Please be informed that the downloadable PDF file for the full list of DAP Projects has been updated as of 13:57, 25 July 2014. To access it, please click here.
|Transcript: Presentation of DBM Sec. Florencio B. Abad to the Senate Committee on Finance on the Disbursement Acceleration Program (DAP)[PDF].
Slide Presentation: The Disbursement Acceleration Program (DAP) is a spending reform measure to speed up public expenditure and catalyze economic growth. [PDF]
What is DAP?
The Aquino Administration introduced the Disbursement Acceleration Program (DAP) as a reform intervention to speed-up public spending and to boost economic growth. It is not a fund, but a mechanism to support high-impact and priority programs and projects using savings and unprogrammed funds. DAP also enabled the government to introduce greater speed, efficiency, and effectiveness in budget execution.
Why was DAP introduced?
From January to September of 2011, government disbursements shrank by 7.3 percent year-on-year. Underspending was most severe in the case of infrastructure, which slumped by 51.3 percent. These, alongside the global economic slowdown, pulled down gross domestic product (GDP) growth to 3.6 percent in the first three quarters of 2011, from 7.6 percent in 2010. Clearly, the government could not have afforded to nothing.
How did the DAP work?
Savings are available portions or balances of items under the General Appropriations Act (GAA) which result from: a) the completion or final discontinuance or abandonment of a program, activity, or project; b) unpaid compensation for vacant or unfilled positions and leaves of absence without pay; or c) the implementation of efficiency measures that enable agencies to deliver services at lower cost. Such savings may then be used to augment funds for programs, activities, or projects which are included in the GAA (i.e. nonexistent budget items cannot be funded).
Unprogrammed funds are standby appropriations which are authorized by Congress in the annual GAA, and which may only be used when a) revenue collections exceed revenue targets; b) new revenues are collected from sources not included in the program; or c) newly-approved loans for foreign-assisted projects are secured. Such funds can be used for new programs, activities, or projects as long as these are consistent with the purposes listed in the GAA for the use of unprogrammed funds.
Previous administrations had used these authorities in the past to address urgencies they faced. Moreover, the Aquino Administration sharpened the application of such powers by prioritizing funding for programs and projects which are a) fast-moving or quick disbursing; b) urgent or priority in terms of social and economic development objectives; and c) performing well and could deliver more services with additional funds.
How much in programs and projects were funded through DAP?
A total of 116 programs and projects were approved to be funded through DAP. These included an additional P1.26 billion to the Sitio Electrification Program to fast-track the electrification of 33,000 sitios; P1.6 billion for the Training-for-Work Scholarship Program benefitting a total of 149,530 enrollees; and P4.08 billion to settle unremitted GSIS premium payments of public school teachers since 1997.
How did DAP benefit the economy?
The improved pace of public spending bolstered the growth of the country’s GDP. The World Bank in a 2012 report stated that DAP “was partially successful and contributed 1.3 percentage points to GDP in Q4 [of 2011] .” The country’s GDP growth further improved from 3.6 percent in 2011, to 6.8 percent in 2012 and 7.2 percent in 2013.
How did DAP support the budget reform agenda?
Why did the Aquino Administration terminate DAP?