Disbursement Acceleration Plan

5 Things you should know about the #DAP

Screenshot 2013-10-02 21.55.08
  1. Disbursement Acceleration Plan (DAP) is a government economic stimulus package created to increase government spending in 2011.

The World Bank noted in a quarterly report on the Philippines that DAP boosted the economy.

“The government’s Disbursement Acceleration Plan was partially successful and contributed 1.3 percentage points (ppt) to GDP growth in Q4″

(please see: World Bank: Philippines Quarterly Report March 2012)

  1. #DAP is NOT a secret fund or program. Has been in the news as early as October 2011.

Ben Diokno has argued the same things he did in 2011 as he did in 2013.

  1. The Department of Budget and Management realigned unreleased appropriations from 2010, and 2011 plus windfall revenues from government-owned and controlled corporation dividends to fund #DAP

  2. As of December 2011, Government spent 85% of the PHP72B initial DAP fund of which, 6% were for lawmaker nominated projects, DBM Secretary Abad says in a press conference yesterday afternoon (October 3, 2013).

  3. DBM Abad argues that the realignment was done through Constitutional provision on power of President to realign. On the argument that you can not fund projects not in the GAA, Abad argues that the budget has two aspects: Programmed and unprogrammed. Programmed are those projects or activities of the government with allocated monies. Unprogrammed ones are projects or activities that have no funding source yet, but should monies become available, for example: SC declares 70 billion Coco Levi fund is the government’s so the government can use that monies to fund unprogrammed parts of the budget.

Image Source: WB Philippines Quarterly Update (March 2012)

Editor’s note this is an edit of the Original post: 5 things you need to know about PNoy’s Disbursement Acceleration Plan (DAP). Edited for better readability.

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

Screenshot 2013-10-02 21.55.08

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)

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