Aquino signs 2011 national budget into law

(Source: http://tinyurl.com/2ebxjva)

President Benigno S. Aquino III on Monday signed into law Republic Act 10147, the P1.645-trillion General Appropriations Act for 2011 which is actually his first financial blueprint that will enable the national government to address the urgent needs of the marginalized sector of society.

In a speech after the signing at Malacanang’s Rizal Hall, the Chief Executive said this is the first time in 11 years that the national budget was signed on time.

Of the total budget, the social services sector got the lion's share at 34.1 percent, a 16.8 percent hike from its 2010 budget, the highest increase among all sectors. It includes a P21-billion allocation for the conditional cash transfer program and P1.2 billion in unaudited intelligence funds.

"Congress has ratified the General Appropriations Act for 2011. By so doing, it has made possible my signing the national budget today. This will be the first time in 11 years that the budget will be signed into law on the same year that it was submitted," the President said.

The President noted that the House of Representatives and the Senate “have proven that both chambers of Congress are indeed serious about the primary duty of the legislature.”

"The budget is the most important act of any Congress. Its early passage means that the much-needed programs for poverty alleviation and development can be implemented earlier," he stressed.

The President pointed out that the early signing of the budget "will enable us to address the urgent needs of our people in a timely manner. Such needs include building more rural health units and providing immunization for children. This also allows us to construct new classrooms and hire new teachers, as promised to the Filipino people."

Present during the budget signing ceremony were Senate President Juan Ponce Enrile, House Speaker Feliciano Belmonte Jr., Congress committee leaders and members of the Cabinet.

Meanwhile, Budget and Management Secretary Florencio “Butch” Abad said the signing of the GAA for 2011 is the first budget with transparency and accountability provisions integrated under the zero-based budgeting (ZBB) approach.
Under the ZBB approach, the government, according to Abad should reduce or terminate funding for projects or programs which are ineffective, inefficient or fraught with leakages, and to expand funding for those which are well performing and are critical for development.

“These general and special provisions require us to disclose key information on budgetary appropriations and releases using new information technology. This administration has nothing to hide from the people,” he said.

Aside from social services, the sectors that got an increase in the 2011 budget were the following:

- P110 million for the maintenance and operating expenses of 80 state universities and colleges (SUC);
- P8 million in the budget of the Office of the Vice President;
- P200 million in subsidies for local government units;
- P590 million in the budget of the House of Representatives; and
- P345 million in the budget of the Senate.

(Source: http://www.president.gov.ph/news/default.aspx?n=594)

House ratifies P1.645 trillion budget for 2011

MANILA, Dec. 14 (PNA) -- The House of Representatives on Tuesday ratified the bicameral conference committee report on the reconciled version of the proposed P1.645-trillion national budget for 2011.

The ratified bicameral report on the proposed 2011 national budget will now be submitted to Malacanang for President Benigno S. Aquino III's signature.

Under the proposed budget, Congress will get P7.7 billion; Office of the President - P4.1 billion; Office of the Vice-President - P179.805 million; Department of Agrarian Reform - P16.7 billion; Department of Agriculture - P37.6 billion; Department of Budget and Management - P780.880 million; Department of Education - P206.2 billion; State Universities and Colleges - P23.4 billion;

Department of Energy - P1.3 billion; Department of Environment and Natural Resources - P13 billion; Department of Finance - P12.2 billion; Department of Foreign Affairs - P11.1 billion; Department of Health - P33.3 billion; Department of Interior and Local Government - P88.1 billion; Department of Justice - P7.6 billion; Department of Labor and Employment - P6.4 billion; Department of National Defense - P104.6 billion; Philippine Veterans Affairs Office - P13.8 billion; Armed Forces of the Philippines - P89.8 billion; Department of Public Works and Highways - P110.6 billion; Department of Science and Technology - P6 billion;

Department of Social Welfare and Development - P34.2 billion; Department of Tourism - P1.4 billion; Department of Trade and Industry - P2.5 billion; Department of Transportation and Communications - P32.3 billion; National Economic and Development Authority - P2.1 billion; Presidential Communications Office - P976.157 million;

Other Executive Offices - P5.8 billion; Autonomous Region in Muslim Mindanao - P11.8 billion; the Judiciary - P14.3 billion; Commission on Audit - P4.4 billion; Commission on Election - P2.3 billion; Office of the Ombudsman - P1.1 billion; and Commission on Human Rights - P285.466 million.

Budget and Management Secretary Florencio Abad earlier said the proposed 2011 national budget was earmarked to finance projects where it is much needed to benefit the people.

"We have redesigned the budget to ensure that every centavo will be put to good use," he said.

Abad said the proposed budget was anchored on the four principles of transparency and accountability, bias in allocating resources for the poor, fiscal responsibility to reduce debt, public-private partnerships to spur growth, and zero-based budgeting to prioritize activities with impact.

He noted that the proposed 2011 budget represented 18.2 percent of gross domestic product (GDP), a prudent level consistent with the governance principles.

The DBM chief said a conservative five percent GDP growth rate is assumed even as government targets 7-8 percent growth.

He said the proposed budget deficit for next year is expected to be reduced by 10.8 percent to P290 billion, or 3.2 percent of GDP as against 3.9 percent in 2010.

"It would seem that we are reducing the size of the government. But what we are doing is to make government more relevant and responsive to the people," said Abad.

He said education, public health, social protection, housing and land distribution for the poor, spending on the social services sector receives a significant share of P560.8 billion or 34.1 percent of the proposed budget.

The Senate ratified the proposed national budget on Monday. (PNA)

Underspending will not compromise growth - Budget Secretary Florencio Abad

MANILA, Nov. 23 (PNA) -– Budget and Management Secretary Florencio Abad on Tuesday said the economy’s growth will not be affected by the Aquino administration’s decision to limit expenses.

In the first 10 months of this year, expenditures totaled to P1.26 trillion, a six percent jump over the P1.19 trillion year-on-year.

This is, however, 5.3 percent or P70.1 billion lower than the P1.33 trillion program for the 10-month period, Abad said.

For October alone, disbursement totaled to 109 billion, a 12.7 percent drop compared to the P124.9 billion program for the month due to the lower operating and interest payments.

Abad attributed the lower-than-programmed disbursement to, among others, the lower funding requirement after the front-loading in the first half of the year, lower maintenance and other operating expenditures (MOOE) of the various agencies, lower personnel service releases, and under-spending in net lending among government-owned and controlled corporations (GOCCs).

He said that amid the drop in disbursement capacity of national government agencies, their utilization rate got better at 99.3 percent last October from the previous month’s 97 percent.

“We have consistently spent below target in the past four months, and that is way better than the leakage-laden overspending regime that we have had in the past,” he said.

And, because spending is kept under control compared to the over-spending in the first half of the year, Abad is confident that the budget deficit this year would remain within the P325 billion ceiling.

“We are also in a better position to manage our debt and deficit in the medium term,” he said.

Growth of the domestic economy is now assured and would further be solidified by the administration’s public-private partnership (PPP) initiative, he said, citing investors’ optimism on the administration’s ability to “achieve fiscal targets through good governance.”

On the other hand, Abad cited that spending for subsidies of GOCCs was higher-than-programmed by P2.7 billion or 20.1 percent because of the full release of the P8 billion for National Food Authority’s (NFA) price stabilization and food security program.

He said that of the P1.5406 trillion obligation program for this year, some P1.308 trillion of allotment authorities has been issued as of last October while the P232.5 billion or 15.1 percent of the total is still available for the last two months of this year.

He said some P100.4 billion of appropriations for MOOE and capital outlay can be utilized for November and December this year.

“This amount could be fully or partially utilized, considering our continued use of the zero-based budgeting approach to make budget execution more efficient. Clearly, we have enough room to maneuver in managing our year-end deficit,” he added.

As of last October, budget gap was lower than the P292.8 billion program at P270.3 billion. This year’s budget deficit ceiling is P325 billion.

The growth target for this year is between five to six percent while actual growth, as measured by gross domestic product (GDP), in the first half of the year, stood at 7.9 percent. (PNA)

Senate President Juan Ponce Enrile vows passage of 2011 budget by Senate by Dec. 1

(Editor's note: The following is a transcript of an interview released by the Philippine Senate as a press release on the issue of the 2011 national budget. In the interview, Senate President Juan Ponce Enrile says the national budget will be passed by the Senate by December 1, 2010. It is, however not clear if the December 1 passage deadline also includes the concurrence of the bicameral conference committee (Senate and House) and whether it will be signed into law as the General Appropriations Act of 2011 by President Benigno S. Aquino III. President Aquinio submitted the proposed national budget to Congress last July 26, 2010)

Press Release

November 23, 2010

Transcript of Interview of Senate President Juan Ponce Enrile

On the Budget Deliberations

Q Ano po ang timetable ninyo for the budget deliberations?

SP We are going to debate the budget but in the end we will have to pass it.

Q Daily po?

SP Yes, daily.

Q May hinahabol pong timetable sir?

SP We will finish it (inaudible) December 1.

Q Sir, ano po ang bottleneck between the versions of the two budgets? What would be the most significant change?

SP I don't think there would be too many changes. We will give the benefit of the doubt to the present administration. Next budget time, if we find anything amiss, then we will have to scrutinize it.

Q The CCT remains intact?

SP I think so, by and large.

Q Tataas po daw ang credit standing natin?

SP Siguro. Kanina, may pinag-usapan, 'yung VFA.

Q Meron pa po bang cuts sa budget?

SP I don't think so.

Q How about realignment?

SP Maybe here and there, we will punish the agencies that do not perform well.

(Source: http://senate.gov.ph/press_release/2010/1123_enrile1.asp)