5 things you need to know about PNoy’s Disbursement Acceleration Plan (DAP)

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1. Disbursement Acceleration Plan (DAP) is a government stimulus package.

It was meant to address the government’s low-level spending. Did it work?

The World Bank in March 2012 stated in their quarterly report on the Philippines: “The government’s Disbursement Acceleration Plan was partially successful and contributed 1.3 percentage points (ppt) to GDP growth in Q4”

In 2012, the National Statistical Coordination Board reported: 6.6 GDP. As of the 2nd quarter of 2013, the economy posted 7.6 GDP.

2. The Department of Budget and Management realigned unreleased appropriations from 2010, and 2011 plus windfall revenues from government-owned and controlled corporation dividends.

3. As of December 2011, the government announced that it had already spent 85% of DAP.

As of March 2012, the World Bank reported that 53% of DAP were released to National Government Agencies, and 37% to Government Controlled and Owned Corporations as well as 10% to local government units.

4. Former Budget Secretary Ben Diokno is questioning the propriety of DAP. What did Former Budget Secretary Diokno say about DAP in 2011? Here’s this article from Malaya’s business section:

“With only 10 weeks remaining of the year, the P72-billion acceleration program will barely have an impact on the country’s growth target.

“With 10 weeks to go before the end of the year, and the slow-moving bureaucracy, I expect that, at best, only one-tenth of the proposed outlay will be spent this year, the rest will be spent next year,” said Benjamin Diokno, University of the Philippines economist.

Diokno said that 10 percent of P72 billion, or P7.2 billion, won’t make much difference in a P10-trillion economy.”

5. So why were Senators involved? Budget Secretary Florencio Abad said on DAP releases in 2012: “2012, most releases were made during the period October-December, based entirely on letters of request submitted to us by the Senators.”

Image credit: Screenshot of World Bank’s Table 4.1, Philippines Quarterly Update (March 2012)

Cocoy Dayao

Cocoy is the Chief Technology Officer of Lab Rats Technica, a Digital Consulting company that specialises in DevOps, iOS, and Web Apps, E-Commerce sites, Cybersecurity and Social Media consulting. He is a technology enthusiast, political junkie and social observer who enjoys a good cup of coffee, comic books, and tweets as @cocoy on twitter.

Cocoy is also the Managing Director and Editor-in-Chief of the ProPinoy Project.

Cocoy considers himself to be Liberal.

  • Francisco Jr Santos

    My concern is the RATPLAN implementation of government agencies. there are complaints that the benefits and other receivables of affected employees are not paid in full. our office will implement the RATPLAN before the end of 2013 and we have apprehension of having to wait for a long time until we receive what is due us. With MILLIONS for PDAF and now DAP what about us government employees?? we tire and sick of corruption!!!

  • GabbyBD

    to be fair to diokno, his comments on DAP NOW criticize different features of the program than the quote pertains to.

    i prefer to NOT talk about personalities, but on arguments. i can see how diokno said what he said, but he did ALSO say that this is also an issue with the legislative bodies too.

    needless to say, that last part (about the congress being responsible for this too) is LOST on people aching for ammunition to arm their sensationalist arguments.

  • UPnnGrd

    The most important thing is what PersiNoynoy wants to remind everybody. Hindi si PersiNoy ang dapat ninyong uriratin, the one to make urirat eh si Lola Gulor-ya!!!!

  • Diokno gets on my nerves. He seems one of these pinched people who leverages himself up by deriding others. Kind of a negative aura. But maybe that is just me.

    • andrew lim

      he’s a good economist, but i believe his loyalty lies with the Estradas, having served as their Budget Secretary.

      • manuelbuencamino

        Yes Andrew. And he is even more grateful to Estrada because he is the only president who took him seriously enough to appoint him Budget Secretary. Remember he was budget undersecretary during Cory’s time but he just never made the grade until Erap came around.

    • manuelbuencamino

      Me too.

  • Adrian Cuenca

    I think you should add an item about it’s legality.

    • cocoy

      I’m not a lawyer so i can not claim to know about its legality. Government claims it is legal. The opposition using the same section in the constitution says, “that’s not what it says!” So for them, illegal. Fr. Bernas says it is illegal. Thing is…DAP isn’t secret. Been on the news for two years. It was also the subject of several reports, including that world bank report. Two years, and no one noticed its legality..? As I pointed out Diokno made a comment about it in 2011.

      • manuelbuencamino

        Legal opinions. The operative word is opinion. And so when a public official acts on a matter where the law is subject to opinions then the presumption of regularity or legality kicks in and it stays so until the SC says otherwise.