1. Budget Framework FY2004 Budget Forum 7-9 May 2003 FY2004 Budget Forum 7-9 May 2003 Department of Budget and Management

2. Fiscal Planning Bureau 2 Outline of Presentation u Medium Term Fiscal Program u Proposed 2004 Budget u Medium Term Fiscal Program u Proposed 2004 Budget

3. Fiscal Planning Bureau 3 Medium Term Fiscal Program

4. Fiscal Planning Bureau 4 Revised Macroeconomic Targets * Estimates of GDP growth rates (low-end) and inflation rates (mid-point) were based on DBCC-approved levels.

5. Fiscal Planning Bureau 5 NG deficit (as % of GDP)

6. Fiscal Planning Bureau 6 Medium term Fiscal Program (as % of GDP) âConservative projections âNo legislative measures; only existing administrative measures

7. Fiscal Planning Bureau 7 Revenue and Tax Effort (% of GDP)

8. Fiscal Planning Bureau 8 Non-Tax Revenues (percent distribution) Less dependence on privatization; P1 B in 2003-04, P0.5 B in 2005-09

9. Fiscal Planning Bureau 9 Expenditure by recipient entity (percent distribution) Average growth rate: % NGAs(0.04) GOCCs(5.2) LGUs8.8 Creditors5.8

10. Fiscal Planning Bureau 10 Implications u only ongoing projects could be accommodated until 2009 u no new projects until 2009 u change in project duration u need to review/rationalize all PAPs to free up resources to accommodate new projects

11. Fiscal Planning Bureau 11 u Review of all existing programs for restructuring/ streamlining u Imposition of a moratorium on the approval of all projects both locally funded and foreign assisted, unless savings are derived elsewhere u Rationalization of the cash management system through the Electronic Linkage Project u Measures like additional privatization proceeds shall be used to retire debt u Legislation of the debt cap and fiscal responsibility bills u Review of all existing programs for restructuring/ streamlining u Imposition of a moratorium on the approval of all projects both locally funded and foreign assisted, unless savings are derived elsewhere u Rationalization of the cash management system through the Electronic Linkage Project u Measures like additional privatization proceeds shall be used to retire debt u Legislation of the debt cap and fiscal responsibility bills Expenditure Measures

12. Fiscal Planning Bureau 12 Proposed 2004 Budget

13. Fiscal Planning Bureau 13 Particulars 2003 2004 Revenues 584.1 634.2 Disbursements 786.1 832.0 Deficit (202.0) (197.8) Percent of GDP Revenues 13.5 13.5 Disbursements 18.217.7 Deficit (4.7) (4.2) Fiscal Position, 2003-2004 (in billion pesos)

14. Fiscal Planning Bureau 14 Size of the Budget P804.0 BP830.3 B 3.3% 2003 Proposed 2004 % Inc/Dec 2003-2004 2003 2004Inc/Dec IRA 141.0 152.4 11.4 IP 223.2 268.6 45.4 Others* 439.8 409.3 (30.5) *includes NG agencies In billion pesos

15. Fiscal Planning Bureau 15 Policy Framework u Debt reduction strategy u Focus resources on the realization of the SONA commitments and supporting the eight-point program of the government u Pursuit of public sector reforms --procurement reforms, public sector institutional strengthening u Implementation of the OPIF and SEER to enhance results orientation and improve service delivery u Debt reduction strategy u Focus resources on the realization of the SONA commitments and supporting the eight-point program of the government u Pursuit of public sector reforms --procurement reforms, public sector institutional strengthening u Implementation of the OPIF and SEER to enhance results orientation and improve service delivery

16. Fiscal Planning Bureau 16 Thank you... Budget Framework