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| GENERAL
INTRODUCTION
|
|
| This
volume is submitted to assist Congress in the review
and deliberation of the proposed national budget
for the legislation of the annual appropriations
measures for the next fiscal year. It contains the
details of the government's proposed program and
is presented into two parts, namely: Part I - National
Government Budget, and Part II - Budgets of the
three (3) Energy Corporations. |
| The FY
2003 Budget Program |
| The
total proposed expenditure program for FY 2003 amounts
to P804.2 Billion, computed on an obligation basis,
as presented in Table I below and in Annex A. |
Table
I
Summary of Appropriations and Obligations of the
National Government, FY 2001-2003
(In thousand pesos)
|
|
| PARTICULARS |
2001
(Actual)
|
2002
(Adjusted)
|
2003
(Proposed)
|
| APPROPRIATIONS |
|
|
|
| New General Appropriations |
538,109,780 |
575,123,728 |
605,232,559 |
| Automatic Appropriations |
200,983,422 |
215,795,979 |
253,243,321 |
| Continuing Appropriations |
51,626,226 |
35,858,634 |
|
| Supplemental Appropriations |
13,350,268 |
|
|
| Total Available
Appropriations |
804,069,696 |
826,778,341 |
858,475,880 |
Less: Unused Appropriations/
Unobligated Allotments |
96,976,612 |
56,973,611 |
54,275,880 |
| TOTAL
OBLIGATIONS |
707,093,084 |
769,804,730 |
804,200,000 |
| Out
of the P804.2 Billion budget proposal, an amount
of P605.2 Billion of new General Appropriations
is proposed for enactment in FY 2003. This includes
P54.3 Billion of Unprogrammed Appropriations which
will be provided as standby authority to be released
only when revenue collections exceed revenue targets.
|
| By Departments/Special
Purpose Funds |
| The
proposed P804.2 Billion expenditure program is allocated
among the various departments and special purpose
funds as follows: |
Table
II
Summary of Obligations and Proposed New Appropriations,
FY 2001-2003
(In thousand pesos)
|
| |
OBLIGATIONS |
|
| PARTICULARS |
2001
(Actual)
|
2002
(Adjusted)
|
2003
(Proposed)
|
2003
Appro-priations (Proposed) |
| Departments and
Agencies |
376,500,526 |
378,495,427 |
357,457,275 |
335,624,682 |
| Special Purpose
Funds |
330,592,558 |
391,309,303 |
446,742,725 |
269,607,877 |
| TOTAL |
707,093,084 |
769,804,730 |
804,200,000 |
605,232,559 |
| The
top five (5) departments which would get the largest
allocation out of the proposed national budget are
the Department of Education, P104.4 Billion; Department
of Public Works and Highways, P51.6 Billion; Department
of Interior and Local Government, P44.4 Billion;
Department of National Defense, P42.5 Billion; and
Department of Agriculture, P19.0 Billion. |
| Under
the Special Purpose Funds, proposed provisions for
Agricultural and Fisheries Modernization Program
and the Allocation to Local Government Units amount
to P20.1B and P147.2 Billion respectively. A separate
Special Purpose Fund is also included to cover entitlements
of retired/separated employees. These benefits are
now consolidated under the Pension and Gratuity
Fund, for which the amount of P28.6 Billion is proposed. |
| The
details of the budgets of Departments and Special
Purpose Funds are presented in Summary Tables II-1
and II-2 and Annex B. |
Summary
Table II-1
Summary of Obligations and Proposed New Appropriations
by Department, FY 2001-2003
(In thousand pesos)
|
| |
OBLIGATIONS |
| DEPARTMENTS |
2001
(Actual)
|
2002
(Adjusted)
|
2003
(Proposed)
|
2003
Appropria-tions (Proposed)
|
| Congress
of the Philippines |
4,412,905 |
4,359,344 |
4,358,857 |
4,197,837 |
| Office of
the President |
2,841,025 |
3,179,045 |
2,682,304 |
2,652,786 |
| Office of
the Vice President |
61,641 |
80,713 |
80,713 |
78,642 |
| Agrarian
Reform |
6,008,986 |
1,739,534 |
1,734,420 |
1,593,508 |
| Agriculture |
3,796,242 |
4,390,694 |
3,315,246 |
3,117,921 |
| Budget and
Management |
623,043 |
434,991 |
421,421 |
398,989 |
| Education |
97,470,588 |
103,296,919 |
104,409,275 |
96,234,860 |
| State Universities
and Colleges |
15,351,770 |
17,006,532 |
16,773,816 |
15,626,129 |
| Energy |
493,992 |
518,189 |
1,545,830 |
509,348 |
| Environment
and Natural Resources |
7,017,046 |
6,850,280 |
6,515,867 |
6,002,356 |
| Finance |
6,289,358 |
6,504,510 |
6,620,196 |
5,453,547 |
| Foreign Affairs |
4,774,088 |
4,507,592 |
4,464,076 |
4,428,503 |
| Health |
10,747,737 |
11,959,580 |
11,424,446 |
10,940,704 |
| Interior
and Local Government |
43,204,664 |
45,642,820 |
44,456,055 |
44,087,831 |
| Justice |
5,010,676 |
5,057,071 |
5,108,899 |
4,787,431 |
| Labor and
Employment |
4,298,975 |
4,996,967 |
4,525,492 |
4,351,604 |
| National
Defense |
58,782,349 |
60,375,090 |
42,542,006 |
42,412,102 |
| Public Works
and Highways |
55,104,927 |
48,336,015 |
51,584,245 |
46,903,125 |
| Science and
Technology |
2,567,684 |
2,914,909 |
2,661,843 |
2,566,247 |
| Social Welfare
and Development |
1,812,029 |
2,201,371 |
2,097,066 |
2,051,093 |
| Tourism |
712,197 |
917,638 |
1,074,694 |
1,052,892 |
| Trade and
Industry |
2,083,459 |
1,877,204 |
2,000,000 |
1,936,271 |
| Transportation
and Communication |
12,048,204 |
12,204,137 |
9,855,722 |
9,432,032 |
| National
Economic and Development Authority |
1,484,680 |
1,682,871 |
1,945,260 |
1,862,421 |
| Office of
the Press Secretary |
858,449 |
847,337 |
809,175 |
767,409 |
| Other Executive
Offices |
5,897,930 |
5,485,087 |
4,254,258 |
3,244,542 |
| Joint Executive-Legislative
Council |
3,895 |
3,000 |
2,000 |
2,000 |
| The Judiciary |
7,433,798 |
7,651,214 |
7,611,626 |
7,145,520 |
| Civil Service
Commission |
535,869 |
520,279 |
503,734 |
471,736 |
| Commission
on Audit |
4,095,042 |
3,980,329 |
3,951,696 |
3,651,271 |
| Commission
on Elections |
4,414,891 |
2,879,516 |
1,854,951 |
1,767,666 |
| Office of
the Ombudsman |
436,681 |
481,517 |
476,623 |
453,239 |
| Commission
on Human Rights |
208,315 |
210,676 |
210,066 |
196,868 |
| Autonomous
Regions |
5,617,391 |
5,402,456 |
5,585,397 |
5,246,252 |
| GRAND TOTAL |
376,500,526 |
378,495,427 |
357,457,275 |
335,624,682 |
|
Table
II-2
Summary of Obligations and Proposed New Appropriations
by Special Purpose Funds, FY 2001-2003
(In thousand pesos)
|
| |
OBLIGATIONS
|
2003
Appro-priations (Proposed) |
| SPECIAL PURPOSE FUNDS |
2001
(Actual) |
2002
(Adjusted) |
2003
(Proposed) |
| Budgetary Support to
Government Corporations |
17,125,159 |
13,400,560 |
10,747,350 |
4,234,000 |
| Agriculture and Fisheries
Modernization Program |
15,871,923 |
19,495,318 |
20,107,583 |
18,599,257 |
| Allocation to Local Government
Units |
122,733,343 |
139,378,671 |
147,237,023 |
147,234,800 |
| Area Development Assistance
Fund |
28,133 |
36,885 |
23,000 |
15,084 |
| AFP Modernization Program |
|
5,000,000 |
|
|
| Agrarian Reform Fund
|
|
6,120,356 |
5,901,689 |
5,757,776 |
| Calamity Fund |
|
800,000 |
800,000 |
800,000 |
| Contingent Fund |
|
800,000 |
800,000 |
800,000 |
| DepEd-School Building
Program |
|
2,000,000 |
2,000,000 |
2,000,000 |
| Foreign Assisted Projects
Support Fund |
|
200,000 |
-
|
-
|
| General Fund Adjustments |
|
100,000 |
-
|
-
|
| International Commitments
Fund |
|
776,263 |
776,263 |
776,263 |
| Miscellaneous Personnel
Benefits Fund |
|
5,444,378 |
3,000,000 |
3,000,000 |
| National Unification
Fund |
|
97,372 |
97,372 |
97,372 |
| Organizational Adjustment
Fund |
|
50,000 |
- |
- |
| Priority Development
Assistance Fund |
|
5,677,500 |
3,377,500 |
3,377,500 |
| Pension and Gratuity
Fund |
|
|
28,639,945 |
28,639,945 |
| Debt Service Fund - Interest
Payments |
174,834,000 |
191,932,000 |
223,235,000 |
-
|
| Unprogrammed Fund |
|
|
|
54,275,880 |
| GRAND TOTAL |
330,592,558 |
391,309,303 |
446,742,725 |
269,607,877 |
|
| As
presented in Table III, overhead expenses ratio
to total budget has shown a downtrend from 8.5%
in FY 2001 to 6.2% in FY 2002 and 3.4% in FY 2003.
The rest of the allocation goes to Support to Agency
Operations and Operations which shows a 34.9% allocation
in FY 2003 compared to 2001 and 2002 shares of 37.5%
and 36.3%, respectively. |
| The
implementation of foreign assisted projects showed
a marked improvement in FY 2002. On this basis,
a higher provision of P44.4 Billion is proposed
for FY 2003. |
| The
percentage of the 2003 budget going to the so-called
"unproductive uses" (Net Lending &
Interest Payment) increased from 25.9% of the national
budget in FY 2002 to 28.5% for FY 2003. |
Table
III
Summary of Obligations, By General Overhead/Line
Operations/Project, FY 2001-2003
(In thousand pesos)
|
| PARTICULARS |
2001
|
2002
|
2003
|
| Amount |
%
Distri- bution |
Amount |
%
Distri- bution |
Amount |
%
Distri- bution |
| I. PROGRAMS |
325,213,877 |
46.0 |
327,303,134 |
42.5 |
308,526,337 |
38.3 |
General Administration
and Support
|
59,739,282 |
8.5 |
47,667,911 |
6.2 |
27,308,344 |
3.4 |
| Support to
Operations |
20,555,753 |
2.9 |
15,880,003 |
2.0 |
13,839,507 |
1.7 |
| Operations |
244,918,842 |
34.6 |
263,755,220 |
34.3 |
267,428,486 |
33.2 |
| II. PROJECTS |
203,101,207 |
28.7 |
243,085,036 |
31.6 |
266,938,663 |
33.2 |
| Locally-Funded |
163,010,361 |
23.0 |
201,769,167 |
26.2 |
222,488,540 |
27.7 |
| Foreign-Assisted |
40,090,846 |
5.7 |
41,315,869 |
5.4 |
44,400,123 |
5.5 |
| III. NET LENDING |
3,944,000 |
.6 |
7,484,560 |
1.0 |
5,500,000 |
.7 |
| IV. INTEREST
PAYMENT |
174,834,000 |
24.7 |
191,932,000 |
24.9 |
223,235,000 |
27.8 |
| GRAND TOTAL |
707,093,084 |
100.0 |
769,804,730 |
100.0 |
804,200,000 |
100.0 |
|
| By
Expense Class |
| In
terms of expense class, the P804.2 Billion proposed
budget shall be distributed as follows: P275.6 Billion
or 34.3% for Personal Services; P449.5 Billion or
55.9% for Maintenance and Other Operating Expenses;
P73.6 Billion or 9.2% for Capital Outlays and the
remaining balance of P5.5 Billion or .6% is for
Net Lending. The amounts presented in Table IV for
Capital Outlays are exclusive of the twenty percent
(20%) of the Internal Revenue Allotment (IRA) of
the Local Government Units which shall be utilized
for development projects as mandated under the Local
Government Code. |
Table
IV
Obligation by Object Major Expenses Class, FY 2001-2003
(In thousand pesos) |
| PARTICULARS |
2001
|
2002
|
2003
|
| Amount |
%
Distri- bution |
Amount |
%
Distri- bution |
Amount |
%
Distri- bution |
Current
Operating
Expenditure |
|
|
|
|
|
|
| Personal
Services |
247,665,401 |
35.0 |
265,497,027 |
34.5 |
275,577,322 |
34.3 |
Maintenance
and Other
Operating Expenses
|
380,690,465 |
53.8 |
413,720,725 |
53.7 |
449,470,951 |
55.9 |
| Sub-total |
648,355,866 |
88.8 |
679,217,752 |
88.2 |
724,998,273 |
90.2 |
| Capital
Outlays |
74,793,218 |
10.6 |
83,102,418 |
10.8 |
73,651,727 |
9.2 |
| Net Lending |
3,944,000 |
.6 |
7,484,560 |
1.0 |
5,500,000 |
.6 |
| GRAND
TOTAL |
707,093,084 |
100.0 |
769,804,730 |
100.0 |
804,200,000 |
100.0 |
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| Section
1. Appropriation of Funds |
| The
following sums, or so much thereof as mat be necessary,
are hereby appropriated out of any funds in the
National Treasury of the Philippines not otherwise
appropriated, for the operation of the Government
of the Republic of the Philippines from January
1 to December 31, 2003, except where otherwise specifically
provided herein : |
| BUDGETS
OF DEPARTMENT OF ENERGY ATTACHED CORPORATIONS |
| Section
2. Approval of Annual Budgets of Corporations
Under R.A. No. 7638. |
| Pursuant
to Section 13, Chapter III of Republic Act No. 7638,
the FY 2003 annual budgets of the National Electrification
Administration (NEA), the National Power Corporation
(NPC) and the Philippine National Oil Company (PNOC)
are hereby approved as follows: |
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