Department of Budget and Management
 

GENERAL INTRODUCTION

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.
 
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.
 
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.
 
New General Appropriations

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

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

National Expenditure Program
Fiscal Year 2012