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Fund allocation scheme using GRDP rates, giving more funds to less developed regions, giving more autonomy to less developed regions for development programs, giving more funds to regional offices of Nat'l gov't line agencies, empowering regional development councils to orchestrate projects of member-regional offices, decentralization to solve problems of metro-manila, using the GRDP rates as a basis for augmenting fund allocation for underdeveloped regions of the country, giving more to those who have less, applying the resultant 20-80 ratio in fund allocation (central offices and regional offices), progressive fund augmentation leading to the acceleration of infrastructure development and creation of more metro-manila-like capitols in other regions,
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Creating 17 National Capital Regions (NCRs)
Pump-Priming Regional Development thru a GRDP-based Socially-Equitized Fund Allocation Scheme for Annual
Government Funds
1 Hilario P. Martinez
Imagine the Philippines with 17 vibrant
and competitive
Metro-Manila-like Mega-cities in 17
regions
2 Hilario P. Martinez
Exploring Possibilities
Hilario P. Martinez 3
Fund Allocation using a Social Equity-
based GRDP Rates
Hilario P. Martinez 4
A fund allocation that is too biased for a centralized
governmental set-up
PROBLEM
17 Competitive Regions
OUTCOME
• Modify allo-cation scheme • Re-structure & empower RDCs • Differentiate roles of central & regional offices
ACTION • OP and DBM • NEDA • Congress • Other agencies in the Executive Branch
PLAYERS
• NCR garners ⅓ of annual GDP • NCR is the seat of government as well as the financial center • OP proposes and Congress passes the annual GAA
• Planning is largely centralized though with regional consultations • Regions get an average of 38% of the programmed annual appropriations • Automatic debt servicing
S E T T I N G
PRINCIPLES AND ELEMENTS
Would spending huge sums of government funds for Metro-Manila infrastructure projects solve its perennial problems? Would it be fair to the other regions? Would it be good for the whole country?
Hilario P. Martinez 5
Social Equity in Fund Allocation
6 Hilario P. Martinez
Differentiating the Roles and Responsibilities of Government Line Offices
7 Hilario P. Martinez
Decentralization Decongestion Sustainable Development
Hilario P. Martinez 8
Strengthening the Area-Specific Focus of the Regional Development Councils
Mandating the Service-Area bias of NGA’s* Regional
Offices
Programs should be in accordance to RDC
specification and service area needs-
based
Central Office-Regional Office fund sharing ratio should range from 15-85 to
30-70 ratio
Regional Offices should have more
autonomy in project development,
implementation and resource utilization
Hilario P. Martinez 9
* NGA – National Government Agencies
Autonomy and Economic Development
S E L F - DIRECTED
10 Hilario P. Martinez
Desired Hierarchical Input-Process-Output-Outcome in a Regional Dimension
Hilario P. Martinez 11
THE GENERAL APPROPRIATION – THE NATIONAL BUDGET
A Tool for Country-wide Development, or
Just A Tool for Sustaining Centralized Governance
Hilario P. Martinez 12
In 2009, there were 34 Offices sharing the National Funds
1. Congress of the Philippines
2. Office of the President
3. Office of the Vice-President
4. Dep't of Agrarian Reform
5. Dep't of Agriculture
6. Dep't of Budget & Management
7. Dep't of Education
8. State Universities & Colleges
9. Dep't of Energy
10. Dep't of Environment & Natural Resources
11. Dep't of Finance
12. Dep't of Foreign Affairs
13. Dep't of Health
14. Dep't of the Interior & Local Government
15. Dep't of Justice
16. Dep't of Labor & Employment
17. Dep't of National Defence
18. Dep't of Public Works & Highways
19. Dep't of Science & Technology
20. Dep't of Social Welfare & Development
21. Dep't of Tourism
22. Dep't of Trade & Industry
23. Dep't of Transportation & Communications
24. National Economic & Development Authority
25. Office of the Press Secretary
26. Other Executive Offices
27. Autonomous Region in Muslim Mindanao
28. Joint Legislative-Executive Councils
29. The Judiciary
30. Civil Service Commission
31. Commission on Audit
32. Commission on Elections
33. Office of the Ombudsman
34. Commission on Human Rights
Hilario P. Martinez 13
Except for the OP, OVP, Congress and some other Executive Offices, all line departments and
constitutional bodies have regional representations implementing various programs and projects to
address local development concerns
2010 National Budget (000)
Hilario P. Martinez 14
I bet this National Expenditure Program is even crazier inside
the layers
Dimensions of a General Appropriations
Hilario P. Martinez 15
Fund Allocation of Departments by Region, 2000-2010
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Average
Nationwide 127,843,441 90,957,314 109,302,732 106,266,676 125,586,517 116,520,019 176,204,534 160,157,508 171,236,967 225,566,040 253,467,246 160,478,693
Central Off 48,327,317 66,755,006 69,129,229 69,046,763 75,706,590 68,239,614 39,799,033 87,058,385 101,074,741 104,679,305 117,714,772 81,383,159
NCR 26,389,489 35,120,956 30,229,031 27,430,792 25,181,482 23,212,156 25,199,001 27,513,645 29,421,940 32,115,061 33,040,888 28,149,333
CAR 5,926,247 9,166,879 6,779,862 7,494,097 5,692,705 6,198,145 6,205,861 6,336,044 8,607,556 12,879,287 8,961,924 7,683,942
R1 11,662,001 13,310,560 13,423,960 11,640,189 11,603,285 13,742,839 12,486,583 12,134,068 13,366,967 16,442,264 18,400,188 13,693,371
R2 6,725,014 9,236,624 8,323,150 7,553,263 7,568,490 7,847,099 7,985,709 8,741,904 9,743,062 12,519,166 12,875,780 9,239,736
R3 12,443,960 15,400,930 16,910,420 15,285,980 14,743,728 15,854,714 15,175,350 18,307,480 22,142,949 27,004,949 27,161,912 19,176,387
R4A* 17,529,710 22,358,693 22,792,070 19,964,546 19,431,207 16,324,940 12,885,048 15,560,308 19,770,896 23,052,239 24,698,189 19,386,605
R4B 9,732,826 6,109,170 8,629,880 10,037,073 14,399,151 11,344,535 10,042,106
R5 10,783,861 13,395,756 12,709,767 11,726,971 11,368,316 12,393,336 11,907,910 13,962,800 15,369,659 18,948,884 18,689,898 14,119,727
R6 13,805,617 17,689,054 18,062,837 16,181,960 15,054,609 17,406,096 16,325,089 19,430,462 19,533,347 24,573,474 24,525,922 19,010,422
R7 9,510,295 12,243,543 11,387,628 10,202,138 10,204,065 11,537,685 11,243,083 12,619,756 14,799,714 17,917,684 17,718,184 13,069,993
R8 10,359,629 12,220,863 11,457,137 9,928,122 9,475,044 11,786,264 10,125,544 11,023,284 13,353,929 16,210,811 16,984,947 12,260,565
R9 7,247,352 10,493,618 9,603,051 8,248,684 7,862,366 8,603,171 7,458,229 8,769,882 10,383,587 13,552,761 11,179,213 9,517,883
R10 6,595,899 8,660,787 7,984,335 6,952,199 6,832,421 8,783,189 8,312,351 10,596,599 12,501,161 17,095,440 15,958,011 10,557,301
R11 10,101,329 13,107,849 12,715,309 9,500,987 9,245,664 8,554,074 7,872,830 8,712,058 12,042,608 13,584,412 12,888,846 10,568,532
R12 6,857,358 8,348,549 8,681,320 8,224,765 7,452,622 8,395,597 7,930,568 9,300,902 10,230,166 11,934,662 12,320,574 9,385,686
ARMM 6,172,892 9,262,127 5,198,277 6,289,341 6,268,411 7,288,062 8,778,207 9,227,315 8,834,710 10,153,103 10,083,482 8,013,434
R13 5,019,644 7,194,519 7,418,350 5,519,802 5,578,260 9,122,303 7,660,840 9,488,999 8,782,145 11,726,409 11,205,642 8,500,306
Total 343,301,055 374,919,617 382,108,465 357,457,275 374,855,782 381,542,128 399,664,940 457,571,279 511,233,176 624,355,102 659,220,153 460,889,811
Source: Department of Budget and Management
* Fund Allocation for Regions IVA and IVB effective 2005
(in 000s)
16 Hilario P. Martinez
₱343B
₱659B
And 16 PPAs allocated for varying Special Purpose Funds
1. Budgetary Support to Government Corporations
2. Agriculture and Fisheries Modernization Program
3. Allocations to Local Government Units
4. AFP Modernization Program
5. Calamity Fund
6. Contingent Fund
7. DepEd - School Building Program
8. E-Government Fund
9. General Fund Adjustments
10. International Commitments Fund
11. Miscellaneous Personnel Benefits Fund
12. National Unification Fund
13. Pension and Gratuity Fund
14. Priority Development Assistance Fund
15. Tax Expenditure Fund
16. Debt Service Fund-Interest Payment
Hilario P. Martinez 17
Allocation of Special Funds, 2000-2010
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Average
Nationwide 285,431,855 34,453,215 35,599,660 26,039,125 25,953,949 26,280,736 66,428,915 60,427,034 98,063,384 113,418,222 224,080,693 90,561,526
Central Off 16,607,873 161,872,552 212,540,614 270,238,649 316,256,229 345,022,760 411,902,810 414,029,733 398,711,708 414,254,756 386,094,324 304,321,092
NCR 675,564 12,065,604 11,751,822 13,183,775 10,772,313 13,073,985 14,001,178 15,694,542 17,510,509 20,260,841 19,305,822 13,481,450
CAR 133,693 8,650,546 4,578,844 4,552,287 8,341,620 4,735,729 5,173,475 5,759,901 6,420,273 8,184,327 7,962,531 5,863,021
R1 50,849 5,052,788 7,906,085 8,403,513 4,535,160 8,939,082 9,782,852 10,906,346 12,244,606 14,433,985 14,894,261 8,831,775
R2 555,810 7,416,695 7,382,648 7,596,208 7,563,823 8,028,509 8,841,878 9,923,035 11,499,243 13,480,853 14,518,803 8,800,682
R3 178,183 13,686,901 14,030,650 13,091,046 13,711,465 14,600,991 15,991,917 17,842,705 20,201,817 24,352,761 25,911,271 15,781,792
R4A* 137,925 19,693,391 20,625,290 21,514,204 20,875,953 15,211,571 16,809,868 18,885,299 21,228,738 26,696,297 28,330,115 19,091,695
R4B 6,902,179 4,325,714 8,592,250 9,589,253 11,008,756 11,735,320 8,692,245
R5 142,265 8,807,066 8,945,139 9,478,896 9,451,408 10,041,001 10,992,418 12,248,543 13,747,501 16,071,471 16,773,481 10,609,017
R6 228,433 13,149,313 12,336,402 12,739,769 12,726,747 13,524,920 18,042,508 16,504,615 18,534,245 20,971,575 22,733,002 14,681,048
R7 82,979 11,625,277 11,522,898 10,581,465 10,540,721 11,201,055 12,242,310 13,662,937 15,346,333 18,080,960 18,811,922 12,154,442
R8 236,053 9,925,127 10,126,011 9,191,743 9,189,867 9,745,952 10,662,422 11,915,505 13,315,704 16,413,286 16,205,105 10,629,707
R9 391,527 7,051,866 7,067,073 7,062,284 6,185,981 6,560,003 7,500,731 8,014,113 9,004,227 10,381,141 11,089,803 7,300,795
R10 162,369 6,886,464 6,358,262 8,103,001 8,102,361 8,610,627 9,413,064 10,798,389 11,811,769 14,382,327 14,663,619 9,026,568
R11 2,526,120 10,061,953 9,781,941 7,175,772 7,103,840 7,560,203 8,272,114 9,244,996 10,379,037 12,186,282 12,851,926 8,831,289
R12 69,596 5,716,213 5,576,174 6,474,173 6,372,031 6,769,620 7,426,286 8,356,900 9,916,613 12,265,430 11,977,465 7,356,409
ARMM 5,638,870 5,886,600 5,823,941 6,738,671 7,208,078 7,723,924 8,851,067 10,111,550 13,375,523 13,931,697 8,528,992
R13 87,851 8,326,542 6,665,605 5,492,874 5,485,658 5,825,457 6,373,823 7,109,812 8,130,315 10,426,106 10,008,687 6,721,157
Sub-Total 307,698,945 350,080,383 398,681,718 446,742,725 489,907,797 529,842,458 651,908,207 668,767,721 715,766,824 790,644,898 881,879,847 535,004,168
Debt Service Fund-Interest Payment109,314,000 144,907,791 204,267,000 223,235,000 271,531,000 301,692,000 339,998,000 328,733,000 295,751,000 302,650,000 340,812,000 260,262,799
Net 198,384,945 205,172,592 194,414,718 223,507,725 218,376,797 228,150,458 311,910,207 340,034,721 420,015,824 487,994,898 541,067,847 282,796,289
Source: Department of Budget and Management
* Fund Allocation for Regions IVA and IVB effective 2005
(in 000s)
18 Hilario P. Martinez
₱307B
₱541B
Annual Funds (GAA) 2000-2010
0
200,000,000
400,000,000
600,000,000
800,000,000
1,000,000,000
1,200,000,000
1,400,000,000
1,600,000,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
in 0
00
s
Department Special Purpose
53% 52% 49% 44% 43% 42% 38% 41% 42% 44% 43%
57%
56% 58%
59% 62%
58% 57% 56% 51% 48% 47%
19 Hilario P. Martinez
Fund Allocation of Departments and Special Funds, 2000-2010
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Average
Nationwide 413,275,296 125,410,529 144,902,392 132,305,801 151,540,466 142,800,755 242,633,449 220,584,542 269,300,351 338,984,262 477,547,939 241,753,253
Central Off 64,935,190 228,627,558 281,669,843 339,285,412 391,962,819 413,262,374 451,701,843 501,088,118 499,786,449 518,934,061 503,809,096 381,369,342
NCR 27,065,053 47,186,560 41,980,853 40,614,567 35,953,795 36,286,141 39,200,179 43,208,187 46,932,449 52,375,902 52,346,710 42,104,581
CAR 6,059,940 17,817,425 11,358,706 12,046,384 14,034,325 10,933,874 11,379,336 12,095,945 15,027,829 21,063,614 16,924,455 13,521,985
R1 11,712,850 18,363,348 21,330,045 20,043,702 16,138,445 22,681,921 22,269,435 23,040,414 25,611,573 30,876,249 33,294,449 22,305,676
R2 7,280,824 16,653,319 15,705,798 15,149,471 15,132,313 15,875,608 16,827,587 18,664,939 21,242,305 26,000,019 27,394,583 17,811,524
R3 12,622,143 29,087,831 30,941,070 28,377,026 28,455,193 30,455,705 31,167,267 36,150,185 42,344,766 51,357,710 53,073,183 34,002,916
R4A* 17,667,635 42,052,084 43,417,360 41,478,750 40,307,160 31,536,511 29,694,916 34,445,607 40,999,633 49,748,536 53,028,304 38,579,681
R4B - - - - - 16,635,005 10,434,884 17,222,130 19,626,325 25,407,907 23,079,855 10,218,737
R5 10,926,126 22,202,822 21,654,906 21,205,867 20,819,724 22,434,337 22,900,328 26,211,343 29,117,160 35,020,355 35,463,379 24,359,668
R6 14,034,050 30,838,367 30,399,239 28,921,729 27,781,356 30,931,016 34,367,597 26,211,343 38,067,592 45,545,049 47,258,924 32,214,206
R7 9,593,274 23,868,820 22,910,526 20,783,603 20,744,786 22,738,740 23,485,393 35,935,077 30,146,047 35,998,644 36,530,106 25,703,183
R8 10,595,682 22,145,990 21,583,148 19,119,865 18,664,911 21,532,216 20,787,966 26,282,693 26,669,633 32,624,097 33,190,052 23,017,841
R9 7,638,879 17,545,484 16,670,124 15,310,968 14,048,347 15,163,174 14,958,960 22,938,789 19,387,814 23,933,902 22,269,016 17,260,496
R10 6,758,268 15,547,251 14,342,597 15,055,200 14,934,782 17,393,816 17,725,415 16,783,995 24,312,930 31,477,767 30,621,630 18,632,150
R11 12,627,449 23,169,802 22,497,250 16,676,759 16,349,504 16,114,277 16,144,944 21,394,988 22,421,645 25,770,694 25,740,772 19,900,735
R12 6,926,954 14,064,762 14,257,494 14,698,938 13,824,653 15,165,217 15,356,854 17,957,054 20,146,779 24,200,092 24,298,039 16,445,167
ARMM 6,172,892 14,900,997 11,084,877 12,113,282 13,007,082 14,496,140 16,502,131 18,078,382 18,946,260 23,528,626 24,015,179 15,713,259
R13 5,107,495 15,521,061 14,083,955 11,012,676 11,063,918 14,947,760 14,034,663 16,598,811 16,912,460 22,152,515 21,214,329 14,786,331
Yearly Budget 651,000,000 725,004,010 780,790,183 804,200,000 864,763,579 911,384,586 1,051,573,147 1,126,339,000 1,227,000,000 1,415,000,000 1,541,100,000 1,008,923,137
Yearly Debt Service 109,314,000 144,907,791 204,267,000 223,235,000 271,531,000 301,692,000 339,998,000 328,733,000 295,751,000 302,650,000 340,812,000 260,262,799
Yearly Net 541,686,000 580,096,219 576,523,183 580,965,000 593,232,579 609,692,586 711,575,147 797,606,000 931,249,000 1,112,350,000 1,200,288,000 748,660,338
Source: Department of Budget and Management
* Fund Allocation for Region IVA and IVB effective 2005
(in 000s)
20 Hilario P. Martinez
If the annual government budget grew by this much in 10 years,
shouldn’t we expect a commensurate progress by that much too?
₱542B
₱1.2T
Special Purpose Fund less Debt Servicing
-
100,000,000
200,000,000
300,000,000
400,000,000
500,000,000
600,000,000
700,000,000
800,000,000
900,000,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
In 0
00
s
Net Debt Service Fund-Interest Payment
INC
REA
SE
21 Hilario P. Martinez
A Fund Apportionment Wanting of Social Equity
22 Hilario P. Martinez
An average
of 66% of
yearly Gov’t
Funds
residing in
NCR
METRO-MANILA, A NATIONAL CAPITAL REGION
A Benchmark?
An Unending Development Concern? or
A Key to a Strategic Solution?
Hilario P. Martinez 23
Metro-Manila = National Capital Region
Seat of National Government
Center of Industry, Finance and Commerce
Headquarters to Multinational and Large Enterprises
Center of Education and Training
The only political region composed of urbanized cities
Earns 1/3 share of Gross Domestic Product w/ no Agriculture component
The most densely populated region
Most developed road, transportation and communication infrastructure
Highest density of motor vehicles
Highest number of micro-enterprises
Hilario P. Martinez 24
Peculiarities:
An a
rea 6
36 s
quare
kilo
mete
rs
in a
country
of 3
00,0
00 s
quare
kilo
mete
rs
N.C.R. -
0.21% of the total
land area of
the Philippines
Metro-Manila = National Capital Region
Over population, consumerist orientation
Uncontrolled Water pollution
High incidence of Air pollution
Traffic congestion
High crime rate
Flooding
Garbage and Sewerage problem
Highest incidence of urban poor
Highest number of informal settlers
Hilario P. Martinez 25
Issues and Concerns:
An a
rea 6
36 s
quare
kilo
mete
rs
in a
country
of 3
00,0
00 s
quare
kilo
mete
rs
N.C.R. -
0.21% of the total
land area of
the Philippines
Encourages
more migration
and perpetuates
centralized
governance
Big-time Spending for an Area that is only 0.21% of the Philippines
Build an integrated metro wide commuter
train system
Build better flood control and warning
systems
Build more elevated highways
Build more low-cost housing
projects
Rehabilitate waterways and
drainage systems
Install state-of-the-art traffic management
system
Install a metro-wide electronic
surveillance system
Establish more & better garbage /waste disposal
systems
Construction of more high-rise condominiums & apartments
Hilario P. Martinez 26
Better health facilities and
services
Average % Share of Department Funds (2000-2010) by Region
27 Hilario P. Martinez
Sharing of Special Purpose Fund (2000-2010 Average) by Region
28 Hilario P. Martinez
So who says that Metro-Manila should be the only National Capital?
Hilario P. Martinez 29
We need more funds to solve the perennial
problems of the National Capital!
They can help themselves! We need these monies to make decent lives for non-
Metro-Manilans!
Central
Offices/
NCR Regional
Offices
NATIONAL BUDGET
The Issue!
Hilario P. Martinez 30
The CHALLENGE
Hilario P. Martinez 31
GROSS REGIONAL DOMESTIC PRODUCT (GRDP)
Just a Sum-Total of Production or
A Key Factor in Infusing Social and Economic Equity?
Hilario P. Martinez 32
GRDP 1999 – 2009*
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
PHILIPPINES 918,160,722 954,962,010 1,001,715,338 1,046,083,473 1,069,953,418 1,134,907,014 1,210,497,421 1,276,435,452 1,366,492,669 1,417,087,459 1,432,115,499
NCR 280,861,506 296,859,345 306,378,800 320,019,929 330,040,000 355,158,231 387,751,888 414,292,958 446,669,407 467,453,002 465,688,965
CAR 22,330,210 22,278,263 24,736,337 25,690,330 26,467,608 27,558,078 27,390,829 28,338,279 30,412,839 30,920,809 31,547,310
I 28,430,746 30,325,561 30,354,194 32,166,547 32,263,445 34,099,931 35,927,006 38,136,691 40,350,978 41,168,347 40,737,475
II 21,511,711 21,599,576 23,337,343 23,401,585 21,818,178 24,154,966 23,701,925 25,419,614 27,153,695 27,638,771 28,157,464
III 82,869,131 84,969,647 90,716,577 94,117,375 95,689,197 97,684,293 102,428,717 107,385,259 113,374,390 117,622,250 115,947,511
IV 141,082,969 144,996,192 152,833,569 162,840,800
IVA 138,598,064 143,134,032 150,502,498 157,406,451 165,060,085 168,196,749 165,572,379
IVB 32,123,732 33,606,170 33,740,765 34,526,488 37,648,674 38,790,154 39,105,919
V 25,934,587 25,917,877 28,409,406 29,975,399 30,845,530 32,794,782 34,453,986 35,358,229 38,059,765 39,634,904 42,877,886
VI 65,379,593 67,001,371 70,896,180 74,429,639 79,710,404 86,034,130 87,498,594 91,806,935 98,906,685 103,145,489 109,252,408
VII 63,100,694 65,031,138 71,670,870 74,895,353 75,114,120 80,536,980 86,112,111 90,379,775 98,080,372 101,292,120 102,052,820
VIII 21,798,175 22,955,695 23,198,715 24,216,876 24,312,693 25,993,729 26,663,453 27,979,058 28,954,519 29,939,775 30,482,024
IX 25,661,596 27,001,350 26,938,789 28,382,289 28,571,332 29,959,003 31,971,822 32,631,502 35,041,838 35,761,837 38,196,714
X 34,875,738 36,515,067 39,254,435 39,748,836 46,442,538 49,242,740 58,555,017 62,558,765 67,557,449 71,133,097 73,206,779
XI 56,831,636 60,274,875 62,741,572 64,094,744 48,319,185 51,671,348 55,425,093 57,844,052 61,675,857 63,928,106 67,366,644
XII 24,686,351 25,720,713 26,185,533 27,642,420 37,831,186 40,254,157 41,934,851 44,729,136 47,721,516 49,896,778 50,556,259
ARMM 9,207,369 9,179,349 9,461,849 9,915,275 9,351,189 9,852,212 10,865,931 11,311,801 11,903,558 12,098,904 12,409,350
XIII 13,598,712 14,335,991 14,601,169 14,546,076 12,455,017 13,172,232 15,572,937 16,330,459 17,921,043 18,466,367 18,957,590
Data are as of August 2010
Source: National Statistical Coordination Board
* In 1985 constant prices
33 Hilario P. Martinez
Comparative GRDP*: NCR vs Major Island Groups
100,000,000
150,000,000
200,000,000
250,000,000
300,000,000
350,000,000
400,000,000
450,000,000
500,000,000
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
In 0
00
s
NCR Luzon Visayas Mindanao
* In Constant Prices 1985 34 Hilario P. Martinez
NCR is the only
region without an
agricultural
component in its
GRDP. Yet, it takes
the GRDPs of the
whole of Luzon to
compare to NCR’s
share, not even the
combined share of
Mindanao and
Visayas can.
What does NCR
produce?
The Mirror-Image of a National Government-biased Fund Allocation – a Centralized Economy
Hilario P. Martinez 35
GRDP in % per Region 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
PHILIPPINES 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
NCR 30.59% 31.09% 30.59% 30.59% 30.85% 31.29% 32.03% 32.46% 32.69% 32.99% 32.52%
CAR 2.43% 2.33% 2.47% 2.46% 2.47% 2.43% 2.26% 2.22% 2.23% 2.18% 2.20%
I 3.10% 3.18% 3.03% 3.07% 3.02% 3.00% 2.97% 2.99% 2.95% 2.91% 2.84%
II 2.34% 2.26% 2.33% 2.24% 2.04% 2.13% 1.96% 1.99% 1.99% 1.95% 1.97%
III 9.03% 8.90% 9.06% 9.00% 8.94% 8.61% 8.46% 8.41% 8.30% 8.30% 8.10%
IV 15.37% 15.18% 15.26% 15.57%
IVA 12.95% 12.61% 12.43% 12.33% 12.08% 11.87% 11.56%
IVB 3.00% 2.96% 2.79% 2.70% 2.76% 2.74% 2.73%
V 2.82% 2.71% 2.84% 2.87% 2.88% 2.89% 2.85% 2.77% 2.79% 2.80% 2.99%
VI 7.12% 7.02% 7.08% 7.12% 7.45% 7.58% 7.23% 7.19% 7.24% 7.28% 7.63%
VII 6.87% 6.81% 7.15% 7.16% 7.02% 7.10% 7.11% 7.08% 7.18% 7.15% 7.13%
VIII 2.37% 2.40% 2.32% 2.32% 2.27% 2.29% 2.20% 2.19% 2.12% 2.11% 2.13%
IX 2.79% 2.83% 2.69% 2.71% 2.67% 2.64% 2.64% 2.56% 2.56% 2.52% 2.67%
X 3.80% 3.82% 3.92% 3.80% 4.34% 4.34% 4.84% 4.90% 4.94% 5.02% 5.11%
XI 6.19% 6.31% 6.26% 6.13% 4.52% 4.55% 4.58% 4.53% 4.51% 4.51% 4.70%
XII 2.69% 2.69% 2.61% 2.64% 3.54% 3.55% 3.46% 3.50% 3.49% 3.52% 3.53%
ARMM 1.00% 0.96% 0.94% 0.95% 0.87% 0.87% 0.90% 0.89% 0.87% 0.85% 0.87%
XIII 1.48% 1.50% 1.46% 1.39% 1.16% 1.16% 1.29% 1.28% 1.31% 1.30% 1.32%
36 Hilario P. Martinez
Projecting the GRDP 2010 to be consistent to the Schedule of National Funds (GAA)
Region
GRDP Average
1999-2010 Rank
% Difference
from rank 1
NCR 31.72% 1 0.00%
CAR 2.32% 13 -92.68%
I 2.99% 9 -90.56%
II 2.09% 15 -93.41%
III 8.60% 3 -72.88%
IVA 12.20% 2 -61.54%
IVB 2.80% 11 -91.18%
V 2.84% 10 -91.05%
VI 7.28% 4 -77.04%
VII 7.08% 5 -77.68%
VIII 2.24% 14 -92.95%
IX 2.65% 12 -91.64%
X 4.51% 7 -85.80%
XI 5.08% 6 -83.99%
XII 3.25% 8 -89.76%
ARMM 0.90% 17 -97.16%
XIII 1.33% 16 -95.82%
Projected
GRDP 2010* % Share
PHILIPPINES 1,499,702,169 100.00%
NCR 494,123,550 32.95%
CAR 32,728,498 2.18%
I 43,114,574 2.87%
II 28,431,588 1.90%
III 121,923,179 8.13%
IVA 176,296,603 11.76%
IVB 40,680,620 2.71%
V 43,091,657 2.87%
VI 111,670,030 7.45%
VII 107,715,117 7.18%
VIII 31,417,598 2.09%
IX 38,224,858 2.55%
X 78,431,971 5.23%
XI 62,308,211 4.15%
XII 55,865,655 3.73%
ARMM 12,649,947 0.84%
XIII 18,721,356 1.25%
37 Hilario P. Martinez
* Trending formula applied
The difference emphasizes the inequity of privileges
and opportunities accorded to constituents beyond
Metro-Manila, thus the exodus to the capital region
DEFINING THE URGENCY OF DEVELOPMENT AND ASSISTANCE
Which regions need to be prioritized?
38 Hilario P. Martinez
Classification and Development Time Frame based on GRDP
GRDP Range Development Time Frame Classification
Equal or lesser than 3.50%
10 years Developing
Greater than 3.50% but lesser or equal to 7.00%
15 years Emerging
Greater than 7.00% 20 years Industrializing
39 Hilario P. Martinez
NCR as the Benchmark
NCR’s Average GRDP 1999-2009 -
is almost equal to the aggregate
average of all Luzon regions, and
is almost twice the average GRDP of the
Visayas and Mindanao groups
is the only GRDP that is almost
one-third of the GDP
40 Hilario P. Martinez
NCR 32%
Luzon 34%
Visayas 16%
Mindanao 18%
Classification of Regions According to GRDP* Range
<= than 3.50% >3.50% but <= 7.00% > 7.00%
CAR Region 10 NCR
Region 1 Region 11 Region 3
Region 2 Region 12 Region 4A
Region 4B Region 6
Region 5 Region 7
Region 8
Region 9
ARMM
Region 13
* Based on 1999-2010 GRDP Average 41 Hilario P. Martinez
Variance of Urgency in Development Timeframes*
0 2 4 6 8 10 12 14 16 18 20
NCR
CAR
I
II
III
IVA
IVB
V
VI
VII
VIII
IX
X
XI
XII
ARMM
XIII
Y E A R S
* Based on average GDRP 99-10 42 Hilario P. Martinez
FORMULATING THE GRDP-BASED FUND ALLOCATION SCHEME
Hilario P. Martinez 43
The GRDP-based Fund Allocation Concept
Hilario P. Martinez 44
Update GRDP table
Update Regional Allocation of Expenditure
Program (REAP) table
Project Next Year’s GRDP
and REAP tables
Calculate Required
Increment Factor
Update Development Timeframe for
all Regions
Apply Increment Factor to
Calculate Next Year’s REAP
Calculating the Increment
For NCR: 99-10 GRDP Average of NCR
Dev’t. Timeframe of NCR
based on 99-08 GRDP Ave.
= 31.72%
20 = 1.59% per year
GRDP Difference from NCR
Dev’t. Timeframe of Region
based on 99-10 GRDP Ave.
For Other
Regions:
Dev’t Timeframe:
45 Hilario P. Martinez
Regions 99-10 Est'd Ave
NCR 20
CAR 10
I 10
II 10
III 20
IVA 20
IVB 10
V 10
VI 20
VII 20
VIII 10
IX 10
X 15
XI 15
XII 15
ARMM 10
XIII 10
Regions
GRDP
difference
from NCR's
Required
Annual
Increment
NCR 0.00% 1.59%
CAR 29.40% 2.94%
I 28.72% 2.87%
II 29.63% 2.96%
III 23.12% 1.16%
IVA 19.52% 0.98%
IVB 28.92% 2.89%
V 28.88% 2.89%
VI 24.44% 1.22%
VII 24.64% 1.23%
VIII 29.48% 2.95%
IX 29.07% 2.91%
X 27.21% 1.81%
XI 26.64% 1.78%
XII 28.47% 1.90%
ARMM 30.82% 3.08%
XIII 30.39% 3.04%
Computing for period: 2010
Regions
GRDP
difference
from NCR's
Required
Annual
Increment
GRDP rate
needed to catch
up
NCR 0.00% 1.59% 17.45%
CAR 29.40% 2.94% 5.26%
I 28.72% 2.87% 5.87%
II 29.63% 2.96% 5.05%
III 23.12% 1.16% 9.76%
IVA 19.52% 0.98% 13.18%
IVB 28.92% 2.89% 5.69%
V 28.88% 2.89% 5.73%
VI 24.44% 1.22% 8.50%
VII 24.64% 1.23% 8.31%
VIII 29.48% 2.95% 5.18%
IX 29.07% 2.91% 5.56%
X 27.21% 1.81% 6.32%
XI 26.64% 1.78% 6.86%
XII 28.47% 1.90% 5.14%
ARMM 30.82% 3.08% 3.98%
XIII 30.39% 3.04% 4.36%
122.20%
Determining Desired GRDP Rate – the increment needed for accelerated development
Required Increment +
99-10 Ave GRDP of NCR
2
= the GRDP Rate of NCR
taking into account the
development of other
regions
For NCR:
99-10 Ave GRDP +
Required Increment =
Desired Growth Rate
For Other Regions:
46 Hilario P. Martinez
Finalizing the GRDP Rate as Basis for Fund Allocation using Ratio and Proportion
17.45%
122.20% =
A
100%
17.47%
122.20% = A
100% x
C
D
A
B
=
Where A = Leveled Target GRDP
B = 100%
C = Desired GDRP of a Region
D = Sum of desired GDRP of
all Regions
.
47 Hilario P. Martinez
Regions
GRDP rate
needed to
catch up
Leveled Target
GRDPs
NCR 17.45% 14.2756%
CAR 5.26% 4.3059%
I 5.87% 4.8007%
II 5.05% 4.1353%
III 9.76% 7.9850%
IVA 13.18% 10.7815%
IVB 5.69% 4.6569%
V 5.73% 4.6871%
VI 8.50% 6.9580%
VII 8.31% 6.8005%
VIII 5.18% 4.2417%
IX 5.56% 4.5495%
X 6.32% 5.1713%
XI 6.86% 5.6099%
XII 5.14% 4.2099%
ARMM 3.98% 3.2594%
XIII 4.36% 3.5719%
122.20% 100.00%
The GRDP-based Fund Allocation Scheme as the Equalizing Factor
Regions
GRDP
difference
from NCR's
Required
Annual
Increment
GRDP rate
needed to
catch up
Leveled
Target
GRDPs
Difference
from 99-10
GRDP Ave
NCR 0.00% 1.59% 17.45% 14.2756% -17.44%
CAR 29.40% 2.94% 5.26% 4.3059% 1.98%
I 28.72% 2.87% 5.87% 4.8007% 1.81%
II 29.63% 2.96% 5.05% 4.1353% 2.04%
III 23.12% 1.16% 9.76% 7.9850% -0.62%
IVA 19.52% 0.98% 13.18% 10.7815% -1.42%
IVB 28.92% 2.89% 5.69% 4.6569% 1.86%
V 28.88% 2.89% 5.73% 4.6871% 1.85%
VI 24.44% 1.22% 8.50% 6.9580% -0.32%
VII 24.64% 1.23% 8.31% 6.8005% -0.28%
VIII 29.48% 2.95% 5.18% 4.2417% 2.01%
IX 29.07% 2.91% 5.56% 4.5495% 1.90%
X 27.21% 1.81% 6.32% 5.1713% 0.67%
XI 26.64% 1.78% 6.86% 5.6099% 0.53%
XII 28.47% 1.90% 5.14% 4.2099% 0.96%
ARMM 30.82% 3.08% 3.98% 3.2594% 2.36%
XIII 30.39% 3.04% 4.36% 3.5719% 2.25%
122.20% 100.00%48 Hilario P. Martinez
Applying the 20:80 Ratio to Emphasize the Differentiation of Central Offices and Regional Offices
Present Fund Allocation Ratio:
Nationwide :
Central Offices :
Regional Offices:
39.79% = 477,547,939
13.58% = 503,809,096
46.63% = 218,930,965
Proposed Fund Allocation Ratio:
Nationwide :
Central Offices :
Regional Offices:
20% = 240,057,600
80% = 960,230,400
% for re-distribution is dependent on national imperatives
Net of Nationwide
49 Hilario P. Martinez
OPTIONS
Applying the 20:80 Ratio in each of the eight (8) GRDP-based Fund Allocation Schemes
Hilario P. Martinez 50
Options for Applying the GRDP-based Increment Factor in Fund Allocation
51 Hilario P. Martinez
Re-allocate Department Fund only, Redistribute/Frontload 100% of Nationwide Funds to CO-RO and applying the 20-80 ratio
Re-allocate Department Fund only, Redistribute/Frontload 50% of Nationwide Funds to CO-RO and applying the 20-80 ratio
Re-allocate Special Purpose Fund only, Redistribute/Frontload 100% of Nationwide Funds to CO-RO and applying the 20-80 ratio
Re-allocate Special Purpose Fund only, Redistribute/Frontload 50% of Nationwide Funds to CO-RO and applying the 20-80 ratio
Combine Option 1 and Option 4
Combine Option 2 and Option 4
Combine Option 1 and Option 3
Combine Option 2 and Option 3
2010 Distribution of Department and Special Purpose Funds per GAA
Hilario P. Martinez 52
Targetted
GRDPs 2010 Dep't Fund
2010 Spec'l Purp.
Fund (Net of
Debt Service) 2010 Total Fund Percent to Total
Nationwide 0.00% 253,467,246 224,080,693 477,547,939 39.79%
Central Offices 0.00% 117,714,772 45,282,324 162,997,096 13.58%
NCR 14.28% 33,040,888 19,305,822 52,346,710 4.36%
CAR 4.31% 8,961,924 7,962,531 16,924,455 1.41%
R1 4.80% 18,400,188 14,894,261 33,294,449 2.77%
R2 4.14% 12,875,780 14,518,803 27,394,583 2.28%
R3 7.98% 27,161,912 25,911,271 53,073,183 4.42%
R4A 10.78% 24,698,189 28,330,115 53,028,304 4.42%
R4B 4.66% 11,344,535 11,735,320 23,079,855 1.92%
R5 4.69% 18,689,898 16,773,481 35,463,379 2.95%
R6 6.96% 24,525,922 22,733,002 47,258,924 3.94%
R7 6.80% 17,718,184 18,811,922 36,530,106 3.04%
R8 4.24% 16,984,947 16,205,105 33,190,052 2.77%
R9 4.55% 11,179,213 11,089,803 22,269,016 1.86%
R10 5.17% 15,958,011 14,663,619 30,621,630 2.55%
R11 5.61% 12,888,846 12,851,926 25,740,772 2.14%
R12 4.21% 12,320,574 11,977,465 24,298,039 2.02%
ARMM 3.26% 10,083,482 13,931,697 24,015,179 2.00%
R13 3.57% 11,205,642 10,008,687 21,214,329 1.77%
Total 100.00% 659,220,153 541,067,847 1,200,288,000 100.00%
Government
Funds based
in Metro-
Manila = 58%
Option 1: Re-allocate Department Fund only, Redistribute/Frontload 100% of Nationwide Funds to CO-RO and applying the 20-80 ratio
Hilario P. Martinez 53
Targetted
GRDPs 2010 Dep't Fund
Adjusted 2010
Dep't Fund
Special Purpose
Fund Total
Slide 47
Inc/Dec
Nationwide 0.00% 253,467,246 - 224,080,693 224,080,693 -53%
Central Offices 0.00% 117,714,772 131,844,031 45,282,324 177,126,355 9%
NCR 14.28% 33,040,888 75,285,857 19,305,822 94,591,679 81%
CAR 4.31% 8,961,924 22,708,235 7,962,531 30,670,766 81%
R1 4.80% 18,400,188 25,317,844 14,894,261 40,212,105 21%
R2 4.14% 12,875,780 21,808,505 14,518,803 36,327,308 33%
R3 7.98% 27,161,912 42,110,757 25,911,271 68,022,028 28%
R4A 10.78% 24,698,189 56,859,245 28,330,115 85,189,360 61%
R4B 4.66% 11,344,535 24,559,383 11,735,320 36,294,703 57%
R5 4.69% 18,689,898 24,718,457 16,773,481 41,491,938 17%
R6 6.96% 24,525,922 36,694,809 22,733,002 59,427,811 26%
R7 6.80% 17,718,184 35,864,381 18,811,922 54,676,303 50%
R8 4.24% 16,984,947 22,369,491 16,205,105 38,574,596 16%
R9 4.55% 11,179,213 23,992,787 11,089,803 35,082,590 58%
R10 5.17% 15,958,011 27,272,283 14,663,619 41,935,902 37%
R11 5.61% 12,888,846 29,585,292 12,851,926 42,437,218 65%
R12 4.21% 12,320,574 22,202,131 11,977,465 34,179,596 41%
ARMM 3.26% 10,083,482 17,189,531 13,931,697 31,121,228 30%
R13 3.57% 11,205,642 18,837,133 10,008,687 28,845,820 36%
Total 100.00% 659,220,153 659,220,153 541,067,847 1,200,288,000 0%
10
0%
RE
DIS
TR
IBU
TE
National Government delegating 100% of Nationwide Programs of Department Funds
to the Regions but retaining 100% control of Special Purpose Funds
Option 1: Re-allocate Department Fund only, Redistribute/Frontload 100% of Nationwide Funds to CO-RO and applying the 20-80 ratio
Hilario P. Martinez 54
2010 Total Fund
per GAA
Percent
to Total
Nationwide 477,547,939.00 40%
Central Offices 162,997,096.00 14%
NCR 52,346,710.00 4%
CAR 16,924,455.00 1%
R1 33,294,449.00 3%
R2 27,394,583.00 2%
R3 53,073,183.00 4%
R4A 53,028,304.00 4%
R4B 23,079,855.00 2%
R5 35,463,379.00 3%
R6 47,258,924.00 4%
R7 36,530,106.00 3%
R8 33,190,052.00 3%
R9 22,269,016.00 2%
R10 30,621,630.00 3%
R11 25,740,772.00 2%
R12 24,298,039.00 2%
ARMM 24,015,179.00 2%
R13 21,214,329.00 2%
Total 1,200,288,000.00 100%
Nationwide 19%
Central Offices 15%
NCR 8%
CAR 3% R1
3% R2 3%
R3 6%
R4A 7%
R4B 3%
R5 3%
R6 5%
R7 5%
R8 3%
R9 3%
R10 3%
R11 4%
R12 3%
ARMM 3%
R13 2%
Government Funds based in NCR = 42%
58%
Option 2: Re-allocate Department Fund only, Redistribute/Frontload 50% of Nationwide Funds to CO-RO and applying the 20-80 ratio
Hilario P. Martinez 55
Targetted
GRDPs 2010 Dep't Fund
Adjusted 2010
Dep't Fund
Special Purpose
Fund Total
Slide 47
Inc/Dec
Nationwide 0.00% 253,467,246 126,733,623 224,080,693 350,814,316 -26.54%
Central Offices 0.00% 117,714,772 106,497,306 45,282,324 151,779,630 -6.88%
NCR 14.28% 33,040,888 60,812,316 19,305,822 80,118,138 53.05%
CAR 4.31% 8,961,924 18,342,627 7,962,531 26,305,158 55.43%
R1 4.80% 18,400,188 20,450,544 14,894,261 35,344,805 6.16%
R2 4.14% 12,875,780 17,615,868 14,518,803 32,134,671 17.30%
R3 7.98% 27,161,912 34,015,057 25,911,271 59,926,328 12.91%
R4A 10.78% 24,698,189 45,928,180 28,330,115 74,258,295 40.04%
R4B 4.66% 11,344,535 19,837,896 11,735,320 31,573,216 36.80%
R5 4.69% 18,689,898 19,966,388 16,773,481 36,739,869 3.60%
R6 6.96% 24,525,922 29,640,313 22,733,002 52,373,315 10.82%
R7 6.80% 17,718,184 28,969,533 18,811,922 47,781,455 30.80%
R8 4.24% 16,984,947 18,069,006 16,205,105 34,274,111 3.27%
R9 4.55% 11,179,213 19,380,227 11,089,803 30,470,030 36.83%
R10 5.17% 15,958,011 22,029,247 14,663,619 36,692,866 19.83%
R11 5.61% 12,888,846 23,897,584 12,851,926 36,749,510 42.77%
R12 4.21% 12,320,574 17,933,821 11,977,465 29,911,286 23.10%
ARMM 3.26% 10,083,482 13,884,882 13,931,697 27,816,579 15.83%
R13 3.57% 11,205,642 15,215,736 10,008,687 25,224,423 18.90%
Total 100.00% 659,220,153 659,220,153 541,067,847 1,200,288,000 0.00%
50
% R
ED
IST
RIB
UT
E
National Government delegating 50% of Nationwide Programs of Department Funds
to the Regions but retaining 100% control of Special Purpose Funds
Option 2: Re-allocate Department Fund only, Redistribute/Frontload 50% of Nationwide Funds to CO-RO and applying the 20-80 ratio
Hilario P. Martinez 56
Nationwide 29%
Central Offices 13%
NCR 7%
CAR 2%
R1 3%
R2 3%
R3 5%
R4A 6%
R4B 3%
R5 3%
R6 4%
R7 4%
R8 3%
R9 3%
R10 3%
R11 3%
R12 2%
ARMM 2%
R13 2%
Government Funds based in Metro-Manila = 49%
2010 Total Fund
per GAA
Percent
to Total
Nationwide 477,547,939.00 40%
Central Offices 162,997,096.00 14%
NCR 52,346,710.00 4%
CAR 16,924,455.00 1%
R1 33,294,449.00 3%
R2 27,394,583.00 2%
R3 53,073,183.00 4%
R4A 53,028,304.00 4%
R4B 23,079,855.00 2%
R5 35,463,379.00 3%
R6 47,258,924.00 4%
R7 36,530,106.00 3%
R8 33,190,052.00 3%
R9 22,269,016.00 2%
R10 30,621,630.00 3%
R11 25,740,772.00 2%
R12 24,298,039.00 2%
ARMM 24,015,179.00 2%
R13 21,214,329.00 2%
Total 1,200,288,000.00 100%
58%
Option 3: Re-allocate Special Purpose Fund only, Redistribute/ Frontload 100% of Nationwide Funds to CO-RO and applying the 20-80 ratio
Hilario P. Martinez 57
Targetted
GRDPs
2010 Spec'l
Purpose Fund
(Net of Debt
Servicing)
Adjusted 2010
Spec'l Purpose
Fund 2010 Dep't Fund Total
Slide 47
Inc/Dec
Nationwide 0.00% 224,080,693 - 253,467,246 253,467,246 -46.92%
Central Offices 0.00% 45,282,324 108,213,569 117,714,772 225,928,341 38.61%
NCR 14.28% 19,305,822 61,792,341 33,040,888 94,833,229 81.16%
CAR 4.31% 7,962,531 18,638,228 8,961,924 27,600,152 63.08%
R1 4.80% 14,894,261 20,780,116 18,400,188 39,180,304 17.68%
R2 4.14% 14,518,803 17,899,758 12,875,780 30,775,538 12.34%
R3 7.98% 25,911,271 34,563,228 27,161,912 61,725,140 16.30%
R4A 10.78% 28,330,115 46,668,338 24,698,189 71,366,527 34.58%
R4B 4.66% 11,735,320 20,157,595 11,344,535 31,502,130 36.49%
R5 4.69% 16,773,481 20,288,157 18,689,898 38,978,055 9.91%
R6 6.96% 22,733,002 30,117,983 24,525,922 54,643,905 15.63%
R7 6.80% 18,811,922 29,436,393 17,718,184 47,154,577 29.08%
R8 4.24% 16,205,105 18,360,198 16,984,947 35,345,145 6.49%
R9 4.55% 11,089,803 19,692,550 11,179,213 30,871,763 38.63%
R10 5.17% 14,663,619 22,384,260 15,958,011 38,342,271 25.21%
R11 5.61% 12,851,926 24,282,707 12,888,846 37,171,553 44.41%
R12 4.21% 11,977,465 18,222,834 12,320,574 30,543,408 25.70%
ARMM 3.26% 13,931,697 14,108,644 10,083,482 24,192,126 0.74%
R13 3.57% 10,008,687 15,460,946 11,205,642 26,666,588 25.70%
Total 100.00% 541,067,847 541,067,847 659,220,153 1,200,288,000 0.00%
10
0%
RE
DIS
TR
IBU
TE
National Government retaining 100% of Nationwide Programs of Department Funds
but delegating 100% of Special Purpose Funds to the Regions
Option 3: Re-allocate Special Purpose Fund only, Redistribute/Frontload 100% of Nationwide Funds to CO-RO and applying the 20-80 ratio
Hilario P. Martinez 58
2010 Total Fund
per GAA
Percent
to Total
Nationwide 477,547,939.00 40%
Central Offices 162,997,096.00 14%
NCR 52,346,710.00 4%
CAR 16,924,455.00 1%
R1 33,294,449.00 3%
R2 27,394,583.00 2%
R3 53,073,183.00 4%
R4A 53,028,304.00 4%
R4B 23,079,855.00 2%
R5 35,463,379.00 3%
R6 47,258,924.00 4%
R7 36,530,106.00 3%
R8 33,190,052.00 3%
R9 22,269,016.00 2%
R10 30,621,630.00 3%
R11 25,740,772.00 2%
R12 24,298,039.00 2%
ARMM 24,015,179.00 2%
R13 21,214,329.00 2%
Total 1,200,288,000.00 100%
Nationwide 21%
Central Offices 19%
NCR 8%
CAR 2%
R1 3%
R2 3%
R3 5%
R4A 6%
R4B 3%
R5 3%
R6 5%
R7 4%
R8 3%
R9 3%
R10 3%
R11 3%
R12 3%
ARMM 2%
R13 2%
Government Funds based in Metro-Manila = 48%
58%
Option 4: Re-allocate Special Purpose Fund only, Redistribute/ Frontload 50% of Nationwide Funds to CO-RO and applying the 20-80 ratio
Hilario P. Martinez 59
Targetted
GRDPs
2010 Spec'l
Purpose Fund
(Net of Debt
Servicing)
Adjusted 2010
Spec'l Purpose
Fund
2010 Dep't
Fund Total
Slide 47
Inc/Dec
Nationwide 0.00% 224,080,693 112,040,347 253,467,246 365,507,593 -23.46%
Central Offices 0.00% 45,282,324 76,749,035 117,714,772 194,463,807 19.31%
NCR 14.28% 19,305,822 50,289,698 33,040,888 83,330,586 59.19%
CAR 4.31% 7,962,531 15,168,722 8,961,924 24,130,646 42.58%
R1 4.80% 14,894,261 16,911,898 18,400,188 35,312,086 6.06%
R2 4.14% 14,518,803 14,567,718 12,875,780 27,443,498 0.18%
R3 7.98% 25,911,271 28,129,284 27,161,912 55,291,196 4.18%
R4A 10.78% 28,330,115 37,981,028 24,698,189 62,679,217 18.20%
R4B 4.66% 11,735,320 16,405,259 11,344,535 27,749,794 20.23%
R5 4.69% 16,773,481 16,511,517 18,689,898 35,201,415 -0.74%
R6 6.96% 22,733,002 24,511,521 24,525,922 49,037,443 3.76%
R7 6.80% 18,811,922 23,956,809 17,718,184 41,674,993 14.08%
R8 4.24% 16,205,105 14,942,448 16,984,947 31,927,395 -3.80%
R9 4.55% 11,089,803 16,026,782 11,179,213 27,205,995 22.17%
R10 5.17% 14,663,619 18,217,431 15,958,011 34,175,442 11.61%
R11 5.61% 12,851,926 19,762,482 12,888,846 32,651,328 26.85%
R12 4.21% 11,977,465 14,830,654 12,320,574 27,151,228 11.74%
ARMM 3.26% 13,931,697 11,482,320 10,083,482 21,565,802 -10.20%
R13 3.57% 10,008,687 12,582,891 11,205,642 23,788,533 12.13%
Total 100.00% 541,067,847 541,067,847 659,220,153 1,200,288,000 0.00%
50
% R
ED
IST
RIB
UT
E
National Government retaining 100% of Nationwide Programs of Department
Funds but delegating 50% of Special Purpose Funds to the Regions
Option 4: Re-allocate Special Purpose Fund only, Redistribute/Frontload 50% of Nationwide Funds to CO-RO and applying the 20-80 ratio
Hilario P. Martinez 60
2010 Total Fund
per GAA
Percent
to Total
Nationwide 477,547,939.00 40%
Central Offices 162,997,096.00 14%
NCR 52,346,710.00 4%
CAR 16,924,455.00 1%
R1 33,294,449.00 3%
R2 27,394,583.00 2%
R3 53,073,183.00 4%
R4A 53,028,304.00 4%
R4B 23,079,855.00 2%
R5 35,463,379.00 3%
R6 47,258,924.00 4%
R7 36,530,106.00 3%
R8 33,190,052.00 3%
R9 22,269,016.00 2%
R10 30,621,630.00 3%
R11 25,740,772.00 2%
R12 24,298,039.00 2%
ARMM 24,015,179.00 2%
R13 21,214,329.00 2%
Total 1,200,288,000.00 100%
Nationwide 30%
Central Offices 16%
NCR 7%
CAR 2%
R1 3%
R2 2%
R3 5%
R4A 5% R4B
2%
R5 3%
R6 4%
R7 3%
R8 3%
R9 2%
R10 3%
R11 3%
R12 2%
ARMM 2%
R13 2%
Government Funds based in Metro-Manila = 53%
58%
Option 5: Combine Option 1 and Option 4 (100% Nationwide Fund and 50% Special Purpose Fund Re-allocated)
Hilario P. Martinez 61
Targetted
GRDPs
2010 Department
Fund
Adjusted 2010
Dep't Fund
2010 Spec'l
Purpose Fund
(Net of Debt
Servicing)
Adjusted 2010
Spec'l Purpose
Fund (Net of
Debt Service)
Total Adjusted
2010 Funds
Slide 47
Inc/Dec
Nationwide 0.00% 253,467,246 - 224,080,693 112,040,347 112,040,347 -76.54%
Central Offices 0.00% 117,714,772 131,844,031 45,282,324 76,749,035 208,593,066 27.97%
NCR 14.28% 33,040,888 75,285,857 19,305,822 50,289,698 125,575,555 139.89%
CAR 4.31% 8,961,924 22,708,235 7,962,531 15,168,722 37,876,957 123.80%
R1 4.80% 18,400,188 25,317,844 14,894,261 16,911,898 42,229,742 26.84%
R2 4.14% 12,875,780 21,808,505 14,518,803 14,567,718 36,376,224 32.79%
R3 7.98% 27,161,912 42,110,757 25,911,271 28,129,284 70,240,042 32.35%
R4A 10.78% 24,698,189 56,859,245 28,330,115 37,981,028 94,840,273 78.85%
R4B 4.66% 11,344,535 24,559,383 11,735,320 16,405,259 40,964,642 77.49%
R5 4.69% 18,689,898 24,718,457 16,773,481 16,511,517 41,229,974 16.26%
R6 6.96% 24,525,922 36,694,809 22,733,002 24,511,521 61,206,331 29.51%
R7 6.80% 17,718,184 35,864,381 18,811,922 23,956,809 59,821,190 63.76%
R8 4.24% 16,984,947 22,369,491 16,205,105 14,942,448 37,311,939 12.42%
R9 4.55% 11,179,213 23,992,787 11,089,803 16,026,782 40,019,570 79.71%
R10 5.17% 15,958,011 27,272,283 14,663,619 18,217,431 45,489,714 48.55%
R11 5.61% 12,888,846 29,585,292 12,851,926 19,762,482 49,347,774 91.71%
R12 4.21% 12,320,574 22,202,131 11,977,465 14,830,654 37,032,785 52.41%
ARMM 3.26% 10,083,482 17,189,531 13,931,697 11,482,320 28,671,852 19.39%
R13 3.57% 11,205,642 18,837,133 10,008,687 12,582,891 31,420,025 48.11%
Total 100.00% 659,220,153 659,220,153 541,067,847 541,067,847 1,200,288,000 0.00%
50
% R
ED
IST
RIB
UT
E
10
0%
RE
DIS
TR
IBU
TE
National Government delegating 100% of Nationwide Programs of Department Funds and
50% of Special Purpose Funds to the Regions, National Government retains 50% of latter
Option 5: Combine Option 1 and Option 4 (100% Nationwide Fund and 50% Special Purpose Fund Re-allocated)
Hilario P. Martinez 62
Nationwide 9%
Central Offices 17%
NCR 10%
CAR 3% R1
4% R2 3%
R3 6%
R4A 8%
R4B 3%
R5 3%
R6 5%
R7 5%
R8 3%
R9 3%
R10 4%
R11 4%
R12 3%
ARMM 2%
R13 3%
Government Funds based in Metro-Manila = 36%
2010 Total Fund
per GAA
Percent
to Total
Nationwide 477,547,939.00 40%
Central Offices 162,997,096.00 14%
NCR 52,346,710.00 4%
CAR 16,924,455.00 1%
R1 33,294,449.00 3%
R2 27,394,583.00 2%
R3 53,073,183.00 4%
R4A 53,028,304.00 4%
R4B 23,079,855.00 2%
R5 35,463,379.00 3%
R6 47,258,924.00 4%
R7 36,530,106.00 3%
R8 33,190,052.00 3%
R9 22,269,016.00 2%
R10 30,621,630.00 3%
R11 25,740,772.00 2%
R12 24,298,039.00 2%
ARMM 24,015,179.00 2%
R13 21,214,329.00 2%
Total 1,200,288,000.00 100%
58%
Option 6: Combine Option 2 and Option 4 (50% Nationwide Fund and 50% Special Purpose Fund Re-allocated)
Hilario P. Martinez 63
Targetted
GRDPs 2010 Dep't Fund
Adjusted 2010
Dep't Fund
2010 Spec'l
Purpose Fund
(Net of Debt
Servicing)
Adjusted 2010
Spec'l Purpose
Fund (Net of
Debt Service)
Total Adjusted
2010 Funds
Slide 47
Inc/(Dec)
Nationwide 0.00% 253,467,246 126,733,623 224,080,693 112,040,347 238,773,970 -50.00%
Central Offices 0.00% 117,714,772 106,497,306 45,282,324 76,749,035 183,246,341 12.42%
NCR 14.28% 33,040,888 60,812,316 19,305,822 50,289,698 111,102,015 112.24%
CAR 4.31% 8,961,924 18,342,627 7,962,531 15,168,722 33,511,349 98.01%
R1 4.80% 18,400,188 20,450,544 14,894,261 16,911,898 37,362,442 12.22%
R2 4.14% 12,875,780 17,615,868 14,518,803 14,567,718 32,183,587 17.48%
R3 7.98% 27,161,912 34,015,057 25,911,271 28,129,284 62,144,341 17.09%
R4A 10.78% 24,698,189 45,928,180 28,330,115 37,981,028 83,909,209 58.23%
R4B 4.66% 11,344,535 19,837,896 11,735,320 16,405,259 36,243,155 57.03%
R5 4.69% 18,689,898 19,966,388 16,773,481 16,511,517 36,477,905 2.86%
R6 6.96% 24,525,922 29,640,313 22,733,002 24,511,521 54,151,834 14.59%
R7 6.80% 17,718,184 28,969,533 18,811,922 23,956,809 52,926,342 44.88%
R8 4.24% 16,984,947 18,069,006 16,205,105 14,942,448 33,011,453 -0.54%
R9 4.55% 11,179,213 19,380,227 11,089,803 16,026,782 35,407,009 59.00%
R10 5.17% 15,958,011 22,029,247 14,663,619 18,217,431 40,246,678 31.43%
R11 5.61% 12,888,846 23,897,584 12,851,926 19,762,482 43,660,066 69.61%
R12 4.21% 12,320,574 17,933,821 11,977,465 14,830,654 32,764,475 34.84%
ARMM 3.26% 10,083,482 13,884,882 13,931,697 11,482,320 25,367,202 5.63%
R13 3.57% 11,205,642 15,215,736 10,008,687 12,582,891 27,798,627 31.04%
Total 100.00% 659,220,153 659,220,153 541,067,847 541,067,847 1,200,288,000 0.00%
50
% R
ED
IST
RIB
UT
E
50
% R
ED
IST
RIB
UT
E
National Government delegating 50% of Nationwide Programs of Department Funds and
50% of Special Purpose Funds to the Regions, but retaining 50% of both
Hilario P. Martinez 64
Nationwide 20%
Central Offices 15%
NCR 9%
CAR 3%
R1 3%
R2 3%
R3 5%
R4A 7%
R4B 3%
R5 3%
R6 5%
R7 4%
R8 3%
R9 3%
R10 3%
R11 4%
R12 3%
ARMM 2%
R13 2%
Government Funds based in Metro-Manila = 44%
2010 Total Fund
per GAA
Percent
to Total
Nationwide 477,547,939.00 40%
Central Offices 162,997,096.00 14%
NCR 52,346,710.00 4%
CAR 16,924,455.00 1%
R1 33,294,449.00 3%
R2 27,394,583.00 2%
R3 53,073,183.00 4%
R4A 53,028,304.00 4%
R4B 23,079,855.00 2%
R5 35,463,379.00 3%
R6 47,258,924.00 4%
R7 36,530,106.00 3%
R8 33,190,052.00 3%
R9 22,269,016.00 2%
R10 30,621,630.00 3%
R11 25,740,772.00 2%
R12 24,298,039.00 2%
ARMM 24,015,179.00 2%
R13 21,214,329.00 2%
Total 1,200,288,000.00 100%
58%
Option 6: Combine Option 2 and Option 4 (50% Nationwide Fund and 50% Special Purpose Fund Re-allocated)
Option 7: Combine Option 1 and Option 3 (100% Nationwide Fund and 100% Special Purpose Fund Re-allocated)
Hilario P. Martinez 65
Targetted
GRDPs 2010 Dep't Fund
Adjusted 2010
Dep't Fund
2010 Spec'l
Purpose Fund
(Net of Debt
Servicing)
Adjusted 2010
Spec'l Purpose
Fund (Net of
Debt Service)
Adjusted 2010
Total
Slide 47
Inc/(Dec)
Nationwide 0.00% 253,467,246 - 224,080,693 - - -100.00%
Central Offices 0.00% 117,714,772 131,844,031 45,282,324 108,213,569 240,057,600 47.28%
NCR 14.28% 33,040,888 75,285,857 19,305,822 61,792,341 137,078,197 161.87%
CAR 4.31% 8,961,924 22,708,235 7,962,531 18,638,228 41,346,463 144.30%
R1 4.80% 18,400,188 25,317,844 14,894,261 20,780,116 46,097,960 38.46%
R2 4.14% 12,875,780 21,808,505 14,518,803 17,899,758 39,708,263 44.95%
R3 7.98% 27,161,912 42,110,757 25,911,271 34,563,228 76,673,986 44.47%
R4A 10.78% 24,698,189 56,859,245 28,330,115 46,668,338 103,527,583 95.23%
R4B 4.66% 11,344,535 24,559,383 11,735,320 20,157,595 44,716,978 93.75%
R5 4.69% 18,689,898 24,718,457 16,773,481 20,288,157 45,006,614 26.91%
R6 6.96% 24,525,922 36,694,809 22,733,002 30,117,983 66,812,792 41.38%
R7 6.80% 17,718,184 35,864,381 18,811,922 29,436,393 65,300,774 78.76%
R8 4.24% 16,984,947 22,369,491 16,205,105 18,360,198 40,729,689 22.72%
R9 4.55% 11,179,213 23,992,787 11,089,803 19,692,550 43,685,337 96.17%
R10 5.17% 15,958,011 27,272,283 14,663,619 22,384,260 49,656,543 62.16%
R11 5.61% 12,888,846 29,585,292 12,851,926 24,282,707 53,867,999 109.27%
R12 4.21% 12,320,574 22,202,131 11,977,465 18,222,834 40,424,966 66.37%
ARMM 3.26% 10,083,482 17,189,531 13,931,697 14,108,644 31,298,175 30.33%
R13 3.57% 11,205,642 18,837,133 10,008,687 15,460,946 34,298,079 61.67%
Total 100.00% 659,220,153 659,220,153 541,067,847 541,067,847 1,200,288,000 0.00%
10
0%
RE
DIS
TR
IBU
TE
10
0%
RE
DIS
TR
IBU
TE
National Government delegating 100% of Nationwide Programs of Department Funds and
Special Purpose Funds to the Regions, National Government retains retaining none
Hilario P. Martinez 66
Nationwide 0%
Central Offices 20%
NCR 11%
CAR 3%
R1 4% R2
3%
R3 6%
R4A 9%
R4B 4%
R5 4%
R6 6%
R7 5%
R8 3%
R9 4%
R10 4%
R11 4%
R12 3%
ARMM 3%
R13 3%
Government Funds based in Metro-Manila = 31%
2010 Total Fund
per GAA
Percent
to Total
Nationwide 477,547,939.00 40%
Central Offices 162,997,096.00 14%
NCR 52,346,710.00 4%
CAR 16,924,455.00 1%
R1 33,294,449.00 3%
R2 27,394,583.00 2%
R3 53,073,183.00 4%
R4A 53,028,304.00 4%
R4B 23,079,855.00 2%
R5 35,463,379.00 3%
R6 47,258,924.00 4%
R7 36,530,106.00 3%
R8 33,190,052.00 3%
R9 22,269,016.00 2%
R10 30,621,630.00 3%
R11 25,740,772.00 2%
R12 24,298,039.00 2%
ARMM 24,015,179.00 2%
R13 21,214,329.00 2%
Total 1,200,288,000.00 100%
58%
Option 7: Combine Option 1 and Option 3 (100% Nationwide Fund and 100% Special Purpose Fund Re-allocated)
Option 8: Combine Option 2 and Option 3 (50% Nationwide Fund and 100% Special Purpose Fund Re-allocated)
Hilario P. Martinez 67
Targetted
GRDPs 2010 Dep't Fund
Adjusted 2010
Dep't Fund
2010 Spec'l
Purpose Fund
(Net of Debt
Servicing)
Adjusted 2010
Spec'l Purpose
Fund (Net of
Debt Service)
Adjusted 2010
Total
Slide 47
Inc/(Dec)
Nationwide 0.00% 253,467,246 126,733,623 224,080,693 - 126,733,623 -73.46%
Central Offices 0.00% 117,714,772 106,497,306 45,282,324 108,213,569 214,710,875 31.73%
NCR 14.28% 33,040,888 60,812,316 19,305,822 61,792,341 122,604,657 134.22%
CAR 4.31% 8,961,924 18,342,627 7,962,531 18,638,228 36,980,855 118.51%
R1 4.80% 18,400,188 20,450,544 14,894,261 20,780,116 41,230,660 23.84%
R2 4.14% 12,875,780 17,615,868 14,518,803 17,899,758 35,515,626 29.64%
R3 7.98% 27,161,912 34,015,057 25,911,271 34,563,228 68,578,285 29.21%
R4A 10.78% 24,698,189 45,928,180 28,330,115 46,668,338 92,596,519 74.62%
R4B 4.66% 11,344,535 19,837,896 11,735,320 20,157,595 39,995,491 73.29%
R5 4.69% 18,689,898 19,966,388 16,773,481 20,288,157 40,254,545 13.51%
R6 6.96% 24,525,922 29,640,313 22,733,002 30,117,983 59,758,296 26.45%
R7 6.80% 17,718,184 28,969,533 18,811,922 29,436,393 58,405,926 59.88%
R8 4.24% 16,984,947 18,069,006 16,205,105 18,360,198 36,429,204 9.76%
R9 4.55% 11,179,213 19,380,227 11,089,803 19,692,550 39,072,777 75.46%
R10 5.17% 15,958,011 22,029,247 14,663,619 22,384,260 44,413,507 45.04%
R11 5.61% 12,888,846 23,897,584 12,851,926 24,282,707 48,180,292 87.18%
R12 4.21% 12,320,574 17,933,821 11,977,465 18,222,834 36,156,655 48.80%
ARMM 3.26% 10,083,482 13,884,882 13,931,697 14,108,644 27,993,526 16.57%
R13 3.57% 11,205,642 15,215,736 10,008,687 15,460,946 30,676,682 44.60%
Total 100.00% 659,220,153 659,220,153 541,067,847 541,067,847 1,200,288,000 0.00%
10
0%
RE
DIS
TR
IBU
TE
50%
RE
DIS
TR
IBU
TE
National Government delegating 50% of Nationwide Programs of Department Funds and
100% of Special Purpose Funds to the Regions
Hilario P. Martinez 68
Nationwide 11%
Central Offices 18%
NCR 10%
CAR 3% R1
3% R2 3%
R3 6%
R4A 8%
R4B 3%
R5 3%
R6 5%
R7 5%
R8 3%
R9 3%
R10 4%
R11 4%
R12 3%
ARMM 2%
R13 3%
Government Funds based in Metro-Manila = 39%
2010 Total Fund
per GAA
Percent
to Total
Nationwide 477,547,939.00 40%
Central Offices 162,997,096.00 14%
NCR 52,346,710.00 4%
CAR 16,924,455.00 1%
R1 33,294,449.00 3%
R2 27,394,583.00 2%
R3 53,073,183.00 4%
R4A 53,028,304.00 4%
R4B 23,079,855.00 2%
R5 35,463,379.00 3%
R6 47,258,924.00 4%
R7 36,530,106.00 3%
R8 33,190,052.00 3%
R9 22,269,016.00 2%
R10 30,621,630.00 3%
R11 25,740,772.00 2%
R12 24,298,039.00 2%
ARMM 24,015,179.00 2%
R13 21,214,329.00 2%
Total 1,200,288,000.00 100%
58%
Option 8: Combine Option 2 and Option 3 (50% Nationwide Fund and 100% Special Purpose Fund Re-allocated)
Comparative Changes Applied to 2010 Fund Allocation (Options 1 to 8)
Hilario P. Martinez 69
Per 2010
GAA Option 1 Option 2 Option 3 Option 4 Option 5 Option 6 Option 7 Option 8 AverageNationwide 477,547,939 224,080,693 350,814,316 253,467,246 365,507,593 112,040,347 238,773,970 - 126,733,623 208,927,223
Central Offices 162,997,096 177,126,355 151,779,630 225,928,341 194,463,807 208,593,066 183,246,341 240,057,600 214,710,875 199,488,252
NCR 52,346,710 94,591,679 80,118,138 94,833,229 83,330,586 125,575,555 111,102,015 137,078,197 122,604,657 106,154,257
CAR 16,924,455 30,670,766 26,305,158 27,600,152 24,130,646 37,876,957 33,511,349 41,346,463 36,980,855 32,302,793
R1 33,294,449 40,212,105 35,344,805 39,180,304 35,312,086 42,229,742 37,362,442 46,097,960 41,230,660 39,621,263
R2 27,394,583 36,327,308 32,134,671 30,775,538 27,443,498 36,376,224 32,183,587 39,708,263 35,515,626 33,808,089
R3 53,073,183 68,022,028 59,926,328 61,725,140 55,291,196 70,240,042 62,144,341 76,673,986 68,578,285 65,325,168
R4A 53,028,304 85,189,360 74,258,295 71,366,527 62,679,217 94,840,273 83,909,209 103,527,583 92,596,519 83,545,873
R4B 23,079,855 36,294,703 31,573,216 31,502,130 27,749,794 40,964,642 36,243,155 44,716,978 39,995,491 36,130,014
R5 35,463,379 41,491,938 36,739,869 38,978,055 35,201,415 41,229,974 36,477,905 45,006,614 40,254,545 39,422,540
R6 47,258,924 59,427,811 52,373,315 54,643,905 49,037,443 61,206,331 54,151,834 66,812,792 59,758,296 57,176,466
R7 36,530,106 54,676,303 47,781,455 47,154,577 41,674,993 59,821,190 52,926,342 65,300,774 58,405,926 53,467,695
R8 33,190,052 38,574,596 34,274,111 35,345,145 31,927,395 37,311,939 33,011,453 40,729,689 36,429,204 35,950,442
R9 22,269,016 35,082,590 30,470,030 30,871,763 27,205,995 40,019,570 35,407,009 43,685,337 39,072,777 35,226,884
R10 30,621,630 41,935,902 36,692,866 38,342,271 34,175,442 45,489,714 40,246,678 49,656,543 44,413,507 41,369,115
R11 25,740,772 42,437,218 36,749,510 37,171,553 32,651,328 49,347,774 43,660,066 53,867,999 48,180,292 43,008,218
R12 24,298,039 34,179,596 29,911,286 30,543,408 27,151,228 37,032,785 32,764,475 40,424,966 36,156,655 33,520,550
ARMM 24,015,179 31,121,228 27,816,579 24,192,126 21,565,802 28,671,852 25,367,202 31,298,175 27,993,526 27,253,311
R13 21,214,329 28,845,820 25,224,423 26,666,588 23,788,533 31,420,025 27,798,627 34,298,079 30,676,682 28,589,847
Total 1,200,288,000 1,200,288,000 1,200,288,000 1,200,288,000 1,200,288,000 1,200,288,000 1,200,288,000 1,200,288,000 1,200,288,000 1,200,288,000
Comparative Changes Applied to 2010 Fund Allocation (Options 1 to 8, in percent)
Hilario P. Martinez 70
Per 2010
GAA Option 1 Option 2 Option 3 Option 4 Option 5 Option 6 Option 7 Option 8 Average
Nationwide 39.79% 18.67% 29.23% 21.12% 30.45% 9.33% 19.89% 0.00% 10.56% 17.41%
Central Offices 13.58% 14.76% 12.65% 18.82% 16.20% 17.38% 15.27% 20.00% 17.89% 16.62%
NCR 4.36% 7.88% 6.67% 7.90% 6.94% 10.46% 9.26% 11.42% 10.21% 8.84%
CAR 1.41% 2.56% 2.19% 2.30% 2.01% 3.16% 2.79% 3.44% 3.08% 2.69%
R1 2.77% 3.35% 2.94% 3.26% 2.94% 3.52% 3.11% 3.84% 3.44% 3.30%
R2 2.28% 3.03% 2.68% 2.56% 2.29% 3.03% 2.68% 3.31% 2.96% 2.82%
R3 4.42% 5.67% 4.99% 5.14% 4.61% 5.85% 5.18% 6.39% 5.71% 5.44%
R4A 4.42% 7.10% 6.19% 5.95% 5.22% 7.90% 6.99% 8.63% 7.71% 6.96%
R4B 1.92% 3.02% 2.63% 2.62% 2.31% 3.41% 3.02% 3.73% 3.33% 3.01%
R5 2.95% 3.46% 3.06% 3.25% 2.93% 3.44% 3.04% 3.75% 3.35% 3.28%
R6 3.94% 4.95% 4.36% 4.55% 4.09% 5.10% 4.51% 5.57% 4.98% 4.76%
R7 3.04% 4.56% 3.98% 3.93% 3.47% 4.98% 4.41% 5.44% 4.87% 4.45%
R8 2.77% 3.21% 2.86% 2.94% 2.66% 3.11% 2.75% 3.39% 3.04% 3.00%
R9 1.86% 2.92% 2.54% 2.57% 2.27% 3.33% 2.95% 3.64% 3.26% 2.93%
R10 2.55% 3.49% 3.06% 3.19% 2.85% 3.79% 3.35% 4.14% 3.70% 3.45%
R11 2.14% 3.54% 3.06% 3.10% 2.72% 4.11% 3.64% 4.49% 4.01% 3.58%
R12 2.02% 2.85% 2.49% 2.54% 2.26% 3.09% 2.73% 3.37% 3.01% 2.79%
ARMM 2.00% 2.59% 2.32% 2.02% 1.80% 2.39% 2.11% 2.61% 2.33% 2.27%
R13 1.77% 2.40% 2.10% 2.22% 1.98% 2.62% 2.32% 2.86% 2.56% 2.38%
Total 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Fund based
in MM57.73% 41.31% 48.55% 47.84% 53.60% 37.18% 44.42% 31.42% 38.66% 42.87%
5 2 3 1 7 4 8 6Rank
The options are ranked according to the aggregate sum (in %) of funds for
Nationwide, Central Offices and NCR, all are Metro-Manila based
Probable Criteria for Selection of Appropriate Option/s
Presence of National Government Agencies in all the regions
Readiness of NGAs’ regional offices to plan, develop and implement service area-specific programs and projects
Special purpose funds for automatic appropriation, defense and security matters and the like should be retained under the purview of the national government
Maturity of national development programs and projects for decentralization
Degree of coordination among government agencies with interfacing programs and projects
Degree of urgency expressed by regional constituents for accelerated development of programs and projects – availability of regional strategic plan
Extent of decentralization prevailing in a department/agency
Hilario P. Martinez 71
LIKELY RECOMMENDED OPTION: Option 6: Re-allocate 50% of Department and Special Purpose Funds, Frontload 50% of Nationwide, and Apply 20:80 Ratio
Hilario P. Martinez 72
Nationwide – 39.79%
Nationwide – 19.89%
Central Offices 13.58%
Central Offices 15.27%
NCR
NCR
CA
R
CA
R
R1
R1
R2
R2
R3
R3
R4A
R4A
R4
B
R4B
R5
R5
R6
R6
R7
R7
R8
R8
R9
R9
R1
0
R10
R1
1
R11
R1
2
R12
AR
MM
A
RM
M
R1
3
R13
- 200,000,000 400,000,000 600,000,000 800,000,000 1,000,000,000 1,200,000,000
OPTION 6 ADJUSTED 2010 FUNDS
2010 GAA FUNDS
• Maintains flexibility of central government to respond to local situations
• Affords the ability of regions to respond to its own development imperatives
20% 80%
The Literal Change of Option 6
Hilario P. Martinez 73
An Alternative Recommendation:
Hilario P. Martinez 74
Per 2010
GAA Option 4 Option 2 Option 3 Option 6 Option 1 Option 8 Option 5 Option 7
Nationwide 39.79% 30.45% 29.23% 21.12% 19.89% 18.67% 10.56% 9.33% 0.00%
Central Offices 13.58% 16.20% 12.65% 18.82% 15.27% 14.76% 17.89% 17.38% 20.00%
NCR 4.36% 6.94% 6.67% 7.90% 9.26% 7.88% 10.21% 10.46% 11.42%
CAR 1.41% 2.01% 2.19% 2.30% 2.79% 2.56% 3.08% 3.16% 3.44%
R1 2.77% 2.94% 2.94% 3.26% 3.11% 3.35% 3.44% 3.52% 3.84%
R2 2.28% 2.29% 2.68% 2.56% 2.68% 3.03% 2.96% 3.03% 3.31%
R3 4.42% 4.61% 4.99% 5.14% 5.18% 5.67% 5.71% 5.85% 6.39%
R4A 4.42% 5.22% 6.19% 5.95% 6.99% 7.10% 7.71% 7.90% 8.63%
R4B 1.92% 2.31% 2.63% 2.62% 3.02% 3.02% 3.33% 3.41% 3.73%
R5 2.95% 2.93% 3.06% 3.25% 3.04% 3.46% 3.35% 3.44% 3.75%
R6 3.94% 4.09% 4.36% 4.55% 4.51% 4.95% 4.98% 5.10% 5.57%
R7 3.04% 3.47% 3.98% 3.93% 4.41% 4.56% 4.87% 4.98% 5.44%
R8 2.77% 2.66% 2.86% 2.94% 2.75% 3.21% 3.04% 3.11% 3.39%
R9 1.86% 2.27% 2.54% 2.57% 2.95% 2.92% 3.26% 3.33% 3.64%
R10 2.55% 2.85% 3.06% 3.19% 3.35% 3.49% 3.70% 3.79% 4.14%
R11 2.14% 2.72% 3.06% 3.10% 3.64% 3.54% 4.01% 4.11% 4.49%
R12 2.02% 2.26% 2.49% 2.54% 2.73% 2.85% 3.01% 3.09% 3.37%
ARMM 2.00% 1.80% 2.32% 2.02% 2.11% 2.59% 2.33% 2.39% 2.61%
R13 1.77% 1.98% 2.10% 2.22% 2.32% 2.40% 2.56% 2.62% 2.86%
Total 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Fund based
in MM57.73% 53.60% 48.55% 47.84% 44.42% 41.31% 38.66% 37.18% 31.42%
Order of Implementation--> 1 2 3 4 5 6 7 8
Adopting all the eight options for a defined period of implementation: from the
highest allocation for Nationwide programs to zero (full delegation to regions)
A Transformational Alternative
Hilario P. Martinez 75
Per 2010 Option 4 Option 2 Option 3 Option 6 Option 1 Option 8 Option 5 Option 7
Nationwide 39.79% 30.45% 29.23% 21.12% 19.89% 18.67% 10.56% 9.33% 0.00%
Central Offices 13.58% 16.20% 12.65% 18.82% 15.27% 14.76% 17.89% 17.38% 20.00%
All Regions 46.63% 53.35% 58.13% 60.06% 64.84% 66.57% 71.55% 73.29% 80.00%
Total 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
STATUS QUO FULL DECEN-TRALIZATION
Projection for a 20-year cycle
Hilario P. Martinez 76
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
% GRDP
Y e a r s
% GRDP
trend of NCR
and similar
regions
% GRDP
trend of
under-
developed
regions
All regions
with fairly
equal share
to the GDP
5.8%
Update GRDP table
Update Regional Allocation of Expenditure
Program (REAP) table
Project Next Year’s GRDP
and REAP tables
Calculate Required
Increment Factor
Update Development Timeframe for
all Regions
Apply Increment Factor to
Calculate Next Year’s REAP
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
General trend of fund
allocation to each region
(except NCR, Regions 3,
4A & 7)
Y e a r s
Annual Iterative Process
It is all about the pursuit of the
3D effect
Hilario P. Martinez 77
ECONCENTRA
ECENTRALIZA
E C O N G E S
COMPLEMENTARY ACTIONS NEEDED
Ensuring Development and Adherence to Goals of Delegation
Hilario P. Martinez 78
Action Points Redefine the protocol of
accountability of the regional offices of all national line
agencies to be more service area oriented and responsive
to the specifications of the Regional Development
Councils’ priorities
Each Regional Development Council to identify a city within
their area of jurisdiction as candidate mega-city with
Metro-Manila as benchmark
Prioritize basic needs and development imperatives of
the regional service area, i.e., roads, bridges, ports, communication and
transportation infrastructure, school buildings, pre- and post
harvest support, etc.
Establish cost standards for materials for infrastructure
projects and services in each region as basis for project planning, development,
implementation and evaluation of regional line
agencies.
Prioritize region-based service providers and civil works
contractors in project development and implementation
Institutionalize the GRDP-based fund allocation in
national budget preparation, integration and execution for all line government agencies.
Transform the Regional Development Councils to have more decision-making authority and
accountability over development and implementation of programs and projects in
their respective service area.
Hilario P. Martinez 79
Enable the regional offices of NGAs to be directly accountable for its development programs, projects
and activities approved by the RDC
Hilario P. Martinez 80
implementation
and supervision,
bidding and
contracting,
and wrap-up &
documentation
for planning
and review,
monitoring,
Differentiate the relationship and responsibilities of Central Offices vis-a-vis Regional Offices
Hilario P. Martinez 81
REGIONAL
OFFICES
ENABLER and
STRATEGIC
COORDINATOR
NATIONAL
/C.O.
REGIONAL
OFFICES
Mandate all RDCs to immediately prepare a progressive 5-year development plan exclusively for its respective service area, with components implementable by the responsible NGA’s regional offices in the service area
Hilario P. Martinez 82
Preference for local and indigenous contractors and service providers
Hilario P. Martinez 83
faster delivery of required goods and services
monitoring of project is faster
motivates and develops local providers
motivates local employment
supports local industry and economy
accountability is better defined
Advantages:
Establish cost standards per region for civil works materials and services for the delivery of goods and basic needs
Hilario P. Martinez 84
LOC
ALL
Y A
VA
ILA
BLE
R
ESO
UR
CES
IND
IGEN
OU
S R
ESOU
RC
ES
INVENTORY OF
MATERIALS, GOODS
AND SERVICES
REGION A
LOC
ALL
Y A
VA
ILA
BLE
R
ESO
UR
CES
IND
IGEN
OU
S R
ESOU
RC
ES
INVENTORY OF
MATERIALS, GOODS
AND SERVICES
REGION B
LOC
ALL
Y A
VA
ILA
BLE
R
ESO
UR
CES
IND
IGEN
OU
S R
ESOU
RC
ES
INVENTORY OF
MATERIALS, GOODS
AND SERVICES
REGION N
. . .
MATERIAL UNIT COST SERVICE UNIT COST
1. _____ xxxxx P000.00 1. _____ xxxxx P000.00
2. _____ xxxxx P000.00 2. _____ xxxxx P000.00
3. _____ xxxxx P000.00 3. _____ xxxxx P000.00
: :
n. _____ xxxxx P000.00 n. _____ xxxxx P000.00
= / = /
The cost standards can facilitate project development, implementation and monitoring, especially
when the needed materials, technology, equipment, expertise and skills are available locally. It
may even bring down the cost of projects and spur competition among regions.
Institutionalize the GRDP-based Fund Allocation Scheme
Hilario P. Martinez 85
Legend: NGA – National Government Agency
CO – Central Office
RO – Regional Office
RO-80%
CO-20%
NGA 1
RO-80%
CO-20%
NGA 2
RO-80%
CO-20%
NGA n
GRDP-based Fund Allocation Scheme Applied
RDC
∑ NGA Budget Proposals CO-20% + RO-80%
50%/50% of Spec’L Purpose
and Nationwide Funds
OP/DBM
APPROVED PPAs
REGIONAL DEVELOPMENT PLAN
CONGRESSIONAL BUDGET
PROCESSES
APPROVAL
EXECUTION
EN
DO
RS
EM
EN
T
...
...
As a start, this concept maybe applied
to review the national budget proposal
and identify allocation inequities. For a
bottom-up approach, the allocation
scheme can be initiated and applied at
NGA level to allow greater capacity and
flexibility to its regional offices to offer
more and better services to its service
area.
ANTICIPATED RESULTS
Hilario P. Martinez 86
Anticipated Results
Hilario P. Martinez 87
Allows the Regional Development Councils to be more strategic and competitive in outlook and perspective
Private sector can be better encouraged to participate in regional development
Responsibility for development programs and accountability for funds are more defined
Allows the Central Government to focus more on strategic concerns after delegation of local major development programs
Encourage more citizens to remain in/return to their respective regions of origin to invest or initiate more economic activities
Local business investments are stimulated as well as reduction of outmigration from regions to Manila.
With Central Offices’ concerns reduced to a strategic few, a de facto re-organization is set in motion in favor of regional offices
With greater resources and autonomy, it allows the Regional Development Council to be more strategic and competitive in outlook and perspective
Hilario P. Martinez 88
The RDC can exercise the prerogative of planning and laying down the “building blocks”
to address the development plan of its service area in coordination with the national plan
Acting like a Federal State without being a Federal State
Differentiating and Complementing Roles
Hilario P. Martinez 89
Members of
the Regional
Development
Council
takes direct
action and
responsibility
to address
the develop-
ment
imperatives/
initiatives of
their service
area.
RDC-driven
Projects for
their respective
Metropolis in an
Ecology-friendly
Regional
Agenda
In the near future, what if the 16 other empowered RDCs embark in these Projects for their selected Metropolis?
An integrated metro-wide
commuter train system
Better flood control and
warning systems
Concrete roads and elevated
highways
More low-cost housing projects
Better waterways and drainage
systems
State-of-the-art traffic
management system
Metro-wide electronic
surveillance system
Technology-based
garbage/waste disposal systems
More high-rise condominiums and apartments
Hilario P. Martinez 90
Better health facilities and
services
Vital Infrastructures, particularly in the less developing Regions, can take an Accelerated Development Phase
Hilario P. Martinez 91
Communication
Road
Network
With more funds at the disposal of the RDC through the concerned NGA
Regional Offices, the required infrastructures to support and sustain
significant economic development are laid down at a faster phase.
Power & Energy Schools and
Training Centers Seaports Airports
Bridges
Mass Transport
System Hospitals
For the Emerging Regions, Trade and Commerce boom as Investments bloom
Hilario P. Martinez 92
Industries like Tourism in most Regions is further Stimulated
Hilario P. Martinez 93
Improved Employment Scenario in all Regions
Hilario P. Martinez 94
Auto-Service
Technicians
Construction
Workers
Forklift
Operators
Assembly line
Workers
Control Panel
Operators
Nurses
Food
Vendors
House
Painters Teachers
Hairdressers
Farmers Carpenters
Chefs and many more . . .
Metro-Manila’s Major Issues & Concerns are SIMPLIFIED, CONTROLLED/MINIMIZED
Over population, consumerist orientation
Uncontrolled Water pollution
High incidence of Air pollution
Traffic congestion
High crime rate
Flooding
Garbage and Sewerage problem
Highest incidence of urban poor
Highest number of informal settlers
Hilario P. Martinez 95
An a
rea 6
36 s
quare
kilo
mete
rs
in a
country
of 3
00,0
00 s
quare
kilo
mete
rs
0.21%
Hilario P. Martinez 96