DEPARTMENT OF BUDGET AND MANAGEMENT

MALACAANG,MANILA

REPUBLIC OF THE PHILIPPINES

PaggugolnaMatuwid:DiretsosaTao

Highlightsofthe2012ResultsFocusedBudget

I. Budgetlevel.Theproposed2012budgetamountstoP1.816trillion,10.4percenthigher thanthisyearsbudgetofP1.645trillion.
Inbillion NewGeneralAppropriations AutomaticAppropriations TOTAL P1,092 P723.6 P1,816

New General Appropriations of P1.254 trillion is proposed which includes the P1.09 trillion of programmed appropriations and P162 billion of unprogrammed or standby appropriations should additional or new revenues and project loans come in. The proposednewappropriationsis25.4%morethanthisyearslevel. II. Budgetbreakdown Bysector.InlinewiththeprioritiesoftheAdministration,theSocialServicessectorwill continuetoreceivethebulkofthebudgetpiewithP575.8billion,or31.7%ofthetotal budget.ItisfollowedbytheEconomicServicessectorwithP438.9billion(24.2%)which showsthelargestgrowthof21.3%.DebtburdencomesnextwithP356.1billion(19.6%); GeneralPublicServices,P332.1billion(18.3%);andDefense,P113.1billion(6.2%).Asa shareofthebudget,thedebtburdenis3percentagepointslowerthanthisyear.
Byexpenseclass.For2012,CapitalOutlayswillbeprovidedsomeP328.6billion,25.4%higher thanthisyearsP262.0billion.Ofwhich,77.7%orP255.2billionisforInfrastructureandOther CapitalOutlays,anincreaseof33.1%fromitscurrentlevelofP191.7billion. Theinfrastructure

programamountstoP182.2billion,25.6%higherthanthisyearandrepresentsahigher 1.6%ofGDPcomparedtothisyears1.4%. CurrentOperatingExpenditures(COE)willgetP1.464trillion,7%higherthanthisyears allocation of P1.368 trillion. Of the said amount, P268.1 billion will be set aside for MaintenanceandOtherOperatingExpenditures(MOOE);whileP593.3billionwillbefor PersonalServices(PS). Byrecipiententity.AllocationstoLocalGovernmentUnits(ALGUs)willreceiveP291.6 billion; of which, internal revenue allotment amounts to P273.3 billion. Allocation to GOCCswillamounttoP20.2billion:anincreaseof87.8%,fromP10.8billionthisyearto provide larger support for the rice self sufficiency related undertakings, for electrificationandforhousing. 1

 TopDepartments TheDepartmentofEducationwillcontinuetogetthebiggestallocation:P238.8billion, which is 15.2% higher than the 2011 budget of P207.3 billion (inclusive of School Building Fund). This reflects the Administrations priority commitment to meet its educationforall(EFA)targetby2016. The Department of Public Works and Highways (DPWH) is second with P125.5 billion, followedbytheDepartmentofNationalDefense(DND),P107.9billion;Departmentof theInteriorandLocalGovernment(DILG),P101.4billion;andDepartmentofAgriculture (DA),P54.1billion.Thelatterwillgetthebiggestbudgetincrement(53.6%)tosupport variousinitiativesgearedtowardsriceandfoodselfsufficiency. III. Revenues. The FY 2012 budget will be supported by a revenue collection program of P1.569trillion.Totalrevenuesprojectedfornextyearishigherby11.1percentthanthis yearsP1.411trillion.Itisequivalentto14.2percentofGrossDomesticProduct(GDP). The expected increase is attributed to the sustained tax administration efforts of the BureauofInternalRevenue(BIR)andtheBureauofCustoms(BOC). (in billion pesos) 2010 2011 2012 GrowthRates Particulars 2011-2012 3 Actual Program Proposed 2002200 Revenues 1,207.9 1,411.3 1,568.5 11.1 %ofGDP 13.4 14.2 14.2 Tax 1,093.6 1,273.2 1,445.5 13.5 NonTax 114.3 138.1 123.0 (10.9) 1,711.3 1,854.5 8.4 Disbursements 1,522.4 %ofGDP 16.9 17.2 16.8 CurrentOperatingExp. 1,229.8 1,368.7 1,468.4 7.3 o.w.InterestPayments 294.2 321.6 333.1 3.6 CapitalOutlays 283.3 319.6 363.1 13.6 NetLending 9.3 23.0 23.0 (286.0) (4.7) Surplus/(Deficit) (314.5) (300.0) %ofGDP (3.5) (3.0) (2.6) IV. 2012ExpenditureAllocationFramework Supportforthe5PriorityAreasofthePresidentsSocialContract 1. Transparent,accountableandparticipatorygovernance 2. Povertyreductionandempowermentofthepoorandvulnerable 3. Rapid,inclusiveandsustainedeconomicgrowth 4. Justandlastingpeaceandtheruleoflaw 5. Integrityoftheenvironmentandclimatechangeadaptationandmitigation 2

 Reformsforenhancedtransparencyandaccountability SustaineduseofZBBtoweedoutwasteandredundancies Fleshedoutoftabusedlumpsumfundsbydrillingdownintoregionalandsub regionalallocationsanunprecedentedP150.5billion Tightened the use of savings to avoid anomalous practices such as the conversionsandabuseintheuseofsavingsfromunfilledpositions. Widenedspacesforcitizenparticipationinbudgetpreparation.TheDepEd,DOH, DSWD,DPWH,DAandDARaswellastheNFAandtheNHMFCweretaskedto partnerwithCSOsinthecraftingoftheiragencybudgetsfor2012. UseofInformationTechnologytopromotetransparencyandaccountability a) Public disclosure of agency budgets through the Internet: Posting of a TransparencySealinagencywebsites b) Digitizationofgovernmenttransactions V. MajorAllocations 1. Anticorruption,transparent,accountableandparticipatorygovernance
P357.3 million for the Sandiganbayan to enable it to pursue the closure of symbolicandlargescalecasesofcorruption; P13 million for the Revenue Integrity Protection Service (RIPSDOF) to help intensifyeffortsinfilinggraftchargeswiththeOfficeoftheOmbudsman; P754millionforthePerformanceChallengeFundthatwillbeusedtoaugment theresourcesof516LGUswhowillattaintheSealofGoodHousekeeping; P2.9 billion for major ICT governance projects, e.g.: the OnLine Xray Imaging System and Petroleum Inventory System of BOC (P500 million); Government Integrated Financial Management Information System (P978 million); and Tax AdministrationComputerizationProject(TACP)ofBIR(P1.1billion). P8.0billiontotheCOMELECforautomatedelectionstoensurecleanandhonest midtermelections,inclusiveofP162.3millionforitsunfilledpositions;andP123 million to support activities for the Resumption of the System of Continuing Registration. P3.6billiontoDENRtosupporttheDENRsCadastralSurveyProjectwithatarget of2.1millionhectaresoflandthroughtheuseofadvancedmappingtechnology

2. Povertyreductionandempowermentofthepoorandvulnerable Providingalifelinetothepoor 1) P39.5 billion for the Pantawid Pamilyang Pilipino Program (4Ps) to expand beneficiariesto3millionindigenthouseholdsfrom2.3millionin2011. 2)P1.2billionforSocialPensionforIndigentSeniorFilipinoCitizenstobenefit 198,370indigentseniorcitizensaged75yearsandabovewhowillbegiven P500 each monthly as social pension. The proposed amount is 38% higher thanthe2011levelofP871millionwhichcovers138,960beneficiaries.

 3) P2.9 billion for the DSWDs Supplemental Feeding Program to help provide nutritiousmealsto1.6millionchildrenenrolledindaycarecenters. Buildingcapacitiesthrougheducation 1) P1.9 billion for the universal kindergarten program to benefit some 2.3 millionfiveyearoldchildreninpreschool. 2) Provisionstoaddressgapsinbasiceducation a) P2.9billionforthecreationof13,000teacherpositions(exclusiveofP8.9 billionlodgedundertheMPBFforunfilledteachingpositions). b) P18.4 billion for basic educational facilities: construction and rehabilitation of 45,231 classrooms, purchase of 2.53 million desks and chairs,andconstructionof25,667waterandsanitationfacilities. c) P2.6billionfortheprocurementof45.5milliontextbooksandmanuals. 3) Provisionsforscholarships a) P6.3 billion under DepEds Government Assistance to Students and TeachersinPrivateEducation(GASTPE).Theproposedamountisbigger byP456millionfromthisyearsbudgetofP5.8billiontoexpandnumber ofbeneficiariesto1milliongranteesfrom757,401in2011.TheGASTPE does not only provide scholarship opportunities to deserving students butitalsohelpsdecongestpublicschools. b) P2.1billiontobenefitscholarsinsciencerelatededucation.Ofthesaid amountP1.3billionwillgototheDOSTsScienceEducationInstitute(SEI) to support more than 10,000 scholars at the undergraduate and graduatelevels.TheremainingamountwillbeforthePhilippineScience HighSchooltosupport4,334scholarsin2012. c) P681 million to finance CHEDs Student Financial Assistance Programs (STUFAPs) which covers some 47,330 grantees. All slots allotted for STUFAPsareforprioritycoursesthatareindemandinthelabormarket. d) P700millionforthe30,000slotsthatwillbeofferedbyTESDAunderits trainingforwork scholarship program. To help ensure employability of graduates under the program, training courses will be based on key employmentgeneratorsidentifiedbyDOLE. 4) Supportforhighereducation a) P25.8billionfor110SUCstosupportqualitytertiaryeducation. b) P500 million has been allotted under CHED to make sure that the curricula of SUCs are focused on the priority areas for economic development (business process outsourcing, tourism, agriculture and fisheries,andinfrastructuredevelopment). Advancingpublichealth: 1) P49.9billionareallottedforthehealthsector.Around89%orP44.4billionof this will go to DOH for undertakings intended to achieve the MDGs on health. 2) P5.1 billion will be used for the Health Facilities Enhancement Program, to upgradehealthcarefacilities,particularlyformaternalhealthcare.

 3) P1.9billionfortheExpandedProgramonImmunizationtohelpreduceinfant mortalityandmorbidity,totarget2.6millionchildren,aged015months. 4) P2.5billiontosupporttheimplementationoffamilyhealthandresponsible parenting, which includes the vaccination of 1.2 million senior citizens againstinfluenzaandpneumonia.Fundingforthisprogramincreasedbyas muchas242%,fromits2011levelofP731million. 5) P1.7billiontosustaintheDoctortotheBarriosprogramoftheDOH.The fundswillbeusedtodeploy200doctors,1,021midwives,and12,000nurses inregionalhealthunits,barangayhealthstations,andhospitals. 6) P12.0 billion to fund payments for premium subsidies under the National Health Insurance Program. The amount has been increased by P8.5 billion from P3.5 billion in 2011 to cover all 5.2 million indigent households identifiedintheNationalHouseholdTargetingSystem(NHTS). Affordablehousing: 1) P5.6 billion for resettlement of families residing along danger areas and familiesaffectedbycalamities,andslumupgrading.Ofwhich,P500millionis inresponsetotheclamorofCSOsforadditionalresettlementprojects. 2) P500 million under the National Home Mortgage Finance Corporation (NHMFC)tofinanceitsCommunityMortgageProgram.TheProgram,which aims to help organize community home associations of landless citizens obtain tenure and ownership of the land they are presently occupying, is expected to assist 25,000 beneficiary members next year, higher than the 20,000beneficiariesthisyear. 3. Rapid,InclusiveandSustainedEconomicGrowth Infrastructure for development infrastructure projects that support expansionandjobcreationinpriorityeconomicsectorsfordevelopment.
MajorProgram/Projects Assetpreservation (rehabandmaintenance) Newroadsandbridges (construction) Roadupgrading (graveltopaved) Implementing Agency DPWH DPWH DPWH 2011 (inbillionpesos) 26.5 31.3 13.1 2012 (inbillionpesos) 29.7 38.5 15.9 Increase/ (Decrease) 11.8 23.1 21.4 2012Targets

6,229km(roads) 15,292lm(bridges) 809km

Infrastructure for tourism infrastructure projects that cater to the developmentandconstructionoftourismfacilitiesandamenities. 1) P1.1billionbudgetofDPWHtoconstructaccessroadstoairportsandto rollon/rolloff (RORO) ports leading to various tourist destinations, particularly Boracay, Palawan, Bohol, Bicol, Cebu, Mindanao and NorthernandCentralLuzon. 2) P8.1 billion of DPWH to build 1,071 km of access roads to tourist destinations:awhopping351.4%increasefromthisyearsP1.8billion.

 3) Airport projects of DOTC, particularly the New Bohol (Panglao) InternationalAirportDevelopment(P1.2billion)andthePuertoPrincesa AirportDevelopment(P1.0billion) Strategic support for PublicPrivate Partnerships (PPP), P22.1 billion For therightofway,infrastructureandotherrelatedsupport:P3.0billionfor DPWH,P2.5billionforDA,P8.6billionforDOTC,P3billionforDOHandP5 billionforDepEd. Nationalproductivityimprovement 1) P2.7 billion in the budget of the DOST for the generation of new knowledge and technologies, their diffusion and transfer, and developmentofS&ThumanresourcesforS&T. 2) Included above is P392 million for the adoption of new technologies to assist small and medium scale enterprises, 30.6 percent more than this yearsallocation. 1) P24.8billionfortheconstructionandrehabilitationofirrigationsystems that will service a total of 214,055 hectares that will benefit 142,767 households,anincreasefromthisyears112,349households. 2) AgriPinoyBannerPrograms:
MajorProgram/Projects NationalRiceProgram NationalCornProgram HighValueCropsProgram NationalFisheriesProgram NationalLivestockProgram 2011 (inpesos) 4.3billion 484million 927million 1.8billion 682million 2012 (inpesos) 6.2billion 951million 1.3billion 1.9billion 1.0billion Increase/ (Decrease) 43.20% 96.50% 44.20% 6.00% 50.20% 2012Targets 19.2MMT 7.6MMT 5.6MMT Hogs2.0MMT; Chickens1.5MMT

Foodselfsufficiency

WelfareofOverseasFilipinoworkers 1) P2billion Reintegration Program to provide returning OFWs with a sustainablebusinessthatwillbeimplementedbytheOverseasWorkers WelfareAdministration(OWWA); 2) P50 million from the 2012 budget of the Department of Labor and Employment (DOLE) for the reintegration of OFWs through livelihood programsandlocalwageemployment;and 3) P30 million out of the Department of Foreign Affairs (DFA as Legal AssistanceFundtopayforlegalservicesfordistressedmigrantworkers and overseas Filipinos. This will also ensure that the Legal Assistance FundstillremainsatP100millioninthecomingyearasmandatedbylaw;

 4. Justandlastingpeaceandtheruleoflaw P1.9 billion to the Payapa at Masaganang Pamayanan (PAMANA) to strengthen governments efforts towards building peaceful communities in 1,921conflictaffectedbarangaysin171municipalitiesin34provinces.The P1.9billionPAMANAbudgetissharedamongOPAPP,DSWD,DARandDILG. P100millionfortheGovernmentPeaceNegotiatingPanelstopursueafinal negotiatedsettlementofallarmedconflictswiththeMILF&CPPNPANDF Protectingnationalterritoryandboundaries 1) P107.8billiontoDND,P5billionofwhichforAFPModernizationProgram 2) P7.3billiontoPCGandPNtosecuretheMalampayaGasProject 3) P35.4billiontoPAtoboostitsinternaloperations Strengtheningtheruleoflaw 1) P78.6billiontoPNP,ofwhichP57.7billionwillbeusedtoenhancePNP capabilitiesincrimepreventionandsuppressionservices. 2) P4.9billionfortheimplementationoftheJailManagementandPenology Program of the BJMP that will improve jail security, upgrade the living conditionsof,andintensifydevelopmentprogramsfor,inmates. 3) DOJ:P12.5millionfortheinvestigationofviolatorsoftradecompetition laws;P9.7billionforvariousprogramsthatwillfasttrackthepassingof final resolutions; P174.7 million to Witness Protection Services; P50 million to intensify government efforts against human trafficking; P5 millionforthecreationoftheOfficeofCybercrimes;P400millionforthe constructionofa12storeyManilaCityHallofJustice Institutinganefficientandimpartialjusticesystem 1) P168 million for the salary differentials of 1,465 judges to raise their salariesaccordingtotheSSLIII 2) P2billionunderMPBFforfillingupvacantpositionsintheJudiciary 3) P15.7billiontotheJudiciary,anincreasefromitsP14.3billionin2011, toboostitsEnhancedJusticeonWheelsProgramoftheSupremeCourt. 5. IntegrityoftheEnvironmentandClimateChangeMitigationandAdaptation Preparedness 1) P7.5billionfortheCalamityFund(50%higherthanP5.0billionfor2011); 2) P367millionforPAGASAautomation(100.5%increasefrom2011); 3) P12.3 billion under the budget of DPWH for flood control projects (to construct8,000linealmetersoffloodbarriers); 4) P485 million for the Laguna de Bay Institutional Strengthening and CommunityParticipationProjectcovering20LGUs; 5) P173millionforthePasigRiverRehabilitationproject;and

 6) P793 million for Solid Waste and Disposal Management Project of the MetroManilaDevelopmentAuthoritytoprovidedisposalservicefor17 LGUsinMetroManilaaswellastechnicalassistancetootherLGUs. Sustainability 1) P2.7 billion under the DENR budget for the planting of seedlings to 214,900 hectares of land; in line with the National Greening Program (NGP) of the DENR to plant 1.5 billion seedlings by 2016. Included also under NGP are P761 million under DAs budget to produce 36 million fruittreeseedlings,P9millionforDepEdtoproduce20millionplanting bagsand200Information,EducationandCommunication(IEC)materials. 2) P857 million for the Forest Protection Program to hire 600 extension workers and 3,113 Bantay Gubat volunteers to monitor and patrol the 4.1millionhectaresofuntenuredforestlands. 3) P711.0 million for the Philippine Energy and Efficiency Program of the DepartmentofEnergytoretrofit120governmentbuildingswithenergy efficientlightingandtoinstallLEDtrafficlampsin88trafficintersections.