THE ALTERNATIVE BUDGET INITIATIVE (ABI) SEES THE THEME FOR THE 2012 budget of the Aquino administration, “Paggugol na Matuwid: Deretso sa Tao,” both as a summation of what this coalition for genuine alternative budget reforms has long been advocating for and at the same time as a clear sign to continually engage the State, civil society and ordinary citizens to finally make a dent in participatory budgeting. That is why when the preparation phase of the FY 2012 budget took off “earlier” than the usual, in August 2011, ABI deemed it important and timely to simultaneously publish its annual Alternative Budget Proposals book – also known as the ABI Orange Book. This is the sixth year that ABI publishes this book, which comes in handy and practical for the country’s legislators and executive officials, civil servants, alternative budget reform advocates, scholars, and representatives of vulnerable social sectors including elderly, women and children, and persons with disabilities. But unlike its previous annual ABI Orange Book editions, ABI puts emphasis this year on its experience-based assessment, learning as well as recommendations linked to the new executive policies aiming to institutionalize citizen participation in the budget process, namely the National Budget Memorandums 107 and 109. Coming from a previous leadership perceived to have retarded public sector transparency and accountability at their worst levels, both civil society and new administration leaders commonly shared the need to open processes especially on the budget and involve the public more. ABI, as one of the pioneer advocates of participatory budgeting took this opportunity and along the way helped its clusters and further engaged selected government agencies on how to further improve the early steps. The experiences, inputs, criticisms, as well as ideas on how to make this institutionalization work through the 2012 budget are in all corners and pages of this book. Part 1 provides a macro-level assessment of the country’s socio-economic situation, expenditures and borrowings, and the role of the budget as an effective tool in improving the country’s economic and social services capacity. The 2012 budget, ABI points out, is based on unrealistic and risky macro-economic assumptions. The 6.5 percent gross domestic product forecast, for instance, will be difficult to attain because of the expected global economic slowdown and the fact that the economy still being consumption-led. Taking into account these risks as well as working along its goal to push for participatory budgeting, ABI, in its recent presentation of the Alternative Budget for 2012 before Congress, has offered better options to the country’s lawmakers – to make the appropriate budget alignments to ensure responsiveness to realities of national and global developments, and to work closely with CSOs and media in monitoring the entire budget process and jointly work towards genuine budget reform. i
Part 2 of the ABI Orange Book discusses CSO engagement, through the experiences of ABI and its clusters (Environment, Health, Agriculture, Education and Persons with Disabilities), in the context of the aforementioned new guidelines which encourage and institutionalize partnerships with and participation of CSOs and other stakeholders in the preparation of budget proposals. ABI also puts forward its assessment on the pilot stages of such institutionalization and offers tangible solutions which could be very useful to policy makers, implementers, and CSO advocates. The ABI clusters also share in this section their per-sector experiences, gains, and lessons in participating in the budget preparation phase. ABI knows and respects that it is the discretion of policy makers, department heads and staff, and other government players involved in the budget preparation phase, but given its record as a professional and dynamic player in alternative budgeting arena in the Philippines, ABI through its clusters offers sound and imperative recommendations which would contribute to achieve what the stakeholders all want – better people’s participation and a more responsive budget. ABI’s Education Cluster, for instance, recommends to “pursue DepEd-civil society partnerships in all aspects of the budget cycle to facilitate better understanding and participation in the next budget formulation and to ensure continuing transparency and accountability.” The ABI Agricultural Cluster, meanwhile, recommends to “make the Open Budget Partnership Agreement more meaningful by including in the level of engagement the crafting of priorities based on the needs of agricultural stakeholders and not just limiting it to the budget.” ABI also takes a closer look at the public-private partnership (PPP), which the Aquino administration has expressed as innovative strategy to address gaps in infrastructure and to step up investments. This is one way of helping the public better understand a strategy which may make or break our country’s development potentials. Overall, the book echoes the position of ABI on the on-going initiatives to institutionalize people’s participation in the budget process: The government, in order to truly promote transparency, accountability, and democratic governance, must put all efforts to make these processes more inclusive and accessible. Participatory budgeting, in the first place, does not only involve budget monitoring but more so encouraging genuine participation and openness from Day 1 of the budget process. The doors have already been opened – and they should stay open all the time and in all stages in order to truly engage the people to participate in the budget process. So we say: “Paggugol na Matuwid: Kasama ang Tao.” It’s still a long road ahead, but we could all make it – together.
PART 1: Macro and Socioeconomic Context
Context Macroeconomic Performance and Prospects Economy on shaky ground Contrary to perceptions painted in public statements and media reports, the Philippine economy did not undergo significant structural changes to sustain its performance over the past year. The rosy picture from last year, in fact, is not exactly the workings of a progressing economy: base effects (i.e. low base effects in 2009 have caused superficially high growth rates in 2010) played a large part alongside pump-priming activities brought about by the national elections. We could see the country returning to its normal state for this year and the succeeding years. Economic growth would most likely slow down to long-term average growth rate of 4.6 percent1, discounting other external factors such as increase in prices, large-scale calamities and continued recovery of the global market. More risks to the Philippine economy are external and pertain to developments in the world economy, including political tensions in the Middle Eastern and North African (MENA) region (and a resulting high inflation due to supply constraints), Euro zone sovereign crisis, US debt problems and their continued structural weaknesses which could all pull down growth figures. Even the recent riots in European countries are expected to affect economic recovery in these countries â&#x20AC;&#x201C; and consequently in the global economic expansion. Do the assumptions capture the risks? A review of the governmentâ&#x20AC;&#x2122;s assumptions on the macroeconomy, particularly its ability to gain revenues to fund its programs, needs to be undertaken. Table 1. Macroeconomic Assumptions Parameter GNP Real Growth GDP Real Growth Inflation 364-day T-bill rate FOREX (P/$)
Actual Projected 2008 2009 2010 2011 2012 5 6.1 8.2 5.4-6.3 5.8-6.8 4.2 1.1 7.6 5.0-6.0 5.5-6.5 9.3 3.2 3.8 3.0-5.0 3.0-5.0 6.5 4.6 4.3 3.0-5.0 3.0-5.0 44.47 47.64 45.11 42.0-45.0 42.0-45.0 Source: BESF FY 2012, Department of Budget and Management
This is the compounded average growth rate of annual gross domestic product, 1998 to 2010, using the re-based and reclassified dataset from the National Accounts of the Philippines.
Growth forecasts for this year and the next are more conservative as compared to earlier forecasts of 7 to 8 percent. It appears that the government is indeed looking at the potentials of the public-private partnership (PPP) program to pull up the growth, with the Philippine Development Plan seeing it to jump to 7 to 8 percent within the term. Delays however in the implementation of the PPP program, supposedly to have been in the pipeline in this year, have raised doubts on its role in sustaining the growth momentum. But more than the delays in the PPP, the first quarter performance on the economy have raised more doubts on how forecasts would hold out even for this year. Signs of slowdown have already been seen, with sources of growth seemingly unsustainable. Growth in 2011Q1 slows down from 2010 highs Output growth slowed down in the first quarter of 2011 after coming from a high base in 2010, due to lack of government stimulus, waning base effects from 2009 low levels, weakening external demand and absence of election spending. Rising investments and strong private consumption however provided a strong base for further expansion in 2011. Table 2. Year-on-Year Rates %),Sector Per Sector Year-on-YearGrowth Growth Rates (in(in %), Per 2010
Agriculture, Hunting, Fishery, and Forestry Supply Side
Household Final Consumption Expenditure
Government Final Consumption Expenditure
Gross Domestic Product 8.4 8.9 7.3 Source: National Accounts of the Philippines, National Statistical Coordination Board
Strength coming from unsustainable sources On the supply side, the industry sector was the major driver of growth, drawing from the strength of the mining and quarrying industry (18.6 percent), the manufacturing industry (8.6 percent) and the construction industry (4.0 percent). The mining and quarrying industry banked on the uptrend of global commodity prices, especially as demand for industrial materials and precious metals increased in view of economic resurgence (for the industrial materials) and safe-haven buying (for precious minerals, such as gold and silver). While this industry helped boost the growth of gross value-added in the total industry with its double-digit growth rates, it remained weak in helping in the countryâ&#x20AC;&#x2122;s growth. Mining activities depend on the countryâ&#x20AC;&#x2122;s available resource pool, which obviously could not be replenished easily or worse, are totally depleted. Moreover, mining activities are more often contributing to environmental destruction, thus posing more risks to health and ecology. The manufacturing industry, meanwhile, benefited in 2010 from the inventory cycle of the global market (i.e. through re-stocking of inventories), thus helping increase demand. But as the return to normal cycle showed weakening in external demand, certain concerns surfaced such
ABI –Socioeconomic Context
as sustaining production and absorbing spare capacities (e.g., unemployment), particularly in the light of threats coming from higher wages, higher oil prices and other higher input costs. Agriculture picking up from last year’s lows, largely due to base effects The agriculture sector relatively improved as weather conditions somehow normalized from the extreme El Nino phenomenon. Growths in forestry, sugarcane, corn, palay and rubber helped in the improvement, but declines in the value added of fishing pulled down the growth, mainly because of increasing operational costs coming from high fuel prices, purse seine fishing in Zamboanga, and poor weather conditions in the Bicol region and the Autonomous Region in Muslim Mindanao (ARMM). The sector showed progress not only in output but more so in employment, with net generation in jobs more pronounced compared to other sectors after experiencing lows last year. The sector during the quarter absorbed around 640,000 workers, thus becoming the main source of employment. But this may just be a result of re-absorption of workers who were laid off last year. Figure 1. Net Job Creation
Source: World Bank report, “Philippine Quarterly Update”: June 2011. Primary data source: National Statistics Office
Weather conditions continue to affect the sector, on which most of the poor rely for work and income. Risks from disasters would eventually affect poverty alleviation efforts, particularly because they affect income opportunities of households. With emerging conditions such as climate change, policies on disaster risk adaptation should be put in place to counter negative effects including production losses, infrastructure damages, and loss of lives and poverty. Services have been slowing down The services sector, usually considered as the main economic driver with its 55.2 percent contribution to total gross domestic product (GDP), continued to expand although at a slower rate of 3.7 percent (from 7.2 percent of the same quarter last year, and 6.4 percent during fourth quarter of 2010).
The sector has been consistently a source of growth in the 2000s, incorporating growth both in trade (wholesale and retail, reflecting the increasing private consumption) as well as outsourcing and off-shoring sectors. Drivers for the quarter were Trade, Real Estate, Renting and Business Activities (where BPOs are lodged), and Financial Intermediation. Public administration and defense, meanwhile, took on a negative turn, reflecting the winding down of government pump-priming activities and the absence of election spending. Economy continues to be consumption-led At the demand side, private consumption remains the primary source of growth, expanding by a strong 4.9 percent and contributing almost two-thirds (69.3 percent) of total expenditures, thus seemingly affirming the long-standing observation among analysts that the countryâ&#x20AC;&#x2122;s economy is consumption-driven. Robust remittance inflows from overseas Filipino workers (OFWs) have always and will continue to fuel demand from households. Last year, OFW remittances rose 8 percent from the last year, accounting for about 9.4 percent of GDP at USD 19 billion despite sluggish global recovery. Such inflows have propped up private spending and the national economy consequently, similar to that in the past decade. Much remains the same this year as deployment continues amid political tension and threats of evacuation in the Middle Eastern and North African (MENA) region. Looming threats to OFW remittance inflows Threats from the MENA region are considered minimal as remittances from already-hit countries represent a small percent of total remittance flows: The whole MENA region, including these countries, contributes only 1.3 percent in remittances as of 2010. But threat may build up if unrest spreads to more progressive countries within MENA like Saudi Arabia and the United Arab Emirates. Posing more threats are the ongoing debt crises in advanced economies, particularly the US and the Euro zone. Employment prospects have decreased in these countries as markets remained weak, warning a possible double-dip recession. Low government spending takes its toll Government spending, meanwhile, plunged significantly by 17.2 percent, coming from a high base last year buoyed by stimulus programs and election spending. Issues of under-spending have surfaced, particularly on promised front-loading infrastructure activities, due to government efforts on improving cost-efficiency. Such underspending met criticisms although they were done in good faith. Activities were programmed in consideration of seasonal factors such as climate that is why some infrastructure project could not be easily implemented in any given month. Generally stable economy favoring investments Offsetting low government spending was the growth in capital formation or investments, particularly in durable equipment and private construction. This was more or less due to an accommodative environment (e.g., low borrowing rates that could propel expansion of production, high liquidity or availability of funds in the market to accommodate the same, etc) partnered with a somewhat manageable inflation outlook.
ABI â&#x20AC;&#x201C;Socioeconomic Context
Inflationary threats have been minimal, as seen with inflation rates falling within government target of 3 to 5 percent2, despite high liquidity and rising prices. Appreciation of the peso might have helped keep the lid on pressures, particularly those coming from the supply side, as imported goods used for production (e.g., fuel, equipment, intermediate inputs) have become relatively less costly. With such stable indicators and an economy proving to be resilient for the most part, the Philippines was one of the emerging economies that have attracted foreign direct investments, aside from portfolio money that has flooded the market. However, compared to its counterparts in the region, it remains well below the investment radar. Figure 2. Net Inflow of FDIs as Percent of GDP
Net inflow of FDIs as percent of GDP
25 Philippines 20
Singapore Thailand Vietnam
Cambodia Lao PDR Malaysia
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 -5
Source: World Development Indicators (WDI), accessed at http://databank.worldbank.org/ddp/home.do?Step=1&id=4 on July 31, 2011
External trade decelerating Trade deficit was observed as exports weakened due to the anemic demand. It registered a meek 3.3 percent, considerably a huge step back from last yearâ&#x20AC;&#x2122;s double-digit growth rates. This was the downside of a strong peso: Philippine exports became more expensive in the global market, thus making them less competitive. This might present some danger as far as sustaining growth momentum is concerned. While the country is admittedly not export-reliant, the manufacturing sector is tied to exports and the slowdown of which can therefore adversely affect not just output but employment as well. Couple it with increasing costs and the sector, particularly those firms still reeling from the effects of 2008 price crisis and low profits in 2009, will find it even harder to absorb the stock of unemployed.
Year-to-date inflation rate (as of writing: August 11, 2011) has been registered at 4.3%, using year 2000 as base year.
Downside risks to growth for this year and the next Inflation as a threat to output growth Inflation is seen to fall within government target of 3 to 5 percent for the next two years, but given rising costs of overhead commodities, particularly fuel (largely due to tensions in oilproducing countries and high demand from emerging economies) and continued weather-related disturbances that in turn constrain food supplies, there are concerns on a repeat of the 2008 price crisis. Still, intervention of the Bangko Sentral ng Pilipinas could only do so much (e.g., further withdrawing stimulus measures implemented during 2009 crisis and siphoning liquidity build-up in the market) to relieve pressures from the demand side at this point. However, supply-side concerns, much even more so from external factors, are harder to address and pose bigger risks to growth and outlook. On a micro level, rising inflation will definitely impact households, particularly those belonging to low-income groups. Studies show (Son 2008, Asian Development Bank 2008) that poverty deepens during high inflation periods characterized by high food prices. This comes as no surprise since the poor’s basket of goods is predominantly food. The pitfalls of peso appreciation The rising domestic currency is largely due to market forces, particularly external developments such as inflow of capital from abroad and a weak dollar brought by risks and bleak outlook on the US growth and recovery. But with the Philippines’ floating exchange rate policy, there is little which government intervention can do to sustain our price competitiveness in exporting goods and services. The government however can look into further assistance to industries tied to goods and services export, such as financial help, product development, ease of transactions and lower input costs to cope with this trend. Moreover, the country should be working on increasing its domestic capacity in order to shield itself from possible future shocks -- an area in which the national budget can give redress. On the US credit downgrading: Is “de-coupling” really a myth? Recent news on the downgrading shook markets worldwide, fanning fears of a double-dip recession in advanced economies. As seen in the recent financial crisis, developments in these countries, particularly the “Big Three” -- US, Euro zone and Japan -- have effects on the Philippine economy. The downgrading thus poses risks to the country’s economic outlook, passing mostly through the country’s foreign exchange market (pushing the peso value up some more) and remittance flows that may possibly slow down due to lower employment opportunities abroad. With such effects, estimates and projections of government must be looked at, particularly since they may affect the government’s ability to raise revenues. Social Development Situation (Poverty, Hunger, Employment) The country’s labor market: weak and underdeveloped As analysts have observed, structural weaknesses in the labor market pervade, with visible underemployment (defined as those working below standard working hours) still remaining high in the country --even higher than the unemployment rate.
ABI –Socioeconomic Context
Table 3. Unemployed and Underemployed (in millions) Period 2009Q1 2009Q2 2009Q3 2009Q4 2010Q1 2010Q2 2010Q3 2010Q4 2011Q1 2011Q2
Unemployed Persons 2.85 2.83 2.92 2.72 2.83 3.10 2.71 2.80 2.92 2.87
Underemployed Persons 6.24 6.62 7.03 6.88 7.10 6.30 6.49 7.14 7.05 7.13
Source: National Statistics Office
Such numbers reflect the quality of opportunities for workers in the country. With most of the labor supply (particularly the less-skilled ones) relying on contractual jobs, they are all the more susceptible to lay-offs and are deprived of benefits that permanent positions offer (e.g., health insurance, mandated bonuses, etc). In fact, not much has changed in the employment picture even during the crisis. Even when the country was posting “gains” in 2010, it unfortunately remained the same – anemic. Figure 3. Number of Unemployed Persons and Year-on-Year Growth (1st Qtr 2009 – 2nd Qtr 2011) First Quarter 2009 to Second Quarter 2011 3200.00
Unemployed Persons, in thousands
Unemployment growth rate, in percent
-10.00 2009:1 2009:2 2009:3 2009:4 2010:1 2010:2 2010:3 2010:4 2011:1 2011:2
Source: National Statistics Office
Addressing poverty requires more attention than ever Income poverty has worsened, with the number of poor households rising 5.0 percent to 3.855 million and the poor people increasing 4.4 percent to 23.142 million in 2009 from 2006 (see figures below). Poverty incidence of families, or the proportion of families whose income cannot provide for the basic food and non-food requirements called the poverty threshold to the total number of families (according to the National Statistical Coordination Board), has decreased although marginally – not enough to be considered an improvement in terms of poverty alleviation.
Poverty incidence of population, in fact, has shown a continuing uptrend. There is reason to suspect that this trend, matched with the figure on household poverty incidence, is indicative of large-sized families more prominent in income groups living below the poverty line. Poor families are trapped even more in poverty if they have large family sizes because of risks such as low human capital development and maternal health deterioration, among others. This makes the need for the policy actions on reproductive health even more pressing. What the legislative mills fail to accomplish should be addressed by the national budget if the administration is seriously bent on pushing for the objectives of the RH bill.
Year 2003 2006 2009
Table 4. Income Poverty, Number and Incidence Magnitude (in millions) Poverty Incidence (in %)
HH 3.293 3.671 3.856
Population 19.797 22.173 23.142
HH 20.0 21.1 20.9
Population 24.9 26.4 26.5
Source: National Statistical Coordination Board, accessed at <http://www.nscb.gov.ph/poverty/2009/tables.asp> on July 31, 2011
Food or subsistence poverty, meanwhile, has been on the downtrend despite the food crisis that struck the markets in 2008. Table 5. Food Poverty, Number and Incidence Magnitude (in millions) Poverty Incidence (in %) Year HH Population HH Population 2003 1.358 8.803 8.2 11.1 2006 1.512 9.851 8.7 11.7 2009 1.454 9.440 7.9 10.8 Source: National Statistical Coordination Board, accessed at <http://www.nscb.gov.ph/poverty/2009/tables.asp> on July 31, 2011
Despite â&#x20AC;&#x153;gainsâ&#x20AC;?, self-rated poverty and hunger have gone up at the start of the year Even when the country was supposedly enjoying high growth rate in 2010, social surveys indicate that poverty and hunger have been on the rise from the previous year. But there was improvement from March data: results show that the proportion of families experiencing involuntary hunger at least once in the past three months was recorded at 15.1 percent or an estimated 3 million families. It went down significantly from the March 2011 figure of 20.5 percent (4.1 million families). Breaking the figures down however revealed that situations in Visayas and Mindanao were deteriorating. Hunger rose 6.3 points in the Visayas, from 14.7 percent in March (estimated 560,000 families) to 21.0 percent (est. 804,000 families) in June. As for Mindanao, hunger rose 5.0 points, from 16.7 percent in March (est. 795,000 families) to 21.7 percent in June (est. 1.0 million families).
ABI –Socioeconomic Context
Figure 4. Self-rated Poverty (Apr 1983 – Jun 2011)
Source: Social Weather Station, accessed at <http://www.sws.org.ph/> on July 27, 2011
Figure 5. Self-rated Food Poverty (Sept 1988 – Jun 2011)
Source: Social Weather Station, accessed at <http://www.sws.org.ph/> on July 31, 2011
Going Back to Fundamentals: The Budget as an Effective Tool THE RECENT CRISES AND THE ONGOING PROBLEMS IN THE GLOBAL ENVIRONMENT may have retracted some progress that the country has made. In an increasingly globalized setup, we are becoming more vulnerable to external shocks, unless our dependence lies on our domestic capacity and capabilities – one that the budget can seek to ensure by developing fundamentals in keeping our economy strong and our development efforts sustainable.
The budget should therefore address: Stability of economy through increased domestic capacity. Dependence on international transactions may leave us susceptible to possible external shocks; while exports and consumption funded by remittances have worked significantly in boosting our growth, the government must work on opening the economy further to more domestic employment opportunities. These include removing bottlenecks in investment not just of foreign capital but of domestic entrepreneurship, particularly the micro, small and medium enterprises, by reducing costs of doing business, ensuring infrastructure in areas that need it the most (especially rural areas), and improving bureaucratic efficiency. Sustainable development. We should start investing in ways that would harness our natural resources in a sustainable way, veering away from extracting resources that can be depleted and moving towards utilizing those that are renewable. Harnessing renewable energy sources would likewise help minimize our vulnerability from oil price shocks that tend to affect not just production in the country, but the welfare of households, particularly the poor. Ability of government agencies to respond to random adverse shocks such as natural disasters. With the climate change phenomenon proving to be quite an adversary in combating poverty, the government must be able to ensure that sufficient and efficient investment is undertaken to enhance our capacity for climate change adaptation and disaster risk reduction and management. Funds should be directed to helping highly vulnerable areas, which are most likely those having highest incidence of poverty, considering the linkages of weather disturbances, agriculture and poverty. Social development challenges, particularly those that persist such as poverty and unemployment. Conditional cash transfer (CCT) programs have been proven to be effective in helping the poor cope with the day-to-day requirements and in investing in human capital development as well. But such a program will be ineffective without complementary measures that capacitate the supply side; health and education facilities may not be able to accommodate the resulting increase in demand and thus might not be able to help the program reach its final objective alleviating poverty in the long run. Moreover, the government should look beyond the promises of CCT and look into the other grassroots problem of poverty -- the lack of employment opportunities -- which trap the poor in a never-ending poverty cycle. At the end of the day, sustainable and complementary measures should be looked into in helping the country reach its development goals, particularly in view of the nearing Millennium Development Goals deadline in 2015.
ABI â&#x20AC;&#x201C;Socioeconomic Context
Analysis of the 2012 Budget Assessment of Revenue Program Tax revenues to prop up government finances for FY 2012 Tax revenues are expected to prop up government finances for 2012, albeit the increase in programmed collections for the year would slow down to 13.5 percent compared to the growth in collections in 2011 (16 percent). This comes as no surprise considering the waning of base effects from 2009 lows. Table 6. Revenue Sources Amount (in billion pesos)
Tax Revenues Non-tax Revenues TOTAL
Growth rate (in %) 2011- 20122010 2011 16.4 13.5 20.8 (10.9)
Source: BESF FY 2012
Non-tax revenues, accounting 8.5 percent, is less next year by 10.9 percent, thus reflecting the administrationâ&#x20AC;&#x2122;s stance in lessening dependence on non-recurring and unsustainable sources of revenues. Programmed privatization proceeds, in particular, would go down from PhP 6 billion this year to PhP 2 billion next year. Figure 6. Sources of Tax Revenues, FY 2012
FY 2012 Tax Revenue Program, by source 6.5% 48.5%
Net Income Profits Property
Domestic Goods & Services Int'l Trade & Transactions
0.2% Source: BESF FY 2012
Breaking down tax revenues shows that government will be sourcing most of its coffers largely from taxes on domestic goods and services and net income profits, both of which have
been eroded the past years due to measures that sought to cushion the effects of the price crisis in 2008 and the global economic crisis in 2009. Preliminary estimates of the Department of Finance indicated that 2010 alone saw foregone revenues between PhP 84.05 billion to PhP 89.05 billion, excluding measures that grant incentives such as the New Cooperative Code and the Renewable Energy Act; income lost was definitely seen as greater than revenues sourced from the Reformed Value Added Tax scheme. The Bureau of Internal Revenues (BIR) will account for 73.8 percent (PhP 1.273 trillion) of total tax collections, while 25.3 percent (PhP 365.1 billion) will come from the Bureau of Customs (BOC). Concerns on the sustainability of these projections continue to surface considering the developments on fiscal measures. Early on, the current administration has promised no new taxes for its first two years in position, although reports showed that proposals on sin taxes have recently surfaced as one of its priorities. The current administration at this point appears to hold on to the promise of efficient tax collections through reforms included in the budget such as increased capacity of BIR and BOC in running after evaders and improving taxpayer services as well as anti-smuggling campaigns, among others. Are revenues from international trade and Transactions over-estimated? Figure 7. Comparative Revenues from International Trade and Transactions Int'l Trade & Transactions, in million pesos 70,000
Source: BESF FY 2012
It was observed however that international trade revenues are expected to be higher compared to 2010; the administration has programmed an increase of 19.08 percent to PhP 94.664 billion from 2011 projections. This is even higher than 2010's PhP 80.896 billion by 17 percent, lending doubts especially since 2012 could see exports tapering off due to normalization of inventory cycle during the year. Moreover, imports are expected to weaken as well; historical data show that exports and imports move at the same trend, especially since some manufacturing firms that produce exportable goods have to buy most of their inputs from external sources. Export of electronic components, which contribute more than half of total export receipts (roughly 65 percent), is one clear-cut example of this.
ABI –Socioeconomic Context
Figure 8. Growth in Exports and Imports, 2009Q1 to 2011Q1 30.00 Exports
Imports 20.00 10.00 -
2011:1 (10.00) (20.00)
Sources: 2011Q1 National Accounts of the Philippines, NSCB
Assessment of Borrowing Program Outstanding debt reached PhP 4.7 trillion as of year-end 2010 Outstanding debt has already reached PhP 4.7 trillion as of 2010 year-end, 7.3 percent higher than the same period of last year’s PhP 4.4 trillion. National government deficit is just one item in the books as far as public sector debt is concerned. Government-owned and -controlled corporations (GOCCs), government financial institutions (GFIs) and local government units (LGUs) likewise contribute to the growing debt. Table 7. Consolidated Public Sector Financial Position (as % of GDP), FY 2009 to FY 2012 2011 (Revised) (3.3) (3.0) (0.1)
2012 (BESF) (2.9) (2.6) (0.1)
(0.8) 0.1 0.0 -
OTHER PUBLIC SECTOR 1.1 0.2 SSS/GSIS/PHIC 0.6 0.4 Bangko Sentral ng Pilipinas(BSP) 0.0 (0.7) Government Financial Institutions 0.1 0.1 Local Government Units 0.4 0.4 Timing Adjustment of Interest Payments to BSP 0.0 0.0 Other Adjustments 0.0 0.0 CONSOLIDATED PUBLIC SECTOR SURPLUS/(DEFICIT) (3.0) (4.0) Source: FY 2012 BESF, primarily from Department of Finance
0.9 0.4 0.0 0.1 0.4
PUBLIC SECTOR BORROWING REQUIREMENT National Government CB Restructuring Monitored Government Owned and Controlled Corporations(GOCCs) Adjustment in Net Lending and Equity to GOCCs Other Adjustments
2009 (Actual) (4.1) (3.7) (0.1) (0.2) 0.0 -
2010 (Preliminary) (4.3) (3.5) (0.1)
0.8 0.3 0.0 0.1 0.4 (2.4)
Financing ballooning debt requires government to borrow PhP 704.3 billion Financing the ballooning debt and the PhP 286 billion deficit of the National Government for next year meant government programming a total of PhP 704.3 billion worth of borrowings, PhP 174.8 billion of which will come from foreign sources and PhP 529.5 billion from the domestic market. Table 8. National Government Financing, FY 2010 to FY 2012 (in billion pesos)
GROSS FOREIGN BORROWINGS Net Foreign Borrowings Gross foreign Borrowings, as % of GDP GROSS DOMESTIC BORROWINGS Net Domestic Borrowings Gross Domestic Borrowings, as % of GDP NET FINANCING TOTAL NET FINANCING REQUIREMENT
257.36 133.05 2.9% 489.84 218.60 5.4% 351.65 314.46
191.84 48.10 1.9% 546.33 261.20 5.5% 309.30 300.00
174.77 108.92 1.6% 529.49 189.87 4.8% 298.80 286.00
Source: FY 2012 BESF Notes: a/ Based on actual data reported in the Cash Operations Report (COR)
Assessment of Expenditure Program National Government is planning to spend PhP 1.8 trillion for FY 2012, 10.4 percent higher than this year Figure 9. Comparative Figures of FY 2011 Programmed and FY 2012 Proposed Budget (In billion pesos) 2,000 1,800
1,600 In Billion pesos
941 712 724
600 400 200 Total Obligations
Sources: BESF FY 2012 and FY 2011 GAA Note: Special Purpose Funds include debt service payments
Special Purpose Funds
ABI –Socioeconomic Context
Capital outlay to grow due to PPP in FY 2012, but what about allocations for it in FY 2011 budget? Capital outlay is bigger this year by 33.5 percent indicating the administration’s strategy in boosting infrastructure. This is further boosted by government plans to push through with bigticket infrastructure projects under the PPP scheme starting this year to next, setting aside a reported PhP 22.1 billion as counterpart funding for projects lodged under the Department of Public Works and Highways (DPWH), Department of Agriculture (DA) and Department of Transportation and Communication (DOTC). However, PhP 12.5 billion has already been allocated in the FY 2011 budget under the assumption that the identified PPP priority projects will be rolled out this year. Recent developments on the program beg questions on the fulfillment of this plan and how the said PhP 12.5 billion will be spent. Other questions pertain to the program’s effectiveness in pumppriming the economy to 7 to 8 percent growth rates. (Note from the author: A separate section on PPP is given space in the latter part of the book.)
Table 9. Total National Government obligations by expenditure class, FY 2010 to FY 2012 (In thousand pesos) 2010 Actual 457.56 812.99 193.17 9.26 1,472.98
Expense Class PS MOOE CO Net Lending TOTAL
2011 Adjusted 540.16 897.12 192.72 15.00 1,645.00
2012 % Change Proposed FY 2012- 2011 593.29 9.8% 942.42 5.0% 257.29 33.5% 23.00 53.3% 1,816.00 10.4%
Source: BESF FY 2012
Financing current operating expenses still unsustainable A good indicator of sustainability as far as budgetary operations are concerned entails revenues keeping up with at least the current operating expenses (COE), i.e., Personal Services plus Maintenance and Other Operating Expenses, which all denote how national government can spend within its means. Looking at the ratio of COE to total revenues, FY 2012 appears to be moving towards sustainability as figures indicate that total revenues can more than cover COE. Table 10. Percent to Total Revenues, FY 2010 to FY 2012 2010 2011 2012 PARTICULARS Actual Adjusted Proposed PS MOOE Total Current Operating Exp
37.9% 67.3% 105.2%
38.3% 63.6% 101.8%
37.8% 60.1% 97.9%
Source: author’s own computations based on the BESF FY 2012
Using tax revenues as base, however, the figures exceed the 100-percent mark, indicating the lack of support for COE when relying on taxes alone.
Table 11. Percent to Total Tax Revenues, FY 2010 to FY 2012 2010 2011 2012 % to total TAX revenues Actual Adjusted Proposed PS MOOE Total Current Operating Exp
41.8% 74.3% 116.2%
42.4% 70.5% 112.9%
41.0% 65.2% 106.2%
Source: Authorâ&#x20AC;&#x2122;s own computations based on the BESF FY 2012
SECTORAL DISTRIBUTION: Social and economic services getting the biggest shares Figure 10. FY 2012 Distribution of Total Obligations, by sector
Distribution by sector (in %), FY 2012
Economic Services Social Services
18.29 31.71 6.23
Defense General Public Services Net Lending Debt Services
Source: BESF FY 2012
Distributing total obligations by sector, social services are given the lion's share followed by economic services. Such had been the trend the past two fiscal years (FY 2010 and 2011), with the two servicesâ&#x20AC;&#x2122; share increasing from 28.2 percent in 2010 to 31.7 percent and 31.7 percent in 2011 and 2012, respectively. Economic services, meanwhile, records the highest increment from last year (next to net lending) at 21.3 percent, driven by investments in power and energy, natural resources and environment, and agriculture and agrarian reform.
ABI â&#x20AC;&#x201C;Socioeconomic Context
In billion Pesos
Figure 11. Comparative Sectoral Distribution, FY 2010 to FY 2012 700 600 500 400 300 200 100 0 Economic Services
FY 2010 (Actual)
General Public Services
FY 2011 (Adjusted)
FY 2012 (Proposed)
Source: BESF FY 2012 (Note from Author: Details on sub-sectoral analysis, particularly on economic and social services shall be discussed later on.)
REGIONAL DISTRIBUTION: Is there equity in distributing the pie? Regions that are close to the National Capital Region (NCR) are taking large slices of the budget, namely Regions IV and III at 6.2 percent (PhP 112.45 billion) and 3.7 percent (PhP 67.574 billion), respectively. Table 12. Top Five Recipient Regions of Total National Budget (amount in billion pesos) FY 2012 % share Region1/ Levels to total Region IV (Total)2/ 112.45 6.2% NCR 74.78 4.1% Region III 67.57 3.7% Region VI 62.59 3.4% RegionVII 54.35 3.0% Source: BESF FY 2012 Notes: 1/ Ranking does not include allocations for the Central Office and Nationwide, which took 29 percent and 27 percent, respectively. 2/ Region 4 figures herein represent the combined allocations for Regions IVA and IVB plus the questionable Region IV itemized in the budget.
Belonging to the group of those which received the lowest allocations are mostly from the Mindanao group of islands, excluding the Cordillera Autonomous Region (CAR) which ranked first.
Table 13. Lowest five recipient regions of total National Budget (amount in billion pesos) FY 2012 % share Region Levels to total CAR 25.77 1.4% CARAGA 30.07 1.7% Region IX 34.68 1.9% Region XII 36.33 2.0% Region XI 36.39 2.0% Source: BESF FY 2012
Out of the PhP 1.8 trillion National Expenditure Plan, only PhP 1.254 trillion allocated for new appropriations that are subject of Congressional approval. Figure 12. Breakdown of New Appropriations, FY 2012
17% 70% 13% 161.690
New appropriations, FY 2012 (in billion pesos) Agencies/Departments
Source: National Expenditure Program, FY 2012
Proposed new appropriations next year amount to PhP 1.254 trillion, representing about 69 percent of the total expenditure program. Of this amount, 70 percent (PhP 880 billion) will be granted to agencies/departments, 17 percent (PhP 212.3 billion) to programmed special purpose funds and 13 percent (PhP 161.7 billion) to un-programmed funds (which can be tapped should actual revenues exceed the programmed). The issue on un-programmed funds remains a concern for those who seek increased accountability, particularly from the executive side. While the presence of such funds provide the government leeway and an easy hand in addressing vital concerns, particularly those that need to dispense with the tedious process of Congressional approval, it still somehow creates incentives
ABI –Socioeconomic Context
of abuse and misuse, not to mention circumvention of the basic principle of Congress’ ‘power of the purse’. There is the proviso of “revenues exceeding programmed collections” to guarantee practicality but the more important question is whether the presence of other lump-sum funds that serve as contingent does not suffice. As it is, the National Government already provides for calamity fund amounting to PhP 7.5 billion and contingent fund of PhP 1 billion. Table 14. Special Purpose Funds, FY 2012 (In billion pesos) SPECIAL PURPOSE FUNDS
Budgetary Support to Government Corporations
Allocation to Local Government Units
DepEd Educational Facilities Fund
International Commitments Fund
Retirement Benefits Fund
Priority Development Assistance Fund
Tax Expenditure Fund
Miscellaneous Personnel Benefits Fund
Debt Service Payments
Total SPF- Programmed Appropriations 612.56 Sources: FY 2012 BESF and FY 2012 NEP
Distribution of new appropriations by agency/department In terms of new appropriations, the Department of Education (DepEd) gets the highest share at PhP 215 billion up by 11.4 percent from this year, while the Department of Public Works and Highways (DPWH) gets the second top spot at PhP 109.6 billion, 8.7 percent more than 2011 budget. The Department of Agriculture, meanwhile, receives the largest budgetary increase (54.6 percent to PhP 53.7 billion) followed by the Department of Social Welfare and Development, increasing 44.1 percent from PhP 34.2 billion.
Table 15. Top 5 Recipient Agencies of New Appropriations, FY 2011 (GAA) and FY 2012 (proposed) TOP 5 RECIPIENT AGENCIES In million pesos % change FY 2012 FY 2011 DEPARTMENT VARIANCE (Proposed) GAA Education 1/ 215,338.97 193,312.86 22,026.11 11.4% Public Works and Highways 109,633.41 100,826.08 8,807.32 8.7% National Defense 106,750.02 104,504.92 2,245.10 2.1% Interior and Local Government 95,064.44 69,377.19 25,687.25 37.0% Agriculture 53,743.02 34,757.97 18,985.05 54.6% Source: National Expenditure Program, FY 2012 and 2011 GAA Note: 1/ Including DepEd Educational Facilities Fund * Ranking 6th is DSWD with allocation amounting to PhP 49.3 billion, up from 2011 new appropriation budget of PhP 34.75 billion.
Meanwhile, the Joint Executive-Legislative Council receives the lowest allotment at PhP 2.14 million, 2.2 percent lower than this yearâ&#x20AC;&#x2122;s appropriations. The Office of the Vice President, despite receiving a budgetary increase of 117.1 percent to PhP 401.79 million next year, ranks third in terms of having the lowest allocation. Unfortunately, the Commission on Human Rights is among those receiving the lowest allocations, with new appropriations amounting to PhP 263.1 million --lower than this yearâ&#x20AC;&#x2122;s PhP 266.9 million and even more so from the reported original proposal of PhP 403 million, despite the worsening problems of human rights violations carried over to the current administration. Table 16. Five Lowest Recipients of New Appropriations, FY 2011 (GAA) and FY 2012 (proposed) LOWEST 5 RECIPIENT AGENCIES In million pesos FY 2012 FY 2011 DEPARTMENT VARIANCE (Proposed) GAA Joint Executive-Legislative Council 2.14 2.19 (0.05) Commission on Human Rights 263.10 266.90 (3.80) Office of the Vice President 401.79 185.11 216.68 Civil Service Commission 654.41 666.85 (12.44) Office of the Ombudsman 740.95 1,031.90 (290.95) Source: National Expenditure Program, FY 2012 and 2011 GAA
% change -2.2% -1.4% 117.1% -1.9% -28.2%
PART 2: CSO Engagement & Analysis of the 2012 Budget
Introduction THE ALTERNATIVE BUDGET INITIATIVE (ABI) HAS BEEN PURSUING PARTICIPATORY budgeting for almost half a decade now and has made further strides in budget advocacy work by being effectively engaged in key avenues of civil society participation in the efforts to reform the budget process. ABI sees the need to engage the arena of public budgeting as part of its effort to hold government accountable to its commitment and responsibility to protect human rights, promote social justice and pursue sustainable development. While it welcomes the governmentâ&#x20AC;&#x2122;s initiative to put in place new policies to open the 2012 budget preparation process to consultations with civil society organizations (CSOs) and other stakeholders, ABI believes that assessing the implementation of mechanisms set forth by the Department of Budget and Management (DBM) and key agencies is vital for gauging its effectiveness and foreseeing the necessary reforms to make the policies more meaningful.
Policies on CSO Participation in the 2012 Budget Preparation Phase 2012 Budget Call: National Budget Memorandum 107 THE 2012 BUDGET CALL, ALSO KNOWN AS THE NATIONAL BUDGET MEMORANDUM 107 which the DBM issued on December 30, 2010, provided guidelines for the conduct of consultations at the central and regional levels of key government agencies with CSOs, private sector and other stakeholders to secure feedback on agency programs and projects. Section 6.3 of NBM 107 mandated six departments to implement pilot budget consultations. These are the Department of Agriculture, Department of Agrarian Reform, Department of Education, Department of Health, Department of Public Works and Highways, and the Department of Social Welfare and Development. Section 6.3.1 of NBM 107 stated the principles of CSO engagement which would help guide in the conduct of consultations, namely, transparency, accountability, integrity, partnership, consultation and mutual empowerment, respect for internal process, sustainability and national interest.
National Budget Memorandum 109 DBM AND SELECTED CSOS WITH THE ABI CAME TOGETHER IN TWO CONSULTATIVE meetings -- on December 29, 2010 and February 8, 2011 -- to discuss and form consensus on the draft another DBM Circular to enhance the engagement. On February 17, 2011, the circular was formally issued as NBM 109, providing the mechanism which involves the coverage, procedure, execution, and institutionalization of the partnership and participation of CSOs and other stakeholders in the preparation of budget proposals. It sets specific guidelines on CSO consultations at both national (through the central offices) and regional (through regional development councils) levels. Implementers of NBM 109 include the six pilot departments assigned to implement NBM 107 as well as three government-owned and –controlled corporations (GOCCs), namely, the National Food Authority, National Housing Authority and the National Home Mortgage Finance Corporation. Other national government agencies (NGAs) and GOCCs are not obviously precluded in the process but may partner with CSOs within the parameters stated in Section 2 of NBM 109. The DBM has implemented citizen participation through formal engagement called Budget Partnership Agreement (BPA) wherein interested CSOs are required to submit supporting documents such as board resolution and proofs of existence and intent (Section 5.5.3, NBM 109). (Please see attached Annex F of NBM 109 or the Budget Partnership Agreement form.)
Critique on the Policies WHILE IT WELCOMED THE DBM’S INITIATIVE TO ENSURE CSO ENGAGEMENT IN the budget preparation phase, ABI raised several issues regarding the process and content of NBM 109, more specifically the BPA as mechanism of participation. ABI specifically expressed these concerns: Restrictive process of BPA ABI BELIEVES THAT THE INTENT TO SUPPOSEDLY OPEN THE BUDGET PREPARATION phase to CSO participation would become exclusive rather than inclusive of interested CSOs because of the tedious registration process before qualifying as party to the BPA. ABI registered this concern in the February 2011 consultative meeting and called for an inclusive rather than restrictive approach to the BPA. DBM however still upheld the registration requirement under NBM 109. ABI also raised concern on the coverage of the BPA: DBM allowed CSO participation to take place in only a limited number of executive agencies and GOCCs, thus leaving out other key departments or clusters such as the environment. Not listed as those to pilot CSO engagement, these key departments and GOCCs logically did not feel obliged to respond to CSOs, including ABI cluster members which submitted letters of intent to engage the budget preparation phase. They ignored, argued that the terms of the department’s CSO engagement was still under negotiation, or simply denied the request for CSO engagement due to lack of time and capacity to accommodate such.
CSO Engagement on the 2012 Budget Preparation Phase
Lack of access to budget information THE ISSUE OF HOW CSOs WOULD BE REFERRED TO WAS ALSO BROUGHT UP DURING the February 2011 consultative meeting. CSOs would initially be called formal partners once they entered the BPA, or informal members if they were not under any agreement but were taking part through formal partners. Section 3.8 of NBM 109 finally said that CSOs would be called either Partner CSO or non-partner CSO. ABI expressed concern on the effect of these terms to the groups’ access to budget information and documents. It asserted in the consultative meeting that participating CSOs, whether or not they enter partnership agreements, should be provided equal access to information on the budget. Role limited to monitoring ABI POINTED OUT THAT NBM 109 AND THE BPA FORM (ANNEX A, NBM 109) LIMIT THE CSOs’ participation merely to budget monitoring/tracking of ongoing programs and projects (PAPs). ABI argued that policy advocacy on the budget requires more participation to influence policy goals in all cycles of the budget process.
Participation in the FY 2012 Budget Preparation Phase: The ABI Experience ABI HAS SUSTAINED EFFORTS TO ENGAGE THE GOVERNMENT FOR PARTICIPATORY budgeting, which has been the coalition’s core advocacy in the last five years. This year, ABI has engaged the government in the budget preparation phase mostly outside of mechanisms which NBM 109 provided. While this policy has provided overall vision and strategy in engaging the new administration on the budget, ABI has given its members per cluster free hand to engage key agencies under the BPA mechanism and to explore other forms of partnership with respective agencies. ABI has documented the experiences and challenges which its clusters met during the engagement, which it deemed as important reference to other organizations and agencies aiming to replicate similar strategies: Education Cluster Reflections in Engaging DepEd in the Budget Formulation for 2012 The Civil Society Network for Education Reforms (E-Net Philippines) in close partnership with Social Watch Philippines has been into the budget work since 2005 where it engaged the Legislature and consistently argued for equity in access and quality for basic education. It strongly advocated for programs and interventions to ensure education for all (EFA) for marginalized groups guided by its firm belief that education is a right that should be guaranteed by the government. DBM’s framework and guidelines for participatory budgeting within government agencies broadened the spaces for the E-Net Philippines and its constituency, mostly working and residing in marginalized communities to have their voices heard in crafting the education budget. Recognizing the agency budget preparation as a decisive juncture in defining the
education budget priorities, E-Net Philippines mobilized its members for the regional and national level budget meetings. In consideration of the short period given for engagements and preparations needed for orienting its members in the budget process, scrutinizing the DepEd budget and research needed for evidence-based budget proposals, the network was able to participate in three regions --- Region III, Region IV-A, Region VI and Region XI. At the national level, E-Net Philippines had more substantive participation in the three consultative meetings and in the Internal Budget Hearing conducted in Mimosa, Clark, Pampanga. E-Net Philippines and SWP prepared an Alternative Budget for Education 2012 that detailed out the urgent situations in education and how these can be addressed through a prioritization of the education budget. The alternative budget for education emphasized the need for DepEd to address the: Hiring of new teachers towards achieving 1:45 pupil ratio Medical benefits for teachers to pay for laboratory fees, treatment of tuberculosis National Competency Based Teacher Standards (NCBTS) Health and Nutrition Program Every Child a Reader Program Basic Madrasah Education in public School System Indigenous Peoples Education Government Assistance to Students and Teachers in Private Education (GASTPE) Strengthened Tech-Voc Education Program in Basic Education Education in Emergencies Gender and Development programs including those that address violence in school (Please see attached Alternative Budget policy paper on the budget.)
Gains In terms of participatory processes for budget preparations, E-Net Philippines gathered feedback from its members, the highlights of which are the following: 1. The overall leadership provided by the DBM and the all-agency consultations with civil society in crafting the guidelines for participatory budgeting were commendable and provided an overview of the objectives, principles and strategies for participatory budgeting. It motivated education advocates to appreciate budget participation within a national level push for participatory budgeting and transparency. 2. The enthusiasm of a few regions in contacting E-Net Philippines indicated openness to engage civil society in the budget preparations. Regional engagements provided a platform for local NGOs and people’s organizations to influence the education budget in their localities. These also facilitated links between the regional division offices and the civil society groups which can be maximized for future endeavors. 3. The participatory budgeting jumpstarted the creation and/or deepening of partnerships between civil society organizations themselves bound by the vision towards transparency and accountability in government. 4. The working relations developed and/or already existing between career officers within the national and regional DepEd offices and the focal persons in the civil society groups were crucial in ensuring information flow, sharing of schedules and “negotiating” participation in key budget meetings. 5. Opening up the internal budget hearing to civil society representatives was a bold step in trust-building between DepEd and CSOs which is crucial for continued participatory budgeting beyond 2012 and beyond the current administration. This venue was a learning
CSO Engagement on the 2012 Budget Preparation Phase
process for the CSO to understand the meticulous budget preparations and the offices that can be engaged all throughout the budget cycle. 6. The series of meetings at the national level -- from orientation to consultations to internal budget hearing -- provided different levels and opportunities for civil society to present its alternative budget for education and engage the budget items forwarded by Major Final Outputs (MFOs). Challenges 1. The overarching framework for DepEd programs for 2012 based on the countryâ&#x20AC;&#x2122;s Education for All commitments and within the Medium-Term Philippine Development Plan was not discussed. This could have provided the principles and reasons for the priority programs for the 2012 budget and an opportunity for government and civil society to have a dialogue on the vision of education and how this is translated into education financing priorities. 2. Members of E-Net Philippines raised the need for more pertinent documents such project reports and detailed budget ceiling for each program in DepEd, other than the budget ceilings released by DBM. E-Net and Social Watch were given a list of flagship programs, with brief descriptions of each programs but these are a rough listing of DepEdâ&#x20AC;&#x2122;s programs with data on reach, outputs and outcomes. 3. The regional discussions/orientation jump-started even before DepEd national called for an orientation which brought confusion as to the guidelines for consultations. Similarly, the schedules called by DepEd were somehow erratic â&#x20AC;&#x201C; one regional meeting was called two days before the schedule without formal notice while other meetings were postponed. To be fair, there were two regions where formal invitation was given way ahead of time. 4. There was limited time to discuss the gender perspective of the DepEd programs and budget and articulate affirmative action/budget beyond gender parity and towards genderfair education. 5. Evaluation of the DepEd programs under the zero-budgeting framework was not implemented because of the unavailability of documents. As mentioned, it is important that aside from the list of programs, documents on their budgets, reach, outputs, outcomes and assessment of implementation are crucial to enable civil society make informed opinions. 6. One-day consultation between regional DepEd and civil society is not enough to facilitate understanding and genuine dialogue on the education budget. There was little room for NGOs and POs to comment because the regional budget was presented on the day of consultation itself and in certain instances were announced as almost final. Ways Forward: Recommendations from the ABI Education Cluster 1. A review/presentation of the DepEd vision and strategic framework as it is translated into the budget is important for a more substantive dialogue. The articulations of contributions of each MFO to the overarching framework of DepEd would enable civil society to analyze the gaps better and recommend education strategies from the civil society perspective. The debate on the rhetoric, however, must be balanced by evidence-based budget discussions to ensure meaningful discussions on education financing.
2. A series of meetings (instead of one-off regional meeting) at the national and regional levels with clear timelines and objectives for the meeting would facilitate better CSO preparations for their participation and deeper grasp of opportunities for engagements. 3. Provision of pertinent documents (as mentioned above) before the meetings is important to ensure substantive and informed participation. Likewise, minutes of the meetings should be disseminated to all stakeholders present in the meeting. 4. Similarly, civil society groups should submit their proposed budget and recommendations backed up by research and framework way before the meeting with DepEd. 5. Pursue DepEd-civil society partnerships in all aspects of the budget cycle to facilitate better understanding and participation in the next budget formulation and to ensure continuing transparency and accountability. It is also important to identify areas for partnerships. Agriculture Cluster Background The ABI Agriculture Cluster’s engagement for the 2012 budget was very much different from the past. For one, it was able to engage the Department of Agriculture (DA) this season during the early budget preparation phase. Two of the cluster’s individual members took part and signed in the Open Budget Partnership-Budget Partnership Agreement (OBP-BPA) which took effect for the first time this year, although the cluster as a whole did not enter. Seeing early signs of DA’s reluctance to open up to the participatory budgeting process, ABI cluster member Alyansa Agrikultura sought the help of Senator Francisco Pangilinan, head of the Congressional Oversight Committee on Agriculture and Fisheries Modernization (COCAFM). The Senate’s COCAFM, in response, initiated to hold a Tripartite Agriculture and Fisheries’ 2025 Visioning Consultation among agriculture stakeholders in partnership with DA and the private sector led by Ka Ernie Ordonez back in February 2011. The consultation resulted in a comprehensive “wish list” for major commodity groups which was later formally submitted to the DA for consideration in its program and budget planning for 2012. This engagement through the COCAFM further snowballed and in a way became more meaningful since the cluster was able to engage different DA offices as follow up to the Agriculture and Fisheries (AF) Summit 2025. The COCAFM follow-up sessions continued from March to May 2011, wherein selected commodity leaders were invited to join specific commodity Task Forces to further sift the wish list of private agriculture stakeholders. The follow-up sessions provided the ABI Agriculture Cluster the opportunity to involve respective commodity association leaders of Alyansa Agrikultura and other commodity players outside the ABI but took part in the COCAFM visioning consultation to review the DA-proposed commodity budgets. Commodity task forces were formed to further discuss and refine the outputs. These meetings of the task forces were held from March to August 2011. Consultation Process Apart from the internal ABI Agriculture Cluster meetings, the COCAFM task forces discussed and proposed sectoral and commodity plans for 2012 to the DA. Majority of the
CSO Engagement on the 2012 Budget Preparation Phase
cluster’s members took part in the follow-up discussions with DA units assigned in programs such as: Commodity programs (HVCC, Rice, Livestock, Fisheries, Coconut) PCIC on crop insurance NIA and BSWM for irrigation Inter-departmental budgets for climate change adaptation The task forces then consolidated budget and program proposals, from which the ABI Agriculture Cluster based the 2012 proposal. The cluster internally discussed the budget proposal to its constituencies for refinement. The task forces’ proposals were presented in COCAFM-organized dialogues with DA on July 2011. The cluster also took part in the DBM-organized consultation on agriculture and rural development in the department’s office last August 10, 2011. DA Secretary Proceso Alcala himself attended this consultation. Unfortunately, his response proved to be disappointing because he believed that the AF 2025 consultation is a different process from the programming/budgeting process of the DA, thus implying that these two have no links. The engagements of the cluster, however, continued even after this DBM consultation to ensure that alternative budget proposals are integrated in the DA budget, particularly during budget deliberations in Congress and Senate. Lessons and Recommendations 1. Make the Open Budget Partnership Agreement more meaningful by including in the level of engagement the crafting of priorities based on the needs of agricultural stakeholders and not just limiting it to the budget. 2. While the cluster recognizes the role of National Agricultural and Fishery Council (NAFC) as the consultation arm of the DA, the presence of other actors to facilitate consultation processes in agriculture already indicates weakness in the department’s existing consultation platforms. The NAFC’s role should be strengthened as far as budget and program planning is concerned. 3. While the process of participatory budgeting has notably moved forward, much is to be desired in terms of genuine stakeholder engagement. Involving the stakeholders themselves in the evaluation/assessment of DA’s current programs and in the defining of its strategic direction and targets down to the level of setting indicators and methods of verification would have been better. As a matter of fact, CSO participation in the 2012 budget preparation was mainly facilitated by COCAFM and not through the Open Budget-Budget Partnership Agreement project of the DBM. It likewise becomes quite disappointing if the agency, such as the DA, remains oblivious to the true essence of the Open Budget program of the DBM, which is participatory budgeting and planning. 4. Highlight the role of the Commission on Audit (COA) into this process particularly in the evaluation/assessment of the department’s absorptive capacity, efficiency and others as an input to the assessment/planning process. 5. Capacitate the private sector up to the NAFC level in monitoring as well as crafting strategic local plans which are interlinked with regional and national plans. As it is, strategic planning for local agriculture development is not something which local government units automatically do, including eliciting participation of the private sector in local agriculture planning.
Health Cluster Inclusive Budget Partnership The ABI Health Cluster, like in the past several years of working with the DOH, was openly accommodated by the department for CSO participation in the 2012 budget preparation phase. On the February 24 BPA meeting, the DOH, ABI Health Cluster and other health CSOs decided not to formalize budget partnership due to a common view that the BPA actually hampers participation. The ABI Health Cluster immediately saw the inherent weakness of the BPA, more especially its excessive requirements for inclusion in the said agreement. Formalizing participation is not necessary since budget partnership with DOH is inclusive and cordial due to the department’s smooth relationship with CSOs. National Level Consultations At the national level, two DOH Central Office budget consultative meetings were held with CSOs (March 9 and April 6, 2011) where DOH presented the budget in general with the thrust of the government working towards universal health care (UHC) framework. DOH authorities admitted that the figures presented during the initial meeting were not yet complete and were not yet finalized during the April 6 meeting, when cluster members were able to submit proposals in the agency level proposed budget. Prior to the last consultative meeting, the cluster convened a meeting on March 30 to prepare the strategy of engagement with DOH. These included agreed upon steps: determine how the budget proposals are to be presented either individually or as a group; strategize to extend capacity in the regions for the regional consultations; and accomplish letter request to demand space for budget preparation based on the policy set by DBM and line agencies. Regional Level Consultations The cluster also took part in the regional consultations which were held in Regions 2, 3, 4-B and 12. These were the remarks: General remarks While officials prepared and presented budget proposal to CSOs, there was no discussion of coordination with the Central Office except for checking if formal invitations were sent; Some Centers for Health Development (CHDs) were not really consulted and not fully educated on the CSO participation in the budget preparation; There is no budget for adolescent health in the regions. Specific remarks Regional consultation in Region 3 had DOH CHDs in full attendance but no clear budget proposal was presented. DOH Region 3 cannot significantly move while waiting for the proposed budget from the Central Office; In case of Region 4-B, their budget proposals were not integrated in the national level. Thrust and programs were discussed but with no amounts presented. The DBM point person advised that the budget for the region should be presented with the proposed figures
CSO Engagement on the 2012 Budget Preparation Phase
Environment Cluster 2012 Budget Preparation Phase Engagements Although major agencies which the ABI Environment Cluster (ABI-ENVI) engaged were excluded in the pilot implementation of the CSO participation for the budget preparation phase, cluster members engaged the following agencies, resulting in varying degrees of success in the consultation process: La Liga Policy Institute (referred as La Liga), the ABI-ENVI secretariat, sent letters of intent to DENR and other concerned line agencies. Here were the responses: DENR – Secretary Ramon Paje expressed openness to citizen participation despite the department’s non-inclusion in the budget memorandum but did not respond to the cluster’s request. DA – La Liga was not accommodated; DOE – The department allegedly could not accommodate time for participation because of time constraints Partido Kalikasan Institute (PKI), another cluster member, also sent letters demanding for participation in the budget preparation phase. Here were the responses: DENR – On March 2011, Secretary Paje confirmed receipt of the letter request and turned over to the proper office. A consultation meeting was held in developing guidelines for citizen participation. DOE – The department denied request due to lack of time and inability to accommodate CSO participation for the 2012 budget; PK demanded to accommodate participation in the budget preparation for 2013. DOST – As of March 2011, the department had no response to the letter demanding participation in the budget preparation. DBM has directed expected outputs for CSOs to accomplish in accordance with the BPA. An evaluation report containing analyses and recommendations is needed for submission as requisite to the consultation process (Section 6, NBM 109). ABI-ENVI member PKI entered into BPA with the DA on the last week of March. But due to the department’s deficiency in providing sufficient time to facilitate proper engagement, PKI was not able to completely accomplish the requirements of expected CSO outputs in accordance with the BPA. At the regional level, the cluster observed the DA regional field offices’ designation of CSOs point persons in connection with citizens’ participation in budget preparation phase. At the local level, the cluster stressed that the NCCAP should be able to reflect on the Annual Investment Plan to influence the regional development councils. Achievements in Agency-Level Prepared Budgets The ABI-ENVI Cluster since 2010 has broadened the alternative budget campaign from DENR alone to other departments and key agencies with direct programs and budgets related to climate change. A total of almost PhP 2 billion in increased allocations for climate change actions have been adopted since then. Despite the lack of concrete engagement in the 2012 budget preparation phase, the cluster was still able to participate and hold significant activities in promoting climate-sensitive budget and ensuring climate financing.
The cluster pushed for climate sensitive budget proposals for key departments through direct engagements with them and their Secretaries and by submitting proposals to the Climate Change Commission (CCC) which reviews and proposes climate related items in the budgets of key departments. In May 2011, the cluster reported its meetings/consultations with the CCC regarding the National Climate Change Action Plan (NCCAP). The passage of the NCCAP is significant to ensure concrete initiatives are made towards promoting a climate-sensitive budget. ABI-ENVI also pushed for the DBM’s mandate for CCC to review climate related budget items in fulfillment of the call for a climate-sensitive budget. The pilot departments are DA, DENR, DPWH, and DOST. Persons with Disabilities (PWD) Cluster Background The Persons with Disabilities sector first met with Social Watch Philippines through Professors Marivic Raquiza and Alvic Padilla in May 2011 as part of the efforts of the Philippine Coalition on the Convention on the Rights of Persons with Disabilities. The Core Group of the Coalition is an alliance composed of 15 disabled peoples’ organizations (DPOs) advocating for the nine different disability constituencies: the visuallyimpaired, speech-impaired, deaf, deaf-blind, mobility-challenged, persons with: intellectual disabilities, psychosocial disabilities, chronic illness, and extensive disabilities. At the time that the sector started to join the cluster meetings of ABI, the budget cycle and CSO engagement process was well underway in the other four clusters. Thus, the Disability Sector is still very much in the learning stage of the advocacy. Consultation Process There is no formal engagement process yet at this point by the Disability Cluster. However, members of the Coalition led have been holding meetings with the Department of Social Welfare and Development (DSWD) as part of efforts to establish a Preparatory Committee to ensure full and effective participation of PWDs in this government agency. ( Note that the National Council for Disability Affairs is now under the DSWD.)
Through the individual disability constituencies, the cluster held meetings with the Department of Labor and Employment (by the Visually-Impaired for Livelihood/ Employment concerns), the judiciary (by the Deaf sector in June 2011, with the Supreme Court, Office of the Court Administrator for the institutionalization of sign language interpreting funding in trial courts), and the DSWD (c/o Life Haven for Personal Assistants). Inputs from CSOs During the ABI General Meeting on July 7, 2011, ABI gave these comments/suggestions with regard to the disability sector: Consider that it is more difficult to insert new items than to lobby for expansion of existing items; Some ‘creative’ solutions may work (according to SWP convener Prof. Leonor Briones); E.g. For the PhP 8 million proposal on Personal Assistants, the PWD cluster can ask even for instance the DPWH to give up some amounts from their
CSO Engagement on the 2012 Budget Preparation Phase
infrastructure budgets which would already go a long way toward improving the quality of life of PWDs. Involve media more to increase public attention to situation of PWDs; On alternative budget proposals ‘competing’ with each other for a ‘slice of the pie’, the strategy may be to mainstream disability concerns as crosscutting agenda (from Prof. Alvic Padilla) On the part of the stakeholders, the International Disability Alliance, the cluster’s partner, suggested to network and engage with SWP. National budget monitoring and implementation is a continuing area of collaboration with them. Lessons and Recommendations The cluster intends to request for a training workshop for our sector on preparing Alternative Budget proposals.
Conclusion ABI CLUSTERS’ ENGAGEMENT WITH DIFFERENT KEY AGENCIES FOR THE 2012 budget preparation phase resulted in different levels of experience, gains and challenges. Some agencies opened avenues through the BPA for participation but there remained problems in the implementation. Most clusters however, participated in the agency-level budget preparation even without the BPA. The NBM 109 helped extend the partnership at the regional level. Some cluster members, such as the E-Net’s network organizations in the education cluster, were able to participate in regional consultations. Problems and issues understandably came along the way in the piloting of CSO engagement for budget preparation, but the ABI expects and hopes these will be sufficiently addressed especially because the mechanism would still be used in the future. Since transparency, accountability, substantial participation and democratic governance are the anchors of this initiative, the government should put all efforts to make this process more inclusive and accessible. The essence and operationalization of participatory budgeting should not be constrained with budget tracking as much as ABI practices budget advocacy as a policy advocacy. Agencies should start rethinking their decision-making thrusts and strategies to accommodate citizens’ groups in the budget process. As it is now, the level of openness is uneven. On our part, we at the ABI consider this policy both as an opportunity and a challenge. Expansion of regional capacities stands to be a major concern. The strengths and weaknesses of the engagement likewise serve as learning experience towards improving meaningful participation in the budget process. And since the bill on people’s participation in budgeting is in progress, ABI advocates are optimistic on the institutionalization of participatory budgeting.
Assessment: Budget Allocation for Education On financing THE EDUCATION SECTOR WILL GET THE BIGGEST CHUNK OF THE PHP 1.816 TRILLION proposed budget for 2012, with a total allocation PhP 308.9 billion, or 13.8 percent higher than the PhP 271.5 billion budget for 2011. The Department of Education (DepEd) takes the biggest share with PhP 238.8 billion, representing a sharp budgetary increase of 15.2 percent from its 2011 budget of PhP 207.3 billion. This increase, the largest in over a decade, is even larger than the 12.6 percent increase in 2011. As in previous years, DepEd remains on top of all departments. The proposed budget for basic education includes these allocations: PhP 17.4 billion for basic educational facilities including construction and repair or rehabilitation of 45,231 classrooms; procurement of more than 2.53 million school desks and chairs; and construction of 25,667 water and sanitation facilities. An additional PhP 1 billion shall be funded from the regular school building program. PhP 2.9 billion for the hiring of 13,000 more teachers to address current teacher shortage (which is on top of the PhP 8.9 billion allocation out of the Miscellaneous Personnel Benefits Fund (MPBF) PhP 2.6 billion for the procurement of 45.5 million textbooks and teachers’ manuals PhP 6.3 billion to support the expansion of Government Assistance to Students and Teachers in Private Education (GASTPE) to benefit one million grantees in 2012, increasing from 691,494 in 2010 and 757,401 in 2011 PhP 1.9 billion for the universal kindergarten program to benefit 1.7 million five-year old children served by the public school sector While the proposed budget for 2012 shows significant increases in some of the regular budget items, critical programs apart from formal education have remained poorly funded and virtually ignored. Concerns are raised that the budget focuses almost entirely on the formal school system and speaks little on out-of-school children and other marginalized groups. More and sustained investments are also needed to significantly improve the quality of public education which has deteriorated consistently over the years. The country is still catching up from years of neglect and mismanagement of the education sector, and remains far from the desirable level of public investment in education, thus keeping the Philippines as among the lowest education spender in Asia and the rest of the world. The country’s spending level is below the East Asian regional average of 3.6 percent of gross domestic product (GDP) and South Asia’s average of 3.8 percent. When classified per each country’s income categories, the spending level of the Philippines (a middle-income country) on education was even lower than the median (3.9 percent of GDP) expenditure of countries
Proposal for Education Budget for FY 2012
belonging to the lowest income group. This is despite the latest report on the progress of the Millennium Development Goals (MDGs) where the government admitted that the education â&#x20AC;&#x153;target of universal access to elementary education by 2015 is in great risk of not being achieved.â&#x20AC;? More so, the report acknowledged that the targets on education and on maternal health have the lowest chances of success. The Civil Society Network for Education Reforms (E-Net Philippines) and Social Watch Philippines noted that despite having the biggest share in the national budget in the last years, the education budget allocation still lags behind required resources to catch up and meet the 2015 targets based on studies conducted by the National Economic Development Authority (NEDA) and the United Nations Development Programme (UNDP). International benchmarks endorsed by the United Nations Educational, Scientific and Cultural Organization (UNESCO) set the desirable level of total education expenditure at 6 percent of GDP and 20 percent of total public expenditure. Certainly, much more effort and resources will be needed to cover the shortfalls and underinvestment of the past several decades. On the quality THE COUNTRY STILL NEEDS TO SERIOUSLY SUPPORT INITIATIVES TO UPGRADE the quality of education delivered to Filipino school children. While modest improvements were achieved in recent years as indicated by slowly improving national achievement tests scores, additional resources are needed to sustain the momentum. Achievement test results are generally low and uneven across regions particularly at the secondary level. Results of the 2008 Functional Literacy, Education and Mass Media Survey (FLEMMS) further validate the concern about the quality of Philippine education. About 20 percent among Filipinos who completed elementary education are not functionally literate. This means that one out of five elementary graduates is unable to comprehend a simple paragraph. More alarming is that about 10 percent of those who have reached high school education are not functionally literate. This means that while the average years of schooling of Filipinos increased, literacy has improved only marginally if at all. Even more alarming, the 2008 FLEMMS results show that only three out of every five Filipinos who have had some high school education are fully literate (able to comprehend a simple paragraph consisting of three sentences). Even among the youth (10-24 years old) who are still attending school, only 63.5 percent among those who have completed Grades 5 and 6 could be considered fully literate. Similarly, only 71.8 percent of high school students are fully literate. That means that the situation has not improved compared to five years ago when the previous FLEMMS was conducted. Quality education requires adequate number of qualified and motivated teachers and continuous professional development through training and scholarship provisions. The adequate number of teachers must be hired to cover the perennial shortages and achieve a better pupil-toteacher ratio. A fair and sound system of promotion and career development must also be implemented, with provision for comprehensive welfare assistance including adequate health coverage, scholarships and in-service trainings for teachers. To cover for the gap in teaching positions from kinder to high school, E-Net and SWP propose PhP 7.761 billion to cover a total of 20,000 new teaching positions (5,000 for kinder, 5,000 for elementary and 10,000 for high school). The lack of operational funds impacts heavily on the quality of education and learning. Additional funding for Maintenance and Other Operating Expenses (MOOE) is proposed to ensure a school environment that is conducive to learning. Specifically, the Alternative Budget Initiative Education Cluster proposes to peg the MOOE at PhP 1,000 per elementary student and PhP 1,500 per high school student.
On access 1. Improving access to education for the out-of-school and illiterates The 2008 FLEMMS results confirm earlier reports on the increasing number of Filipino children and youth who are out of the school system. The report revealed that one in every three Filipinos aged 6 to 24 is not attending school. The number of out-of-school children and youth actually increased between 2003 and 2008 from 11.4 million to 12.3 million. An estimated 1,057,444 children aged 6 to 11 are not attending school. Another 1,224,308 children aged 12 to 15 are out of school. Among 16 to 19 years old, some 2,076,197 have not completed basic education and are no longer in school. Action for Economic Reforms (AER) and E-Net basically made the same estimates earlier in mapping the out-of-school. UNESCO, in 2009, also came out with similar estimates. Further breakdown of survey data generated from the FLEMMS 2008 show these: Table 17. FLEMMS 2008 Survey Data Children/Youth (6-24 y/o) not attending school: Children/Youth (6-24 y/o) not attending school and who have not completed basic education: - Children (6-11 y/o) not attending school - Children (12-15 y/o) not attending school - Children/Youth (16-24 y/o) not attending School without complete basic education Adults (25-64 y/o) without complete basic education: Adults (25-64 y/o) who are not functionally literate:
12.3 M 6.4 M 1.057 M 1.224 M 4.15 M 16.4M 4.44 M
Results of the 2008 FLEMMS clearly indicate that access to basic education remains a serious and persistent problem in the Philippines. Millions of children and youth are out of school and hundreds of thousands more are dropping out of the school system every year. The magnitude of the problem has remained basically the same as it was five years earlier. Poverty, poor motivation, the weak holding capacity of the school system, early marriage and health issues are some of the major barriers to education affecting especially the disadvantaged groups. The millions of out-of-school children continue to be ignored and neglected given the small funding allocated to programs catering to the illiterates and the out-of-school. While about 20 percent of school-age children and youth are out of the school system, less than 1 percent of the DepEd budget is allocated to reach the out-of-school. In a matter of a few years, these indicators will translate to poverty statistics -- and the cycle of poverty and poor education goes on. To respond to this situation, a fast tracking initiative is urgently needed to reach out to the out-of-school and illiterates, particularly in poor areas and among marginalized population groups.
2. Improving access to education for the Indigenous People and Muslim Learners Equally important is the recognition of the Madrasah education for Muslim learners. The Madrasah Road Map which DepEd crafted as embodied in DepEd Order 51, 2004, identified three objectives: 1) to develop and institutionalize Madrasah education as a vital component of the national education system; 2) to develop through participative consultation involving education
Proposal for Education Budget for FY 2012
stakeholders a framework of national policies as basis for Madrasah education; and 3) to undertake appropriate advocacy initiatives in support of Madrasah education. E-Net and SWP believe that the current budget for Madrasah Education should be increased from PhP 100 million to PhP 300 million to achieve the commitment in recognizing and institutionalizing relevant Madrasah for the Muslim learners and community. On quality education in conflict and disaster-prone areas CLIMATE CHANGE SERIOUSLY AFFECTS THE EDUCATION SECTOR GIVEN THE existing vulnerabilities of the Philippines to harsh weather conditions and the low capacity of the public school system and the local government in disaster preparedness and mitigation. Among its effects are: Destruction of schools, learning centers, community-organized daycare centers and facilities. Meanwhile, there is absence of feedback mechanisms and information dissemination for disaster assessment reports. There is also non-continuity and delay of funds for repair and rehabilitation of schools. Pupils and teachers, as well as school officials, are unprepared in such incidence. Destruction of learning materials, modules, instructional materials. At the same time, there is lack of learning and instructional materials that will compensate those that have been destroyed. There is also absence of a comprehensive package of climate change and disaster risk reduction plans and budget for DepEd. Schools are used as evacuation centers. There is a need for dedicated evacuation centers, which will prevent the disruption of classes of children. The local government units (LGUs) need to build dedicated evacuation centers constructed in safe places. Disruption of classes, and learning and funds for rehabilitation are delayed. Republic Act 9512 is law for environmental education. Teachers and children alike are experiencing trauma in cases of extreme weather conditions and destruction of school facilities. Unfortunately, there is no immediate and programmatic intervention on psychological and trauma experiences resulting from disasters. Thus, capacities of the government, specifically LGUs and the public school system, local communities, parents and students must be prepared in disaster preparedness, including emergency response and rehabilitation. Hazard and risk mapping in school areas, as well as building disaster proof school buildings and facilities should be a priority project especially since the Philippines is continuously combating natural hazards because of climate change. Likewise, children, youth and adult learners in conflict areas should be prioritized. Effective emergency response guidelines need to be prepared. A fund of PhP 150 million is proposed to address education of children, youth and adults in conflict and disaster prone areas to comply with the international Minimum Standards in Education in Emergencies (MSEE). On gender in education budget WHILE THE COUNTRY HAS ACHIEVED GENDER PARITY IN EDUCATION, E-NET believes that working for gender-fair education is a continuing advocacy taking note of urgent issues that impact on girls and boys’ education. One sensitive yet pressing gender issue is the reality of early pregnancy among teenage girls. The Young Adult Fertility and Sexuality Study (YAFSS) in 2002 reported that “26 percent
of young women aged 15 to 24 have begun childbearing.”1 YAFSS pointed out the link between poverty, early pregnancy and education access when it reported that two thirds of the country’s poorest girls give birth before the age of 20. Also, over 20 percent of teen mothers drop out of school when they become pregnant2. Due to early marriage and poverty and the responsibilities in taking care of siblings and their families, there are still countless women in indigenous, Moro and urban poor communities who remain illiterate. In the workshops which E-Net conducted with these marginalized groups, most women were not totally able to go to school or were able to attend only three years of schooling but slid back to illiteracy due to the absence of a literate environment or reading materials.
Alternative Budget Proposals for Education FOR A QUICK LOOK, BELOW IS THE SUMMARY OF ABI EDUCATION CLUSTER’S alternative budget proposals for education for 2012. The succeeding section contains more detailed discussion of each proposal: A. Summary of Alternative Budget Proposal for Education 2012: Table 18. Summary of Alternative Budget Proposal for Education 2012 Budget Item New teaching positions To achieve the ideal PTR of 1:35/40 Training and Development Allocate at least PhP 3,000 per 500,000 teachers Comprehensive Medical/ Dental and Optical Health/TB medical Allocate at least PhP 1,000 per teacher MOOE for Regional Operations Allocate at least PhP 1,000 per elementary pupil (14.3M) and PhP 1,500 per high school pupil (5.8M) Alternative Learning System (ALS)
PhP 7,761,000,000 1,500,000,000 500,000,000 23,024,500,000
Allocation for IP Education
Education in Emergencies
Gender Exemplars in schools
2002 Young Adult Fertility and Sexuality Study, Sexuality and Reproductive Health of Filipino Youth. Corazon Raymundo Quoted from the Save the Children-US Policy Brief. Upchurch DM. Early Schooling and Childbearing Experiences: Implications for Post-Secondary School Attendance. Journal of Research on Adolescent Health 2
E-Net Proposal (In Pesos)
Proposal for Education Budget for FY 2012
Functional Literacy Program Development and Implementation in IP, Moro and urban poor communities (50-50 partnership with LGUs) – PhP 2,500/learner x 100,000 for 2012
Suggested Special Provision At least 50 percent of the additional allocation for ALS shall be earmarked specifically for contracting qualified and accredited NGOs, private sector agencies and LGUs with track records in implementing literacy and Accreditation and Equivalency (A and E) programs. Table 19. Functional Literacy by Economic Classification Budget for 500,000 learners at 2,500 per learner 1,250,000,000 Allocation for a National Literacy Campaign 50,000,000 Allocation for 1 mobile teacher per district 100,000,000 Allocation for curriculum and materials development, monitoring and evaluation 100,000,000 TOTAL 1,500,000,000 B. Detailed proposals To address quality of education ABI Education Cluster’s specific budget proposals are as follows: Table 20. Functional Literacy by Economic Classification (by Region) Budget Item
New teaching positions To achieve the ideal PTR of 1:35/40
Training and Development Allocate at least PhP 3,000 per 500,000 teachers
Comprehensive Medical/ Dental and Optical Health/TB medical Allocate at least PhP 1,000 per teacher MOOE for Regional Operations Allocate at least PhP 1,000 per elementary pupil (14.3M) and P1,500 per high school pupil (5.8M) To address access to education ABI Education Cluster’s proposal is: Budget Item Alternative Learning System (ALS)
E-Net Proposal PhP 1,500,000,000
For ALS, E-Net proposes an increase in the per learner allocation to PhP 2,500 and target 500,000 learners. The proposed budget also includes an allocation of one mobile teacher per district and the development of ALS curriculum and monitoring and evaluation. The current provision of PhP 100,000 for 125 learners for 10 months is clearly insufficient to deliver quality
learning. This is way low compared to actual needs and to per pupil allocation in the formal school. The budget is also way below international benchmarks which recommends at least US$ 100 per learner per year. An expansion of the contracting system should be implemented along with more effective accreditation and evaluation system to ensure delivery of quality education to learners. An allocation of PhP 50 million is also proposed for a national literacy campaign in the light of the findings that about nine million Filipinos aged 10 to 64 years are not functionally literate. Suggested special provision At least 50 percent of the additional allocation for ALS is proposed to be earmarked specifically for contracting qualified and accredited NGOs, private sector agencies and LGUs with track records in implementing literacy and A and E programs. Budget for 500,000 learners at 2,500 per learner Allocation for a National Literacy Campaign Allocation for 1 mobile teacher per district Allocation for curriculum and materials development, monitoring and evaluation TOTAL
1,250,000,000 50,000,000 100,000,000 100,000,000 1,500,000,000
Improving access to education for IP and Muslim learners E-Net calls on the government to allocate PhP 100 million for IP education to include provision for 40 learning centers for IPs, the development of IP curriculum and production of learning modules. The target is to reach at least 20,000 IPs who lack basic education and are not functionally literate. The specific budget proposals are as follows: Budget Item Allocation for IP Education Madrasah Education
E-Net Proposal 100,000,000 300,000,000
To address quality education in conflict and disaster-prone areas Specific budget proposals from E-Net and SWP are as follows: Budget Item Education in Emergencies
E-Net Proposal 150,000,000
To address gender in education budget E-Net and SWP urge DepEd to finance the important tasks of a full-time Gender Focal Point in the department; to revive the Gender Exemplars that were crafted in the department years ago; and to implement fully-costed and sustained functional literacy programs for illiterate women. The specific budget proposals are:
Budget Item Gender Exemplars in schools Functional Literacy Program Development and Implementation in IP, Moro and urban poor communities (50-50 partnership with LGUs) â&#x20AC;&#x201C; PhP 2,500/learner x 100,000 for 2012
E-Net Proposal 100,000,000
Proposal for Education Budget for FY 2012
Summary of Alternative Budget for Education 2012 Table 21. Summary of 2012 Alternative Budget Proposals for Education (FY 2012) GAA 2011
Variance (Proposal less NEP)
Education in Emergencies
Gender Exemplars in schools
Functional Literacy Program Development and Implementation in IP, Moro and urban poor communities (50-50 partnership with LGUs) â&#x20AC;&#x201C; P2,500/learner x 100,000 for 2012
New teaching positions To achieve the ideal PTR of 1:35/40 Training & Development Allocate at least P3000 per for 500,000 teachers Comprehensive Medical/ Dental & Optical Health/TB medical Allocate at least P1000 per teacher MOOE for Regional Operations Allocate at least P1000 per elementary pupil (14.3M) and P1500 per high school pupil (5.8M) Alternative Learning System (ALS) Allocation for IP Education Madrasah Education
Including non-teaching positions The increase from GAA 2011 is accounted only for the National Capital Region.
Suggested Special Provision: At least 50 percent of the additional allocation for ALS shall be earmarked specifically for contracting to qualified and accredited NGOs, private sector agencies and to LGUs with track records in implementing literacy and A and E programs.
Budget for 500,000 learners at 2,500 per learner Allocation for a National Literacy Campaign Allocation for 1 mobile teacher per district Allocation for curriculum and materials development, monitoring and evaluation
1,250,000,000 50,000,000 100,000,000
Review of the 2012 President’s budget for agriculture THE ALTERNATIVE BUDGET INITIATIVE AGRICULTURAL CLUSTER HAS NOTED more than 60 percent increase in the 2012 budget for the Department of Agriculture (DA) including its attached agencies and agriculture-related government-owned and -controlled corporations (GOCCs) such as the National Food Authority (NFA) and the National Irrigation Administration (NIA). The DA’s budget proposal for 2012 is infrastructure-heavy. The same could be found in the agency's food self-sufficiency plan until 2016. In fact, more than 50 percent of the original DA proposal for 2012 goes to infrastructure while close to 40 percent, for irrigation. Another feature is the lump sum budget for public-private sector participation --majority of which going to infrastructure as well. While it supports the budget increase, the ABI Agriculture Working Group raises caution in the over-emphasis to irrigation projects -- NIA in particular--- without first the benefit of an inventory of its assets and assessment of its accomplishments, particularly in the last three years when its budget had risen to significant levels in an effort to mitigate the rice crisis in 2008. The ABI Agriculture Working Group believes that irrigation could be “the” main driver in propelling rice production given its highest potential productivity factor by percentage, according to previous studies of the Philippine Rice Institute (PhilRice). But the lack of governance remains a major stumbling block in actually realizing this goal. Some of the factual bases of these concerns: In its 2009 report, the Commission on Audit was unable to validate around 93 percent of NIA’s Property, Plant and Equipment (including irrigation canals and laterals) under its General Fund amounting to PhP 64.237 billion due to accounting deficiencies, inadequate subsidiary records and non-reconciliation of inventory reports with accounting records. COA noted that NIA has not responded to its major recommendations for the past 12 years. COA saw the same problems in NIA’s Corporate Fund (501), pointing to the latter’s inability to substantiate its Receivables, Property Plant and Equipment (PPE) and Cash Accounts worth PhP 29.921 billion, PhP 29.395 billion, and PhP 1.619 billion respectively as of December 31, 2009, and also in its Special Fund, thus casting doubts on the accuracy and validity of the PhP 29.9 billion receivables with amortized cost. COA said NIA’s financial statements do not present fairly in all material respects as shown in the audit of its three important funds mentioned above.
Prepared by the RICE WATCH And ACTION NETWORK (R1)
Considering these, the ABI Agriculture Working Group for the past two years has been calling for the audit of irrigation program before NIA receives higher budget. The government may be giving good money for bad purposes -- as shown in the COA reports how funds had been used. The ABI Agriculture Working Group also noted that other subsectors are poorly funded while some actually just need initial budget for use as revolving fund since credit and insurance, for example, are funds that can be recouped. Among the under-funded subsectors are coconut, fisheries, crop insurance and NFA’s palay procurement. Credit service under the mandate of the Agriculture and Fisheries Modernization Act (AFMA) has never been funded since the law was passed in 1997. Compliance with the Agri-Agra Law, which basically aims to improve the agricultural and agrarian reform sectors’ access to financial services, is not that impressive. Banks are reportedly using alternative compliance by just paying penalties rather than actually providing rural credit. The Agricultural Competitiveness Enhancement Fund (ACEF) —which provides grants and loans --is currently under moratorium, thus leading to the question “Where is the affordable credit?" Below is the summarized original proposal of the DA for 2012 and the President’s Budget for Agriculture (in thousand pesos): Table 22. Summarized Original 2012 DA Proposal vs. the 2012 DA Proposed Budget (in thousand pesos) Budget Items
2012 NEP (President’s Budget) 6,181,166
Original DA Proposal 10.03 billion
Corn Program High Value Crops Livestock Organic Trading Centers Fisheries Irrigation Locally Funded Foreign Funded PPP Budget Farm to market roads ACEF/Credit NFA (under the GOCC budget) PCA (under the GOCC budget) PhilRice (under the GOCC budget) PCIC (under the GOCC budget)
482,642 926,867 1,052,505 900,000 675,082 2,366,619
950,739 1,336,658 1,442,158 927,200 911,755 2,485,626
1,029,219 2,071,536 2,422,511 927,200 911,755 3,051,502
7,753,623 5,037,027 2,500,000 2,500,000 No allocation 2,500,000
19,978,649 4,786,403 2,500,000 5,000,000 No allocation 4,000,000
24,333,856 5,666,144 2,500,000 9,500,000 6,910,000 No data
ABI - AGRICULTURE BUDGET 2012
Alternative budget proposal for agriculture 2012 THE ABI AGRICULTURE WORKING GROUP THIS BUDGET SEASON WAS ABLE TO engage the DA for the budget preparation phase. This season also marked the first year of the Open Budget Partnership-Budget Partnership Agreement (OBP-BPA) initiative of the Department of Budget and Management. But still, the track proved to be difficult despite these positive developments. First, the DA took a long time to present the data requested. The Alyansa Agrikultura, one of the members of the working group, sensing early on the DA’s reluctance to participatory budget process, quickly engaged the support of Senator Francis Pangilinan as head of the Congressional Oversight Committee on Agriculture and Fisheries Modernization (COCAFM). COCAFM initiated to hold a Tripartite Agriculture and Fisheries 2025 Visioning consultation among agriculture stakeholders in partnership with DA and the private sector in February 2011. The outputs became the main basis of the ABI Agriculture Working Group’s proposals, which were further refined within the group’s own constituencies through several internal consultations. Here are main proposals: Cut irrigation budget to PhP 20 billion until an audit of the first three years (2009-2011) of irrigation budget/projects is made available. The working group also proposes that cuts be made mostly in the locally-funded projects as foreign-assisted projects were better implemented due to stricter project monitoring, based on assessment studies. Ask NIA to do these key audit processes: accounting its assets, improving organizational and financial systems, going after erring staff, reviewing and modernizing designs to respond to the challenge of climate change while still implementing a fairly huge sum of the irrigation budget. These would enable other sub-sectors to benefit from the partial realignment of irrigation funds in the immediate term Raise the coconut budget to PhP 2 billion pesos. The amount would be used for fertilization and intercropping opportunities for more than 3 million coconut farmers, which remain to be among the poorest in the sector. Increase the fisheries subsector budget by PhP 1.4 billion, specifically for extension services for the municipal fisher folk, who remain the poorest in the agriculture and fisheries sector by commodity. A more balanced approach to fisheries’ programming is necessary and urgent, giving ample focus on regulatory function as a strategy towards sustainability of biological, wild resources (fisheries) which serves as main production base not just of municipal fishers but even of mariculture, aquaculture and commercial sectors. With depleted marine coastal resource, the production outputs of others will also be affected. A registration system for fishers as basis for coastal management efforts and for easy administration of government subsidy programs for the sector is also important. Regulatory activities need to be strengthened. Public-private partnership (PPP) budget for 2012 should be realigned to finance other underfinanced commodities such as coconut, fisheries and specific commodities in the High Value Commodities Program given that the 2011 PPP allocation has not been utilized at all. The PPP guidelines should be reviewed considering that agriculture has a very different nature than that of traditional PPP for infrastructure. On the other hand, the 2011 PPP budget meanwhile should support innovative production and value-adding
initiatives as showcase of best practices in agriculture contrary to the traditional concept of PPP—which is mainly to support infrastructure. PPP guidelines for agriculture should be revised accordingly to allow funding of these best practices. Issue a special provision for the PPP budget for agriculture in order to support not just infrastructure but also small-scale innovations, best practices in agriculture and fisheries production, value addition, etc. Sustain the increased budget for NFA local procurement. The ABI Agriculture Working Group proposes that a total of PhP 14 billion be given to NFA to achieve 5 percent local procurement and additional PhP 1 billion to improve its facilities. The remaining budget to achieve a 10 percent procurement level will come from the liquidation of NFA’s current rice stocks. The ABI Agriculture Cluster also proposes to add a special provision wherever appropriate to source government staff’s rice allowance benefit from NFA as means to facilitate immediate disposition of aging NFA rice stocks Increase the penetration coverage of the Philippine Crop Insurance Corporation (PCIC) to at least 10 percent, thus requiring a total budget of PhP 940 million to help reduce risks. Allocate budget for subsidized/negotiated credit: The AFMA budget of at least PhP 2 billion should be given for such purpose. Raise budget for feedstock laboratory to PhP 100 million and diagnostic services to PhP 100 million. Strengthen coastal fisheries management not just for climate change but also for sustainable fisheries. Contrary to the belief of the DA, mariculture will not increase climate change resilience in fisheries. Create a mechanism for increased private, civil society monitoring /audit/assessment of major agriculture programs. Create transparency groups with civil society participation within NFA, NIA and other relevant agencies with big allocation to participate in the audit of projects. Increase seed varieties for participatory seed selection: Diversification of genetic materials should include farmers’ varieties. Guidelines should be released on the marketing of good seeds. Diversify organic budget to cover not just rice but also other commodities.
ABI - AGRICULTURE BUDGET 2012
Summary of ABI’s Major Proposals for 2012 Table 23. Summary of ABI’s Major Proposals for 2012 – DA (in thousand pesos) Item
ABI AGRI Proposal
National Irrigation Administration subsidy (for management/ administrative costs)*
Farm to Market Roads*
Previous years revealed substantial budget for irrigation but little improvement on productivity. In addition, COA audit findings point to NIA’s failure to ascertain and validate 93% of its assets (including irrigation canals and laterals) amounting to Php 65 Billion and lacks reports/validation of its ongoing irrigation projects amounting to more than 40 Billion at the time of its 2009 audit held in 2010 Based on 5% admin/management fee (COA), 20 B worth of irrigation equals to 1 B management fee. But even then, experience reveals that not all irrigation projects are implemented in the same year, which explains ABI’s proposal to lower the management fee for 2012. COA audit revealed that NIA should only be getting management fee for implemented projects and not the original targeted budget In the absence of a Comprehensive National Land Use and Water Policy that will protect whatever infrastructure projects from conversion., ABI AGRI does not support an increase of the Farm to Market Road budget 2011 not yet utilized, realign 2012 for other unfunded intervention; Flexible PPP guidelines for agriculture should be put in place, primarily to support best practices in agriculture and fisheries Sufficient budget for fertilization and diversifying income sources for coconut farmers is proposed to help address extreme poverty in this sub sector For additional fisheries extension workers to carry out livelihood extension work for municipal fisheries, coastal management, stock assessment and fisherfolk registration program. Municipal fishers are the poorest in the agri fish sector.
Philippine Coconut Authority
Bureau of Fisheries and Aquatic Resources
Philippine Crop Insurance Corporation National Food Authority
To cover at least 10% of rice and corn farmers, only 2.5 % are currently covered Additional budget for palay procurement to achieve to target 10% of local palay. 5% from GAA and the other 5% from liquidation of NFA rice stocks Improvement of NFAâ&#x20AC;&#x2122;s warehouses in preparation of increased local procurement For subsidized credit
Credit New Line Item 2,000,000,000 2,000,000,000 TOTAL 23,740,000,000 16,387,846,000 *Proposed budget reductions are not included in the computation of total proposed amount; these are lodged on the sources of financing proposals.
About the ABI Agriculture Working Group THE ABI AGRICULTURE WORKING GROUP PROVIDES ANALYSIS AND recommendations linked to agriculture and agrarian reform programs funded by the National Expenditure Program. Its members include the Rice Watch and Action Network, Tambuyog Development Center, Alyansa Agrikultura, and the Partido Kalikasan.
Situation/Assessment Glimpse of Global Climate Negotiations: Of false hopes and evading responsibilities THE COPENHAGEN ACCORD OF 2009 PROVIDES FOR THE SETTING-UP OF A GLOBAL fast-start climate financing mechanism. The target of developed countries is to raise US$ 30 billion from 2010 to 2012 and up to US$100 billion by 2020 in new and additional money for climate change actions. Recent reports state that pledges have already amounted to US$ 29.9 billion in 2011. A closer look however reveals that only around US$ 3 billion in new and additional money is actually being pledged if Official Development Assistance (ODA), export capital or private finance and Clean Development Mechanism (CDM) and Reducing Emissions from Deforestation and Forest Degradation (REDD) are taken out of the equation. Figures are still being debated to date and definitions of new and additional money as well as delineation of public and private sources are still being reconciled, although in a very lopsided manner obviously in favor of developed countries. The next vital question is: who would manage these funds? Developed countries and multilateral development banks (MDBs) naturally prefer existing institutions and mechanisms for their “track record” but developing countries including the Philippines on the other hand argue that new mechanisms are needed simply because the current set-up only favors the developed countries. This led to the debate on the creation of a Green Climate Fund (GCF), which supposedly aims for new and fairer financing mechanisms and access. The GCF is being criticized at the onset because: 1. The “hands” of MDBs like the World Bank, which controls existing funds such as the Climate Investment Funds, are becoming too explicit; 2. The Adaptation Fund of the Kyoto Protocol, which is the only existing fund for direct access of developing countries, is being eyed to be included in the GCF; and 3. The GCF still focuses on financing mitigation when developing countries need more financing for adaptation. As false hopes on international climate financing are becoming apparent, the other equally important issue of reducing greenhouse gas (GHG) emissions also continues to be evaded. Developed countries such as the US have been consistent in blocking any substantial talks on both financing and emissions reduction. The EU on the other hand, feels no pressure to initiate fairness.
The current state of global climate negotiations thus underscore that we are on our own in financing actions to enhance resiliency and build our adaptive capacity to climate change. National Actions on Climate Change: Discordant plans and budgets THE 2011-2016 PHILIPPINE DEVELOPMENT PLAN (PDP) RECOGNIZES CLIMATE change and disaster risk reduction (DRR) as national development imperatives. Climate change and DRR are included as crosscutting themes as stated in the introduction as well as key chapters on infrastructure (energy, transport, water, information and communications technology), agriculture and environment and natural resources. But the assessment of the Environment Cluster of the Alternative Budget Initiative (ABIEnvi Cluster) and the Caucus to Green the MTPDP (Medium Term Philippine Development Plan) points out that the details in the specific chapters of the PDP tend to go on the business-asusual mode instead of adopting integrated, extraordinary and urgent actions well as strategic initiatives on mitigation. Much improvement could be put in place particularly in these areas: 1. Food self-sufficiency based on sustainable, ecological and organic agriculture; 2. Disaster risk reduction and management; 3. Improved ecosystem, soil and water management; and, 4. Sustainable, off-grid, decentralized, community-based, efficient and new/renewable energy systems. Other national, sectoral or thematic plans such as the National Climate Change Adaptation Plan (NCCAP), the National Disaster Risk Reduction and Management Plan (NDRRMP) and the National Renewable Energy Plan (NREP) are on-going and their approval is still pending. How these would be integrated and would form part of the PDP priorities is still unclear. Climate change and DRR are clearly not among the priorities in the 2011 GAA. While there are substantial increases in climate change and DRR-related items in the 2012 National Expenditure Program (NEP), the plan which would govern and integrate all of these across several departments is still unclear. The Cabinet Cluster on Environment and Climate Change is supposed to provide the coordinating and implementing mechanism for an integrated roll-out of climate change and DRR programs. It could be a welcome development yet this cluster has not been able to regularly convene and harmonize budget proposals for climate change and DRR in preparation for the 2012 NEP. The recent formation of the Climate Finance Group -- composed of the Climate Change Commission (CCC), the National Economic Development Authority (NEDA), Department of Budget and Management (DBM) and Department of Finance (DOF) -- aims to mobilize climaterelated financing from international and local sources and ideally from a climate justice standpoint. On top of this are the two approved yet contentious climate-related loans which the Philippine government entered into: (1) the US$ 500 million DRR loan from WB requiring a declaration of a national state of calamity as the trigger for release, which clearly runs counter to the spirit of the DRRM Act; and, 2) the US$ 280 million loan from the Asian Development Bank (ADB) for the electric tricycle program of the Department of Environment and Natural Resources (DENR) when in fact there are available funds from the Air Quality Management Fund (AQMF) precisely for these types of program.
ABI – Pursuing A Climate Sensitive Budget for FY 2012
Climate change and DRR-related plans are clearly present at the national level, but the main challenge now is how to harmonize these towards a common objective of enhancing resilience and building the adaptive capacity of the country. Localizing Climate Change and DRR Actions: Snail’s pace in an increasingly threatened and at-risk communities THE PLANS, PROGRAMS AND FUNDS DEVELOPED AT THE NATIONAL LEVEL WILL only have a substantial effect and impact once these are made available and implemented at the local level. While the tedious processes are necessary in developing these plans, realities that local government units (LGUs) and communities continually face amidst increasing impacts and risks of extreme weather conditions and natural disasters must be taken into account. Resource-poor rural sectors and other vulnerable sectors face the highest risks from climate change and the increasing spate of disasters. The Department of Agriculture (DA) reports that as of the first week of August 2011, damages to agriculture (crops, fisheries and livestock) have already reached over PhP 1 billion, excluding loss of lives and properties from the recent typhoons that hit the country. This situation therefore highlights the urgent need for the national government to provide programmatic support and assistance while enhancing LGUs’ capacity for climate change and DRR integrative local development planning. LGUs must also be empowered to organize resource-based cluster alliances to towards effective, replicable and sustainable climate change and DRR initiatives at the local levels. Investing in Resiliency and Adaptive Capacity: A Must for the 2012 GAA SINCE THERE IS NOT MUCH TO EXPECT AT THE GLOBAL CLIMATE NEGOTIATIONS and the current national processes reveal that plans and available funds do not exactly match, public financing must now be geared towards enhancing resiliency and increasing the adaptive capacity of the Philippines. Financing priorities for a “climate-sensitive” 2012 General Appropriations Act (GAA) must be focused on the following initiatives: 1. Disaster risk reduction; 2. Biodiversity conservation, sustainable agriculture, fisheries and forestry; 3. Clean and green technologies; 4. Renewable/sustainable energy systems; and, 5. Ecological waste management These initiatives complement the Key Result Areas of the NCCAP that include: 1. Food Security and Sufficiency; 2. Water Sufficiency; 3. Ecosystem and Environmental Stability; 4. Human Security; 5. Green Industries and Services; 6. Sustainable Energy; and, 7. Climate Change Knowledge and Capacity Development. Government missed the opportunity to invest in the 2011 GAA simply because officials claimed they had limited flexibility in crafting their first budget. The 2012 GAA could be an
opportunity to send the right signals and maximize the use of increasing but still limited resources towards mainstreaming a climate-sensitive national budget.
Achievements in Agency-Level Prepared Budgets THE ABI-ENVI CLUSTER SINCE 2010 HAS BROADENED THE ALTERNATIVE BUDGET campaign from DENR alone to other departments having direct programs and budgets related to climate change. A total of almost PhP 2 billion in increased allocations for climate change actions have been adopted since then. While environment and climate change were not among the priority themes of the Open Budget Partnership initiative of DBM, the ABI-Envi Cluster nonetheless pushed for climatesensitive budget proposals to key departments. Departments and their secretaries were directly engaged and proposals were submitted to the CCC which reviewed and proposed climate-related items in the budgets of key departments. The cluster’s effort in a way contributed to the increase in allocations of substantial items totaling over PhP 4 billion as detailed in Table 1. The openness of key department officials to dialogues and their “climate sensitivity” have likewise reflected into their respective department budgets. The cluster however recognizes that executing budgets is different and much more difficult than engaging for the preparation and authorization stages. Table 24. Agency-Level Achievements Budget Items in the Amount Remarks 2012 NEP Other Executive Offices 61,493,000 The proposals for the CCC amounted to PhP 160 (OEO): Climate Change M, which includes the items on: Commission 1. Operational Requirements for the National Climate Change Commission (for Local Climate Change Adaptation Plan (LCCAP) Participatory processes); and, 2. Nationwide IEC Campaign on CCA and DRR and integration into the CLUPS and CDPs for LGUs. Though the 2012 budget falls short compared the ABI-Envi proposal, PhP 61 M is an improvement from the PhP 38.8 M in the 2011 GAA. DND: Office of Civil Defense
The proposals for the OCD amounted to PhP 1.1 B which includes the items on: 1. Disaster Risk Management (for revolving fund of the OCD for DRR as mandated by the DRRM Act); and, 2. Marikina Watershed Integrated DRRM Plan
ABI â&#x20AC;&#x201C; Pursuing A Climate Sensitive Budget for FY 2012
SPF: National Disaster Risk Reduction and Management Fund (Calamity Fund)
DA: Promotion and Development of Organic Agriculture
DENR: Forest 2,210,703,000 Development - National Greening Program
The ABI-ENVI Cluster has been calling for additional funding for the NDRRMF. The PhP 7.5 B 2012 NEP budget is a welcome increase from the PhP 5 B budget in the 2011 GAA. However, it is significant to note that the DBM is still referring to it with the defunct term (calamity fund). This has implications in the management and disposition of the fund where 70% is allotted for disaster mitigation (DRR) and only 30% is reserved as standby fund in times of calamities, as provided by the DRRM Act of 2010. ABI-ENVI proposed PhP 1.9 B for the 'Implementation of the National Organic Agriculture Program (NOAP) pursuant to the IRR of the Organic Agriculture Act of 2010 (RA 10068). The 2012 NEP budget of PhP 927.2 M is an improvement from the PhP 900 M in the 2011 GAA The ABI-Envi proposed an amount of PhP2 B for a new budget item for the â&#x20AC;&#x2DC;National Greening Program'. While the proposal was adopted, the DENR and DBM lodged it in an already existing item for 'Forest Development' instead of a new line item, even as this item is already criticized for favoring forest production areas instead of delineating and managing forest protection areas.
DENR: Communitybased forestry program
The ABI-Envi submitted a PhP 300 M proposal for community-based forest management (CBFM), being the current nationally mandated program for sustainable forest management. In the 2012 NEP, only PhP 106.3 M was adopted but still an improvement from the PhP 100 M CBFM budget in the 2011 GAA.
DENR: Soil conservation and watershed management
The ABI-Envi submitted a PhP 250 M proposal for soil conservation and watershed management with focus on the Marikina Watershed in light of Typhoon Ondoy's onslaught in 2009. The 2012 NEP budget of PhP 377.6 M is an improvement from the 2011 GAA budget of PhP 374.7 M. More resources are however needed to arrest the degradation of critical watersheds.
DENR: Protected Areas and Wildlife Management
539,394,000 Since 2008, ABI-Envi cluster has pushed for the increased budget for protected areas. The 2012 NEP of PhP 539.3 M is a significant increase from the 2011 budget of 387.9 M. Still, many protected areas remain unfunded and again brings the question on the status and progress of central and sub funds of the Integrated Protected Areas Fund.
DENR: Coastal and Marine Resources Management (Under Protected Areas and Wildlife Management)
ABI-Envi proposed a total of PhP 150 M for the item 'Reducing the underlying vulnerabilities on marine resources through strengthening the Community-Based Coastal Resource Management (CBCRM) movement, pursuant to the Fisheries Code of the Philippines'. Though only PhP 76.6 M was adopted, having a new budget line item for Coastal Resources Management is important.
DPWH: Major Flood Control Projects
Proposals were coursed through several dialogues of RESILIENCE and Alliance of Seven (A7) with DPWH. These include items for Flood Control Projects taking into consideration the damage brought by Typhoon Ondoy to Metro Manila and the nearby province of Rizal. Beyond increase in allocations, the dialogues reached an agreement that these infrastructure projects as downstream actions must complement upstream watershed and forest protection and rehabilitation programs.
ABI – Pursuing A Climate Sensitive Budget for FY 2012
Potential Climate Change-Related Budget Items in the 2012 NEP THE ABI-ENVI CLUSTER BEGAN LAST YEAR THE PROCESS OF “TAGGING” CLIMATE change-related items included in the NEP to help determine a baseline on public finance for climate change as well as identify possible sources for specific climate-related budget proposals. The Climate Change Commission adopted this “tagging” to determine levels of government-led climate financing in the processes to develop the NCCAP. Table 25. Tagging of Potential Climate Change Related Budgets Budget Item TOTAL (in Pesos) Disaster Risk Reduction Climate Change Commission A. PROGRAMS. I. Operations. a. Policy Formulation, Research and Development, Coordination and Monitoring of Climate Change Programs and activities of the different National/ Local Government Agencies and other offices 61,493,000 Department of Agriculture B. PROJECT(s).II. Foreign-Assisted Project(s) B. II. h. UNITED STATES PUBLIC LAW TITLE I PROGRAM. 1. Establishment of Agro-Meteorological Stations in Highly Vulnerable Agricultural Areas: A Tool for Climate Change Adaptation and in the Development of Local Early Warning System (Agromet cum Climate Change) 31,480,000 DOST-PAGASA J. A. II. Support to Operations; a. Climate Data Management, AGROMETEOROLOGICAL and Weather Modification Research and Development. 1. Operation and maintenance of meteorological data banks, including the provision of processed agroclimatological information b. Training Activities in Atmospheric-Geophysical and Allied Sciences c. Provision of Support Services. 1. Conduct of and participation in scientific and technical conferences and meetings including membership in international and national scientific organizations c. 2. Implementation of PAGASA participation in regional scientific experiments/ studies and other inter-agency projects c. 3. Participation in the inter-agency natural disaster prevention and preparedness activities d. Installation, Repair and Maintenance of Telemetering Multiplex System for Flood Forecasting and Warning Covering Pampanga, Agno, Bicol and Cagayan River Basin
1,482,000 2,531,000 581,000
J. A. III. Operations. a. Weather and Flood Forecasting and Geophysical and Astronomical Services; 1. Typhoon warning and weather forecasting services, including the operation of meteorological communication and regional forecast centers, the provision of numerical weather prediction techniques and analyses 2. Flood forecasting and hydro-meteorological services
3. Operation and maintenance of flood forecasting and warning system for dam operation project I covering Pantabangan and Angat Dam
4. Operation and maintenance of the flood forecasting and warning system for dam operation Project II covering Binga, Ambuklao and Magat Dam 5. Operation and maintenance of astronomical observatories/planetarium including the provision of standard time services
J. A. III. b. Observation and Acquisition of Data for AtmosphericGeophysical and Allied Sciences; 1. Observation, measurement, recording and reporting of atmospheric, geophysical and astronomical data, including the operation and maintenance of surface and upper air observation network
2. Operation of upgraded geostationary meteorological satellite receiving and processing systems acquired under the 1988 Grant-in-Aid Program of Japan and 1990 International Development Assistance Program of Australia 3. Operation and maintenance of Weather Surveillance Radar Network
J. A. III. c. Research on Atmospheric, Geophysical and Allied Sciences; 1. Atmospheric- geophysical, astronomical and space sciences research 2. Weather modification activities and NATURAL DISASTER REDUCTION including the payment of P25,000 per annum for the flying pay of personnel (on flying status) undertaking aerial flights, equivalent to 25% of their base pay: PROVIDED, That flying pay shall be given only to personnel who have logged more than ten (10) flying hours a month 3. Conduct of researches for natural disaster, pursuant to Section 10 of PD No. 78, as amended 4. Agro-climactic research and farm weather services and climate variability and climate change studies B. PROJECT(s). I. Locally-Funded Project(s); a. Construction of Access Road (Guiuan) b. Renovation of Buildings (Guiuan) c. Establishment of Climate Databank Center
4,238,000 3,365,000 2,802,000 2,982,000 1,144,000 7,500,000
ABI â&#x20AC;&#x201C; Pursuing A Climate Sensitive Budget for FY 2012
B. I. II. Foreign-Assisted Project(s); a. Improvement of Flood Forecasting and Warning System for Magat Dam and Downstream Communities (NoRAD Grant) b. Improvement of the Meteorological Radar System - JICA Radar c. Improvement of Capabilities to Cope with Natural Disasters Caused by Climate Change (JICS) d. Establishment of Early Warning & Response System for Disaster Mitigation in Metro Manila (Pasig - Marikina River Basin) KOICA TOTAL Department of National Defense A. III. Operations. c. Supervision, Coordination and Direction of Disaster (Response) Management A. III. g. Quick Response Fund D. OFFICE OF CIVIL DEFENSE A. II. Operations. a. Disaster Risk Reduction and Management. 1. Planning, Direction and Coordination for Civil Defense A. II. Operations. b. Quick Response Fund F.1. PHILIPPINE ARMY (LAND FORCES) A. III. Operations. c. Disaster Response. 1. Operation and maintenance of units engaged in disaster and relief operations F.2. PHILIPPINE AIR FORCE (AIR FORCE) A. III. Operations. c. Disaster Response. 1. Disaster response and relief services F.3. PHILIPPINE NAVY (NAVAL FORCES) A. III. Operations. c. Disaster Response TOTAL Department of Interior and Local Government A. III. Operations. c. Local Governance Performance Management Program - Performance-Based Challenge Fund for Local Government Units B. PROJECT(s) I. Locally-Funded Project(s) B. I. a. Emergency Response Network (Patrol 117) B. I. b. Enhancing LGU Capacity on Climate Change Adaptation and Disaster Risk Management Framework B. I. d. Manila Bay Clean-Up Project TOTAL Department of Social Welfare and Development a. Assistance to Victims of Disasters and Natural Calamities Including Handling and Hauling of Commodity Donations
17,832,000 44,276,000 41,251,000 33,120,000 983,176,000
2,650,000 120,000,000 1,221,559,000 645,924,000 530,000,000
241,713,000 586,000 2,770,243,000
753,700,000 19,411,000 40,000,000 10,000,000 823,111,000
d. Quick Response Fund. 1. Central Office (National Project Monitoring Office) TOTAL Department of Public Works and Highways II. b. Regional Support (Planning and Design, Construction, Maintenance and Material Quality Control and Hydrology Divisions); II. 3. Flood Control and Drainage Systems, Structures and Related Facilities; III. a. Construction, Maintenance, Repair and Rehabilitation of Infrastructure Facilities. III. b. Maintenance, Repair and Rehabilitation of Infrastructure Facilities. III. b. 2. Flood Control and Drainage Systems, Structures and Related Facilities; III. c. Operational Support in the Maintenance and Repair of the Infrastructure Facilities and Other Related Activities of District/City Engineering Offices; III. d. Operational Support in the Maintenance and Repair of Infrastructure and Other Equipment Including Replacement of Parts, Regional Depot/Base Shops and Area Shops; B. PROJECT(s). I. Locally-Funded Project(s). B. I. b. Major Flood Control Projects B. I. c. Feasibility Study / Preliminary and Detailed Engineering; B. I. e. Water Supply / Retarding Basins / Rain Collectors and Sewerage B. I. f. Public-Private Partnership Strategic Support Fund B. I. g. Disaster Related Rehabilitation Projects B. I. h. Various Infrastructure Including Local Roads B. PROJECT(s). II. Foreign-Assisted Project(s). b. Flood Control Projects; 1. San Roque Multi-Purpose Project, Flood Control Component, (Reimbursement of Funds Advanced by NPC) (JEXIM) 2. Pasig-Marikina River Channel Improvement Project, Phase II, JBIC, 26th YCP, (PH-P239) 3. Mt. Pinatubo Hazard Urgent Mitigation Project (Flood Control Works in Porac -Gumain River and Pasac Delta Area) (JBIC, 27th YCP, PHP241), Pampanga TOTAL Metro Manila Development Authority B. PROJECT(s). I. Locally-Funded Project(s) B. I. a. Urgent Disaster Flood Control Works under the Pasig-San JuanMarikina River System and Other Areas in Metro Manila
241,298,000 25,700,000 4,037,471,000 1,805,960,000 1,508,960,000
705,560,000 8,527,663,000 1,206,600,000 200,000,000 3,000,000,000 550,000,000 1,101,600,000
ABI â&#x20AC;&#x201C; Pursuing A Climate Sensitive Budget for FY 2012
B. I. b. Flood Control and Drainage Projects - National Capital Region. 2. Quezon City; B. I. c. Dredging/Deepening of Marikina River (Rosario Weir to Marcos Highway Bridge) B. I. e. Dredging/Deepening/Widening and Bank Protection along Talayan Creek and San Juan River (E.Rodriguez Avenue to Del Monte Avenue, Quezon City) TOTAL Sustainable Agriculture, Fisheries and Forestry Department of Agriculture A. III. g. Promotion and Development of Organic Agriculture. B. PROJECT(s). I. Locally-Funded Project(s). a. NATIONAL IRRIGATION ADMINISTRATION B. I. q. Public-Private Partnership Strategic Support Fund TOTAL Department of Environment and Natural Resources II. Support to Operations a. Formulation and Monitoring of ENR Sector Policies, Plans, Programs and Projects b. Data Management Including Systems Development and Maintenance c. Production and Dissemination of Technical and Popular Materials in the Conservation and Development of Natural Resources Including Environmental Education d. Legal Services, Including Operations Against Unlawful Titling of Public Land e. Conduct of Special Studies, Design and Development in Support of Forestry, Mining and Environmental Management Operations f. Provision for Operations Against Illegal Forest Resources Extraction/Utilization Activities, Including Payment of Rewards to Informers in the Discovery and Seizure of Illegally Collected/ Transported Forest Products and the Apprehension of Violators of Section 68 (b) of P.D. No. 705, as Amended by E. O. No. 277, the Hauling Fees of Confiscated Logs, Space Rentals, Guards, Representation Expenses and other Expenses in the Disposal/Selling of Confiscated Illegally Cut Logs, Subject to Special Budget and Approval by the President g. Laboratory Services III. Operations a. Forest Management 1. Management of Forest Lands and Forest Resources 2. Forest Development (NGP) 3. Forest protection 4. Community-based forestry program
105,855,000 98,774,000 208,875,000
50,000,000 900,000 4,916,282,000 913,146,000 2,210,703,000 937,596,000 106,307,000
5. Soil conservation and watershed management 6. Forest boundary delineation and land use allocation b. Land Management 1. Land management services 2. Land Surveys 3. Survey of foreshores reservation, patrimonial properties and other lands covered by the Comprehensive Agrarian Reform Program in coordination with the Department of Agrarian Reform 4. Land Records Management 5. Field network survey c. Protected Areas and Wildlife Management 1. Protected Area Management 2. Operation and maintenance of the Ninoy Aquino Park and Wildlife Nature Center in Quezon City 3. Development and rehabilitation of the Hinulugang Taktak National Park in Antipolo, Rizal 4. Development and rehabilitation of the Mt. Apo National Park 5. Philippine Eagle Conservation Project 6. Pawikan Conservation Project 7. Tamaraw Conservation Project 8. Operation & maintenance of Crocodile Farm Institute in Irawan, Palawan 15. Biodiversity Conservation Program 16. Tarsier Conservation Project 11. Coastal and Marine Resources Management d. Ecosystems Research and Development 1. Ecosystems Research and Development Service 2. Clonal Nursery and Production of Quality Planting Materials (QPM) of Premium and Indigenous Forest Species for National Greening Program B. PROJECT(s) I. Locally Funded Project(s) a. Development, updating and implementation of the Operational Plan for the Manila Bay Coastal Management Strategy pursuant to SC Decision with GR No. 171947-48 II. Foreign-Assisted Project(s) b. Integrated Coastal Resource Management Project (ADB Proposed) c. Community-Based Forest and Mangrove Management Project Attached Agencies in Environmental Management Bureau Mines and Geo-Sciences Bureau National Mapping and Resource Information Authority National Water Resources Board Palawan Council for Sustainable Development Staff TOTAL
377,889,000 370,641,000 5,009,789,000 1,035,931,000 3,567,716,000
13,309,000 204,630,000 188,203,000 539,394,000 207,289,000 39,460,000 5,342,000 1,992,000 5,935,000 5,626,000 4,862,000 9,970,000 177,231,000 5,000,000 76,687,000 788,961,000 297,556,000 491,405,000
150,000,000 505,650,000 47,200,000 778,026,000 708,934,000 909,918,000 50,627,000 53,498,000 15,582,047,000
ABI â&#x20AC;&#x201C; Pursuing A Climate Sensitive Budget for FY 2012
Renewable Energy Department of Energy A. III. e. Direction and Control of Renewable Energy Exploration, Development and Utilization A. III. i. For the operational requirements of the National Biofuels Board A. III. j. For the operational requirements of the National Renewable Energy Board B. PROJECT(s). I. Foreign-Assisted Project(s) a. Philippine Energy Efficiency Project (ADB Loan No. 2507-PHI) TOTAL Clean and Green Industrial Technology DOST D. Forest Products Research And Development Institute E. Industrial Technology Development Institute K. Philippine Council For Agriculture, Forestry And Natural Resources Research And Development L. Philippine Council For Aquatic And Marine Research And Development N. Philippine Council For Industry, Energy And Emerging Technology Research And Development TOTAL Department of Transportation and Communication Special Provision 1. Public-Private Partnership Strategic Support Fund. Special Provision. Special Vehicle Pollution Control Fund for air pollution control TOTAL
61,647,000 17,336,000 3,509,000 676,785,000 759,277,000
76,574,000 236,258,000 290,616,000 48,529,000 593,918,000 1,245,895,000 8,593,541,000 766,575,000 9,360,116,000
Other Potential Funds Contingency Fund 1. Fund Subsidies for Contingencies
1,000,000,000 Overall Savings
Unreleased Appropriation (2010) Unreleased Appropriation (2011) TOTAL GRAND TOTAL
26,758,552,000 10,300,352,000 37,058,904,000 101,295,408,000
Alternative Proposals for a Climate-Sensitive 2012 GAA IN RESPONSE TO THE GROWING CHALLENGE OF THE CLIMATE CRISIS, THE national government must focus on financing these priority adaptation and mitigation themes: 1. Disaster risk reduction; 2. Biodiversity conservation, sustainable agriculture, fisheries and forestry; 3. Clean and green technologies; 4. Renewable/sustainable energy systems; and, 5. Ecological waste management. La Liga proposes a total of PhP 7 billion for a climate-sensitive FY 2012 National Budget. These proposals are aimed at developing inroads towards a more sustainable climate financing program of the national government as expressed in the annual GAA. The budget proposals work within the defined budget line items of key national line agencies by combining increases in specific line item allocations, realignments and earmarking options biased towards climate change adaptation and mitigation actions. La Liga also proposes clear funding for new item allocations not currently within any department budget proposals but are critical to climate change actions and thus need to be included as regular budget line items in succeeding GAAs. These are: 1. PhP 1.4 Billion for Disaster Risk Reduction and Management; 2. PhP 1.4 Billion for Biodiversity Conservation, Sustainable Agriculture, Fisheries and Forestry; 3. PhP 2 Billion for Clean and Green Technologies; 4. PhP 2 Billion for New and Renewable Energy Systems; and, 5. PhP 180 Million for Ecological Waste Management Table 26. ABI-Envi Proposals for a Climate Sensitive 2012 GAA Budget Item
Variance (Proposal less NEP)
Disaster Risk Reduction Department of National Defense a. Disaster Risk Management (for revolving fund of the OCD for DRR as mandated by the DRRM Act) Other Executive Offices a. Operational Requirements for the National Climate Change Commission (for National and Local CC Action Plan Participatory processes) New Item: Nationwide IEC Campaign on CC Department of Environment and Natural Resources New Item: Rehabilitation of the Marikina Watershed Sub Total
Biodiversity, Sustainable Agriculture, Fisheries and Forestry Department of Agriculture a. Development of the Crops Sector
ABI – Pursuing A Climate Sensitive Budget for FY 2012
Reconstruction and Disaster Response Fund Allocate PhP 1 B for climate adaptation actions that include training on climate resilient crops and assistance to farms damaged by extreme weather events within the DA "Development of Crops Sector“. · g. Promotion and Development of Organic Agriculture - Implementation of the National Organic Agriculture Program (NOAP) pursuant to the IRR of the Organic Agriculture Act of 2010 (RA 10068) New Item: Vulnerability and Adaptation Needs Assessment (VNA) - a) Crops, b) Fisheries, c) Poultry and Livestock New Item: Research, Development and Extension on climate resilient - a) Crops, b) fisheries, c) Poultry and Livestock
C. Bureau of Fisheries and Aquatic Resources III. Operations 2. Conservation, regulation and protection of fisheries and aquatic resources (to include VNA on Fisheries) New Item: 4. Reducing the underlying vulnerabilities on marine resources through strengthening the Community-Based Coastal Resource Management (CBCRM) movement, pursuant to the Fisheries Code of the Philippines (RA 8550) Department of Environment and Natural Resources
II. Support to Operations c. Production and Dissemination of Technical and Popular Materials in the Conservation and Development of Natural Resources Including Environmental Education (to include climate change literacy program)
4. Community-based forestry program
5. Soil conservation and watershed management c. Protected Areas and Wildlife Management Development and Rehabilitation of Tubbataha Reef Development and Rehabilitation of Apo Reef Development and Rehabilitation of Mts. Banahaw and San Cristobal Development and Rehabilitation of Mt. Kitanglad Development and Rehabilitation of Northern Negros National Park
Development and Rehabilitation of Central Cebu National Park Development and Rehabilitation of the Mt. Kanlaon National Park New Item: Total of PhP 60 M or 10 M each for the Establishment of Marine Sanctuary and coastal resource management in six (6) critical coastal habitats: Lingayen Gulf (Pangasinan), Tayabas Bay (Quezon), Visayan Sea (Panay-Masbate), Cebu Strait (Cebu-Bohol), Panguil Bay (Misamis Oriental) and Macalajar Bay
B. PROJECT(s) I. Locally Funded Project(s) a. Development, updating and implementation of the Operational Plan for the Manila Bay Coastal Management Strategy pursuant to SC Decision with GR No. 171947-48 New Item: Allocation for the implementation of the Coral Triangle Initiative
Clean and Green Industrial Technologies Department of Science and Technology Philippine Council for Industry, Energy and Emerging Technology Research and Development (to include R&D on Green Transportation) Department of Transportation and Communication Public-Private Partnership Strategic Support Fund. Allocate P 1B for the Development of PPP investments in green technologies, products, and services within the DOTC "Public-Private Partnership Strategic Support Fund".
New and Renewable Energy Systems Department of Energy New Item: Renewable Energy Trust Fund as mandated by the RE Act of 2008 New item: For the operational requirements of the Renewable Energy Management Bureau to coordinate implementation of RE Act. New Item: Research and Development on off Grid Renewable energy systems Sub Total Ecological Waste Management Department of Environment and Natural Resources Environmental Management Bureau
ABI â&#x20AC;&#x201C; Pursuing A Climate Sensitive Budget for FY 2012
B. PROJECT(s) - I. Locally-Funded Project(s) b. Implementation of Ecological Solid Wastes Management Act of 2000 (R.A. No. 9003) c. Implementation of Clean Water Act of 2004 (R.A. No. 9275) New Item: Conduct of intensive IEC on waste reduction, segregation and composting to include campaign on reusable bags New Item: Toxics Inventory New Item: Conduct Zero Waste national and regional summits for private and public schools Sub Total TOTAL
About the ABI-Envi Cluster The Alternative Budget Initiative-Environment Cluster studies and proposes budget policy reforms and allocation for the conservation, protection and rehabilitation of the countryâ&#x20AC;&#x2122;s environment and to enhance the resiliency and build the adaptive capacity of the country to climate change. The La Liga Policy Institute (La Liga) serves as the convening organization of the cluster. The following networks and organizations contributing to ABI-ENVI include: 1. Aksyon Klima 2. Alyansa Tigil Mina 3. Earth Savers Movement 4. EcoWaste Coalition 5. First Philippine Conservation Incorporated (FPCI) 6. Haribon Foundation 7. Institute for Climate and Sustainable Cities (ICSC) 8. Kaakbay 9. Partido Kalikasan/ Eco Sustainability Institute 10. Partnership for Clean Air (PCA) 11. Philippine Federation for Environmental Concerns (PFEC) 12. Philippine Rural Reconstruction Movement (PRRM) 13. RESILIENCE: Nurturing Disaster-Ready Cities and Communities 14. Saganang Buhay sa Liga ng Bayan Foundation (SBSB) 15. Sustainability Watch 16. Sibol ng Agham at Teknolohiya (SIBAT) 17. Upholding Life and Nature (ULAN)
“KALUSUGAN PANGKALAHATAN” PARA SA LAHAT, HINDI LANG SA IILAN Assessment: The Department of Health Budget for FY 2012 THE PROPOSED BUDGET FOR FY 2012 FOR THE DEPARTMENT OF HEALTH (DOH) and its attached agencies is PhP 43,587,738,000.00, representing about 30.7 percent increase from previous year’s budget of PhP 32.77 billion. The details are as follows: Table 27. Comparative DOH budget, GAA 2011 and NEP 2012 (in thousand pesos) PARTICULARS
GAA 2011 (in thousand pesos)
Office of the Secretary Personal Services MOOE Capital Outlay Total New Appropriations Automatic Appropriations – Retirement and Life Insurance premium (RLIP) Automatic Appropriation – Franchise Taxes paid by Phil. Racing Club to White Cross, PCSO and PTS Total Obligations
NEP 2012 (in thousand pesos)
7,709,522 15,192,127 8,926,937 31,828,616 664,484
7,633,148 26,218,815 8,228,000 42,079,963 662,153
42,771,536 (Increase of 30.7%)
Source: DOH Budget Briefer FY 2012
The breakdown of the total proposed budget for health including the budget for Commission on Population, National Nutrition Council, Specialty Hospital and DOH attached corporations is as follows: Table 28. DOH and attached agencies, FY 2012 proposed budget (in thousand pesos) Particulars Department of Health DOH-Proper Commission on Population National Nutrition Council Sub-Total Specialty Hospitals Lung Center of the Philippines
% Share 42,079,963 291,523 321,892 42,693,378
96.54 0.67 0.74 97.95
National Kidney and Transplant Institute Philippine Children's and Medical Center Philippine Heart Center Sub-Total Attached Corporations Philippine Health Insurance Corporation Phil. Inst for Traditional & Alternative Health Care Local Water Utilities Administration Sub-Total GRAND TOTAL
164,800 345,000 187,000 854,360
0.38 0.79 0.43 1.96
in DOH budget
40,000 40,000 43,587,738
0.09 0.09 100.00
Source: DOH Budget Briefer FY 2012
The DOH ranks seventh among the departments with a 3.4 percent share of the total proposed national budget of PhP 1.816 trillion for 2012. Figure 13. Top Ten Proposed New Appropriations, By Department/Agency, FY 2012
Source: DOH Budget Briefer FY 2012
The proposed budget for Health, Specialty Hospitals and DOH-attached corporations is translated into PhP 463.63 per capita allocation.
ABI â&#x20AC;&#x201C; Proposal for Health Budget for FY 2012
Figure 14. Per Capita Allocation By Geographical Distribution
Source: DOH Budget Briefer FY 2012
The proposed 2012 budget showed a slight decrease in personal services and capital outlay, but a significant increase in maintenance and other operating expenses. For 2012, the increase in MOOE budget will be 41 percent, from PhP 15.7 billion this year to PhP 26.7 billion next year. Figure 15. DOH Budget Allocation by Expense Class, FY 2007-2012
About 70.2 percent of the proposed 2012 DOH budget will go to the following priority programs:1 Table 29. Top 12 PAPâ&#x20AC;&#x2122;s FY 2012 Top 12 PAPs, FY 2012 1 2 3 4 5 6 7 8
9 10 11 12
Subsidy for Health Insurance Premium payment of indigent families to the NHIP Health Facility Enhancement Program Equity for the modernization of the 25 regional hospitals under the Public-Private Partnership (PPP) framework Family Health including Responsible Parenting Expanded Program on Immunization Implementation of the Doctors to the Barrios and Rural Health Practice Program Tuberculosis Control National Pharmaceutical Policy Development including provision of drugs and medicines, medical and dental supplies to make affordable quality drugs available Elimination of diseases as public health threat such as malaria, schistosomiasis, leprosy and filariasis Health System Development Program including Policy Support Other infectious diseases and emerging diseases including HIV/AIDS, dengue, food and water-borne disease Health Emergency Management including provision of emergency drugs and supplies
2,503,573 1,874,792 1,741,801
5.9 4.5 4.1
While the proposed health budget for 2012 shows significant increases in terms of regular budget items such as the Philippine Health Insurance Corporation (PhilHealth) social health insurance coverage, there are critical programs which have remained poorly funded and ignored such as public health, human resources, the Magna Carta for Health Workers, health services for persons with disabilities (PWD), and Women and Children Protection Unit. Public health allocation has already increased to 51 percent in 2011 only to decrease again to 33 percent in 2012, close to its 2010 level of 36 percent, while allocation for hospitals remains steady at 27 percent of the DOH budget (2012 and 2011 at 27 percent). In 2010, hospital care accounted for the biggest share at 50 percent while it received 55 percent in 2008 and around 63 percent in 2007.
DOH Budget Briefer FY 2012, p. 14. Note that the briefer says 82 percent, but sum of 12 items is only 70.2 percent.
ABI â&#x20AC;&#x201C; Proposal for Health Budget for FY 2012
Figure 16. FY 2011 vs. FY 2012 Allocation by Function, DOH-Proper (in billion pesos)
While there are increases in the concerned budgets especially in the enhancement of health facilities for FY 2011 to address commitments to health-related Millennium Development Goals (MDGs), these are still not enough. The health sector, in fact, continues to suffer from underinvestment and inequities in health infrastructure and health human resource. The country now faces double burden as it still lacks spending for health: majority of the ten leading causes of morbidity are communicable disease while the leading causes of mortality are mainly non-communicable diseases (NCDs). We have not fully responded to addressing infectious diseases on a wide scale, yet we are now facing challenges in addressing NCDs. Both programs have no dramatic increase or support. The current public health efforts may not meet the countryâ&#x20AC;&#x2122;s MDG commitment by 2015 especially those related to maternal and child mortality if the government does not spend more for the health sector. The neglect, shortfalls and underinvestments for the past decades certainly needs much more effort and resources, and certainly a bigger chunk of the budget. The country, in other words, still has a lot of catching up to do.
Financing health THE AQUINO ADMINISTRATION HAS ADOPTED UNIVERSAL HEALTH CARE AS ITS framework in its health agenda and has said that health is one of its priorities. The health budget in the past few years has never reached the top five of the governmentâ&#x20AC;&#x2122;s budget priorities although often cited as a major government priority, thus posing a challenge to the current leadership to make a difference this time. The DOH in 2012 ranks 7th with a 3.40 percent share of the total national budget. It never ranked higher than this point: in 2007, it was ranked 8th with 1 percent share in the total budget; 7th in 2008 with 1.3 percent share; 5th in 2009 with 2.2 percent share; 6th in 2010 with 2 percent share; and 7th in 2011. It is worth noting that it was only in 2009 when DOH ranked 5th among the ten departments, receiving an allocation twice of that from the previous year. On a positive note, beginning FY 2007, the budget for DOH proper showed a steady increase up to FY 2012. Figure 17. DOH Budget as Percentage of GAA, FY 2007 to FY 2012 4.00%
2007 2008 2009 2010 2011 2012
11.4 18.91 23.67 24.65 31.83 42.08
3.50% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00%
DOH Budget as 1.79% Percentage of GAA
Table 30. National Health Accounts, Selected Asian Countries (2000 & 2009)
ABI – Proposal for Health Budget for FY 2012
The World Health Organization (WHO) pegs the standard health expenditure at 5 percent of a country’s gross domestic product (GDP). The Philippines’ health spending however has never gone beyond 3.9 percent of its GDP. From 1995 to 2008, health expenditure on the average was only 3.521 percent of GDP 2 which is way lower than that of other developing countries such Vietnam (5.4 percent), China (4.6 percent), India (4.4 percent), and countries such as Japan with 7.7 percent and the US with 13.4 percent.3 More so, the Philippines is one of the lowest spenders on health among its neighbors in Southeast Asia. Data show per capita government spending on health in the country increased from US$ 33 in 2000 to US$ 67 in 2009, but this is still much lower than in the rest of the region, particularly Malaysia and Thailand which posted per capita spending of US$ 336 and US$ 168 respectively in 2009. The share of the country’s public health expenditure to total health expenditure in 2009 was likewise the lowest in the region. It is important to note, however, that the Philippines has committed to meeting the WHO benchmark. It has already drafted a 2012-2020 financing strategy which stipulates how to meet the benchmark. The share of the private and out-of-pocket sources (OOP) in total spending in the Philippines is one of the highest among comparator countries. There is an increasing trend in health expenditures borne by OOP, while government health expenditure has remained constantly at a low level. It is also important to note that OOP spending levels have been increasing, despite Social Health Insurance (SHI) and universal coverage reforms. OOP however is a crude indicator of financial protection and measures the amount of health spending for which there is no public and or/private risk pooling (i.e., prepaid ‘insurance’ coverage). While in and of itself, it provides a crude measure of the level of financial risk faced by the population, when accompanied by more detailed analyses of spending at the household level by income quintile, these measures provide a comprehensive assessment of how well the Philippines performs vis-a-vis the financial protection and equity goals of health systems. Ideal sourcing of health expenditure should be the government at 40 percent, while social health insurance at 30 percent. Out-of-pocket should only be at 20 percent. So, government still lacks about 14 percent and social health insurance needs to put in additional 21.5 percent at the least. Out-of-pocket contributions have to drop. It is really unfortunate that the Philippines ranks among the lowest health spenders in Asia. Despite reports on the progress of the health-related MDG attainment -- that the target for maternal health has least chances of success -- the government has not increased allocation for such. The budget allocation lags behind required resources to catch up and meet the required 2015 target. While maternal mortality has been improving, its rate of reduction appears to be too low to achieve its MDG target. It is always the poor of our population that have the highest infant as well as under–five mortality. The 2007 health spending chart below shows that out-of-pocket sources still remained the highest. Neither government subsidy nor the NHIP has adequately protected the poor from financial risk.
Universal Health Care and Health Financing Factsheet, pp. 1-2, quoting World Bank and WHO Global Health Observatory 3
(Powerpoint) The DOH Budget FY 2012, quoting World Health Statistics, 2010
Figure 18. Distribution of Health Expenditure by Source of Funds, 2007 Philippine National Health Accounts Local Government 13.3%
National Government 13.0%
Foreign Other Assistance Private 0.4% 10.5%
Social Health Insurance 8.5%
Alternative Budget Proposals for Health for FY 2012 THE DOH ADMITS THAT “POOR FILIPINO FAMILIES HAVE YET TO EXPERIENCE equity and access to critical health services.” As such, doubling the budget proposal for 2012 (from PhP 43.5738 billion to about PhP 80 billion) would cover part of the PhP 360 billion universal health care financing estimates needed for 2012 to 2015. The proposed health budget will significantly help address public health, enhancement of human resources and facilities, treatment of NCDs, and addressing concerns related to emerging and re-emerging diseases. It is at this time that a dramatic turnaround has to be made to ensure that Filipinos are afforded their basic right to health services and truly enjoy universal health care. “KALUSUGAN PANGKALAHATAN” (Universal Health Care): This is a focused approach to health reform implementation ensuring that all Filipinos especially the poor receive the benefits of health reform. It is a deliberate focus on the poor to ensure that they are given financial risk protection through enrolment to PhilHealth and they are able to access affordable and quality health care and services in times of need.”
Below are specific proposals of the Alternative Budget Initiative Health Cluster for the 2012 health budget: 1. Public Health Higher allocation for public health is believed to directly improve the health status of the poor and low-income groups. In addition, better public health programs will reduce hospital workloads. We need to protect public health to scale up interventions to achieve our MDGs. Expenditures on public health interventions is deemed critical in ensuring that the MDG health targets are met, as well as that equity considerations in health care delivery are fulfilled.
ABI â&#x20AC;&#x201C; Proposal for Health Budget for FY 2012
1.a. Expanded Program on Immunization (EPI) Budget Item Expanded Program on Immunization (EPI)
GAA 2011 2,462,938,000
NEP 2012 Proposal 1,874,792,000
EPI budget is for BCG, DPT, OPV, Hepatitis B, Measles, TT, MR, Pneumococcal Conjugate Vaccine, and rotavirus. Cost of vaccines for senior citizens has been transferred to Family Health Office budget. The explanation for variance is that there was already a gap of PhP 641,530,500 based on the requirements for full coverage in 2011. An additional PhP 541 million is needed for the Philippinesâ&#x20AC;&#x2122; response to a forecasted major measles outbreak due to an imported measles virus strain. Requirements for full coverage of immunization will be provided with this variance. The National Expenditure Program (NEP) provided PhP 1.9 billion for the EPI to reduce infant mortality and morbidity through decreasing the prevalence of immunizable diseases including tuberculosis (TB), diphtheria, pertussis, tetanus, polio, measles and rotavirus. This program is targeting 2.6 million children aged 0-15 months. But, as advocates for quality health say, preventing is more important than curing diseases. In June 2011 the Republic Act 10152 or the Act Mandating for the Basic Immunization of Services for Infants and Children under five years old was passed. It required that all infants be provided with Hepatitis B vaccine within 24 hours of birth. 1.b. Family Health Including Responsible Parenting Budget Item
Family health and responsible parenting
NEP 2012 Proposal 2,503,573,000
Includes cost of vaccines for Senior citizens (Pnuemococcal and influenza).
The government needs to implement the Maternal, Neonatal and Child Health and Nutrition Strategy (MNCHN) strategy to consolidate efforts in attaining MDG 4 and 5 by setting up Basic Emergency Obstetrics and Newborn Care (BEmONC) and Comprehensive Emergency Obstetrics and Newborn Care (CEmONC). NEP has set aside PhP 2.5 billion for family health and responsible parenting, showing an increase from PhP 731 million in 2011. Bulk of the increase of funds will be used for the vaccination of 1.2 million senior citizens against influenza and pneumonia. 1.c. Infectious Disease Prevention Control. The health disease trend continues to highlight the predominance of communicable diseases such as respiratory tract infections, diarrhea, influenza, tuberculosis, malaria and dengue in causes of death. Eight of the top ten causes of morbidity are infectious diseases.
The DOH will provide PhP 595 million for the elimination of diseases considered as public health threats such as malaria, schistosomiasis, leprosy, filariasis and rabies control. Budget Item Tuberculosis control
GAA 2011 1,021,000,000
NEP 2012 Proposal 1,021,000,000
ABI Proposal 1,071,000,000
PhP 1 billion is provided by NEP for TB control to ensure treatment of TB patients through the Directly Observed Treatment Short Course (DOTS) strategy. This would allow for a critical shift from facility-based approach to an active case finding strategy. The proposed PhP 50 million will go to TB operations and for X-ray machines needed by identified cities and municipalities with urban poor communities. 1.d. Other Infectious Diseases Budget Item Other infectious diseases and emerging and re-emerging diseases, including HIVAIDS, dengue, leptospirosis, food and water borne-diseases
GAA 2011 223,797,000
NEP 2012 Proposal 223,797,000
ABI Proposal 386,093,000
To combat the rising reported cases of HIV/AIDS, and other infectious diseases (i.e., dengue, food and water borne-diseases), NEP provides PhP 223.727 million for the purpose. ABI is proposing an additional PhP 386.093 million (with PhP 162.296 million variance to that of the NEP). 1.e. Addressing Outbreaks The Philippines continues to witness outbreaks of emerging infectious diseases including epidemic-prone communicable diseases such as dengue, cholera, typhoid and leptospirosis. Dengue has notably become a serious public health problem, imposing a significant burden on hospitals and other health care services. The most common disease outbreaks are food-borne and water-borne diseases like cholera, salmonellosis and shigellosis, according to WHO. Meanwhile, leptospirosis has risen significantly prompting health officials to heighten their campaign against the disease. Leptospirosis is a disease transmitted to humans through water that has been contaminated with urine from animals like rats, swine, and carabao. Humans could be infected through open wounds or skin lesions or through the eyes. Its symptoms include fever, chills, and intense headache that could lead to complications like meningitis, renal failure, respiratory distress and death.
ABI – Proposal for Health Budget for FY 2012
1.f. Access to Universal HIV Prevention The changing epidemiological profile of HIV prevalence is a concern. Based on the UNAIDS Report on the Global AIDS Epidemic 2010, the Philippines is one of the seven countries where new cases increased by more than 25 percent from 2001 to 2009. Shifting in the predominant mode (90 percent) of transmission was noted in 2007 from heterosexual to bisexual and homosexual transmission. Transmission through sharing and re-using injecting drug equipment accounted for 3 percent of reported cases, while mother-to-child transmission accounted for 1 percent. Alarming concerns are raised on HIV prevalence among people who inject drugs, increasing from 0.40 percent in 2007 to 0.59 percent in 2009 then jumping to a whopping 53 percent in 2010, according to the Integrated HIV Behavioral and Serologic Surveillance system of the National Epidemiology Center of the DOH. 2007 New HIV Infections Budget
HIV/AIDS prevalence remains below 1 percent, but the country needs to be more vigilant especially among the younger Filipino generation, overseas Filipino workers, tourists, prostituted women/men and men having sex with men. In Asia, only two countries -- the Philippines and Bangladesh – have registered increasing HIV prevalence. Six Filipinos each day get infected by HIV, as compared to 1 person infected daily in 2007. In spite of this trend, it seems that HIV prevention is not in the budget priorities of DOH. It is also alarming that the global fund for HIV prevention services in the Philippines will end by next year. From 2009 to NEP 2012, there would be no fund increase for HIV prevention and services. The current state of funding is not acceptable, thus arriving at the imperative question: “Do we have to wait for the worse?” Budget Item
Epidemiology and Disease Surveillance.
NEP 2012 Proposal 136,948,000
The variance of PhP 30 million as proposed by ABI will cover support for surveillance operations and for high quality and multi-disciplinary research programs to contribute significantly to the control of infectious and tropical diseases. The WHO under the revised International Health Regulations of 2005 requires all member States to strengthen their core capacities for disease surveillance and response to avert occurrence and international spread of diseases and other public health threats. The new regulations have a greatly expanded scope including those with new and unknown causes that present significant harm to humans irrespective of origin or source. Existing surveillance systems in the Philippines however do not properly address such concerns.
Rabies control program
NEP 2012 Proposal 72,000,000
ABI Proposal 296,922,560
It is important to note that rabies remains a public health threat. The country is one of the top 10 rabies-affected countries globally. Control of animal rabies, especially canine rabies, is the major preventive approach. An additional PhP 224,922,560 million is needed towards full coverage of the estimated 146,000 rabies victims. The 2012 NEP allocation for this will only cover 55 percent of total bite cases. ABI proposes that dog vaccination shall constitute as LGU counterpart. It would be cheaper to cover dog vaccine with the LGU’s counterpart of 25 percent, taking into account that rabies remains a serious public health threat. 2. Improving Quality and Access (Health Human Resource and Facilities) Budget Item Health Facilities enhancement program Equity for the modernization of the twenty-five (25) Regional Hospitals under the Public Private Partnership (PPP) framework
GAA 2011 7,143,909,000
NEP 2012 proposal 5,078,000,000 3,000,000,000
ABI Proposal 25,301,037,000
2.a. ABI Proposal for Health Facilities Enhancement Program: PhP 25,301,037,000.00 The proposal will cover the following: Personnel services of PhP 8.6 billion requirement for Rationalization Plan of Hospitals; MOOE costing PhP 2 billion to cover initial support to operations from upgrading of health facilities; and Capital Outlay costing PhP 14.7 billion for upgrading of health facilities to provide CEmONC services and other facilities to strengthen gate-keeping function. For the upgrading of LGU health facilities (district hospitals, provincial hospitals, rural health units), PhP 1,400,000 in the NEP is for DOH hospitals with existing laws. To improve maternal health and the well-being of infants, NEP will sustain the implementation of the Health Facilities Enhancement Program, with PhP 5.1 billion funding to upgrade healthcare facilities and services particularly maternal health care facilities. The budget for Health Facility peaked in 2011 at PhP 7.4 billion, but, under the proposed 2012 budget, it will shrink to PhP 5.3 billion. Budget for the program will be used to upgrade, improve and build health facilities around the country. It is critical to the attainment of complete health services to all Filipinos. The proposed PhP 12 billion to fund payments for premium subsidies under the NHIP – an increase of PhP 8.5 billion from PhP 3.5 billion in 2011 – will cover all 5.2 million indigent households, but will be insufficient to cover the underserved communities and the poor as they are not enough to enroll the people. It is important to provide or enhance the facilities to service a particular beneficiary when they need it, when they get sick or when they need to take care of out-patients to maintain a healthy state and not only when they are sick. It is a major concern because we need to put in the infrastructure. More so, the conditional cash transfer (CCT) program is not a stand-alone program. Complementary policies such as the supply-side inputs on health and education facilities and
ABI – Proposal for Health Budget for FY 2012
personnel among others should be provided. Longer-run generation measures such as generation of more employment opportunities should be prioritized in order to ensure the returns on human capital investment will be realized. PhP 3 billion is appropriated for the PPP support fund to be used exclusively for the modernization of 25 district hospitals. ABI is critically questioning this until the policy and regulatory frames have been reviewed and improved. We should learn from the Build-OperateTransfer experiences of previous administrations. 2.b. Health Human Resource Budget Item
Health Human Resource Development Implementation of Doctors to the Barrios and Rural Health Practice Programs RAT Plan Unfilled positions Provision for a pool of 60 resident physicians Provision for a pool of 136 Medical Specialist II (part-time) and 10 Medical Specialist (Full time) Magna Carta of Public Health Workers
NEP 2012 Proposal
2,900,000,000 1,007,000,000 50,132,000 111,200,000
2,900,000,000 1,007,000,000 17,611,000 62,215,000
ABI is calling to promote the equitable distribution of health professionals in the country. The budget will increase 13 times to PhP 1.742 billion from PhP 123 million this year to deploy 280 doctors, 12,000 nurses, and 1,376 midwives to regional health units, barangay health stations, and hospitals nationwide. This is inclusive of the PhP 56 million to support 292 Pinoy Medical Doctors Scholars. The department initiated different deployment and placement programs to promote a more equitable distribution of health human resource in the country such as the Doctors to the Barrios Program, the Medical Pool Placement and Utilization Program, Specialist to the Provinces, and more recently, the Midwifery and Nurses Deployment Program. In the absence of enough budget allocation for its human resources and for the provision of quality health services -- in the context of universalizing health care -- the DOH had to resort to different schemes and practices (from contractualization of health workers to “volunteerism/training programs” such as the Registered Nurses for Health Enhancement and Local Service (RN HEALS) Program which was implemented this year). Instead of hiring nurses and providing them with real wages, they are called upon to be trained with mere allowances or honoraria. Skilled health professionals (such as registered nurses) are doing services with an allowance to be trained, or to be simply exposed to both hospital and public experience. Although the intent is good, public health advocates are alarmed that these skilled professionals are receiving average of PhP 8,000, which is obviously way too low than the minimum wages which workers in the National Capital Region receive. These rates are almost half lower than the monthly wages which DOH nurses receive, around PhP 15,000. If we want universal health care, we need to take care of our health professionals.
2.c. Creation of a new budget line item for the implementation of Magna Carta for Health Workers or Republic Act 7305 passed in 1992 at PhP 2.1 billion This mandates a host of benefits, including hazard pay, laundry allowance, holiday pay, and even remote allowance or medico-legal allowance, for government doctors. 3. Non-communicable disease prevention The country faces a double burden when it comes to diseases: majority of the 10 leading causes of morbidity are communicable diseases and the leading causes of mortality are mainly non-communicable diseases (NCDs). Diseases of the heart and vascular system are the leading causes of mortality, comprising nearly one-third (31 percent) of all deaths, including cardiovascular diseases, cancers/malignant neoplasms and diabetes mellitus. Sedentary and stressful life brought about by modernization and congestion, as well as the increasing rate of risk factors such as smoking, obesity, blood sugar, and over-nutrition all contribute to the emergence of NCDs. Smoking is as pervasive as ever, especially among adolescents. The prevalence rate of smoking rose from 15 percent in 2003 to 22 percent in 2007. The prevalence rate of diabetes among adults (20-79 years old) is 7.6 percent. Hypertension afflicts 22.3 percent (more than 1 out of 5) of Filipinos. Smoking tobacco is placed as a major risk factor in seven out of the ten leading causes of mortality. In the Philippines according to WHO, smoking kills 10 Filipinos every hour. Over five million die each year due to tobacco-related diseases yet almost 30 percent of Filipinos 15 years and over still smoke. Based on the Global Adult Tobacco Survey (GATS) in 2009, approximately 14.6 million Filipino men and 2.8 women smoke tobacco. Poverty and genetics also contribute to NCDs, indicating the need for early detection as well as health promotion and communication. These preventive programs have not been given much attention. Poor households rarely have choices about healthy living and working quarters and healthy foods, and seldom have the opportunity for good exercise, especially if they live in unsafe, congested informal settlements. Thus, couching NCDs in terms of â&#x20AC;&#x153;lifestyleâ&#x20AC;? change can be wrong-headed by blaming the victim, while understanding NCDs in the wider context of socioeconomic constraints can lead to more robust public health interventions. PhilHealth and other health insurance plans also need to be lobbied to provide cost-effective outpatient drug therapies for chronic diseases, given the rising prevalence of these conditions. Budget Item
a. Non communicable disease prevention and control b. Personal assistance /care for person with disability (under the NCD)
NEP 2012 Proposal 68,766,000
NEP 2012 gave a measly PhP 68.7 million allocation for NCD prevention and control when statistics reveal alarming increase in prevalence over the past years. ABI proposes PhP 283 million additional funds (including personal assistance for PWDs) for NCD control program to support the following: PhP 700,000 for leveraging services for health and wellbeing; PhP 500,000 for the prevention of blindness program; PhP 100 million for health program for PWDs; PhP 20 million for airing ads for Health and wellness of Older Persons (HWOP); and PhP 160.3 million to support screening and early detection of NCDs. The budget will cover hourly rates of personal assistants who will accompany PWDs when needed.
ABI – Proposal for Health Budget for FY 2012
This will also enable persons with significant disabilities to live independently in the community. Scheme will involve 42 community based assistants ready to be tapped by about 14 PWDs. By doing so, family of persons with disabilities will be liberated from the burden of taking care of their family member with disability. 4. Prevention Program through Health Promotion Budget Item Health Promotion Environmental and Occupational Health
GAA 2011 155,281,000 50,300,000
NEP 2012 Proposal 153,230,000 50,300,000
ABI Proposal 172,383,000 395,389,000
Variance 19,153,000 345,089,000
The budget stipulated that five percent of the total amount appropriated for maintenance and other operating expenses (MOOE) of all hospitals would be allocated and used for, disease prevention and health promotion. Prevention through the Health Promotion program got only PhP 153 million when in fact this would address concerns from infectious diseases and family health to environmental and occupational Health. Natural calamities also contribute significantly to the disease and injury burden. About 20 typhoons visit the Philippines each year, causing flooding, landslides, and other storm-related disasters. The archipelago forms part of the “Ring of Fire” volcanic and earthquake zone. An Asian Development Bank (ADB) assessment noted that the country still lacks a comprehensive disaster response program. The reach of disaster relief is inadequate and disaster response efforts are often uncoordinated. 5. Food and Drug Administration: Keeping Watch Over Public Safety Budget Item FDA 1.a. Regulation of food and drugs , including food fortification and salt iodization 1.b. Operations of Cebu satellite laboratory 1.c. Operations of Davao Satellite Laboratory 3. Regulation of devices and Radiation Health
NEP 2012 proposal 266,001,000 199,238,000
ABI Proposal 1,367,217,580
ABI’s proposal of PhP 1,367,217,579.84 total budget for regulation programs like the Food and Drug Administration (FDA) aims to support capability building and regulatory functions for health services. This will help strengthen work on how we can protect the public by ensuring safety and quality of health products, food, and devices.
The FDA is tasked with ensuring the safety of products under its regulatory mandate. It has a very wide scope of responsibility that includes processed foods, drugs (human and veterinary), supplements and herbal medicines, vaccines and biological, cosmetics, household hazardous substances including urban pesticides, toys, medical gases, diagnostic reagents, medical and radiation devices. The Republic Act 9711, which renamed the Bureau of Food and Drugs to FDA, added tobacco under its regulatory responsibility. Over the years, the products and establishments that the FDA must oversee have expanded to the present staggering numbers of 100,784 and 65,239, respectively. However, the personnel complement, equipment and funding have been stagnant in the past few years. Only 130 inspectors nationwide are available to oversee the establishments. Of the 1,200 applications for food products coming in on a monthly basis, only four personnel are doing the evaluation. What, then, should be the ratio? Furthermore, recent incidents involving food contamination such as melamine, phthalates, and bacterial contamination and the findings of harmful levels of lead, mercury and other heavy metals in toys and cosmetics require analytical laboratory procedures to be done which are beyond the reach of FDA’s current instrumentation capability. Furthermore, the problem of counterfeit drugs is an emerging threat to the well-being of patients undergoing treatment for different ailments. As it is, on average, the FDA conducts about 15,000 analytical tests on different products each year. The FDA must ensure that all drug products under its oversight must be effective and safe. It currently has about 29,000 drug products in its registry that includes generic products. It oversees almost 21,000 cosmetic products and almost 33,000 food products. On the status of RA 9711, the implementing rules and regulations became effective in April 2011 and FDA is currently working on its implementation with the Five-year Business Plan scheduled to be completed at the end of August 2011. The DOH Secretary has constituted a Change Management Team which is tasked with putting together the business plan. It will only be able to use its retained income after the National Economic Development Authority (NEDA) approves the proposed increases in fees. Part of the difficulty is that even after due process with public consultation already accomplished, there were objections by some quarters of the industry. Enforcing the IRR is not an easy task for the FDA which still has to handle a staggering workload each day. The FDA will be transitioning into the new FDA which will reorganize it into four centers namely: Center for Drug Regulation and Research Center for Food Regulation and Research Center for Cosmetic Regulation and Research Center for Device Regulation, Radiation Health and Research The existence of these centers will provide greater focus and improve efficiency as well as accountability of the various areas of responsibility. The personnel complement is expected to grow threefold its present number. The FDA has a five-year transition period into the new organization after which time it is hoped that it will be able to sustain itself on the basis of its income. During this period of transition it urgently needs support to address deficiencies in infrastructure, equipment and manpower.
ABI – Proposal for Health Budget for FY 2012
6. The National Health Insurance Program Increasing coverage of the poorest of the poor is imperative now more than ever. To provide wider access to health services, NEP increased premium subsidies for indigents under the NHIP, from PhP 3.5 billion this year to PhP 12 billion next year, to help ensure coverage for all of the 5.2 million indigent households, as indicated in the NHTS. ABI’s proposal of PhP 20 billion will cover premium subsidies not only of 5.2 million families. There is a need to improve coverage of the informal sector (5.6 million families) at PhP 1,200 premium (for the local government units to sponsor the second poorest quintile). However, there is a need to increase availment. Enrolment is not all that is necessary but they must be able to understand and know what they are entitled to when they get sick. Stronger information campaigns on member entitlements, coverage and PhilHealth-accredited facilities in the communities are needed. Goal is to implement zero balance/no balance billing scheme for the poorest quintiles who will go to government hospitals. There is also a need to improve outpatient benefits to cover more diagnostic modalities, drugs and medicines. Budget Item Subsidy for health insurance premium of indigent families enrolled in NHIP
GAA 2011 3,500,000,000
NEP 2012 Proposal 12,028,000,000
ABI Proposal 20,900,000,000
Figure 19. Health Insurance Coverage by Wealth Quintile, 2008
7. Other health concerns The proposed PhP 46.501 million will help the Women’s and Children’s Protection Units (WCPUS) in 20 DOH hospitals. Some of these WCPUs have been serving abused women and children for the past 10 years and make gender- and child-sensitive, holistic and appropriate medical services and intervention accessible to the victims of violence against women and children (VAWC). The existing WCPUs sadly have to look for funds every year in order to continue their services. Most of them do not have assigned social workers and physicians are borrowed from the Department’s pediatrics and ob-gyn units or are volunteers. Maintaining trained women and child protection specialists on a regular basis at these WCPUs has proven to be a challenge. Competent and committed to provide patients with the
highest clinical and medical standards of care for abused women and children, the WCPUs cannot keep these trained personnel due to lack of funds to support their salaries. WCPUs personnel and operations are subject to the discretion of hospital directors many of whom do not give priority to the WCPUs. There is no need for a WCPU in every DOH-retained hospital. It is more cost-effective to have WCPUs in regional hospitals and to follow the DOH initiative on a health care delivery network. Women and Child Protection Unit in DOH Retained Hospitals Budget Item Women and child protection units in DOH retained hospitals
NEP 2012 Proposal New Budget Item
ABI Proposal 46,501,000
Figure 20. Percentage of Women having problems in Accessing Health Care, by wealth quintile
8. Health care assistance to indigents A new line item of PhP 200 million will cover health care assistance to indigents in line with WHOâ&#x20AC;&#x2122;s call to reach to the urban poor by universalizing health care.
ABI – Proposal for Health Budget for FY 2012
Summary of ABI’s Proposed Budget for Health for FY 2012 Table 31. Summary of ABI’s Proposed Budget for FY 2012 - DOH Budget Item
3 4 5
7 8 9 10 11 12
Infectious Disease Prevention Control Epidemiology and Disease Surveillance. 2. Rabies control program Intensified Disease Prevention and Control 3.a.1. Expanded Program on Immunization (EPI) 3.b. Tuberculosis control 3. c. Other infectious diseases and emerging and re-emerging diseases, including HIVAIDS, dengue, food and water borne-diseases plus leptospirosis c. Non communicable disease prevention and control Personal assistance /care for person with disability d. Family health and responsible parenting e. Environmental and Occupational Health 4. Health Promotion 6. c. Health Facilities Enhancement Program FDA 1.a. Regulation of food and drugs , including food fortification and salt iodization 1.b. Operations of Cebu satellite laboratory 1.c. Operations of Davao Satellite Laboratory 3. Regulation of devices and Radiation Health Support to Operations c. Health Human Resource Development Implementation of Doctors to the Barrios and Rural Health Practice Programs RAT Plan Unfilled positions Provision for a pool of 60
NEP 2012 Proposal
2,900,000,000 1,007,000,000 50,132,000
2,900,000,000 1,007,000,000 17,611,000
13,739,000 13,658,000 39,366,000
resident physicians Provision for a pool of 136 Medical Specialist II (parttime) and 10 Medical Specialist (Full time) Magna Carta of Public Health Workers f.1. Subsidy for health insurance premium of indigent families enrolled in NHIP
Equity for the modernization of the twenty-five (25) Regional Hospitals under the Public Private Partnership (PPP)framework Women and child protection units in DOH retained hospitals Health care assistance to the indigents TOTAL
New Line Item
20,900,000,000 2400x5.2 1200x5.6 P1.63B to support membership services Critically questioned
New Line item
New Line Item
About the ABI Health Cluster THE ABI HEALTH CLUSTER IS COMPOSED OF ABOT-KAYANG GAMOT SA ABOTKayang Presyo (AGAP), Asia Against Child Trafficking (ASIA-ACTS), Child Protection Unit (CPU) Network, Coalition for Health Advocacy and Transparency (CHAT), Coalition on the UN Convention on the Rights of Persons with Disabilities (CCRPD), Confederation of Older Persons' Association of the Philippines. (COPAP), Coalition of Services of the Elderly, Inc. (COSE), Democratic Socialist Women of the Philippines (DSWP), Family Planning Organization of the Philippines (FPOP), Health Care Without Harm, Health Justice, Medical Action Group (MAG), Philippine Legislatorsâ&#x20AC;&#x2122; Committee on Population and Development Foundation, Inc. (PLCPD), PS LINK, the Forum for Family Planning and Development (FFPD), TLF Share, VSO Bahaginan, and WomanHealth Philippines.
Situation/Assessment ALLEVIATING POVERTY AND HUNGER REMAINS A MAJOR CHALLENGE TO THE Philippines, specifically to the Department of Social Welfare and Development (DSWD). Current statistics tell so much where we are right now: The magnitude of the poor population, for instance, increased by 4.4 percent, from 22.2 million in 2006 to 23.1 million in 2009 – or almost 970,000 over only three years – according to the 2009 statistics of the National Statistical Coordination Board (NSCB). The number of poor families (3.86 million) and population poverty incidence (26.5 percent) likewise increased while the magnitude of food poor in the population decreased from 9.9 million to 9.44 million. In terms of regions, Caraga, the Autonomous Region in Muslim Mindanao (ARMM), Region IX (Zamboanga Peninsula), Region V (Bicol Region) and Region VIII (Eastern Visayas) remain the most impoverishedi. Yet the government outlook on poverty in the next four years is not that upbeat: DSWD Secretary Corazon Soliman recently said that halving poverty by 2015, the target of Millennium Development Goal 1, is unattainable. ii DSWD implements social protection (SP) measures to bring relief to poor individuals and households. Social welfare and safety net programsiii under it from 2008 to 2012 are: Table 32. DSWD-funded Social Welfare and Safety Net Programs 2008-2012 1. 2.
3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13.
SOCIAL WELFARE Ahon Pamilyang Pilipino / Pantawid Pamilyang Pilipino Program (conditional cash transfer) Malusog sa Simula, Yaman ng Bansa (a day care-based feeding program) Supplemental Feeding Program Rice Subsidy Core Shelter Assistance Project Construction of Buildings and Dormitories for the Haven for the Elderly Upgrading and Refurbishing of Haven for Women Construction of Bahay Pag-asa Youth Development Center PAMANA Pillar 1 – IDPs Modified Shelter Project, ARMM Social Pension for Indigent Senior Filipino Citizens Assistance to persons with disability (PWDs) and senior citizens (SCs) Implementation of Juvenile Justice & Welfare Act (RA 9344) including additional for Training and Infra Program of the Council Protective and rehabilitation services for center-based constituents
SAFETY NETS 1.Assistance to victims of disasters and natural calamities 2. Protective services for individuals and families in especially difficult circumstances 3.Food for Work for IDPs 4.Tindahan Natin 5.SEA-KABAYAN 6.PAMANA-Pillar 2 – livelihood programs for IDPs 7.KALAHI-CIDSS-KKB
Source: General Appropriations Act 2008-2011 and National Expenditure Program 2012
Social safety programs include livelihood and micro-finance projects, e.g., PAMANA Pillar 2 and the livelihood component of the Kapitbisig Laban sa Kahirapan-Comprehensive and Integrated Delivery of Social Services Project (KALAHI-CIDSS). Social welfare programs meanwhile are preventive programs that respond to the needs of the poorest of the poor. Among these services are four permanent programs, e.g., assistance to victims of disasters and natural calamities, protective services to individuals and families in especially difficult circumstances, assistance to persons with disabilities (PWDs) and senior citizens (SCs) and protective and rehabilitation services for center-based constituents. The rest are categorized as projects, i.e. with budgets limited only to the project life, except for KALAHI-CIDSS and the Conditional Cash Transfer (CCT) program which consistently receive funding in the agency’s budget. Dramatic increases of DSWD budget from 2008 to 2012iv DSWD’S BUDGET BALLOONED FROM PHP 6.3 MILLION IN 2008 TO PHP 49.2 BILLION for 2012 – but these are due solely to the CCT program. Since its inclusion in the 2008 DSWD appropriation, the CCT program budget grew rapidly to as much as 65 percent of the total agency budget in 2010, and is programmed to take up 80 percent of the department budget in 2012. This means the allocation increased from PhP 298 million in 2008 to a staggering PhP 39 billion in 2012. Table 33. CCT vs DSWD Budget 2008-2012 (NEP) FY
DSWD Budget (Office of the Secretary)
% of DSWD Budget
2008 2009 2010
298,550,000.00 5,000,000,000.00 10,000,000,000.00
6,370,624,000.00 10,579,126,000.00 15,269,461,000.00
4.7 47.3 65.5
2011 2012 (NEP)
Source: General Appropriations Act 2008-2011 and National Expenditure Program 2012
In contrast, the share of other DSWD programs and projects in the budget consistently decreased from 95 percent in 2008 to only 9 percent in the 2012 National Expenditure Program (NEP). Table 34. Movement of DSWD Programs Budget 2008-2012 (NEP) 2008
Total DSWD Programs Budget
DSWD Programs less CCT
Other Programs % share in 95 31 25 Total DSWD Programs Budget Source: General Appropriations Act 2008-2011 and National Expenditure Program 2012
ABI â&#x20AC;&#x201C; DSWD Budget and CCT Allocation for 2008-2012
The agency budget minus the CCT program actually underwent decreases from PhP 6 billion in 2008 to PhP 5.2 billion in 2010. The exception is in 2011 when it increased by 146 percent but only to decrease again for 2012 by 25 percent. Table 35. Increase in DSWD Budget Excluding CCT 2008-2012 Budget Year
Agency Budget less CCT
% inc (dec)
2010 2011 2012 (NEP)
5,269,461,000.00 12,952,741,000.00 9,758,704,000.00
-6 146 -25
Source: General Appropriations Act 2008-2011 and National Expenditure Program 2012
The National Council on Disability Affairs is the only attached agency whose funding decreased from PhP 35.9 million in 2008 to PhP 29.7 million in 2012. This office temporarily enjoyed some presidential attention as it was placed under the Office of the President from 2009 to 2010 only to be returned once again to DSWD in 2011. Table 36. DSWD Budget with Attached Agencies 2008-2012 A. DSWD Secretary B. Council for the Welfare of Children C. Inter-Country Adoption Board D. National Council for the Welfare of Disabled Persons/ National Council on Disability Affairs in 2012 NEP E. National Youth Commission TOTAL
2012 (NEP) 49,203,355,000
Source: General Appropriations Act 2008-2011 and National Expenditure Program 2012
2008-2010 Distribution of DSWD budget for social welfare and safety net programs CCT TAKES UP THE LARGEST BUDGET ALLOCATION AMONG DSWD PROGRAMS and services. It is the only program whose budget allocation never decreased, compared with five other consistently-funded programs. Assistance to victims of calamities and disasters received a significant increase (50 percent) in 2009 which may be mainly due to the consecutive wrath of typhoons Ondoy and Pepeng, but it generally stayed only in the PhP 48 million-level in subsequent years. Assistance to PWDs and senior citizens likewise received a significant increase in 2011 at PhP 882 million only but only to decrease again to close to its previous PhP 10.7 million level for 2012. This sector has in fact the biggest budget decrease (99 percent) among the six programs from 2008 to 2012. Allocation for protective services for individuals and families in especially
difficult circumstances (EDCs) fluctuated from 2008 to 2012, while support services for community-based clients had modest increases. The budget for KALAHI-CIDSS also fluctuated during this period. Table 37. Budget Increase (Decrease) of Consistently Funded DSWD Programs 2008-2012 (NEP) Budget Item CONSISTENTLY FUNDED Safety Nets Assistance to victims of disasters and natural calamities Protective services for individuals and families in EDCs Ahon Pamilyang Pilipino (CCT) KALAH-CIDSS
2008 ( 000)
2009 ( 000)
2010 % inc/ -dec
2011 % inc/ dec
2012 % inc/ -dec
% inc/ -dec
Social Welfare Assistance to PWDs & SCs for implementation of RA 9994 Provision of Suport Services for Community Centerbased Clients
Source: General Appropriations Act 2008-2011 and National Expenditure Program 2012
Meanwhile budget allocation for “project-based” services have been erratic and most have been funded only once in the 2008-2012 agency budgets. Under safety nets only Tindahan Natin and the Recovery and Reintegration Program for Trafficked Persons received allocations more than once: Tindahan Natin received a fixed amount (PhP 160 million) from 2008 to 2010 while the program for trafficked persons consistently received PhP 25 million in 2011 and in the 2012 NEP. Under social welfare, food subsidy programs similarly received one-time allocations except for DSWD’s Day Care Feeding Program, which received funding from 2008 to 2010. In 2011, CCT’s supplemental feeding component received PhP 2 billion but this was discontinued in the 2012 NEP. Among DSWD’s five infrastructure projects, only the Core Shelter Assistance Project received consecutive funding from 2008 (PhP 125 million) to 2009 (PhP 500 million). The implementation of the Juvenile Justice Act likewise received one-time funding in 2010 (PhP 80 million), while the social pension for indigent senior citizens is programmed in 2012. These changes in DSWD’s budget show that even though its funds ballooned from PhP 6 billion to PhP 49 billion, only the CCT program consistently benefited from the dramatic increase. Other programs enjoyed very minimal increases and even experienced budget decreases in succeeding years.
ABI – DSWD Budget and CCT Allocation for 2008-2012
Table 38. Budget Increase/ Decrease of Other DSWD Programs 2008-2012 (NEP) Budget Item PROJECTBASED Safety Nets Tindahan Natin
2009 In ‘000
In ‘000 160,000
% inc/ -dec 0
% inc/ -dec
IDPs Food for Work
2012 % inc/ -dec
SEAKABAYAN Level II
% inc/ dec
Recovery & Reintegration Program for Trafficked Persons
PAMANA Pillar 2- IDPs Livelihood
Social Welfare Core Shelter Project
Construction for Haven for the Elderly
Upgrading of Haven for Women
Payment of Obligation to NFA
Implementation of Juvenile Justice & Welfare Act (RA 9344)
Construction of Bahay Pag-asa Youth Dev Ctr
Social Pension for Indigent Senior Citizens
PAMANA Pillar 1-IDPs Modified Shelter, ARMM
Compre. Project for Children, Street Families and IPs (Natâ&#x20AC;&#x2122;l Project Monitoring)
Source: General Appropriations Act 2008-2011 and National Expenditure Program 2012
Budgets for CCT vis-Ă -vis other DSWD programs in 2008-2012 NEP Figure 21. CCT vs. Other Programs 2008 GAA
Source: 2008 General Appropriations Act
In 2008, KALAHI-CIDSS-KKB had the largest share (40.7 percent) in the agency budget among eight social service programs while CCT received the fourth largest allocation at PhP 298.5 million. The following year, CCT already took over KALAHI-CIDSS in terms of budget allocation, comprising 55.4 percent (PhP 5 billion) of the whole agency budget. In the same year, KALAHI-CIDSS-KKB received 3.8 percent budget share, and the Malusog na Simula, Yaman ng Bansa program received 19.9 percent of the social service budget. By this time the SEAKABAYAN Level II and the National Household Targeting System replaced the upgrading/construction allocation for Haven for the Elderly and Haven for women.
ABI – DSWD Budget and CCT Allocation for 2008-2012
Figure 22. CCT vs. Other Programs 2009 GAA
Source: 2009 General Appropriations Act
For 2010, three new items were funded: implementation of the Juvenile Justice Act, construction of the Bahay Pag-asa Youth Center, and payment of previous year’s obligation to the National Food Authority (NFA). The CCT 2010 budget doubled at PhP 10 billion while KALAHI-CIDSS-KKB received less than 1 percent.
Figure 23. CCT vs. Other Programs 2010 GAA
Source: 2010 General Appropriations Act
The 2011 agency budget supports 11 social service programs, with CCT getting the lion’s share at 64.2 percent. These include the four programs which the General Appropriations Act (GAA) has consistently supported since 2008 (KALAHI-CIDSS-KKB, Supplemental Feeding, Center-based Support Services, National Household Targeting System) as well as the: 1. Protective services for individuals and families in especially difficult circumstances (families of involuntary disappearances);
2. Assistance to PWDs and elderly; 3. Rice subsidy; 4. Assistance to victims of disasters; 5. Food-for-work for internally displaced persons (IDPs); 6. Recovery and reintegration of trafficked persons The 2010 budget items which did not appear in the current GAA are the implementation of the Juvenile Justice Act, construction of the Bahay Pag-asa Youth Center and payment to previous yearâ&#x20AC;&#x2122;s obligation to NFA. Figure 24. CCT vs. Other Programs 2011 GAA
Source: 2011 General Appropriations Act
The CCT allocation in the 2012 NEP is 91 percent of DSWDâ&#x20AC;&#x2122;s total social development programs budget, or a whopping PhP 39 billion of PhP 41.2 billion. The following programs share in the remaining 9 percent (PhP 4 billion): 1. KALAHI-CIDSS-KKB 2. Center-based support services 3. National Household Targeting System 4. Protective services for individuals and families in especially difficult circumstances (families of involuntary disappearances) 5. Assistance to PWDs and elderly 6. Social pension for indigent senior Filipino citizens 7. SEA-KABAYAN Level I (National Project Monitoring Office) 8. Assistance to victims of disasters 9. Food-for-work for IDPs 10. Monitoring of PAMANA Program (Pillar 1 and 2) 11. Comprehensive project for children, street families and IPs (National Project Monitoring Office) 12. Recovery and reintegration of trafficked persons
ABI â&#x20AC;&#x201C; DSWD Budget and CCT Allocation for 2008-2012
Figure 25. CCT vs. Other Programs 2012 GAA
Sourced from 2012 National Expenditure Program.
Added budget items in the 2012 NEP are: 1. PAMANA Program for IDPs (Pillar 1 and 2) 2. Comprehensive project for children, street families and IPs (National Project Monitoring Office) 3. Social pension for indigent senior Filipino citizens The 2010 item for supplemental feeding and rice subsidy are excluded in the 2012 NEP while allocation for PWDs and senior citizens decreased from PhP 882 million to PhP 11 million. Table 39. 2012 NEP CCT per Region Region Total CCT Region V ARMM Region X Region VIII Region VI Region IX Region VII Region XII Region XI Region IV-B Region XIII - CARAGA Region IV-A Cordillera Administrative Region Region II National Capital Region Region III Region I National Project Monitoring Office
39,311,749,000.00 3,623,680,000.00 3,504,374,000.00 3,029,565,000.00 2,980,641,000.00 2,928,879,000.00 2,832,784,000.00 2,539,533,000.00 2,472,269,000.00 2,055,200,000.00 1,909,218,000.00 1,889,776,000.00 1,547,807,000.00 1,503,572,000.00 917,432,000.00 889,936,000.00 671,033,000.00 636,606,000.00 3,379,444,000.00
132,902,000.00 6,768,000.00 3,165,000.00 4,578,000.00 15,467,000.00 12,485,000.00 2,388,000.00 17,315,000.00 4,530,000.00 4,427,000.00 3,493,000.00 1,658,000.00 4,952,000.00 9,237,000.00 13,467,000.00 4,650,000.00 6,125,000.00 18,025,000.00 172,000.00
Amount 8,559,737,324,373.55 192,654,662,118.83 226,821,425,201.77 298,215,049,435.65 399,741,060,496.15 518,548,530,502.15 521,383,702,509.15 523,940,550,509.15 526,417,349,509.15 528,476,976,509.15 530,389,687,509.15 532,281,121,509.15 533,833,880,509.15 535,346,689,509.15 536,277,588,509.15 537,172,174,509.15 537,849,332,509.15 538,503,963,509.15 541,883,579,509.15
Source: 2012 National Expenditure Program
The top three regions with the largest CCT allocation are Region V, ARMM and Region X while the bottom three regions are the National Capital Region, Region III and Region I.
Issues in the 2008-2012 DSWD Budget Distribution THE DSWD IS MANDATED TO “WORK WITH DIFFERENT ORGANIZATIONS IN implementing projects and services that will alleviate poverty and empower disadvantaged individuals, families and communities for an improved quality of lifev.” Yet, going by the huge budgetary allocations for CCT, also known as the Pantawid Pamilyang Pilipino Program (4Ps), the department seemed to privilege only that section of the poor who are vulnerable to maternal mortality, child mortality and school drop-outs rates. Other poor social sectors which equally need government assistance are provided only minimal support from DSWD. The disparity and injustice are thus glaring: In the 2012 NEP, CCT enjoys 91 percent (PhP 39 billion) of the DSWD budget while all other programs have to split the remaining 9 percent of the budget (PhP 1.7 billion). This imbalance in priority and allocation only undermines the agency’s mandate to support other vulnerable sectors such as PWDs, senior citizens individuals and families in EDCs, and victims of calamities and disasters. The ABI Social Protection Cluster asks why there is no funding for the Juvenile Justice Act in the 2012 budget, as the last funding provided for this was in 2010. It is also gravely concerned about the dramatic budgetary reduction in the programs for PWDs and senior citizens, from a high PhP 882 million in 2011 to PhP 11 million in 2012. The skewed budget distribution also raises questions on what the agency calls complementation programs of CCT. SEA-K in particular has been identified as an important component of the so-called ‘convergence strategy’ of CCT. But data show that SEA-K received funds only once in the last four years – and is not receiving any budgetary allocation in 2012. According to the study entitled ‘Reforming Social Protection Policy: Responding to Global Crisis and Beyond’ (August 2009) by Dr. Rosario Manasan of the Philippine Institute of Development Studies, SEA-K’s funds have been dwindling due to administrative costs and partly due to the program’s zero interest rate charging, thus raising further questions about SEAK’s financial sustainability. On the other hand, the other component of CCT’s complementation strategy is KALAHICIDDS, a community-driven approach to development. While KALAHI-CIDSS may have at best generated localized impact on poverty reduction, it unfortunately has not substantially made a dent in reducing over-all poverty since its implementation in 2003. It is also worth noting that this program has merely added to the country’s public debt since it is being funded by loans from the World Bank amounting to PhP 4.2 billion from 2008 to 2012. Meanwhile, the Millennium Challenge Corporation grant for this program stands at PhP 348 million. The ABI Social Protection Cluster asks why the loan component of the CCT program is not properly reflected in the DSWD budget in the same way with that of the loan component of the KALAHI-CIDSS program. In the DSWD budget within the NEP, the KALAHI-CIDDS budget is well-detailed: it shows total cost of the loan component as well as the amount of government counterpart. Such detailed breakdown is not presented for CCT in the DSWD budget. But the data from the NEP and the Budget of Expenditures and Sources of Financing (BESF) shed light on the matter. In the BESF 2012, it clearly states that the Asian Development Bank lent PhP 2.310 billion and the World Bank lent PhP 3.360 billion -- or a total of PhP 5.670 billion (which is 14.37 percent of the total amount for the CCT. The remaining amount of
ABI – DSWD Budget and CCT Allocation for 2008-2012
PhP33.775 billion which comprises 85.63 percent of the total amount for the CCT is sourced from local revenues and remains the biggest budgetary allocation to a single DSWD program. Finally, there has been no wide-ranging independent assessment of the effects and impact of the 4Ps on poverty reduction and human development in the country, including the organizational and administrative aspects of the program. The public continues to witness the dramatic budget increases for the CCT program but the basis for the program and budgetary expansion remains unclear. The administration which repeatedly refers to the people as its “Boss” should exercise prudence and sound judgment in its planning and programming activities, taking off with providing answers to the public.
Alternative Budget Proposals THE ABI SOCIAL PROTECTION CLUSTER IS CALLING FOR THE IMPLEMENTATION of Presidential Proclamation 240 Declaring the Period from the Year 2003 to the Year 2012 as the Philippine Decade of Persons with Disabilities. It specifies that: “All heads of Departments, Chiefs of Bureaus, Offices, Agencies and Instrumentalities of the National Government, including officials of Local Government, are hereby instructed to implement plans, programs, and activities geared towards the development of persons with disabilities based on the National Plan of Action for the Decade. The funds necessary to carry out the provisions of this Proclamation shall be sourced out by the concerned agencies from their annual appropriation, the amount of which shall not be less than 1 percent of each agency’s total budget for the year.” A policy for PWDs provides basis for DSWD to allocate funds for programs targeting other important sectors. As such, the ABI Social Protection Cluster proposes a 1 percent increase in the agency budget for programs responding to the needs of specific sectors which were neglected in terms budget allocation for the last four years and in the 2012 NEP.vi Here is the detailed proposal: Table 40. Proposed Alternative Budget for Social Protection Budget Item
1. Assistance to victims of disasters and natural calamities 2. Assistance to PWDs & SCs for implementation of RA 9994 3. Recovery and Reintegration of Trafficked Persons 4. Implementation of Juvenile Justice Act (RA9344) 5. PAMANA Program for IDPsLivelihood 6. Comprehensive Project for Street Families and IPs
Variance (ABI Proposal less NEP)
The ABI Social Protection Cluster reiterates the call of Social Watch Philippines for a comprehensive program performance audit of the CCT program to determine whether and to what extent the program has met its objectives. Part of the review should gauge the administrative capacity of the DSWD to handle such a program. An independent body should undertake the assessment and must include members from citizens’ movements. Program expansion and movement on the budgetary allocation for CCT program should depend on the results of such an assessment. Providing the people with more information and getting them involved in the processes of an important program like CCT would, in the long run, help generate the public support it needs.
Highlights of the 2009 Official Poverty Statistics. NSCB. February 2011.
Janice M. Cave. P-Noy gov't sees CCT program, jobs creation as keys to poverty reduction, Iloilo Hub, 06 July 2011 from http://www.iloilohub.com/news-headlines/item/322-p-noy-govt-sees-cct-program-jobs-creation-as-keys-to-povertyreduction.html iii
National Economic Development Authority (NEDA) SDC Resolution No. 1 of 2007 defines social welfare programs as preventive and developmental interventions that are intended to support the minimum requirements of the poor, particular the poorest of the poor. These programs usually consist of direct assistance in the form of cash or in-kind transfers to the poorest and marginalized groups, as well as social services including family and community support, alternative care and referral services. They include school feeding programs, conditional cash transfers.
Social safety nets are stop gap measures or urgent mechanisms designed to address the effects of economic shocks, disasters and calamities on specific vulnerable sectors. These are measures that specifically target affected groups with the specific objective of providing relief and transition. Examples are provision of jobs in labor intensive public works schemes (also called “workfare” programs), micro-finance programs, livelihood/ self-employment programs, social funds and social assistance to specific vulnerable groups. iv
2008-2011 GAA, DSWD and 2012 NEP, DSWD.
DSWD Mandate: To provide assistance to local government units, non-government organizations, other national government agencies, people’s organizations, and other members of civil society in effectively implementing programs, projects and services that will alleviate poverty and empower disadvantaged individuals, families and communities for an improved quality of life.
The increase in budget for PWDs will significantly contribute to the attainment of Articles 19 and 28 of the UN CRPD that the Philippine government ratified in 2008: Article 19: Living independently and being included in the community …. (a) Persons with disabilities have the opportunity to choose their place of residence and where and with whom they live on an equal basis with others and are not obliged to live in a particular living arrangement;
ABI â&#x20AC;&#x201C; DSWD Budget and CCT Allocation for 2008-2012
(b) Persons with disabilities have access to a range of in-home, residential and other community support services, including personal assistance necessary to support living and inclusion in the community, and to prevent isolation or segregation from the community; (c) Community services and facilities for the general population are available on an equal basis to persons with disabilities and are responsive to their needs. (b) Persons with disabilities have access to a range of in-home, residential and other community support services, including personal assistance necessary to support living and inclusion in the community, and to prevent isolation or segregation from the community; Article 28: Adequate standard of living and social protection 1. States Parties recognize the right of persons with disabilities to an adequate standard of living for themselves and their families, including adequate food, clothing and housing, and to the continuous improvement of living conditions, and shall take appropriate steps to safeguard and promote the realization of this right without discrimination on the basis of disability. 2. States Parties recognize the right of persons with disabilities to social protection and to the enjoyment of that right without discrimination on the basis of disability, and shall take appropriate steps to safeguard and promote the realization of this right, including measures: (a) To ensure equal access by persons with disabilities to clean water services, and to ensure access to appropriate and affordable services, devices and other assistance for disability-related needs; (b) To ensure access by persons with disabilities, in particular women and girls with disabilities and older persons with disabilities, to social protection programmes and poverty reduction programmes; (c) To ensure access by persons with disabilities and their families living in situations of poverty to assistance from the State with disability-related expenses, including adequate training, counselling, financial assistance and respite care; (d) To ensure access by persons with disabilities to public housing programmes; (e) To ensure equal access by persons with disabilities to retirement benefits and programmes.
Understanding and Upholding Disability Rights DISABILITY IS A COMPLEX CONCEPT THAT CONTINUES TO EVOLVE. IT NO LONGER refers to the traditional personal condition of deficit -- â&#x20AC;&#x153;being disabledâ&#x20AC;? -- which requires society to either fix through medicine or rehabilitation, or provide care for through charity and welfare programs. According to these perspectives, the lives of Persons with Disabilities (PWDs) are to be handed over to professionals who control decisions such as where they will live or go to school, how they will interact with each other, or what support they will receive. The shift to a social model of disability views the cause of some people being unable to attend school, get a job, or participate in social life, as a consequence of their interaction with attitudes or environments in a society which does not accommodate their differences and thus, limits their participation. With this progressive view, disability is essentially a pathology of society and not of the individual. There is nothing wrong with the person â&#x20AC;&#x201C; they are not sick, or needing to be cured of their condition. They however need to have full access to society, and have the right to live in equality with all others. As in many countries, PWDs in the Philippines are among the poorest of the poor. They remain the most marginalized and vulnerable sector in the country. In fact, they are so multiplymarginalized that they are not even frequently visible at all in advocacy efforts, or global as well as local agenda. The Philippine Coalition on the United Nations Convention on the Rights of Persons with Disabilities includes representatives from nine different constituencies: the visually-impaired, the deaf, deaf-blind, speech-impaired, and mobility-challenged; persons living with intellectual disability, psychosocial disability, extensive/severe disability, and chronic illness. Based on the Department of Health (DOH) estimates, 10 percent of Filipinos have a certain type of disability. If one or two other members of the family are negatively affected through the presence of disability in the household, this would mean that at least 30 percent of our population would not be as socio-economically productive as the rest of its citizenry. Thus, this has deeply serious implications on the global action to end poverty and foster sustainable development. The right to development is an inalienable right of which every human being and all peoples are entitled to participate in, contribute to, and enjoy economic, social, cultural and political development. To achieve the Millennium Development Goals (MDGs), the right to development means all human rights and fundamental freedoms are to be fully realized. These should then be the foundation to make development a reality for all.
ABI – Persons with Disabilities
To date, the Philippine government has fallen short in the implementation of different existing laws including international commitments to the World Programme of Action concerning Disabled Persons, the Standard Rules on the Equalization of Opportunities for Persons with Disabilities in influencing the promotion, formulation and evaluation of the policies, plans, programs and actions at the national, regional and local levels. The government also has the legal duty and obligation to fulfill its commitment when the Philippines became party to the Convention on the Rights of Persons with Disabilities in 2008. Pacta sunt servanda (Agreements must be kept) – the rule that agreements and stipulations, especially those contained in treaties, must be observed. The government should no longer delay its fulfillment of duties and obligations to PWDs. It is difficult for PWDs to live independently when society believes that it is largely, if not exclusively, the responsibility of the family to take care of their members living with disability. Moreover, because of scarce resources, the government frequently evades, and transfers this responsibility to volunteers and the rest of civil society. These inadequacies are reflected even in policies such as the Magna Carta for Persons with Disability (Republic Act 7277) and the Department of Social Welfare and Development Administrative Order No. 59 (Implementation of the Auxiliary Social Services for Persons with Disabilities). These are policies which in fact, even hinder the independence and full participation of PWDs in the community. There is a clear and urgent need for the Philippine government to undergo a paradigm shift to be aligned to the Convention on the Rights of Persons with Disabilities so that rights may be fully enjoyed by all. Aside from this philosophical and legal foundation that empowers PWDs, the State needs to formulate and implement time-bound and concrete measures that eliminate barriers and any form of discrimination. It needs to ensure that all PWDs have equal access to the legal and judicial systems, health care, livelihood and employment, and all other aspects of their lives. Community support services must be institutionalized so that PWDs can attain a quality of independent living on equal basis with all other Filipinos. Because of the multiple marginalization that PWDs have to face all through their lives, the State needs to employ affirmative action to address their various needs just so that they can live in equality and dignity as all other Filipinos. Specific programs or interventions for disability sector a. Support for livelihood/employment – Capability training for the visually-impaired in the massage industry b. Independent living – Systematizing the provision of personal assistants to Persons with Extensive Disabilities c. Maximum attainment of mental health – Training in peer counseling among PWDs d. Access to justice – Institutionalizing sign language interpretation in all legal proceedings to particularly assist deaf women and children victims of sexual violence
Alternative Budget Proposals Table 41. Summary of Alternative Budget Proposals â&#x20AC;&#x201C; PWDs Budget Item
DOLE Conduct of training, livelihood enterprise development and other capacity building programs JUDICIARY Adjudication of cases
Variance (ABI Proposal less NEP)
(Previously charged to savings of trial courts)
(Adjudication of cases no longer specified in Program/ project Appropriation) 68,766,000 (MOOE)
DOH 39, 595,000 81,006,000 Mental health promotion; prevention of psychosocial disability DSWD Support Services and Technical 882,185,000 11,185,000 19,375,297.73 Assistance to Intermediaries* TOTAL 693,922,000 * The proposed amount of this budget item is already included in the proposal on social protection in the DSWD budget.
1. DOLE ď&#x201A;ˇ
Capacity building through skills enhancement for the 32 member organizations of the Philippine Chamber of Massage Industry for Visually Impaired: PhP 135,000 per Region x 16 regions: TOTAL
Rationale: For more than half a century, massage has been the primary means of livelihood of Filipinos with visual impairments, both the blind and the low vision. At present, more than 80 percent of the visually impaired who are working are in the massage service profession. In the last decade or so, enterprising visually impaired, including those who are deprived by government of even a high school education were able to get together and gathered enough funds for investments and set up massage clinics that are now being invited by dozens of malls not only in Metro Manila but in many parts of the country. A good number of these masseurs have even been hired by tourist destinations and luxury liners both here and abroad.1 Yet because of poverty and marginalization, the majority of Filipinos with visual impairment are unable to enter the mainstream of the formal education system. This necessitates continuing capacity building through other avenues of learning. 1
Statement from the Philippine Chamber of Massage Industry of the Visually Impaired (PCMIVI). http://groups.yahoo.com/group/napc_pwds/message/1202
ABI – Persons with Disabilities
The Philippine Chamber of Massage Industry of the Visually Impaired (PCMIVI) is comprised of over 2,000 Filipinos with visual impairment throughout the country. These efforts to organize in the wellness industry are pioneering in the region. They are founded on the principles of self-help and self-reliance embodied in RA 7277 as well as the UN Convention on the Rights of Persons with Disabilities which recognize the significant role and contribution that PWDs can give to society. 2. Judiciary
Compensation of sign language interpreters; transportation and other related expenses (see Supreme Court Memo 59-2004, 104-2007)
Administration of Visual Communication Assessment for the Deaf (VCAD) as prerequisite for assigning and matching interpreters with Deaf clients (basis in Art. 13a, UN CRPD)
=> Interpreter compensation: 738 court appearances x PhP 600/ hr 2 per appearance = PhP 442,800 => Interpreting related expense (inter-island travel, etc): 738 appearances x PhP 500/appearance = PhP 369,000+ PhP 811,800 for the four regions (with highest number of cases: NCR, IV, VII, XI) => Visual Communication Assessment for the Deaf: PhP 800 per deaf client 3 x 100 cases = PhP 80,000+ => Interpreting compensation and other related expenses: Additional PhP 1 million for cases in 2012 (PhP 1 million for previous cases in 2011) TOTAL
Rationale: Supreme Court Memorandum Order 59-2004 and Circular 104-2007 state that sign language interpreting-related expenses are to be charged toward “the savings in appropriations for the Lower Courts”. However Special Provisions applicable to the Judiciary in the General Appropriations Act (http://www.dbm.gov.ph/GAA2011/JUDICIARY/JUD.pdf) describe particular use of Judiciary “savings” as follows: “3. Use of Savings. Subject to the approval of the Chief Justice of the Supreme Court in accordance with Section 25 (5), Article VI of the Constitution, the Presiding Justices of the Sandiganbayan, Court of Appeals , and Court of Tax Appeals are authorized to use savings from any item of their respective appropriations for the following purposes: (i) maintenance, repair, and improvement of their compounds and other facilities; (ii) payment of adjusted pension rates 2
Philippine National Association for Sign Language Interpreters. Proposal. Communication to the Office of the Court Administrator, June 2011. 3 Philippine Federation of the Deaf. Proposal. Communication to the Office of the Court Administrator, June 2011.
to retired Justices entitled thereto pursuant to Section 3-A of R.A. No. 910, as amended by R.A. No. 1797, and Supreme Court (SC) Administrative Matter (A.M.) No. 91-8-225-C.A.; (iii) extraordinary expenses, transportation and representation allowances and fringe benefits for Justices, Clerks of Court, and other court officials and personnel; (iv) necessary expenses for the employment of temporary employees for judicial administration; and (v) compensation for attorneys-de-officio.”
Though it is noted that compensation, transportation and other related expenses to sign language interpreting may be charged to (iv) and (iii), respectively, there are clearly numerous competing expenditures for these funds, including those for maintenance and repair of courts, as well as the needs of judges and lawyers. Thus it is likely that these shall be given priority over the needs for sign language interpreting in individual cases. Proposing specifically to appropriate funds for sign language interpreting and assessment of deaf clients for case trials ensures that such expenditures shall be supported and not be at the mercy of left-over, highly variable “savings” of appropriations of the Lower Courts. Furthermore, it places accessibility of deaf parties / witnesses in the adjudication of their cases as institutionally imperative. 3. DSWD Rate of PhP 75.74 x 105,090 hours of assistance x 14 members of Life Haven TOTAL
PhP 8,190,297.734 .
Rationale: It is the policy of the State to promote a just and dynamic social order that will ensure the prosperity and independence of the nation and free the people from poverty through policies that provide adequate social services, promote full employment, a rising standard of living, and an improved quality of life for all. The Philippines issued a statement on July 31, 2002 assuring the international community that the country will recognize the protection and promotion of the rights and dignity of persons with disabilities. The Philippines was the main sponsor of resolution 56/115 on the “Implementation of the World Programme of Action Concerning Disabled Persons: Towards a society for all in the 21st century.” The Philippines ratified the United Nations Convention on the Rights of Persons with Disabilities on April 15, 2008 reaffirming that all persons with disabilities must enjoy all human rights and fundamental freedoms. One of the key elements that can be found on both of the documents is the development and supply of support services in the community which includes personal assistance services. Personal assistance, for many persons with extensive disabilities, is the first most important "aid" for independent living which enables freedom and a way out of the position of ‘cared-for persons’. It is the vital prerequisite for realizing the exercise of equal opportunities, selfdetermination and, consequently, independent living of persons with extensive disabilities. Persons with extensive disabilities require many specialized support in order to participate in the society. This specialized support includes special assistive devices, personal assistance, transportation and many others. Because social services are either not existing or very 4
The proposed amount of this budget item is already included in the proposal on social protection in the DSWD budget
ABI â&#x20AC;&#x201C; Persons with Disabilities
limited, persons with extensive disabilities are even more marginalized because there are no appropriate support for their inclusion and participation in the community. Presently, Life Haven Inc. is providing personal assistance service to eight persons with extensive disabilities in Valenzuela. As of June 15, 2011, we have provided 4,828 hours of assistance service to persons with disabilities who require assistance to accomplish their personal daily tasks and as well as social and work-related tasks. The funds to provide this service came from Toyota Foundation (Japan). Unfortunately, the funds to support this service will end on October 2011. Now that the funding from foreign donors will end on October 2011, we look forward to the support of the government. The government should fulfill their commitment by ensuring that the present assistance users are ensured that they will not lose their right to assistance service. 4. DOH Regional Peer Counseling Workshops for PWDs => PhP 180,000 for 4-day workshop x 17 regions x 4 workshops per region TOTAL
Rationale: Health has always been appreciated as not having any infection or disease. The concern of the DOH when it comes to the sector of persons with disabilities has always been prevention, early detection, prevention of complications and rehabilitation. All of these are important and, if 100 percent successful, will make such sector a thing of the past. Unfortunately, this would mean all of us are already in heaven. An important aspect of the life of a person with disability (and of the family) unintentionally neglected is the status of the mental health. The traditional counseling has many limitations. Peer counseling is a tool that has been proven to be effective in bringing back oneâ&#x20AC;&#x2122;s self confidence and maintaining a sound mental health. A very big percentage of persons with disabilities, which negatively rubs off to family members, suffer from certain degree of depression. This lowers the productivity of anyone affected. Based on the DOH estimate 10 percent of Filipinos have a certain type of disability. If another two members of the family are negatively affected this would mean that at least 30 percent of our population would not be as productive. This can be considered as the economic/practical aspect of the situation. Peer counseling requires that the counselors are persons with disabilities. This is the beautiful thing about peer counseling, both service provider and service users are PWDs. The Right to Health also mentioned mental health. Livelihood trainings, active participation of PWDs and other forms of empowerment would fail miserably if the subject of which have no zest for life. Being a newer methodology, it is not surprising that this idea would not readily be accepted. Counseling is usually provided by the elderly, religious leaders and professionals considered as experts. When it comes to life of a person with disability, we believe those who are living that life and those who are witnessing it day in day out are the real experts. The way we see it, the biggest challenge is how to convince the authority that this program is doable and the best partner for this is the sector that would greatly benefit from the service.
Philippine Coalition on the U.N. Convention on the Rights of Persons with Disabilities ALYANSA NG MAY KAPANSANANG PINOY AUTISM SOCIETY PHILIPPINES GOVERNMENT UNION FOR DISABLED EMPLOYEES KATIPUNAN NG MGA MAYKAPANSANAN SA PILIPINAS LAS PIÑAS FEDERATION OF PERSONS WITH DISABILITIES LEONARD CHESHIRE DISABILITY PHILIPPINES LIFE HAVEN NEW VOIS ASSOCIATION NOVA FOUNDATION PARENTS ASSOCIATION OF VISUALLY IMPAIRED CHILDREN PHILIPPINE ASSOCIATION OF CHILDREN WITH LEARNING AND DEVELOPMENTAL DISABILITIES PHILIPPINE CHAMBER FOR MASSAGE INDUSTRY FOR VISUALLY IMPAIRED PHILIPPINE DEAF RESOURCE CENTER PHILIPPINE FEDERATION OF THE DEAF PUNLAKA QUEZON CITY FEDERATION OF PERSONS WITH DISABILITIES TAHANANG WALANG HAGDANAN WOMEN WITH DISABILITIES LEAP TO SOCIAL AND ECONOMIC PROGRESS Secretariat c/o KAMPI office 65 Mindanao Ave, Quezon City Tel/fax 02.453.0979 firstname.lastname@example.org
Table 42. Summary of Proposed Increases in the FY 2012 National Budget Details
Amount (in PhP)
Environment Health Social Protection Persons With Disabilities
5,361,102,000.00 38,640,288,630.00 2,500,875,300.00 16,480,000.00 -------------------------
Table 43. FY 2012 Budget Lump-sums and Other Contestable Expenditure Items Agency (Attached)
Item A.III.a.11.a A.III.a.12.a A.III.a.16.a
Prog/Proj National Rice Program (OSEC) National Corn Program (OSEC) National High Volume Commercial Crops (OSEC) Market Oriented Programs including Trading Centers (OSEC) National Livestock Program (OSEC)
Repair/Rehabilitation and Construction of Farm to Market Roads in the Designated Key Production Areas
Locally-funded projects - National Irrigation Administration
DA - Osec
Amount 798,062,000 118,710,000 239,908,000
P/M/C M&C M&C M&C
Issues and Proposals for Rationalizing These allocations are allocated under the DA Secretary, over and on top of the regional allocations for these respective programs. The amounts herein are higher than any allocation for any specific region. There is no sense for the OSEC to be receiving these huge amounts when the regions are already provided for. Proposal to allocate only P2.5 Billion. In the absence of a Comprehensive National Land Use and Water Policy that will protect whatever infrastructure projects from conversion., ABI AGRI does not support an increase of the Farm to Market Road budget Special provision provides that P24.765 Billion appropriated under B.I.a and B.II.i shall be released directly to the NIA implementing units and shall be used directly and exclusively for the restoration, rehabilitation and construction of irrigation projects. But previous years revealed substantial budget for irrigation but little improvement
ABI â&#x20AC;&#x201C; Sources of Financing
Foreign-assisted projects - National Irrigation Administration
Public-Private Partnership Strategic Support Fund
DepEd Osec B.I.c
Department of Education Computerization Program School-based Management (SBM) Installation and Support Accreditation Program for Public School Adopt-A-School Program
on productivity. In addition, COA audit findings point to NIAâ&#x20AC;&#x2122;s failure to ascertain and validate 93% of its assets (including irrigation canals and laterals) amounting to P65 Billion and lacks reports/validation of its ongoing irrigation projects amounting to more than 40 Billion at the time of its 2009 audit held in 2010. It is proposed to cut the irrigation budget to P20 Billion until an audit of the first three years (2009-2011) of irrigation budget/projects is made available. The same amount was appropriated under the 2011 GAA but has yet to be implemented and the benefits have yet to be reaped. There is poor utilization rate by DA so far. additional appropriations should only be made once the 2011 PPP has proven to be effective. These projects should be carefully evaluated as to the urgency and necessity considering that there are crucial regular programs in the DepEd that are under-funded such as the Alternative Learning System, Medical and Services and Training for Teachers, MOOE for schools, and others identified by the ABI. Lacks clear guidelines as to how the program will be carried out, particularly the distribution of the allocation across regions, divisions and schools.
Confidenti al and Intelligenc e Expenses
Lump-sum for the Requirement of Basic Educational Facilities
OP DENR DOF
600,000,000 15,000,000 15,500,000
M M M
Other Executive Offices 68,600,000
Large Taxpayers Building Construction
Equity for the modernization of the twenty-five (25) Regional Hospitals under the PublicPrivate Partnership (PPP) framework
Assistance to Central Luzon Drug Rehabilitation Center
Enhancing LGU Capacity on Climate Change Adaptation and Disaster Risk Management Framework
Special provision on the P5 billion allotment for amortization payments for PPP program only provides who will issue guidelines (DepEd, DOF, NEDA and DBM) but it is silent as to how the allocation will be distributed (at least identification of priority areas for distribution) or aligning the same in the special provision on educational facilities. Without general guidelines, there is danger of directing funds or encouraging PPP project to areas that do not need immediate attention as far as facilities are concerned. These funds should be allocated to gatherers of intelligence, ex., DND, PNP, NBI, since they have the capacity and expertise in intelligence gathering which can be tapped by other agencies. There should be prudence in allocating intelligence funds to agencies as these are highly susceptible to abuse and difficult to account for. There are no definition and guidelines for this locally-funded project. Special provisions do not specify priority areas. Absent such general guidelines, there is danger of directing funds or encouraging PPP project to areas that do not need immediate attention as far as facilities are concerned. CLDRC is an institution owned by the Sagip Bie Foundation, a non-government organization. Budget laws prohibit the appropriation of public funds to private entities; Congress should therefore look into the legality and wisdom of for this. REALIGN. Item III.c's special provision includes the use of funds for disaster management. B.I.b's purpose overlaps with the Performance Management Fund facility, which actually has
ABI â&#x20AC;&#x201C; Sources of Financing
NEDA PPP Center
Local Governance Performance Management Program Performance-Based Challenge Fund for Local Government Units
Civil Society Organization/People's Participation Partnership Program
Foreign-assisted projects Public-Private Partnership Capacity Building Project Technical assistance to implementing agencies (IAs), GOCCs and local government units (LGUs) in PublicPrivate Project Development
Public-Private Partnership Strategic Support Fund 3,000,000,0 00
greater funding support. B.I.b can be evaluated for possible reallocation to more needed programs.
There is a need to provide details of what this project is all about and more importantly, a justification of the amount being proposed. CSOs are generally voluntary in nature and would welcome opportunities for participation in governance as art of their mission and without compensation. On what will this amount be used for? Special provision provides that P8.6 billion will be allocated as support fund for PPP program, particularly for the conduct of feasibility studies, and engagement of legal, financial, and such other advisers needed to develop said projects. It is suggested that such allocations be transferred to NEDA since it has the personnel with the necessary expertise in conducting such studies. There are no specifications on where funds will be allocated.
There might be some overlapping functions as far as the two provisions are concerned. Recommend to clearly delineate purposes of each fund and the responsibilities of the respective agencies.
The P5 Billion PPP allocation for 2011 budget is not yet utilized. Also, this P3 Bn is prone to misuse as the special provision states that this amount can be used for "the conduct of feasibility studies and engagment of legal, financial and other advisers".
Contingen cy Fund
EGovernme nt Fund
Budgetary Support to Governme nt Corporatio ns
For major information and communication technology projects
National Irrigation Administration
Propose to allocate P5 Billion which is the 2011 level because there are already allocations for Quick Response Fund in the respective budgets for agencies who are usually the recipients of the Calamity Fund (i.e., DSWD, DPWH, DND-OSEC, DNDOCD) for a total of P2 Billion. Special provision allows Presidential travel expenses to be charged to this fund although there is already such a budget under OP in the amount of P224.686 Million. Also, considering that there budgetary allocations for OP, Calamity Fund, Quick Response Funds in various departments and the prerogative of the President to realign savings, the President has more than enough appropriations available for contingencies. The SPF does not provide an itemized listing of projects, how each would cost, their specific outputs and what agency/department will benefit from the same. The special provision only states that the CICT will provide guidelines for the release of funds. However, this agency does not even have a separate budget in the NEP. For transparency and accountability, pending such submission of proposed projects, it is recommended that the amount be re-aligned to other critical projects and programs proposed by ABI. Proposal to limit this allocation to P750 Million. Based on 5% admin/management fee (COA), 20 B worth of irrigation equals to 1 B management fee . But even then, experience reveals that not all irrigation projects are implemented in the same year, which explains ABIâ&#x20AC;&#x2122;s proposal to lower the management fee for 2012. COA audit revealed that NIA should only be getting management fee for implemented projects and not the original targeted budget
ABI â&#x20AC;&#x201C; Sources of Financing
Unprogra mmed Funds A.7
Support for Infrastructure Projects and Social Programs
Disaster Risk Reduction and Management
No special povision on the use of this fund, particularly the recipients and priority areas of distribution. The special provision is not clear as to what "disaster risk reduction and management activities" are, i.e., if used for rehabilitation, construction or reconstruction, evacuation of displaced households, etc. Moreover, it does not specify the concerned agencies that will utilize or implement this fund.
PART 3: Analysis of the Public-Private Partnership Program
ADDRESSING GAPS IN INFRASTRUCTURE REQUIRES GOVERNMENT TO STEP UP the game and to veer away from the business-as-usual approach in order to aggressively attract investors. To do so, President Benigno Aquino's plan is to focus on private sector reliance. The government will tap private entities through public-private partnership (PPP) to finance, construct, operate, maintain and rehabilitate major infrastructure in its so-called "high priority" areas such as transportation, power and water. Literature on PPP argues that privatization of key infrastructure assets would yield maximum efficiency, taking into account how the private sector is said to be better equipped in terms of financial capability, technical expertise and manpower. In other words, PPP holds so much promise in terms of resource optimization, especially in light of the need for fiscal consolidation. The administration's centerpiece program is not entirely new, but President Aquino's brand of good governance makes it bankable -- or so it is at the outset. Current governance reforms helped provide much tailwind to the PPP program, resulting in lifts as far as investment climate is concerned. A caution thought is that the program has much more than what meets the eye, thereby needing further scrutiny. What is PPP? PPP IS ESSENTIALLY AN AGREEMENT BETWEEN THE GOVERNMENT (ANY AGENCY, including local government units) and a private entity to provide wide-scale services such as infrastructure meant for public consumption. Partnerships vary in term and degree and involve collaborative efforts between the parties, including sharing of resources and costs. PPP projects take different forms, with the most common falling under Service Contracts, Management Contracts, Lease Contracts, Concessions and Build-Operate-Transfer (BOT)1. In the PPP program which the Aquino administration adopted, projects would be implemented under the BOT scheme, with the Republic Act 7718 or the BOT Law and its implementing rules and regulations providing the legal frame. Executive Order No. 8, issued in September 2010, orders the transfer and supervision of the BOT Center from the Department of Trade and Industry (DTI) to the National Economic Development Authority (NEDA), and renames it as the PPP Center. DTI, however, would retain the promotional and marketing functions of the PPP Center. Other relevant laws linked to PPP are the Guidelines and Procedures for entering into Joint Venture (JV) Agreements between Government and Private Entities, and RA 9184 or the General Procurement Reform Act. 1
See ANNEX E for definitions and summary of features of the different forms of PPP. The article was written by MARIANNE JOY VITAL for Social Watch Philippines based on the collective analysis, discussions and recommendations of the Alternative Budget Initiative network.
ABI – Public-Private Partnership Program
The PPP Center as the overhead agency is tasked to assist project implementers (i.e. government agencies) through advisory services, technical assistance and capacity development; monitor projects; and recommend policies and guidelines. It is likewise tasked to administer a revolving fund called Project Development and Monitoring Facility worth PhP 300 million for undertaking pre-feasibility and feasibility studies. Action Plans: Philippine Development Plan 2010-2016 and Priority List THE PPP CENTER HAS IDENTIFIED TOP PROJECTS FOR ROLL OUT IN FY 2011, AND up until the recent release of the Philippine Development Plan (PDP) 2010-2016, has been the point agency as regards plans on the administration’s banner program. The government identified 10 PPP projects, all appearing to be under the transportation sector and three of which are given higher priority and coded as the first batch for roll-out this year together with an unsolicited proposal, the NLEX-SLEX Connector. These projects, the PPP Center explained, were selected based on their readiness, preparation, responsiveness to the sector's needs and huge potential of implementability. The projects for 2011 were also required to have their respective feasibility studies completed within 2010 to 2011 and reconfigured for PPP. (See Annex D for the summary of project profiles of the first batch as well as the remaining priority projects.) Prioritization of projects like extensive public transportation, strategically placed roads, and newly built and improved airports is expected to bring long-term and massive benefits for the Philippine economy, as these would help boost the tourism industry, relieve some production and transaction costs of firms, and encourage more investments. However, the time-frame for such ‘long-run’ benefits to materialize remains in question. At best, the government can bank on the short-run gains such as increases in value-added in the construction industry, capital formation and private consumption arising from the creation of new jobs that would prop up the domestic economy. What about the other sectors? TRANSPORTATION IS ONLY ONE OF THE SUB-SECTORS LACKING IN INFRASTRUCTURE investments. Other sub-sectors in the same situation, according to PDP, are water, sanitation, irrigation, flood and drainage management, and energy. Government admits that these areas still have very low investments despite their crucial roles in expanding economic output and in buffering adverse shocks from random and unpredictable events such as natural disasters. Proposals however have yet to materialize – at least for the moment. The administration plans to complete more projects under PPP, including 35 in its medium-term plan, 34 more which are now being conceptualized, and another 28 Private Initiative Projects in the energy sector. Some drawbacks THE INTENTIONS OF PPP ARE UNDOUBTEDLY IMPRESSIVE, CONSIDERING THE government’s persisting limitations in filling gaps and the country’s lack of infrastructure
support. The private sector is always deemed more efficient in implementing projects, with an incentive structure that is conducive for meritorious performance and a relatively less bureaucratic system compared to that of the government. But this also makes the private sector reactive only to certain incentives to accept opportunities from government. Fundamental theories assert that as profit maximizers (i.e. those seeking to gain the highest possible profits in order to thrive), investors would naturally look for incentives that would assure the fulfilment of conditions such as long-term profits and minimal risks. This explains why PPP in the previous administrations failed. According to an Asian Development Bank report on the private sector assessment (Paderanga 2010), the policy environment of the country, characterized by unclear policy and regulatory frameworks, cumbersome and bureaucratic processes that lack transparency, competition and preparation, and high cost of doing businesses, has effectively discouraged the private sector from engaging in PPP. While the new administration is putting in place governance reforms to address these issues, apprehensions persist especially with delays in the program implementation. Moreover, the policy frame of PPP has been found wanting in review and improvement. There should be clear guidelines as to who should be involved in processes such as identification of prospective projects for partnership and approval. The rules should also be flexible in responding to the needs of different economic sectors. Case in point is the agriculture sector, which by its very nature, may have no need for large-scale operations such as that of transportation. There should be a clear stance on projects costing under PhP 300 million for national projects and PhP 20 million for local projects under the BOT Law. Even with efforts to fast-track the process, projects are put at risk because of weak and flawed rules and regulations. The public may even shoulder the risks, taking into account the PPP arrangements which seem to heavily favor investors. A salient case is the state guarantee in the form of investment return, access to loans supported by sovereign guarantees, and regulatory risk insurance to help entice investors. With this in place, taxpayers would eventually shoulder burdens arising from failed projects as the State would guarantee losses using national coffers. This may even exacerbate debt levels, plunging the country deeper into problems â&#x20AC;&#x201C; an apprehension based on experiences with previous PPP initiatives such as privatization of the power industry. IBON Foundation, an independent think tank, has earlier opposed the regulatory risk insurance because not only will it undermine the courts but will also disregard possible disadvantages and harmful effects arising from these arrangements including enormous increases in fees/user charges, environmental degradation, health risks and even physical displacement. In sum, many questions on PPP remain unanswered and loopholes open despite the administrationâ&#x20AC;&#x2122;s efforts to clear up processes. Previous studies on PPP in fact have warned of the difficulties of rolling out such schemes because some prerequisites need to be strictly met, particularly the legal framework and the capability of the government to handle procedures, ensure transparency, accountability and competition in the process. The country indeed needs all the support to achieve development goals and put the growth trend up to 7 to 8 percent as the new administration targets, but proper caution is also key because both the present and the future are at stake.
ABI – Public-Private Partnership Program
SOURCES: Asian Development Bank  Public-Private Partnership (PPP) Handbook. Accessed on 09 August 2011. http://www.adb.org/Documents/Handbooks/Public-Private-Partnership/default.asp Department of Transportation and Communication. "Accomplishment Report, June 2010 to July 2011". Accessed on 09 August 2011. http://www.dotc.gov.ph/index.php?option=com_k2&view=item&id=159:accomplishment-report-july-2010-june2011&Itemid=97 Public-Private Partnership Center. ________ "PPP Projects for Roll Out in 2011". http://ppp.gov.ph/ppp-projects/ppp-projects-for-2011-rollout/ ________ "Public-Private Partnership Programs and Projects". http://ppp.gov.ph/wpcontent/uploads/2011/06/PPP.Brochure_April2011.pdf ________ “Other Programs and Projects Medium-Term”. <http://ppp.gov.ph/wp-content/uploads/2011/03/Other-PPPProjects_Medium-term.pdf> Ibon Foundation. "PPP: More public debt, less gov’t responsibility". Accessed on 09 August 2011. http://www.ibon.org/ibon_features.php?id=119 Various articles: abs-cbnnews.com http://www.abs-cbnnews.com/business/07/27/11/govt-earmarks-p22-b-support-ppp-projects http://www.abs-cbnnews.com/business/07/13/11/purisima-says-ppp-track-despite-delays-asks-positive-outlook http://www.abs-cbnnews.com/business/07/04/11/3-ppps-still-awaiting-neda-board-ok http://www.abs-cbnnews.com/business/06/28/11/roxas-confirms-bidding-first-ppp-project-postponed Business Mirror http://www.businessmirror.com.ph/home/top-news/14215-malaysians-eye-daang-hari-slex-bid http://www.businessmirror.com.ph/home/opinion/14540-ppp-program-should-not-stop-msme-projectsBusinessWorld http://www.bworldonline.com/content.php?section=TopStory&title=--PPP-projects-to-be-bid-out-by-yearend?&id=35577 http://www.bworldonline.com/content.php?section=TopStory&title=More-time-needed-for-PPP-rollout&id=35196 http://www.bworldonline.com/content.php?section=Economy&title=Business-groups-await-result-of-LRT-MRT-projectreview&id=34508 http://www.bworldonline.com/content.php?section=TopStory&title=PPP-auction-halted&id=34458 http://www.bworldonline.com/content.php?section=Opinion&title=What-if-PPP-projects-don%E2%80%99t-take-off%3F&id=34219 http://bworld.com.ph/content.php?section=TopStory&title=Gov%E2%80%99t-adds-to-PPP-project-cost%2C-biddingstipulation&id=30703 Philppine Daily Inquirer http://business.inquirer.net/9019/citi-ppp-still-key-to-gov%E2%80%99t-investment-theme http://business.inquirer.net/8631/first-pacific-unit-pushes-1-1b-mrt-bid http://business.inquirer.net/8627/investors-await-word-on-ppp-fiscal-policy http://business.inquirer.net/money/topstories/view/20110320-326662/Extend-PPP-risk-cover-to-acts-of-Palace http://opinion.inquirer.net/inquireropinion/columns/view/20101123-304751/The-ABCs-of-PPPs Manila Bulletin http://www.mb.com.ph/articles/327393/israel-investors-interested-in-ppp Philippine Star http://www.philstar.com/Article.aspx?articleId=702999&publicationSubCategoryId=66 The Daily Tribune http://www.tribuneonline.org/headlines/20110721hed2.html