2020 b · (luzon, visayas, mindanao, and ncr) and their corresponding component regions, including...

SEPTEMBER 2020 NO. 2020-04

ANALYSIS OF THE REGIONAL ALLOCATION OF THE FY 2021 NATIONAL BUDGET

1

INTRODUCTION

The President submitted the FY2021 Proposed National Budget at a time of great uncertainty.

The economy is in recession, unemployment rate is up to about 10% in the July 2020 Labor Force

Survey, involuntary hunger is on the rise2, and the public health threat of the COVID-19 pandemic

looms large. Recognizing the heavy blow delivered by the pandemic, the President declared in the

FY 2021 Budget Message that the P4.5 trillion National Expenditure Program will sustain

government efforts to effectively respond to and recover from the crisis. The 2021 budget will be

re-oriented towards containing the spread of COVID-19 and mitigating its effects, and restarting

the economy to create jobs and attract investments without losing sight of fundamental

priorities—poverty alleviation, investments in health and education, and economic stabilization.

The budget is a tool that government uses to attain goals by funding programs aligned with

strategic objectives. These goals and objectives are inscribed in the Philippine Development Plan

(PDP) 2017-2022, geared towards laying the foundation for a “Matatag, Maginhawa, at Panatag na

Buhay”. Reducing inequality is a hallmark of the PDP as the plan recognizes the stark inter-regional

inequality that must be addressed by providing opportunities to marginalized areas and sectors.

Strategic and higher government spending is needed in areas that have persistently lagged behind

and are now in even greater danger of under-development because of higher unemployment and

poverty incidence due to the impact of the COVID-19 pandemic.

Much is at stake in 2021. As the country reels from the debilitating effects of its worst crisis in

decades, Filipinos are exposed to greater vulnerabilities that are aggravated by a weak economy

with limited livelihood opportunities. Hunger, unemployment, a poor business climate, and

underinvestment in human development are real threats to recovery. Without a budget that

promotes equity, these threats can stunt the country’s long-term growth and development.

Moreover, the government stands to miss out on building its social capital and mobilizing people

towards recovery if it fails to deliver an equitable budget.

1 Prepared by Pamela Diaz-Manalo and Miguel Antonio Estrada with valuable contributions of Coleen Villaluz and Arlene Lopez-Tuazon. The authors also wish to acknowledge the inputs of Deputy Secretary General Romulo E.M. Miral, Jr. PhD and of the CPBRD officials and senior staff. The views, opinions, and interpretations in this document do not necessarily reflect the perspectives of the House of Representatives as an institution or its individual members. 2 20.9% of families or about 5.2 million households experienced involuntary hunger based on a July 2020 SWS Survey

2020 BUDGET BRIEFER CONGRESSIONAL POLICY AND BUDGET RESEARCH DEPARTMENT

HOUSE OF REPRESENTATIVES

2 CPBRD / 2020 BUDGET BRIEFER

As Carmen Reinhart (2020), the World Bank’s Chief Economist, said, “This time truly is different”

and the extent of damage wrought by the pandemic entails a “whatever it takes” approach on the

part of governments. The success of this approach will later be determined not only by the size

of spending but by the strategic allocation of resources. The budget’s ability to address the

underlying issue of inequity will help determine the country’s path to recovery.

REGIONAL BUDGET SHARES

Table 1 presents the distribution of the national expenditure program by major island groups

(Luzon, Visayas, Mindanao, and NCR) and their corresponding component regions, including

appropriations separately categorized as Central Office and Nationwide.3 Note that appropriation

for Luzon is net of NCR. The budget shares shown is based on the total national budget, including

the Special Purpose Funds (SPFs) such as the allocations to local government units (ALGU),

budgetary support to government corporations (BSGC), and debt service (see Annex 1).

Actual expenditures for 2017-2019 show declining shares for all regions nationwide as the Central

Office and NCR shares significantly increased in 2018 and 2019, respectively. Aggregated by major

island groups, the budget share of Luzon declined from 22.3% in 2017 to 18.8% in 2019. Similarly,

the Visayas share dropped from 10.6% to 8.7% while that of Mindanao decreased from 15.3% to

11.5% in the same period.

The growth for Central Office and NCR in 2018 and 2019 can be attributed mainly to the manner

by which the DPWH budget is categorized. To illustrate, the DPWH budget under Central Office

in 2018 increased to P323.3 billion (from only P3.4 billion in 2017). However, in 2019 (per the

BESF), the DPWH had no allocation reported under Nationwide and Central Office, but posted

P473.3 billion under NCR. Note also that the NCR share grew from 22.7% in 2018 to 37.6% the

following year even as budgets for the Department of Energy (DOE) and Office of the

Ombudsman (which were previously lodged under NCR) are now categorized under Nationwide

and Central Office, respectively.

The FY 2020 expenditure program shows that less than half (48.4%) of the national budget has

been allocated to the regions of the three island groups, while NCR gets a separate share of 22.2%.

Note that Nationwide share as appropriated accounts for about one-fifth (20.5%) of the current

year's budget—the actual distribution of which will be reflected at the end of the fiscal year. As

such, regional shares will be adjusted as a result of reallocations from Nationwide and possible

downloads from the Central Office. Likewise, significant changes in regional shares may be

expected when budgetary adjustments due to discontinuances and realignments under the

Bayanihan Act I (RA 11469) are officially reported as of 31 December 2020.

3 As defined in the BESF, Nationwide pertains to allocation still to be distributed to various regions of the department/ agencies and multi-user SPFs. Meanwhile, Central Office pertains to allocations being managed by the Head Office of department/agencies for their respective units.

CPBRD / 2020 BUDGET BRIEFER 3

TABLE 1

REGIONAL DISTRIBUTION OF THE TOTAL NG BUDGET, 2017-2021 (IN PERCENT SHARE)

Regions

Actual GAA 2021 Proposed

2017 2018 2019 2020 Amount

(in Billion Pesos)

Share

Nationwide 23.4 14.5 14.8 20.5 982.7 21.8

Central Office 3.7 18.1 8.6 8.9 340.5 7.6

NCR 24.7 22.7 37.6 22.2 1487.9 33.0

Luzon, net of NCR 22.3 21.5 18.8 22.6 790.2 17.5

Region I 2.8 2.4 2.4 2.7 96.6 2.1

CAR 1.7 1.9 1.3 1.6 51.2 1.1

Region II 2.4 2.3 2.1 2.3 84.3 1.9

Region III 4.8 4.8 4.2 4.9 178.0 4.0

Region IV-A 4.9 4.9 4.5 5.4 193.5 4.3

Region IV-B 2.3 2.0 1.6 2.1 70.3 1.6

Region V 3.4 3.3 2.7 3.6 116.2 2.6

Visayas 10.6 10.1 8.7 10.3 374.1 8.3

Region VI 3.8 3.6 3.3 3.8 138.8 3.1

Region VII 3.5 3.5 3.0 3.5 130.7 2.9

Region VIII 3.3 3.0 2.4 3.0 104.6 2.3

Mindanao 15.3 13.1 11.5 15.5 530.6 11.8

Region IX 2.2 2.1 1.8 2.3 79.5 1.8

Region X 3.3 2.6 2.3 3.0 94.5 2.1

Region XI 3.2 2.6 2.1 3.3 87.9 2.0

Region XII 2.4 2.2 1.9 2.2 76.0 1.7

CARAGA 2.1 1.8 1.5 2.0 64.3 1.4

BARMM 1.9 1.9 1.8 2.7 128.4 2.8

TOTAL 100.0 100.0 100.0 100.0 4,506.0 100.0

Sources of basic data: BESF 2019-2021

The regional distribution of the proposed 2021 budget shows reduced shares for all regions (except

the BARMM and NCR) compared to 2020. The aggregated shares by island group shows that the

Luzon share posts the biggest drop from 22.6% in 2020 to 17.5% next year. Visayas share will be

lower by 2 percentage points to 8.3%, while Mindanao share of 11.8% is going to be lower by 3.7

percentage points. On the other hand, the NCR share of 22.2% in 2020 will increase to 33.0% in

2021. Note that NCR still includes the six (6) departments/agencies4 with budgets wholly lodged

under the region where their respective offices and operations are located.

Higher share for BARMM in 2020 and 2021 compared to previous years is largely due to the block

grant that is automatically appropriated as the BARMM share in the internal revenue tax collections

4 These agencies are as follows: Congress, Office of the President (OP), Office of the Vice President (OVP), Presidential Communications Operations Office (PCOO), Joint Legislative-Executive Councils (JLEC), and the Commission on Human Rights (CHR).


of the BIR and the BOC collections in accordance with Sections 15 to 18, Article XII of RA 11054.

For 2021, the block grant amounts to P71.7 billion. Also allocated for BARMM is the P5.0 billion

Special Development Fund (SDF) intended for the rebuilding, rehabilitation and development of

conflict-affected communities in the autonomous region. Per RA 11054, an amount of P5.0 billion

shall be appropriated as SDF for the period of 10 years.

ALLOCATIONS FOR SELECTED DEPARTMENTS This section examines the budget distribution of five selected NGAs, namely, the Departments of

Agriculture (DA), Education (DepEd), Health (DOH), Public Works and Highways (DPWH), and

Social Welfare and Development (DSWD). It analyzes the 2021 expenditure program in contrast

to the 2020 levels (see Annex 2-A to 2-E for details).

Note that the Mindanao budget analysis excludes the allocations for the regional departments of

the BARMM as they are separately funded through the Regional Government with the block grant

given in pursuant to the Bangsamoro Organic Law (RA 11054). For the proposed 2021 budget,

only DepEd has a proposed funding of P725 million for BARMM.

Agriculture. Allocations for the DA are mainly used to support the farmers and fisherfolks in

order to increase agricultural productivity. This will help ensure food security in the country

especially in the midst of the pandemic and possible threats to global food supply. Total

expenditure program for DA in 2021 amounts to P66.4 billion which is higher by 2.6% compared

to P64.7 billion in 2020. Funds for DA are geographically distributed as follows: Luzon excluding

NCR (P23.1 billion or 34.8%), Visayas (P7.1 billion or 10.7%), Mindanao (P8.7 billion or 13.1%),

and NCR (P27.2 billion or 41.0%).

All the three island groups post significant increase in allocation with a combined increment of

P10.9 billion for next year. On the other hand, NCR sees a large budget cut of P7.0 billion or

20.5% from its current year's allocation of P34.2 billion. Allocation for Nationwide will also be

reduced by P2.2 billion or 85.7%.

By island group, Luzon posts the highest funding growth of 51.9% in 2021. More than half of

Luzon’s budget increase (P7.9 billion) is allotted to Regions II and III which will receive an

additional P2.6 billion and P2.3 billion, respectively. Regions I and V are also set to receive an

added funding of P1 billion each. Meanwhile, close to half of the P1.8 billion increment for the

Visayas will go to Region VI. In Mindanao, Regions X and XII account for over half a billion

each of the total P1.2 billion increase next year. Among the 17 regions, only Regions IV-A and

XI will have slightly lower allocations in 2021.

Education. With its 2021 proposed expenditure program, DepEd ensures that learners will be

able to continue to have access to quality education while keeping them safe from the threat of the

pandemic. DepEd will receive a total budget of P606.5 billion which is 9.4% or P52.3 billion

higher than in 2020. Allocations to each island group will grow by 23%-25% in 2021. DepEd also


sees an increase in its non-regionalized budget. Funding for the Central Office goes up to around

P2.6 billion (from only P0.7 billion) while Nationwide allocation grows significantly to P31.7

billion (from only P0.4 billion). It is important, however, to clarify whether increases in the Central

Office and Nationwide are primarily reclassifications of expenditure items that were previously

lodged under the NCR (as the latter will be reduced in 2021).

TABLE 2 REGIONAL ALLOCATION OF SELECTED DEPARTMENTS

Regions

Levels, in Billion Pesos Percent Share to Total (%) Increase/(Decrease)

GAA Proposed GAA Proposed Amount Percent (%)

2020 2021 2020 2021 2020-2021 2020-2021

Agriculture 64.7 66.4 100.0 100.0 1.7 2.6

Nationwide 2.5 0.4 3.9 0.5 (2.2) (85.7)

Central Office - - - - - -

NCR 34.2 27.2 52.9 41.0 (7.0) (20.5)

Luzon, net of NCR 15.2 23.1 23.5 34.8 7.9 51.9

Visayas 5.3 7.1 8.2 10.7 1.8 33.9

Mindanao 7.4 8.7 11.5 13.1 1.2 16.6

Education 554.2 606.5 100.0 100.0 52.3 9.4

Nationwide 0.4 31.7 0.1 5.2 31.2 7,273.4

Central Office 0.7 2.6 0.1 0.4 2.0 294.9

NCR 133.0 50.2 24.0 8.3 (82.8) (62.2)

Luzon, net of NCR 210.7 263.5 38.0 43.4 52.8 25.1

Visayas 105.2 129.8 19.0 21.4 24.5 23.3

Mindanao 104.2 128.6 18.8 21.2 24.5 23.5

Health (DOH) 104.5 131.7 100.0 100.0 27.2 26.1

Nationwide 30.7 40.4 29.4 30.7 9.7 31.7

Central Office 24.6 35.4 23.5 26.9 10.8 44.1

NCR 14.3 16.3 13.7 12.4 2.0 13.9

Luzon, net of NCR 15.3 17.4 14.6 13.2 2.1 13.9

Visayas 8.8 9.8 8.4 7.4 1.0 11.8

Mindanao 10.9 12.4 10.4 9.4 1.5 14.0

Public Works and Highways 581.7 667.3 100.0 100.0 85.6 14.7

Nationwide 51.3 - 8.8 - (51.3) (100.0)


NCR 62.0 659.1 10.7 98.8 597.2 963.4

Luzon, net of NCR 220.4 4.0 37.9 0.6 (216.4) (98.2)

Visayas 87.8 1.8 15.1 0.3 (86.0) (97.9)

Mindanao 160.2 2.3 27.5 0.3 (157.9) (98.6)

Social Welfare & Development 164.0 171.2 100.0 100.0 7.2 4.4

Nationwide 2.9 15.6 1.7 9.1 12.7 444.2

Central Office 32.1 20.9 19.6 12.2 (11.3) (35.1)

NCR 8.5 8.1 5.2 4.7 (0.4) (4.6)

Luzon, net of NCR 49.7 52.8 30.3 30.8 3.1 6.2

Visayas 29.4 30.8 17.9 18.0 1.3 4.5

Mindanao 41.4 43.1 25.2 25.2 1.7 4.2

Source of basic data: BESF 2021


The breakdown of the DepEd expenditure program for 2021 shows that Luzon will receive the

highest share at P263.5 billion or 43.4% of the department's total budget. It will get an additional

funding of P52.8 billion or a 5.4 percentage-point increase in budget share from 2020. Visayas

and Mindanao have almost the same allocation at P129.8 billion (21.4%) and P128.6 billion

(21.2%), respectively. Conversely, NCR sees a 15.7 percentage-point decline in budget share given

a huge cut of P82.8 billion, leaving an allocation of P50.2 billion for 2021. Among the 17 regions,

Regions IV-A (P68.2 billion) and III (P58.1 billion) have the highest budget shares of 11.2% and

9.6%, respectively. Meanwhile, ARMM with P725 million (0.1%), CAR with P14.0 billion (2.3%)

and CARAGA with P20.5 billion (3.4%) post the lowest budget shares. All regions save for NCR

post a two-digit growth in their respective budgets.

Health. The DOH is in the forefront of the government’s health response against COVID-19.

The department’s priority expenditures include the procurement of COVID-19 response-related

equipment, commodities and paraphernalia (e.g., test kits, PPEs), and hiring of additional health

workers. The importance of these expenditures is reflected in DOH’s sizeable budget increase of

26.1% or an additional P27.2 billion, bringing the department’s proposed expenditure program to

P131.7 billion. Budgetary increment for DOH in 2021 will mostly go to the non-regionalized

budget, with the Central Office increasing by P10.8 billion or 44.1% and Nationwide growing by

P9.7 billion or 31.7%. Collectively, the increments in the non-regionalized budget will result in a

4.7 percentage-point reduction in the share of the regionalized budget.

Looking into the regionalized allocation, Luzon will receive the largest share at P17.4 billion

(13.2%), followed by NCR (P16.3 billion, 12.4%), Mindanao (P12.4 billion, 9.4%) and Visayas

(P9.8 billion, 7.4%). After NCR, Region VII (P5.6 billion, 4.2%) posts the highest budget share

followed by Region XI (P4.5 billion, 3.4%) and Region III (P4.1 billion, 3.1%). On the other hand,

Region IV-B with P770.4 million and CARAGA with P1.0 billion get the smallest shares of less

than 1%. Most regions post double-digit growth except for Regions IV-A, VII, IX and CARAGA

with single-digit growth.

Public Works and Highways. In addition to the COVID-19 health response, the 2021 budget

also emphasizes measures to promote economic recovery. One of the government’s strategies is

to beef up infrastructure spending to stimulate job generation and economic activity. This is seen

in DPWH’s budget increase of P85.6 billion (14.7%) to a total of P667.3 billion. However, P659.1

billion or 98.8% of the department’s expenditure program is still lumped in NCR. This effectively

leaves only 1.2% of the DPWH budget for the rest of the regions—contrary to a more regionalized

budget in 2020 where 80.5% were shared among the regions of the three island groups.

Note that the 2021 BESF does not reflect any allocation for Central Office and Nationwide, but

the bulk of the DPWH budget is lodged with NCR. It is important to clearly distinguish

appropriations accruing to the Metro Manila district offices from funds that will be used to

implement public works projects elsewhere in the country. Such differentiation should consider

as well a clear definition for classifying expenditures under Nationwide.


Social Welfare and Development. Next year's budget will continue to support the

implementation of social amelioration programs to mitigate the economic effects of the COVID-

19 pandemic to the nation’s most vulnerable sectors. For 2021, the proposed expenditure program

for the DSWD amounts to P171.2 billion which is P7.2 billion (4.4%) higher compared to 2020.

About one-fifth (21.3%) or P36.5 billion of this allocation goes to the department’s non-

regionalized budget. While the collective share of the regions (including NCR) remains at about

79%, allocations within the non-regionalized budget shows a shift of resources for Nationwide.

Allocation for Nationwide will increase by P12.7 billion, pushing its budget share by 7.4 percentage

points. Conversely, the share of the Central Office went down by 7.4 percentage points as its

funding is cut by P11.3 billion.

The breakdown of the DSWD budget for 2021 shows that Luzon gets the largest allocation of

P52.8 billion (30.8%) followed by Mindanao with P43.1 billion (25.2%), Visayas with P30.8 billion

(18.0%), and NCR with P8.1 billion (4.7%). There is practically no movement in the budget shares

of the regions as allocations for all regions (except for NCR) are proportionately increased. NCR

funding is reduced by P393.1 million but this did not significantly affect the region’s budget share.

INFRASTRUCTURE OUTLAY

The National Government is determined to pursue its Build, Build, Build Program in order to

generate jobs and help re-start the economy. NG expects to generate 140,000 to 220,000 additional

jobs next year and spur investments in manufacturing and construction activities. Table 3 shows

the regional breakdown of the infrastructure outlay for FYs 2020-2021. The NG proposes a total

of P1.1 trillion in infrastructure spending for 2021 which is P118.0 billion or 11.9% higher than

the current year's level. The non-regionalized infrastructure budget (referring to allocations under

Nationwide and Central Office) amounts to P919.9 billion or 83.1% of the total programmed

spending for infrastructure in 2021.

The remaining 16.9% of the P1.1 trillion budget for infrastructure in 2021 will be shared among

the 17 regions. The regionalized infrastructure budget only amounts to P187.4 billion—of which

relatively bigger allocation are as follows: NCR (P68.7 billion), BARMM (P19.5 billion), and Region

III (P12.9 billion).

All regions will have lower allocations for infrastructure in 2021, except for BARMM that will

increase by P1.6 billion from its current allocation of P18.0 billion. The Central Office which

already captures the bulk of the infrastructure fund likewise corners the biggest increment—thus,

increasing its share to 66.7% which is 20 percentage points higher than in 2020. Allocation to the

Central Office amounting to P739.1 billion is 60.1% or P277.4 billion higher than its infrastructure

spending level this year. Meanwhile, allocation under Nationwide which amounts to P180.8 billion

is also higher by 23.5% over its current allocation of P146.4 billion. The increase of P34.4 billion

under Nationwide resulted in a higher budget share of 16.3%.


TABLE 3 INFRASTRUCTURE OUTLAYS BY REGION, 2020-2021

Region Levels, in Billion Pesos % Share to Total Increase/(Decrease)

2020 2021 2020 2021 Amount %

Nationwide 146.4 180.8 14.8 16.3 34.4 23.5

Central Office 461.7 739.1 46.7 66.7 277.4 60.1

NCR 94.1 68.7 9.5 6.2 (25.4) (27.0)

Luzon, Net of NCR 139.2 53.5 14.1 4.8 (85.7) (61.6)

CAR 12.6 3.8 1.3 0.3 (8.8) (70.0)

Region 1 15.8 6.7 1.6 0.6 (9.1) (57.5)

Region II 15.4 7.6 1.6 0.7 (7.9) (51.0)

Region III 28.8 12.9 2.9 1.2 (15.9) (55.3)

Region IV-A 28.9 9.9 2.9 0.9 (19.0) (65.9)

Region IV-B 14.2 5.0 1.4 0.4 (9.2) (64.9)

Region V 23.5 7.7 2.4 0.7 (15.8) (67.1)

Visayas 59.0 22.9 6.0 2.1 (36.1) (61.2)

Region VI 19.9 9.1 2.0 0.8 (10.8) (54.2)

Region VII 20.0 7.8 2.0 0.7 (12.2) (60.9)

Region VIII 19.1 6.0 1.9 0.5 (13.1) (68.7)

Mindanao 88.9 42.4 9.0 3.8 (46.5) (52.3)

Region IX 12.3 3.6 1.2 0.3 (8.7) (71.0)

Region X 16.7 4.9 1.7 0.4 (11.7) (70.3)

Region XI 19.6 6.6 2.0 0.6 (13.0) (66.4)

Region XII 11.5 3.8 1.2 0.3 (7.7) (66.7)

CARAGA 10.9 3.9 1.1 0.4 (7.0) (64.3)

BARMM 18.0 19.5 1.8 1.8 1.6 8.8

TOTAL 989.3 1,107.3 129.0 110.7 118.0 11.9


Infrastructure by Sub-Category

A disaggregation of the infrastructure outlay by general sub-category (as presented in the 2021

BESF) is shown in Table 4. Note that a sub-category also labeled as infrastructure outlay (to be

differentiated henceforth as “SC-infra outlay”) accounts for about 65% of the total planned

spending for infrastructure in 2021. This amounts to P715.0 billion which is 24.7% or P141.6

billion higher compared to 2020.

Under SC-infra outlay are projects relating to flood control, airports, power, water supply, sewer

and seaport systems, road networks (including Right-of Way), and railway, among others

(see Annex 3). The BESF presents similar type of projects under two separate sub-categories—(a)

budgetary support to government corporations (BSGC), and (b) investment in GOCCs.

Infrastructure outlay under BSGC in 2021 amounts to P40.2 billion while investment in GOCCs

is smaller at around P0.8 billion—both have reduced allocation compared to the current year's

level. Distinction between the two needs to be clarified.


TABLE 4

INFRASTRUCTURE OUTLAYS BY CATEGORY, 2020-201

Particulars Levels, in Million Pesos

% Share to Total Infra

Increase/ (Decrease)

2020 2021 2019 2020 Amount %

Infrastructure Outlay ("SC-infra outlay") 573,373.8 714,952.9 57.96 64.57 141,579.1 24.7

Internal Revenue Allotment 129,784.2 139,098.6 13.12 12.56 9,314.3 7.2

Buildings and Other Structures 127,002.7 95,738.0 12.84 8.65 (31,264.7) (24.6)

Budgetary Support to GOCCs 50,460.9 40,212.8 5.10 3.63 (10,248.1) (20.3)

Machinery and Equipment Outlay 27,450.5 35,476.9 2.77 3.20 8,026.4 29.2

Local Government Support Fund 28,852.5 23,867.2 2.92 2.16 (4,985.2) (17.3)

Bangsamoro Autonomous Region in Muslim Mindanao (BARMM)

17,726.8 19,334.0 1.79 1.75 1,607.2 9.1

National Disaster Risk Reduction and Management Fund

11,701.2 13,101.2 1.18 1.18 1,400.0 12.0

Rent/Lease Expenses 6,171.2 7,129.6 0.62 0.64 958.4 15.5

Semi-Expandable Furniture, Fixtures and Books Expenses

4,842.8 4,865.4 0.49 0.44 22.6 0.5

Land Improvements Outlay 2,573.0 4,564.7 0.26 0.41 1,991.7 77.4

Repairs and Maintenance - Leased Assets 5,062.9 3,141.4 0.51 0.28 (1,921.5) (38.0)

Subscription Expenses 1,638.4 2,708.0 0.17 0.24 1,069.7 65.3

Transportation Equipment Outlay 225.4 1,000.1 0.02 0.09 774.7 343.7

Investment in GOCCs 1,110.4 792.2 0.11 0.07 (318.2) (28.7)

Other Supplies and Materials Expenses 390.6 673.5 0.04 0.06 283.0 72.5

Subsidies – Others 10.0 237.2 0.00 0.02 227.2 2,271.6

Internet Subscription Expenses 105.1 171.2 0.01 0.02 66.1 62.9

Repairs and Maintenance - Buildings and Other

Structures 25.4 158.9 0.00 0.01 133.5 526.2

Financial Assistance to LGUs 447.7 43.8 0.05 0.00 (403.9) (90.2)

Furniture, Fixtures and Books Outlay 79.8 23.5 0.01 0.00 (56.3) (70.6)

Computer Software 13.5 20.0 0.00 0.00 6.6 48.7

Heritage Assets 231.0 7.8 0.02 0.00 (223.2) (96.6)

Semi-Expandable Machinery and Equipment Expenses

0.7 6.4 0.00 0.00 5.7 788.8

Total Infrastructure Outlays 989,280.3 1,107,325.1 100.00 100.00 118,044.8 11.9

Note: Shares appearing as 0.00 is not actually zero but less than 0.01%. Source of basic data: BESF 2021

Infrastructure outlays also include a total of P139.1 billion in Internal Revenue Allotment (IRA)5

which is lodged under Nationwide for subsequent downloading to the LGUs. This is separate

from the Financial Assistance to LGUs that is primarily funded out of the Local Government

Support Fund or LGSF (P23.9 billion) and the BARMM (P19.3 billion). While the latter will

5 The amount represents 20% of the total IRA for 2021 amounting to P695.5 billion. Section 287 of the 1991 Local Government Code provides the LGUs shall appropriate in its annual budget no less than 20% of its annual IRA for development projects.


increase by P1.6 billion or 9.1%, infrastructure outlay under LGSF will be lower by around P5.0

billion or 17.3%.

Allocation for Buildings and Other Structures (like school buildings, hospitals and health centers)

accounts for P95.7 billion or 8.7% of total infrastructure outlay in 2021. This is lower by P31.3

billion or 24.6% compared to 2020. Meanwhile, infrastructure budget under the National Disaster

Risk Reduction and Management Fund (NDRRMF) in 2021 amounts to P13.1 billion which is

P1.4 billion or 12% more than the current year's level of P11.7 billion.

It may be noted that sub-categories for infrastructure outlay also includes items that could be

classified under MOOE (e.g., rent/lease expenses, internet, subscription expenses, and other

supplies and materials). Some of the identified infrastructure outlay category (e.g.,

furniture/fixtures and books outlay, land improvement, heritage assets, machinery and equipment,

and transportation equipment) may fall under Capital Outlay, but are not the type of capital

expenditures that directly stimulate economic activity and contribute to job generation.

Infrastructure by Project Type

Table 5 presents in more detail the type of projects that will be funded out of the P1.1 trillion

infrastructure program in 2021. Over one-third (36.8%) of the infrastructure fund will finance the

road network projects that will help increase the mobility of people and goods. Total allocation

for road networks amounts to P407.2 billion—the bulk of which (P362.7 billion) is lodged at the

Central Office, with only P39.8 billion for the regions (excluding NCR with P4.7 billion).

Three other big-ticket infrastructure projects include the following: flood control (P156.9 billion),

railway system (P97.6 billion), and buildings (P60 billion). Relatively lower allocations go to school

buildings (P29.9 billion), right-of-way (P27.4 billion), and irrigation systems (P19.2 billion).

Meanwhile, about 16.5% of the planned infrastructure spending next year is expected to finance

local projects through the Internal Revenue Allotment or the 20% Development Fund (P139.1

billion) and the Financial Assistance to LGUs particularly under the LGSF (P23.9 billion) and the

BARMM (P19.3 billion). Except for the BARMM, infrastructure funds are classified under

Nationwide for subsequent downloading to the LGUs. The 20% Development Fund from the

IRA which is computed per LGU based on a formula provided in RA 7160 should have already

been part of the regionalized budget. It is not certain as to which type of infrastructure projects

will actually be funded out of the IRA and the assistance to BARMM.

On the other hand, the GAA usually provides a menu of projects that LGUs can implement

utilizing the LGSF. These projects may include the construction, concreting, repair or

improvement of local roads/bridges, public markets, slaughterhouses, multi-purpose buildings,

drainage canals, public parks, fish ports, cold storage facilities, street lighting, and purchase of

ambulance, trucks, and mini dump trucks.


TABLE 5 REGIONAL INFRASTRUCTURE OUTLAYS BY TYPE, 2021

(IN MILLION PESOS)

Particulars Nationwide Central Office

NCR Total Regions (Net of NCR)

TOTAL

Road Networks - 362,691.1 4,668.3 39,814.4 407,173.8

Flood Control - 144,355.3 2,755.2 9,744.5 156,855.0

Internal Revenue Allotment 139,098.6 - - - 139,098.6

Railway Systems - 96,213.0 1,339.3 - 97,552.3

Buildings - 38,612.5 8,647.5 12,699.8 59,959.8

Financial Assistance to Local Government Units 23,911.0 - - 19,334.0 43,245.0

Other Machinery and Equipment - - 33,000.0 64.9 33,064.9

Other Infrastructure Assets - 22,488.8 8,518.8 930.6 31,938.2

School Buildings - 23,601.5 119.1 6,226.8 29,947.4

Right-of-Way - 27,429.9 - - 27,429.9

Irrigation Systems - 701.0 - 18,525.7 19,226.7

Infrastructure Outlay 13,101.2 - - - 13,101.2

Rents - Building and Structures - 7,120.2 9.0 0.5 7,129.6

Water Supply Systems - 4,336.3 526.7 1,586.6 6,449.5

Furniture and Fixtures - 4,866.5 - 22.3 4,888.8

Reforestation Projects 122.9 2.4 4,037.6 4,162.9

Power Supply Systems - - 3,324.5 279.0 3,603.5

Housing and Community Facilities - - 3,369.2 51.3 3,420.5

Other Leased Assets - 3,141.4 - - 3,141.4

ICT Software 2,825.3 18.8 14.2 3.0 2,861.3

Other Structures - 1,309.7 417.4 1,107.4 2,834.4

Hospitals and Health Centers - 752.4 - 1,584.4 2,336.8

Information and Communications Technology Equipment

1,538.7 63.8 70.5 98.1 1,771.1

Watercrafts - 177.8 822.3 - 1,000.1

Subsidy Support to Operations of GOCCs - - - 1,000.0 1,000.0

Hostels and Dormitories - - 818.5 818.5

Sewer Systems - 615.0 62.5 48.7 726.2

Other Supplies and Materials Expenses - 258.3 234.8 180.5 673.5

Airport Systems - 1.0 464.0 - 465.0

Other Land Improvements - 27.2 10.8 342.8 380.8

Other Subscription Expenses 307.9 2.1 0.4 11.0 321.4

Subsidies – Others - 120.4 116.7 0.1 237.2

Internet Subscription Expenses - 71.4 90.5 9.3 171.2

Technical and Scientific Equipment - 168.0 168.0

Communication Networks - 14.6 57.5 34.2 106.3

Aquaculture Structures - - - 21.0 21.0

Computer Software - - - 20.0 20.0

Seaport Systems - 11.2 - - 11.2

Historical Buildings - - 7.8 - 7.8

Communication Equipment - - 2.7 - 2.7

Library and Other Reading Material Subscription Expenses

- 1.0 - 0.9 1.9

TOTAL 180,782.6 739,124.9 68,652.1 118,765.5 1,107,325.1



Note that the P23.9 billion LGSF includes the amount of P16.4 billion as Support to the Barangay

Development Program of the National Taskforce to End Local Communist Armed Conflict

(NTF-ELCAC) to finance the implementation of various support programs in barangays cleared

by the NTF-ELCAC. Each cleared barangay shall receive an amount of at most P20 million for

projects like farm-to-market roads, school building, water and sanitation, health stations,

electrifications, agricultural, livelihood and technical vocational trainings. It can also be used for

assistance to indigent individuals or families (e.g., medical burial, transportation, food, cash for

work and educational assistance).

EQUITY AND THE NATIONAL BUDGET

One way to assess the equity dimension of the budget is to look at its regional distribution.

Table 6 presents the regional breakdown FYs 2019-2021, in which agencies without regional

offices but whose funds are lodged with NCR are excluded to avoid bloating the NCR figures.

Non-regionalized budgets tagged as “Central Office” and “Nationwide” are likewise dropped. The

per capita figure, which accounts for differences in regional population and is indicative of the

average allocation per person, is used.

Under the 2021 proposed budget, NCR leads the regions with a P103,891 budget per capita (BPC).

The region also has the highest average per capita of P88,082 in 2019-2021. Meanwhile, CAR,

CARAGA, Region II, and Region IV-B follow with average per capita allocations ranging from

P22,534 to P30,173. Except for CARAGA, all of the top regions are located in Luzon.

On the other hand, Region IV-A, Region III, Region VII, Region XII, and Region VI are in the

bottom five in terms of average BPC. Of these, Region IV-A has the lowest BPC of P11,951 while

the other four have values that range from P14,417 to P17,321. Of the bottom five, two regions

(IV-A and III) are from Luzon and another two (VI and VII) are from the Visayas.

Other regions trail behind NCR by a wide margin. In terms of average BPC, NCR has a value that

is almost three times that of CAR’s, which posts the second highest figure. For 2021, this margin

is even higher at almost four times. Note, however, that transfers to regional offices during the

year will result in subsequent adjustments in regional distribution. Nevertheless, an examination

of 2019 actual values reveals that even after transfers, NCR remains significantly above the rest,

with a BPC that is 3.7 times the level of CAR. The margin is more pronounced when comparing

NCR with the region at the bottom of the list. In terms of average BPC, NCR’s value is 7.4 times

that of Region IV-A. This widens further to 8.8 times when comparing the proposed 2021 figures.


TABLE 6

REGIONAL BUDGET PER CAPITA, 2019-2021 (NET OF NATIONWIDE, CENTRAL OFFICE, AND 6 NGAS UNDER NCR)

Region Actual GAA Proposed Average

Rank 2019 2020 2021 2019-2021

NCR 97,257.3 63,097.8 103,890.8 88,082.0 1

Luzon, net of NCR 14,251.9 19,120.2 16,089.6 16,487.2

CAR 26,611.7 35,792.4 28,114.6 30,172.9 2

Region I 16,595.9 20,902.7 18,188.5 18,562.4 12

Region II 20,805.0 25,968.5 22,816.3 23,196.6 4

Region III 12,657.4 16,364.9 14,227.4 14,416.6 16

Region IV-A 10,216.0 13,815.2 11,820.8 11,950.7 17

Region IV-B 18,587.1 27,121.5 21,892.0 22,533.5 5

Region V 16,084.9 23,868.5 18,768.9 19,574.1 10

Visayas 15,361.1 20,371.6 17,958.8 17,897.2

Region VI 15,016.9 19,538.5 17,408.7 17,321.4 13

Region VII 13,722.4 17,757.8 16,226.6 15,902.3 15

Region VIII 18,686.8 26,146.1 21,776.0 22,203.0 6

Mindanao 15,047.2 24,488.8 20,172.3 19,902.8

Region IX 17,539.6 24,736.1 20,838.8 21,038.2 8

Region X 16,867.9 24,485.0 18,620.8 19,991.2 9

Region XI 14,675.1 25,188.4 16,357.5 18,740.4 11

Region XII 14,136.0 18,541.2 15,243.6 15,973.6 14

CARAGA 20,488.2 29,880.1 23,114.8 24,494.4 3

BARMM 8,497.8 26,832.0 30,057.8 21,795.9 7

TOTAL 25,200.0 26,219.3 28,544.7 26,654.7

a/ Population used is based on the Updated Projected Population Based on 2015 Population Census by Five- Year

Age Group, Sex, Single-Calendar Year and by Province: 2015 - 2025 (PSA) b/ From 2019 (actual) to 2021 (proposed), between 96% and 99% of the Judiciary's budget is in the Central Office, with minimal allocations for selected regions. Thus, the Judiciary was not part of the agencies considered. Source of basic data: BESF 2021, and PSA

The BPC of each major island group is also computed. Of the three island groups, excluding NCR,

Mindanao has the highest figure at P19,903 while Luzon has the lowest at P16,487. The figures do

not significantly deviate from each other, with the Mindanao figure at around 1.1 times and 1.2

times the Visayas and Luzon amounts, respectively. However, when these are compared with

NCR’s average BPC, the margins increase substantially given that NCR’s figure is 4.4 times that of

Mindanao’s and 5.3 times that of Luzon’s.

Regional Conditions and Budget Shares

Table 7 presents the 2021 regional budget distribution and four socio-economic indicators

[i.e., population, unemployment, poverty (based on number of poor individuals), and gross

regional domestic product (GRDP)] that will be used to examine if the budget closely corresponds

to regional conditions. The indicators are presented as regional shares to country total. Poverty

and unemployment were selected for being important development indicators in achieving

"inclusive growth and a high-trust society", which are envisioned by the Philippine Development

Plan 2017-2022. The poverty estimates are based on latest data from the 2018 Family Income and


Expenditure Survey (FIES). The 2018 figures are used in the absence of more recent information

on the state of poverty during the pandemic. Meanwhile, the unemployment figures are from the

July 2020 Labor Force Survey (LFS). The latter provides a picture of regional unemployment

conditions given the adverse effects of the COVID-19 pandemic.

The two other indicators – population and regional GDP – are measures of demand and capacity,

respectively. More populous regions have relatively higher demand for public goods and services,

while higher income ones (i.e., higher regional GDP) are regarded as better-off, with better capacity

to provide for their needs. Population figures are based on Philippine Statistics Authority (PSA)

projections for 2021. Meanwhile, the 2018 GRDP are presented, being the latest figures available

from PSA.

The difference between (a) 2021 regional budget share and (b) regional indicator share to the

country total is a simple tool to assess how closely the budget corresponds to regional needs (i.e.,

measured by population, poverty, unemployment) and capacity (i.e., GRDP). The budget is said

to correspond to regional conditions when the difference between the (a) budget share and the (b)

indicator share is close to zero. Significant deviations (i.e., difference that is substantially-above or

below zero) can indicate non-correspondence and severe disparity in the regional distribution of

the budget. Note that the assessment is not conclusive but only indicative of the budget’s

responsiveness to conditions of the regions. The non-regionalized budgets, though not reflected

in Table 7, still benefit the regions as they are later downloaded during budget execution. This

caveat must be noted in understanding the following observations.

Region IV-A, NCR, and Region III are the three most populous regions which account for 38.9%

of the country’s population. The three regions are also the largest contributors to the country’s

gross domestic product (GDP), with a combined share of 61.6% in 2018. Meanwhile, CAR,

CARAGA, and Region IV-B are the least populous regions, accounting for 7.1% of total

population. Two of these regions (CARAGA and Region IV-B) have the lowest regional GDP.

Together with BARMM, the GDP of the three regions is equivalent to 3.4% of the country’s

economic output in 2018.

Based on the July 2020 Labor Force Survey (LFS), the NCR, Region IV-A, and Region III posted

the highest number of unemployed individuals with a combined 51.8% share to total unemployed

persons in the country. On the other hand, BARMM, Region IV-B, and CAR have the lowest

shares of unemployed persons, making up 4.6% of the country total. The July 2020 LFS identified

a total of 4.6 million unemployed individuals throughout the country.


TABLE 7

REGIONAL BUDGET SHARES AND KEY SOCIO-ECONOMIC INDICATORS

Regions

Shares by Socio-Economic Indicators (%) [A] Budget Shares [B] (%)

Difference [B-A]

Popula-tion 1/ (2021)

Unemploy-ment 2/

(July 2020)

Poverty 3/ (2018)

GRDP 4/ (2018)

2021 BESF

Popula-tion

(2021)

Unemploy-ment (July 2020)

Poverty (2018)

GRDP (2018)

NCR 12.7 20.3 1.7 37.5 46.1 33.5 25.8 44.4 8.6

Luzon, net of NCR 44.6 48.6 30.2 34.4 25.1 (19.4) (23.5) (5.1) (9.3)

Region I 4.8 5.6 2.9 3.1 3.1 (1.7) (2.5) 0.2 (0.1)

CAR 1.7 1.7 1.2 1.7 1.6 (0.0) (0.0) 0.4 (0.1)

Region II 3.4 3.3 3.3 1.7 2.7 (0.7) (0.6) (0.6) 0.9

Region III 11.4 12.1 4.7 9.3 5.7 (5.7) (6.4) 0.9 (3.6)

Region IV-A 14.8 19.4 6.2 14.8 6.1 (8.7) (13.2) (0.1) (8.6)

Region IV-B 2.9 1.6 2.6 1.6 2.2 (0.7) 0.6 (0.4) 0.7

Region V 5.6 4.9 9.2 2.1 3.7 (1.9) (1.2) (5.5) 1.5

Visayas 18.9 16.0 23.0 12.9 11.9 (7.0) (4.1) (11.1) (1.0)

Region VI 7.2 4.6 7.2 4.2 4.4 (2.8) (0.2) (2.8) 0.2

Region VII 7.3 8.1 7.8 6.6 4.2 (3.2) (3.9) (3.6) (2.5)

Region VIII 4.4 3.4 8.0 2.0 3.3 (1.0) (0.1) (4.7) 1.3

Mindanao 23.9 15.1 45.1 15.2 16.9 (7.0) 1.8 (28.3) 1.7

Region IX 3.5 2.1 6.9 2.0 2.5 (0.9) 0.4 (4.4) 0.6

Region X 4.6 3.0 6.4 4.0 3.0 (1.6) (0.0) (3.4) (1.0)

Region XI 4.9 3.7 5.5 4.7 2.8 (2.1) (0.9) (2.7) (1.9)

Region XII 4.5 3.2 7.6 2.7 2.4 (2.1) (0.7) (5.2) (0.3)

CARAGA 2.5 1.8 4.7 1.1 2.0 (0.5) 0.2 (2.6) 0.9

BARMM 3.9 1.3 14.0 0.7 4.1 0.2 2.8 (10.0) 3.3

1/ Population used is from the Updated Projected Population Based on 2015 Population Census by Five-Year Age Group,

Sex, Single-Calendar Year and by Province: 2015 - 2025 (PSA). 2/ Share of unemployed individuals in the region to the total number of unemployed individuals in the country 3/ Share of poor people in the region to the total number of poor individuals in the country 4/ GRDP base year is 2000. Sources of basic data: BESF 2021, and PSA

When regional populations are aggregated by major island group, Luzon (i.e., excluding NCR) is

the most populous with a 44.6% share, followed by Mindanao with 23.9% and Visayas with 18.9%.

The same ordering holds for GDP shares, given that Luzon produced 34.4% of the country’s

output, followed by Mindanao with 15.2% and Visayas with 12.9%. The lower GDP shares relative

to population shares of the three major island groups can be explained by NCR’s significant GDP

share at 37.5%, despite having only 12.7% of the country population. Meanwhile, Visayas has a

larger share of unemployed individuals at 16.0% even if it has a smaller population compared to

Mindanao.

Population Share. An important observation is that NCR’s budget share far exceeds its

population share by 33.5 percentage points. While only 12.7% of the country’s population lives in

NCR, its share to the total budget is 46.1%. This sizable figure has consequences on the remaining

amount for other regions to share. In fact, all regions (except for BARMM) have budget shares

that are lower than their population shares.


These observations point to a heavily disproportionate distribution of the budget when assessed

against regional population. Region IV-A presents the largest disparity among regions, given a

budget share that is 8.7 percentage points lower than its population share. This is consistent with

the observation for Table 6 in the preceding subsection, in which NCR is at the top while Region

IV-A is at the bottom in terms of BPC. As a caveat, one should note that perfect equality or exact

correspondence between regional budget share and population share is not necessarily ideal. For

instance, expenditure items like capital outlays vary across regions due to varying needs. However,

the indicator is able to provide an insight on the extent of disparity, in which the regional

distribution of the budget is far from reflective of the regional population (i.e., a proxy for demand

for public goods and services).

Unemployment Share. An assessment of regional unemployment and budget shares yields a

similar observation, in which NCR holds a favorable position. The region’s budget share is 25.8

percentage points above its share to total unemployed individuals. All other regions have budget

shares that are lower than their unemployment shares, except for Region IV-B, Region IX,

CARAGA, and BARMM. Among regions with negative values, Region IV-A posts a significantly

large deviation of 13.3 percentage points.

Government can help generate new jobs through infrastructure outlays and expended demand for

goods and services. Thus, strategic spending aimed at areas with more unemployed individuals can

help stimulate local economies. While not all components of the budget have the same impact on

jobs creation, larger regional spending, in general, will help in the recovery of businesses and

reduction in the unemployment rate.

Poverty Share. The third indicator is regional share to the total number of poor individuals in

the country. This is the area where NCR’s dominance in terms of budget share is most apparent,

and this dominance gives rise to severe disparities in the regional budget distribution. With 1.7%

of the country’s poor people, NCR’s budget share is 44.4 percentage points above its poverty

share. Among regions, BARMM has a noticeably large deviation of 10 percentage points arising

from a budget share of 4.1% and a poverty share of 14.0%. Note that these observations may

hold amid the likelihood of higher poverty incidence due to the pandemic, assuming the

distribution of poor people across regions remain roughly the same.

Higher government spending, particularly investments in health and education, are needed in areas

with relatively large numbers of poor people. Other than addressing the poor’s immediate needs

(e.g., food and livelihood), long-term government investments in human development lift people

out of poverty. Better-educated and healthy individuals have better job prospects which come with

decent wages.

GDP Share. The fourth indicator is regional share to the country’s GDP. Regions with higher

shares to GDP are relatively better-off, with more robust economies that provide jobs and improve

peoples’ spending capacity. One important idea, in this regard, is that a higher budget share may


be desirable for regions with comparatively low incomes (i.e., lower shares to country GDP). By

spending more for regions with lower incomes, the government is able to perform its redistributive

function and promote development in resource-strapped areas.

A contrasting observation can be made for the two regions with the biggest incomes. While NCR’s

share to the national budget is 8.6 percentage points higher than its share to GDP, the budget

share of Region IV-A is noticeably lower, as indicated by the negative figure. In this sense, NCR

has an advantageous position even when it has the highest income among regions. The same,

however, does not hold for Region IV-A.

The three regions with the lowest incomes (BARMM, CARAGA and Region IV-B) post positive

figures—i.e., larger budget shares relative to their shares to country GDP. This essentially suggests

that the budget of these regions are subsidized by better-off regions whose budget shares are lower

than their contribution to the national GDP. The BARMM posts the highest figure, with a budget

share that is 3.3 percentage points above GDP share. By major island group, Mindanao has a

budget share that is 1.7 percentage points above its 15.2% share to GDP. On the other hand,

Luzon and Visayas have budget shares that are lower than their shares to GDP.

Assessment on Per Capita Basis

Another way of assessing how closely the 2021 proposed budget is associated with regional

conditions is through the use of scatterplot diagrams. In the discussions that follow, the regional

budget per capita (BPC) is assessed against the (a) regional unemployment rate, (b) regional poverty

incidence, and (c) regional GDP per capita or income per capita (see Annex 5). Unlike the earlier

discussion that presented regional shares relative to country total, this section uses the

unemployment rate per region (ratio of unemployed individuals to total labor force in the region),

poverty incidence per region (ratio of poor individuals to regional population), and regional income

per capita (GRDP per capita in 2018).

In the assessment, both scatterplot diagram and correlation coefficient are presented to help shed

light on the strength of the relationship between regional BPC and the selected socio-economic

indicator. An upward-sloping trendline (i.e., dotted line in the diagram), together with a correlation

coefficient of 0.70 and higher, is indicative of a strong positive relationship. A correlation

coefficient from 0.50 to below 0.70 indicates moderate positive relationship while a coefficient

between 0.3 and 0.5 suggests a weak relationship. Lower coefficients imply a very weak to no

relationship.

Unemployment Rate. For the BPC-unemployment nexus, the correlation coefficient is 0.50,

which means there is a moderate positive relationship. This is shown in Figure 1 through the

upward-sloping trendline. The moderate relationship implies that regions with relatively higher

unemployment rates have higher BPC, in general. The relationship can have positive

consequences, as explained earlier, given the ability of higher government expenditures to stimulate


local economies and create new jobs. However, the moderate relationship is by no means an

indicator of sufficiency. It does not provide an answer on whether or not the budget allocation per

region is enough to address unemployment problems.

Another feature of the assessment is the use of quadrants based on median values for the regional

BPC and the unemployment rate. Regions in Quadrant 1 (Q1), on the upper right-hand side of the

diagram, are those with above-median BPC and unemployment rates. Those in Q2 or the upper

left-hand corner have below-median unemployment rates but above-median BPC, while those in

Q3 on the lower left-hand corner are regions with both below-median unemployment rates and

BPC. Regions in Q4 or the lower right-hand corner are those with above-median unemployment

rates but below median BPC. The median unemployment rate is 8.1% while the median BPC is

P18,769.

FIGURE 1 REGIONAL BPC AND UNEMPLOYMENT RATE

Source of basic data: BESF 2021, and PSA

Certain regions can be considered as outliers for having significantly higher values compared to

others. NCR in Q1 is worth mentioning for having a significantly high unemployment rate of

15.8% (i.e., 7.7 percentage points above the median) and also a substantially high BPC at P103,891

(i.e., more than five times the median). Meanwhile, BARMM in Q2 has a below-median

unemployment rate of 3.8% but an above-median BPC of P30,058 (i.e., 1.6 times the median

value).

Though probably not an outlier, Region IV-A in Q4 is noticeable for having an above-median

unemployment rate of 12.4% and a below-median BPC of P11,821. All other regions tend to

congregate around the median BPC but differ in terms of the unemployment rate. In general, those

in Q2 can be considered as relatively better-off because of their below-median unemployment

rates and above-median BPC, while those in Q4 are relatively worse-off for having the opposite.

Poverty Incidence. The correlation between BPC and poverty incidence yields a negative but

very weak relationship at -0.21. This can be observed through the downward-sloping trendline. It

CAR

NCR

IV-A

BARMM

-

20,000

40,000

60,000

80,000

100,000

120,000

- 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0

Bu

dg

et

per

cap

ita (

PH

P)

Unemployment Rate (%)

Q1 Q2

Q3 Q4


should be noted that while a negative relationship exists, the very weak correlation implies that the

BPC hardly responds to regional poverty incidence.

NCR is an outlier for having a substantially higher BPC but significantly lower poverty incidence

at 2.2%. Note that the median value for the poverty incidence is 17.7%. The region appears in

Q2 – a favorable spot for regions given below-median poverty incidence and above-median BPC.

FIGURE 2 REGIONAL BPC AND POVERTY INCIDENCE


BARMM, which is another outlier, has a substantially higher poverty incidence at 61.8% and a

BPC of P30,058. It is located in Q1, in which regions with above-median poverty figures and BPC

are found. Meanwhile, among regions with above-median poverty incidence, Region XII in Q4

has the lowest BPC at P15,244.

GRDP per capita. The regional BPC is more closely associated with GRDP per capita after

yielding a correlation coefficient of 0.85 which suggests strong correlation. Figure 2 shows this

relationship through a steeper upward-sloping trendline. NCR remains an outlier given a GRDP

per capita of P485,725 or almost five times the median GRDP per capita of P98,937. Along with

CAR and a few others, NCR lies in Q1 or the most favorable quadrant where above-median BPC

and GRDP per capita regions are located.

Other regions, such as BARMM, which have below-median GRDP per capita and above-median

BPC lie in Q2. While generally worse-off than regions in Q1, those in Q2 receive relatively better

support from the NG through higher BPC than their counterparts in Q3. Meanwhile, Region IV-

A and other regions in Q4, though having below-median BPC, are relatively better-off regions

when it comes to GRDP per capita. Regions in Q4 have higher incomes per capita compared to

those in Q2 and Q3.

NCR

IV-AXII

BARMM

-

20,000.0

40,000.0

60,000.0

80,000.0

100,000.0

120,000.0

- 10 20 30 40 50 60 70

Budget

per

capita (

%)

Poverty Incidence (%)

Q3 Q4

Q1 Q2


FIGURE 3

REGIONAL BPC AND GRDP PER CAPITA


The strong correlation suggests that BPC increases with GRDP per capita. People in better-off

regions tend to receive more public goods and services through higher government spending.

While there is not enough information to show the nature of spending in higher-income regions

(e.g., social services, economic services, administration and support), the idea that better-off

regions have higher BPC raises some issues on the redistributive nature of the budget.

Sector-specific Expenditures

Disaggregating the BPC by sector may help uncover nuances between the budget and key socio-

economic indicators which are otherwise not obvious when looking at the budget as a whole. This

section distinguishes the budget in terms of economic and social components, in an attempt to

examine the extent of correlation between specific components and the three socio-economic

indicators. Thus, instead of using the overall BPC, the economic and social BPC are used in the

following discussion.

Agencies that make up the economic and social dimensions of the budget were determined based

on component-sectors identified in the Budget of Expenditures and Sources of Financing (BESF).

For the economic component, the regional figures (i.e., excluding those under the “Central Office”

and “Nationwide”) of the following departments are included: Agriculture (DA), Agrarian Reform

(DAR), Environment and Natural Resources (DENR), Energy (DOE), Transportation (DOTr),

Tourism (DOT), Information and Communications Technology (DICT), and Public Works and

Highways (DPWH). On the other hand, the social component is composed of regional budgets

of the following departments: Education (DepEd), Health (DOH), Human Settlements and Urban

Development (DHSUD), Labor and Employment (DOLE), and Social Welfare and Development

(DSWD). Other departments were not included due to classification issues. For instance, the

Departments of Trade and Industry (DTI) and Science and Technology (DOST) have huge

allocations cutting across both economic and social components.

NCR

CAR

IV-A

BARMM

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

110,000

- 100,000 200,000 300,000 400,000 500,000

Bu

dg

et

per

cap

ita (

PH

P)

GRDP per capita (PHP)

Q3 Q4

Q2 Q1



FIGURE 4

ECONOMIC EXPENDITURES AND SELECTED INDICATORS, BY REGION

GRDP Per Capita Unemployment Rate (%) Poverty Incidence (%)

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

0 100,000 200,000 300,000 400,000 500,000 600,000

Econom

ic E

xpenditure

per

capita (

PH

P)


0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

- 5.0 10.0 15.0 20.0

Econom

ic E

xpenditure

s

per

capita


0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

- 20.0 40.0 60.0 80.0

Econom

ic e

xpen

diture

s

per

capita

Poverty incidence (%)

FIGURE 5

SOCIAL EXPENDITURES AND SELECTED INDICATORS, BY REGION

GRDP Per Capita Unemployment Rate (%) Poverty Incidence (%)

0

2,000

4,000

6,000

8,000

10,000

12,000

0 100,000200,000300,000400,000500,000600,000Socia

l E

xpenditure

per

capita

(PH

P)


0

2,000

4,000

6,000

8,000

10,000

12,000

- 5.0 10.0 15.0 20.0Socia

l eE

penditure

per

captita

(P

HP

)


0

2,000

4,000

6,000

8,000

10,000

12,000

- 20.0 40.0 60.0 80.0Socia

l exp

enditu

res p

er

capita

Poverty incidence


Economic Expenditures. Of the three socio-economic indicators, the one with the strongest

correlation with economic BPC is GRDP per capita. The correlation coefficient of 0.92 indicates

a very strong positive relationship. This suggests that one closely moves along with the other, and

implies that relatively better-off regions (i.e., those with higher income per capita) tend to benefit

more from higher government spending for economic services.

NCR is the clear outlier for the economic BPC given a regional figure of P59,937 which is several

times higher than the P906 median value. CAR has the second highest economic BPC and comes

in with a distant P2,025 . BARMM has no allocation under the agencies included since funding for

these economic services will come from its regional grant, and administered by its regional

government.

Economic BPC and the regional unemployment rate only have a moderate positive relationship,

given a correlation coefficient of 0.61. This suggests that regions with relatively higher

unemployment rates tend to get somewhat higher budgets for economic services. The moderate

positive relationship is a favorable observation, given the ability of economic services to generate

jobs.

On the other hand, economic BPC appears to have a negative and weak relationship with the

regional poverty incidence. The two have a correlation coefficient of -0.36. The negative

relationship alone raises questions on the regional distribution of the budget for economic services

since it does not seem to respond to the poverty conditions across regions. The weak relationship

also suggests that while the trend is negative, economic BPC hardly moves with poverty incidence.

Social Expenditures. Results for the social BPC are somewhat surprising, given its weak to

almost absent relationship with the three socio-economic indicators. While social BPC has a

negative relationship with the indicators, as shown by the downward-sloping trendlines, the very

low coefficients of -0.15 (GRDP per capita), -0.04 (unemployment rate), and -0.29 (poverty

incidence) tend to negate any observation on the direction of the relationship. The coefficients

imply that expenditures for social services hardly move with any of the three indicators.

These observations, particularly on regional unemployment rates and poverty incidence, raises

questions on the responsiveness of social service expenditures amid the increased need for social

protection and investments in human development, following the adverse effects of the pandemic.

The results also call for further study of the nature of programs, activities, and projects (PAPs) of

concerned agencies and the manner by which funds are allocated by region.

One interesting note, however, is that the social BPC is somewhat better distributed across regions

(with the exception of BARMM due to special regional budgeting arrangements which are not

reflected in many NG agency regional budgets). The highest figure of P10,494 for CAR is about

32% higher than the median value of P7,942, while the lowest figure of P4,973 for Region IV-A

is roughly 37% lower than the median.


Overall, the assessment of the equity dimension of the budget yields mixed results. On one hand,

smaller regions stand to benefit through higher per capita allocations, as the 2021 BPC and 2019-

2021 average BPC have shown. The moderately positive correlation between regional BPC and

unemployment rate is likewise a positive observation, given that higher government spending is

needed in regions with higher unemployment rates.

On the other hand, NCR remains the dominant recipient of NG funds, as demonstrated by

significantly higher regional budget shares relative to its population and GDP shares. This disparity

is reinforced by the strong correlation between regional BPC and GRDP per capita, which means

relatively better-off regions receive higher government budget on a per capita basis. Moreover,

while the moderate positive relationship between the economic BPC and unemployment rate is a

favorable observation, the weak relationship or absence of any relationship between the social

BPC and two important indicators (i.e., unemployment rate, poverty incidence) raises concerns.

These observations question the ability of the budget to promote equitable development and

require further examination.

SOME CHALLENGES

❑ The government has a key role in promoting equitable development through its redistributive

function. Given the negative effects of the COVID-19 pandemic, there is a real threat that

intra-country disparities will worsen. This calls for a closer look at the equity dimension of the

budget and its implications on poverty reduction, jobs generation, and economic rehabilitation

and recovery. Certain regions will be at a more disadvantaged position relative to others, and

government has a key role in ensuring adequate funds and programs to effectively respond to

the challenge.

❑ Under a cash-based budget, annual appropriations are supposed to be provided only to shovel-

ready projects. This essentially means that projects have already been identified as to its type,

scope and location. Given this, allocations should be attributed to the regions where the

projects will be implemented—and that allocations under Nationwide or Central Offices

should be less, only to cover those that may be inter-regional in nature or those involving

centralized procurements (e.g., vaccines) due to economies of scale. However, it would seem

that the 2021 budget has centralized resources (especially for infrastructure) with just over one-

third (37.6%) going to the three island groups.

❑ There should be a clear differentiation of allocations that support Central Office operations

from that which are directly attributed to the activities/operations of NCR as a region. There

are still six (6) agencies whose entire budgets accrue to NCR because of operations/offices

located within the region. In particular, the DPWH budget should be able to clearly define

expenditure items falling under Nationwide, Central Office or the NCR. A clear distinction

for agencies to classify expenditure items under these three categories is imperative to ensure


that NCR shares are not bloated and that purely central office functions are also differentiated

from expenditure items that subsequently will be downloaded to the regions.

❑ The amount of P1.1 trillion for infrastructure includes many items that are not capital outlay

by expense category. Hence, the benefits as to the employment it can generate may even be

overestimated. Also included are the lump sum amounts for the LGUs in the form of the IRA

and financial assistance to LGUs/BARMM. The menu of projects for which some of this

assistance may be used includes soft projects (e.g., burial, food and medical assistance), and

capital outlay for equipment (e.g., ambulances and dump trucks) that do not directly contribute

to job generation and to stimulating the economy.

❑ Actual spending for 2020 should be able to clearly reflect how budgetary adjustments due to

the COVID-19 emergency also changed the regional allocation of the 2020 budget. Also, it is

important for NG to ensure the availability of socio-economic statistics at the regional level as

these allow for better analysis of the responsiveness of the budget to regional needs. Unless

statistics are able to make that reliable differentiation of the socio-economic conditions of the

regions and its component units, the distribution of the national budget (even as it increases

in size) would not be able to strategically pursue region-specific development objectives.

❑ Prospectively, the geographic distribution of the national budget by 2022 is likely to be

significantly different with the increase in IRA shares of LGUs due to the implementation of

the SC ruling on the Mandanas-Garcia petition. With a hefty increase in the allocations going

to sub-national governments, NG is expected to devolve some of its functions and will focus

more on its "steering" role through policy development, regulation, and technical assistance to

the LGUs.

REFERENCES

Mindrila, D. and Balentyne, P. Scatterplots and Correlation. University of West Georgia [online]. Available at: https://www.westga.edu/academics/research/vrc/assets/docs/scatterplots_and_correlation_notes.pdf

National Economic and Development Authority (NEDA). (2017). Philippine Development Plan 2017-2022.

Philippines Statistics Authority. (2020, 09 03). Employment Situation in July 2020. Available at:

https://psa.gov.ph/content/employment-situation-july-2020

Reinhart, C. (2020, 03 23). This Time Truly is Different. Retrieved from Project Syndicate: https://www.project-

syndicate.org/commentary/covid19-crisis-has-no-economic-precedent-by-carmen-reinhart-2020-03

Social Weather Station (SWS). (2020, 07 21). SWS July 3-6, 2020 National Mobile Phone Survey – Report No. 5:

Hunger among families climbs to 20.9%. Available at:

https://www.sws.org.ph/swsmain/artcldisppage/?artcsyscode=ART-20200721164746

Republic of the Philippines (2020). President's Budget Message for FY 2021: Reset, Rebound, and Recover: Investing for Resiliency and Sustainability.

Republic of the Philippines. Budget of Expenditures and Sources of Financing (various fiscal years).

https://www.westga.edu/academics/research/vrc/assets/docs/scatterplots_and_correlation_notes.pdf

ANNEXES

ANNEX 1

REGIONAL ALLOCATION OF THE TOTAL NATIONAL GOVERNMENT (NG) BUDGET

Regions


Actual GAA Proposed Actual GAA Proposed Levels, In Billion Pesos Growth Rates (%)

2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 17-18 18-19 19-20 20-21 17-18 18-19 19-20 20-21

Nationwide 775.4 513.8 535.7 841.4 982.7 23.4 14.5 14.8 20.5 21.8 (261.6) 21.9 305.6 141.3 (33.7) 4.3 57.1 16.8

Central Office

122.2 638.3 308.8 366.0 340.5 3.7 18.1 8.6 8.9 7.6 516.1 (329.4) 57.2 (25.5) 422.3 (51.6) 18.5 (7.0)

NCR 820.5 802.4 1,356.7 910.2 1487.9 24.7 22.7 37.6 22.2 33.0 (18.1) 554.3 (446.4) 577.7 (2.2) 69.1 (32.9) 63.5

Luzon, Net of NCR

738.3 759.0 679.7 926.2 790.2 22.3 21.5 18.8 22.6 17.5 20.6 (79.2) 246.5 (135.9) 2.8 (10.4) 36.3 (14.7)

Region I 93.5 85.5 86.7 110.2 96.6 2.8 2.4 2.4 2.7 2.1 (8.0) 1.2 23.4 (13.5) (8.6) 1.4 27.0 (12.3)

CAR 55.8 65.6 47.7 64.8 51.2 1.7 1.9 1.3 1.6 1.1 9.9 (17.9) 17.1 (13.5) 17.7 (27.3) 35.8 (20.9)

Region II 78.4 79.7 75.3 95.0 84.3 2.4 2.3 2.1 2.3 1.9 1.2 (4.4) 19.7 (10.7) 1.6 (5.5) 26.1 (11.3)

Region III 158.7 169.3 153.2 201.5 178.0 4.8 4.8 4.2 4.9 4.0 10.6 (16.1) 48.3 (23.5) 6.7 (9.5) 31.5 (11.6)

Region IV-A 163.2 173.3 160.8 222.2 193.5 4.9 4.9 4.5 5.4 4.3 10.1 (12.5) 61.3 (28.7) 6.2 (7.2) 38.1 (12.9)

Region IV-B 75.6 69.7 58.3 86.1 70.3 2.3 2.0 1.6 2.1 1.6 (5.9) (11.4) 27.9 (15.8) (7.8) (16.4) 47.8 (18.4)

Region V 113.2 115.9 97.7 146.4 116.2 3.4 3.3 2.7 3.6 2.6 2.7 (18.2) 48.8 (30.2) 2.4 (15.7) 50.0 (20.6)

Visayas 352.1 356.1 312.9 420.3 374.1 10.6 10.1 8.7 10.3 8.3 4.0 (43.2) 107.4 (46.2) 1.1 (12.1) 34.3 (11.0)

Region VI 127.3 128.6 117.7 154.4 138.8 3.8 3.6 3.3 3.8 3.1 1.3 (11.0) 36.8 (15.7) 1.0 (8.5) 31.3 (10.2)

Region VII 115.2 121.9 107.8 141.8 130.7 3.5 3.5 3.0 3.5 2.9 6.7 (14.1) 34.0 (11.1) 5.8 (11.6) 31.6 (7.8)

Region VIII 109.6 105.6 87.5 124.0 104.6 3.3 3.0 2.4 3.0 2.3 (4.0) (18.1) 36.5 (19.4) (3.7) (17.1) 41.8 (15.6)

Mindanao 506.8 462.3 416.7 635.9 530.6 15.3 13.1 11.5 15.5 11.8 (44.5) (45.6) 219.3 (105.3) (8.8) (9.9) 52.6 (16.6)

Region IX 74.3 74.3 65.9 93.7 79.5 2.2 2.1 1.8 2.3 1.8 (0.1) (8.4) 27.9 (14.2) (0.1) (11.3) 42.4 (15.1)

Region X 110.3 90.7 83.6 122.8 94.5 3.3 2.6 2.3 3.0 2.1 (19.6) (7.1) 39.2 (28.4) (17.8) (7.8) 46.9 (23.1)

Region XI 106.5 90.8 76.5 133.5 87.9 3.2 2.6 2.1 3.3 2.0 (15.7) (14.4) 57.0 (45.6) (14.7) (15.8) 74.6 (34.2)

Region XII 80.9 77.4 68.6 91.3 76.0 2.4 2.2 1.9 2.2 1.7 (3.5) (8.8) 22.8 (15.3) (4.3) (11.4) 33.2 (16.8)

CARAGA 70.2 63.3 55.8 82.3 64.3 2.1 1.8 1.5 2.0 1.4 (7.0) (7.5) 26.5 (18.0) (9.9) (11.8) 47.5 (21.8)

ARMM 64.5 65.8 66.4 112.2 128.4 1.9 1.9 1.8 2.7 2.8 1.3 0.6 45.9 16.1 2.0 0.9 69.1 14.3

Total 3,315.3 3,531.8 3,610.5 4,100.0 4,506.0 100.0 100.0 100.0 100.0 100.0 216.4 78.7 489.5 406.0 6.5 2.2 13.6 9.9


ANNEX 2-A: DEPARTMENT OF AGRICULTURE

Regions



2020 2021 2020 2021 2020-2021 2020-2021

Nationwide 2.5 0.4 3.9 0.5 (2.2) (85.7)


NCR 34.2 27.2 52.9 41.0 (7.0) (20.5)

Luzon, net of NCR 15.2 23.1 23.5 34.8 7.9 51.9

Region I 1.9 3.0 3.0 4.5 1.0 54.5

CAR 1.4 1.6 2.2 2.4 0.2 13.9

Region II 2.3 5.0 3.6 7.5 2.6 113.6

Region III 3.5 5.8 5.5 8.7 2.3 63.9

Region IV-A 2.4 2.4 3.8 3.7 (0.0) (0.1)

Region IV-B 1.5 2.3 2.3 3.4 0.8 51.9

Region V 2.1 3.1 3.2 4.6 1.0 47.0

Visayas 5.3 7.1 8.2 10.7 1.8 33.9

Region VI 1.9 2.8 3.0 4.2 0.9 45.7

Region VII 1.6 2.2 2.5 3.3 0.5 33.1

Region VIII 1.7 2.1 2.6 3.1 0.4 21.4

Mindanao 7.4 8.7 11.5 13.1 1.2 16.6

Region IX 1.4 1.6 2.1 2.4 0.2 16.7

Region X 1.4 1.9 2.1 2.9 0.5 38.9

Region XI 1.7 1.6 2.6 2.4 (0.1) (5.7)

Region XII 1.7 2.2 2.6 3.3 0.5 32.3

CARAGA 1.4 1.4 2.1 2.1 0.0 2.5

ARMM - - - - - -

Total 64.7 66.4 100.0 100.0 1.7 2.6

ANNEX 2-B: DEPARTMENT OF EDUCATION

Regions



2020 2021 2020 2021 2020-2021 2020-2021

Nationwide 0.4 31.7 0.1 5.2 31.2 7,273.4

Central Office 0.7 2.6 0.1 0.4 2.0 294.9

NCR 133.0 50.2 24.0 8.3 (82.8) (62.2)

Luzon, net of NCR 210.7 263.5 38.0 43.4 52.8 25.1

Region I 27.4 33.3 4.9 5.5 5.8 21.2

CAR 10.4 14.0 1.9 2.3 3.6 35.2

Region II 19.5 24.0 3.5 4.0 4.5 23.2

Region III 47.0 58.1 8.5 9.6 11.2 23.8

Region IV-A 53.3 68.2 9.6 11.2 14.9 28.0

Region IV-B 18.2 22.4 3.3 3.7 4.3 23.5

Region V 35.0 43.5 6.3 7.2 8.5 24.3

Visayas 105.2 129.8 19.0 21.4 24.5 23.3

Region VI 39.3 48.6 7.1 8.0 9.3 23.6

Region VII 36.8 45.7 6.6 7.5 8.9 24.0

Region VIII 29.1 35.5 5.3 5.9 6.4 21.9

Mindanao 104.2 128.6 18.8 21.2 24.5 23.5

Region IX 20.6 25.3 3.7 4.2 4.8 23.2

Region X 22.5 28.1 4.1 4.6 5.6 24.9

Region XI 22.6 28.1 4.1 4.6 5.5 24.1

Region XII 22.2 25.9 4.0 4.3 3.7 16.8

CARAGA 16.3 20.5 2.9 3.4 4.2 25.7

ARMM - 0.7 - 0.1 0.7 -

Total 554.2 606.5 100.0 100.0 52.3 9.4

ANNEX 2-C: DEPARTMENT OF HEALTH

Regions



2020 2021 2020 2021 2020-2021 2020-2021

Nationwide 30.7 40.4 29.4 30.7 9.7 31.7

Central Office 24.6 35.4 23.5 26.9 10.8 44.1

NCR 14.3 16.3 13.7 12.4 2.0 13.9

Luzon, net of NCR 15.3 17.4 14.6 13.2 2.1 13.9

Region I 2.7 3.0 2.6 2.3 0.3 10.9

CAR 1.9 2.2 1.8 1.7 0.3 18.0

Region II 2.5 2.8 2.4 2.1 0.3 12.5

Region III 3.6 4.1 3.4 3.1 0.5 14.2

Region IV-A 1.8 1.9 1.7 1.5 0.1 8.1

Region IV-B 0.7 0.8 0.7 0.6 0.1 12.1

Region V 2.2 2.6 2.1 2.0 0.4 20.1

Visayas 8.8 9.8 8.4 7.4 1.0 11.8

Region VI 2.3 2.6 2.2 2.0 0.4 16.4

Region VII 5.2 5.6 5.0 4.2 0.4 6.7

Region VIII 1.3 1.6 1.2 1.2 0.3 24.3

Mindanao 10.9 12.4 10.4 9.4 1.5 14.0

Region IX 2.4 2.6 2.3 2.0 0.2 8.2

Region X 2.6 3.0 2.4 2.3 0.5 17.6

Region XI 3.9 4.5 3.7 3.4 0.6 16.8

Region XII 1.1 1.3 1.1 1.0 0.2 13.6

CARAGA 1.0 1.0 0.9 0.8 0.1 8.1

ARMM - - - - - -

Total 104.5 131.7 100.0 100.0 27.2 26.1

ANNEX 2-D: DEPARTMENT OF PUBLIC WORKS AND HIGHWAYS

Regions



2020 2021 2020 2021 2020-2021 2020-2021

Nationwide 51.3 - 8.8 - (51.3) (100.0)


NCR 62.0 659.1 10.7 98.8 597.2 963.4

Luzon, net of NCR 220.4 4.0 37.9 0.6 (216.4) (98.2)

Region I 23.0 0.5 3.9 0.1 (22.5) (97.9)

CAR 18.7 0.5 3.2 0.1 (18.1) (97.1)

Region II 20.4 0.5 3.5 0.1 (19.9) (97.4)

Region III 42.7 0.7 7.3 0.1 (42.0) (98.3)

Region IV-A 49.6 0.7 8.5 0.1 (48.9) (98.7)

Region IV-B 23.1 0.4 4.0 0.1 (22.7) (98.1)

Region V 42.9 0.7 7.4 0.1 (42.3) (98.4)

Visayas 87.8 1.8 15.1 0.3 (86.0) (97.9)

Region VI 31.9 0.7 5.5 0.1 (31.3) (97.9)

Region VII 26.4 0.6 4.5 0.1 (25.8) (97.7)

Region VIII 29.5 0.6 5.1 0.1 (29.0) (98.0)

Mindanao 160.2 2.3 27.5 0.3 (157.9) (98.6)

Region IX 22.9 0.4 3.9 0.1 (22.5) (98.1)

Region X 39.1 0.5 6.7 0.1 (38.5) (98.6)

Region XI 54.4 0.5 9.3 0.1 (53.9) (99.2)

Region XII 20.5 0.4 3.5 0.1 (20.1) (98.0)

CARAGA 23.3 0.4 4.0 0.1 (22.9) (98.1)

ARMM - - - - - -

Total 581.7 667.3 100.0 100.0 85.6 14.7

ANNEX 2-E: DEPARTMENT OF SOCIAL WELFARE AND DEVELOPMENT

Regions



2020 2021 2020 2021 2020-2021 2020-2021

Nationwide 2.9 15.6 1.7 9.1 12.7 444.2

Central Office 32.1 20.9 19.6 12.2 (11.3) (35.1)

NCR 8.5 8.1 5.2 4.7 (0.4) (4.6)

Luzon, net of NCR 49.7 52.8 30.3 30.8 3.1 6.2

Region I 6.4 6.9 3.9 4.0 0.5 7.2

CAR 2.6 2.7 1.6 1.6 0.1 5.2

Region II 4.3 4.6 2.6 2.7 0.4 8.3

Region III 8.4 9.0 5.1 5.2 0.6 7.2

Region IV-A 10.4 10.9 6.3 6.4 0.5 5.2

Region IV-B 6.3 6.7 3.8 3.9 0.3 5.5

Region V 11.4 12.0 6.9 7.0 0.6 5.7

Visayas 29.4 30.8 17.9 18.0 1.3 4.5

Region VI 10.9 11.4 6.7 6.7 0.5 4.4

Region VII 9.5 9.9 5.8 5.8 0.4 4.2

Region VIII 9.0 9.4 5.5 5.5 0.4 4.9

Mindanao 41.4 43.1 25.2 25.2 1.7 4.2

Region IX 9.7 10.1 5.9 5.9 0.4 4.0

Region X 8.5 9.0 5.2 5.2 0.4 4.9

Region XI 8.9 9.3 5.4 5.4 0.4 4.2

Region XII 8.1 8.5 5.0 5.0 0.3 4.2

CARAGA 6.1 6.3 3.7 3.7 0.2 3.3

ARMM - - - - - -

Total 164.0 171.2 100.0 100.0 7.2 4.4


ANNEX 3 SUB-CATEGORY OF INFRASTRUCTURE OUTLAYS BY REGION, 2021

Particulars Water Supply

Systems

Sewer Systems

Seaport Systems

Road Networks

Right-of-Way

Railway Systems

Power Supply

Systems

Other Infrastructure

Assets

Flood Control

Communication Networks

Airport Systems

TOTAL

Nationwide - - - - - - - - - - - -

Central Office 4,336.3 615.0 11.2 362,691.1 27,429.9 96,213.0 - 22,488.8 144,355.3 14.6 1.0 658,156.0

NCR 0.1 62.5 - 1,940.1 - - 310.8 575.8 2,755.2 57.0 - 5,701.5

CAR 116.4 - - 1,561.7 - - - 62.5 96.7 15.1 - 1,852.5

Region 1 208.6 - - 1,910.1 - - - - 1,388.1 - - 3,506.8

Region II 124.3 - - 2,326.3 - - - 5.1 602.2 - - 3,057.9

Region III 71.4 - - 3,351.9 - - - 10.2 2,267.1 - - 5,700.6

Region IV-A 81.4 - - 4,629.1 - - - - 1,208.6 7.3 - 5,926.4

Region IV-B 78.3 - - 3,001.0 - - - - 309.9 - - 3,389.2

Region V 106.2 - - 4,427.4 - - - - 933.5 7.7 - 5,474.8

Region VI 193.7 - - 3,288.6 - - 15.5 - 413.1 1.8 - 3,912.7

Region VII 114.3 - - 2,932.4 - - 20.0 - 365.7 2.0 - 3,434.4

Region VIII 175.3 - - 2,614.3 - - 62.0 18.9 340.5 0.3 - 3,211.3

Region IX 44.9 - - 1,410.7 - - - 5.1 61.8 - - 1,522.5

Region X 152.4 - - 2,155.6 - - - 8.2 400.8 - - 2,717.0

Region XI 9.4 - - 2,896.7 - - 68.0 13.2 923.4 - - 3,910.7

Region XII 61.6 - - 1,605.1 - - - 0.8 178.2 - - 1,845.7

CARAGA 43.4 - - 1,321.9 - - - - 255.0 - - 1,620.3

ARMM - - - 7.5 - - - 5.0 - - - 12.5

Total 5,917.9 677.5 11.2 404,071.6 27,429.9 96,213.0 476.3 23,193.7 156,855.0 105.8 1.0 714,952.9

Source: BESF 2021

ANNEX 4 REGIONAL INFRASTRUCTURE OUTLAYS BY TYPE, 2021

(IN MILLION PESOS)


NCR CAR Region

1 Region

II Region

III Region

IV-A Region

IV-B Region

V

Road Networks - 362,691.1 4,668.3 1,561.7 1,910.1 2,326.3 3,576.9 4,629.1 3,001.0 4,427.4

Flood Control - 144,355.3 2,755.2 96.7 1,388.1 602.2 2,267.1 1,208.6 309.9 933.5

Internal Revenue Allotment 139,098.6 - - - - - - - - -

Railway Systems - 96,213.0 1,339.3 - - - - - - -

Buildings - 38,612.5 8,647.5 491.8 785.1 692.1 1,811.8 2,608.8 372.4 731.9

Financial Assistance to Local Gov’t Units 23,911.0 - - - - - - - - -

Other Machinery and Equipment - - 33,000.0 - - - 64.9 - - -

Other Infrastructure Assets - 22,488.8 8,518.8 62.5 - 234.0 496.9 - - -

School Buildings - 23,601.5 119.1 394.2 287.5 206.0 362.5 337.0 236.6 343.6

Right-of-Way - 27,429.9 - - - - - - - -

Irrigation Systems - 701.0 - 621.2 1,890.0 2,892.2 2,998.8 683.7 599.1 648.5

Infrastructure Outlay 13,101.2 - - - - - - - - -

Rents - Building and Structures - 7,120.2 9.0 - - - 0.2 - - -

Water Supply Systems - 4,336.3 526.7 116.4 208.6 124.3 71.4 81.4 78.3 106.2

Furniture and Fixtures - 4,866.5 - - - - 22.3 - - -

Reforestation Projects 122.9 2.4 206.8 158.4 252.7 219.9 157.0 216.2 344.4

Power Supply Systems - - 3,324.5 - - - 100.0 - - -

Housing and Community Facilities - - 3,369.2 - - - 51.3 - - -

Other Leased Assets - 3,141.4 - - - - - - - -

ICT Software 2,825.3 18.8 14.2 - - - 3.0 - - -

Other Structures - 1,309.7 417.4 45.8 28.7 61.8 128.8 40.7 77.3 57.1

Hospitals and Health Centers - 752.4 - - - - 9.2 - - 30.0

Information & Communications Tech. Equip’t 1,538.7 63.8 70.5 - - - 98.1 - - -

Watercrafts - 177.8 822.3 - - - - - - -

Subsidy Support to Operations of GOCCs - - - 90.0 50.0 135.0 160.0 29.2 30.0 40.0

Hostels and Dormitories - - 73.0 19.4 25.0 43.5 15.0 37.0

Sewer Systems - 615.0 62.5 - - - 48.7 - - -

Other Supplies and Materials Expenses - 258.3 234.8 - - - 172.0 - - -


NCR CAR Region

1 Region

II Region

III Region

IV-A Region

IV-B Region

V

Airport Systems - 1.0 464.0 - - - - - - -

Other Land Improvements - 27.2 10.8 2.0 15.9 10.0 8.8 28.3 32.9 10.5

Other Subscription Expenses 307.9 2.1 0.4 - - - 10.8 - - -

Subsidies – Others - 120.4 116.7 - - - 0.1 - - -

Internet Subscription Expenses - 71.4 90.5 - - - 9.3 - - -

Technical and Scientific Equipment - - - - 138.0 - - -

Communication Networks - 14.6 57.5 15.1 - - - 7.3 - 7.7

Aquaculture Structures - - - 1.0 - - - - - 20.0

Computer Software - - - - - - 20.0 - - -

Seaport Systems - 11.2 - - - - - - - -

Historical Buildings - - 7.8 - - - - - - -

Communication Equipment - - 2.7 - - - - - - -


- 1.0 - - - - 0.9 - - -

TOTAL 180,782.6 739,124.9 68,652.1 3,778.4 6,722.4 7,556.0 12,876.5 9,854.5 4,968.7 7,737.8

Particulars Region

VI Region

VII Region

VIII Region

IX Region

X Region

XI Region

XII CARAGA ARMM TOTAL

Road Networks 3,288.6 2,932.4 2,614.3 1,559.6 2,155.6 2,896.7 1,605.1 1,321.9 7.5 407,173.8

Flood Control 413.1 365.7 340.5 61.8 400.8 923.4 178.2 255.0 - 156,855.0

Internal Revenue Allotment - - - - - - - - - 139,098.6

Railway Systems - - - - - - - - - 97,552.3

Buildings 766.6 926.1 708.1 517.9 670.2 735.7 387.7 414.7 78.8 59,959.8

Financial Assistance to Local Gov’t Units - - - - - - - - 19,334.0 43,245.0

Other Machinery and Equipment - - - - - - - - - 33,064.9

Other Infrastructure Assets - - 18.9 91.1 8.2 13.2 0.8 - 5.0 31,938.2

School Buildings 690.7 633.0 769.5 155.4 434.4 799.8 191.3 292.9 92.4 29,947.4

Right-of-Way - - - - - - - - - 27,429.9

Irrigation Systems 3,259.4 804.2 509.9 682.5 735.8 656.0 921.3 623.0 - 19,226.7

Infrastructure Outlay - - - - - - - - - 13,101.2

Rents - Building and Structures - - - - - - - - 0.3 7,129.6

Particulars Region

VI Region

VII Region

VIII Region

IX Region

X Region

XI Region

XII CARAGA ARMM TOTAL

Water Supply Systems 193.7 114.3 175.3 49.9 152.4 9.4 61.6 43.4 - 6,449.5

Furniture and Fixtures - - - - - - - - - 4,888.8

Reforestation Projects 274.1 201.8 469.1 294.1 227.7 228.1 238.2 549.2 - 4,162.9

Power Supply Systems 15.5 20.0 62.0 13.5 - 68.0 - - - 3,603.5

Housing and Community Facilities - - - - - - - - - 3,420.5

Other Leased Assets - - - - - - - - - 3,141.4

ICT Software - - - - - - - - - 2,861.3

Other Structures 45.3 126.9 99.0 32.5 57.2 84.9 101.8 106.2 13.5 2,834.4

Hospitals and Health Centers - 1,515.1 - - 30.0 - - - - 2,336.8

Information & Communications Tech. Equip’t - - - - - - - - - 1,771.1

Watercrafts - - - - - - - - - 1,000.1

Subsidy Support to Operations of GOCCs 50.0 22.0 10.0 80.0 55.0 87.0 101.8 60.0 - 1,000.0

Hostels and Dormitories 122.5 88.3 147.0 25.0 10.0 - 1.0 200.0 11.7 818.5

Sewer Systems - - - - - - - - - 726.2

Other Supplies and Materials Expenses - - - - - - 8.5 - - 673.5

Airport Systems - - - - - - - - - 465.0

Other Land Improvements 0.3 78.1 35.9 0.5 12.3 68.0 4.8 33.1 1.4 380.8

Other Subscription Expenses - - - - - - 0.3 - - 321.4

Subsidies – Others - - - - - - - - - 237.2

Internet Subscription Expenses - - - - - - - - - 171.2

Technical and Scientific Equipment - - - - - - 30.0 168.0

Communication Networks 1.8 2.0 0.3 - - - - - - 106.3

Aquaculture Structures - - - - - - - - - 21.0

Computer Software - - - - - - - - - 20.0

Seaport Systems - - - - - - - - - 11.2

Historical Buildings - - - - - - - - - 7.8

Communication Equipment - - - - - - - - - 2.7


- - - - - - - - - 1.9

TOTAL 9,121.7 7,829.8 5,959.8 3,563.8 4,949.6 6,570.3 3,832.3 3,899.3 19,544.7 1,107,325.1


ANNEX 5 UNEMPLOYMENT, POVERTY INCIDENCE, PER CAPITA GRDP AND BPC BY REGION

Region July 2020

Unemployment

Rates

2018 Poverty Incidence Among

Population

Per Capita

2018 GRDP 2021 Budget a/

NCR 15.8 2.2 485,725 103,890.8

CAR 9.6 12.0 171,417 28,114.6

Region I 11.1 9.9 105,732 18,188.5

Region II 9.4 16.3 84,644 22,816.3

Region III 10.9 7.0 136,274 14,227.4

Region IV-A 12.4 7.1 166,761 11,820.8

Region IV-B 5.7 15.1 88,647 21,892.0

Region V 9.1 27.0 62,324 18,768.9

Region VI 6.3 16.3 95,186 17,408.7

Region VII 11.7 17.7 149,334 16,226.6

Region VIII 8.1 30.7 76,756 21,776.0

Region IX 6.3 32.7 91,893 20,838.8

Region X 6.0 23.1 141,370 18,620.8

Region XI 8.0 19.1 159,255 16,357.5

Region XII 6.7 28.2 98,937 15,243.6

CARAGA 6.7 30.5 72,069 23,114.8

BARMM 3.8 61.8 32,061 30,057.8

Philippines 10.0 16.7 164,779 28,544.7

Note: Population used is from the Updated Projected Population Based on 2015 Population Census by Five- Year Age Group, Sex, Single-Calendar Year and by Province: 2015 - 2025 (PSA)

a/ Net of Nationwide, Central Office, and 6 NGAs under NCR Sources of basic data: BESF 2021, and PSA

2020 b · (luzon, visayas, mindanao, and ncr) and their corresponding component regions, including...

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