Financing Philippine Local Government

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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 2008 Budget Program|

The total proposed expenditure program for FY 2008 amounts to P1.227 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 2006-2008 (In thousand pesos)|
|
PARTICULARS| 2006
(Actual)| 2007
(Adjusted)| 2008
(Proposed)|
APPROPRIATIONS|  |  |  |
  New General Appropriations| 597,663,400| 635,041,878| 770,728,857|   Automatic Appropriations| 375,221,399| 552,226,582| 570,763,234|   Continuing Appropriations| 90,010,729| 40,126,566|  |   Supplemental Appropriations| 46,926,524|  |  |

 |  |  |  |
Total Available Appropriations| 1,109,822,052| 1,227,395,026| 1,341,492,091| Less: Unused Appropriations/
         Unobligated Allotments | 64,994,647| 101,256,026| 114,492,091| TOTAL OBLIGATIONS| 1,044,827,405| 1,126,139,000| 1,227,000,000| Out of the P1.227 Trillion budget proposal, an amount of P770.7 Billion of New General Appropriations is proposed for enactment in FY 2008. This includes P114.5 Billion of Unprogrammed Appropriations which will be provided as standby authority to be released only when revenue collections exceed revenue targets. | By Departments/Special Purpose Funds|

The proposed P1.227 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 2006-2008 (In thousand pesos)|
 | OBLIGATIONS|  |
PARTICULARS| 2006
(Actual)| 2007
(Adjusted)| 2008
(Proposed)| 2008 Appropriations (Proposed)|
Departments and Agencies| 512,214,610| 469,131,981| 511,233,176| 482,308,363| Special Purpose Funds| 532,612,795| 657,007,019| 715,766,824| 288,420,494| TOTAL| 1,044,827,405| 1,126,139,000| 1,227,000,000| 770,728,857| The top five (5) departments which would get the largest allocation out of the proposed national budget are the Department of Education, P146.0 Billion (inclusive of the DepEd School Building Program), Department of Public Works and Highways, P94.5 Billion; Department of Interior and Local Government, P52.6 Billion; Department of National Defense, P51.0 Billion; and Department of Agriculture (inclusive of its Agricultural and Fisheries Modernization Program component), P23.8 Billion.| Under the Special Purpose Funds (SPFs), the Allocation to Local Government Units, the Pension and Gratuity Fund, the Miscellaneous Personnel Benefits Fund (which includes the proposed salary adjustment) and the Agricultural and Fisheries Modernization Program (AFMP) were provided substantial amounts of P228.2 Billion, P60.0 Billion, P43.7 Billion and P23.6 Billion respectively. For FY 2008, a new SPF, the Tax Expenditure Fund is herein proposed. This Fund shall be used to support the tax expenditures of various government agencies and government corporations and is to be automatically appropriated. | The details of the budgets of Departments and Special Purpose Funds are presented in Summary Tables II-1 and II-2 and Annex B.| Summary Table II-1

Summary of Obligations and Proposed New Appropriations by Department, FY 2006-2008 (In thousand pesos)|
 | OBLIGATIONS|
DEPARTMENTS| 2006
(Actual)| 2007
(Adjusted)| 2008
(Proposed)| 2008
Appropriations (Proposed)|
Congress of the Philippines| 5,170,564| 5,620,184| 5,567,380| 5,400,013| Office of the President| 4,373,204| 3,893,290| 5,287,995| 5,196,928| Office of the Vice...
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