The Proposed FY 2017 Budget BUDGET PHILOSOPHY AND REFORMS of... · BUDGET PHILOSOPHY AND REFORMS ... Issuance of Executive Order No. 2, s. 2016, ... The Proposed FY 2017 Budget. Republic

Republic of the Philippines

Department of Budget and Management 1

BUDGET PHILOSOPHY

AND REFORMS

The Proposed FY 2017 Budget



A Just and Disciplined Fiscal PolicyDeficit will expand to 3.0 percent of GDP over the Medium-Term to support expenditure priorities. Proposed FY 2017 disbursements will reach P2.9 Trillion, nearly twice the disbursements in 2010.

2



1,473.0 1,580.0

1,829.01,998,4 2,019.1

2,414.6

3,001.8

3,350.0

3,825.1

4,208.6

4,634.1

5,163.1

5,702.6

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Debt Burden

General Public Services

Defense

Social Services

Economic Services

Achieving Equitable ProsperitySpending for Social Services will expand from 7.7% Of GDP in 2016 to 9.1% of GDP by 2022. Economic Services will rise from 5.7% of GDP to 6.8% of GDP during this period. This will be possible with the decline of the Debt Burden and Gen Public Services, as a percent of GDP.

3



What you see is what you get (WYSWYG)Government underspending will be addressed through greater efforts in capacity building and public financial management (PFM) reforms.

Streamline process for

release and use of funds

Improve budget planning

and preparation alongside

agency capacity building

Compliance with

Supreme Court

decisions



Fast-tracking ImplementationIn order to overcome the underspending problem, a number of new measures will be undertaken.

24/7 construction work for major

infrastructure projects

Strengthening project monitoring

Simplification of the IRR of the

Government Procurement

Reform Law

Capacitating Cabinet Secretaries

and senior officials



Accountability to the PeopleThe budget will be transparent and participatory. Upholding the people’s right to information will allow them to hold the government accountable.

Issuance of Executive Order

No. 2, s. 2016, implementing the

proposed Freedom of Information Bill

Emphasis on transparency,

accountability, and civil society

participation.



LGUs as Able Partners in DevelopmentLocal Government Units (LGUs) will be strengthened in order to respond immediately and effectively to problems and deliver basic services and their mandates.

Capacity building for LGUs on

generating resources and delivering

basic services

Additional support to LGUs based

on implementation of higher good

governance standards



Governance and Budget ReformsReforms will be pursued to restore public trust in the government.

Budget Reform Act

Government Rightsizing

MUP Compensation and

Pension Reform



AGGREGATES AND

KEY DIMENSIONS

The Proposed FY 2017 Budget



2017 Budget Higher Than 2016

20162017

(Proposed)Growth

2016-2017

3,001.8 3,350.0 11.6%

IN BILLION PESOS



Top 10 Executive Departments

51.9%OF THE TOTAL

BUDGET FOR FY 2017

PHP 1,738.0BILLION 1. DEPED

P567.6 B16.9% Share

2. DPWH

P458.6 B13.7% Share

3. DILGP150.1 B

4.5%

7. DOTrP55.5 B

1.7%

5. DNDP134.5 B

4.0%

6. DSWDP129.9 B

3.9%

4. DOHP144.3 B

4.3%

9. DENRP29.4B

0.9%

10. DOFP23.0 B

0.7%

8. DAP45.3 B

1.4%



AMT RANK AMT RANK AMT %

DepEd 433.4 1 567.6 1 134.2 31.0%

DPWH 397.1 2 458.6 2 61.5 15.5%

DILG 125.4 3 150.1 3 24.7 19.7%

DOH 125.0 4 144.3 4 19.3 15.5%

DND 117.7 5 134.5 5 16.8 14.3%

DSWD 110.9 6 129.9 6 19.0 17.1%

DOTr 44.3 8 55.5 7 11.2 25.2%

DA 48.9 7 45.3 8 (3.7) -7.5%

DENR 22.3 9 29.4 9 7.1 31.9%

DOF 20.2 10 23.0 10 2.7 13.6%

TOTAL 1,445.2 1,738.0 292.8 20.3%

DEP'T2016 GAA 2017 NEP GROWTH

Top 10 Executive Departments



FY 2017 NG Budget, By Expense Class

Personnel

ServicesP997.0 billion, 29.8%

Maintenance

ExpendituresP534.5 billion, 16.0%

Debt BurdenP351.6 billion, 10.5%

Allocation to LGUs*P554.9 billion, 16.6%

Support to

GOCCsP131.5 billion, 3.9%

Infrastructure

and other Capital OutlaysP780.6 billion, 23.3%

Php3,350BILLION

*Includes other transfers to LGUs



NG Budget, By Sector

28%

37%

4%

17%

14%28%

40%

4%

17%

11%

Economic Services Social ServicesDefense General Public ServicesDebt Burden

2016 2017


Department of Budget and Management 15Republic of the Philippines


LGU Empowerment

1/ GAA levels

Particulars

Allotment to LGUs Php421.44 B Php485.83 B Php554.86 B

Internal Revenue Allotment Php389.86 B Php428.62 B Php486.89 B

Special Shares Php26.11 B Php35.92 B Php30.97 B

BODBF Php0.05 B Php0.05 B Php0.05 B

LGSF Php3.03 B Php19.08 B Php34.62 B

LGUs in the Proceeds of Fire Code Fees Php0.20 B Php0.20 B PHP 0.20 B

MMDA Php2.19 B Php1.96 B PHP 2.13 B

2016 20172015 1/

15




Budget Level By RegionIN THOUSAND PESOS, UNLESS STATED OTHERWISE

2016 2017

Amount Percent

Total Regionalized Budget 1,769.3 2,221.9 452.6 104.1 58.9 66.3

NCR 445.7 519.3 73.6 16.5 14.8 15.5

LUZON 628.3 782.2 153.9 24.5 20.9 23.4

Region I 79.0 98.1 19.1 24.2 2.6 2.9

CAR 44.0 56.4 12.4 28.2 1.5 1.7

Region II 64.2 80.4 16.2 25.2 2.1 2.4

Region III 140.9 167.4 26.4 18.7 4.7 5.0

Region IV 203.7 259.1 55.5 27.2 6.8 7.7

Region V 96.5 120.8 24.3 25.2 3.2 3.6

VISAYAS 298.3 374.8 76.5 25.6 9.9 11.2

Region VI 109.3 139.0 29.6 27.1 3.6 4.1

Region VII 100.9 123.3 22.3 22.1 3.4 3.7

Region VIII 88.1 112.6 24.5 27.9 2.9 3.4

MINDANAO 396.9 545.5 148.6 37.4 13.2 16.3

Region IX 69.9 90.3 20.4 29.2 2.3 2.7

Region X 84.0 116.9 32.9 39.2 2.8 3.5

Region XI 69.9 108.3 38.4 54.8 2.3 3.2

Region XII 65.8 97.2 31.4 47.6 2.2 2.9

CARAGA 53.5 76.7 23.2 43.4 1.8 2.3

ARMM 53.7 56.0 2.3 4.3 1.8 1.7

Non-Regionalized 1,232.5 1,128.1 (104.4) (8.5) 41.1 33.7

Nationwide 747.7 718.1 (29.5) (4.0) 24.9 21.4

Central Office 484.8 409.9 (74.9) (15.4) 16.2 12.2

TOTAL 3,001.8 3,350.0 348.2 11.6 100.0 100.0

GAA As Adjusted

PARTICULARS

Increase/(Decrease)

2016-2017

Share to Budget

2016 2017




2013 2014 20152016- 1st Sem

(Preliminary)

Expenditure Program 2,005.900 2,264.628 2,606.000 3,001.800

Allotments Releases 2,001.240 2,220.432 2,573.296 2,618.378

Balance 4.660 44.196 32.704 383.422

% of Allotment Releases vs. Program 99.8% 98.0% 98.7% 87.2%

Allotments (inclusive of previous year's

unobligated allotments) 2,146.998 2,294.847 2,767.752 2,825.115

Obligations 1,998.605 2,019.062 2,414.640 1,219.567

Unobligated Allotments 148.393 275.785 353.112 1,605.548

% of Obligations vs. Allotments 93.1% 88.0% 87.2% 43.2%

Disbursement Program (DBCC Approved Program) 1,983.884 2,284.297 2,558.915 2,645.587

Disbursements (Cash Operations Report of the BTr) 1,880.155 1,981.619 2,230.645 1,221.271

Balance 103.729 302.678 328.270 1,424.316

% of Disbursements vs. Program 94.8% 86.7% 87.2% 46.2%

amounts in billionsPARTICULARS

NATIONAL GOVERNMENT BUDGET PERFORMANCE

2013-2016

Documents

The Proposed FY 2017 Budget BUDGET PHILOSOPHY AND REFORMS of... · BUDGET PHILOSOPHY AND REFORMS ... Issuance of Executive Order No. 2, s. 2016, ... The Proposed FY 2017 Budget. Republic