,168

R4A 53,028,304 85,189,360 74,258,295 71,366,527 62,679,217 94,840,273 83,909,209 103,527,583 92,596,519 83,545,873

R4B 23,079,855 36,294,703 31,573,216 31,502,130 27,749,794 40,964,642 36,243,155 44,716,978 39,995,491 36,130,014

R5 35,463,379 41,491,938 36,739,869 38,978,055 35,201,415 41,229,974 36,477,905 45,006,614 40,254,545 39,422,540

R6 47,258,924 59,427,811 52,373,315 54,643,905 49,037,443 61,206,331 54,151,834 66,812,792 59,758,296 57,176,466

R7 36,530,106 54,676,303 47,781,455 47,154,577 41,674,993 59,821,190 52,926,342 65,300,774 58,405,926 53,467,695

R8 33,190,052 38,574,596 34,274,111 35,345,145 31,927,395 37,311,939 33,011,453 40,729,689 36,429,204 35,950,442

R9 22,269,016 35,082,590 30,470,030 30,871,763 27,205,995 40,019,570 35,407,009 43,685,337 39,072,777 35,226,884

R10 30,621,630 41,935,902 36,692,866 38,342,271 34,175,442 45,489,714 40,246,678 49,656,543 44,413,507 41,369,115

R11 25,740,772 42,437,218 36,749,510 37,171,553 32,651,328 49,347,774 43,660,066 53,867,999 48,180,292 43,008,218

R12 24,298,039 34,179,596 29,911,286 30,543,408 27,151,228 37,032,785 32,764,475 40,424,966 36,156,655 33,520,550

ARMM 24,015,179 31,121,228 27,816,579 24,192,126 21,565,802 28,671,852 25,367,202 31,298,175 27,993,526 27,253,311

R13 21,214,329 28,845,820 25,224,423 26,666,588 23,788,533 31,420,025 27,798,627 34,298,079 30,676,682 28,589,847

Total 1,200,288,000 1,200,288,000 1,200,288,000 1,200,288,000 1,200,288,000 1,200,288,000 1,200,288,000 1,200,288,000 1,200,288,000 1,200,288,000

Comparative Changes Applied to 2010 Fund Allocation (Options 1 to 8, in percent)


Per 2010

GAA Option 1 Option 2 Option 3 Option 4 Option 5 Option 6 Option 7 Option 8 Average

Nationwide 39.79% 18.67% 29.23% 21.12% 30.45% 9.33% 19.89% 0.00% 10.56% 17.41%

Central Offices 13.58% 14.76% 12.65% 18.82% 16.20% 17.38% 15.27% 20.00% 17.89% 16.62%

NCR 4.36% 7.88% 6.67% 7.90% 6.94% 10.46% 9.26% 11.42% 10.21% 8.84%

CAR 1.41% 2.56% 2.19% 2.30% 2.01% 3.16% 2.79% 3.44% 3.08% 2.69%

R1 2.77% 3.35% 2.94% 3.26% 2.94% 3.52% 3.11% 3.84% 3.44% 3.30%

R2 2.28% 3.03% 2.68% 2.56% 2.29% 3.03% 2.68% 3.31% 2.96% 2.82%

R3 4.42% 5.67% 4.99% 5.14% 4.61% 5.85% 5.18% 6.39% 5.71% 5.44%

R4A 4.42% 7.10% 6.19% 5.95% 5.22% 7.90% 6.99% 8.63% 7.71% 6.96%

R4B 1.92% 3.02% 2.63% 2.62% 2.31% 3.41% 3.02% 3.73% 3.33% 3.01%

R5 2.95% 3.46% 3.06% 3.25% 2.93% 3.44% 3.04% 3.75% 3.35% 3.28%

R6 3.94% 4.95% 4.36% 4.55% 4.09% 5.10% 4.51% 5.57% 4.98% 4.76%

R7 3.04% 4.56% 3.98% 3.93% 3.47% 4.98% 4.41% 5.44% 4.87% 4.45%

R8 2.77% 3.21% 2.86% 2.94% 2.66% 3.11% 2.75% 3.39% 3.04% 3.00%

R9 1.86% 2.92% 2.54% 2.57% 2.27% 3.33% 2.95% 3.64% 3.26% 2.93%

R10 2.55% 3.49% 3.06% 3.19% 2.85% 3.79% 3.35% 4.14% 3.70% 3.45%

R11 2.14% 3.54% 3.06% 3.10% 2.72% 4.11% 3.64% 4.49% 4.01% 3.58%

R12 2.02% 2.85% 2.49% 2.54% 2.26% 3.09% 2.73% 3.37% 3.01% 2.79%

ARMM 2.00% 2.59% 2.32% 2.02% 1.80% 2.39% 2.11% 2.61% 2.33% 2.27%

R13 1.77% 2.40% 2.10% 2.22% 1.98% 2.62% 2.32% 2.86% 2.56% 2.38%

Total 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

Fund based

in MM57.73% 41.31% 48.55% 47.84% 53.60% 37.18% 44.42% 31.42% 38.66% 42.87%

5 2 3 1 7 4 8 6Rank

The options are ranked according to the aggregate sum (in %) of funds for

Nationwide, Central Offices and NCR, all are Metro-Manila based

Probable Criteria for Selection of Appropriate Option/s

Presence of National Government Agencies in all the regions

Readiness of NGAs’ regional offices to plan, develop and implement service area-specific programs and projects

Special purpose funds for automatic appropriation, defense and security matters and the like should be retained under the purview of the national government

Maturity of national development programs and projects for decentralization

Degree of coordination among government agencies with interfacing programs and projects

Degree of urgency expressed by regional constituents for accelerated development of programs and projects – availability of regional strategic plan

Extent of decentralization prevailing in a department/agency


LIKELY RECOMMENDED OPTION: Option 6: Re-allocate 50% of Department and Special Purpose Funds, Frontload 50% of Nationwide, and Apply 20:80 Ratio


Nationwide – 39.79%

Nationwide – 19.89%

Central Offices 13.58%

Central Offices 15.27%

NCR

NCR

CA

R

CA

R

R1

R1

R2

R2

R3

R3

R4A

R4A

R4

B

R4B

R5

R5

R6

R6

R7

R7

R8

R8

R9

R9

R1

0

R10

R1

1

R11

R1

2

R12

AR

MM

A

RM

M

R1

3

R13

- 200,000,000 400,000,000 600,000,000 800,000,000 1,000,000,000 1,200,000,000

OPTION 6 ADJUSTED 2010 FUNDS

2010 GAA FUNDS

• Maintains flexibility of central government to respond to local situations

• Affords the ability of regions to respond to its own development imperatives

20% 80%

The Literal Change of Option 6


An Alternative Recommendation:


Per 2010

GAA Option 4 Option 2 Option 3 Option 6 Option 1 Option 8 Option 5 Option 7

Nationwide 39.79% 30.45% 29.23% 21.12% 19.89% 18.67% 10.56% 9.33% 0.00%

Central Offices 13.58% 16.20% 12.65% 18.82% 15.27% 14.76% 17.89% 17.38% 20.00%

NCR 4.36% 6.94% 6.67% 7.90% 9.26% 7.88% 10.21% 10.46% 11.42%

CAR 1.41% 2.01% 2.19% 2.30% 2.79% 2.56% 3.08% 3.16% 3.44%

R1 2.77% 2.94% 2.94% 3.26% 3.11% 3.35% 3.44% 3.52% 3.84%

R2 2.28% 2.29% 2.68% 2.56% 2.68% 3.03% 2.96% 3.03% 3.31%

R3 4.42% 4.61% 4.99% 5.14% 5.18% 5.67% 5.71% 5.85% 6.39%

R4A 4.42% 5.22% 6.19% 5.95% 6.99% 7.10% 7.71% 7.90% 8.63%

R4B 1.92% 2.31% 2.63% 2.62% 3.02% 3.02% 3.33% 3.41% 3.73%

R5 2.95% 2.93% 3.06% 3.25% 3.04% 3.46% 3.35% 3.44% 3.75%

R6 3.94% 4.09% 4.36% 4.55% 4.51% 4.95% 4.98% 5.10% 5.57%

R7 3.04% 3.47% 3.98% 3.93% 4.41% 4.56% 4.87% 4.98% 5.44%

R8 2.77% 2.66% 2.86% 2.94% 2.75% 3.21% 3.04% 3.11% 3.39%

R9 1.86% 2.27% 2.54% 2.57% 2.95% 2.92% 3.26% 3.33% 3.64%

R10 2.55% 2.85% 3.06% 3.19% 3.35% 3.49% 3.70% 3.79% 4.14%

R11 2.14% 2.72% 3.06% 3.10% 3.64% 3.54% 4.01% 4.11% 4.49%

R12 2.02% 2.26% 2.49% 2.54% 2.73% 2.85% 3.01% 3.09% 3.37%

ARMM 2.00% 1.80% 2.32% 2.02% 2.11% 2.59% 2.33% 2.39% 2.61%

R13 1.77% 1.98% 2.10% 2.22% 2.32% 2.40% 2.56% 2.62% 2.86%

Total 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

Fund based

in MM57.73% 53.60% 48.55% 47.84% 44.42% 41.31% 38.66% 37.18% 31.42%

Order of Implementation--> 1 2 3 4 5 6 7 8

Adopting all the eight options for a defined period of implementation: from the

highest allocation for Nationwide programs to zero (full delegation to regions)

A Transformational Alternative


Per 2010 Option 4 Option 2 Option 3 Option 6 Option 1 Option 8 Option 5 Option 7

Nationwide 39.79% 30.45% 29.23% 21.12% 19.89% 18.67% 10.56% 9.33% 0.00%

Central Offices 13.58% 16.20% 12.65% 18.82% 15.27% 14.76% 17.89% 17.38% 20.00%

All Regions 46.63% 53.35% 58.13% 60.06% 64.84% 66.57% 71.55% 73.29% 80.00%

Total 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

STATUS QUO FULL DECEN-TRALIZATION

Projection for a 20-year cycle


1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

% GRDP

Y e a r s

% GRDP

trend of NCR

and similar

regions

% GRDP

trend of

under-

developed

regions

All regions

with fairly

equal share

to the GDP

5.8%

Update GRDP table

Update Regional Allocation of Expenditure

Program (REAP) table

Project Next Year’s GRDP

and REAP tables

Calculate Required

Increment Factor

Update Development Timeframe for

all Regions

Apply Increment Factor to

Calculate Next Year’s REAP

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

General trend of fund

allocation to each region

(except NCR, Regions 3,

4A & 7)

Y e a r s

Annual Iterative Process

It is all about the pursuit of the

3D effect


ECONCENTRA

ECENTRALIZA

E C O N G E S

COMPLEMENTARY ACTIONS NEEDED

Ensuring Development and Adherence to Goals of Delegation


Action Points Redefine the protocol of

accountability of the regional offices of all national line

agencies to be more service area oriented and responsive

to the specifications of the Regional Development

Councils’ priorities

Each Regional Development Council to identify a city within

their area of jurisdiction as candidate mega-city with

Metro-Manila as benchmark

Prioritize basic needs and development imperatives of

the regional service area, i.e., roads, bridges, ports, communication and

transportation infrastructure, school buildings, pre- and post

harvest support, etc.

Establish cost standards for materials for infrastructure

projects and services in each region as basis for project planning, development,

implementation and evaluation of regional line

agencies.

Prioritize region-based service providers and civil works

contractors in project development and implementation

Institutionalize the GRDP-based fund allocation in

national budget preparation, integration and execution for all line government agencies.

Transform the Regional Development Councils to have more decision-making authority and

accountability over development and implementation of programs and projects in

their respective service area.


Enable the regional offices of NGAs to be directly accountable for its development programs, projects

and activities approved by the RDC


implementation

and supervision,

bidding and

contracting,

and wrap-up &

documentation

for planning

and review,

monitoring,

Differentiate the relationship and responsibilities of Central Offices vis-a-vis Regional Offices


REGIONAL

OFFICES

ENABLER and

STRATEGIC

COORDINATOR

NATIONAL

/C.O.

REGIONAL

OFFICES

Mandate all RDCs to immediately prepare a progressive 5-year development plan exclusively for its respective service area, with components implementable by the responsible NGA’s regional offices in the service area


Preference for local and indigenous contractors and service providers


faster delivery of required goods and services

monitoring of project is faster

motivates and develops local providers

motivates local employment

supports local industry and economy

accountability is better defined

Advantages:

Establish cost standards per region for civil works materials and services for the delivery of goods and basic needs


LOC

ALL

Y A

VA

ILA

BLE

R

ESO

UR

CES

IND

IGEN

OU

S R

ESOU

RC

ES

INVENTORY OF

MATERIALS, GOODS

AND SERVICES

REGION A

LOC

ALL

Y A

VA

ILA

BLE

R

ESO

UR

CES

IND

IGEN

OU

S R

ESOU

RC

ES

INVENTORY OF

MATERIALS, GOODS

AND SERVICES

REGION B

LOC

ALL

Y A

VA

ILA

BLE

R

ESO

UR

CES

IND

IGEN

OU

S R

ESOU

RC

ES

INVENTORY OF

MATERIALS, GOODS

AND SERVICES

REGION N

. . .

MATERIAL UNIT COST SERVICE UNIT COST

1. _____ xxxxx P000.00 1. _____ xxxxx P000.00

2. _____ xxxxx P000.00 2. _____ xxxxx P000.00

3. _____ xxxxx P000.00 3. _____ xxxxx P000.00

: :

n. _____ xxxxx P000.00 n. _____ xxxxx P000.00

= / = /

The cost standards can facilitate project development, implementation and monitoring, especially

when the needed materials, technology, equipment, expertise and skills are available locally. It

may even bring down the cost of projects and spur competition among regions.

Institutionalize the GRDP-based Fund Allocation Scheme


Legend: NGA – National Government Agency

CO – Central Office

RO – Regional Office

RO-80%

CO-20%

NGA 1

RO-80%

CO-20%

NGA 2

RO-80%

CO-20%

NGA n

GRDP-based Fund Allocation Scheme Applied

RDC

∑ NGA Budget Proposals CO-20% + RO-80%

50%/50% of Spec’L Purpose

and Nationwide Funds

OP/DBM

APPROVED PPAs

REGIONAL DEVELOPMENT PLAN

CONGRESSIONAL BUDGET

PROCESSES

APPROVAL

EXECUTION

EN

DO

RS

EM

EN

T

...

...

As a start, this concept maybe applied

to review the national budget proposal

and identify allocation inequities. For a

bottom-up approach, the allocation

scheme can be initiated and applied at

NGA level to allow greater capacity and

flexibility to its regional offices to offer

more and better services to its service

area.

ANTICIPATED RESULTS


Anticipated Results


Allows the Regional Development Councils to be more strategic and competitive in outlook and perspective

Private sector can be better encouraged to participate in regional development

Responsibility for development programs and accountability for funds are more defined

Allows the Central Government to focus more on strategic concerns after delegation of local major development programs

Encourage more citizens to remain in/return to their respective regions of origin to invest or initiate more economic activities

Local business investments are stimulated as well as reduction of outmigration from regions to Manila.

With Central Offices’ concerns reduced to a strategic few, a de facto re-organization is set in motion in favor of regional offices

With greater resources and autonomy, it allows the Regional Development Council to be more strategic and competitive in outlook and perspective


The RDC can exercise the prerogative of planning and laying down the “building blocks”

to address the development plan of its service area in coordination with the national plan

Acting like a Federal State without being a Federal State

Differentiating and Complementing Roles


Members of

the Regional

Development

Council

takes direct

action and

responsibility

to address

the develop-

ment

imperatives/

initiatives of

their service

area.

RDC-driven

Projects for

their respective

Metropolis in an

Ecology-friendly

Regional

Agenda

In the near future, what if the 16 other empowered RDCs embark in these Projects for their selected Metropolis?

An integrated metro-wide

commuter train system

Better flood control and

warning systems

Concrete roads and elevated

highways

More low-cost housing projects

Better waterways and drainage

systems

State-of-the-art traffic

management system

Metro-wide electronic

surveillance system

Technology-based

garbage/waste disposal systems

More high-rise condominiums and apartments


Better health facilities and

services

Vital Infrastructures, particularly in the less developing Regions, can take an Accelerated Development Phase


Communication

Road

Network

With more funds at the disposal of the RDC through the concerned NGA

Regional Offices, the required infrastructures to support and sustain

significant economic development are laid down at a faster phase.

Power & Energy Schools and

Training Centers Seaports Airports

Bridges

Mass Transport

System Hospitals

For the Emerging Regions, Trade and Commerce boom as Investments bloom


Industries like Tourism in most Regions is further Stimulated


Improved Employment Scenario in all Regions


Auto-Service

Technicians

Construction

Workers

Forklift

Operators

Assembly line

Workers

Control Panel

Operators

Nurses

Food

Vendors

House

Painters Teachers

Hairdressers

Farmers Carpenters

Chefs and many more . . .

Metro-Manila’s Major Issues & Concerns are SIMPLIFIED, CONTROLLED/MINIMIZED

Over population, consumerist orientation

Uncontrolled Water pollution

High incidence of Air pollution

Traffic congestion

High crime rate

Flooding

Garbage and Sewerage problem

Highest incidence of urban poor

Highest number of informal settlers


An a

rea 6

36 s

quare

kilo

mete

rs

in a

country

of 3

00,0

00 s

quare

kilo

mete

rs

0.21%

creating 17 national capital regions

Government & Nonprofit