The topics covered in this research:

1. Philippine Budget Preparation

2. Budget Allocations for each Government Sectors and Departments for
Year 2013 and 2014
3. Poverty Statistics and Poverty Reduction Program in the Philippines
4. Income and Expenses of the Filipinos in the Philippines


1. PHILIPPINE BUDGET PREPARATION

1.1. The National Budget of the Philippines refers to the governments
estimation of its income and expenditures. The major processes involved
in the National Government budgeting include the budget preparation, the
budget legislation, the budget execution, and the budget accountability.
The national budget is spent for the implementation of various government
programs and projects, and other operations of government.

1.2. The Philippine Budget process involves four phases, namely,
1.2.1. THE BUDGET PREPARATION This starts with the Budget Call
and ends with the Presidents submission of the proposed budget
to Congress.
1.2.2. THE BUDGET LEGISLATION Alternatively called the the budget
authorization phase, this starts upon the House Speakers receipt
of the Presidents enactment of the General Appropriations Act
(GAA).
1.2.3. THE BUDGET EXECUTION This is where the peoples money is
actually spent. As soon as the General Appropriations Act (GAA) is
enacted, the government can implement its priority programs and
projects.
1.2.4. THE BUDGET ACCOUNTABILITY This phase happens
alongside the Budget Execution phase. Through Budget
Accountability, the Department of Budget and Management (DBM)
monitors the efficiency of fund utilization, asses agency
performance and provides a vital basis for reforms and new
policies.

1.3. The preparation of the annual budget involves a series of steps that
begins with the determination of the overall economic targets, expenditure
levels, revenue projection and the financing plan by the Department of
Budget and Management (DBM) Secretary as Chairman and the Bangko
Sentral Governor, the Secretary of the Department of Finance (DOF), the
Director General of the National Economic and Development Authority
(NEDA) and a representative of the Office of the President as members.


2.BUDGET ALLOCATIONS FOR EACH GOVERNMENT SECTORS AND
DEPARTMENTS FOR YEAR 2013 AND 2014

2.1. The Approved National Budget for Year 2013 and 2014






2.2. National Budget by Sectors

Particular Sectors 2013 2014
Social Services P699.4B P842.8B
Economic Services P509.2B P590.2B
General Public Services P347.3B P364.7B
Debt Services P333.9B P352.7B
Defense P89.5B 92.9B
Net Lending P26.5B P25.0B
Total P2,006T P2,268T

2.3 National Budget by Departments

Government
Departments
2013 2014
Department of Education
(DepEd)
P297.7B P336.9B
Department of Public
Works and Highways
(DPWH)
P152.9B P231.5B
Department of National
Defense (DND)
P121.6B P123.1B
Department of Interior and
Local Government (DILG)
P121.1B P135.4B
Department of Agriculture
(DA)
P74.1B P80.7B
Department of Health
(DOH)
P59.9B P87.1B
Department of Social
Welfare and Development
(DSWD)
P56.2B P79B
Department of Finance
(DOF)
P53.22B P80.9B
Department of
Environment and Natural
Resources (DENR)
P23.7B P23.9B
Year Approved National
Budget
2013 P2,006 T
2014 P2,268 T
Department of Congress of
the Philippines
P9.8B P10.3
Office of the President
(OP)
P2.7B P2.8B
Office of the Vice-President P2B P2.2B
Department of Agrarian
Reform
(DAR)
P63.7B P65.5B
Department of Budget and
Management (DBM)
P998.2B P1B
State Universities and
Colleges
P34.9B P36.8B
Department of Energy
(DOE)
P4.3B P4.1B
Department of Foreign
Affairs
(DFA)
P11.7B P12.2B
Department of Justice
(DOJ)
P10.8B P11.6B
Department of Labor and
Employment (DOLE)
P8B P10.5B
Department of Science and
Technology
(DOST)
P10.5B P12.2B
Department of Tourism
(DOT)
P2.9B P2B
Department of Trade and
Industry
(DTI)
P2.8B P4.5B
National Economic
Development
(NEDA)
P5B P4B
Presidential
Communications
Operations Office (PCOO)
P1.3B P1.2B
Other Executives Offices P10.9B P11.7B
Joint Legislative-Executive
Councils
P2.1B P4.2B
The Judiciary P17.7B P19.2B
Civil Service Commission
(CSC)
P992.2M 1.3B
Commission on Elections
(COE)
P8.4B P2.9B
Office of the Ombudsman P1.7B P1.8B
Commission on Human
Rights
P318.9M P348M
3. POVERTY STATISTICS AND POVERTY REDUCTION PROGRAM IN THE
PHILIPPINES

3.1 Definition of Terms

3.1.1 POVERTY INCIDENCE Refers to the proportion of families (or
population) with per capita income less than the per capita poverty
threshold to the total number of families (population).
3.1.2. SUBSISTENCE INCIDENCE Refers to the proportion of families (or
population) with per capita income less than the per capita food threshold
to the total number of families (population).
3.1.3. POVERTY THRESHOLD OR POVERTY LINE

Refers to the cost of the
basic food and non-food requirements (valued in peso). The basic non-
food requirements cover the non-food expenditure items of the Total Basic
Expenditures. In the Philippine official methodology, the poverty line may
be viewed as the minimum income required to meet the food requirements
and other non-food basic needs.
3.1.4. FOOD THRESHOLD Refers to the cost of the food required to satisfy
nutritional requirements for economically necessary and socially desirable
physical activities.
3.2. POVERTY STATISTICS
3.2.1. The Philippine Statistic Authority (PSA) releases the latest report
regarding the Philippines official poverty Statistics for the first semester of
2013. Poverty incidence among Filipinos in the first semester of 2013 was
estimated at 24.9% based on the 2013 Annual Poverty Indicators Survey
(APIS) conducted in July 2013. During the same period (1
st
semester) of
year 2012, poverty incidence among Filipinos was recorded at 27.9%
based on the 2012 Family Income and Expenditures Survey (FIES). This
shows that poverty incidence in the Philippines went down at 3% in the
first half on 2013.
3.2.2. On the other hand, subsistence incidence among Filipinos whose income
is below the food threshold, was estimated at 10.7% in the first semester
of 2013. This is lower than the 13.4% estimate in the first half of
2012. Subsistence incidence among Filipinos is often referred to as the
proportion of Filipinos in extreme or subsistence poverty. This shows that
subsistence incidence went down at 2.7% in the first half of 2013.
3.2.3. During the first semester of 2013, a family of five needed at least P5,590
on the average every month to meet the familys basic food needs and at
least P8,022 on the average every month to meet both basic food and
non-food needs. These amounts represent the monthly food threshold and
monthly poverty threshold, respectively. They indicate increases of about
2.4 percent in food threshold and 2.6 percent in poverty threshold from the
first semester of 2012 to the first semester of 2013.
3.2.4. According to the Philippine Statistics Authority (PSA), the recorded
employment rate in year 2012 was 92.8%, 2013 was 92.9% and year
2014 was 92.5%. Between 2013 and 2014, employment rate in the
Philippines went down at 4%. The recorded unemployment rate in year
2012 was 7.2%, 2013 was 7.1 and year 2014 was 7.5. The unemployment
rate between 2013 and goes up at 4%. Among the regions, the National
Capital Region (NCR) had the lowest employment rate at 89.1
percent. Three other regions, namely, Ilocos Region (91.5%), Central
Luzon (91.0%), and CALABARZON (90.9%) had rates lower than the
national figure.

3.3. POVERTY REDUCTION PROGRAMS IN THE PHILIPPINES

3.3.1. Social Protection and Social Welfare

3.3.2. Pantawid Pamilyang Pilipino Program (4Ps)
The main beneficiaries of this program are the marginalized Filipino
citizens who are not capable to meet the basic needs of a family. The
beneficiaries receive a conditional cash transfer (CCT) of as much as
P1,400 per month to assist them in getting their children to school, have
their children immunization and help mothers to avail maternal healthcare
services. Conditional Cash Transfer Program in 2014 has a budget of 12.3
billion pesos. The beneficiaries will receive this grant for six years.

3.3.3. Social Pension for Indigent Senior Citizens
To address the needs of poor senior citizens, the allocated budget for this
is P1.2 billion for their social pension. With this budget, 198,370 indigent
senior citizens aged 75 and above will be provided with a monthly social
pension of P500.

3.3.4. Supplemental Feeding Program
To address hunger and malnutrition among poor children, the allocated
budget is P2.9 billion for the Supplemental Feeding Program. Hot meals
will be served five days a week for a period of six months for an estimated
1.6 million children enrolled in daycare, as well as out-of-school children
aged 6 months to 5 years. The children will be weighed at the start of the
feeding program and then monthly in order to monitor improvements in
their nutrition.

3.3.5. Education

3.3.6. More Teachers, More Learning Materials
To improve the quality of instruction, the allotted budget for education is
P3.5 billion for the creation of an additional 16,000 teaching and non-
teaching positions: 3,000 in kindergarten and 13,000 for elementary and
secondary education. Meanwhile, an additional P8.9 billion is allocated for
unfilled teaching positions. The budget P2.1 billion is intended for the
procurement of 42.9 million learning and teaching materials.

3.3.7. Classrooms Complete with Furniture and Facilities
To provide students with a suitable second home, the government seeks
to completely address the shortage of 66,800 classrooms by 2013. With
this, the 2012 Budget provides a total of P17.4 billion to construct an
estimated 40,208 classrooms and repair 3,850, as well as purchase 2.5
million seats and install 25,667 water and sanitation facilities.

3.3.8. Scholarships in Higher Education, Technical-Vocation Learning
To ensure a steady supply of competent talent for economic growth, the
Commission and Higher Education (CHED) and Technical Education and
Skills Development Authority (TESDA) provides scholarships for poor but
qualified students (people who earns below minimum wage). The allotted
budget of CHED is P681 million for its Student Financial Assistance
Programs (STUFAPs) which are expected to benefit 47,330 grantees.
TESDA has a P700-million fund for its training-for-work scholarship
program for more than 30,000 students.

3.3.9. Healthcare

3.3.10.Health Insurance for Indigents, Control of Tuberculosis, Infectious
Diseases
The 2012 Budget provides P1.0 billion for TB Control in 2012, particularly
the Directly Observed Treatment Short Course (DOTS) strategy to ensure
completion of treatment. DOH also has a P224-million budget to combat
HIV/AIDS and other infectious diseases.

3.3.11.Better, Accessible Health Facilities
The availability and accessibility of such health facilities nationwide
especially in the far-flung areasis critical in enhancing public health
service delivery. The budget distributed is P5.1 billion for upgrading health
facilities, particularly rural health units, barangay health stations and
district hospitals. DOH will also engage the private sector in modernizing
25 regional hospitals.



3.3.12 Healthcare Workers to the Barrios
P1.7B is allocated to the Doctors to the Barrios program, supporting the
deployment of 200 Doctors, 1,021 Midwives and 12,000 Nurses. The
government also aids 100 medical scholars under the Pinoy MD Scholars
program, which is provided with P55.8M. These additional doctors are
required to serve in public hospitals to help alleviate problem on the
shortage of doctors to rural areas.

3.3.13. Affordable Housing

3.3.14. The Pag-IBIG housing loan is used to finance anyone of the following:
Purchase of a fully developed residential lot or adjoining lots not
exceeding 1,000 square meters; Purchase of residential house and lot,
townhouse, or condominium unit; Construction or completion of a
residential unit on a lot owned by the member.

3.3.15. Eligible citizens who wish to apply for Affordable Housing Program
The program may be availed of by members who satisfy the following
requirements: Must have remitted 24 monthly contributions under Pag-
IBIG Membership Program. Has a gross monthly income not exceeding
P17,500.00 for those working in the NCR and P14,000.00 for workers in
other regions; Not more than 65 years old; Has no outstanding Pag-
IBIG housing load;

3.3.16. A qualified Pag-IBIG member may borrow up to a maximum amount of
P750,000.00, depending on the members actual need, his loan
entitlement based on gross monthly income, his loan entitlement based
on capacity to pay, and the loan-to-appraisal value ratio,
whichever is the lowest. A maximum of three (3) qualified Pag-IBIG
members may be tacked into a single loan provided they are related
within the second civil degree of consanguinity or affinity.















4. INCOME AND EXPENSES OF FILIPINOS IN THE PHILIPPINES

4.1. Average Daily Basic Pay of Wage and Salary Workers by Major
Occupation (In Pesos)
Major Occupation 2012 2013 2014
Officials of Governments,
Corporate executives,
managers, supervisors
P802.67 P830.04 P861.32
Professionals P721.6 P762.32 P773.71
Technicians and Associate
professionals
P463.86 P516.19 P497.87
Clerks P425.54 P451.60 P453.79
Service workers P271.58 P289.75 P292.33
Farmers, forestry,
fishermen
P327.59 P271.23 P274.35
Plant and Machine
Operators
P336.33 P351.05 P353.98
Laborers and unskilled
workers
P185.66 P199.96 P201.00
Special Occupations P722.44 P851.32 P783.17

4.2. EXPENSES OF FILIPINOS

4.2.1 Family expenditures refer to the expenses or disbursements made by the
family purely for personal consumption during the reference year. These
include all expenses in relation to farm or business operations,
investments ventures, purchase of real property and other disbursements
which do not involve personal consumption.
4.2.2. List of some of the family expenses
Foods
Entrepreneurial
Taxes
Car registration, toll taxes, transportation allowance and the like
Utility bills (internet, mobile phone and electrical and water bills)
Sources

http://www.gov.ph/2014/04/29/psa-poverty-incidence-among-filipinos-registered-
at-24-9-as-of-first-semester-of-2013/

http://www.gov.ph/2013/04/24/statement-dswd-on-the-2012-poverty-incidence-
statistics-april-24-2013/

http://www.bles.dole.gov.ph/PUBLICATIONS/Current%20Labor%20Statistics/ST
ATISTICAL%20TABLES/PDF/Tab6.pdf

http://budgetngbayan.com/poverty-reduction-and-empowerment-of-the-poor-and-
vulnerable/

http://www.gov.ph/2012/07/23/benigno-s-aquino-iii-third-state-of-the-nation-
address-july-23-2012/

http://www.gov.ph/2013/07/22/english-benigno-s-aquino-iii-fourth-state-of-the-
nation-address-july-22-2013/

http://www.gov.ph/2014/07/28/english-benigno-s-aquino-iii-fifth-state-of-the-
nation-address-july-28-2014/

http://www.nscb.gov.ph/secstat/d_labor.asp

http://web0.psa.gov.ph/content/employment-rate-july-2013-estimated-927-
percent

http://www.bles.dole.gov.ph/PUBLICATIONS/Current%20Labor%20Statistics/ST
ATISTICAL%20TABLES/PDF/Tab23.pdf

http://www.bles.dole.gov.ph/PUBLICATIONS/Current%20Labor%20Statistics/ST
ATISTICAL%20TABLES/eCLS_September2014.pdf

http://www.dbm.gov.ph/wp-content/uploads/NEP2014/V/DA.pdf

http://pagibigfund.gov.ph/home_pdf/Affordable%20Housing%20FAQs%207-28-
2014.pdf