[PPT] - PAGGUGOL NA MATUWID: DAAN SA KASAGANAAN DAAN SA KASAGANAAN PowerPoint Presentation

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The 2014 National Expenditure Program

PAGGUGOL NA MATUWID: DAAN SA KASAGANAAN DAAN SA KASAGANAAN

Secretary Florencio B. Abad, DBM

Presentation to the Committee on Finance Senate of the Philippines 27 August 2013

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Outline of Presentation

I. Introduction

II. Principles of the 2014 Budget

AVP on the Budget for Inclusive Development

III. The 2014 Budget: Overview and Dimensions
III. The 2014 Budget: Overview and Dimensions
IV. Expenditure Priorities for 2014
V. The New Face of the Budget

AVP on the Performance-Informed Budget Structure

VI. The 2014 Budget: By Source of Appropriations

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Paggugol na Matuwid: Daan sa Kasaganaan

A Budget for Inclusive Development

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A Budget for Inclusive Development A Budget for Inclusive Development

Key Principles and Reforms of the 2014 National Budget Key Principles and Reforms of the 2014 National Budget Key Principles and Reforms of the 2014 National Budget Key Principles and Reforms of the 2014 National Budget

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PhP2.268T PhP2.268T PhP2.268T PhP2.268T

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The 2014 Budget:

Overview and Dimensions Overview and Dimensions Overview and Dimensions Overview and Dimensions

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The FY 2014 Proposed Budget

Levels (in billion pesos) 2,005.9 2,268.0

% of GDP 16.8 17.0

Particulars 2013 GAA 2014 Proposed

Growth Rate, Nominal (gross) 13.1 excluding debt service 14.6 excluding debt service & IRA 14.9 Growth Rate, Real (gross) 9.1 excluding debt service 10.6 excluding debt service & IRA 10.9

Nominal GDP 11,914.5 13,336.7

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The Budget by Sector

2013 vs. 2014

Economic

Debt Service 16.6%

Gen. Public

Service 17.3% Defence 4.5%

Social Economic Service

Debt Service 15.5%

Gen. Public

Service 16.1% Defence 4.1%

Social Service 34.9% Economic Service 25.4% Social Service 37.2% Service 26.0%

2013 2014

8

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The Budget by Expense Class

2013 vs. 2014

2013 2014 2013 2014 2013 2014 Program Proposed Program Proposed 13-14 Program Proposed

CURRENT OPERATING EXPENDITURES 1,569.1 1,732.4 78.2 76.4 10.4 13.2 13.0 Personnel Services 640.6 689.4 31.9 30.4 7.6 5.4 5.2 Maintenance & Other Operating Exp. 319.0 375.3 15.9 16.5 17.6 2.7 2.8 Subsidy (Regular) 6.9 14.9 0.3 0.7 116.3 0.1 0.1 Allotment to LGUs 241.8 273.2 12.1 12.0 13.0 2.0 2.0

Growth Rate

PARTICULARS

Levels (Php Billion) Percent Share Percent of GDP

Allotment to LGUs 241.8 273.2 12.1 12.0 13.0 2.0 2.0 Interest Payments 333.9 352.7 16.6 15.5 5.6 2.8 2.6 Tax Expenditure Fund 26.9 26.9 1.3 1.2

0.2

0.2 CAPITAL OUTLAYS (CO) 410.3 510.7 20.5 22.5 24.5 3.4 3.8 Infrastructure Outlay 294.7 399.4 14.7 17.6 35.5 2.5 3.0 Other CO 77.0 65.8 3.8 2.9 (14.5) 0.6 0.5 Equity 2.0 3.8 0.1 0.2 89.7 0.0 0.0 Capital Transfers to LGUs 31.6 36.6 1.6 1.6 15.9 0.3 0.3 CARP- Land Owner's Compensation 5.0 5.0 0.2 0.2

0.0

0.0 NET LENDING 26.5 25.0 1.3 1.1 (5.8) 0.2 0.2 TOTAL 2,005.9 2,268.0 100.0 100.0 13.1 16.8 17.0

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Top 10 Departments

2013 vs. 2014

DepEd (incl. MPBF and SBP) 293.4

1/

1 336.9

1/

1

14.9

DPWH (incl. BSGC ) 152.4

2/

2 213.5 2

40.1

DILG (incl. MPBF and PGF) 121.8 3 135.4 3

11.2

DND (incl. MPBF and PGF) 121.6 4 123.1 4

1.2 (Php Billions)

Particulars

Growth Rate

Level

(Php Billion)

2013 Program 2014 Proposed Level Rank Rank DND (incl. MPBF and PGF) 121.6 4 123.1 4

1.2

DOH (incl. MPBF, HFEP and BSGC ) 59.9

3/

6 87.1

3/

5

45.5

DA (incl. BSGC ) 75.0 5 80.7 6

7.6

DSWD (incl. MPBF) 56.4 7 79.0 7

40.0

DOTC (incl. MPBF, PGF and BSGC ) 37.1 8 48.7 8

31.4

DENR (incl. MPBF and PGF) 23.7 9 23.9 9

0.9

DAR 21.4 11 20.4 10

(4.9) Notes: Legend: 1/ Gross of SBP MPBF- Miscellaneous Personnel Benefits Fund 2/ Net of SBP and HFEP SBP - School Building Program 3/ Gross of HFEP PGF - Pension and Gratuity Fund BSGC - Budgetary Support to Government Corporations HFEP - Health Facilities Enhancement Program

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Expenditure Priorities for Expenditure Priorities for FY 2014

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Expand Pantawid Pamilyang Pilipino Ensure Access to Quality Education Ensure Access to Universal Healthcare and Attainment of Health MDGs Provide Socialized Housing

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2014 DSWD-OSEC MFO 2: SOCIAL PROTECTION SERVICES PhP 76,832 M

f which: PI 3: No of household assisted (non-residential)

Pantawid Pamilyang Pilipino Program (Conditional Cash Transfer)

Expand Pantawid Pamilyang Pilipino

Provide Social Protection for 4.3M Household Beneficiaries, 4.3M Children

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Cash Transfer) Regular CCT PhP 48,311 M

No. of household beneficiaries

4,309,769 Modified CCT Php 2,003 M

No. of household beneficiaries

131,963 Extended CCT PhP 12,300 M

No. of children beneficiaries

4,287,630

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Ensure Access to Quality Education

Close Resource Gaps & Adequately Prepare Graduates

MFO2:

294,385 PhP M

PI 1 : Number of learners ages 5-11 years old enrolled in kindergarten and elementary education (in any learning system) 12,568,792 BASIC EDUCATION SERVICES 2014 Particulars

DepED-OSEC

kindergarten and elementary education (in any learning system) 12,568,792 PI 3 : % of learners who completed the school year (elementary) 79.6% secondary education 4,294,124 75.0% 331,150 within 10 months 75% MFO3:

7,447 PhP M

PI 1 : Number of grantees 1,044,899 PI 7 : Number of learners above 15 years old served thru PI 9 : % of ALS completers to total number of ALS learners REGULATORY & DEVELOPMENTAL SERVICES FOR PRIVATE EDUC. PI 4 : Number of learners ages 12-15 years old enrolled in PI 6 : % of learners who completed the school year

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Ensure Access to Quality Education

Close Resource Gaps & Adequately Prepare Graduates

Programs and Projects 8,564 PhP M

33,194

7,945 PhP M

1,500

615 PhP M

1. Creation of Positions

1.a Teaching positions 1.b Teaching-related positions- Principal Physical Target 2014 Particulars

DepED-OSEC

1,500

615 PhP M

8

4 PhP M 44,626 PhP M

43,183

37,670 PhP M

9,502

2,851 PhP M

13,586

1,359 PhP M

1,596,921

1,118 PhP M

9,301

1,628 PhP M

2. Provision & Maintenance of Basic Education Facilities

2.a Construction of classrooms 2.b Repair and rehabiliation of classrooms 2.c Construction of water and sanitation facilities 1.b Teaching-related positions- Principal 1.c Teaching-related positions- Education Supervisor 2.d School seats 2.e Amortization for PPP Batch 1

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Financial Risk Protection PhP35,338 M National Health Insurance Program PhP35,296 M Social Protection Package for Former Combatants PhP16 M MILF Families under the Bangsamoro Agreement PhP26 M Particulars FY 2014

Ensure Access to Universal Healthcare and Attainment of Health MDGs

Provide 14.7M Poor Families with Health Insurance Coverage

Access to Quality Health Facilities and Services PhP16,295 M Health Facilities Enhancement Program PhP13,325 M Doctors to the Barrios and Rural Health Practice Program PhP2,970 M Attainment of Millenium Development Goals PhP9,342 M Access to Potable Water Supply PhP1,078 M

*P 513. M of which, inlc. Of admin costs, will be implemented by DILG; while P565 M will be implemented by LWUA

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Provide Socialized Housing

Relocate Informal Settler Families from Danger Zones

PhP 10,227 M NHA PhP 5,494 M 20,000 ISF SHFC PhP 3,665 M 5,895 ISF TOTAL

2014

Resettlement Community Mortgage Financing

No. of Beneficiaries of Housing Units
No. of Beneficiaries of Member Loans

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5,895 ISF DILG-OSEC 1,060 PhP M PhP 360 M

No. Beneficiaries of Rental Assistance

20,000 ISF PhP 700 M

No. Beneficiaries of Housing Units

472 ISF PCUP PhP 8 M

No. Beneficiaries of Consultation

Mechanisms 24,000 ISF Sub - total

No. of Beneficiaries of Member Loans
1. Rental Assistance

Capability Building for the ISF

2. Micro-Medium Rise Building

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Accelerate Infrastructure Development Raise Productivity and Incomes in Agriculture and Fisheries in Agriculture and Fisheries Pursue Tourism Development

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Infrastructure Outlays, By Project/Category

(In million pesos, unless otherwise stated) 2012-2013 2013-2014 Roads and Bridges 84,218 108,097 144,443 28.4 33.6 Basic Educational Facilities* 11,012 26,268 45,626 138.5 73.7 Flood Control/Seawalls 11,331 16,536 34,069 45.9 106.0 Housing 10,518 23,203 16,317 120.6 (29.7) National Irrigation 24,193 22,212 16,172 (8.2) (27.2) 2012 Actual 2013 GAA 2014 Proposed Growth Rate (%) Particulars

Infrastructure spending to grow from 2.5 % of GDP in 2013 to 5.0% in 2016

20 National Irrigation 24,193 22,212 16,172 (8.2) (27.2) Farm-to-Market Roads 4,868 5,657 12,603 16.2 122.8 Health Facilities Enhancement Program 5,078 13,558 9,037 167.0 (33.3) Electrification 4,941 6,374 9,679 29.0 51.8 Airports/Air Navigational Facilities 802 5,195 9,014 547.8 73.5 Other Public Works 15,120 1,321 5,092 (91.3) 285.4 Water Supply 1,583 3,335 4,503 110.7 35.0 Preliminary and Detailed Engineering 780 1,724 3,026 121.0 75.5 Land Transportation/Railway 116 6,661 1,642 5,633.5 (75.3) Ports and Lighthouses 679 2,373 1,377 249.6 (42.0) Quick Response Fund 1,383 1,150 1,305 (16.8) 13.5 Others 39,113 51,043 85,529 30.5 67.6 Total Infrastructure Outlays 215,735 294,708 399,432 36.6 35.5 Source: Table B. 6, 2014 BESF Tables * Inclusive of School Building Program

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29,803 PhP M 9,014 PhP M 37 2014

DOTC

Number of domestic and international airports Air Transport

Transport Infrastructure Program

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3,167 PhP M 44 1,298 PhP M 16,324 PhP M Number of ports, wharves, causeways and boatlanding Maritime Transport Road Transport Information Technology Infra Project Rail Transport

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National Roads and Bridges 137,695.43 PhP M Asset Preservation (Km.) Preventive Maintenance 583 km Rehabilitation 485 km Network Development (Km.) Road Transport 2014

DPWH

Transport Infrastructure Program

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Network Development (Km.) Widening of National Roads (Km.) 328 km Construction of By-passes/Diversion Roads 112 km Construction of Missing Gaps, New Roads, etc. 70 km Road Upgrading (Gravel to Paved) 1,249 km National Bridges (Lm.) Replacement (Temporary to Permanent) 1,101 lm Rehab/Reconstruction of Bridges 9,957 lm Widening of Permanent Bridges 1,229 lm

Const. of Bridges (incl. flyovers/interchanges/bypasses)

2,999 lm Construction/Improvement of Access Roads leading to Airports and Seaports (Km.) 59 km

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Agricultural Development Program

Provide Adequate Infrastructure Support

21,092 PhP M MFO 3: Irrigation Network Services 3,775 PhP M PI 1: 300 117 2014 DA-OSEC Number of irigation systems under management/NIA-assissted National Irrigation System (NIS) NIA Programs 117 183 PI 2: 431,200 has 419,000 has 12,200 has Irrigation Projects 17,317 PhP M Locally-Funded Projects FA RM-TO-MA RKET ROADS 12,000 PhP M PI 1: 1,000 KMs DA-OSEC

No. of kilometers of FMRs

restored/rehabilitated National Irrigation System (NIS) Communal Irrigation System (CIS) Projects Number of hectares serviced by irrigation systems under management National Irrigation System (NIS) Communal Irrigation System (CIS)

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Agricultural Development Program

Improve the Productivity and Incomes of Fisherfolk

National Fisheries Program 4,194 PhP M

f which:

MFO 3: 1,168 PhP M PI1 DA-BFAR SUPPLY SERVICES FOR FISHERY PRODUCTIVITY Number of fisherfolks provided with production 2014 PI1 206,354 MFO 4: 1,113 PhP M PI1 91,205 PI2 Fishports 21 IPCS 8

No. of beneficiaries supplied with fishery

equipment and facilities

No. of fish ports and Ice Plant and Cold Storage

(IPCS) constructed Number of fisherfolks provided with production support/supply SUPPLY OF INFRASTRUCTURE FACILITIES AND EQUIPMENT FOR FISHERY INDUSTRY

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Pursue Tourism Development:

Meet Target of 6.8M International & 47.7M Domestic Tourists

DOT - OSEC

Tourism Planning and Regulation Program 1,143 PhP M MFO 1: PI 1 : No. of technical assistance/advisories provided 3,534 PI 2 : No. of persons trained in the tourism industry and LGUs 22,893 MFO 2: 2014 TECHNICAL ADVISORY SERVICES TOURISM REGULATION SERVICES

Tourism Promotion and Human Resource Development

PI 1 : No. of accreditation applications and renewals acted upon 3,588 Project 1: BRANDING CAMPAIGN 570 PhP M PI 2: No. of advocacy program conducted 20

TPB

MFO 1: TOURISM PROMOTION SERVICES 1,156 PhP M PI 1: No. of projects implemented (domestic promotion) 22 PI 2: No. of projects implemented (international promotion) 34

DOLE - TESDA

MFO 2 TECHNICAL EDUCATION AND SKILLS DEVELOPMENT SERVICES Training for Work Scholarship Program (TWSP)

f which:

For Tourism 360 PhP M PI 1 : No. of persons trained under the Tourism Devt Program 48,000

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Pursue Tourism Development:

Meet Target of 6.8M International & 47.7M Domestic Tourists

MFO 3:

f which:

14,451 PhP M Construction/improvement of access roads leading to Declared Tourism Destinations MAINTENANCE & CONSTRUCTION SERVICES OF OTHER INFRA

Support Infrastructure for Tourism

2014

DPWH

PI 1: No. of km. of access roads leading to Tourism Destinations 679 km 714 lm. Project 1: 9,014 PhP M 70% Project 2: 534 PhP M 70% % of port projects with Notice of Award issued within scheduled time % of airport projects with Notice of Award issued within scheduled time CONSTRUCTION/UPGRADING OF PORTS AND NAVIGATIONAL FACILITIES

DOTC - OSEC

PI 2: No. of lm. of bridge constructed/replaced/reconstructed/improved CONSTRUCTION, IMPROVEMENT, REHABILITATION OF AIRPORTS

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The New Face of the Budget

Performance-Informed Budget Structure

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The Budget by Source of Appropriations

2013 vs. 2014

2013 2014 Amount Percent New General Appropriations 1,368.2 1,611.9 114.2 9.1 Programmed New Appropriations 1,250.7 1,472.0 221.3 17.7 Unprogrammed Fund 117.5 139.9 22.4 19.0 Particulars Inc./(Dec.) Levels (in billions)

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Unprogrammed Fund 117.5 139.9 22.4 19.0 Automatic Appropriations 755.2 796.0 40.8 5.4 Total Appropriations 2,123.4 2,407.9 284.5 13.4 Less: Unprogrammed Fund 117.5 139.9 22.4 19.0 Total Programmed Appropriations 2,005.9 2,268.0 262.1 13.1

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The 2014 National Expenditure Program

PAGGUGOL NA MATUWID: PAGGUGOL NA MATUWID: DAAN SA KASAGANAAN

Presentation to the Committee on Finance Senate of the Philippines 27 August 2013