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A. P-NOY¶S Budget Allocation Plan

In President Aquino¶s Budget Message, he stated that P1.645 trillion National Budget is

proposed for the Fiscal Year 2011.

The National Budget proposed for 2011 is 6.8 percent larger than last year¶s

appropriations.

1.p ÷ocal Government Units

Allocations to ÷ocal Government Units increased to P300.0 billion, slightly

higher than the P297.5 billion allocated in 2010. The increase is due to the bigger share of

÷GUs from internal revenue taxes in 2011.p

2.p Government Owned and Controlled Corporations

Allocations to GOCCs, in terms of equity and subsidy contribution and net

lending, decreased by 40.7 percent, from P39.3 billion in 2010 to P23.3 billion in 2011,

in view of the need to rethink government support of questionable GOCC programs,

particularly those implemented by such agencies as the NFA, ÷ight Rail Transit

Authority (÷RTA), Metro Rail Transit Corporation (MRTC), and other GOCCs whose

programs/projects are still under evaluation. Reforms in this sector are at hand.

3.p Social Services Sector

The social services sector gets a significant portion of the budget, some P560.8

billion or 34.1 percent of the total.

4.p Economic Services Sector

The economic services sector gets P361.1 billion, 22.0 percent of the total budget.

5.p Debt Burden

Debt Burden receives P372.1 billion, 22.6 percent of the total budget.

6.p General Public Services

General public services receive P273.5 billion, 16.6 percent of the total budget.

7.p Defense

Defense receives P77.5 billion, 4.7 percent of the total budget.

8.p Department of Education

The Department of Education receives P207.3 billion, represents 12.6 percent of

the total budget, and is in the top position. The budget for the Department of Education

increased for 18.4 percent from P175.0 billion last year.

9.p Department of Public Works and Highways

The Department of Public Works and Highways receives P110.6 billion, or 6.7

percent of the total budget, and is in the second place.

10.pDepartment of National Defense

The Department of National Defense (DND), third among the top recipients of

next year¶s budget, gets an increase of 81.1 percent, from P57.8 billion in 2010 to P104.7

billion in 2011. The increase is attributed in part to the return of military pensions to

DND¶s budget.

11.pDepartment of the Interior and ÷ocal Government

 The Department of the Interior and ÷ocal Government (DI÷G) exchanges places

with the DND and is now ranked 4th. Its budget increased by 32.6 percent, from P66.5

billion in 2010 to P88.2 billion in 2011.

12.pDepartment of Agriculture

The Department of Agriculture, retaining its position in 5th place, has a slight

decrease of 8.5 percent in its budget, from P41.2 billion to P37.7 billion due to the

reduction in the allocation for input subsidies (e.g., seeds, fertilizers, farm implements

and biologics) for the production of rice, corn, fisheries, livestock and high-value

commercial crops with the better targeting of these subsidies.

13.pDepartment of Social Welfare and Development

The Department of Social Welfare and Development jumps to 6th from 8th, its

budget increasing by P18.9 billion or 122.7 percent, from P15.4 billion to P34.3 billion.

The remarkable increase provides for the second phase implementation of the KA÷AHI-

CIDSS Project in 96 municipalities, conditional cash transfers to 2.3 million households,

rice subsidy, and pensions for indigent senior citizens.

14.pDepartment of Health

The Department of Health ranks 7th with P33.3 billion, up by 13.6 percent from

the 2010 level of P29.3 billion.

15.pDepartment of Transportation and Communications

The Department of Transportation and Communications is in 8th place with a

budget of P32.3 billion, an increase by 87.8 percent from P17.2 billion in 2010
B. Issues in the new Budget Allocation Plan

Due to new proposed budget allocation plan of President Noynoy Aquino, many

issues came out. One of the issues is because of the decrease in budget of education. Boncocan

(2010) wrote about the youth group the protested because of education budget cuts. When P-Noy

came back to the country the youth said ³Student leaders would like to welcome you back, Mr.

President and we want to remind you to face us and our issues now,´ Einstein Recedes, National

Union of the Students of the Philippines (NUSP) president, said in a press release Wednesday´.

NUSP revealed that the proposed budget slashed "P650 million for student financial assistance

and P75 million faculty scholarship."

Another issue is the 12 million budgets for state visit to Indonesia and Singapore.

Buenaventura(2011) posted that the Malacañang Palace confirmed that P-Noy has a budget of

over Php12 million for his state visit to two Asia nations where the visit lasts for four days

wherein the president will have to talk to high-ranking officials of the said countries as well as to

persuade investors to put their money on Philippine business.

Another one is the decrease of the health budget. Crisostomo(2010) wrote that in the

budget proposal submitted by Aquino to Congress, the allocation for health is slashed by 3.5%,

from the P 40.0 billion adjusted allocation in 2010 to only P 38.627 billion for 2011. Budget for

the 55 public hospitals nationwide is also decreased by P363.7 million, from P5.156 billion in

2010 to P4.792 billion in 2011. And According to the Health Alliance for Democracy (HEAD),

the combined budget for the 12 major DOH hospitals is decreased dramatically.

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Budget is used for organize and control financial resources, set goals, and decide how
much money can work for you. A good budget allocation allows you to figure out how much
may you have spent and where you may spend the money.
According to the website of Inquirer, last December 2, 2010, the Senate approved the
P1.645-trillion budget for the year 2011. President Aquino cited some of the actions and
programs that his administration made such as, rebidding of overpriced contracts, the adoption of
the zero-based budgeting approach and the increase in the budget for the Conditional Cash
Transfer (CCT).
President Aquino allotted more funds to the Conditional Cash Transfer (CCT) which
results to a monthly food and money to the poorest families. ÷ast year one million families were
assisted but by the end of 2011 the government targets to increase it to 2.3 million families.
President Aquino¶s managers promised to change the number of jobless people in the country,
which the economists use to know the development of the country. DSWD Secretary said that
they target to decrease poverty to 22 percent by 2015.
President Aquino stopped and rebid the overpriced contracts of DPWH costing to 1
million and it saved the taxpayers 300 million. He implemented the zero-based budgeting in the
2011 budget. Under the program, Department of Budget and Management requires government
agencies why their item is necessary and present an evaluation of its budget allocation.