Republic Act 10633 General Appropriation Act of 2014 An Act Appropriating Funds for the Operation of the Government of the Republic of the Philippines from January One to December Thirty-One, Two Thousand Thousand and Fourteen, and for other Purposes
Summary of FY 2014 New Appropriations (Amount, in Thousand Pesos)
Congress of the Philippines Office of the President Office of the Vice-President
P
10,742,423 2,790,665 217,296
Department of Agrarian Reform
20,002,768
Department of Agriculture
68,596,751
Department of Budget and Management Department of Education State Universities and Colleges Department of Energy
997,494 281,774,247 35,934,625 3,299,376
Department of Environment and Natural Resources
23,345,621
Department of Finance
11,524,941
Department of Foreign Affairs
12,130,738
Department of Health
84,356,933
Department of Interior and Local Government
100,295,430
Department of Justice
10,903,778
Department of Labor and Employment
12,177,273
Department of National Defense
82,265,071
Department of Public Works and Highways
206,634,047
Department of Science and Technology
11,928,821
Department of Social Welfare and Development
83,304,463
Department of Tourism
1,994,061
Department of Trade and Industry
4,406,338
Department of Transportation and Communications
45,461,306
National Economic and Development Authority
3,904,430
Presidential Communications Operations Office
1,128,359
Other Executive Offices
13,755,995
Autonomous Region in Muslim Mindanao
19,615,029
Joint Legislative-Executive Councils Judiciary
4,167 18,559,816
Civil Service Commission
1,213,353
Commission on Audit
7,969,497
Commission on Elections
2,735,321
Office of the Ombudsman
1,732,334
Commission on Human Rights
326,923
Budgetary Support to Government Corporations
46,255,210
Allocations to Local Government Units
19,588,843
Contingent Fund
1,000,000
Department of Education - School Building Program
1,000,000
E-Government Fund
2,478,900 400,000
Feasibility Studies Fund
4,815,644
International Commitments Fund Miscellaneous Personnel Benefits Fund
53,535,086
National Risk Reduction and Management Fund
13,000,000 120,495,952
Pension and Gratuity Fund
20,000,000
Rehabilitation and Reconstruction Program
139,903,759
Unprogrammed Fund
TOTAL
P
1,608,503,084
The National Budget
The National Budget is the financial expression of approved government plans and programs to be supported by government revenues. Budgeting enables the government to manage its scarce financial resources to support priority programs and projects for promoting economic growth and providing public services. In other words, it is in budgeting where the government puts its money where its mouth is.
Income, Expenditure, Deficit The National Budget consists of the government’s estimated income and planned expenditures in a given year. The government’s income is composed of taxes (income tax, value-added tax, etc.) and non-tax revenues (fees and charges, privatization proceeds, etc.) Meanwhile, expenditures include programs, activities, projects, purchase of goods and services, among others, that the government will spend on to achieve its socioeconomic development objectives. When the government’s income is insufficient to finance expenditures, government incurs a fiscal deficit. In this situation, government resorts to borrowing from domestic and foreign sources.
Coverage The National Budget covers the totality of the budgets of national government agencies — not only those of the Executive branch, but also of Congress, the Judiciary and other Constitutional bodies. It also covers the budgetary support given by the national government to local government units (LGUs), in particular, the Internal Revenue Allotment (IRA); as well as to Government-Owned or –Controlled Corporations (GOCCs) and government financial institutions (GFIs).
Components The National Budget for a given year is composed of the following: 1. New General Appropriations – Legislated by Congress and enacted by the President every fiscal year as the General Appropriations Act (GAA). The GAA enacts both programmed and unprogrammed general appropriations. a. Programmed appropriations – supported by corresponding sources of revenue. b. Unprogrammed appropriations – can only be executed when the government attains a revenue windfall (i.e., above target). 2. Automatic Appropriations – Under specific laws, certain types of expenditure (e.g., debt interest payments, LGUs’ IRA) are automatically set or appropriated. 3. Continuing Appropriations – Appropriations previously enacted by Congress in the previous year’s GAA and which continue to be valid. Currently, appropriations for capital outlays and maintenance and other operating expenditures have a validity of two years.
Annual Preparation, Three-Year Perspective The Philippine Constitution requires the President ―to submit to Congress, within 30 days from the opening of every regular session as the general appropriations bill, a budget of expenditures and sources of financing, including receipts from existing and proposed revenue measures.‖ The annual preparation of the National Budget also ensures that all government spending is reviewed and justified anew each year. Even so, the government also adopts a three-year perspective. This ensures that the National Government remains strategic in managing its resources.
