1. ABI-Envi Cluster Meeting UP Alumni Café UP Diliman, Quezon City 3:00-5:00 PM | April 28, 2014

2. Overview: FY 2014 GAA Approved increased allocations in ABI-Envi Proposals Agency /Dept / SPF Budget Item ABI Proposed Increases (in ‘000) NEP 2014 (in ‘000) GAB 2014 (in ‘000) GAA 2014 (in ‘000) Varianc e (in ‘000) Varianc e (in ‘000) GAB vis NEP GAB vis GAA Disaster Risk Reduction and Climate Change Adaptation DA- OSEC Climate Adaptation Works 835,825146,175 166,175020,000 Sustainable Agriculture, Fisheries and Forestry DENR- OSEC Land Survey, Disposition and Records Manageme nt 837,181.86 4 2,106,3682,107,555 1,187

3. Overview: FY 2014 GAA Approved increased allocations in ABI-Envi Proposals Agency /Dept / SPF Budget Item (in ‘000) ABI Proposed Increases (‘000) NEP 2014 (‘000) GAB 2014 (‘000) GAA 2014 (‘000) Variance (‘000) Variance (‘000) GAB vis NEP GAB vis GAA Sustainable Agriculture, Fisheries and Forestry DENR- OSEC Development, Updating and Implementati on of the Operational Plan for the Manila Bay Coastal Management Strategy 100,000150,000 160,000010,000 New and Renewable Energy DENR- EMB Implementati on of clean air regulations 500,000735,984 785,984050,000 TOTAL 2,273,006.8 643,138,5273,139,7143,219,7141,18781,187

4. Overview: 2014 GAA Allocations for Reconstruction & Rehabilitation FY 2014 allocations relevant to disaster rehabilitation, reconstruction and recovery efforts] amounts to a total of P121.35 billion: ◦P4.85 QRFs under key agencies’ budgets ◦P13 billion SPF for NDRRM Fund (Calamity Fund) ◦P20 billion SPF for Rehabilitation and Reconstruction Program ◦P80 billion UF for Reconstruction and Rehabilitation Program ◦P3 billion UF for Disaster Relief and Mitigation Fund ◦P500 million UF for People’s Survival Fund FY 2013 supplemental budget for calamity fund and DSWD Quick Response Fund (P14.6 billion sourced from unreleased 2013 PDAF) FY 2013 continuing appropriations (P22.7 billion (authorized through Joint Resolution 1)

5. 2015 Budget Call Based on National Budget Memorandums 119 & 120 Budget Priorities Framework ◦guide to achieving rapid growth and inclusive development ◦sets forth priority programs and projects under the KRAs of the administration as well as determines focus geographical areas Public expenditure management ◦MTEF, OPIF, ZBB, Program Budgeting (KRAs), GPB ◦Spending within means, spending on the right priorities, spending with value for money ◦Performance-Informed Budgeting- performance info about outputs and outcomes ◦GAD Plan and Budget- at least 5% of the total agency budget proposal for activities supporting GAD plans and programs

6. 2015 Budget Call Reprogramming of existing agency budgets to accommodate Reconstruction Assistance on Yolanda (RAY) program ◦investment requirements for rehabilitation, reconstruction and recovery amount to P360.9 billion until 2017 Urgent embedding of the climate change and disaster risk reduction in all planning, programming and implementation activities

7. Program Priorities Social protection and social services (Pantawid Pamilyang Pilipino Program (will cater to 4.3 million households in 2015), Universal Health Care, Education and Manpower Programs, Housing) Economic expansion programs in agriculture, transportation infrastructure, research and development & manufacturing

8. Program Priorities Job creation and livelihood development: rural- based industries, infrastructure development, grassroots participatory budgeting Climate change disaster risk reduction (Identify geo-hazard and climate-prone areas, reconstruction and rehabilitation in calamity- affected areas, improve calamity response and stockpiling of food and relief goods ◦Note: the framework recognizes the role of the private sector in the implementation of the Reconstruction Assistance to Yolanda rehab plan)

9. Focus Geographical Areas Provinces with most poor families (magnitude) Provinces with high poverty incidence Disaster-prone provinces (high disaster risk) Provinces with high poverty incidence and disaster risk Provinces with most poor families (magnitude) and disaster risk

10. 2015 Budget: Macro & Fiscal Targets The following update is based on available issuances and official information Total picture of the budget is not available Budget call and memoranda only cover the allocation for operating agencies Only 47% (agency budget ceilings of P1.231 trillion) of the total obligation budget of P2.606 trillion is initially disclosed (NBM No. 119); does not include special purpose funds and debt servicing

11. Macroeconomic Assumptions PARAMETER 2013 Actual 2014 Adjusted 2015 Projected 2016 Projected Real GNI Growth % Real GDP Growth % Inflation % 364-Day T-bill Rate % FOREX (P/US $) 6.5-7.0 2.9 0.7-1.0 42-43 6.2-7.2 6.5-7.5 3.0-5.0 1.0-4.0 41-44 6.6-7.5 7.0-8.0 2.0-4.0 1.0-4.0 41-44 7.0-8.0 7.5-8.5 2.0-4.0 1.0-4.0 41-44 Source: DBM NBM 119 based on BSP, NEDA, NSCB data Are the projected GDP and GNI growth rates attainable?

12. Fiscal Targets PARTICULARS 2013 Adjusted Program 2014 Program 2015 Proposed 2016 Proposed Levels in Billion Pesos Revenues Disbursements Surplus/(Deficit) Obligation Budget Per cent of GDP Revenues Disbursements Surplus/(Deficit) Obligation Budget Growth Rate Revenues Disbursements Surplus/(Deficit)* Obligation Budget 1,745.9 1,983.9 (238.0) 2,005.9 14.7 16.7 (2.0) 16.8 13.7 11.6 2.0 9.7 2,018.1 2.284.3 (266.2) 2,264.6 15.5 17.5 (2.0) 17.4 15.6 15.1 (11.9) 12.9 2,337.3 2,622.6 (285.3) 2,605.9 16.2 18.2 (2.0) 18.0 15.8 14.8 (7.1) 15.1 2,760.8 3,082.8 (322.0) 3,077.9 17.1 19.1 (2.0) 19.0 18.1 17.5 (12.9) 18.1 GDP Gross Financing Mix (%) Foreign Domestic 11,914.5 8.0 92.0 12,990.3 15.0 85.0 14,463.5 11.0 89.0 16,179.0 9.0 91.0 Notes: *A positive growth rate indicates an improvement in the fiscal balance Source: DBM NBM 119 based on DBM, DOF, and NEDA data

13. 2015 Agency Budget Ceilings Personal ServicesMOOE, CO & FinEx Total 488,140,395,000742,918,323,0001,231,058,718,000 Source: DBM National Budget Memorandum No. 119 Annex A vs. Total Obligation Budget for 2014: PhP 2,605,900,000,000 Where is the remaining amount of PhP 1,374,841,282,000 going to?

14. Top agencies to get bigger slice of the P1.231T pie Source: DBM National Budget Memorandum No. 119 Annex A

15. How much is it for 2013? Where goes the more than half of the 2015 Budget? Special Purpose Funds? How much is it in 2015? How much is debt servicing? Source: 2014 GAA (RA 10633) SPECIAL PURPOSE FUNDS 2014 Gen. Appropriations Act Amount Budgetary Support to Government Corporations 46,255,210,000 Allocation to Local Government Units 19,588,843,000 National Disaster Risk Reduction Management Fund (formerly Calamity Fund) 13,000,000,000 Contingent Fund1,000,000,000 DepEd School Building Program1,000,000,000 E-Government Fund2,478,900,000 International Commitments Fund4,815,644,000 Miscellaneous Personnel Benefits Fund 53,535,086,000 Pension and Gratuity Fund (formerly Retirement Benefits Fund) 120,495,952,000 Rehabilitation and Reconstruction Program 20,000,000,000 Priority Development Assistance Fund 1 0 Feasibility Studies Fund400,000,000 TOTAL282,569,635,000 1 Under the FY 2014 General Appropriations Act, the P25.24 Billion PDAF is realigned to the following: CHED, DOH, DSWD, DOLE-TESDA, DPWH, UP System, PNP, AFP, and NDRRM Fund

16. Budget Partnership Agreement Citizen participation shall be implemented through a Budget Partnership Agreement consistent with National Budget Circular 536 Participating depts/GOCCs: DAR, DA, DepEd, DoE, DENR, DoH, DILG, DoJ, DoLE Osec and TESDA, DPWH, DSWD, DoT, DTI, DoTC, LRTA, NEA, NFA, NHMFC/SHFC, NHA, NIA Focus of CSO proposals: 1) detailed analysis of policies/programs, 2) identifying poorly performing programs, 3) proposal for program expansion/addition

17. Grassroots Participatory Budgeting Consistent with DBM-DILG-DSWD-NAPC JMC 4, GPB will be implemented in the following departments/GOCCs: ◦DAR, DA, DepEd, DoE, DENR, DoH, DILG, DoJ, DoLE Osec and TESDA, DPWH, DSWD, DoT, DTI, DoTC, LRTA, NEA, NFA, NHMFC/SHFC, NHA, NIA Validated/qualified LGU projects shall be integrated in the agency budget proposals GPB consultations will be conducted with agency regional offices through LPRAT & RPRAT, HDPRC, DILG, RDCs, CSOs and other stakeholders In 2014, P403.5 million for National Greening program was lodged in DENR-EMB budget through this initiative

18. Approximated FY 2015 Budget Legislation Calendar July 2014 July 29, 2014- Submission of the President’s Budget (NEP, BESF, other budget documents) to Congress [After the State of the Nation Address] August-September 2014 August to September 2014- Budget Briefings/Hearings of the House Committee on Appropriations September to last week of October 2014- Budget Briefings/Hearings of the Senate Committee on Finance First week of September 2014- Budget Hearing of the House Committee on Appropriations with Civil Society Organizations

19. Approximated FY 2015 Budget Legislation Calendar September 2014 Third to last week of September 2014- House Sponsorship and Floor Deliberations for General Appropriations Bill (GAB) Last week of September 2014- House Approval of the GAB on Second Reading September-October 2014 Last week of September or second week of October 2014- Submission of Individual Amendments to the GAB Third week of October 2014- House Approval of the GAB on Third and Final Reading Third week of October 2014- House Transmission of the GAB to the Senate Finance Committee

20. Approximated FY 2015 Budget Legislation Calendar November 2014 Third week to fourth week of November 2014- Senate Sponsorship and Floor Deliberations for the GAB Fourth week of November 2014- Senate Approval of the GAB on Second Reading / Period of Amendments Fourth week of November 2014- Senate Approval of the FY 2013 GAB on Third and Final Reading December 2014 First week of December 2014- Pre-Bicameral Conference Committee technical working group meeting Second week of December 2014- Bicameral Conference Committee Panel deliberations

21. Approximated FY 2015 Budget Legislation Calendar December 2014 Second week of December 2014- Approval/Signing of the Bicameral Conference Committee report on the GAB Second week of December 2014- House and Senate Ratification of the Bicameral Conference Committee report on the GAB Last week of December 2014- President’s Signing of the General Appropriations Act