|
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 2005 Budget Program |
The
total proposed expenditure program for FY 2005
amounts to P907.6 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 2003-2005
(In thousand pesos)
|
|
PARTICULARS |
2003
(Actual) |
2004
(Adjusted) |
2005
(Proposed) |
| APPROPRIATIONS |
|
|
|
| New General Appropriations |
609,432,059 |
573,312,289 |
446,040,346 |
| Automatic Appropriations |
269,861,682 |
312,926,412 |
496,403,900 |
| Continuing Appropriations |
41,213,150 |
38,070,860 |
|
| |
|
|
|
| Total Available
Appropriations |
920,506,891 |
924,309,561 |
942,444,246 |
Less: Unused Appropriations/
Unobligated
Allotments |
95,393,578 |
62,680,968 |
34,854,520 |
| TOTAL
OBLIGATIONS |
825,113,313 |
861,628,593 |
907,589,726 |
Out
of the P907.6 Billion budget proposal, an amount
of P446.0 Billion of new General Appropriations
is proposed for enactment in FY 2005. This includes
P34.8 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 P907.6 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 2003-2005
(In thousand pesos)
|
| |
OBLIGATIONS |
|
PARTICULARS |
2003
(Actual)
|
2004
(Adjusted)
|
2005
(Proposed)
|
2005
Appropriations (Proposed) |
| Departments and
Agencies |
407,133,223 |
373,213,407 |
377,667,539 |
343,377,789 |
| Special Purpose
Funds |
417,980,090 |
488,415,186 |
529,922,187 |
102,662,557 |
| TOTAL |
825,113,313 |
861,628,593 |
907,589,726 |
446,040,346 |
The
top five (5) departments which would get the
largest allocation out of the proposed national
budget are the Department of Education, P111
Billion; Department of Public Works and Highways,
P49.5 Billion; Department of National Defense,
P46.2 Billion; Department of Interior and Local
Government, P43.9 Billion; and Department of
Agrarian Reform, P14.7 Billion. |
Under
the Special Purpose Funds, the Allocation to
Local Government Units, Pension and Gratuity
Fund, and the Agricultural and Fisheries Modernization
Program (AFMP) were provided substantial allocations
amounting to P155.9 Billion, P34.7 Billion,
P11.4 Billion respectively. The amount allocated
for AFMP, however, excludes the P4.4 Billion
incorporated under the DAR budget for the purpose. |
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 2003-2005
(In thousand pesos)
|
| |
OBLIGATIONS |
DEPARTMENTS |
2002
(Actual)
|
2003
(Adjusted)
|
2004
(Proposed)
|
2004
Appropriations (Proposed)
|
| Congress
of the Philippines |
4,677,514 |
4,698,899 |
4,674,601 |
4,513,538 |
| Office
of the President |
4,045,481 |
2,606,844 |
2,394,051 |
2,364,438 |
| Office
of the Vice President |
76,051 |
84,381 |
84,381 |
82,264 |
| Agrarian
Reform |
7,863,585 |
14,763,579 |
14,748,549 |
4,881,255 |
| Agriculture |
3,753,349 |
3,088,459 |
3,115,959 |
2,916,015 |
| Budget
and Management |
399,531 |
409,473 |
416,554 |
393,783 |
| Education |
106,708,873 |
107,500,978 |
111,042,542 |
102,629,586 |
| State Universities
and Colleges |
17,074,301 |
16,674,603 |
16,853,072 |
15,703,860 |
| Energy |
489,355 |
1,335,769 |
996,261 |
330,738 |
| Environment
and Natural Resources |
6,421,328 |
5,471,015 |
5,868,418 |
5,511,256 |
| Finance |
5,846,153 |
6,485,052 |
6,769,396 |
5,630,317 |
| Foreign
Affairs |
4,920,965 |
4,524,021 |
5,056,125 |
5,018,174 |
| Health |
9,858,511 |
10,427,075 |
10,319,194 |
9,826,727 |
| Interior
and Local Government |
51,563,966 |
43,577,147 |
43,898,293 |
43,681,173 |
| Justice |
5,137,060 |
4,679,268 |
5,055,681 |
4,635,929 |
| Labor and
Employment |
4,609,949 |
4,441,034 |
4,495,165 |
4,328,287 |
| National
Defense |
70,533,574 |
45,541,262 |
46,170,880 |
46,036,935 |
| Public
Works and Highways |
53,312,414 |
47,192,701 |
49,469,623 |
42,472,572 |
| Science
and Technology |
2,932,288 |
2,593,254 |
2,538,141 |
2,447,880 |
| Social
Welfare and Development |
2,281,802 |
2,362,034 |
2,332,071 |
2,285,681 |
| Tourism |
976,742 |
1,008,400 |
1,143,300 |
1,121,727 |
| Trade and
Industry |
1,808,227 |
1,875,617 |
2,043,528 |
1,979,356 |
| Transportation
and Communication |
10,433,829 |
10,352,506 |
8,040,221 |
7,381,558 |
| National
Economic and Development Authority |
1,801,068 |
1,356,049 |
1,285,916 |
1,212,870 |
| Office
of the Press Secretary |
1,047,024 |
790,544 |
850,404 |
808,391 |
| Other Executive
Offices |
4,678,541 |
4,745,928 |
6,306,245 |
4,832,141 |
| Joint Executive-Legislative
Council |
1,416 |
1,500 |
1,616 |
1,616 |
| The Judiciary |
7,709,895 |
7,618,968 |
8,005,206 |
7,523,732 |
| Civil Service
Commission |
533,578 |
501,408 |
504,578 |
472,624 |
| Commission
on Audit |
4,066,501 |
3,951,668 |
3,951,703 |
3,651,306 |
| Commission
on Elections |
5,211,584 |
6,376,563 |
1,397,216 |
1,305,923 |
| Office
of the Ombudsman |
523,629 |
482,141 |
535,011 |
507,539 |
| Commission
on Human Rights |
210,022 |
210,130 |
210,675 |
197,375 |
| Autonomous
Region in Muslim Mindanao |
5,625,117 |
5,488,759 |
7,092,963 |
6,691,223 |
GRAND
TOTAL |
407,133,223 |
373,213,407 |
377,667,539 |
343,377,789 |
|
Table
II-2
Summary of Obligations and Proposed New Appropriations
by Special Purpose Funds, FY 2003-2005
(In thousand pesos) |
| |
OBLIGATIONS
|
2005
Appropriations (Proposed) |
|
SPECIAL
PURPOSE FUNDS |
2003
(Actual) |
2004
(Adjusted) |
2005
(Proposed) |
| Budgetary Support to
Government Corporations |
33,017,587 |
11,162,000 |
12,306,670 |
4,685,670 |
|
| Agriculture and Fisheries
Modernization Program |
10,064,229 |
10,428,692 |
11,436,581 |
10,261,068 |
|
| Allocation to Local
Government Units |
148,475,581 |
145,403,425 |
155,869,141 |
4,243,504 |
1/ |
| Area Development Assistance
Fund |
14,693 |
|
|
|
|
| Calamity Fund |
|
700,000 |
700,000 |
700,000 |
|
| Contingent Fund |
|
800,000 |
800,000 |
800,000 |
|
| DepEd-School Building
Program |
|
2,000,000 |
1,000,000 |
1,000,000 |
|
| E-Government Fund |
|
|
1,000,000 |
1,000,000 |
|
| International Commitments
Fund |
|
776,263 |
1,800,584 |
1,800,584 |
|
| Miscellaneous Personnel
Benefits Fund |
|
4,205,042 |
2,500,000 |
2,500,000 |
|
| National Unification
Fund |
|
77,372 |
50,000 |
50,000 |
|
| Priority Development
Assistance Fund |
|
8,327,000 |
6,100,000 |
6,100,000 |
|
| Pension and Gratuity
Fund |
|
33,004,392 |
34,667,211 |
34,667,211 |
|
| Debt Service Fund -
Interest Payments |
226,408,000 |
271,531,000 |
301,692,000 |
|
|
| Unprogrammed Fund |
|
|
|
34,854,520 |
|
| GRAND
TOTAL |
417,980,090 |
488,415,186 |
529,922,187 |
102,662,557 |
|
1/Net of IRA which is now considered
automatically appropriated. |
As
presented in Table III, overhead expenses ratio
to total budget continued to decrease from 8.5%
in FY 2003 to 3.1% in FY 2004 and 3.0% in FY
2005. The rest of the allocation goes to Support
to Agency Operations and Operations which cumulatively
shows a 33.7% allocation in FY 2005 compared
to 2003 and 2004 shares of 35.6% and 34.3%,
respectively. |
The
amount proposed for foreign assisted projects
(FAPs) in FY 2005 increased by P6.1B from the
FY 2004 level of P35.3 Billion to the FY 2005
level of P41.4 Billion. In percentage terms,
however, this implies a slight increase for
FAPs, from 4.1% in FY 2004 to 4.6% in FY 2005. |
The
percentage of the budget going to the so-called
“unproductive uses” (Net Lending
& Interest Payment) shows an increasing
trend from 28.1% of the national budget in FY
2003 to 32.1% for FY 2004 to 34.0% in FY 2005. |
Table
III
Summary of Obligations, By General Overhead/Line
Operations/Project, FY 2003-2005
(In thousand pesos)
|
PARTICULARS |
2003 |
2004 |
2005 |
| Amount |
%
Distri- bution |
Amount |
%
Distri- bution |
Amount |
%
Distri- bution |
| I.
PROGRAMS |
363,751,205 |
44.1 |
322,234,224 |
37.4 |
332,343,571 |
36.7 |
General
Administration and Support
|
69,855,604 |
8.5 |
26,673,445 |
3.1 |
27,127,022 |
3.0 |
| Support
to Operations |
34,097,006 |
4.1 |
13,940,519 |
1.6 |
14,071,033 |
1.6 |
| Operations |
259,798,595 |
31.5 |
281,620,260 |
32.7 |
291,145,516 |
32.1 |
| II.
PROJECTS |
229,334,108 |
27.8 |
262,363,369 |
30.5 |
265,903,383 |
29.3 |
| Locally-Funded |
193,435,579 |
23.4 |
227,063,048 |
26.4 |
224,590,169 |
24.7 |
| Foreign-Assisted |
35,898,529 |
4.4 |
35,300,321 |
4.1 |
41,363,986 |
4.6 |
| III.
NET LENDING |
5,620,000 |
.7 |
5,500,000 |
.6 |
7,600,000 |
.8 |
| IV.
INTEREST PAYMENT |
226,408,000 |
27.4 |
271,531,000 |
31.5 |
301,692,000 |
33.2 |
GRAND
TOTAL |
825,113,313 |
100.0 |
861,628,593 |
100.0 |
907,589,726 |
100.0 |
|
| By
Expense Class |
In
terms of expense class, the P907.6 Billion proposed
budget shall be distributed as follows: P289.2
Billion or 31.9% for Personal Services; P546.3
Billion or 60.2% for Maintenance and Other Operating
Expenses; P64.5 Billion or 7.1% for Capital
Outlays and the remaining balance of P7.6 Billion
or .8% 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
2003-2005
(In thousand pesos) |
PARTICULARS |
2003 |
2004 |
2005 |
| Amount |
%
Distri-bution |
Amount |
%
Distri-bution |
Amount |
%
Distri-bution |
|
Current Operating Expenditure |
|
|
|
|
|
|
| Personal
Services |
279,425,282 |
33.9 |
287,358,925 |
33.4 |
289,250,112 |
31.9 |
Maintenance and Other Operating Expenses
|
458,793,927 |
55.6 |
505,529,447 |
58.7 |
546,277,231 |
60.2 |
| Sub-total |
738,219,209 |
89.5 |
792,888,372 |
92.1 |
835,527,343 |
92.1 |
| Capital
Outlays |
81,274,104 |
9.8 |
63,240,221 |
7.3 |
64,462,383 |
7.1 |
| Net
Lending |
5,620,000 |
.7 |
5,500,000 |
.6 |
7,600,000 |
.8 |
GRAND
TOTAL |
825,113,313 |
100.0 |
861,628,593 |
100.0 |
907,589,726 |
100.0 |
|
|
|
|
|
|
 |
