ABI-Envi Cluster MeetingUP Alumni Café

UP Diliman, Quezon City3:00-5:00 PM | April 28, 2014

Overview: FY 2014 GAA Approved Overview: FY 2014 GAA Approved increased allocations in ABI-Envi Proposalsincreased allocations in ABI-Envi Proposals

Agency /Dept /

SPF

Budget Item

ABI Proposed Increases (in ‘000)

NEP 2014(in ‘000)

GAB 2014(in ‘000)

GAA 2014(in ‘000)

Variance

(in ‘000)

Variance

(in ‘000)GAB vis

NEPGAB vis

GAA

Disaster Risk Reduction and Climate Change Adaptation

DA-OSEC

Climate Adaptation Works

835,825 146,175 146,175 166,175 0 20,000

Sustainable Agriculture, Fisheries and Forestry

DENR-OSEC

Land Survey, Disposition and Records Management

837,181.864

2,106,368 2,107,555 2,107,555 1,187 1,187

Overview: FY 2014 GAA Approved Overview: FY 2014 GAA Approved increased allocations in ABI-Envi Proposalsincreased allocations in ABI-Envi Proposals

Agency /Dept /

SPF

Budget Item(in ‘000)

ABI Proposed Increases

(‘000)

NEP 2014(‘000)

GAB 2014(‘000)

GAA 2014(‘000)

Variance(‘000)

Variance(‘000)

GAB vis NEP

GAB vis GAA

Sustainable Agriculture, Fisheries and Forestry

DENR-OSEC

Development, Updating and Implementation of the Operational Plan for the Manila Bay Coastal Management Strategy

100,000 150,000 150,000 160,000 0 10,000

New and Renewable Energy

DENR-EMB

Implementation of clean air regulations

500,000 735,984 735,984 785,984 0 50,000

TOTAL2,273,006.8

64 3,138,527 3,139,714 3,219,714 1,187 81,187

Overview: 2014 GAA Allocations for Overview: 2014 GAA Allocations for Reconstruction & RehabilitationReconstruction & Rehabilitation

FY 2014 allocations relevant to disaster rehabilitation, reconstruction and recovery efforts] amounts to a total of P121.35 billion: ◦ P4.85 QRFs under key agencies’ budgets◦ P13 billion SPF for NDRRM Fund (Calamity Fund)◦ P20 billion SPF for Rehabilitation and Reconstruction Program◦ P80 billion UF for Reconstruction and Rehabilitation Program◦ P3 billion UF for Disaster Relief and Mitigation Fund◦ P500 million UF for People’s Survival Fund

FY 2013 supplemental budget for calamity fund and DSWD Quick Response Fund (P14.6 billion sourced from unreleased 2013 PDAF)

FY 2013 continuing appropriations (P22.7 billion (authorized through Joint Resolution 1)

2015 Budget Call2015 Budget CallBased on National Budget Memorandums 119 & 120Budget Priorities Framework

◦ guide to achieving rapid growth and inclusive development ◦ sets forth priority programs and projects under the KRAs of the

administration as well as determines focus geographical areasPublic expenditure management

◦ MTEF, OPIF, ZBB, Program Budgeting (KRAs), GPB◦ Spending within means, spending on the right priorities,

spending with value for money◦ Performance-Informed Budgeting- performance info about

outputs and outcomes◦ GAD Plan and Budget- at least 5% of the total agency budget

proposal for activities supporting GAD plans and programs

2015 Budget Call2015 Budget CallReprogramming of existing agency

budgets to accommodate Reconstruction Assistance on Yolanda (RAY) program◦investment requirements for rehabilitation,

reconstruction and recovery amount to P360.9 billion until 2017

Urgent embedding of the climate change and disaster risk reduction in all planning, programming and implementation activities

Program PrioritiesProgram Priorities

Social protection and social services (Pantawid Pamilyang Pilipino Program (will cater to 4.3 million households in 2015), Universal Health Care, Education and Manpower Programs, Housing)

Economic expansion programs in agriculture, transportation infrastructure, research and development & manufacturing

Program PrioritiesProgram Priorities

Job creation and livelihood development: rural-based industries, infrastructure development, grassroots participatory budgeting

Climate change disaster risk reduction (Identify geo-hazard and climate-prone areas, reconstruction and rehabilitation in calamity-affected areas, improve calamity response and stockpiling of food and relief goods◦ Note: the framework recognizes the role of the private

sector in the implementation of the Reconstruction Assistance to Yolanda rehab plan) 

Focus Geographical AreasFocus Geographical Areas Provinces with most

poor families (magnitude)

Provinces with high poverty incidence

Disaster-prone provinces (high disaster risk)

Provinces with high poverty incidence and disaster risk

Provinces with most poor families (magnitude) and disaster risk

2015 Budget: Macro & Fiscal Targets2015 Budget: Macro & Fiscal Targets

The following update is based on available issuances and official information

Total picture of the budget is not availableBudget call and memoranda only cover the

allocation for operating agenciesOnly 47% (agency budget ceilings of

P1.231 trillion) of the total obligation budget of P2.606 trillion is initially disclosed (NBM No. 119); does not include special purpose funds and debt servicing

Macroeconomic AssumptionsMacroeconomic Assumptions

PARAMETER 2013Actual

2014Adjusted

2015Projected

2016Projected

Real GNI Growth %Real GDP Growth %Inflation %364-Day T-bill Rate %FOREX (P/US $)

6.5-7.06.5-7.0

2.90.7-1.042-43

6.2-7.26.5-7.53.0-5.01.0-4.041-44

6.6-7.57.0-8.02.0-4.01.0-4.041-44

7.0-8.07.5-8.52.0-4.01.0-4.041-44

Source: DBM NBM 119 based on BSP, NEDA, NSCB data

Are the projected GDP and GNI growth rates attainable?

Fiscal Targets Fiscal Targets

PARTICULARSPARTICULARS2013 2013

Adjusted Adjusted ProgramProgram

2014 2014 ProgramProgram

2015 2015 ProposedProposed

2016 2016 ProposedProposed

Levels in Billion Pesos Revenues Disbursements Surplus/(Deficit) Obligation Budget

Per cent of GDP Revenues Disbursements Surplus/(Deficit) Obligation Budget

Growth Rate Revenues Disbursements Surplus/(Deficit)* Obligation Budget

1,745.91,983.9(238.0)2,005.9

14.716.7(2.0)16.8

13.711.62.09.7

2,018.12.284.3(266.2)2,264.6

15.517.5(2.0)17.4

15.615.1

(11.9)12.9

2,337.32,622.6(285.3)2,605.9

16.218.2(2.0)18.0

15.814.8(7.1)15.1

2,760.83,082.8(322.0)3,077.9

17.119.1(2.0)19.0

18.117.5

(12.9)18.1

GDPGross Financing Mix (%) Foreign Domestic

11,914.5

8.092.0

12,990.3

15.085.0

14,463.5

11.089.0

16,179.0

9.091.0

Notes: *A positive growth rate indicates an improvement in the fiscal balance Source: DBM NBM 119 based on DBM, DOF, and NEDA data

2015 Agency Budget Ceilings2015 Agency Budget Ceilings

Personal Services MOOE, CO & FinEx

Total

488,140,395,000 742,918,323,000 1,231,058,718,000Source: DBM National Budget Memorandum No. 119 Annex A

vs.

Total Obligation Budget for 2014:

PhP 2,605,900,000,000

Where is the remaining amount of PhP 1,374,841,282,000going to?

Top agencies to get bigger slice of the Top agencies to get bigger slice of the P1.231T pieP1.231T pie

Source: DBM National Budget Memorandum No. 119 Annex A

How much is it for 2013?

Where goes the Where goes the more than half of more than half of the 2015 Budget?the 2015 Budget?

Special Purpose Special Purpose Funds?Funds?

How much is it in How much is it in 2015?2015?

How much is debt How much is debt servicing?servicing?

Source: 2014 GAA (RA 10633)

SPECIAL PURPOSE FUNDS 2014 Gen. Appropriations Act

Amount

Budgetary Support to Government Corporations

46,255,210,000

Allocation to Local Government Units

19,588,843,000

National Disaster Risk Reduction Management Fund (formerly Calamity Fund)

13,000,000,000

Contingent Fund 1,000,000,000

DepEd School Building Program 1,000,000,000

E-Government Fund 2,478,900,000

International Commitments Fund 4,815,644,000

Miscellaneous Personnel Benefits Fund

53,535,086,000

Pension and Gratuity Fund (formerly Retirement Benefits Fund)

120,495,952,000

Rehabilitation and Reconstruction Program

20,000,000,000

Priority Development Assistance Fund1

0

Feasibility Studies Fund 400,000,000

TOTAL 282,569,635,0001Under the FY 2014 General Appropriations Act, the P25.24 Billion PDAF is realigned to the following: CHED, DOH, DSWD, DOLE-TESDA, DPWH, UP System, PNP, AFP, and NDRRM Fund

Budget Partnership Budget Partnership AgreementAgreement

Citizen participation shall be implemented through a Budget Partnership Agreement consistent with National Budget Circular 536

Participating depts/GOCCs: DAR, DA, DepEd, DoE, DENR, DoH, DILG, DoJ, DoLE Osec and TESDA, DPWH, DSWD, DoT, DTI, DoTC, LRTA, NEA, NFA, NHMFC/SHFC, NHA, NIA

Focus of CSO proposals: 1) detailed analysis of policies/programs, 2) identifying poorly performing programs, 3) proposal for program expansion/addition

Grassroots Participatory BudgetingGrassroots Participatory Budgeting

Consistent with DBM-DILG-DSWD-NAPC JMC 4, GPB will be implemented in the following departments/GOCCs: ◦DAR, DA, DepEd, DoE, DENR, DoH, DILG, DoJ, DoLE

Osec and TESDA, DPWH, DSWD, DoT, DTI, DoTC, LRTA, NEA, NFA, NHMFC/SHFC, NHA, NIA

Validated/qualified LGU projects shall be integrated in the agency budget proposals

GPB consultations will be conducted with agency regional offices through LPRAT & RPRAT, HDPRC, DILG, RDCs, CSOs and other stakeholders

In 2014, P403.5 million for National Greening program was lodged in DENR-EMB budget through this initiative

Approximated FY 2015 Budget Approximated FY 2015 Budget Legislation CalendarLegislation Calendar

July 2014July 29, 2014- Submission of the President’s Budget (NEP, BESF, other budget documents) to Congress [After the State of the Nation Address]August-September 2014August to September 2014- Budget Briefings/Hearings of the House Committee on Appropriations September to last week of October 2014- Budget Briefings/Hearings of the Senate Committee on Finance First week of September 2014- Budget Hearing of the House Committee on Appropriations with Civil Society Organizations

Approximated FY 2015 Budget Approximated FY 2015 Budget Legislation CalendarLegislation Calendar

September 2014Third to last week of September 2014- House Sponsorship and Floor Deliberations for General Appropriations Bill (GAB)Last week of September 2014- House Approval of the GAB on Second ReadingSeptember-October 2014Last week of September or second week of October 2014- Submission of Individual Amendments to the GAB Third week of October 2014- House Approval of the GAB on Third and Final ReadingThird week of October 2014- House Transmission of the GAB to the Senate Finance Committee

Approximated FY 2015 Budget Approximated FY 2015 Budget Legislation CalendarLegislation Calendar

November 2014Third week to fourth week of November 2014- Senate Sponsorship and Floor Deliberations for the GABFourth week of November 2014- Senate Approval of the GAB on Second Reading / Period of AmendmentsFourth week of November 2014- Senate Approval of the FY 2013 GAB on Third and Final ReadingDecember 2014First week of December 2014- Pre-Bicameral Conference Committee technical working group meetingSecond week of December 2014- Bicameral Conference Committee Panel deliberations

Approximated FY 2015 Budget Approximated FY 2015 Budget Legislation CalendarLegislation Calendar

December 2014Second week of December 2014- Approval/Signing of the Bicameral Conference Committee report on the GABSecond week of December 2014- House and Senate Ratification of the Bicameral Conference Committee report on the GABLast week of December 2014- President’s Signing of the General Appropriations Act