2014 NATIONAL BUDGET

2014 National Expenditure Program (NEP)

P2.268 trillion
13.1 percent higher than this years P2.006-trillion

Performance-Informed Budget (PIB) structure

each allocation is tightly woven with the development outcomes that we want to achieve. Each program and project that we spend on is clearly linked to major final outputs that departments and agencies must deliver according to their mandates
- Butch Abad, Budget Secretary

Defense
92.9 B

Debt Services

352.7 B 843 B

Social Services

General Public 364.5 B Services

590.2 B

Economic Services

Allocations for Departments: Education Public Works and Highways Interior and Local Government National Defense Health Agriculture Social Welfare and Development Transportation and Communications Environment and Natural Resources Agrarian Reform

336.9 B 213.5 B 135.4 B 123.1 B 87.1 B 80.7 B 79.0 B 48.7 B 23.9 B 20.4 B

P399.4-billion
Infrastructure Development

P399.4-billion
Infrastructure Development
3 percent of the countrys Gross Domestic Product 35.5 percent increase from the P294.7 billion

Set to increase to P587 billion and P824 billion in 2015

and 2016, respectively, in line with the Aquino Administrations commitment to raise infrastructure spending to 5 percent of GDP by 2016.

P399.4-billion
Infrastructure Development
21.1 Billion Irrigation systems New irrigation systems for 59,591 hectares Rehabilitation of 17,634 hectares of land Restoration of 8,894 hectares of land 12 Billion - farm-to-market roads 14.5 billion DPWH
construction and maintenance of 679 kilometers of access roads to

tourism destinations. To assist tourism and meet Administrations target of 6.8 million international and 47.7 million domestic tourists P33.4 billion flood control projects

180.1 billion -Transport Infrastructure Program 63.7 higher than this year

P336.9 billion
Department of Educations (DepEd)

P336.9 billion
Department of Education
To cover gaps in Education sector and prepare for K-12 P39.3 billion - State Universities and Colleges P44.6 billion 77 % higher from 25.3 B construction of 43,183 classrooms rehabilitation and repair of 9,503 classrooms acquisition of 1.6 million classroom seats

P135.4 billion
Department of Interior and Local Government

P135.4 billion
Department of Interior and Local Government
to support the agencys capacity expansion efforts and

service delivery improvements P1.55 billion - development of important roads, community infrastructure, and other capacity-building efforts for local governments under the Payapa at Masaganang Pamayanan (PAMANA) program.

P123.1 billion
Department of National Defense

P123.1 billion
Department of National Defense
P5 billion for the modernization of the

countrys armed forces

P87.1 billion
Department of Health

P87.1 billion
Department of Health
up by 45.5 percent to P87.1 billion
PhilHealth premiums for indigent and poor families

(P21.2 billion) Health Facilities Enhancement Program (P13.3 billion) 35.3 Billion Philhealth Increased from 12.6 Billion this year health insurance coverage to 14.7 million qualified families

P80.7 billion
Department of Agriculture

P80.7 billion
Department of Agriculture
Irrigation Network Services (P21.1 billion) Farm-to-Market roads (P12 billion) Additional P10.5 billion to help increase the productivity

and income of farmers/fishermen in 20 of the countrys poorest provinces.

P62.6 billion
Pantawid Pamilyang Pilipino Program (4Ps)

P62.6 billion
Pantawid Pamilyang Pilipino Program (4Ps)
will cover 4.44 million households 10.2 million children beneficiaries

Conditional Cash Transfers

will now cover high school students

CRITICISMS TO THE 2014 NATIONAL BUDGET

2014 National Expenditure Program (NEP)

Focus on Infrastructure Development

We intend to channel more investments into infrastructure development and other public services that are pivotal to our pursuit of rapid, sustained and inclusive growth.
- Butch Abad, Budget Secretary

These efforts will support the continued revitalization of our most promising sectors, such as tourism, agriculture and fisheries, and manufacturing. Under the proposed 2014 expenditure plan, we can broaden our budgetary support for these prime industries to bolster our economic competitiveness, spur investment, and further generate jobs for Filipinos,
- Butch Abad, Budget Secretary

Public Private Partnerships

At first, people may think that PPPs help the

government spend less on infrastructure developments, but at present, we can see that it has only resulted to fare increases as the private companies gain total control on the prices, resources and expenditures of the public structure Private corporations will take control over the Public services (Health, transportation and education)
Control on fares and tuition

Infrastructures subject to PPP (Public private partnership)

Philippine Orthopedic Center
Classrooms
Last year, the reported expenditure for the

construction of one classroom sums up to 1.1 M, when in fact, each room amounts only up to 600,000 pesos.

Infrastructures subject to PPP (Public private partnership)

Classrooms Philippine Orthopedic Center MRT and LRT Budget cut on MRT and LRT expenses Rationale: people from other areas (ex. Visayas and Mindanao) who pay taxes dont use them Will be sold to Ayala Following this logic, should all public services, which are mostly specifically appropriated, not be subsidized?

Budget for demolition

People accuse those who live in esteros of

causing the floods

Study showed that the causes of flood are the formal

developments blocking the flow of water (ex. SM Marikina) and the wastes of large establishments Esteros are made of light-weight materials

Increased budget for Conditional Cash Transfer

From the 2010 10 B budget for CCT, next years

budget will increase to 51.3 billion Short-term solution to poverty Since its implementation, there has been no proof or study on the effectiveness, feasibility and efficiency of this project. This project only proves to be a short-term solution to poverty.

Increased budget for Conditional Cash Transfer

CCT may be used by local officials to bribe

recipients, to buy votes or to use for personal transactions In some areas, CCT is used by the AFP as a reason for entry where they are assigned to distribute the cash to selected families.

PAMANA Program
Counter-insurgency program the social services are not given by civilian

agencies, but by the military. (Example: DSWD (distribution of 4Ps), CHED (college scholarships), NEA (electricity), DAR and DOE.
Example: after Ondoy, the military was assigned to

distribute relief goods in the Compostela Valley instead of DSWD. The community was asked to list down first their names before they are given the relief goods. After a few months, extrajudicial killings started to become rampant in the area.

PORK BARREL IN THE NATIONAL BUDGET

 Briones said any lump sum fund -meaning there are no details on how and where it will be spent -- as under the discretion of one official like a senator, congressman or president, is "pork barrel. "
- Neri Colmenares, Bayan Muna partylist Rep.

General Appropriations Act (GAA)

not as detailed and specific as the budget proposals of

regular agencies

P796 billion
Automatic Appropriations
lump-sum funds that do

not undergo congressional scrutiny as these are automatically considered approved by virtue of pertinent laws

P310.1 billion
Special Purpose Funds
funds managed directly

by DBM with the approval of the President 22 % of GAA

SPECIAL PURPOSE FUNDS Support to state-owned corporations Allocations to local government units Calamity fund Contigent fund DepEd school building program E-government fund International commitments fund Miscellaneous personnel benefits fund Pension and gratuity fund PDAF (Congressional pork barrel) Feasibility studies fund Total

45.7 B 19.7 B 7.5 B 1B 1B 2.479 B 4.8 B 80.7 B 120.5 B 25.420 B 400 M 229.526 B

P139.9 billion
Unprogrammed Funds
are only disbursed if

certain government agencies hit their revenue targets

UNPROGRAMMED FUNDS Support to government-owned and controlled corporations Support to foreign-assisted projects General fund adjustments Support for infra-projects and social programs AFP Modernization program Debt management program Risk management program Peoples survival fund Total

36.268 B 16.124 B 1B 56.349 B

10.349 B 10.894 B 30 B 500 B 139.904 B

P200 billion
Budget for School buildings
No details about location, type, or level

P200 billion
Presidents Social Funds
Intelligence funds, budget for Travels

according to deputy presidential spokesperson

Abigail Valte, it is commonly used for financial assistance to calamity and disaster victims, and to combat casualties of the Philippine National Police and the Armed Forces sourced from the Philippine Charity Sweepstakes Office, the Malampaya Fund and PAGCOR

P2.5 billion
PAGCOR contribution to presidents Social Funds
is provided in the charter of Pagcor, which states that a

portion of Pagcor's gross earnings will fund the government's infrastructure and socio-civic projects at least P150 million monthly

P352 billion
Debt Servicing

P341.5 billion
Internal Revenue Allotment

Questionable in-budget items:

Confidential Funds
for surveillance activities in civilian departments

and agencies. Not all agencies are provided with confidential funds
during budget preparation, the Executive Department

exercises its discretion on which departments will be given funds for confidential expenses.

Agencies with Confidential funds:

Office of the President: P250 M
Department of Environment and Natural Resources: P13.9 M

Department of Finance: P15.5 M Department of Interior and Local Government: P20 M

Department of Justice: P200.4 M Department of National Defense: P23 M

Department of Transportation and Communications: P10.9 M

Anti-Money Laundering Council:P5 M National Intelligence Coordinating Agency: P1 M Philippine Drug Enforcement Agency: P73.6 M

ARMM: P420,000
Commission on Audit: P10 M Office of the Ombudsman: P3 M

Commission on Human Rights: P1 M

Questionable in-budget items:

Intelligence Funds
funds for intelligence information gathering activities

of uniformed personnel and intelligence practitioners that have direct impact to national security. given to agencies during the budget preparation process subject to the discretion of the Chief Executive can only be released upon approval of the president Details of the expenditures are kept secret, and all reports of the utilization of intelligence funds are submitted directly to the president.

Agencies with Intelligence Funds

Office of the President: P250 million Department of Interior and Local Government: P306

million Department of National Defense: P246.4 million Department of Transportation and Communications: P10 million National Intelligence Coordinating Agency: P20.2 million Philippine Drug Enforcement Agency: P73.6 million

Realigned Savings
If an agency was not able to use (or was

not allowed to read: DBM not releasing budget) parts of its allocation, the president gains the power to realign funds to any in any agency that he wants to.

Realigned Savings
Article VI, Section 25: the president, the Senate

President, the House Speaker and heads of Constitutional Commissions are authorized to "augment any item in their in the general appropriations law for their respective offices from savings in other items of their respective appropriations. the interpretation of the term Office of the President, which has been interpreted as any agency under the Executive Department.

 DBM released a memorandum explaining the

presidents power to reallocate savings

National Budget Circular 541, DBM was empowered to

centralize unobligated funds to cover additional funding for other existing projects. resulted to the realignment of P75 billion unobligated funds from fiscal year (FY) 2012 and P27 billion from FY 2013.

* government can now withhold parts of allocations of specific agencies for a particular year, tag these funds as savings and realign these funds to favored programs and projects.

310.1 B Special Purpose Funds 139.9 B Unprogrammed Funds 352 B - Debt Servicing 341.5 B Internal Revenue Allotment 200 B Presidents Social Fund 200 B School Buildings

1,343.5 B = TOTAL Presidential Pork

(funds controlled by the president)

1.3435 T
Total Presidential Pork
1.3435 T
Only half of the budget

are detailed

TENDENCIES OF THE PORK BARREL

 Patronage politics who gets pork? Kickbacks/commissions Overpricing textbooks, medicine and
other soft pork

Ghost projects Used to brag projects/as political

propaganda ex. Banners with their

names and pictures
when in fact, the money they used did not come

out of their pockets

Why not redistribute funds listed under the Presidential Pork to agencies that are specialized for these services?
Examples: Calamity fund (7.5B) AFP Modernization program (10.349 B) Risk management program (30 B) Peoples survival fund (500 B) Allocations to local government units (19.7 B) DepEd school building program (1 B)

Proposal of abolition from congressmen:

Refused to abolish Pork barrel so as not to

preempt investigation regarding the Napoles PB scandal

Congressmen were asked to wait for the results Other cases are immediately resolved, why cant they

do it with this urgent issue?

Some congressmen temporarily stopped the

use of pork barrel

What can 10- billion of pork barrel buy?

370 million kilos of well-milled NFA rice (P27/kilo)
55.6 million kilos of pork (P180/kilo) 185 million dozens of chicken eggs (P54/dozen)

823 million 155-gram cans of sardines (P12.15/can) 1.59 million 50-gram packs of instant noodles (P6.30/pack) 4 billion pieces of pandesal (P2.25/piece) 248 million textbooks (P40 per textbook) 8,000 classrooms in two-story buildings (P1.25 million per

classroom) 13,699 classrooms in single-story buildings (P730,000 per classroom) 8 billion pieces of 100-mg aspirin 4.4 billion pieces of 250-mg amoxicillin

Sources (National Budget)

DBM official website (www.dbm.gov.ph/) Karen Boncocan. House deliberates on proposed

P2.3Tr national budget. Philippine Daily Inquirer + notes from EDs: WHAT THE PORK? An Educational Discussion on the Priority Development Assistance Fund (PDAF) Money Talks: A Multi-sectoral Forum on the 2014 National Budget

Sources (Pork Barrel)

Kathrina Alvarez. Aquino gets P150M pork from

Pagcor monthly. Sun Star Lira Dalangin-Fernandez. CHARTER BREACH? Palace use of P75-B unused allocations for unlisted projects raises alarm, InterAksyon.com Jonathan L. Mayuga. Group to Aquino: Abolish SPF. Business mirror RG Cruz. President has P1-trillion pork barrel. ABSCBN News Imagine what P10B can buy: 8,000 classrooms in 2story buildings. Philippine Daily Inquirer