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7/30/2019 2014 National Budget and Pork Barrel
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2014
NATIONAL BUDGET2014 National Expenditure Program (NEP)
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P2.268 trillion13.1 percent higher than this years P2.006-trillion
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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 agenciesmust deliver according to their mandates
- Butch Abad, Budget Secretary
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843 B
590.2 B
364.5 B
352.7 B
92.9 B
DebtServices
Defense
General
Public
Services
Economic Services
Social
Services
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Allocations for Departments:
Education 336.9 BPublic Works and Highways 213.5 B
Interior and Local Government 135.4 B
National Defense 123.1 BHealth 87.1 B
Agriculture 80.7 B
Social Welfare and Development 79.0 BTransportation and Communications 48.7 B
Environment and Natural Resources 23.9 B
Agrarian Reform 20.4 B
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P399.4-billionInfrastructure Development
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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 AquinoAdministrations commitment to raise infrastructure
spending to 5 percent of GDP by 2016.
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P399.4-billionInfrastructure 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 billionDPWH 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
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P336.9 billionDepartment of Educations (DepEd)
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P336.9 billionDepartment of Education
To cover gaps in Education sector and prepare for K-12
P39.3 billion - State Universities and Colleges
P44.6 billion
77 % higherfrom 25.3 B construction of43,183 classrooms
rehabilitation and repair of9,503 classrooms
acquisition of1.6 million classroom seats
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P135.4 billionDepartment of Interior and Local Government
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P135.4 billionDepartment 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-buildingefforts for local governments under the Payapa at
Masaganang Pamayanan (PAMANA) program.
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P123.1 billionDepartment of National Defense
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P123.1 billionDepartment of National Defense
P5 billion for the modernization of the
countrys armed forces
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P87.1 billionDepartment of Health
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P87.1 billionDepartment 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 qualifiedfamilies
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P80.7 billionDepartment of Agriculture
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P80.7 billionDepartment 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 countryspoorest provinces.
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P62.6 billionPantawid Pamilyang Pilipino Program (4Ps)
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P62.6 billionPantawid Pamilyang Pilipino Program (4Ps)
will cover4.44 million households
10.2 million children beneficiaries
Conditional Cash Transfers will now cover high school students
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CRITICISMS TO THE 2014
NATIONAL BUDGET
2014 National Expenditure Program (NEP)
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Focus on InfrastructureDevelopment
We intend to channel more investmentsinto infrastructure development and
other public services that are pivotal to
our pursuit of rapid, sustained andinclusive growth. - Butch Abad, Budget Secretary
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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 forthese prime industries to bolster oureconomic competitiveness, spur investment,
and further generate jobs for Filipinos,
- Butch Abad, Budget Secretary
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Public Private Partnerships
At first, people may think that PPPs help thegovernment spend less on infrastructuredevelopments, but at present, we can see that ithas only resulted to fare increases as the privatecompanies gain total control on the prices,resources and expenditures of the publicstructure
Private corporations will take control over thePublic services (Health, transportation andeducation) Control on fares and tuition
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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 to600,000 pesos.
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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 publicservices, which are
mostly specifically appropriated, not be subsidized?
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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
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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 andefficiency of this project. This project only proves
to be a short-term solution to poverty.
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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 todistribute the cash to selected families.
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PAMANA Program Counter-insurgency program the social services are not given by civilian
agencies, but by the military. (Example:
DSWD (distribution of 4Ps), CHED (collegescholarships), NEA (electricity), DAR and
DOE. Example: after Ondoy, the military was assigned to
distribute relief goods in the Compostela Valley instead ofDSWD. 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.
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PORK BARREL IN THE
NATIONAL BUDGET
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Briones said any lump sum fund --
meaning there are no details on how
and where it will be spent -- as underthe discretion of one official like a
senator, congressman or president, is
"pork barrel. "- Neri Colmenares, Bayan Muna partylist Rep.
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General Appropriations
Act (GAA) not as detailed and specific as the budget proposals ofregular agencies
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P796 billionAutomatic Appropriations
lump-sum funds that donot undergocongressional scrutiny asthese are automatically
considered approved byvirtue of pertinent laws
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P310.1 billionSpecial Purpose Funds
funds managed directly
by DBM with the approval
of the President
22 % of GAA
SPECIAL PURPOSE FUNDS
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SPECIAL PURPOSE FUNDS
Support to state-owned corporations 45.7 B
Allocations to local government units 19.7 B
Calamity fund 7.5 B
Contigent fund 1 B
DepEd school building program 1 B
E-government fund 2.479 B
International commitments fund 4.8 B
Miscellaneous personnel benefits fund 80.7 B
Pension and gratuity fund 120.5 B
PDAF (Congressional pork barrel) 25.420 B
Feasibility studies fund 400 M
Total 229.526 B
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P139.9 billionUnprogrammed Funds are only disbursed if
certain government
agencies hit their revenue
targets
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UNPROGRAMMED FUNDS
Support to government-owned and
controlled corporations
36.268 B
Support to foreign-assisted projects 16.124 B
General fund adjustments 1 B
Support for infra-projects and socialprograms
56.349 B
AFP Modernization program 10.349 B
Debt management program 10.894 BRisk management program 30 B
Peoples survival fund 500 B
Total 139.904 B
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P200 billionBudget for School buildings
No details about location, type, or level
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P200 billionPresidents Social Funds Intelligence funds, budget forTravels according to deputy presidential spokespersonAbigail Valte, it is commonly used forfinancialassistance to calamity and disaster victims, and tocombat casualties of the Philippine National Policeand the Armed Forces
sourced from the Philippine Charity SweepstakesOffice, the Malampaya Fund and PAGCOR
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P2.5 billionPAGCOR 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
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P352 billionDebt Servicing
P341.5 billionInternal Revenue Allotment
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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.
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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
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Questionable in-budget items:
Intelligence Funds funds for intelligence information gathering activitiesof uniformed personnel and intelligence practitioners
that have direct impact to national security. given to agencies during the budget preparationprocess subject to the discretion of the ChiefExecutive
can only be released upon approval of the presidentDetails of the expenditures are kept secret, and allreports of the utilization of intelligence funds aresubmitted directly to the president.
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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: P20.2million
Philippine Drug Enforcement Agency: P73.6 million
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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.
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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 generalappropriations law for their respective offices from
savings in other items of their respective
appropriations.
the interpretation of the term Office of thePresident, which has been interpreted as any
agency under the Executive Department.
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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 allocationsof specific agencies for a particular year, tag these
funds as savings and realign these funds to
favored programs and projects.
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310.1 B Special Purpose Funds139.9 B Unprogrammed Funds
352 B - Debt Servicing
341.5 B Internal Revenue Allotment200 BPresidents Social Fund
200 B School Buildings
1,343.5 B = TOTAL Presidential Pork(funds controlled by the president)
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1.3435 TTotal Presidential Pork
1.3435 T Only half of the budget
are detailed
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TENDENCIES OF THE
PORK BARREL
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Patronage politics who gets pork?
Kickbacks/commissionsOverpricing textbooks, medicine andother soft pork
Ghost projectsUsed to brag projects/as politicalpropaganda ex. Banners with theirnames and pictures
when in fact, the money they used did not comeout of their pockets
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Why not redistribute funds listed under the
Presidential Pork to agencies that arespecialized 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)
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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
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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 perclassroom)
13,699 classrooms in single-story buildings (P730,000 perclassroom)
8 billion pieces of 100-mg aspirin
4.4 billion pieces of 250-mg amoxicillin
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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
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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.ABS-
CBN News
Imagine what P10B can buy: 8,000 classrooms in 2-
story buildings. Philippine Daily Inquirer