2018 BUDGET BRIEFER

CONGRESSIONAL POLICY AND BUDGET RESEARCH DEPARTMENT

JULY 2018 NO. 2018-01

DIMENSIONS OF THE 2018

NATIONAL GOVERNMENT BUDGET
(AS ENACTED UNDER RA 10964) 1

The 2018 National Budget, dubbed as the "Budget that Reforms and Transforms", promises to
support programs that not only increase the country's growth potential but reduce inequality,
restore trust and confidence in government, and maintain the foundations for sustainable
development—through better infrastructure, peace and security, and environmental protection.
In his Budget Message, the President assures the delivery of services that actually transform the
living conditions of Filipinos, and that economic gains will become a personal experience in
terms of—(1) peaceful and safer communities, (2) enhanced opportunities for advancement, and
(3) convenient, reliable services from government.

Republic Act No. 10964 (also known as the General Appropriations Act for 2018) authorizes the
national government (NG) to spend a total of P3,767 billion. This is P417 billion or 12.4%
higher than the expenditure level in 2017. Although the expenditure-to-GDP ratio of 21.6% for
2018 is not significantly different from that in 2017, a higher budget rests on the assumption that
the country's GDP is projected to grow by 7%-8%, and that government will be able to capture
such gains through improved tax collection.

Net of debt payments (for interest and net lending), the NG expenditure level for 2018 amounts
to P3,396.2 billion. This is about P397.8 billion or 13.3% higher than last year's (2017) primary
spending level of P2,998.4 billion. Figure 1 shows that for a period of ten years (2009-2018),
primary expenditures of the NG have been steadily growing—and at more significant amounts in
the last four years since 2015. This essentially means that the growth in overall NG expenditures
is directed towards more productive spending through agency programs and projects. Even as
interest payments grew in 2017 and 2018 (after a continuous decline in 2014-2016), its growth is
minimal compared to the overall increase of the NG budget.

1 This paper was prepared by Pamela Diaz-Manalo with the research assistance of Arlene Lopez-Tuazon, and the overall
guidance of Director General Romulo E.M. Miral, Jr., PhD.
 CPBRD / 2018 BUDGET BRIEFER 2

FIGURE 1
PRIMARY EXPENDITURES, 2009-2018
(NET OF DEBT SERVICE AND NET LENDING)
4,000
3,500
3,000
In Billion Pesos

2,500
2,000
1,500
1,000
500
-
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Primary Expend. 1,150 1,169 1,283 1,489 1,658 1,684 2,096 2,363 2,998 3,396
Source of basic data: BESF (2011-2017) and 2018 Select Updated BESF Table

The changes promised by the President through programs funded by the 2018 Budget depend
largely on the ability of national government agencies (NGAs) to fully absorb (if not improve on
its budget utilization). Table 1 shows the overall utilization rate of NG (based on the obligation-
to-total available appropriations ratio) as an indicator of absorptive capacity. It may be noted
that NG’s utilization rate consistently declined from 90.8% in 2013 to 81.8% in 2016 despite the
adoption of the GAA-as-Release Document (GAARD) policy since 2014. On obligation basis,
NG spending in 2016 amounted to P2,682.8 billion or 18.5% of GDP which is 4.1 percentage
points lower had the available appropriations been fully spent.2 Unused appropriations in 2016
amounted to P596.7 billion.

TABLE 1
APPROPRIATIONS AND OBLIGATIONS, 2011-2016
Levels, in Billion Pesos Obligations Percent Share to GDP (%)

Available Unused to Available Available Unused

Year Obligations Appro. (%) Obligations
Appro. Appro. Appro. Appro.

2011 1,818.9 1,580.0 238.9 86.9 18.7 16.3 2.5

2012 2,045.2 1,829.0 216.2 89.4 19.4 17.3 2.0
2013 2,201.8 1,998.4 203.5 90.8 19.1 17.3 1.8

2014 2,411.1 2,019.1 392.1 83.7 19.1 16.0 3.1

2015 2,901.5 2,414.6 486.8 83.2 21.8 18.1 3.7
2016 3,279.5 2,682.8 596.7 81.8 22.6 18.5 4.1
Sources of basic data: NEP, BESF, and PSA for GDP

2 The discussion pertaining to Table 1 were culled from an earlier CPBRD publication, “Budget Utilization Performance of
the National Government” issued September 2017.
 CPBRD / 2018 BUDGET BRIEFER 3

Based on the GAARD policy, the disaggregated items in the GAA are already considered
released to the respective agencies at the start of the year. This should give agencies a head-start
in the procurement process as it effectively allows the agencies to enter into obligations without
need to wait for DBM’s Allotment Release Order.3

SOURCES OF APPROPRIATIONS

Under the 2018 GAA, Congress has approved P2,861.5 billion in New Appropriations (including
the P75.3 billion Unprogrammed Appropriations which will be discussed in the succeeding
paragraphs). For 2018, total Automatic Appropriations amounting to P980.8 billion includes
debt service for interest payment (P354 billion), the Internal Revenue Allotment (P522.7 billion),
and Retirement and Life Insurance Premiums (P42.6 billion), among others. The authority to
spend for these periodic expenditures is already provided by other existing laws, hence, they are
not part of the New Appropriations that requires congressional approval.

TABLE 2
SOURCES OF APPROPRIATIONS, 2018
(IN BILLION PESOS)

Particulars Amount

New Appropriations 2,861.5

ADD: Automatic Appropriations 980.8

Total Available Appropriations 3,842.3

LESS: Unprogrammed Appropriations 75.3

Total Programmed Appropriations 3,767.0

Source of basic data: GAA 2018.

Total available appropriations (new + automatic) amounts to P3,842.3 billion. However, netting
out Unprogrammed Appropriations (P75.3 billion) would mean that the total appropriations that
can be utilized by NG for 2018 is P3,767 billion. Although Unprogrammed Appropriations is
part of the GAA, its approval only serves as standby authority—and the authorized amount may
be used only on the following conditions: (1) excess revenue collections in any one of the
identified non-tax revenue sources from its corresponding revenue collection target, (2) new
revenue collection or those arising from new tax or non-tax sources which are not part of the
original revenue sources reflected in the BESF, and (3) approved loans for foreign-assisted
projects.

3 The following transactions are not covered by the GAARD: (1) appropriations by virtue of law, general or special
provisions and rules and regulation that have conditions or requirements before release; (2) lump-sum appropriations that
have no details necessary for release (e.g., Special Purpose Funds); and (3) those requiring a Special Budget under the general
or special provisions of the GAA.
 CPBRD / 2018 BUDGET BRIEFER 4

Part of the Unprogrammed Appropriations will be used for the following: (1) Risk Management
Program (P23.4 billion) to cover commitments and obligations of NG in agreements involving
Public-Private Partnership (PPP) projects; (2) Support for Infrastructure Projects and Social
Programs (P13.7 billion); (3) Support to Foreign-Assisted Projects (P11.6 billion); (4) Provision
for Payment of Arrears of LTO-IT Service (P9.5 billion); (5) Bangon Marawi Fund (P5 billion)
to augment the rehabilitation of Marawi, and (6) AFP Modernization Program (P5 billion). It
also includes an amount of P463.5 million for Prior Year's LGU Shares from incremental
collections VAT and from Special Privilege Tax. It may be noted that such shares could fall
under Allocation to LGUs (ALGU) as part of the programmed appropriations—no longer
subject to conditions for the release under Unprogrammed Appropriations.

SECTORAL DISTRIBUTION

The sectoral allocation of the national budget largely reflects the major thrusts and development
priorities of government. Both social and economic sectors have consistently been on top of the
spending priorities of NG. Table 3 shows that about 68% of the total NG budget in 2017 and
2018 are spent on these two sectors (combined).

While social services still gets the biggest share, the 2018 budget in particular places greater
importance on economic services which captured over half (55%) of the total increment for this
year—thus, increasing its budget share at the expense of a slower growth in social services and
the rest of the sectors. The social services sector grew considerably slower than last year (2017)
and as against the economic sector. Total allocation for social services amounts to
P1,425.7 billion which is 5.5% higher than last year’s spending level. On the other hand, the
economic services sector grew significantly by 25% to P1,153.6 billion primarily in support of
the Administration’s “Build, Build, Build” Program.

TABLE 3
EXPENDITURE PROGRAM BY SECTOR, 2016-2018
Levels, in Billion Pesos Percent Share to Total (%) Growth Rates (%)
Particulars
2016 2017 2018 2016 2017 2018 16-17 17-18

Economic Services 820.3 922.9 1,153.6 30.6 27.5 30.6 12.5 25.0
Social Services 972.6 1,351.5 1,425.7 36.3 40.3 37.8 39.0 5.5
Defense 113.8 148.7 161.5 4.2 4.4 4.3 30.6 8.6
General Public Services 456.3 575.4 655.4 17.0 17.2 17.4 26.1 13.9
Net Lending 15.3 16.8 16.8 0.6 0.5 0.4 9.6 0.2
Debt Service 304.5 334.9 354.0 11.3 10.0 9.4 10.0 5.7
TOTAL 2,682.8 3,350.0 3,767.0 100.0 100.0 100.0 24.9 12.4
Source of basic data: 2018 Select Updated BESF Table based on 2018 GAA (DBM website)
 CPBRD / 2018 BUDGET BRIEFER 5

All sectors grew nominally but only economic services and general public services grew in budget
share, albeit minimal in the case of the latter. Total allocation for general public services
amounts to P655.4 billion or 17.4% of the total budget for 2018. Meanwhile, allocation for
defense amounts to P161.5 billion or 4.3% of the total budget this year.

Debt service (interest payments) is expected to increase by 5.7% to P354 billion in 2018.
Growth in interest payments is considerably lower vis-a-vis the overall NG budget growth
(12.4%) in 2018. Thus, the portion of the NG budget that actually goes to debt service slightly
declined from 10% to 9.4%. Debt service for 2018 is 2% of GDP while allocations for
economic and social services are at 6.6% and 8.2%, respectively.

Economic Services

Total budget for economic services in 2018 amounts to P1,153.6 billion which is about P230.7
billion higher than the 2017 level. More than half (57.1%) of the budget for economic services
goes to Communications, Roads and Other Transportation (CROT). It also accounts for the
highest nominal increment within the economic sector. Out of the P230.7 billion increase in
appropriation for economic services in 2018, about 77.5% or P178.8 billion is additional funding
for CROT projects. Two other sub-sectors that posted relatively significant increases in their
respective budgets are—(1) Agriculture and Agrarian Reform that grew by P23 billion to P142.7
billion, and (2) Water Resources Development and Flood Control (WRDFC) that increased by
P21.9 billion to P85.2 billion.

TABLE 4
ECONOMIC SERVICES EXPENDITURE PROGRAM , 2016-2018
Levels in Billion Pesos % Share to Total Growth Rates (%)
Particulars
2016 2017 2018 2016 2017 2018 16-17 17-18
Agriculture, Agrarian Reform 99.7 119.8 142.7 12.2 13.0 12.4 20.2 19.2
Natural Resources & Environment 25.8 29.3 27.9 3.1 3.2 2.4 13.5 (4.7)
Trade and Industry 11.0 11.5 12.4 1.3 1.2 1.1 5.1 8.0
Tourism 6.0 4.1 6.9 0.7 0.4 0.6 (31.6) 70.4
Power and Energy 12.1 8.1 7.6 1.5 0.9 0.7 (33.0) (6.2)
Water Resources Development
57.3 63.3 85.2 7.0 6.9 7.4 10.4 34.7
and Flood Control
Communications, Roads
437.6 479.7 658.4 53.4 52.0 57.1 9.6 37.3
and Other Transportation
Other Economic Services 20.8 36.8 29.4 2.5 4.0 2.5 76.6 (20.1)
Subsidy to LGUs 150.0 170.4 183.0 18.3 18.5 15.9 13.6 7.4

TOTAL 820.3 922.9 1,153.6 100.0 100.0 100.0 12.5 25.0

Source of basic data: 2018 Select Updated BESF Table based on 2018 GAA (DBM website)

The distribution of the budget within the economic services sector shows that only
Communications/Transportation, Water Resources Development and Flood Control, and
Tourism increased in budget shares. In the case of Tourism, it was appropriated P6.9 billion
 CPBRD / 2018 BUDGET BRIEFER 6

which is P2.9 billion higher than in 2017. Nominally, the increment may be low compared with
those of the other sub-sectors. However, Tourism posted the highest growth rate (70.4%)
relative to its budget size especially after coming out of a cut in 2017—which was close to one-
third (31.6%) of its budget in 2016. The increment for 2018 was enough to restore the budget
for Tourism to a level slightly higher than in 2016.

Social Services

Under the 2018 GAA, total appropriations for social services amount to P1,425.7 billion which is
P74.2 billion or 5.5% higher than in 2017. The increments for the sector can be traced to higher
appropriations for Education, Culture and Manpower Development (ECMD) and Health. Even
though ECMD already accounted for 45.7% of the budget for social services in 2016, hefty
increases particularly for free tertiary education further increased its share to 52.2% and 53.3% in
2017 and 2018, respectively. A total of P760.2 billion has been appropriated for education
(ECMD) in 2018. This is P54.3 billion higher than its budget in 2017. In particular, the
Commission on Higher Education (CHED) increased by P31 billion while the DepED grew by
P12.2 billion.

TABLE 5
SOCIAL SERVICES EXPENDITURE PROGRAM , 2016-2018
Growth Rates
Levels in Billion Pesos % Share to Total
Particulars (%)
2016 2017 2018 2016 2017 2018 16-17 17-18

Education, Culture, & Manpower Dev’t 444.2 705.9 760.2 45.7 52.2 53.3 58.9 7.7
Health 125.2 158.3 179.4 12.9 11.7 12.6 26.4 13.3
Social Security, Welfare Employment 222.5 288.8 284.1 22.9 21.4 19.9 29.8 (1.6)
Housing & Community Development 20.1 15.4 5.9 2.1 1.1 0.4 (23.3) (61.9)
Land Distribution - 0.1 0.1 - 0.01 0.0 - -
Other Social Services 2.0 2.8 2.6 0.2 0.2 0.2 42.9 (6.1)
Subsidy to Local Government Units 158.6 180.1 193.4 16.3 13.3 13.6 13.6 7.4
TOTAL 972.6 1,351.5 1,425.7 100.0 100.0 100.0 39.0 5.5
0 = less than 0.1%
Source of basic data: 2018 Select Updated BESF Table based on 2018 GAA (DBM website)

Meanwhile, total appropriations for Health amounts to P179.4 billion representing 12.6% of the
total budget for social services. This amount is P21.1 billion higher than the appropriations for
Health in 2017 (P158.3 billion). On the other hand, Social Security, Welfare and Employment
(SSWS) which accounts for one-fifth (19.9%) of the social services budget slightly declined by
1.6% to P284.1 billion. Notably, appropriations for Housing and Community Development
suffered huge cuts in 2017 and 2018. From P20.1 billion spending in 2016, the budget for
Housing is down to P5.9 billion which is only 0.4% of the budget for social services in 2018.
 CPBRD / 2018 BUDGET BRIEFER 7

General Public Services

Appropriations for General Public Services in 2018 amount to P655.4 billion. This is about
P80 billion or 13.9% higher than the 2017 expenditure level. The budgetary increment in 2018
can be traced to higher appropriations for General Administration and for Public Order and
Safety.

About one-third (33.9%) or P221.9 billion of the total budget for General Public Services (GPS)
goes to General Administration. It accounts for P44.5 billion of the P80 billion increment for
GPS with the bulk of the increase going to Land Bank of the Philippines (LBP). There was no
appropriation for LBP in 2017 but it was given a budgetary support amounting to P25.6 billion
in 2018 (related discussion in page 19). Meanwhile, the budget for the Commission on Elections
(COMELEC) also increased by P12.8 billion to P16.2 billion in 2018 in preparation for the 2019
national elections. Contingent Fund under General Public Services also increased significantly
from P4.6 billion to P10.8 billion.

TABLE 6
GENERAL PUBLIC SERVICES EXPENDITURE PROGRAM, 2016-2018
Levels in Billion Pesos % Share to Total Growth Rates (%)
Particulars
2016 2017 2018 2016 2017 2018 16-17 17-18

General Administration 151.8 177.4 221.9 33.3 30.8 33.9 16.8 25.1
Public Order and Safety 163.1 204.7 239.3 35.7 35.6 36.5 25.6 16.9
Other General Public Services 21.4 56.9 47.8 4.7 9.9 7.3 165.7 (15.9)
Subsidy to LGUs 120.0 136.3 146.4 26.3 23.7 22.3 13.6 7.4
TOTAL 456.3 575.4 655.4 100.0 100.0 100.0 26.1 13.9
Source of basic data: 2018 Select Updated BESF Table based on 2018 GAA (DBM website)

The Public Order and Safety budget increased considerably for two consecutive years. From
P163.1 billion in 2016, its budget grew by P41.7 billion and P34.6 billion in 2017 and 2018,
respectively. Appropriations for Public Order and Safety in 2018 amounts to P239.3 billion
which is 36.5% of the total budget for General Public Services. A huge increment of
P20.7 billion can be traced to the Philippine National Police (PNP) whose budget grew by 18.5%
to P132.6 billion.

ALLOCATION BY EXPENSE CLASS

Table 7 shows the distribution of the 2018 NG budget by expense class. Current operating
expenditures (COE) account for 67.6% while the remaining 31.9% and 0.4% are for capital
outlay (CO) and net lending, respectively. Even as both COE and net lending increased
nominally, their respective shares declined as CO grew significantly in 2018 to fulfill
commitments to accelerate infrastructure development.
 CPBRD / 2018 BUDGET BRIEFER 8

Total COE amounts to P2,547.8 billion which is higher by P209.6 billion than the 2017
expenditure level. However, its share to total budget declined by 2.2 percentage points which is
the same percentage increase in CO (from 29.7% to 31.9%). In the past two years (2016-2017),
expenditures for personal services (PS) as a component of COE took the biggest portion of the
NG budget at 28.3% and 29.6%, respectively. In 2018, the PS share declined to 28.2% even as it
grew nominally from P990.5 billion in 2017 to P1,060.5 billion to cover the salary increase under
the third tranche of the Salary Standardization Law (SSL IV) for civilian personnel, as well as the
recent raise in basic pay of the military and uniformed personnel (MUPs). Part of the increase in
PS will also pay for the creation and filling of positions for teachers and uniformed personnel.

Major expenditure items under COE (aside from PS) are Maintenance and Other Operating
Expenses-MOOE (P594.2 billion), Internal Revenue Allotment-IRA (P418.2 billion, net of the
20% Development Fund lodged under CO-Infrastructure), and interest payments (P354 billion).
MOOE covers expenditures largely for the implementation of agency PAPs and support to
operations. The IRA representing the share of local government units (LGUs) in the internal
revenues increases following the growth in BIR collection.4 Interest payments has been growing
nominally but budget share steadily declined in 2016-2018.

TABLE 7
EXPENDITURE PROGRAM BY EXPENSE CLASS, 2016-2018
Levels (in Billion Pesos) Percent Share to Total (%) Growth Rates (%)
Particulars
2016 2017 2018 2016 2017 2018 16-17 17-18

Current Operating Expenditures 1,891.8 2,338.2 2,547.8 70.5 69.8 67.6 23.6 9.0
Personal Services 758.1 990.5 1,060.5 28.3 29.6 28.2 30.7 7.1
Maintenance and Other
417.0 536.1 594.2 15.5 16.0 15.8 28.6 10.8
Operating Expenses
Financial Expenses 1.6 2.0 1.6 0.1 0.1 0.0 23.3 (17.0)
5
Allotment to LGUs (IRA) 342.9 389.5 418.2 12.8 11.6 11.1 13.6 7.4
Interest Payments 304.5 334.9 354.0 11.3 10.0 9.4 10.0 5.7
Subsidy 67.7 85.3 119.2 2.5 2.5 3.2 25.9 39.8
Capital Outlays 775.7 995.0 1,202.4 28.9 29.7 31.9 28.3 20.8
Infrastructure 650.1 858.1 1,068.4 24.2 25.6 28.4 32.0 24.5
Equity 27.0 2.7 9.8 1.0 0.1 0.3 (90.2) 267.0
Special Shares to LGUs 15.2 31.0 23.1 0.6 0.9 0.6 103.2 (25.4)
Other Capital Outlays 83.3 103.3 101.1 3.1 3.1 2.7 24.0 (2.1)
Net Lending 15.3 16.8 16.8 0.6 0.5 0.4 9.6 0.2
TOTAL 2,682.8 3,350.0 3,767.0 100.0 100.0 100.0 24.9 12.4

Source of basic data: 2018 Select Updated BESF Table based on the GAA (DBM website)

4
The IRA is computed based on the internal revenue collection of the third preceding year. The existing base of the IRA
only includes BIR collection, but a recent Supreme Court decision on a petition to include the BOC collection in the
computation of the LGU shares will significantly increase the IRA in subsequent years.
5 Amount for IRA under COE excludes P104.5 billion representing the 20% Development Fund that is placed under

Capital Outlay-Infrastructure.
 CPBRD / 2018 BUDGET BRIEFER 9

In terms of budget share, only infrastructure and equity (under CO) and subsidy (under COE)
increased in 2018. Total appropriations for infrastructure grew by 24.5% from P858.1 billion in
2017 to P1,068.4 billion—thus, raising its share by 2.8 percentage points to 28.4%. The hefty
increase for infrastructure funds the Build, Build, Build Program and the Revised AFP
Modernization Program, among others. According to the DBM, about 40% or P424.9 billion
will finance road transport projects to improve connectivity and mobility of goods and people.
Infrastructure spending in 2018 is expected to reach 6.1% of GDP, and will be further expanded
to a target of 7.3% of GDP by 2022.

Subsidy in 2018 amounts to P119.2 billion or 3.2% of the total NG budget. While subsidy is
defined as the appropriations cover to address operating deficits for GOCCs, an earlier study
(Manalo 2016) on budgetary support to GOCCs found that most of these subsidies are classified
by the Corporate Governance Commission (CGC) as program subsidies to implement major
programs of NG (e.g., irrigation, housing and health). Meanwhile, equity or NG investment in
the authorized capital stock of GOCCs amounts to P9.8 billion or 0.3% of the total NG budget.

TABLE 8
NG EXPENDITURE, BY RECIPIENT UNIT, 2018
Levels (in Billion Pesos) Percent Share to Total (%)
Particulars
NGAs LGUs GOCCs Creditors Total NGAs LGUs GOCCs Creditors Total
Current Operating
1,654.1 420.3 119.5 354.0 2,547.8 43.9 11.2 3.2 9.4 67.6
Expenditures
Personal Services 1,060.3 0.0 0.2 - 1,060.5 28.1 0.0 0.0 - 28.2
Maintenance and Other
592.2 2.1 - - 594.2 15.7 0.1 - - 15.8
Operating Expenses
Financial Expenses 1.6 - - - 1.6 0.0 - - - 0.0
Allotment to LGUs (IRA) - 418.2 - - 418.2 - 11.1 - - 11.1
Interest Payments - - - 354.0 354.0 - - - 9.4 9.4
Subsidy - - 119.2 - 119.2 - - 3.2 - 3.2
Capital Outlays 980.1 160.9 61.4 - 1,202.4 26.0 4.3 1.6 - 31.9
Infrastructure 886.7 130.0 51.6 - 1,068.4 23.5 3.5 1.4 - 28.4
Equity - - 9.8 - 9.8 - - 0.3 - 0.3
Special Shares to LGUs - 23.1 - - 23.1 - 0.6 - - 0.6
Other Capital Outlays 93.4 7.7 - - 101.1 2.5 0.2 - - 2.7
Net Lending - - 16.8 16.8 - - 0.4 - 0.4
TOTAL 2,634.2 581.2 197.6 354.0 3,767.0 69.9 15.4 5.2 9.4 100.0
0 = less than 0.1%
Source of basic data: 2018 Select Updated BESF Table based on 2018 GAA, DBM

By recipient unit, Table 8 shows that 69.9% or about P2,634.2 billion of the total P3,767 billion
national budget will be used to support the operations and programs/projects of national
government agencies (NGAs). About P581.2 billion representing 15.4% of the total national
budget pertain to LGUs, primarily for the disbursement of the IRA. Roughly 9.4% or
P354 billion will go to creditors as interest payments. Meanwhile, 5.2% or P197.6 billion is
intended for government corporations: subsidy (P119.2 billion), infrastructure (P51.6 billion),
equity (P9.8 billion), net lending (P16.8 billion) and personal services (P0.2 billion).
 CPBRD / 2018 BUDGET BRIEFER 10

ALLOCATION BY DEPARTMENT

Table 9 shows that the 2018 budget for departments as aggregated amounts to P2,360.4 billion.
This is higher by P332 billion or 16.4% compared with last year's (2017) expenditure level for all
departments. The Department of Public Works and Highways (DPWH) gets the highest
appropriations and the budgetary increment (nominal) in 2018. From P467.7 billion in 2017, the
DPWH budget grew by P183.2 billion (39.2%) to P650.9 billion this year. A significant increase
in appropriations for DPWH supports the "Build, Build, Build" Program to raise the quality of
public infrastructure in the country. Note that appropriations for DPWH are still higher than
the combined budget of the Department of Education (DepEd) and the State Universities and
Colleges (SUCs)—i.e., P645.9 billion, which is P5 billion lower than the amount appropriated for
DPWH.

Aside from DPWH, other departments within the top 10 that received higher appropriations in
2018 are as follows: Education-DepEd (P580.6 billion), Interior and Local Government-DILG
(P172.4 billion), National Defense-DND (P150 billion), Social Welfare and Development-
DSWD (P141.9 billion), Health-DOH (P109.8 billion), Other Executive Offices-OEO
(P77.5 billion), Transportation-DOTr (P68.1 billion), SUCs (P65.2 billion), and Agriculture-DA
(P55.7 billion).

In nominal terms, budgetary increments were notably high in 2018 for DPWH, Other Executive
Offices (OEO), and DILG. The budget for OEO increased significantly for two consecutive
years—from P23.9 billion (2016) to P46 billion (2017), and further up to P77.5 billion in 2018.
This is primarily due to the expanded free tuition for college students—funds for which are
lodged with the Commission on Higher Education (CHED) under the OEO. The 2018 GAA
has set aside P40 billion for Universal Access to Quality Tertiary Education6 to cover the cost of
education of students enrolled in SUCs, Local Universities and Colleges (LUCs), Private Higher
Education Institutions (HEIs), and Technical Vocational Institutions (TVIs). Also under CHED
are separate appropriations for the Student Financial Assistance Program (P4.7 billion) and the
scholarship for medical students in SUCs (P250 million).

Meanwhile, the DILG budget grew by P23 billion to P172.4 billion in 2018, after a considerable
cut (P21.2 billion) in 2017. The Philippine National Police (PNP) that accounts for roughly
76.9% of the DILG budget increased by P20.7 billion—practically accounting for 90% of the
budgetary increment for the entire department. A hefty increase for the PNP supports the
President's war on drugs and the Crime Prevention and Suppression Program.

6Funds for free higher education is administered by the Unified Student Financial Assistance System for Tertiary
Education (UNIFAST) Board created under RA 10687.
 CPBRD / 2018 BUDGET BRIEFER 11

TABLE 9
NG EXPENDITURE BY DEPARTMENT, 2016-2018
(AMOUNTS IN BILLION PESOS)
Increase/(Decrease)
Particulars 2016 2017 2018 Amount Percent
16-17 17-18 16-17 17-18

Department of Public Works and Highways 425.8 467.7 650.9 41.8 183.2 9.8 39.2
Department of Education 371.0 568.4 580.6 197.4 12.2 53.2 2.1
Department of Interior & Local Government 170.6 149.4 172.4 (21.2) 23.0 (12.4) 15.4
Department of National Defense 172.4 137.4 150.0 (34.9) 12.5 (20.3) 9.1
Department of Social Welfare and Development 108.8 128.4 141.9 19.6 13.5 18.0 10.5
Department of Health 78.7 98.4 109.8 19.7 11.4 25.1 11.6
Other Executive Offices 23.9 46.0 77.5 22.1 31.6 92.3 68.8
Department of Transportation a/ 61.8 55.7 68.1 (6.1) 12.4 (9.9) 22.3
State Universities and Colleges 53.1 61.4 65.2 8.4 3.8 15.7 6.2
Department of Agriculture 44.9 45.9 55.7 1.0 9.7 2.3 21.2
The Judiciary 31.1 32.8 35.4 1.7 2.6 5.3 7.9
Autonomous Region in Muslim Mindanao 27.4 33.5 34.2 6.1 0.7 22.2 2.1
Department of Environment & Natural Resources 25.7 27.3 25.7 1.7 (1.6) 6.5 (5.9)
Department of Science and Technology 15.2 21.0 21.2 5.8 0.3 38.3 1.3
Department of Finance 20.4 23.2 21.1 2.8 (2.1) 13.6 (9.0)
Department of Foreign Affairs 19.1 16.7 20.5 (2.4) 3.7 (12.4) 22.4
Department of Justice 16.5 16.6 19.7 0.1 3.1 0.3 18.7
Congress of the Philippines 13.2 15.4 18.7 2.2 3.3 16.8 21.4
Commission on Elections 13.0 3.3 16.2 (9.7) 12.8 (74.5) 386.2
Commission on Audit 9.7 11.0 12.2 1.3 1.2 13.4 10.9
Department of Labor and Employment 10.4 11.7 11.5 1.3 (0.2) 12.3 (2.1)
Department of Agrarian Reform 8.2 10.1 9.9 2.0 (0.3) 23.8 (2.6)
National Economic and Development Authority 6.5 5.4 9.1 (1.1) 3.7 (16.5) 67.1
Office of the President 2.8 20.2 6.1 17.4 (14.1) 615.2 (70.0)
Department of Trade and Industry 5.4 4.8 6.0 (0.5) 1.2 (10.0) 24.9
Department of Information & Communications Tech. 4.3 3.6 5.4 (0.7) 1.8 (16.2) 51.5
Department of Tourism 3.5 2.6 3.5 (0.9) 1.0 (26.6) 37.4
Office of the Ombudsman 2.3 2.3 2.7 (0.0) 0.4 (1.3) 19.2
Department of Energy 1.8 2.7 2.7 0.9 0.0 47.8 0.1
Department of Budget and Management 2.4 1.5 2.2 (0.9) 0.7 (39.1) 48.1
Civil Service Commission 1.5 1.4 1.7 (0.0) 0.2 (2.1) 16.1
Presidential Communications Operations Office 1.2 1.4 1.4 0.2 0.1 14.0 4.5
Commission on Human Rights 0.5 0.7 0.7 0.3 (0.0) 54.6 (3.7)
Office of the Vice-President 0.3 0.4 0.6 0.2 0.1 55.5 27.1
Joint-Legislative-Executive Offices 0.0 0.0 0.0 0.0 0.0 18.9 15.8
TOTAL 1,753.3 2,028.4 2,360.4 275.0 332.0 15.7 16.4

0 = less than 1 billion or 0.1%

a/ formerly DOTC
Source of basic data: 2018 Select Updated BESF Table based on 2018 GAA (DBM website)
 CPBRD / 2018 BUDGET BRIEFER 12

There are some agencies whose budgets increased considerably high relative to the size of their
past budgets. In particular, the COMELEC budget for 2018 increased by 386.2% from P3.3
billion to P16.2 billion to finance the preparations for the May 2019 national elections. The
appropriations for OEO and the National Economic and Development Authority (NEDA) also
grew by 68.8% and 67.1%, respectively. On the other hand, the budget of the Office of the
President (OP) declined by 70% from P20.2 billion in 2017 to P6.1 billion in 2018. Note that
the OP budget was significantly high in 2017 due to the country's hosting of the ASEAN
Summit.

Major Programs of Select Departments

The national budget is presented for the first time using the Program Expenditure Classification
(PREXC) where all appropriations for related sub-programs, activities and projects are lumped
under particular agency programs. Table 10 presents the top 20 programs with highest
allocations from the inventory of programs of the top 6 recipients of the 2018 budget—DPWH,
DepEd, DILG, DND, DSWD and DOH (see Annex A for full listing). It may be noted that the
combined appropriation for all programs of the top 6 departments amount to roughly
P1,618.5 billion or 89.6% of the aggregated Operations budget (P1,806.2 billion) of all NGAs.

Even though the DPWH got the highest appropriations as a department, it is the Support to
School and Learners Program (SSLP) of the DepEd that received the highest budget of
P342 billion—accounting for about 58.9% of the P580.6 billion DepEd budget for 2018. This
will largely support the PS requirement of the schools amounting to P284.7 billion. The
breakdown of the budget for Support to School and Learners Program shows the allocation by
major sub-program: Operation of Elementary Schools (P193.4 billion), Operation of Junior High
School (P97.5 billion) and Operation of Senior High School (P14.1 billion).

Also included in the top 20 programs for 2018 are defense programs of the different branches of
the Armed Forces of the Philippines (AFP). The Land Forces Defense Program of the
Philippine Army has an appropriations amounting to P54.6 billion or over one-third (36.4%) of
the DND budget for 2018. Meanwhile, the Air Force Defense Program of the Philippine Air
Force gets P18.1 billion, and the Naval Forces Defense Program of the Philippine Navy has a
budget of P17.5 billion. It may be noted that the Joint Force Capability Program under the
DND-General Head Quarters (GHQ) was appropriated P28.7 billion—of which P25.8 billion
are capital outlay primarily for AFP Modernization.

Meanwhile, the 2018 appropriations for DSWD (P141.9 billion) will largely support two major
programs, namely: Promotive Social Welfare Program (P99.9 billion or 70.4%) and Protective
Social Welfare Program (P34 billion or 24%). Breakdown of the Promotive Social Welfare
Program shows that P89.4 billion will finance the implementation of the conditional cash
transfers (CCT) under the Pantawid Pamilya Pilipino Program (4Ps), while the Kalahi-CIDDS and
Sustainable Livelihood get P5.4 billion and P5.1 billion, respectively. Under the Protective Social
 CPBRD / 2018 BUDGET BRIEFER 13

Welfare Program, major sub-programs include the Social Welfare for Senior Citizens
(P19.5 billion) and the Protective Program for Individuals and Families in Specially Difficult
Circumstance (P7.1 billion).

Under the 2018 GAA, there are three major DOH programs that fall within the top 20
programs. These include the following: Health Systems Strengthening Program (P41.2 billion)—
of which P30.3 billion are for capital outlay (CO), the Health Facilities Operation Program
(P27.6 billion) that includes P22.8 billion for personal services (PS), and the Public Health
Program (P19.6 billion) composed primarily of MOOE (P19.1 billion). Appropriations for
health systems strengthening account for 37.6% of the DOH budget, while 25.1% and 17.8% are
for the operation of health facilities and public health, respectively.

TABLE 10
TOP 20 PROGRAMS OF MAJOR RECIPIENT DEPARTMENTS, 2018 a/
(AMOUNTS IN MILLION PESOS)
Share (%) to
Share (%) to
Total Budget of Implementing
Programs Amount Total Operations
Implementing Department/Agency
Budget
Department

Support to School and Learners 342,018.0 18.94 58.90 DepEd-OSec

Network Development 185,507.0 10.27 28.50 DPWH
Basic Education Inputs 169,080.6 9.36 29.12 DepEd-OSec
Flood Management 127,734.5 7.07 19.63 DPWH
Local Program 118,960.5 6.59 18.28 DPWH
Crime Prevention and Suppression 110,208.7 6.10 63.94 DILG-PNP
Promotive Social Welfare 99,893.4 5.53 70.38 DSWD-OSec
Asset Preservation 64,982.1 3.60 9.98 DPWH
Land Forces Defense 54,579.7 3.02 36.39 DND-PA
Convergence and Special Support 50,963.5 2.82 7.83 DPWH
Health Systems Strengthening 41,238.0 2.28 37.55 DOH-OSec
Bridge Program 35,734.5 1.98 5.49 DPWH
Protective Social Welfare 34,023.4 1.88 23.97 DSWD-OSec
Joint Force Capability 28,721.0 1.59 19.15 DND-GHQ-AFPWSSUs
Health Facilities Operation 27,580.7 1.53 25.12 DOH-OSec
Public Health 19,594.0 1.08 17.84 DOH-OSec
Air Force Defense 18,055.8 1.00 12.04 DND-PAF
Naval Forces Defense 17,492.6 0.97 11.66 DND-PN
Inmates' Safekeeping and Devt 13,484.1 0.75 7.82 DILG-B JMP
Fire and Emergency Management 11,751.9 0.65 6.82 DILG-BFP
a/ Programs are arranged based on shares to total operations budget of all departments which amounts to P1,806.2 million
(net of Special Purpose Funds).
 CPBRD / 2018 BUDGET BRIEFER 14

Budget Utilization of Top Recipients

Table 11 presents the budget utilization performance of top recipient departments based on
unused appropriations for the period 2014-2016. Relative to the budget size of each department,
unused appropriations were consistently high for DOTr and DPWH which are primarily
responsible for NG’s infrastructure projects. In 2016, unused appropriations of DOTR were
33.2% of its total appropriations, while that of DPWH was at 25.3%. In nominal terms, unused
appropriations were highest with DPWH at P144.5 billion, followed by DepEd at P57.6 billion.

TABLE 11
UNUSED APPROPRIATIONS OF SELECT DEPARTMENTS, 2014-2016
(AMOUNTS IN BILLION PESOS)
Total Unused Appropriations Unused-to-Available Appro. (%)
Department
2014 2015 2016 2014 2015 2016

DepEd 34.2 51.8 57.6 11.1 14.3 13.4

DPWH 112.6 116.2 144.5 37.0 24.9 25.3
DILG 20.0 8.8 9.7 12.3 5.0 5.4
DOH 9.3 12.7 16.2 16.4 16.5 17.1
DND 4.9 14.5 23.5 3.5 8.7 12.0
DSWD 21.5 18.5 23.0 20.0 12.9 17.5
DOTr 26.1 33.5 30.8 43.4 42.0 33.2
DA 18.6 10.0 7.7 25.2 17.4 14.6
Source of basic data: NEP 2016-2018

Meanwhile, Table 12 shows that based on the SAODB published by the DBM for 2017,
obligation rate was generally high except for DepEd which was at 59.1%. Most of the major
departments have obligation rates that were above 90%. Allotments given by the DBM to
various agencies that allow them to incur obligations for specified amounts based on their
appropriations were obligated or contracted to suppliers. However, it may be noted that out of
the obligated amounts, many agencies have very low disbursement rates.

The DPWH and DOTr were able to obligate 92.1% and 84.1% of their respective allotments,
but disbursement rates were much lower at only 36.2% and 39.2%, respectively. The DepED
had high disbursement rate but it had very low obligation rate to begin with. While DPWH and
DOTr may have made progress in procurement (having successfully obligated most of their
allotments), low disbursement or settlement with suppliers and contractors indicates slow
delivery. With NG embarking on a massive infrastructure development program, it is imperative
to address problems that cause delays in delivery like the perennial issue on Right-of-Way.
 CPBRD / 2018 BUDGET BRIEFER 15

TABLE 12
STATEMENT OF ALLOTMENTS, OBLIGATIONS, DISBURSEMENTS AND BALANCES, 2017
SELECT DEPARTMENTS (AMOUNTS IN BILLION PESOS)

Obligation Unobligated Obligation Disbursements

Departments Allotments
Incurred Balances Rates (%) Amount Rate (%)

DPWH 674.9 621.9 53.0 92.1 225.9 36.3

DepEd 472.1 278.9 193.2 59.1 262.9 94.3
DILG 202.4 200.7 1.7 99.2 183.6 91.5
DND 217.1 205.6 11.5 94.7 142.5 69.3
DSWD 161.6 153.4 8.2 94.9 129.7 84.5
DOH 112.3 106.7 5.5 95.1 67.1 62.9
DOTr 82.3 69.2 13.1 84.1 27.1 39.2
DA 51.2 48.4 2.8 94.6 32.0 66.2
Note: a) Obligation Rates = % of Obligations over Allotments, b) Disbursement Rate = % of Disbursements over Obligations
Source of basic data: DBM website

REGIONAL ALLOCATION

Table 13 shows the regional breakdown of the NG budget for 2018. The aggregated budget for
the seventeen (17) regions amount to P2,753.8 billion or close to three-fourth (73.1%) of the
total P3,767 billion national budget for 2018. About P171.4 billion is allocated for Central
Offices and P841.8 billion is for programs/projects of nationwide application.

The budget can be an effective medium to redistribute resources and allow lagging regions to
catch up with more developed ones. A comparison of the regional budget shares to their
respective share or contribution to the country's gross domestic product (GDP) would show that
in 2018, the more economically-developed regions have negative net budget shares. This means
that NCR (-7.6%), Region IV-A (-8.2%), Region III (-1.4%), and Region VII (-1.5%) have lower
percentage shares of the budget relative to their respective percentage share of contributions to
GDP. These regions are, in effect, subsidizing the other regions like Regions V (3%), VIII
(2.5%), CARAGA (2%), ARMM (1.9%), and IV-B (1.8%).

In nominal terms, (aside from NCR where national offices like the Office of the President and
Congress are lodged) the highest allocation goes to Regions IV-A (P210.3 billion) and III
(P208.2 billion). However, these same regions (along with Region VII, ARMM and Region VI)
have the lowest per capita allocation. On the other hand, regions with relatively higher per capita
allocation (excluding NCR) are as follows: CAR (P36,615), CARAGA (P33,441), Region IV-B
(P31,412), Region VIII (P28,588), and Region X (P28,533).

Meanwhile, the regional distribution of the infrastructure outlay for 2018 shows that NCR,
Regions III and IV-A which are economic growth drivers of the country are the ones that will
benefit from higher infrastructure spending in 2018. Infrastructure outlay for NCR amounts to
P71.6 billion, while those of Regions III and IV-A are P34.5 billion and P29.8 billion,
 CPBRD / 2018 BUDGET BRIEFER 16

respectively. Note that the bulk of the infrastructure outlay are lodged at the Central Office
(P584.1 billion) and are categorized as "for nationwide application" (P116.6 billion) (see Annex B).

By department, the highest infrastructure outlay for 2018 goes to DPWH (P621.9 billion),
DepEd (P111 billion) DOTr (P45.9 billion), and DOH (P23 billion). It may be noted that bulk
of the budget for infrastructure of the abovementioned departments are still lodged at the
Central Office. In the case of DPWH, about three-fourth (76%) of its infrastructure outlay are
lodged with the Central Office (P400.4 billion), and the three economically-developed regions:
III (P25.1 billion), IV-A (P24.6 billion), and NCR (P22.4 billion).

TABLE 13
REGIONAL DISTRIBUTION OF THE 2018 NATIONAL BUDGET
GRDP Regional Budget 1/
Projected Per Capita
Average Net
2018 GRDP, % Share Allocation
Particulars Share (2012- Levels, in Share Rank
in Billion to Total (Level, in
2016) Billion Pesos [b-a]
Pesos [b] PhP)
[a]

NCR 6,506.9 37.3 817.3 29.7 (7.6) 63,464.9 1

CAR 317.3 1.8 63.1 2.3 0.5 36,615.0 2
Region I 540.9 3.1 111.1 4.0 0.9 22,113.5 11
Region II 313.4 1.8 87.9 3.2 1.4 25,456.6 8
Region III 1,568.2 9.0 208.2 7.6 (1.4) 18,558.3 15
Region IV-A 2,764.7 15.8 210.3 7.6 (8.2) 14,589.5 17
Region IV-B 282.4 1.6 93.1 3.4 1.8 31,412.0 4
Region V 368.5 2.1 141.6 5.1 3.0 24,433.3 10
Region VI 707.9 4.1 149.0 5.4 1.4 19,776.0 13
Region VII 1,133.1 6.5 136.9 5.0 (1.5) 18,510.2 16
Region VIII 370.2 2.1 126.9 4.6 2.5 28,587.9 5
Region IX 359.7 2.1 91.0 3.3 1.2 25,067.2 9
Region X 676.0 3.9 133.8 4.9 1.0 28,533.1 6
Region XI 724.3 4.1 130.3 4.7 0.6 26,619.3 7
Region XII 475.3 2.7 92.8 3.4 0.6 20,416.4 12
CARAGA 206.4 1.2 86.8 3.2 2.0 33,441.4 3
ARMM 2/ 141.0 0.8 73.7 2.7 1.9 19,490.9 14
TOTAL 17,456.1 100.0 2,753.8 100.0 27,270.4

1/ Total regional budget is net of allocations for Central Offices (P171.4 billion) and for nationwide application (P841.8 billion).
2/ ARMM IRA for 2018 was culled out from IRA of LGUs for Region IX and XII (based on Local Budget Memorandum 75-A)
Sources of basic data: 2018 Select Updated BESF Table based on GAA (DBM), PSA, and CPBRD for projected 2018 GRDP

ALLOCATION BY SPECIAL PURPOSE FUND

Table 14 presents the 2018 NG expenditure by Special Purpose Fund (SPF). Two major SPFs
are Allocations to Local Government Units – ALGU (P581.2 billion) and debt service for
interest payment (P354 billion). Both debt service and the Internal Revenue Allotment
 CPBRD / 2018 BUDGET BRIEFER 17

(P522.7 billion which accounts for 90% of ALGU) are automatically appropriated, hence, were
no longer subject to Congressional review unlike other expenditure items contained in the GAA.

Allocations to LGUs. Aside from the IRA that is distributed to all LGUs based on a formula
provided in RA 7160, the ALGU also includes the Local Government Support Fund-LGSF
(P31.4 billion) and the Special Shares of LGUs in the Proceeds of National Taxes (P23.1 billion).
The LGSF is used to provide assistance to LGUs for various priority local programs and
projects.

TABLE 14
NG EXPENDITURE BY SPECIAL PURPOSE FUNDS, 2016-2018
(AMOUNTS IN BILLION PESOS)
Increase/(Decrease)
Particulars 2016 2017 2018 Amount Percent
16-17 17-18 16-17 17-18

Allocations to Local Government Units 464.4 560.0 581.2 95.6 21.1 20.6 3.8
Debt Service -Interest Payment 304.5 334.9 354.0 30.4 19.1 10.0 5.7
Budgetary Support to Government Corporations 160.6 154.9 197.6 (5.7) 42.7 (3.5) 27.6
Pension and Gratuity Fund - 141.9 122.3 141.9 (19.7) - (13.9)
Miscellaneous Personnel Benefits Fund - 89.1 99.4 89.1 10.3 - 11.6
National Disaster Risk Reduction & Management Fund - 15.8 19.6 15.8 3.8 - 24.4
Customs duties and taxes, including Tax Expenditures - 19.5 19.5 19.5 - - -
Contingent Fund - 5.5 13.0 5.5 7.5 - 136.4
TOTAL 929.5 1,321.6 1,406.6 392.1 85.0 42.2 6.4
Source of basic data: 2018 Select Updated BESF Table based on 2018 GAA (DBM website)

There are specific assistance directed towards each level of LGU—i.e., Assistance to Cities7
(P2.6 billion) for environment-related projects to develop livable and eco-friendly communities
in urban areas, and Conditional Matching Grants to Provinces 8 (P8.2 billion) for the repair,
rehabilitation and improvement of roads and bridges. The DBM reports that as of 25 May 2018,
about P6.4 billion or more than three fourth (77.5%) of the appropriations for the Conditional
Matching Grants to Provinces has been released to the beneficiary provinces.

Meanwhile, the Assistance to Municipalities9 amounting to P11.7 billion is intended for projects
like local access roads, bridges, evacuation centers, potable water supply, water impounding

7 ALGU-Special Provision (4) states that Assistance to Cities shall be allocated based on population and land area.
8 ALGU-Special Provision (3) provides that the Conditional Matching Grant to Provinces (CMGP) for Road and Bridge
Repair, Rehabilitation and Improvement shall be used to support those compliant with the DILG’s Seal of Good Financial
Housekeeping and DBM-validated PFM Improvement Plan. Allocation shall be as follows: equal sharing (20%),
percentage share based on land area (10%), percentage share based on unpaved and poor to bad paved core roads (40%),
performance in similar nationally-funded projects (20%), and compliance with 2017 CMGP submission of requirements
(10%).
9 ALGU-Special Provision (2) provides that Assistance to Municipalities shall be allocated based on equal share, fiscal

capacity, per capita share, and share for good performance. The release of funds shall be subject to compliance with the
following: (1) requirements of the DILG Seal of Good Financial Housekeeping, (2) requirements of the DILG Local
 CPBRD / 2018 BUDGET BRIEFER 18

projects, and drug rehabilitation, among others. A separate Financial Assistance to LGUs
amounting to P7 billion can be used for vehicle purchases (e.g., ambulance, fire trucks, dump
trucks and patrol cars), installation of street lighting, insurance coverage for government facilities
in case of natural calamities, and "soft' projects involving medical, burial, transportation, food
and education assistance. Local infrastructure projects like the concreting or repair of
roads/bridges, drainage canal, water system, slaughterhouses, public markets, evacuation centers,
and sports facilities can also be funded under the Financial Assistance to LGUs.

Budgetary Support to GOCCs. The National Government provides under the 2018 GAA a
total of P197.6 billion as budgetary support to government corporations (BSGC). This amount
includes the P16.8 billion automatic appropriations for net lending or advances made for NG-
guaranteed debts (net of repayments). Total BSGC is P42.7 billion higher than the 2017
appropriations level.

Table 15 shows the top 10 GOCCs with budgetary support from the national government.
Roughly 65% of the total BSGC is accounted for by three GOCCs, namely: Philippine Health
Insurance Corporation (PHIC or PhilHealth), National Irrigation Authority (NIA), and the
Landbank of the Philippines (LBP). Notably, the highest allocation amounting to P60.6 billion
goes to PHIC for the expansion of National Health Insurance Program (NHIP) where premium
contributions of indigents, senior citizens, and point-of-service patients10 are sourced from
incremental revenues of RA 10351 (Sin Tax Law).

TABLE 15
BUDGETARY SUPPORT TO GOCCS, 2016-2018
(AMOUNTS IN BILLION PESOS)
GOCCs 2016 2017 2018

PHIC 42.33 53.22 60.63

NIA 27.88 38.38 41.67
LBP 5.83 - 25.62
NFA 10.65 5.10 7.00
BCDA 1.70 1.03 6.87
PNR 1.82 0.72 3.52
PCIC 1.60 2.50 3.50
NHA 13.90 12.69 3.26
DBP 5.00 - 3.13
PEZA 2.11 2.76 2.15
Total 112.82 116.39 157.35
Add: Other GOCCs 32.50 21.78 23.48
Net Lending 15.30 16.77 16.80
Grand Total 160.61 154.93 197.63

Source: 2018 Select Updated BESF Table Based on 2018 GAA (DBM website)

Development Council functionality assessment, and (3) assessment of PFM systems and adoption of the corresponding PFM
improvement measures.
10 Under the Point of Service (POS) Program, non-PhilHealth members who are classified as financially incapable to pay by

the Social Welfare Officer during hospital admission may immediately avail of PhilHealth benefits.
 CPBRD / 2018 BUDGET BRIEFER 19

The 2018 appropriations for PHIC are targeted as follows: (1) P37.1 billion for the coverage of
more than 15.4 million indigent families identified by DSWD; (2) about P17 billion for
5.4 million senior citizens and their qualified dependents; (3) P3 billion for the Point of Service
Program; (4) P3.5 billion for PhilHealth Plus or supplemental benefits for government
employees in the Executive branch; and (5) P108.5 million for PAMANA 11 and family
beneficiaries in the Bangsamoro.

Note that NG's budgetary support for the NHIP covers only the payment of insurance premium
in accordance with Section 2 of RA 7875 (Act Instituting the NHIP). According to the 2018
Veto Message, reimbursement of the actual cost of availing of health insurance is properly within
the responsibility of PhilHealth as the insuring agency, but no amount appropriated under
Special Provision No. 2 (BSGC-PhilHealth) may be used for such purpose.

The 2018 appropriations for the National Irrigation Authority (NIA) amount to P41.7 billion.
The budgetary support to NIA includes, among others, subsidies to the following: (1) operating
requirements of NIA and cost for the operations and maintenance of existing irrigation facilities
(P5.1 billion); (2) implementation of the National Irrigation Systems (NIS) and the Communal
Irrigation Systems (CIS) (P12.9 billion); and (3) Small Irrigation Projects and Pump Irrigations
Systems (P6.9 billion).

Note that NIA-Special Provision (1) on Subsidy for the Operating Requirements of NIA
provides that irrigation service fees or other similar fees shall not be collected from farmers and
farmers’ associations. According to the DBM, about P2 billion will cover the free irrigation
services to farmers owning eight (8) hectares of land or less, including amnesty for all their
unpaid irrigation fees.

On the other hand, budgetary support to LBP (P25.6 billion) is intended to subsidize the Tax
Reform Cash Transfer Program and provide for a loan facility for the Public Utility Vehicle
(PUV) Modernization Project. To mitigate effects of price increases due to the enforcement of
the comprehensive tax reform program, P24.5 billion was appropriated for the cash transfer
support to the bottom 50% poorest households identified by the DSWD. Meanwhile, an amount
of P1.3 billion may be used by LBP for the required equity of public utility vehicles (PUV)
owners when applying for loans to replace old jeepneys. The viability of the loan may have to be
assessed considering the repayment ability of the PUV owners.

Miscellaneous and Personnel Benefit Fund. Total appropriation for Miscellaneous and
Personnel Benefit Fund (MPBF) in 2018 amount to P99.4 billion. It covers the PS requirements
for the filling and creation of positions, and the deficiencies in authorized salaries bonuses,
allowances, associated premiums and other similar personnel benefits of NG personnel. Of the

11 Payapa at Masaganang Pamayanan Program (PAMANA) covers families in communities affected by conflict and
former combatants such as the Cordillera People's Liberation Army (CPLA), Moro National Liberation Front
(MNLF), and New People's Army (NPA).
 CPBRD / 2018 BUDGET BRIEFER 20

total MPBF, P62 billion has been appropriated to take care of the salary adjustments for the
military and uniformed personnel (MUPs) as mandated by Congress Joint Resolution No. 1, s.
2018 that modified the base pay schedule for MUPs, and which shall be implemented in two (2)
years—2018 and 2019.

Note that JR No. 1 (2018) repealed the grant of Provisional Allowance and Officers' Allowances
under Executive Order No. 201, s. 2016. Said EO is the legal basis for the implementation of
SSL IV, which did not cover the MUPs due to issues of automatic indexation of pensions to
salary rates of the retiree's counterpart in active service. Instead, Provisional Allowances were
granted to MUPs.

Also, JR No. 1 suspends the indexation of pension of retired MUPs but only for a year (1) or
until the Unified Pension Reform Act (UPRA) that will effectively repeal the indexation policy
will be passed, whichever comes first. Currently, the UPRA is still pending at committee level at
both Houses of Congress. If not passed within the period that the suspension expires
(31 December 2018), the base pay adjustment for MUPs will likewise require funding for the
pension increases of retired MUPs. According to the DBM, NG will have to pay P33.7 billion
in 2019 for arrearages this year (2018) as a result of the suspension pursuant JR No. 1.

It may be noted that P883.2 million of the total MPBF was appropriated to take care of the
increase in government counterpart contributions to PhilHealth, and the cost of additional
PhilHealth premium contributions for the expanded health benefits of NG personnel (including
inpatient and outpatient care).

Pension and Gratuity Fund. Total appropriation for Pension and Gratuity Fund (PGF) in
2018 amounts to P122.3 billion. The PGF covers the following expenditure items: (1) pensions
of AFP retirees, MUPs, and war veterans (P92.7 billion); (2) retirement and terminal leave
benefits of optional retirees of NG, personnel of financially-constrained GOCCs, and some
devolved personnel to LGUs (P23.2 billion); (3) separation benefits and/or incentives of affected
personnel due to rationalization, restructuring of agencies, rightsizing, merger, streamlining or
privatization (P2.7 billion); (4) monetization of leave credits (P2 billion); and (5) full settlement
of Total Administrative Disability (P1.6 billion).

The breakdown of the PGF shows that P92.7 billion (75.9%) is intended for MUPs, and
P26.8 billion (21.9%) is for civilian personnel. The remaining P2.8 billion (2.3%) was
appropriated as financial assistance/subsidy. The bulk of the appropriations for pension goes to
the MUPs as NG continues to shoulder in full the pensions of the MUP retirees. Only
P11.6 billion of the P92.7 billion budget for payment of pensions is for civilian personnel, and
the rest (representing 87.6%) is for MUPs.
 CPBRD / 2018 BUDGET BRIEFER 21

Disaster Risk Reduction and Management Fund. Under the 2018 GAA, the National
Disaster Risk Reduction and Management Fund (NDRRMF) amounts to P19.6 billion. This
Fund may be used for rehabilitation, reconstruction, aid/relief to communities affected by man-
made and natural calamities (including pre-disaster activities). The NDRRMF includes the
Marawi Recovery, Rehabilitation and Reconstruction Program (P10 billion), Quick Response
(P7.6 billion), and the insurance coverage of government facilities against calamities (P2 billion).

GENERAL PROVISIONS AND THE PRESIDENT'S VETO

On Income Retention. Under a One Fund concept, all incomes of the government go to the
General Fund of the Bureau of the Treasury (BTr) subject to future appropriations by Congress.
However, some funds as mandated by laws or Special Provisions in the GAA are retained by
particular agencies or set aside in Trust Fund for specified purposes.

In the case of the Energy Regulatory Commission (ERC), the President directly vetoed the use
of its income to augment the operational requirements of the Commission. The Veto Message
explained that such income sources have already been included in the non-tax revenue program
for 2018, hence, granting the ERC of the use of its income could result in double programming.

On the other hand, the President placed on conditional veto the creation of a revolving fund for
the Research and Development Institutes of the DOST and the use of collections by the
Dangerous Drugs Board (DDB), subject to collections in excess of those forming part of the
revenue sources programmed for 2018.

Also under conditional veto is the establishment of a trust fund to be constituted from the
express lane fees and charges collected by the Bureau of Immigration (BI) for the payment of
salaries and overtime charges of BI employees. Such trust fund was granted only until a new
Immigration Modernization Law is enacted to upgrade the compensation system in the Bureau.

On Impoundment of Funds. Section 61 of the GAA 2018 General Provisions refers to

impoundment as the refusal of the President to release duly appropriated funds for
program/activity/project (PAP) of government entities with the intention of cancelling or
delaying its utilization. Impoundment may be done through—(1) rescission or the cancellation
of all or part of an enacted appropriation which has not yet been released, or (2) deferral or the
temporary withholding of the release of all or part of an enacted appropriation of selected
government entities.

However, the Veto Message clarifies that deferral does not pertain to instances where GAA as
the Allotment Order do not apply: (1) appropriation that by virtue of law, general or special
provisions, and rules and regulations have conditions or requirements before release; (2) lump
sum appropriations in the agency budget and Special Purpose Funds (SPFs) that have no detail
 CPBRD / 2018 BUDGET BRIEFER 22

necessary for release; and (3) those requiring a Special Budget under the general and special
provision of the 2018 GAA (Section 3 of GAA-General Provisions).

The 2018 GAA places upon Congress greater power over the budget whereby impoundment
does not become an Executive prerogative. Section 63 of the General Provisions states that the
President may propose the rescission of appropriations to both Houses of Congress—(1) if the
appropriations are no longer required to fulfill the objectives originally sought to be achieved by
the PAPs, or (2) in case of unmanageable deficit. Congress shall act on the proposed rescission
or deferral by issuing a Joint Impoundment Resolution within forty (40) session days after receipt
of the proposal. Congressional inaction within said period is equivalent to disapproval of the
impoundment proposal. Note that impounded funds shall not thereafter be available for
expenditure except by subsequent legislative enactment.

On Savings and Augmentation. Public funds should be spent as they are provided for in the
GAA. Any augmentation or modification in the allotment as a result of savings should be done
within parameters that still preserve the overall intent of the appropriations law. Section 69 of
the General Provisions defines "savings" as the portion or balances of any released
appropriations which have not been obligated as a result of: (1) completion, final discontinuance,
or abandonment of a PAP for which the appropriation is authorized, or (2) implementation of
measures resulting in improved systems and efficiencies that allowed the agency to meet planned
targets at a lesser cost. Where final discontinuance or abandonment is used as basis for declaring
savings, such discontinued or abandoned PAP shall no longer be proposed for funding in the
next two (2) fiscal years. This essentially discourages the declaration of savings from programs
that have yet to be completed.

Constitutional offices are authorized to use savings to cover a deficiency in any existing PAP
within their respective offices due to unforeseen modifications in PAPs or re-assessment in the
use and distribution of resources. Note that expenditures to be funded from savings should be
within the scope of, or covered by an existing PAP (Section 70, General Provisions).

Agencies may modify the allotment issued within a PAP. Agency heads can modify the object of
expenditure (salaries, travelling expenses) within an allotment class (PS, MOOE, FE, CO).
Meanwhile, the DBM can make change from one allotment class to another, from one operating
unit to another, and within a Special Purpose Fund. It can also make modifications for the
payment of magna carta benefits12. Finally, the President can modify allotments for the payment
of intelligence funds within the Executive Branch (Section 7, General Provisions).

On Budget Oversight. The 2018 National Budget has placed greater emphasis on
infrastructure projects in support of the Administration's Build, Build, Build Program. To ensure
transparency in the implementation of these projects, Section 91 (General Provisions) requires all

12These refer to payment of magna carta benefits of public health workers, school teachers, social workers, scientists, engineers
and researchers, and other science and technology personnel.
 CPBRD / 2018 BUDGET BRIEFER 23

agencies to post the status of their respective infrastructure projects (including geo-tagged
photos) on the agency website.

Agencies should post the following details: (1) name of contractor, (2) location of the project,
(3) project cost, (4) start of construction, (5) target date of completion, (6) description of the
project, (7) sources of fund, (8) implementing office, responsible official and contact number and
email address, (9) completion rate, (10) project status and reasons in case of delay, and (11) other
information that COA may require. In addition, Sec. 98 (General Provisions) requires the posting
of detailed actual cost of the project, and the variation orders issued.

For two consecutive years now (starting 2017), the GAA mandates the Congressional Oversight
Committee on ODA (COCODA) to conduct a debt audit of 20 contracted loans (see Annex C).
House Resolution No. 1047 was filed this 17th Congress (1st Regular Session) seeking as well for
the conduct of the debt audit. The 2018 GAA provides that said debt audit shall focus on the
institutional reforms that must be undertaken by NEDA to ensure prudence in entering into new
loan agreements.

Section 101 of the 2018 GAA-General Provisions also provides that both Houses of Congress
shall constitute a Joint Congressional Oversight Committee on Public Expenditures (JOCPE) to
monitor the compliance by agencies with the requirements and/or conditions in the utilization of
public funds under the GAA.

The Transparency Seal which is an online facility hosted in the agency websites can be a rich
source for budget oversight provided compliance by agencies to timely/up-to-date posting of
required financial data is enforced. The Budget and Financial Accountability Reports (BFARs)
required under COA-DBM Joint Circular 204-1 should be made available in the Transparency
Seal. These reports could show progress (within the fiscal year) of the levels of obligations,
disbursements and balances, revenues and receipts, and accounts payables, among others.13

Other reports required for posting in the agency Transparency Seal include, among others, the
following: (1) annual procurement plans, and contracts awarded with winning bidders; (2) status
of implementation, and evaluation reports of major programs and projects; (3) modifications
made pursuant to GAA provisions; and the (4) annual report on the status of retained incomes
that are deposited outside of the National Treasury (Section 93).

SUMMARY

The 2018 National Budget lays down the thrusts and priorities of the Duterte Administration.
While the social services sector continues to receive the highest appropriations, it is the
economic services sector that enjoys the biggest increment—significant enough to shift budget

13More discussion on the Transparency Seal and the description and usefulness of the BFARs is available in “A
Legislator’s Guide in Analyzing the National Budget” 3 rd Edition, August 2016.
 CPBRD / 2018 BUDGET BRIEFER 24

shares in favor of the economic sector. A hefty increase in the budget for economic service can
be attributed to higher planned spending for infrastructure development.

On the other hand, appropriations for social services are intended to support the expansion of
major programs such as: (1) the free tuition fee for students in higher education, (2) the health
insurance that covers indigents, senior citizens, and families in conflict areas, (3) the voucher
program for junior and senior high school students in private schools, (4) the conditional cash
transfers under the 4Ps, and (5) the cash subsidies to mitigate effects of price increases to poor
households due to the implementation of the comprehensive tax reforms.

The implementation of these socio-economic programs relies largely on NG's ability to raise the
necessary revenues to finance and sustain the provision of education, health insurance and cash
subsidies. Scaling up the NHIP to provide universal coverage (with expanded benefits) will have
to be carefully balanced with future flows from earmarked taxes. Even as funds are available, it
is also important to address problems affecting the absorptive capacity of line agencies especially
of those involved in infrastructure projects. Any unused appropriations should primarily stem
out of efficiency measures adopted during program and project implementation.

The Program Expenditure Classification (PREXC) was adopted for the first time to organize the
national budget. It should give a better picture of the extent that NG spends for related
activities and sub-programs within the agency. With performance indicators attached to each
agency program, Congress should be able to review subsequent budget requests of the agencies
in view of their respective targets and organizational outcomes. It is with careful review and
watchfulness that Congress can affirm whether or not the 2018 national budget has truly been
instrumental in transforming the living conditions of Filipinos, and that public services have
become more convenient and reliable.

REFERENCES

Manalo, Pamela (August 2016). An Analysis of the Budgetary Support to Government Corporations.
CPBRD Discussion Paper (Issue No. 2) Congressional Policy and Budget Research Department.
Congressional Policy and Budget Research Department (August 2016). A Legislator’s Guide in Analyzing
the National Budget (3rd Edition).
_____________ (September 2017). Budget Utilization Performance of the National Government. 2018
Budget Briefer No. 2017-04.
Republic of the Philippines (24 July 2017). The President's Budget Message for Fiscal Year 2018: A
Budget That Reforms and Transforms.
Fiscal Year 2018 President’s Veto Message. Published in the Official Gazette (29 December 2017).
National Budget Memorandum No. 128. Budget Priorities Framework for the Preparation of the FY
2018 Agency Budget Proposals Under Tier 2 of the Two-Tier Budgeting Approach (issued 23 March
2017 by the DBM).
Budget of Expenditures and Sources of Financing (BESF) for various years.
Republic Act No. 10964 (General Appropriations Act for 2018).
FY 2018 Allocation for the NHIP. Available online: www.dbm.gov.ph (accessed June 2018).
Philippine Statistics Authority (PSA) for macroeconomic variables.
 CPBRD / 2018 BUDGET BRIEFER 25

ANNEX A
2018 SUMMARY OF PROGRAMS FOR DPWH, DEPED, DILG, DND, DSWD, AND DOH
(AMOUNTS IN MILLION PESOS)
Share (%) Share (%) to
to Total Total Budget of Implementing
OOs/Programs Amount
Operations Implementing Department/Agency
Budget a/ Department

Support to School and Learners 342,018.0 18.94 58.90 DepEd-OSec

Network Development 185,507.0 10.27 28.50 DPWH
Basic Education Inputs 169,080.6 9.36 29.12 DepEd- OSec
Flood Management 127,734.5 7.07 19.63 DPWH
Local 118,960.5 6.59 18.28 DPWH
Crime Prevention and Suppression 110,208.7 6.10 63.94 DILG-PNP
Promotive Social Welfare 99,893.4 5.53 70.38 DSWD- OSec
Asset Preservation 64,982.1 3.60 9.98 DPWH
Land Forces Defense 54,579.7 3.02 36.39 DND-PA
Convergence and Special Support 50,963.5 2.82 7.83 DPWH
Health Systems Strengthening 41,238.0 2.28 37.55 DOH- OSec
Bridge 35,734.5 1.98 5.49 DPWH
Protective Social Welfare 34,023.4 1.88 23.97 DSWD- OSec
Joint Force Capability 28,721.0 1.59 19.15 DND-GHQ-AFPWSSUs
Health Facilities Operation 27,580.7 1.53 25.12 DOH- OSec
Public Health 19,594.0 1.08 17.84 DOH- OSec
Air Force Defense 18,055.8 1.00 12.04 DND-PAF
Naval Forces Defense 17,492.6 0.97 11.66 DND-PN
Inmates' Safekeeping and Development 13,484.1 0.75 7.82 DILG-BJMP
Fire and Emergency Management 11,751.9 0.65 6.82 DILG-BFP
Education Policy Development 7,236.5 0.40 1.25 DepEd- OSec
Civil Protection 6,408.6 0.35 4.27 DND-GHQ-AFPWSSUs
Disaster Response and Management 4,899.9 0.27 3.45 DSWD- OSec
Social Health Protection 4,870.2 0.27 4.44 DOH- OSec
Local Government Empowerment 3,828.5 0.21 2.22 DILG- OSec
Education Human Resource Development 3,421.0 0.19 0.59 DepEd- OSec
Public Safety Education 1,667.6 0.09 0.97 DILG-PPSC
Veteran Health Care 1,275.4 0.07 0.85 DND-VMMC
Inclusive Education 1,251.9 0.07 0.22 DepEd- OSec
Police Administration 1,224.0 0.07 0.71 DILG-NPC
Small Arms Ammunition, Weapons and Munitions 1,101.3 0.06 0.73 DND-GA
Local Government Performance Oversight and
1,028.1 0.06 0.60 DILG- OSec
Recognition and Incentives
Civil Protection 985.0 0.05 0.66 DND-OCD
Social Welfare and Development Technical Assistance
929.9 0.05 0.66 DSWD- OSec
and Resource Augmentation
Joint Force Planning Program 830.218 0.05 0.55 DND-GHQ-AFPWSSUs
Health Emergency Management 817.2 0.05 0.74 DOH- OSec
Health Regulatory 754.2 0.04 0.69 DOH- OSec
National Nutrition Management 691.3 0.04 0.63 DOH-NNC
Crime Investigation 667.9 0.04 0.39 DILG-PNP
Veterans' Welfare and Benefits Administration of Prog. 462.3 0.03 0.31 DND-PVAO
Museums 453.4 0.03 0.08 DepEd-Nat’l Museum
Philippine Population Management 340.1 0.02 0.31 DOH-Com Population
Fire Prevention Management 337.2 0.02 0.20 DILG-BFP
Health Policy and Standards Development 213.9 0.01 0.19 DOH- OSec
LGU and DILG LG-Sector Personnel Capacity Dev't 203.1 0.01 0.12 DILG-LGA
Juvenile Justice and Welfare 189.9 0.01 0.13 DSWD-JJWC
Veterans Memorial and Historical Preservation 171.0 0.01 0.11 DND-PVAO
Defense Policy and Strategy Management 145.7 0.01 0.10 DND- OSec
Child Rights Coordination 69.0 0.00 0.05 DSWD-CWC
 CPBRD / 2018 BUDGET BRIEFER 26

Share (%) Share (%) to

to Total Total Budget of Implementing
OOs/Programs Amount
Operations Implementing Department/Agency
Budget a/ Department

Social Welfare & Dev't Agencies Regulatory 67.9 0.00 0.05 DSWD- OSec
Epidemiology and Surveillance 63.7 0.00 0.06 DOH- OSec
Early Childhood Care and Development 40.9 0.00 0.01 DepEd-ECCDC
Special Secondary Education for the Arts 39.6 0.00 0.01 DepEd-PHSA
Crime Prevention 39.1 0.00 0.02 DILG-NPC
Persons with Disability Rights 36.9 0.00 0.03 DSWD-NCDA
Inter-Country Adoption 34.0 0.00 0.02 DSWD-ICAB
National Defense and Security Education 33.1 0.00 0.02 DND-NDCP
Local Book Publishing Industry Development 21.3 0.00 0.00 DepEd-NBDB
National Defense and Security Policy Studies 16.4 0.00 0.01 DND-NDCP
Veterans Affairs Management 15.4 0.00 0.01 DND-PVAO
Child-Friendly Television Development 9.0 0.00 0.00 DepEd-NCCT
Inter-Country Adoption Regulatory 8.7 0.00 0.01 DSWD-ICAB
Total 1,618,503.8 89.6

Total Operations Budget (all NG Departments) 1,806,230.5

a/ Programs are arranged based on shares to total operations budget of all departments which amounts to P1,806.2 million
(net of Special Purpose Funds).
 ANNEX B
2018 INFRASTRUCTURE OUTLAYS, BY REGION
(IN BILLION PESOS)
Particulars Total NW CO NCR CAR I II III IV-A IV-B V VI VII VIII IX X XI XII CARAGA ARMM
Departments 874.7 - 583.5 48.3 9.0 16.5 10.4 28.2 26.7 11.0 20.3 15.9 15.7 17.9 8.6 13.7 14.5 10.6 9.0 14.8
Congress 0.0 - - 0.0 - - - - - - - - - - - - - - - -
OP 0.3 - - 0.3 - - - - - - - - - - - - - - - -
DAR 1.0 - 1.0 - - - - - - - - - - - - - - - - -
DA 15.5 - 2.1 0.5 0.6 1.0 0.8 1.5 1.0 0.7 1.2 1.2 0.7 0.6 0.5 0.6 1.2 0.7 0.6 -
DBM 0.3 - 0.1 0.2 - 0.0 - - - - - - - - - - - - - -
DepEd 111.0 - 107.3 3.7 - - - - 0.0 - - - - - - - - - - -
SUCs 12.4 - - 3.1 0.4 0.7 0.4 1.2 0.4 0.4 0.8 0.9 0.3 1.2 0.4 0.6 0.6 0.4 0.4 0.4
DOE 0.1 - - 0.1 - - - - - - - - - - - - - - - -
DENR 6.5 - 2.5 0.0 0.2 0.2 0.2 0.2 0.2 0.3 0.3 0.2 0.2 0.3 0.4 0.3 0.2 0.3 0.4 -
DOF 0.8 - 0.3 0.5 - - - - - - 0.0 - - - - - - 0.0 - -
DFA 1.2 - - 1.2 - - - - - - - - - - - - - - - -
DOH 23.0 - 23.0 - - - - - - - - - 0.0 0.0 - - - - - -
DILG 3.0 - 0.0 2.3 0.0 0.0 0.0 0.0 0.1 0.0 0.1 0.0 0.0 0.2 0.0 0.0 0.0 0.0 0.0 0.0
DICT 0.1 - 0.1 - - - - - - - - - - - - - - - - -
DOJ 0.7 - 0.6 0.1 - - - - - - - - - - - - - - - -
DOLE 0.2 - 0.0 0.2 0.0 - - - 0.0 - - - - 0.0 - - 0.0 - - -
DND 1.9 - - 1.9 0.0 - - - - - - - - - - - - - - -
DPWH 621.9 - 400.4 22.4 7.6 14.3 8.8 25.1 24.6 9.4 17.8 13.4 14.4 15.5 7.1 12.1 12.3 9.1 7.5 -
DOST 2.3 - - 0.4 0.1 0.1 0.1 0.1 0.3 0.2 0.0 0.1 0.1 0.1 0.1 0.1 0.1 0.2 0.2 -
DSWD 1.5 - 1.4 0.1 - - - - - - - - - - - - - - - -
DOT 0.0 - - 0.0 - - - - - - - - - - - - - - - -
DTI 0.0 - 0.0 0.0 0.0 0.0 0.0 0.0 0.0 - 0.0 0.0 0.0 0.0 0.0 0.0 0.0 - 0.0 -
DOTr 45.9 - 43.8 2.1 - - - - - - 0.1 - - - - - - - 0.0 -
NEDA 0.4 - 0.3 - - - 0.0 0.0 - - 0.1 - - 0.0 - - - - - -
OEO 6.6 - 0.3 6.1 0.0 - - - 0.0 0.1 - 0.0 - - - 0.0 - - - -
ARMM 14.4 - - - - - - - - - - - - - - - - - - 14.4
Judiciary 3.0 - - 3.0 - - - - - - - - - - - - - - - -
CSC 0.1 - 0.1 - 0.0 - 0.0 0.0 0.0 - - - - 0.0 - - 0.0 - 0.0 -
COA 0.2 - 0.0 - 0.0 - 0.0 0.0 - - 0.0 - - - - - - - 0.0 -
COMELEC 0.0 - 0.0 - - - - - - - - - - - - - - - - -
Ombudsman 0.1 - - 0.1 - - - - - - - - - - - - - - - -
CHR 0.0 - - 0.0 - - - - - - - - - - - - - - - -

SPF 193.7 116.6 0.6 23.2 2.8 3.9 3.6 6.3 3.2 3.0 2.9 4.3 4.6 3.9 2.9 3.0 2.4 2.9 3.0 0.4
BSGC 51.6 - 0.6 21.2 1.6 2.2 2.1 4.3 1.2 1.6 1.4 2.4 2.3 2.7 1.9 1.3 1.3 1.8 1.7 -
ALGU-MMDA 1.6 - - 1.6 - - - - - - - - - - - - - - - -
IRA 104.5 104.5 - - - - - - - - - - - - - - - - - -
LGSF 23.9 - - 0.4 1.2 1.6 1.5 2.1 1.9 1.4 1.5 2.0 2.3 1.2 1.0 1.6 1.1 1.1 1.3 0.4
NDRRMF 12.0 12.0 - - - - - - - - - - - - - - - - - -
TOTAL 1,068.4 116.6 584.1 71.6 11.8 20.4 14.1 34.5 29.8 14.0 23.3 20.2 20.3 21.8 11.5 16.7 16.9 13.5 12.1 15.2

Source: 2018 Select Updated BESF Table Based on 2018 GAA

 ANNEX C
FOREIGN DEBT SERVICE FOR REGULAR LIABILITIES OF THE NG, AS OF YEAR-END
(AMOUNTS IN MILLION PESOS)
Last
DMFAS Year of
Loan Account Project/Purpose Implementing Agency 2015 2016 2017 2018
Loan ID Repayment
Date
ADB
1048-PHI 21142001 Irrigation Systems Improvement NIA 15.11.2015 - - - -
1049-PHI CON 21148001 Irrigation Systems Improvement DOH/NIA 15.05.2019 6.64 4.59 2.72 0.83
1473-PHI 21174000 Sixth Road Project DPWH 15.05.2021 40.88 34.97 28.47 21.30
1667-PHI 21187000 Agrarian Reform Communities Project DAR 15.12.2023 35.96 32.84 29.41 25.62
1668-PHI 21188000 Southern Philippines Irrigation Sector Project DENR/NIA 15.08.2023 28.29 25.84 23.14 20.16
2282-PHI 21201000 Power Sector Development Program DOF 15.11.2021 289.04 251.78 210.74 165.47
IBRD
4108-PH 22171000 Third Elementary Education Project DOF/DECS 15.01.2017 11.33 3.89 - -
7689-PH 22204000 Second Agrarian Reform Communities Development Project 2 DAR 15.09.2033 8.97 8.97 8.97 8.97
7152-PH 22212000 Second Agrarian Reform Communities Development Project DA/DENR/DAR 15.10.2022 29.02 24.87 20.72 16.57
8421-PH 22231000 Philippine Rural Development Project DA 15.04.2044 45.10 81.88 118.91 118.91
Japan EXIM Bank
JBIC UNTIED PSDP 26188000 Power Sector Development Program RP 15.11.2021 144.61 123.32 97.42 71.23
JICA
PH-P085 23153000 Small Water Impounding Management DPHW 20.01.2018 2.74 1.69 0.51 -
PH-P103 23167000 South Luzon Expressway Construction Project I DPWH 20.02.2020 6.67 5.31 3.71 2.10
PH-P106 23170000 Pampanga Development Flood Control DPWH 20.02.2020 13.53 10.77 7.54 4.27
PH-P202 23432000 Bohol Irrigation Phase II NIA 20.12.2029 34.64 33.03 30.46 27.90
PH-P221 23448000 Help for Catubig Agricultural Advancement DPWH/DOH/DA/DENR/DAR/NIA/MDFO 20.05.2031 24.43 23.54 22.00 20.46
PH-P076 63237000 CALACA II Coal-fired Thermal PSALM (NPC) 20.09.2017 31.15 15.94 - -
PH-P110 63245000 Angat Water Supply Optimization MWSS 20.02.2020 11.46 9.12 6.38 3.61
PH-P130 63247000 CALACA I Coal-fired Thermal Power Plant PSALM (NPC) 20.03.2023 9.08 8.06 6.75 5.43
PH-P141 63262000 CALACA II Coal-fire Thermal Power Plant Additional Financing PSALM (NPC) 20.12.2024 18.84 17.14 14.87 12.59
PH-P184 23419000 Third Elementary Education Project DECS 20.03.2027 44.58 41.65 37.47 33.26
French Protocol
P-97-#908-ODI 29551000 Global Maritime Safety DOTC 31.12.2024 3.70 3.14 2.72 2.30
Other Foreign Creditor
RZB 219.399
19.74 16.74 14.55 12.30
EUR23.9M 29488000 Emergency Network Project DILG 18.10.2024