Budget Reform Agenda &

Highlights of the 2015 Budget

by Assistant Secretary Clare Amador
October 23, 2014
Presentation for the Good Governance Dialogue in CDO
2
Healthcare
Insufficient funding, too
many programs, low
coverage (ADB). Poverty
incidence worsened
from 2003-2009
Poor targeting &
coverage: only 1M
or 21% of poor
households covered by
PhilHealth in 2010
Social Protection
Basic
Education
Infrastructure
As of 2010, Phl behind MDG goal
of universal primary education.
Huge backlog of 66,800
classrooms & 145,827 teachers
Low infra spending &
poor quality: only 86%
of road network paved
& 27% needs to be
rehabilitated as of 2009
2
The Situation We Came Upon
Inadequate Services, Lingering Backlogs
Aquino Budget Transformation Agenda
Spending within means
Spending on the right priorities
Spending with measurable results
In an empowering regime of
transparency, accountability
& citizens engagement
3
Spending Within Means
Fiscal Deficit reduced to and
maintained at just 2.0 % of GDP
Improved Revenue Collection without
raising new taxes (except Sin Tax)
Early Budget Enactment since
2011 GAA, eliminating the practice of
frequent budget reenactment
4
Spending Within Means
Investment Grade = Less Borrowing Cost
Baa3
in October 2013
BBB-
in March 2013
BBB
in May 2014
Ba3
in July 2009
BB
in May 2009
BB-
in July 2009
BBB
in May 2013
BBB-
in Mar 2009
5
Spending on the Right Priorities
Zero-Based Budgeting to review and
evaluate major ongoing programs and projects
Budget Priorities Framework to focus
resources on programs for Inclusive Growth
6
Focus Geographic Areas to focus on
poorest areas and tailor-fit interventions
Social services sector has greater share at
37%; debt burden down to 16% (2015)
7
Spending on the Right Priorities
Huge Investments in Social Services and Infrastructure
(as percent of total budget)
7
8
Spending on the Right Priorities
Resource Gaps Closed
Universal
Healthcare
4.09 million household
beneficiaries covered
as of June 2014
14.7 million poor &
near-poor families
covered by end-2014
Conditional
Cash Transfer
Basic
Education
Infrastructure
2010 classroom & teacher
supply closed as of May 2014
to support K-12 roll-out
88.2% National Road
Network Paved
as of March 2014;
100% by 2016.
8
Spending With Measurable Results
Performance-Informed Budgeting
to clearly link budgets with performance
targets (outcome and output)
GAA-as-Release Document and other
reform measures to ensure faster budget
execution and delivery of services
9
10
Performance-Informed Budgeting
11
Spending with Measurable Results
Growth & Poverty
GDP grew 6.8% in 2012 & 7.2% in 2013,
the fastest in ASEAN
Poverty incidence decreased to 19.1%
of families in 1st semester of 2013
from 22.3% & 22.9% in 2012 & 2009;
12
Citizen Empowerment
Introduced the Transparency Seal, the
Open Data Portal, the Peoples Budget
publications, and other means to improve
citizens access to budget information
Established participation mechanisms like
Grassroots Participatory Budgeting and
Agency-CSO Budget Partnerships to give
citizens a greater voice in the budget process
13
Php 2.606 Trillion
Proposed National Budget
for Inclusive & Sustained Development
2015 Budget:
Kaunlaran Para sa Lahat
15
Enabling Environment for
Inclusive Development
Climate Change
Adaptation and
Mitigation
Budget Strategy:
Priority Programs for Inclusive Development
Social Protection
and Social Services
Economic Expansion
and Job Creation
16
17
Top 10 Executive Departments
Level Rank Level Rank
Education
1
309.5 1 365.1 1 17.9
Public Works and Highways
2
219.9 2 300.5 2 36.7
National Defense
3
123.2 4 144.0 3 16.9
Interior and Local Government
3
136.1 3 141.4 4 3.9
Social Welfare and Development
4
83.4 6 109.0 5 30.7
Health
2, 4
90.8 5 102.2 6 12.6
Agriculture
5
80.0 7 88.9 7 11.1
Transporation and Communications
2, 4
48.8 8 59.0 8 20.9
Environment and Natural Resources
3
23.9 9 21.3 9 (11.0)
6
Science and Technology
4
13.1 10 19.4 10 47.7
Notes:
1
Inclusive of School Building Program and transf ers f rom MPBF
2
Inclusive of budgetary support to attached corporations
3
Inclusive of transf ers f rom MPBF and PGF
4
Inclusive of transf ers f rom MPBF
5
Inclusive of FPA, budgetary support to attached corporations and budgetary support to NFA, PCA and NIA
Figures indicated here are the "all in" budgets of these agencies: their agency-specific budget plus allocations from
special purpose funds.
6
The reduction is due to lower PS requirements because of completed rationalization program, lower requirements f or
cadastral survey and geo-hazard mapping activities
Particulars
2014 Program 2015 Proposed Growth
Rate
(2014 vs. 2015, in Billion Pesos)
18
Budget Focus:
Poorest and climate-
vulnerable provinces
19
Moving Forward to 2016
Tuloy-Tuloy na Kasaganaan
Growth sustained &
spread throughout
Philippines
Poverty further reduced
& middle class broadened
21
at Kapayapaan
22
Budget Reform Agenda &
Highlights of the 2015 Budget
by Assistant Secretary Clare Amador
October 23, 2014
Presentation for the Good Governance Dialogue in CDO