secretary rolando g. andaya, jr department of budget and management march 8, 2007 sharing...
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2007 Fiscal ProgramTRANSCRIPT
Secretary Rolando G. Andaya, JrDepartment of Budget and Management
March 8, 2007
SHARING RESPONSIBILITY IN SHARING RESPONSIBILITY IN SUSTAINING ECONOMIC HARVESTSUSTAINING ECONOMIC HARVEST
Fiscal Sector: Expenditure Accounts Fiscal Sector: Expenditure Accounts
Philippines Development ForumPhilippines Development Forum
Presentation OutlinePresentation Outline
2007 Fiscal Program2007 Fiscal ProgramSetting the Foundations/Directions Setting the Foundations/Directions for the 2008 Budgetfor the 2008 BudgetExpected ResultsExpected Results
2007 Fiscal Program2007 Fiscal Program
Policy Framework for 2007Policy Framework for 2007Goal:
Working towards sustainable budget by putting funds in the right place at the right time, managing resource allocation effectively, and ensuring our desired results through increased capability and accountability
2007 Fiscal Program2007 Fiscal ProgramFiscal Program, 2005-2007Fiscal Program, 2005-2007
Particulars2005 Actual
2006 Actual 2007
Levels in PB
Revenues 816.2 978.8 1,118.8
Disbursements 962.9 1,040.9 1,181.8
Deficit (146.8) (62.2) (63.0) Obligation Budget
As percent of GDP
947.6 1,053.3 1,136.6*
Revenues 15.1 16.3 16.9 Disbursements 17.8 17.3 17.9 Deficit Obligation Budget
(2.7)17.5
(1.0)17.5
(0.95)17.2
* Includes P10B provision for Salary Adjustment
Deficit of P63 B or 0.97% of GDP
Revenue estimate that is conservative, consistent to the developments in the economy
Shift from input-based to output-based expenditures approach
Election will not result in breached spending limits
Sectoral Allocation of the 2007 BudgetSectoral Allocation of the 2007 Budget
Focus on infrastructure and education …Focus on infrastructure and education …
Particulars
Levels in PB Percent Dist’n Growth (%)2005 vs
20072005 GAA 2007* 2005 2007
Economic Services 157.9 237.0 19.4 21.0 50.1Social Services 254.3 309.3 28.9 27.5 21.6Defense 44.2 53.6 4.9 4.8 21.3General Public Services 141.9 188.4 16.0 16.7 32.8IP/Net Lending 320.3 337.8 30.7 30.0 5.5TOTAL 918.6 1,126.1 100.0 100.0 22.6
* Net of the P10.3 billion provision for Salary Adjustment
Increase in Increase in allall expense classes expense classes
Particulars 2005 2007 Amount Percent 2005 2007Total Budget 918.6 1,126.1 207.5 22.6 100.0 100.0 Personal Services 289.2 335.4 46.1 16.0 31.5 29.8 MOOE 86.6 146.3 59.6 68.8 9.4 13.0 Capital Outlays 77.7 142.4 64.6 83.2 8.5 12.6 Internal Revenue Allotment 151.6 183.9 32.3 21.3 16.5 16.3 Interest Payments 313.4 318.2 4.8 1.5 34.1 28.3
Levels (P billions) Increase/(Decrease) Percent Share
Budget Level by Expense Class, 2005 and 2007
• Increases in departments are made possible due to lower share of interest payments in the total budget (32% or P340B in 2006 and 28% or P318B in 2007)—first in 8 years
• Nominally, first in 12 years
Higher infrastructure spending trend…Higher infrastructure spending trend…
2005 2007 Amount Percent
Roads and Bridges 31.3 43.7 12.4 39.4 Airports/Air Navigational Facilities 1.3 8.2 6.9 532.0 School Building Program 3.2 5.9 2.7 84.2 Irrigation 5.3 7.4 2.1 38.8 Electrification 0.05 0.6 0.6 1,092.3 Other Infrastructure 15.4 26.5 11.1 72.1
TOTAL 56.6 92.3 35.7 63.1 Percent of GDP 1.0 1.4
Particulars Levels in PB Inc./(Dec.)
SONA Commitments: SONA Commitments: Infrastructure Spending for Super Regions Infrastructure Spending for Super Regions (in billion pesos)(in billion pesos)
Amount Percent
North Luzon Agribusiness Quadrangle (NLAQ) 0.27 0.67 0.40 146.8 Luzon Urban Beltway (LUB) 0.04 1.72 1.68 3,904.7 Central Philippines Super Regions 2.31 9.04 6.73 291.5 Mindanao Agribusiness Region 1.46 4.81 3.35 229.5
TOTAL 4.1 16.2 12.2 297.6
Inc/(Dec)Particulars 2006 * 2007
* Releases* Releases
Educational Programs (1)Educational Programs (1)
Particulars 2005 2007 Level Percent
School MOOE 2,811 5,474 2,663 94.7 School building Program 2,000 5,373 3,373 168.7 Textbooks 636 2,064 1,428 224.5 Creation of teaching and non-teaching positions 3,717 3,717 -Repair and Maintenance of school buildings and educational facilities 377 1,110 733 194.4 HR Training and Development 79 940 861 1,089.9 Pre School Program 23 600 577 2,508.7 Computerization Program 75 280 205 273.3
Increase/(Decrease)
(in million pesos)(in million pesos)
Educational Programs (2)Educational Programs (2)
Particulars 2005 2007 Level Percent
Department of Education GASTPE 1,829 3,140 1,311 71.7 TESDA PESFA 200 200 - - NCIP NCIP-EAP 53 73 20 37.7 CHED 375 441 66 17.6 DOST SEI 304 341 37 12.2 PSHS 61 70 9 14.8
Increase/(Decrease)
(in million pesos)(in million pesos)
Health and Other Social Services Health and Other Social Services ProgramsPrograms
Particulars 2005 2007 Level Percent
NHIP - coverage of indigent sector 750 3,500 2,750 366.7 Expanded program on immunization 317 467 150 47.3 Construction/ completion of hospital buildings 60 354 294 490.0 Establishment of new rehabilitation centers 138 238 100 72.5 KALAHI CIDSS 778 1,226 448 57.6 Housing 2,500 3,382 882 35.3 Training for Work Project - 202 202 -Technical Education and Skills Development Proj. 356 466 110 30.9
Inc./(Dec.)
(in million pesos)(in million pesos)
NG FAPs Budget by Department/SPFNG FAPs Budget by Department/SPFFY 2005 and2007FY 2005 and2007(in billion pesos)(in billion pesos)
2005 % 2007 %Program Share Program Share
Departments 28.2 76.3 38.3 78.9
DPWH 20.0 54.1 25.3 52.1 DOTC 2.2 5.8 6.8 13.9 DepEd 2.2 6.0 1.1 2.2 DENR 0.6 1.7 0.7 1.4 DSWD 1.1 3.0 1.2 2.5 DOLE 0.6 1.7 0.8 1.7 Others 1.5 4.0 2.4 5.0
Special Purpose Funds 8.7 23.7 10.2 21.1
AFMA 8.2 22.2 9.2 19.0 DA 4.5 12.1 6.6 13.6 DAR/ARF 3.7 10.1 2.6 5.4
ALGU 0.6 1.5 1.0 2.1
Total 36.9 100.0 48.5 100.0
Particulars
NG FAPs Budget by DonorNG FAPs Budget by DonorFY 2005 and 2007FY 2005 and 2007(in billion pesos)(in billion pesos)
2005 Percent 2007 PercentProgram Share Program Share
Japan 19.1 51.8 32.0 65.9
ADB 4.5 12.2 4.6 9.4
WB 6.6 17.9 6.6 13.6
Others 6.7 18.2 5.4 11.0
TOTAL 36.9 100.0 48.5 100.0
Particulars
Top Five (5) Departments, 2005 Top Five (5) Departments, 2005 and 2007and 2007
ParticularsLevels (P billions)
Increase/ (Decrease)
Rank
2005 2007 Amt % 2005 2007
DepEd (incl. SBP)
112 137.3 25.3 22.6 1 1
DPWH 49.5 79.5 30.0 60.6 2 2DND (incl. AFP Mod.)
46.2 49.5 3.3 7.1 3 4
DILG 43.9 51.6 7.7 17.5 4 3DA (incl. AFMA)
14.3 24.2 9.9 69.2 6 5
Setting the Setting the Foundations/Directions Foundations/Directions
for the 2008 Budgetfor the 2008 Budget
Introduced in 2007 Budget and being Introduced in 2007 Budget and being strengthened for 2008 budget preparationstrengthened for 2008 budget preparation
Adoption of improved guidelines and templates Adoption of improved guidelines and templates for Forward Estimates (FEs)for Forward Estimates (FEs)
Briefing of spending agencies on MTEF and FEsBriefing of spending agencies on MTEF and FEs Adding more depth to the Paper on Budget Adding more depth to the Paper on Budget
Strategy for presentation to CabinetStrategy for presentation to Cabinet Enhancing harmonization of planning and Enhancing harmonization of planning and
budgetingbudgeting Enhancing the FY 2008 Budget CallEnhancing the FY 2008 Budget Call
Making the Medium-Term Expenditure Making the Medium-Term Expenditure Framework (MTEF) IrreversibleFramework (MTEF) Irreversible
Cascading and Embedding the Cascading and Embedding the Organizational Performance Indicator Organizational Performance Indicator Framework (OPIF) in the 2008 BudgetFramework (OPIF) in the 2008 Budget
Cascading the OPIF to bureaus and attached Cascading the OPIF to bureaus and attached agencies of the 20 pilot departments, and agencies of the 20 pilot departments, and introduction to OEOs introduction to OEOs
Development of departments-wide log frames Development of departments-wide log frames and Performance Indicators (PIs)and Performance Indicators (PIs)
Costing og Major Final Outputs (MFOs) to Costing og Major Final Outputs (MFOs) to mainstream OPIF in budgetmainstream OPIF in budget
Intensive capability building on OPIF Intensive capability building on OPIF methodologiesmethodologies
Streamlining of fund releasing to support agency Streamlining of fund releasing to support agency operational targetsoperational targets
Strengthening internal control systemsStrengthening internal control systems
Expected ResultsExpected Results
Expected ResultsExpected Results
Accelerated reduction of 2007 deficit from the planned 2 % of GDP to 0.9 %
More productive government expenditures, particularly in infra and social services
Balanced budget by 2008
Thank youThank you