President Aquino submits 1.816T results-focused 2012 budget to Congress

Editor’s note: The Palace issued this press release. We are republishing it in full.

PNOY SUBMITS 2012 PROPOSED P1.816T RESULTS-FOCUSED BUDGET TO CONGRESS

ABAD: 2012 SPENDING ENSURES DIRECT BENEFITS TO THE PEOPLE

President Benigno S. Aquino III today submitted to Congress the proposed National Budget of P1.816 trillion for 2012 that focuses on achieving the Aquino Social Contract with the Filipino People.

The proposed budget is higher by 10.4 percent or P171 billion over the current year’s P1.645-trillion National Budget, and represents 16.5 percent of the projected gross domestic product (GDP). It is based on a conservative growth assumption of 5.5 percent, even as the administration continues to strive for 7 to 8 percent growth.

“This budget embodies our commitment to lift the poor from poverty through honest and effective governance. It is intently focused on fulfilling my administration’s Social Contract with the Filipino People,” President Aquino said in his Budget Message to Congress.

“This proposed budget is a Results-Focused Budget,” he emphasized.

Budget and Management Secretary Florencio B. Abad, who delivered the Budget of Expenditures and Sources of Financing and other documents to the House of Representatives, said the proposed National Budget for 2012 seeks to make the dividends of good governance reach the poor in “a direct, immediate and substantial way.”

He said the proposed budget seeks greater focus in funding and fulfilling the priorities identified in the Social Contract, particularly: anti-corruption and good governance, poverty reduction and the empowerment of the poor, inclusive economic growth, just and lasting peace and the rule of law and integrity of the environment.

“We again applied the zero-based budgeting (ZBB) approach to eliminate ineffective and inefficient spending. This allowed us to focus our resources on priorities, so that each and every peso we spend will count in empowering the poor,” he said. 

“Moreover, this proposed budget sustains our new tradition of transparency, accountability and citizen participation in public expenditure,” he said.

To intensify transparency and accountability, the administration fleshed-out P150.5 billion in lump-sum funds into regional and sub-regional allocations. The proposed budget again mandates the disclosure of budget information on agency website.

The proposed budget was also the first to go through a process of consultations with civil society organizations (CSOs). Six departments and three government firms—Departments of Education (DepEd), Health, Social Welfare and Development, Public Works and Highways, Agriculture (DA) and Agrarian Reform; National Food Authority, National Housing Authority and National Home Mortgage and Finance Corporation—piloted this new process.

ALLOCATION BY SECTOR

Abad said that consistent with the goal to ensure ample education, public health and social protection for the poor, spending on the Social Services sector receives a significant share of P575.8 billion, equivalent to 31.7 percent of the National Budget. It is higher by 10.4 percent or P54.4 billion over its budgetary allocation of P521.4 billion this year.

Meanwhile, the Economic Services Sector receives P438.9 billion or 24.2 percent of the proposed budget in order to support rapid, sustained and inclusive growth. The 2012 level is higher by 21.3 percent or P77 billion over the sector’s P361.9-billion budget this year.

The Debt Burden follows with P356.1 billion or 19.6 percent of the proposed budget: a 4.3-percent decline from P372.1 billion in 2011. Lastly, the General Public Services and Defense Sectors receive shares of 18.3 percent or P332.1 billion and 6.2 percent or P113.1 billion, respectively, of the proposed National Budget.

TOP DEPARTMENTS

The Department of Education (DepEd) continues to receive the highest budgetary allocation of P238.8 billion: a 15.2 percent increase from its budget of P207.3 billion this year. This budget will fund the hiring of 13,000 more teachers next year, construction and 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 in schools nationwide.

The Department of Public Works and Highways remains in second place, with a significant increase of 13.5 percent to P125.5 billion, from P110.6 billion in 20121. This will support the Aquino administration’s goal to complete the national road and bridge network by 2016. 

The Department of National Defense will receive P107.9 billion, which is higher by 3.1 percent over its current year’s budgetary allocation. Meanwhile, the Department of Interior and Local Government will receive P101.4 billion, an increase of 15.1 percent.

The Department of Agriculture, at fifth, will receive the largest budgetary increase of 53.6 percent to P54.1 billion, from P35.2 billion in 2011 to support the Rice and Food Self-Sufficiency agenda of the administration.

The Department of Social Welfare and Development (DSWD), at sixth, will receive P49.4 billion in 2012 from P34.3 this year—an increase of 43.9 percent—to support the expansion of the Pantawid Pamilyang Pilipino Program (4Ps) to cover 3 million indigent households.

For inquiries, further questions and requests for interview, please contact:

OSEC-Public Information Unit (735 4929, 0908 869 8170,[email protected])

Look for Mr. Francis Capistrano, Ms. Louie Belmonte or Mr. Jeeno Arellano

The ProPinoy Project