2014 National Budget and Pork Barrel

7/30/2019 2014 National Budget and Pork Barrel

1/58

2014

NATIONAL BUDGET2014 National Expenditure Program (NEP)


2/58

P2.268 trillion13.1 percent higher than this years P2.006-trillion


3/58

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


4/58

843 B

590.2 B

364.5 B

352.7 B

92.9 B

DebtServices

Defense

General

Public

Services

Economic Services

Social

Services


5/58

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


6/58

P399.4-billionInfrastructure Development


7/58

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.


8/58

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


9/58

P336.9 billionDepartment of Educations (DepEd)


10/58

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


11/58

P135.4 billionDepartment of Interior and Local Government


12/58

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.


13/58

P123.1 billionDepartment of National Defense


14/58

P123.1 billionDepartment of National Defense

P5 billion for the modernization of the

countrys armed forces


15/58

P87.1 billionDepartment of Health


16/58

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


17/58

P80.7 billionDepartment of Agriculture


18/58

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.


19/58

P62.6 billionPantawid Pamilyang Pilipino Program (4Ps)


20/58

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


21/58

CRITICISMS TO THE 2014

NATIONAL BUDGET

2014 National Expenditure Program (NEP)


22/58

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


23/58

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


24/58

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


25/58

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.


26/58

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?


27/58

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


28/58

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.


29/58

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.


30/58

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.


31/58

PORK BARREL IN THE

NATIONAL BUDGET


32/58

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.


33/58

General Appropriations

Act (GAA) not as detailed and specific as the budget proposals ofregular agencies


34/58

P796 billionAutomatic Appropriations

lump-sum funds that donot undergocongressional scrutiny asthese are automatically

considered approved byvirtue of pertinent laws


35/58

P310.1 billionSpecial Purpose Funds

funds managed directly

by DBM with the approval

of the President

22 % of GAA

SPECIAL PURPOSE FUNDS


36/58

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


37/58

P139.9 billionUnprogrammed Funds are only disbursed if

certain government

agencies hit their revenue

targets


38/58

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


39/58

P200 billionBudget for School buildings

No details about location, type, or level


40/58

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


41/58

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


42/58

P352 billionDebt Servicing

P341.5 billionInternal Revenue Allotment


43/58

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.


44/58

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


45/58

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.


46/58

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


47/58

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.


48/58

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.


49/58

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.


50/58

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)


51/58

1.3435 TTotal Presidential Pork

1.3435 T Only half of the budget

are detailed


52/58

TENDENCIES OF THE

PORK BARREL


53/58

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


54/58

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)


55/58

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


56/58

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


57/58

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


58/58

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

Date post:	14-Apr-2018
Category:	Documents
Upload:	nathalie-dagmang
View:	221 times
Download:	0 times

2014 National Budget and Pork Barrel

Documents