the philippine budgetary process

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THE PHILIPPINE BUDGETARY PROCESS Reporter: Mrs. JOMELYN M. ABUAN PHILIPPINE NATIONAL BUDGET For the subject: FISCAL ADMINISTRATION Mrs. Renifer Francisco, LLB,MPA

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THE PHILIPPINE BUDGETARY PROCESS

THE PHILIPPINE BUDGETARY PROCESS

Reporter: Mrs. JOMELYN M. ABUAN

PHILIPPINE NATIONAL BUDGET

For the subject: FISCAL ADMINISTRATIONMrs. Renifer Francisco, LLB,MPA

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It is a financial plan to pursue priority programs & projects of the government in line with its economic growth & human development thrusts.

It is an instrument for good governance, as government agencies are accountable for the delivery of measurable results through their respective budgets.PHILIPPINE NATIONAL BUDGET------ CONCEPT

The financial blueprint of the countrys development plan.PHILIPPINE NATIONAL BUDGET------ CONCEPT

To ensure that public resources are managed more efficiently and with the greatest degree of discipline.

Under the Aquino administration, it seeks to bring the budget closer to the people, by channeling resources on programs that accelerate economic growth, but more importantly, to re-directs funds to programs that would be responsive to the needs of the people especially those in regions beset by poverty.PHILIPPINE NATIONAL BUDGET------ purpose

THE NATIONAL BUDGET IN A NUTSHELL

The 2011 Budget introduced reforms such as ZERO-BASED BUDGETING to ensure that public funds were spent only for public purposes.

These reforms were essential for restoring a cynical publics trust in government.

THE 2011 BUDGET

The 2012 Budget addressed hiccups in the budget implementation. The mandate for the Budget was clear to ensure the delivery of the results outlined in the Aquino Social Contract.THE 2012 BUDGET

The 2013 budget empowered the Filipino people through tighter prioritization of their needs, faster delivery of results, and a more open budget process.

It emphasized that the government exists to serve the Filipino people.THE 2013 BUDGET P2.006T

All Filipinos must enjoy the prosperity that comes with sustainable economic development. This is the thrust of the 2014 Budget.THE 2014 BUDGET

The 2014 Budget builds on the successes made possible by an honest and trustworthy government.

It lays the foundation for inclusive development and sustains the momentum of reform.

P2.268 TRILLIONTHE 2014 BUDGET

Inclusive development is the principle of the Aquino Administration which part of the Aquino Social Contract, it emobodies- good governance thru PIB, collaboration as new standard in govt, empowering citizens thru the budget, enabling the private sector as engine of economic growth, prioritization. 10

Ang daan matuwid ay ang daan tungo sa Kasaganahan.

Section 22, Article VII of the 1987 Constitution sets the tone for the budgetary process.

The procedure in the preparation of the national budget is regulated by law. On or before October 20 of each year, each department secretary submits to Department of Budget the estimated income and expenditures of the bureaus and offices under his department for the next fiscal year.

Upon receipt of all budget estimates of income and expenditures, the Department of Budget and Management prepares the national budget.

Prior to this, however, the Budget secretary can investigate, revise, examine, assemble, coordinate, and reduce or increase the budget estimates of the different departments, bureaus and offices of the government.

PHILIPPINE BUDGETARY PROCESSS LEGAL BASIS

After preparing the budget, the Budget secretary submits it to the President, who in turn submits it to Congress within 30 days before the opening of the regular session. The 1987 Constitution specifically provides that the President "shall submit to the Congress within thirty days from the opening of every regular session, as the basis of the general appropriations bill, budget of expenditures and sources of financing, including receipts from existing and proposed revenue measures" ( Sec. 22, Art. VI). Congress uses the budget submitted by the president as the basis for the annual appropriation. According to the 1987 Philippine Constitution, Congress "may not increase the appropriation recommended by the President for the operation of the Government as specified in the budget" (Sec. 25(1), Art. VI).

PHILIPPINE BUDGETARY PROCESSS LEGAL BASIS

HOW IS THE GOVERNMENT BUDGET CRAFTED AND APPROVED?The Budget Cycle

BUDGET CYCLEThere are four phases in managing the National Budget:

Budget PreparationBudget LegislationBudget ExecutionBudget Accountability

During the preparation phase, the Executive prepares the proposed National Budget. This is followed by the legislation phase where the Congress authorizes the General Appropriations Act. In the execution phase, agencies utilize their approved budgets and during the accountability phase, the executive monitors and evaluates the use of the budget.

THE NATIONAL BUDGET CYCLE

1. BUDGET PREPARATION

BUDGET PREPARATION- BUDGET CALLAt the beginning of the budget preparation year, the Department of Budget and Management (DBM) issues the National Budget Call to all agencies (including state universities and colleges) and a separate Corporate Budget Call to all GOCCs and GFIs.

The Budget Call contains budget parameters (including macroeconomic and fiscal targets and agency budget ceilings) as set beforehand by the Development Budget Coordination Committee (DBCC); and policy guidelines and procedures in the preparation and submission of agency budget proposals.

BUDGET PREPARATION- STAKEHOLDER CONSULTATIONSA new feature in budget preparations which seeks to increase citizen participation in the budget process, departments and agencies are tasked to partner with civil society organizations (CSOs) and other citizen-stakeholders as they prepare their agency budget proposals.

This new process, which was piloted in the preparation of the 2012 National Budget, is now being expanded towards institutionalization.

BUDGET PREPARATION-

ORIGINAL SET (Piloted in 2012)NEW SET (Starting 2013)Department of HealthDepartment of EducationDepartment of Social Welfare and DevelopmentDepartment of Public Works and HighwaysDepartment of AgricultureDepartment of Agrarian ReformNational Food AuthorityNational Housing AuthorityNational Home Mortgage and Finance Corp.Department of TourismDepartment of Transportation and CommunicationDepartment of Interior and Local GovernmentDepartment of JusticeDepartment of Labor and EmploymentDepartment of Environment and Natural ResourcesLight Rail Transit AuthorityNational Electrification AdministrationNational Irrigation Administration

Departments & GOCCs mandated to conduct consultationsNote: All other departments and agencies are highly encouraged to undertake the process.

For the first time in history, the National Budget for 2013 will be prepared using a breakthrough bottom-up approach. As opposed to the conventional way of allocating resources from top to bottom, grassroots communities will be engaged in designing the National Budget.

The Aquino government, through the Cabinet Cluster on Human Development and Poverty Reduction, has identified 300 to 400 of the poorest municipalities and will engage these in crafting community-level poverty reduction and empowerment plans. This initial salvo of bottom-up budgeting will focus on rural development programs and the conditional cash transfer program, and will thus involve DA, DAR, DENR, DSWD, DepEd and DoH. These agencies will then include the community plans in their proposed budgets.

BUDGET PREPARATION- AGENCY BUDGET PROPOSALS

BUDGET PREPARATION- TECHNICAL BUDGET HEARINGSThese are conducted after departments and agencies submit their Agency Budget Proposals to the DBM. Here, agencies defend their proposed budgets before a technical panel of DBM, based on performance indicators on output targets and absorptive capacity. DBM bureaus then review the agency proposals and prepare recommendations.

BUDGET PREPARATION- EXECUTIVE REVIEWThe recommendations are presented before an Executive Review Board which is composed of the DBM Secretary and senior officials.

Deliberations here entail a careful prioritization of programs and corresponding support, vis--vis the priority agenda of the national government.

Implementation issues are also discussed and resolved.

BUDGET PREPARATION- CONSOLIDATION, VALIDATION, & CONFIRMATIONDBM then consolidates the recommended agency budgets and recommendations into a National Expenditure Program and a Budget of Expenditures and Sources of Financing (BESF).

As part of the consolidating process, the deliberations by the DBCC will determine the agency and sectoral allocation of the approved total expenditure ceiling, in line with the macroeconomic and fiscal program. Heads of major departments are invited to this meeting.

BUDGET PREPARATION- PRESENTATION TO THE PRESIDENTThe proposed budget is presented by DBM, together with the DBCC, to the President and Cabinet for further refinements or reprioritization. After the President and Cabinet approve the proposed National Expenditure Plan, the DBM prepares and finalizes the budget documents to be submitted to Congress.

BUDGET PREPARATION- THE PRESIDENTS BUDGETThe budget preparation phase ends with the submission of the proposed national budget the Presidents Budget to Congress.

The Presidents Budget consists of the following documents, which help legislators analyze the contents of the proposed budget:

BUDGET PREPARATION- THE PRESIDENTS BUDGETPresidents Budget Message (PBM)This is where the President explains the policy framework and priorities in the budget.

Budget of Expenditures and Sources of Financing (BESF)Mandated by the Constitution, this contains the macroeconomic assumptions, public sector context (including overviews of LGU and GOCC financial positions), breakdown of the expenditures and funding sources for the fiscal year and the two previous years.

National Expenditure Program (NEP)This contains the details of spending for each department and agency by program, activity or project, and is submitted in the form of a proposed General Appropriations Act.

Details of Selected Programs and ProjectsThis contains a more detailed disaggregation of key programs, projects and activities in the NEP, especially those in line with the national governments development plan.

Staffing SummaryThis contains a summary of the staffing complement of each department and agency, including number of positions and amounts allocated for the same.

Presidents Budget Message (PBM) excerptOur esteemed ladies and gentlemen of the 16th Congress, as you authorize this proposed Budget for fiscal year 2014, I invite you to commit with us in our efforts to realize this legacy. I encourage you to look at this Budget with the will to enact the same with speed and resolve so that our people can be on the road to prosperity. Let this Budget for Inclusive Development enable us to truly serve our people who gave us our mandate. They are the reason why we are all here.

Halinat sama-sama nating tahakin ang tuwid na landas tungo sa kasaganaan ng lahat.

It is in this light that I ask you, the men and women of Congress, to examine and eventually approve this proposed Budget for fiscal year 2014.

In the spirit of People Power,

BENIGNO S. AQUINO IIIPresident of the Philippines

2. BUDGET LEGISLATIONAlternatively called the Budget Authorization phase, this starts upon the House Speakers receipt of the Presidents Budget and ends with the Presidents enactment of the General Appropriations Act.

BUDGET LEGISLATION- HOUSE DELIBERATIONSThe House of Representatives, in plenary, assigns the Presidents Budget to the House Appropriations Committee. The Committee and its Sub-Committees then schedule and conduct hearings on the budgets of the departments and agencies and scrutinize their respective programs and projects. It then crafts the General Appropriations Bill (GAB).

In plenary session, the GAB is sponsored, presented and defended by the Appropriations Committee and Sub-Committee Chairmen. As in all other laws, the GAB is approved on Second and Third Reading before transmission to the Senate. (Note: In the First Reading, the Presidents Budget is assigned to the Appropriations Committee.)

(see the FY 2015 presentation) - desktopSAMPLE BUDGET PRESENTATION TO CONGRESS FOR DELIBERATION

BUDGET LEGISLATION- SENATE DELIBERATIONSAs in the House process, the Senate conducts its own committee hearings and plenary deliberations on the GAB. Budget deliberations in the Senate formally start after the House of Representatives transmits the GAB. For expediency, however, the Senate Finance Committee and Sub-Committees usually start hearings on the GAB even as House deliberations are ongoing.

The Committee submits its proposed amendments to the GAB to plenary only after it has been formally transmitted by the House.

BUDGET LEGISLATION- BICAMERAL DELIBERATIONSOnce both Houses of Congress have finished their deliberations, they will each constitute a panel to the Bicameral Conference Committee. This committee will then discuss and harmonize the conflicting provisions of the House and Senate Versions of the GAB. A Harmonized Version of the GAB is thus produced.

BUDGET LEGISLATION- RATIFICATION OF GABThe Harmonized or Bicam Version is then submitted to both Houses, which will then vote to ratify the final GAB for submission to the President. Once submitted to the President for his approval, the GAB is considered enrolled.

BUDGET LEGISLATION- VETO & ENACTMENT OF GAAThe President and DBM then review the GAB and prepare a Veto Message, where budget items subjected to direct veto or conditional implementation are identified, and where general observations are made. Under the Constitution, the GAB is the only legislative measure where the President can impose a line-veto (in all other cases, a law is either approved or vetoed in full).

BUDGET LEGISLATION- REENACTMENT When the GAA is not enacted before the fiscal year starts, the previous years GAA is automatically reenacted. This means that agency budgets for programs, activities and projects remain the same. Funding for programs or projects that have already been terminated is realigned for other expenditures. Because reenactments are tedious and prone to abuse, the Aquino Administrationwith the support of Congresshas committed to ensure the timely enactment of a new GAA every year.

This is where the peoples money is actually spent. As soon as the GAA is enacted, the government can implement its priority programs and projects.

BUDGET EXECUTION

BUDGET EXECUTION- RELEASE GUIDELINES & PROGRAMThe budget execution phase begins with DBMs issuance of guidelines on the release and utilization of funds.

BUDGET EXECUTION- BUDGET EXECUTION DOCUMENTS (BEDs)Agencies are required to submit their BEDs at the start of budget execution. These documents outline agency plans and performance targets. These BEDs include the physical and financial plan, monthly cash program, estimate of monthly income, and list of obligations that are not yet due and demandable.

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BUDGET EXECUTION- ALLOTMENT & CASH RELEASE PROGRAMMINGTo ensure that releases fit the approved Fiscal Program, the DBM prepares an Allotment Release Program (ARP) to set a limit for allotments issued to an agency and on the aggregate.

The ARP of each agency corresponds to the total amount of the agency-specific budget under the GAA, as well as Automatic Appropriations. A Cash Release Program (CRP) is also formulated alongside that to set a guide for disbursement levels for the year and for every month.

BUDGET EXECUTION- ALLOTMENT RELEASEAllotments, which authorize an agency to enter into an obligation, are either released by DBM to all agencies comprehensively through the Agency Budget Matrix (ABM) and individually via Special Allotment Release Orders (SAROs).

BUDGET EXECUTION- ALLOTMENT RELEASEAgency Budget Matrix (ABM)

This document disaggregates all programmed appropriations for each agency into two main expenditure categories: not needing clearance and needing clearance.

The ABM is the comprehensive allotment release document for appropriations which do not need clearance, or those which have already been itemized and fleshed out in the GAA.

BUDGET EXECUTION- ALLOTMENT RELEASEAllotment Release Orders (SAROs)Items identified as needing clearance are those which require the approval of the DBM or the President, as the case may be (for instance, lump sum funds and confidential and intelligence funds). For such items, an agency needs to submit a Special Budget Request to the DBM with supporting documents. Once approved, a SARO is issued.

In preparation of budgetary requirement PROGRAM OF WORKS / PROGRAM OF ACTIVITY is done then approved by the LCE and then submitted to Budget Office for Obligation Request, dito binabudgetan ang program you prepared.43

BUDGET EXECUTION- INCURRING OBLIGATIONSIn implementing programs, activities and projects, agencies incur liabilities on behalf of the government. Obligations are liabilities legally incurred, which the government will pay for.

There are various ways that an agency obligates: for example, when it hires staff (an obligation to pay salaries), receives billings for the use of utilities, or enters into a contract with an entity for the supply of goods or services.

BUDGET EXECUTION- The GAA as Allotment ReleaseThe Aquino Administration plans to design the annual General Appropriations Act as the comprehensive allotment release document itself. This is being pursued in order to significantly speed-up the process of releasing the Budget and implementing the programs and projects that it funds.

The 2013 National Budget, is designed in such way. This entails the disaggregation of all budget items into full detail, as well as the elimination of all lump-sum funds, save for a few exceptions such as the Calamity Fund. In other words, this reform significantly reduces the need for SAROs.

BUDGET EXECUTION- CASH ALLOCATIONTo authorize an agency to pay the obligations it incurs, DBM issues a disbursement authority.

Most of the time, it takes the form of a Notice of Cash Allocation (NCA); and in special cases, the Non-Cash Availment Authority (NCAA) and Cash Disbursement Ceiling (CDC).

BUDGET EXECUTION- CASH ALLOCATIONNotice of Cash Allocation (NCA)This is a cash authority issued periodically by the DBM to the operating units of agencies to cover their cash requirements. The NCA specifies the maximum amount of cash that can be withdrawn from a government servicing bank for the period indicated. The release of NCAs by DBM is based on an agencys submission of its Monthly Cash Program and other required documents.

BUDGET EXECUTION- CASH ALLOCATIONOthers Disbursement Authorities.

In contrast to NCAs, Non-Cash Availment Authority (NCAA) are issued to authorize non-cash disbursements.

Cash Disbursement Ceiling (CDC) are meanwhile issued to departments with overseas operations, allowing them to use income collected by their foreign posts for their operating requirements.

After sa Budget approval ni LCE then submitted in the Accounting Office for Disbursement Voucher signed by accountant, treasurer and LCE48

BUDGET EXECUTION- DISBURSEMENTThis is the final step of the budget execution phase, where government monies are actually spent. The Modified Disbursement Scheme is mostly used, where disbursements of national government agencies chargeable against the Treasury are made through government servicing banks, such as the Land Bank of the Philippines.

The budget process, of course, does not end when government agencies spend public funds: each and every peso must be accounted for to ensure that is used properly, contributing to the achievement of socio-economic goals.

This phase happens alongside theBudget Executionphase.

Through Budget Accountability, the DBM monitors the efficiency of fund utilization, assesses agency performance and provides a vital basis for reforms and new policies.

4. BUDGET ACCOUNTABILITY

Here is the Liquidation phase, all Ors and RERs, are passed in the Accountng office for 3 copies, make it 4 for your own copy50

BUDGET ACCOUNTABILITY- PERFORMANCE & TARGET OUTCOMESAgencies are held accountable not only for how these use public funds ethically, but also on how these attain performance targets and outcomes using available resources. These performance measures are set alongside the preparation of the National Budget; and these are indicated in the OPIF Book of Outputs.

Prior to the execution of the enacted National Budget, these performance targets are firmed up during the preparation of BEDs.

BUDGET ACCOUNTABILITY- BUDGET ACCOUNTABILITY REPORTS (BARs)Submitted by agencies on a monthly and quarterly basis, BARs are required reports that show how agencies used their funds and identify their corresponding physical accomplishments.

These include quarterly physical and financial reports of operations; quarterly income reports, a monthly statement of allotments, obligations and balances; and monthly report of disbursements.

BUDGET ACCOUNTABILITY- NO REPORT , NO RELEASEStarting 2012, the DBM will be withholding certain fund releases to agencies if these fail to submit their Budget Accountability Reports. In particular, these will be funds from the Miscellaneous Personnel Benefits Fund (MPBF) for compensation adjustments under the Salary Standardization Law, provisions for unfilled positions and employee clothing allowances. These funds to be withheld are only limited to agencies MPBF allotments so that only the agencies are penalized and that the implementation of critical programs and projects will not be disrupted. Errant and compliant agencies will also be posted online for public scrutiny.

BUDGET ACCOUNTABILITY- REVIEW OF AGENCY PERFORMANCEThe DBM regularly reviews the financial and physical performance of agencies. Actual utilization of funds and physical accomplishments, as indicated in the agencies BARs, are evaluated against their targets as identified via OPIF and in the agencies BEDs. Agency Performance Reviews (APRs) are conducted quarterly or every semester, as the case may be. An annual Budget Performance Assessment Review (BPAR) is conducted to determine each agencys accomplishments and performance by the year-end. The DBM regularly reports results to the President.

BUDGET ACCOUNTABILITY- AUDITAuditing is not within the DBMs jurisdiction, and is instead lodged under the Commission on Audit (COA). Nonetheless, auditing is critical in ensuring agency accountability in the use of public funds.

The DBM uses COAs audit reports in confirming agency performance, determining budgetary levels for agencies and addressing issues in fund usage.

BUDGET CYCLE RECAP (VIDEO)

THE 2014 PHILIPPINE BUDGETP2.268TRILLION26.0% = P590.2B

BUDGET BY EXPENSE CLASS

BUDGET BY EXPENSE CLASSP375.3B P25.0B

DedEd = P336.9BDPWH = P213.5BDILG = P135.4BDND=123.1BDOH =P87.1BDA = P80.7BDSWD = 79.0BDOTC = 48.7BDENR = 23.9BDAR = 20.4B2014BUDGET BY DEPARTMENT-TOP 10

I=P55.7B2=P48.1BCAR=P32.2B3=P94.9B4-A=P102.9B4-B=P43.0BNCR=P275.9B5=P73.3BBUDGET BY REGION6=P85.3B7=P71.6B8=P67.8B9=P50.3B10=P59.7B11=P53.1B12=P50.8BARMM=P44.6B13=42.6B

The 2014 Budget is a budget for inclusive development. It recognizes that the gains of economic growth should be shared by all Filipinos. Its goal is to continue accelerating economic expansion, while at the same time alleviating chronic poverty.

- Florencio B. Abad DBM - Secretary

Now, let us turn to the budget. The Executive Branch proposes projects, which are approved by Congress. However, we have had to suspend a number of projects to make certain that we remain in accordance with the Supreme Courts decision on the Disbursement Acceleration Program, or DAP. I know that those of you in this hall are one with me in believing that we must not deprive our countrymen of benefits, and that these should reach them in the soonest possible time.

This is why: We are proposing the passage of a supplemental budget for 2014, so that the implementation of our programs and projects need not be compromised. [Applause]

Together with this, we are calling on the cooperation of Congress for the passage of a Joint Resolution that will bring clarity to the definitions and ideas still being debated upon, and to the other issues that only you in the legislatureas the authors of our lawscan shed light on. [Applause]

On the first working day after the SONA, we will submit to Congress the proposed 2.606 trillion peso National Budget of 2015. As always, this budget was created together with our countrymen, using strategies that will ensure that funds are only allocated to projects and programs that will truly benefit the public. We are counting on the cooperation of our lawmakers to strengthen our Budget, as the primary instrument in creating opportunities for the Filipino people.EXCERPT ON PNOY SONA 2014 ON BUDGET

PHILIPPINE DEVELOPMENT PLAN2011-2016

Inclusive growth means, first of all, growth that is rapid enough to matter, given the countrys large population, geographical differences, and social complexity. It is sustained growth that creates jobs, draws the majority into the economic and social mainstream, and continuously reduces mass poverty. This is an ideal which the country has perennially fallen short of, and this failure has had the most far-reaching consequences, from mass misery and marginalization, to an overseas exodus of skill and talent, to political disaffection and alienation, leading finally to threats to the constitution of the state itself.Chapter 1: In Pursuit of Inclusive Growth

Growing output and employment are the preconditions for progress in almost all social and economic aspects of development. Productive employment and rising incomes for the vast majority over a long period can do more to combat poverty decisively than any direct assistance government can ever provide.

It is private actors from the smallest self-employed entrepreneurs to the largest conglomerates that create productive jobs and incomes. Governments responsibility however through fiscal and monetary policies is to create an environment for vigorous economic activity, as well as to ensure that enough gains from growth are set aside for larger social purposes or channelled into social investments that facilitate future growth. These objectives are achieved by government decisions regarding the size and direction of public spending and taxation (fiscal policy) and by decisions regarding the control of the nations money supply (monetary policy).Chapter 2: Macroeconomic Policy

Business competitiveness will be enhanced by improving governance, strengthening economic zones, and strengthening national brand identity/awareness. To increase productivity and efficiency, government shall focus interventions on key priority areas, provide firm level support to MSMEs, increase market access, expand industry cluster development and intensify the culture of competitiveness. Proactive measures to empower consumers, promote competition and enforce trade regulations shall also be pursued.

Chapter 3: Competitive Industry and Services Sectors

The agriculture and fisheries sector provides food and vital raw materials for the rest of the economy. It is itself a significant market for the products and services of the nonagricultural economy. As the sector grows and modernizes, it releases surplus labor to the industry and services sectors. Rising productivity and efficiency in the sector are critical in maintaining the affordability of food and purchasing power, especially among the poor. The sectors development is therefore vital in achieving inclusive growth and poverty reduction as well as attaining the targets under the MDGs.

4: Competitive and Sustainable Agriculture & Fisheries Sector

The Plans infrastructure development program aims to contribute to inclusive growth and poverty reduction. It will support the performance of the countrys economic sectors and ensure equitable access to infrastructure services, especially as these affect the peoples health, education, and housing. Toward these ends, the government will accelerate the provision of safe, efficient, reliable, costeffective, and sustainable infrastructure

5: Accelerating Infrastructure Development

The financial sector intermediates claims between savings and investors. The credibility and stability of financial institutions and the relative attractiveness of various financial instruments to borrowers and lenders alike determine how much saving will mobilized, how much it stays in the country to be invested, and how this is to be allocated among the various firms and industries. Together with the state of confidence and long-term expectation, therefore, the stability and performance of financial institutions such as banks, equity and bonds markets, insurance companies, and other financial entities have an indirect but vital bearing on investment and the growth of output and employment in the country.6: Towards a Resilient and Inclusive Financial Sector

Good governance sets the normative standards of development. It fosters participation, ensures transparency, demands accountability, promotes efficiency, and upholds the rule of law in economic, political and administrative institutions and processes. It is a hallmark of political maturity but also a requisite for growth and poverty reduction, for there are irreducible minimum levels of governance needed for large-scale investment to occur and for social programs to be supported7: Good Governance and the Rule of Law

Social development has improved the access of Filipinos to quality basic social service delivery in education, training and culture; health and nutrition; population and development; housing; social protection; and asset reform. The country is on track in pursuing the Millennium Development Goals (MDGs) on poverty, gender and equality, child health, disease control and sanitation. However, the country lags in achieving universal primary education, improving maternal health, and combating HIV/AIDS. Moreover, large discrepancies across regions need to be addressed by the social development sector in the next six years.8: Social Development

Peace and security shall be achieved in support to national development. The government shall exert all efforts to win peace and ensure national security. The peace process shall center on the pursuit of negotiated political settlement of all armed conflicts and the implementation of complementary development tracks to address its causes. This shall be anchored on conflict prevention and peace building in conflict-affected areas. On the other hand, national security shall involve the whole-of-nation approach, focusing on internal stability, upholding the sovereignty and territorial integrity of the state, capability and preparedness against natural calamities and disasters, and reform and modernization of the security sector.9: Peace and Security

For the medium-term, an environment that is healthy, ecologically balanced, sustainably productive, climate change resilient, and one that provides for present and future generations of Filipinos is envisioned. This vision will be pursued through an integrated and community-based ecosystems approach to environment and natural resources management, precautionary approach to environment and natural resources, sound environmental impact assessment (EIA) and cost-benefit analysis (CBA). These, then, are all anchored on the principles of shared responsibility, good governance, participation, social and environmental justice, intergenerational space and gender equity, with people at the core of conservation, protection and rehabilitation, and developmental initiatives.

10: Conservation, Protection and Rehabilitation of the Environment and Natural Resources

1.Eradicate extreme poverty and hunger2. Reduce Child Mortality3. COMBAT HIV / AIDS, MALARIA AND OTHER DISEASES4. ENSURE ENVIRONMENTAL SUSTAINABILITY5. ACHIEVE UNIVERSAL PRIMARY EDUCATION6. PROMOTE GENDER EQUALITY AND EMPOWER WOMEN.7. IMPROVE MATERNAL HEALTH8. ACCESS TO REPRODUCTIVE HEALTH SERVICES

Philippine Government on the Millennium Development Goals (MDG)

PHILIPPINE DEVELOPMENT PLAN 2011-2016 (VIDEO)

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