GENERAL INTRODUCTION
This volume of the President’s Budget for FY 2011 is submitted to assists Congress in the review and
deliberation of the proposed national budget for legislation of the annual appropriations measures for the
ensuing fiscal year. It is presented into four (4) parts, namely: Part I – National Government Budget; Part II
- Budgets of the three (3) Energy Corporations; Part III – General Provisions; and Part IV – Detailed
Annexes.
The FY 2011 Expenditure Program
Of the total proposed expenditure program for FY 2011, P1.0 Trillion represents New General
Appropriations which require legislative authorization. This amount already includes the proposal for a P66.9
Billion standby authority which could only be released when revenue collections exceed revenue targets. The
highlights of the New General Appropriations contained in this volume is further discussed below.
The amount of P711.5 Billion, on the other hand, represents expenditure items which Congress deemed fit
to automatically appropriate. By virtue of their nature and urgency, Congress provided continuing legal
authority for these expenditure items through subsisting legislation. These automatically appropriated items
include debt service-interest payments, net lending, IRA, government contribution for employees retirement
and life insurance premiums, special accounts in the general fund, grant proceeds and donations. The
breakdown of automatic appropriations presented per department are shown in Table "H" of the BESF.
The New General Appropriations
The proposed P1.0 Trillion New General Appropriations as shown in Annex "A" is allocated among the various
departments and special purpose funds, as follows:
Departments and Agencies 769,346,284
Special Purpose Funds 231,041,480
TOTAL, New General Appropriations 1,000,387,764
Less: Unprogrammed New Appropriations 66,908,492
Programmed New Appropriations 933,479,272
Consistent with the constitutional mandate of giving the highest priority to education, the DepEd gets
P193.3 Billion (inclusive of the DepEd Educational Facilities Fund) out of the proposed national budget. The
other top departments are: DPWH, P100.8 Billion; DND, P104.5 Billion; DILG, P86.9 Billion; and the DA
(inclusive of its Agricultural and Fisheries Modernization Program component), P37.3 Billion.
To promote transparency and accountability, previous allocations under certain SPFs for which specific
user-department/agency is identified were incorporated in the built-in appropriations of the concerned
department/agency. For instance, the pension requirements for retired military and uniformed personnel
were incorporated in the built-in appropriations of DND, DILG, National Mapping and Resource Information
Authority and Philippine Coast Guard. Likewise, the National Unification Fund was included under the budget
of Office of the Presidential Adviser on the Peace Process. Thus, the significant increases in the budgets of
these departments.
Under SPFs, substantial amounts are provided to the Miscellaneous Personnel Benefits Fund (MPBF),
P71.7B; the Retirement Benefits Fund (RBF), P35.0B, the Priority Development Assistance Fund (PDAF),
P24.8B; and the Allocation to Local Government Units, P13.1B. The increase in the provision for MPBF is
attributed to the inclusion of the annualized requirement of the 2nd tranche salary increase (made effective
June 24, 2010) and the 3rd tranche salary adjustments under the Salary Standardization Law III. The
provision under the RBF, formerly Pension and Gratuity Fund, is now limited to the requirement for the
Retirement Gratuity and Terminal Leave benefits of retired government personnel, Incentive Package for
employees availing of the Rationalization Program and the monetization of transferred leave credits of
National Government personnel devolved to the LGUs. Again, to enhance transparency, the congressional
allocations are all lodged under PDAF. Thus, PDAF allocations now includes both the hard (roads, bridges
etc.) and soft (scholarships, grants, etc.) components of the program.
The details of the budgets of Departments and SPFs are presented in Summary Tables I-1 and I-2.
Summary Table I-1
Summary of Proposed New Appropriations by Department, FY 2011
(In thousand pesos)
Proposed New Appropriations
Maintenance and
Personal Capital
DEPARTMENTS Other Operating Total
Services Outlay
Expenses
Congress of the Philippines 3,624,550 3,881,488 300 7,506,338
Office of the President 1,576,856 2,482,147 16,504 4,075,507
Office of the Vice President 36,570 137,301 3,236 117,107
Agrarian Reform 4,268,750 9,246,677 2,850,086 16,365,513
Agriculture 2,848,153 11,817,255 22,592,565 37,257,973
Budget and Management 323,753 397,906 31,620 753,279
Education 151,489,456 25,180,163 15,643,237 192,312,856
State Universities and Colleges 18,913,029 2,804,392 21,717,421
Energy 204,950 687,944 37,170 930,064
Environment and Natural
5,714,481 4,015,011 2,546,958 12,276,450
Resources
Finance 5,252,020 3,788,990 1,560,955 10,601,965
Foreign Affairs 5,240,240 5,643,699 151,745 11,035,684
Health 7,830,060 15,860,353 8,937,031 32,627,444
Interior and Local Government 74,625,318 10,022,010 2,266,188 86,913,516
Justice 4,953,762 2,133,878 64,391 7,152,031
Labor and Employment 2,929,165 3,299,074 169,463 6,397,702
National Defense 82,335,587 17,083,582 5,085,752 104,504,921
Public Works and Highways 3,828,718 6,310,164 90,687,201 100,826,083
Science and Technology 1,315,221 4,062,874 611,764 5,989,859
Social Welfare and
725,379 33,114,837 353,701 34,193,917
Development
Tourism 291,450 1,140,082 1,431,532
Trade and Industry 973,766 1,243,436 271,424 2,488,626
Transportation and
3,331,615 10,765,048 17,088,425 31,185,088
Communications
National Economic and
1,083,964 970,749 45,837 2,100,550
Development Authority
Presidential Communications
505,605 391,551 32,442 929,598
Operations Office
Other Executive Offices 2,089,284 2,247,017 84,886 4,421,187
Autonomous Region in Muslim
7,480,457 2,222,783 1,476,398 11,179,638
Mindanao
Joint Executive-Legislative
1,625 500 60 2,185
Council
The Judiciary 10,035,881 3,500,519 85,118 13,621,518
Civil Service Commission 532,873 128,179 5,800 666,852
Commission on Audit 3,968,345 181,289 4,149,634
Commission on Elections 1,546,114 709,331 2,255,445
Office of the Ombudsman 843,548 188,353 1, 031,901
Commission on Human Rights 207,548 59,352 266,900
GRAND TOTAL 410,928,093 185,717,934 172,700,257 769,346,284
Table I-2
Summary of Proposed New Appropriations by Special Purpose Funds, FY 2011
(In thousand pesos)
<
Proposed New Appropriations
Maintenance
SPECIAL PURPOSE FUNDS Personal and Other Capital Total
Services Operating Outlay
Expenses
Budgetary Support to Government
7,184,357 1,005,550 8,189,907
Corporations
Allocation to Local Government
26,533 12,765,353 265,505 13,057,391
Units
Calamity Fund 3,450,000 1,550,000 5,000,000
Contingent Fund 740,000 260,000 1,000,000
DepEd Educational Facilities Fund 1,000,000 1,000,000
E-Government Fund 1,100,000 1,190,000
International Commitments Fund 3,174,820 3,174,820
Miscellaneous Personnel Benefits
71,700,870 71,700,870
Fund
Retirement Benefits Fund 35,000,000 35,000,000
Priority Development Assistance
7,836,500 16,983,500 24,820,000
Fund
Total Programmed New
106,727,403 35,151,030 22,254,555 164,132,988
Appropriations
Unprogrammed Fund 8,662,810 15,355,188 42,890,494 66,908,492
GRAND TOTAL 115,390,213 50,506,218 65,145,049 231,041,480
National Expenditure Program Fiscal Year 2011
GENERAL INTRODUCTION
GENERAL INTRODUCTION
This volume is submitted to assist Congress in the review and deliberation of the proposed national budget
for the legislation of the annual appropriations measures for the next fiscal year. It contains the details of the
government’s proposed program and is presented into two parts, namely: Part I – National Government
Budget, and Part II - Budgets of the three (3) Energy Corporations.
The FY 2010 Budget Program
The total proposed expenditure program for FY 2010 amounts to P1.541 Trillion, computed on an
obligation basis, as presented in Table I below and in Annex A.
Table I
Summary of Appropriations and Obligations of the National Government, FY 2008-2010
(In thousand pesos)
2008 2009 2010
PARTICULARS
(Actual) (Adjusted) (Proposed)
APPROPRIATIONS
New General Appropriations 851,609,607 917,768,753 913,994,400
Automatic Appropriations 617,124,556 572,901,441 695,919,546
Continuing Appropriations 100,093,488 101,046,305
Supplemental Appropriations 11,301,790
Total Available Appropriations 1,568,827,651 1,603,018,289 1,609,913,946
Less: Unused Appropriations/
254,214,090 177,016,499 68,913,946
Unobligated Allotments
TOTAL OBLIGATIONS 1,314,613,561 1,426,001,790 1,541,000,000
Out of the P1.541 Trillion budget proposal, an amount of P914.0 Billion in New General Appropriations is
proposed for enactment in FY 2010. This includes P68.9 Billion in Unprogrammed Appropriations
representing standby authority to be released only when revenue collections exceed revenue targets.
By Departments/Special Purpose Funds
The proposed P1.541 Trillion expenditure program is allocated among the various departments and
special purpose funds, as follows:
Table II
Summary of Obligations and Proposed New Appropriations, FY 2008-2010
(In thousand pesos)
OBLIGATIONS
2010
2008 2009 2010
PARTICULARS Appropriations
(Actual) (Adjusted) (Proposed)
(Proposed)
Departments and Agencies 722,420,145 710,303,846 659,120,153 622,974,748
Special Purpose Funds 592,193,416 715,697,944 881,879,847 291,019,652
TOTAL 1,314,613,561 1,426,001,790 1,541,000,000 913,994,400
The top five (5) departments which would get the largest allocation out of the proposed national budget
are the Department of Education, P172.8 Billion (inclusive of the DepEd School Building Program),
Department of Public Works and Highways, P105.2 Billion; Department of Interior and Local Government,
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