Budget Execution This is where the peoples money is actually spent.

As soon as the GAA is enacted, the government can implement its priority programs and projects.

What are the Release Guidelines and Program? What are Budget Execution Documents? What is Allotment and Cash Release Programming? What is Allotment Release? What are Incurring Obligations? What does the GAA as Allotment Release mean? What are Cash Allocations? What is Disbursement?

1. elease Guidelines and !rogram The budget execution hase begins !ith DB"#s issuance o$ guidelines on the release and utili%ation o$ $unds& ". Budget Execution #ocuments $BE#s% Agencies are re'uired to submit their BEDs at the start o$ budget execution& These documents outline agenc( lans and er$ormance targets& These BEDs include the h(sical and $inancial lan) monthl( cash rogram) estimate o$ monthl( income) and list o$ obligations that are not (et due and demandable& &. Allotment and 'ash elease !rogramming

To ensure that releases $it the a ro*ed +iscal Program) the DB" re ares an Allotment Release Program ,ARP- to set a limit $or allotments issued to an agenc( and on the aggregate& The ARP o$ each agenc( corres onds to the total amount o$ the agenc(.s eci$ic budget under the GAA) as !ell as Automatic A ro riations& A Cash Release Program ,CRP- is also $ormulated alongside that to set a guide $or disbursement le*els $or the (ear and $or e*er( month and 'uarter& (. Allotment elease

Allotments) !hich authori%e an agenc( to enter into an obligation) are either released b( DB" to all agencies com rehensi*el( through the Agenc( Budget "atrix ,AB"- and indi*iduall( *ia / ecial Allotment Release Orders ,/AROs-&

AB). This document disaggregates all rogrammed a ro riations $or each agenc( into t!o main ex enditure categories0 1not needing clearance2 and 1needing clearance&2 The AB" is the com rehensi*e allotment release document $or a ro riations !hich do not need clearance) or those !hich ha*e alread( been itemi%ed and $leshed out in the GAA& *A +. Items identi$ied as 1needing clearance2 are those !hich re'uire the a ro*al o$ the DB" or the President) as the case ma( be ,$or instance) lum sum $unds and con$idential and intelligence $unds-& +or such items) an agenc( needs to submit a / ecial Budget Re'uest to the DB" !ith su orting documents& Once a ro*ed) a /ARO is issued&

,. -ncurring +.ligations In im lementing rograms) acti*ities and ro3ects) agencies incur liabilities on behal$ o$ the go*ernment& Obligations are liabilities legall( incurred) !hich the go*ernment !ill a( $or& There are *arious !a(s that an agenc( 1obligates02 $or exam le) !hen it hires sta$$ ,an obligation to a( salaries-) recei*es billings $or the use o$ utilities) or enters into a contract !ith an entit( $or the su l( o$ goods or ser*ices&

The GAA as Allotment

elease

The A'uino Administration lans to design the annual General A ro riations Act as the com rehensi*e allotment release document itsel$& This is being ursued in order to signi$icantl( s eed.u the rocess o$ releasing the Budget and im lementing the rograms and ro3ects that it $unds&The 4567 8ational Budget) currentl( being re ared) is being designed in such !a(& This entails the disaggregation o$ all budget items into $ull detail) as !ell as the elimination o$ all lum .sum $unds) sa*e $or a $e! exce tions such as the Calamit( +und& In other !ords) this re$orm signi$icantl( reduces the need $or /AROs&

/. 'ash Allocation To authori%e an agenc( to a( the obligations it incurs) DB" issues a disbursement authorit(& "ost o$ the time) it ta9es the $orm o$ a 8otice o$ Cash Allocation ,8CA-: and in

s ecial cases) the 8on.Cash A*ailment Authorit( ,8CAA- and Cash Disbursement Ceiling ,CDC-&

0'A. This is a cash authorit( issued eriodicall( b( the DB" to the o erating units o$ agencies to co*er their cash re'uirements& The 8CA s eci$ies the maximum amount o$ cash that can be !ithdra!n $rom a go*ernment ser*icing ban9 $or the eriod indicated& The release o$ 8CAs b( DB" is based on an agenc(#s submission o$ its "onthl( Cash Program and other re'uired documents& +thers #is.ursement Authorities. In contrast to 8CAs) 8CAAs are issued to authori%e non.cash disbursements& CDCs are mean!hile issued to de artments !ith o*erseas o erations) allo!ing them to use income collected b( their $oreign osts $or their o erating re'uirements&

1. #is.ursement This is the $inal ste o$ the budget execution hase) !here go*ernment monies are actuall( s ent& The "odi$ied Disbursement /cheme is mostl( used) !here disbursements o$ national go*ernment agencies chargeable against the Treasur( are made through go*ernment ser*icing ban9s) such as the ;and Ban9 o$ the Phili ines& The budget rocess) o$ course) does not end !hen go*ernment agencies s end ublic $unds0 each and e*er( eso must be accounted $or to ensure that is used ro erl() contributing to the achie*ement o$ socio.economic goals& Budget ng Ba(an < Budget 656 < Budget ;egislation Budget 2egislation Alternatively called the 3.udget authori4ation phase,5 this starts upon the 6ouse *pea7ers receipt o8 the !residents Budget and ends with the !residents enactment o8 the General Appropriations Act.

What are =ouse Deliberations? What are /enate Deliberations? What are Bicameral Deliberations? What is Rati$ication and Enrollment? What is the >eto "essage? What is Enactment?

What are Reenacted Budgets?

1. 6ouse #eli.erations The =ouse o$ Re resentati*es) in lenar() assigns the President#s Budget to the =ouse A ro riations Committee& The Committee and its /ub.Committees then schedule and conduct hearings on the budgets o$ the de artments and agencies and scrutini%e their res ecti*e rograms and ro3ects& It then cra$ts the General A ro riations Bill ,GAB-& In lenar( session) the GAB is s onsored) resented and de$ended b( the A ro riations Committee and /ub.Committee Chairmen& As in all other la!s) the GAB is a ro*ed on /econd and Third Reading be$ore transmission to the /enate& ,8ote0 In the +irst Reading) the President#s Budget is assigned to the A ro riations Committee&". *enate #eli.erations As in the =ouse rocess) the /enate conducts its o!n committee hearings and lenar( deliberations on the GAB& Budget deliberations in the /enate $ormall( start a$ter the =ouse o$ Re resentati*es transmits the GAB& +or ex edienc() ho!e*er) the /enate +inance Committee and /ub.Committees usuall( start hearings on the GAB e*en as =ouse deliberations are ongoing& The Committee submits its ro osed amendments to the GAB to lenar( onl( a$ter it has been $ormall( transmitted b( the =ouse& &. Bicameral #eli.erations Once both =ouses o$ Congress ha*e $inished their deliberations) the( !ill each constitute a anel to the Bicameral Con$erence Committee& This committee !ill then discuss and harmoni%e the con$licting ro*isions o$ the =ouse and /enate >ersions o$ the GAB& A =armoni%ed >ersion o$ the GAB is thus roduced& (. ati8ication and Enrollment The =armoni%ed or 1Bicam2 >ersion is then submitted to both =ouses) !hich !ill then *ote to rati$( the $inal GAB $or submission to the President& Once submitted to the President $or his a ro*al) the GAB is considered enrolled&

,. The 9eto )essage The President and DB" then re*ie! the GAB and re are a >eto "essage) !here budget items sub3ected to direct *eto or conditional im lementation are identi$ied) and !here general obser*ations are made& ?nder the Constitution) the GAB is the onl( legislati*e measure !here the President can im ose a line.*eto ,in all other cases) a la! is either a ro*ed or *etoed in $ull-& /. Enactment When the GAA is not enacted be$ore the $iscal (ear starts) the re*ious (ear#s GAA is automaticall( reenacted& This means that agenc( budgets $or rograms) acti*ities and ro3ects remain the same& +unding $or rograms or ro3ects that ha*e alread( been terminated is realigned $or other ex enditures& Because reenactments are tedious and rone to abuse) the A'uino Administration@!ith the su ort o$ Congress@has committed to ensure the timel( enactment o$ a ne! GAA e*er( (ear&

eenacted Budgets When the GAA is not enacted be$ore the $iscal (ear starts) the re*ious (ear#s GAA is automaticall( reenacted& This means that agenc( budgets $or rograms) acti*ities and ro3ects remain the same& +unding $or rograms or ro3ects that ha*e alread( been terminated is realigned $or other ex enditures& Because reenactments are tedious and rone to abuse) the A'uino Administration@!ith the su ort o$ Congress@has committed to ensure the timel( enactment o$ a ne! GAA e

Transparent, Accounta.le and !articipatory Governance To institutionali4e open, transparent, accounta.le, and inclusive governance.

Good Go*ernance and Anti.Corru tion Cluster Plan 4564.456A "andator( +iscal Trans arenc( ICT $or Better Public Resource "anagement /trengthening Anti.Corru tion E$$orts

Ensuring the Integrit( o$ Elections Energi%ing ;ocal Go*ernance

Good Governance and Anti:'orruption 'luster +or President A'uino) the +ili ino eo le#s mandate to him is clear0 to trans$orm go*ernment so it u holds the highest standards o$ integrit( and addresses the eo le#s most ressing needs& This is !h( he continues to be true to his cam aign romise o$ 9ung !alang corru t) !alang mahira & =e belie*es that $or the countr( to mo*e $or!ard) the go*ernment needs to regain the eo le#s trust b( $inall( utting closure to decades o$ corru tion and abuse o$ o!er& Public institutions also ha*e to be strengthened in order to e$$ecti*el( u li$t the li*es o$ the eo le) to rein*igorate the econom() and to establish an en*ironment o$ rule o$ la! and ecological sustainabilit(& "oreo*er) he belie*es that the $ruits o$ good go*ernance must be directl() immediatel( and substantiall( $elt b( the eo le&The 4564 8ational Budget in*ests in immediate and long.term re$orms that see9 to trans$orm go*ernment into one that trul( ser*es its eo le& "a3or rograms and ro3ects !ill be im lemented to strengthen go*ernance in areas such as anti.red ta e: re*enue administration re$orm: cascading re$orms to local go*ernments: and electronic go*ernance& /e*eral in$ormation and communication technolog( ,ICT- ro3ects !ill im lemented this (ear to enhance the trans arenc( and accountabilit( in go*ernance and encourage eo le#s artici ation& )andatory ;iscal Transparency To sustain the ne!l(.established tradition o$ $iscal trans arenc() the 4564 8ational Budget contains a general ro*ision ,/ection B6- that re'uires agencies to disclose in$ormation on their mandates and the $unctions and designations o$ their 9e( o$$icials: their a ro*ed budgets and corres onding targets: $unding) 9e( bene$iciaries and status o$ rograms and ro3ects: and annual accom lishment and accountabilit( re orts) among others& The 4564 Budget also contains s ecial ro*isions that re'uire the disclosure o$ additional in$ormation& -'T 8or Better !u.lic esource )anagement

Through the 4564 Budget) the A'uino go*ernment !ill harness in$ormation and communication technologies ,ICT- to enhance trans arenc( and accountabilit( in go*erning ublic resources&

Government -ntegrated ;inancial )anagement -n8ormation *ystem $G-;)-*% A 9e( com onent o$ Phili ine +inancial "anagement Re$orm Roadma 4566.456C) GI+"I/ aims to automate all routine $inancial rocesses o$ national go*ernment) $rom budgeting to treasur( o erations) to accounting and audit& The 4564 Budget ro*ides PBDE&C million to de*elo the $irst hase o$ GI+"I/) consisting o$ the integration o$ the $inancial management s(stems o$ the Commission on Audit) De artment o$ +inance.Bureau o$ Treasur( and De artment o$ Budget and "anagement&

Tax and 'ustoms Administration To hel the go*ernment increase tax collection) the 4564 Budget gi*es P7&4B billion to the BIR $or its Integrated Tax Com liance and En$orcement E$$orts that !ill hel it reach its 4564 collection target o$ P6&5C trillion& +urthermore) P6&5E billion is allotted $or its Tax Administration Com uteri%ation Pro3ect ,TACP-& With a com lete tax a(er database and ex anded third art( in$ormation) the BIR can $urther im ro*e tax collection e$$orts !hile enhancing its tax a(er ser*ice& In addition) PC55 million !ill go to BOC $or ICT s(stems that !ill hel reduce customs $raud and smuggling) such as the On.;ine F.ra( Imaging /(stem and the Petroleum In*entor( /(stem& The On.;ine F.ra( Imaging /(stem) to be used $or ins ecting incoming cargo) !ill be iloted in the Port o$ "anila and the "anila International Container Port& The Petroleum In*entor( /(stem ro3ect !ill hel accuratel( monitor the mo*ement and in*entor( o$ etroleum im orts) !hich is the source o$ about 6D ercent o$ BOC#s re*enues&

'adastral *urvey The 4564 Budget also sets aside P7&A billion $or the Cadastral /ur*e( o$ the De artment o$ En*ironment and 8atural Resources ,DE8R- to co*er A&6 million hectares in 4564) $rom 6&7 million hectares in 4566& This ro3ect !ill $ast.trac9 the establishment o$ Phili ine metes and bounds) clean the land area database o$ DE8R $or more accurate land area in$ormation) and establish accurac( in the determination o$ local go*ernment shares in national re*enues) articularl( the Internal Re*enue Allocation ,IRA-& /trengthening Anti.Corru tion E$$orts The A'uino Administration !ill $und e$$orts to ursue high. ro$ile cases o$ gra$t) corru tion and dishonest( among ublic o$$icials and em lo(ees&

Adjudication o8 corruption cases The /andiganba(an#s e$$orts to $ast.trac9 the ad3udication o$ gra$t and corru tion cases against ublic o$$icials and em lo(ees !ill be ro*ided !ith P4CG&44 million& The out ut target $or 4564 is 7)CGA cases handled and GBD cases dis osed0 slightl( higher than the 4566 targets o$ 7)GBE cases handled and GGG cases dis osed&

evenue -ntegrity !rotection *ervice $ -!*% The De artment o$ +inance#s RIP/ is ro*ided !ith P67 million to ex edite the $iling o$ cases on gra$t and corru tion !ith the O$$ice o$ the Ombudsman&

Anti: ed Tape The Ci*il /er*ice Commission ,C/C- is ro*ided !ith P44 million $or the im lementation o$ Anti.Red Ta e Act) including the ins ection o$ agenc( com liance !ith the re'uirement to ost Citi%en#s Charters& Ensuring the -ntegrity o8 Elections To ensure the integrit( o$ the 4567 automated national and local elections) the Commission on Elections ,Comelec- is ro*ided !ith PE billion $or its re arator( acti*ities& In articular) this amount !ill be used $or the lease o$ Precinct Count O tical /can machines) urchase o$ automated ballot a er) as !ell as the resum tion o$ the /(stem o$ Continuing Registration&

Energi4ing 2ocal Governance To encourage local go*ernment units to ado t best ractices in go*ernance) the De artment o$ the Interior and ;ocal Go*ernment ,DI;G- !ill be armed !ith a Per$ormance Challenge +und ,PC+- !orth PDCG million in 4564& This amount !ill be used to augment the resources o$ C6A ;G?s that can attain a 1/eal o$ Good =ouse9ee ing2 in *arious areas o$ good go*ernance&

!overty eduction and Empowerment o8 the !oor and 9ulnera.le To translate the gains 8rom good governance into direct, immediate and su.stantial .ene8its 8or the poor.

/ocial Protection and Wel$are Education =ealthcare A$$ordable =ousing Agrarian Re$orm

The eo le are our countr(#s greatest resource& A health() educated and energi%ed citi%enr( raises the countr(#s chances $or sustainable de*elo ment and ros erit(& The !or9 at hand is urgent0 to reduce o*ert( incidence to 6A&A ercent b( 456C and meet 9e( "illennium De*elo ment Goals ,"DGs-) articularl( in basic education and healthcare& The A'uino Administration#s strateg( to $ighting o*ert( is to em o!er the oor and the marginali%ed segments o$ societ(& This means ro*iding a 1li$e *est2 to those currentl( dro!ning in extreme o*ert( through social rotection inter*entions& At the same time) $ighting o*ert( also means in*esting in eo le#s ca acit( to artici ate meaning$ull( in the econom() access gain$ul li*elihood and im ro*e the 'ualit( o$ their li*es& As a testament to the A'uino Administration#s bias $or the oor) the 4564 8ational Budget in$uses the largest sector allocation@PCAD&B billion or 76 ercent o$ total@into the social ser*ices sector& This is also higher than the re*ious (ear#s budget b( PGA&C billion or E&B6 ercent& This !ill $und rograms) acti*ities and ro3ects that !ere designed to ha*e a direct) immediate and substantial im act in em o!ering the oor& *ocial !rotection and <el8are In light o$ the President#s commitment to reduce o*ert( across the countr() budgetar( allocations $or the go*ernment#s social rotection rograms !ill continue to increase) !ith the total allocation $or the De artment o$ /ocial Wel$are and De*elo ment ,D/WDu b( GD&B ercent to PGE&B billion in 4564&

!antawid !amilyang !ilipino !rogram $(!s% "ost o$ the D/WD#s budget) amounting to P7B&G billion) !ill su ort the Panta!id Pamil(ang Pili ino Program ,GPs-) to co*er an estimated 7 million indigent household.

bene$iciaries) $rom 4&7 million households in 4566& The A'uino Administration aims to enroll all G&7 million indigent households into the rogram b( 456A& ?nder the GPs) indigent households recei*e a conditional cash trans$er ,CCT- o$ as much as P6)G55 er month) on condition that0

Aside $rom GPsHCCT) DW/D also im lements other social rotection rograms that see9 to not onl( address o*ert( but also em o!er the oor and the marginali%ed&

=A2A6-:'-#**> ==B The Ia it.Bisig ;aban sa Iahira an.Com rehensi*e and Integrated Deli*er( o$ /ocial /er*ices ,IA;A=I.CID//-0 Ia ang(arihan at Iala(aan sa Baranga( ,IIB- is a to .to. bottom) eo le. o!ered a roach to de*elo ment& This $oreign.assisted ro3ect has a P6&7.billion budget $or 4564) !hich !ill be used to ro*ide technical assistance and $unding to 445 munici alities co*ering 7)G5G baranga(s& IA;A=I.CID//.IIB em lo(s a communit(.based a roach to em o!er communities through their artici ation in local go*ernance) es eciall( in the design and im lementation o$ o*ert( reduction acti*ities& The rogram ro*ides $unding su ort and technical assistance to *arious local go*ernment units based on communit( rioriti%ation o$ menu ro3ects) such as otable !ater s(stems) $oot aths) bridges) roads) health $acilities) da(.care centers and classrooms&

*ocial !ension 8or -ndigent *enior 'iti4ens To address the needs o$ oor senior citi%ens) the 4564 Budget ro*ides P6&4 billion $or their social ension) in line !ith the Ex anded /enior Citi%en#s Act o$ 4565 ,Re ublic Act 8o& BBBG-& With this budget) 6BE)7D5 indigent senior citi%ens aged DC and abo*e !ill be ro*ided !ith a monthl( social ension o$ PC55&

*upplemental ;eeding !rogram To address hunger and malnutrition among oor children) the 4564 Budget ro*ides P4&B billion $or the /u lemental +eeding Program& =ot meals !ill be ser*ed $i*e da(s a !ee9 $or a eriod o$ six months $or an estimated 6&A million children enrolled in da(care) as !ell as out.o$.school children aged A months to C (ears& The children !ill be !eighed at the start o$ the $eeding rogram and then monthl( in order to monitor im ro*ements in their nutrition& Education The 4564 Budget re$lects President A'uino#s commitment to ro*ide the highest budgetar( riorit( $or education) as it is his go*ernment#s central strateg( $or in*esting in the eo le and building national com etiti*eness& With this) the subsector#s total budget increased b( 6G ercent to P75E&B billion in 4564& In articular) the De Ed budget gets a 6C. ercent boost@the highest in o*er a decade@to P47E&E billion& The un recedented increases in the education budget sho! the A'uino Administration#s dri*e to decisi*el( meet the education "DGs& The A'uino Administration has also ta9en bold mo*es in re$orming the education sector& +or one) the De Ed has begun im lementing the global standard o$ the I to 64 ,I.64Program) !hich is more suited to honing (oung learners& Tertiar( and *ocational education s(stems are also being re$ormed to $ocus on de*elo ing com etent human resources $or riorit( economic gro!th areas& 8otes0 6- 4566 and 4564 $igures are a ro*ed a ro riations) !hile the rest are actual obligations& 4-The com utation $or 4564 includes $unding $or ne! and un$illed ositions o$ De Ed and /tate ?ni*ersities and Colleges& The segregation o$ $unds $or ne! and un$illed ositions into the "iscellaneous Personnel Bene$its +und ,"PB+- started in 4564&

?niversal =indergarten As a 9e( com onent o$ the I.64 Program) the ?ni*ersal Iindergarten rogram $ormall( re ares C (ear.old children rior to entr( in Grade 6& +or 4564) its budget o$ P4&G billion !ill be used $or the earl( childhood education o$ about 6&D million children& +urthermore) the 4564 Budget !ill $und the creation o$ 7)555 teaching ositions $or Iindergarten ,/ee succeeding ortion on ne! teaching ositions-&

)ore Teachers, )ore 2earning )aterials, Better -nstruction To im ro*e the 'ualit( o$ instruction) the 4564 Budget ro*ides P7&C billion $or the creation o$ an additional 6A)555 teaching and non.teaching ositions0 7)555 in 9indergarten and 67)555 $or elementar( and secondar( education& "ean!hile) an additional PE&B billion is allocated $or un$illed teaching ositions& The 4564 Budget ro*ides P4&6 billion $or the rocurement o$ G4&B million learning and teaching materials&

)ore 'lassrooms 'omplete with ;urniture and ;acilities To ro*ide students !ith a suitable 1second home)2 the go*ernment see9s to com letel( address the shortage o$ AA)E55 classrooms b( 4567& With this) the 4564 Budget ro*ides a total o$ P6D&G billion to construct an estimated G5)45E classrooms ,including 4B)7CE through PPPs) see box- and re air 7)EC5) as !ell as urchase 4&C million seats and install 4C)AAD !ater and sanitation $acilities&

Expanded GA*T!E The Go*ernment Assistance to /tudents and Teachers in Pri*ate Education ,GA/TPEremains an inno*ati*e rogram that decongests ublic schools b( gi*ing oor but 'uali$ied students an o ortunit( to stud( in ri*ate schools& The A'uino Administration has again ex anded GA/TPE b( ro*iding PA&7 billion in 4564& This !ill ro*ide one million grantees $rom DCD)E5A in 4566&

The A'uino go*ernment is also ta ing a ne! a roach in constructing school houses& ?nder PPP arrangements) ri*ate contractors !ill be ta ed b( De Ed to construct the re'uired number o$ classrooms !ithin a eriod o$ one (ear) and go*ernment !ill re a( the contractors $or a eriod o$ $i*e to se*en (ears&

+or 4564) 4B)7CE classrooms !ill be constructed through PPPs& O$ the educational $acilities budget) PG billion has been earmar9ed $or the $irst.(ear amorti%ation o$ these PPP.constructed classrooms) and !ill be re'uired $or the succeeding $our (ears& According to De Ed) this scheme !ill enable go*ernment to ha*e a 1%ero bac9log2 o$ classrooms b( 4567&

*cience Education To sustain the de*elo ment o$ +ili ino scientists and inno*ators) the 4564 Budget ro*ides the /cience Education Institute ,/EI- and the Phili ine /cience =igh /chool ,P/=/- o$ the De artment o$ /cience and Technolog( ,DO/T- !ith a total o$ P4&6 billion to increase the number o$ scholars in all le*els& P/=/ targets an increase o$ science high school scholars to G)77G in 4564 $rom 7)C4D in 4565& /EI !ill mean!hile su ort more than 65)555 science and technolog( scholars in both undergraduate and graduate le*els&

*cholarships in 6igher Ed, Tech:9oc 2earning To ensure a stead( su l( o$ com etent talent $or economic gro!th) the Commission and =igher Education ,C=ED- and Technical Education and /9ills De*elo ment Authorit( ,TE/DA- ro*ides scholarshi s $or oor but 'uali$ied students& The 4564 Budget ro*ides C=ED !ith PAE6 million $or its /tudent +inancial Assistance Programs ,/T?+APs- !hich are ex ected to bene$i t GD)775 grantees& All /T?+AP slots are allotted to riorit( courses based on labor mar9et and de*elo ment needs0 this ensures that grantees !ill land a 3ob a$ter com letion& TE/DA has a PD55.million $und $or its training.$or.!or9 scholarshi rogram $or more than 75)555 students& To ensure the em lo(abilit( o$ graduates) the courses o$$ ered are based on 9e( em lo(ment generators identi$ied b( the De artment o$ ;abor and Em lo(ment ,DO;E-&

)ore esponsive *tate ?niversities and 'olleges The A'uino Administration belie*es that /tate ?ni*ersities and Colleges ,/?Cs- are an im ortant as ect o$ the ublic education s(stem0 to ro*ide oor (et talented students !ith a chance to attain a college degree& With this) the 4564 Budget ro*ides /?Cs !ith a total budget o$ P4A&6 billion) o*er 65 ercent more than last (ear#s com arable allocation&

To ensure that /?Cs become res onsi*e to economic de*elo ment) the go*ernment is currentl( underta9ing re$orms to align their course o$$erings !ith the go*ernment#s riorit( de*elo ment areas& O$ the total /?C budget $or 4564) PC55 million is allocated under C=ED $or /?C acti*ities $or de*elo ing human resources into riorit( areas $or economic de*elo ment0 agriculture) tourism) in$rastructure de*elo ment) semiconductor and electronics manu$acturing) and business rocess outsourcing ,BPOs-& The A'uino Administration is also mo*ing to!ards a more rationali%ed and res onsi*e /?C s(stem through the amalgamation o$ /?Cs into 9e( centers o$ excellence and the institution o$ a er$ormance.based mechanism $or budgetar( allocation) among other inter*entions& 6ealthcare President A'uino belie*es that good go*ernance re'uires the ad*ancement and rotection o$ ublic health& A$ter all) the $ailure to rotect households $rom illness and to alle*iate the high cost o$ healthcare signi$icantl( contributes to o*ert( and ine'ualit(& Through the 4564 Budget) the go*ernment in*ests PC6&A billion in the health subsector& In articular) the DO= budget increases b( 76&4 ercent to PG7&C billion& To su ort the President#s commitments on im ro*ing ublic health@and meet the countr(#s "DG targets to reduce child mortalit() im ro*e maternal healthcare and combat ma3or diseases@the DO= !ill begin im lementing ?ni*ersal =ealth Care o*er the medium. term&

6ealth -nsurance 8or -ndigents

;amily 6ealth and -mmuni4ation The 4564 Budget sets aside P4&7 billion $or +amil( =ealth and Res onsible Parenting 'ontrol o8 Tu.erculosis, -n8ectious #iseases The 4564 Budget ro*ides P6&5 billion $or TB Control in 4564) articularl( the Directl( Obser*ed Treatment /hort Course ,DOT/- strateg( to ensure com letion o$ treatment& DO= also has a P44G.million budget to combat =I>HAID/ and other in$ectious diseases&

Better, Accessi.le 6ealth ;acilities The a*ailabilit( and accessibilit( o$ such health $acilities nation!ide@es eciall( in the $ar.$lung areas@is critical in enhancing ublic health ser*ice deli*er(& The 4564 Budget thus ro*ides PC&6 billion $or u grading health $acilities) articularl( rural health units) baranga( health stations and district hos itals& DO= !ill also engage the ri*ate sector in moderni%ing 4C regional hos itals& The 4564 Budget ro*ides P7 billion as $unding su ort $or PPP schemes in the o eration and maintenance o$ these regional hos itals&

6ealthcare <or7ers to the Barrios

A88orda.le 6ousing To ro*ide shelter $or the oor) the go*ernment has set aside PD billion $or the housing sector) 47 ercent higher than the 4566 a ro riation o$ PC&D billion& In articular) the 8ational =ousing Authorit( !ill ha*e PC&A billion to resettle $amilies a$$ected b( calamities and li*ing along high.ris9) and to su ort medium.rise housing and slum u grading rograms& Agrarian e8orm

The A'uino Administration is !ill im lement the Com rehensi*e Agrarian Re$orm Program ,CARP- to alle*iate o*ert( in the countr(side b( ro*iding land to landless $armers& +or 4564) CARP !ill ha*e a PB&AC.billion budget $or the ac'uisition and distribution o$ 4G5)4GD hectares o$ land& apid, -nclusive and *ustained Economic Growth To achieve rapid economic expansion that generates jo.s and livelihood 8or and increase the income o8 the poor while moving away 8rom the .oom:and:.ust cycle o8 the economic per8ormance o8 the past.

In$rastructure0 Building Roads and Bridges $or /ustainable Gro!th /trategic /u ort $or PPP Agriculture0 To!ards +ood /el$./u$$icienc( In$rastructure $or Agriculture /u ort to Agricultural Producti*it(

Tourism

In$rastructure $or Tourism Tourism Promotion 8ational Producti*it( Im ro*ement

As the oor are li$ted $rom o*ert( and ca acitated through education and healthcare ser*ices) the econom( must be able to ro*ide them !ith better li*elihood o ortunities& Economic gro!th must there$ore be ra id) as gross domestic roduct ,GDP- must increase b( D to E ercent annuall(: inclusi*e) as gro!th must be $or the bene$it o$ all and not $or a $e!: and sustained) as the countr( must esca e $rom the *icious boom. and.bust c(cles o$ the ast& To $acilitate gro!th) the go*ernment must ro*ide necessar( in$rastructure and other in*estments to su ort increased economic acti*it() ensure macro.economic and olic( stabilit( to hel business $lourish) and become a 3ust mar9et regulator and $air artner o$ the ri*ate sector& To meet these re'uirements) the A'uino Administration has in$used some PG7B&C billion into the economic ser*ices sector) 46&C ercent more than the P7A6&D.billion allocation in 4566& But more than the increased aggregate amount) the A'uino Administration see9s to $ocus its e$$orts to!ards the $i*e riorit( areas $or 3ob generation and economic de*elo ment0 semi.conductor and electronics) business rocess outsourcing) tourism de*elo ment) agriculture and $isheries de*elo ment) and general in$rastructure& -n8rastructure> Building oads and Bridges 8or *ustaina.le Growth

Public in$rastructure s ending has been increased b( 76&D ercent) $rom P6B6&D billion in 4566 to P4C4&G billion in 4564& To ensure ra id) inclusi*e and sustained economic de*elo ment) *ital in$rastructure ro3ects !ill be im lemented to $acilitate the mo*ement o$ eo le) goods) ser*ices) and in$ormation& *trategic *upport 8or !!! The go*ernment !ill continue to harness Public.Pri*ate Partnershi s ,PPP- to ta ri*ate ca ital in addressing critical constraints in in$rastructure s ending& +or this ur ose) the A'uino administration has ro*ided a total o$ P6B&A as counter art $unds $or PPP ro3ects in 4564& These include0 Agriculture> Towards ;ood *el8:*u88iciency Agriculture is a *ital sector in the countr(#s econom(& In 4566) the agriculture) $isher( and $orestr( accounted $or 6A&7 ercent o$ the countr(#s econom( and o*er 75 ercent o$ the labor $orce& It also addresses the nation#s $ood re'uirements "ost im ortantl() the

de*elo ment o$ agriculture !ill su o ortunities $or the rural oor&

ort o*ert( reduction and im ro*ed economic

The go*ernment aims $or 655. ercent sel$. su$$icienc( in rice and other $ood sta les b( 456A to hel combat hunger& In line !ith this) PBB&GC billion has been ro*ided $or the agriculture and agrarian re$orm sector in 4564) C5&D ercent more than the 4566 le*el o$ PAC&BD billion& -n8rastructure 8or Agriculture To boost agricultural (ields articularl( o$ rice) the administration has raised the budget $or irrigation in$rastructure b( more than B5 ercent to P4G&C billion to ensure the irrigation o$ more than 67C)5G5 hectares o$ agricultural lands& "oreo*er) the 4564 Budget ro*ides PC billion $or the construction and rehabilitation o$ 6)EE6&A 9ilometers o$ $arm.to.mar9et roads& These ro3ects to be $unded ha*e been $leshed out in the 4564 Budget) allo!ing citi%ens@es eciall( $armers# organi%ations@to closel( monitor the im lementation o$ these locall(.$unded and $oreign.su orted irrigation ro3ects& *upport to Agricultural !roductivity The go*ernment has increased the 4564 allocation $or the 8ational Rice Program b( P6&E billion) G7&4 ercent more than the 4566 a ro riation o$ PG&7 billion& It has li9e!ise ro*ided $or *arious rograms to im ro*e the roduction o$ other cro s and li*estoc9& Toursim Tourism is a lo!.l(ing $ruit0 economic bene$its are immediatel( reali%ed) and the Phili ines@not onl( due to its natural attractions and cultural heritage sites but also its *er( eo le@has a high otential $or success in the sector& The A'uino go*ernment see9s to attract 65 million tourists b( 456A& To hel meet the go*ernment#s target o$ ushering in G&A million tourists this (ear) the A'uino administration has lined u se*eral in$rastructure ro3ects and tourism romotion acti*ities $unded b( the 4564 Budget& -n8rastructure 8or Tourism >arious in$rastructure ro3ects are ex ected to s ur the de*elo ment o$ tourist destinations& In $act) a signi$icant ortion o$ the total go*ernment in$rastructure rogram $or 4564@ articularl( the de*elo ment o$ air orts) sea orts and better access roads and trans ortation $acilities@!ill bene$it the sector& "ore s eci$icall() DPW= has been ro*ided !ith a budget o$ P7&5D.billion@more than the P6&E.billion allocation $or 4566@$or the construction o$ 676 9m o$ access roads to tourist destinations& It !ill also ha*e a P6&6.billion budget $or the construction o$ access roads to air orts and roll.onHroll.o$$ orts leading to *arious tourist destinations) such as Boraca() Pala!an) Bohol) Bicol) Cebu) "indanao) 8orthern and Central ;u%on&

Tourism !romotion It#s more $un in the Phili ines) and !ith more $unds $or tourism& The De artment o$ Tourism ,DoT- !ill recei*e PDA4&G million to ush its international romotions cam aign into high gear& An additional P6E&A million !ill be channeled to a ma3or tourist ex osition in Jeosu) Iorea& "oreo*er) another P64&C million !ill be used b( DoT to bee$ u its local tourism romotion acti*ities& 0ational !roductivity -mprovement To im ro*e the countr(#s roducti*it( and com etiti*eness in *arious industries) the Administration !ill ta ne! 9no!ledge and emerging inno*ations in science and technolog(& +or 4564) the go*ernment has ro*ided P7&6 B $or national roducti*it( im ro*ement& O$ this) P4&D billion !ill be used b( the De artment o$ /cience and Technolog( ,Do/T- $or generating ne! 9no!ledge and technologies) ensuring their di$$usion and trans$er) and de*elo ing science and technolog( human resources& -ntegrity o8 the Environment and 'limate 'hange )itigation and Adaptation To romote sustainable natural resource utili%ation and climate change ada tation and mitigation strategies and measures among national go*ernment agencies) the local go*ernment units ,;G?s- and their res ecti*e communities) the general ublic) and other sta9eholders& Pre aredness Integrit( o$ the En*ironment and Climate Change Ada tation and "itigation /ustainabilit( The oor are the !orst *ictims o$ climate change& Jear in and (ear out) natural disasters ha*e dealt billions o$ esos in damage and claimed the li*es o$ millions o$ +ili inos& According to the Belgium.based Centre $or Research on the E idemiolog( o$ Disasters) the Phili ines ran9ed third in the list o$ countries most $re'uentl( hit b( natural disasters in 4565) ushing the A'uino administration to treat climate change as a riorit(& The 4564 8ational Budget romotes the integrit( o$ the en*ironment and ban9rolls climate change mitigation and ada tation e$$orts& !reparedness The go*ernment cannot sit idl( b( a$ter ho! ast t( hoons and other calamities ha*e !rea9ed ha*oc in the li*es o$ our eo le& The 4564 8ational Budget in*ests in the go*ernment#s ca abilit( to redict) re are $or and res ond to t( hoons) calamities) and other similar disasters&

The Calamit( +und has been increased to PD&C billion) com ared to PC billion in 4566& O$ this amount) P4&AC billion !ill be used $or aid) relie$ and rehabilitation ser*ices to areas a$$ected b( calamities) !hile PG&EC billion !ill be used $or the re air and reconstruction o$ ermanent structures& Ie( de artments ha*e also been armed !ith P4&6 billion in Kuic9 Res onse +unds to $acilitate immediate rescue) relie$ and rehabilitation acti*ities in the !a9e o$ calamities& *ustaina.ility The A'uino administration is committed to rotect the Phili ines# natural resources and en*ironment in the long.term through the en$orcement o$ en*ironmental la!s and standards) the rotection and enhancement o$ $orest co*er) ado tion o$ energ( e$$icient lighting in go*ernment o$$ices and the rehabilitation o$ esteros& ;inancing the Expenditure !rogram

"acroeconomic Assum tions) 4565 L 4564 +iscal Program Re*enues) Disbursements and "acroeconomic +actors 8ational Re*enue Targets 4566.4564 Tax Re*enues 4566.4564 8on.Tax Re*enues 8ational Go*ernment Disbursement Targets Borro!ings and Debt )acroeconomic Assumptions, "@1@ A "@1" ;iscal !rogram To su ort macroeconomic stabilit( and $iscal consolidation) the go*ernment see9s a budget ga o$ 4&A ercent o$ GDP in 4564) or e'ui*alent to P4DB&6 billion&The go*ernment as ires to decrease de endenc( on borro!ed mone( to $inance the deli*er( o$ basic ublic goods and ser*ices& B( 4567 and on!ards to 456A) the go*ernment aims to bring do!n the de$icit to a sustainable le*el o$ 4&5 ercent o$ GDP& evenues, #is.ursements and )acroeconomic ;actors With this) the budget is also a$$ected b( internal and external economic $actors) such as gross domestic roduct ,GDP- gro!th) in$lation) interest rates and $oreign exchange& In other !ords) a *ibrant domestic econom() !ith more eo le getting em lo(ed and businesses earning more) generates higher re*enues $rom taxes& On other hand) in times o$ economic crises or !hen the econom( slo!s do!n) go*ernment income is a$$ected&

0ational

evenue Targets

To $inance this s ending rogram) the go*ernment intends to raise 67&E ercent more re*enues next (ear amounting to P6&CG trillion) com ared to the 4566 outloo9 o$ P6&7A trillion) b( maintaining the re*enue e$$ort at 6G&4 ercent o$ GDP& As a continuing commitment b( the A'uino Administration) the increase in re*enue ro3ections !ill not be $rom ne! taxes but mostl( $rom the tax collection e$$icienc( e$$orts o$ the collecting agencies li9e the Bureau o$ Internal Re*enue ,BIR- and Bureau o$ Customs ,BOC-& Tax Revenues. +or 4564) the go*ernment targets to raise the tax e$$ort to 67&4 ercent through tax administration measures& The tax collection e$$orts o$ the BIR and BOC !ill increase b( 5&7 and 5&C ercentage oints) res ecti*el(& Non-Tax Revenues. +or 4564) non.tax re*enues are conser*ati*el( estimated at a lo!er 6&4 ercent o$ GDP) !ith Bureau o$ Treasur( ,BTr- income decreasing to PA6&E billion) net o$ the cash di*idend remittances $rom Go*ernment +inancial Institutions ,G+Is- recei*ed in 4566& 0ational Government #is.ursement Targets Tied !ith the P6&E6A trillion national budget and aiming to bolster economic acti*it( e*en at the start o$ (ear) go*ernment s ending is ro3ected at P6&EG5 trillion) ex anding b( 6E&6 ercent $rom actual 4566 disbursements) and this is e'ui*alent to 6D&5 ercent o$ GDP& Borrowings and #e.t With the ro3ected de$icit) the 8ational Go*ernment intends to borro! $rom $oreign sources and $rom the domestic mar9et to bridge the P4DB&6 billion.de$icit& To $urther lessen reliance on $oreign $inancing) the $oreign.to.domestic borro!ing mix $or 4564 !ill be at 4C0DC) as com ared !ith the 4566 ratio o$ 7C0AC& +oreign $inancing) including o$$icial de*elo ment assistance and bond issuances !ill decrease to P6AE&D billion $rom P6BG&7 billion& This borro!ing rogram also considers a(ments o$ outstanding obligations amounting to P7E5&5 billion) consisting o$ P76A&G billion $or domestic debts as !ell as PA7&A billion $or the amorti%ation o$ $oreign debts& Total borro!ings $or 4564 !ill be P65B&E billion more than 4566& The 4564 end.(ear stoc9 debt o$ the 8ational Go*ernment is estimated to reach PC&GA6 trillion) or C5&C ercent o$ GDP based on 4555 rices) contracting $rom the 4566 rogrammed ratio o$ C5&B ercent& =ey ;eatures and !rinciples

+ocuses / ending on the /ocial Contract Enhances Da(light in Go*erning the 8ation#s Co$$ers /huns the 1Business.As.?sual2 "indset in Combating Po*ert( Consolidates our /trengths $or Economic Gro!th Ensures an Enhanced Context $or De*elo ment

;ocuses *pending on the *ocial 'ontract The 8ational Budget $or 4564 is a Results.+ocused Budget& It is aligned !ith $ul$illing the administration#s /ocial Contract !ith the +ili ino eo le& All $unding o$ rograms and acti*ities o$ the go*ernment !ill be aligned !ith the C Ie( Result Areas ,IRAs- o$ the A'uino /ocial Contract !ith the +ili ino Peo le) as stated under Executi*e Order 8o& G7& Enhances #aylight in Governing the 0ations 'o88ers The go*ernment continues to ursue and escalate re$orms to establish trans arenc() accountabilit( and citi%en artici ation in ublic s ending& Citi%en artici ation in the budget is broadened b( acti*el( engaging the ci*il societ( organi%ations throughout the budget rocess& The go*ernment !ill em lo( the %ero. based budgeting ,MBB- a roach to a*oid redundancies in resource allocations and to !eed out ine$$icient rograms& +or the 4564 budget re aration) the o$ten.abused lum sum $unds are disaggregated into regional and sub.regional allocations& The use o$ sa*ings is tightened to re*ent irregularities and anomalous ractices& "oreo*er) ICT !ill be utili%ed to ensure trans arenc() accountabilit( and citi%en artici ation in ublic s ending& It !ill be used as a tool to harmoni%e and integrate go*ernment#s dis arate $inancial management rocesses& It !ill also be used to im ro*e the management o$ in$ormation that im act on ublic s ending) such as in ca turing go*ernment#s com lete man o!er !ith the u grading o$ the Go*ernment "an o!er In$ormation /(stem ,G"I/-& *huns the 3Business:As:?sual5 )indset in 'om.ating !overty The go*ernment !ill continue to rioriti%e rograms and inter*entions that !ill directl( reduce o*ert(& Decidedl( biased to!ard the oor and marginali%ed) the social ser*ices sector !ill continue to im lement its $lagshi rograms) including the Panta!id Pamil(ang Pili ino Program ,GPs- and the 8ational =ealth Insurance Program ,8=IP-& To ensure the success o$ these rograms) in*estments in healthcare) education and housing !ill be shored u ) and the 8ational =ousehold Targeting /(stem ,8=T/- !ill be ex anded to better identi$( the bene$iciaries& 'onsolidates our *trengths 8or Economic Growth

The 4564 Budget su orts ra id) inclusi*e and sustained economic gro!th through higher s ending on economic ser*ices to boost economic acti*it( and 3ob generation) articularl( in these riorit( areas0 agriculture) tourism) in$rastructure) business rocess outsourcing) and semiconductor and electronics& Public. ri*ate artnershi s !ill continue to be ta ed to increase ri*ate sector engagements in de*elo ing critical in$rastructure $acilities& "oreo*er) the A'uino Administration continues to ursue macroeconomic stabilit( through $iscal consolidation& Ensures an Enhanced 'ontext 8or #evelopment +or 4564) the go*ernment intends to ro*ide the necessar( su ort $or strengthening the rule o$ la!) securing eace and order in con$lict.a$$licted areas) and ursuing climate change ada tation and mitigation&