GENERAL INTRODUCTION
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This volume of the President’s Budget for FY 2012 is submitted to assist Congress in the review and deliberation of the proposed national budget for legislation of the annual appropriations measures for the ensuing year. It contains the details of the government’s proposed program and is presented in four (4) parts, namely: Part I – National Government Budget; Part II – Budgets of the Energy Corporations; Part III – General Provisions; and, Part IV – Detailed Annexes. |
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Automatic Appropriations |
For 2012, a total of P723.63 billion is set aside for debt service (interest payments and net lending), internal revenue allotment (IRA), government contribution for employees’ retirement and life insurance premiums, special accounts in the general fund, grant proceeds, and donations. By virtue of their nature and urgency, these expenditure items have been provided by Congress continuing legal authority under existing legislations and thus are deemed automatically appropriated. |
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The
amount of P711.5 Billion, on the other hand,
represents expenditure items which Congress
deemed fit to automatically appropriate. By
virtue of their nature and urgency, Congress
provided continuing legal authority for these
expenditure items through subsisting legislation.
These automatically appropriated items include
debt service-interest payments, net lending,
IRA, government contribution for employees retirement
and life insurance premiums, special accounts
in the general fund, grant proceeds and donations.
The breakdown of automatic appropriations presented
per department are shown in Table "H" of the
BESF. |
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New General Appropriations
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In addition to the foregoing automatic appropriations, an amount of P1.254 trillion in New General Appropriations is proposed for enactment. Of this amount, P161.69 billion represents Unprogrammed Appropriations or standby authority to be released only when collections are received from sources not considered in the estimated targets while the remaining P1.09 trillion corresponds to Programmed New Appropriations, broken down as follows: |
|
|
(In Thousand Pesos) |
Departments and
Agencies |
880,052,608 |
Special Purpose
Funds |
374,008,864 |
TOTAL, New General Appropriations |
1,254,061,472 |
Less: Unprogrammed New Appropriations |
161,690,047 |
Programmed New
Appropriations |
1,092,371,425 |
Top Five Departments |
Consistent with the constitutional mandate of giving the highest priority to education, the Department of Education gets the largest allocation, with P215.3 billion (inclusive of the DepEd Educational Facilities Fund) out of the proposed national budget. It is followed by the Department of Public Works and Highways (DPWH), P109.6 billion; Department of National Defense (DND), P106.7 billion; Department of Interior and Local Government (DILG), P95.1 billion; and the Department of Agriculture (DA), P53.7 billion inclusive of its Agricultural and Fisheries Modernization Program component. |
Special Purpose Funds |
The Special Purpose Funds (SPFs) consist of amounts provided for the Miscellaneous Personnel Benefits Fund (MPBF), P101.5 billion; the Retirement Benefits Fund (RBF), P34.4 billion; the Priority Development Assistance Fund (PDAF), P24.9 billion; the Budgetary Support to Government Corporations (BSGC), P20.0 billion; and the Allocation to Local Government Units, P18.3 billion.
The increase in the provision for MPBF is mainly attributed to the transfer of the Personal Services (PS) cost of unfilled positions in all agencies’ regular budgets, including agencies with fiscal autonomy (i.e., the Judiciary, Congress and constitutional offices), educational institutions, hospitals and military and uniformed personnel under the DND, DILG, NAMRIA and PCG for greater control and transparency. As such, starting next year, only filled positions will be funded in the PS of all agencies to prevent abuses in the use of savings from unfilled position. The MPBF also includes the annualized requirement of the 3rd tranche salary increase (made effective June 1, 2011 up to June 30, 2012) and the six months requirement for the 4th tranche salary adjustments under the Salary Standardization Law III.
In line with the government’s transparency and accountability thrusts, lump-sum funds within agency budgets have started to be fleshed out in FY 2012. Allocations for programs and projects under specific agency built-in appropriation which are being implemented nationwide e.g. Conditional Cash Transfer under DSWD, Farm-to-Market Roads and Irrigation Projects under DA, infrastructure projects under DPWH and DOTC, DepED’s computerization project, purchase of textbooks and instructional materials, construction of basic educational facilities, and Government Assistance to Students and Teachers in Private Education (GASTPE), among others, are presented showing disaggregations down to the lowest operating units (OUs). This will facilitate the release of funds direct to the said OUs during budget execution.
|
|
|
(In Thousand Pesos) |
Programmed New Appropriations |
1,092,371,425 |
Automatic Appropriations |
723,628,575 |
Total Expenditure Program |
1,816,000,000 |
Tables I-1 and I-2, on the other hand, provide a summary of proposed new appropriations by department and by SPFs. |
Summary
Table I-1
Summary of Proposed New Appropriations by Department, FY 2012
(In thousand pesos) |
|
Proposed
New Appropriations |
DEPARTMENTS |
Personal
Services
|
Maintenance
and Other Operating Expenses
|
Capital
Outlay
|
Total
|
Congress
of the Philippines |
3,716,327 |
4,778,130 |
146,300 |
8,640,757 |
Office
of the President |
487,542 |
2,057,243 |
150,637 |
2,695,422 |
Office
of the Vice President |
39,153 |
256,871 |
105,762 |
401,786 |
Agrarian
Reform |
4,463,092 |
9,923,494 |
3,534,259 |
17,920,845 |
Agriculture |
3,030,159 |
13,485,762 |
37,227,102 |
53,743,023 |
Budget
and Management |
328,802 |
414,899 |
93,076 |
836,777 |
Education |
167,170,310 |
26,390,236 |
20,778,422 |
214,338,968 |
State Universities
and Colleges |
18,905,969 |
2,986,676 |
|
21,892,645 |
Energy |
231,178 |
931,998 |
80,445 |
1,243,621 |
Environment
and Natural Resources |
4,886,779 |
8,904,988 |
3,199,101 |
16,990,868 |
Finance |
5,466,390 |
4,141,698 |
2,337,757 |
11,945,845 |
Foreign
Affairs |
5,403,457 |
5,016,688 |
491,936 |
10,912,081 |
Health |
7,757,648 |
26,696,881 |
8,238,849 |
42,693,378 |
Interior
and Local Government |
79,386,416 |
11,924,526 |
3,753,498 |
95,064,440 |
Justice |
6,108,681 |
2,289,101 |
523,946 |
8,921,728 |
Labor and
Employment |
3,063,814 |
3,586,503 |
337,724 |
6,988,041 |
National
Defense |
81,919,360 |
19,026,784 |
5,803,878 |
106,750,022 |
Public
Works and Highways |
4,122,347 |
6,205,960 |
99,305,098 |
109,633,405 |
Science
and Technology |
2,423,791 |
5,732,915 |
982,752 |
9,139,4 |
Social
Welfare and Development |
856,361 |
48,304,236 |
188,291 |
49,348,888 |
Tourism |
298,895 |
1,242,868 |
90,000 |
1,631,763 |
Trade and
Industry |
1,041,869 |
1,480,214 |
82,480 |
2,604,563 |
Transportation
and Communications |
3,485,029 |
8,961,660 |
20,798,647 |
33,245,336 |
National
Economic and Development Authority |
1,220,287 |
1,608,962 |
41,009 |
2,870,258 |
Presidential
Communications Operations Office |
539,670 |
422,260 |
35,509 |
997,439 |
Other Executive
Offices |
2,950,572 |
3,685,366 |
870,797 |
7,506,735 |
Autonomous Region in
Muslim Mindanao |
8,195,006 |
2,156,802 |
1,365,899 |
11,717,707 |
Joint Executive-Legislative
Council |
1,625 |
512 |
60 |
2,137 |
The Judiciary |
9,127,404 |
3,661,950 |
278,630 |
13,067,984 |
Civil Service
Commission |
489,706 |
155,806 |
8,900 |
654,412 |
Commission
on Audit |
4,201,091 |
312,719 |
269,776 |
4,783,586 |
Commission
on Elections |
1,688,319 |
8,164,318 |
12,000 |
9,864,637 |
Office
of the Ombudsman |
532,341 |
192,490 |
16,122 |
740,953 |
Commission
on Human Rights |
181,603 |
68,797 |
12,700 |
263,100 |
GRAND
TOTAL |
433,720,993 |
235,170,313 |
211,161,302 |
880,052,608 |
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Table I-2
Summary of Proposed New Appropriations by Special Purpose Funds, FY 2012
(In thousand pesos) |
SPECIAL
PURPOSE FUNDS |
Proposed New
Appropriations
|
Total |
Personal
Services
|
Maintenance and Other Operating Expenses |
Capital
Outlay |
Budgetary Support to
Government Corporations |
|
17,934,513 |
2,079,622 |
20,014,135 |
Allocation to Local
Government Units |
19,644 |
17,961,846 |
322,000 |
18,303,490 |
Calamity
Fund |
|
3,450,000 |
4,050,000 |
7,500,000 |
Contingent Fund |
|
740,000 |
260,000 |
1,000,000 |
DepEd Educational Facilities
Fund |
|
|
1,000,000 |
1,000,000 |
E-Government Fund |
|
|
1,100,000 |
1,000,000 |
International Commitments
Fund |
|
1,795,953 |
887,295 |
2,683,248 |
Miscellaneous Personnel
Benefits Fund |
101,490,053 |
|
|
101,490,053 |
Retirement Benefits
Fund |
34,437,891 |
|
|
34,437,891 |
Priority Development
Assistance Fund |
|
7,707,000 |
17,183,000 |
24,890,000 |
Total SPF- Programmed
New Appropriations |
135,947,588
| 49,589,312 |
<
26,781,917 |
212,318,817 |
Unprogrammed Fund |
12,942,333 |
32,530,256 |
116,217,458 |
161,690,047 |
GRAND
TOTAL |
148,889,921 |
82,119,568 |
142,999,375 |
374,008,864 |
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National
Expenditure Program |
Fiscal
Year 2012 |
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