FISCAL RESPONSES TO FISCAL RESPONSES TO ALLEVIATE POVERTY IN ALLEVIATE POVERTY IN

THE COUNTRYTHE COUNTRY

How are government How are government expenditures financed?expenditures financed?

a. From revenues consisting of taxes and non-tax sources collected by BIR, BOC and other agencies, and

b. From proceeds of borrowing from domestic and foreign sources

Revenue Collections for CY Revenue Collections for CY 20012001 (in billion pesos)(in billion pesos)

Total = P558.2

498.9

59.3

TaxNon-Tax

Revenue Targets, FY 2002Revenue Targets, FY 2002

(in billion pesos)(in billion pesos)

Total = P624.3

53

571.3

TaxNon-Tax

Tax Collection by Agency,FY Tax Collection by Agency,FY 20012001

CY 2001 = P498.9

388.1

105.15.7

BIRBOCOTHERS

( in billion pesos)( in billion pesos)

Total = P571.3

447.6

115.18.6

BIRBOCOTHERS

Tax Collection Targets by Agency,CY Tax Collection Targets by Agency,CY 20022002( in billion pesos)( in billion pesos)

211.1

58.3

128.8138.6

0

50

100

150

200

250

2001 2002

Domestic

Foreign

CY 2001 = P269.4CY 2002 = P267.4

Total Borrowing

Gross Borrowings,CY 2001-Gross Borrowings,CY 2001-20022002( in billion pesos)( in billion pesos)

Where do the taxes you Where do the taxes you and and I pay go?I pay go?• To finance the regular operating

requirements of government agencies• To finance programs, projects and

activities, in various sectors and locations of the country.

BUDGET ALLOCATION, BY MAJOR BUDGET ALLOCATION, BY MAJOR PROGRAM,PROGRAM, FY 2001FY 2001 (in billion pesos) (in billion pesos)

Total: P699.9

3 8 .9

6 4 .4

2 01 .9

4 5 .23 6

1 2 4 .9

1 8 8 .6

Basic NeedsSocial Protection and SecurityEmpowerment and Social EquityNational SecurityGen. Supervision and OversightSharing of Revenues to LGUsInterest Payments/Related Expenses

188.6 38.9

201.9

64.4

45.2124.9

36.0

BUDGET ALLOCATION, BY MAJOR BUDGET ALLOCATION, BY MAJOR PROGRAM,PROGRAM, FY 2002FY 2002 (in billion pesos)(in billion pesos)

Total: P780.8

3 8 .9

6 4 .4

2 01 .9

4 5 .23 6

1 2 4 .9

1 8 8 .6

Basic NeedsSocial Protection and SecurityEmpowerment and Social EquityNational SecurityGen. Supervision and OversightSharing of Revenues to LGUsInterest Payments/Related Expenses

137.040.3 53.0

220.7

73.146.2

210.4

374.8

129.7

13.8

181.6

424.4

141

11.1

204.3

050

100150200250300350400450

2001 2002NGAs LGUsGOCCs Creditors

NG Expenditures, By Recipient NG Expenditures, By Recipient UnitsUnitsFY 2001-2002FY 2001-2002 (in billion pesos)(in billion pesos)

CY 2001 = P699.9CY 2002 = P780.8

*/Net of Interest Payments and Net Lending

Budget Program*by Expense Budget Program*by Expense Class, FY 2001-2002Class, FY 2001-2002 (in billion (in billion pesos)pesos)

249.3

205.4

56.5

265.5

221.8

83.1

0

50

100

150

200

250

300

2001 2002Personal Services (PS)Maintenance and Other Operating Expenses (MOOE)Capital Outlay(CO)

CY 2001 = 511.3CY 2002 = 530.4

Total

In FY 2002, what is the In FY 2002, what is the distribution of the distribution of the budget for each sector?budget for each sector?

Expenditure Program by Sector Expenditure Program by Sector FY 2002FY 2002 (in billion pesos)(in billion pesos)

Total = P780.8B

157.7210.4

133.646

233

Economic Services Social ServicesDefense General Public ServicesInterest Payment

Expenditures for Social Expenditures for Social Services, FY 2002Services, FY 2002 (in billion pesos)(in billion pesos)

020,00040,00060,00080,000

100,000120,000140,000

Educ.Culture

Health SocialSecurity

Housing Others

Total: P232.964

Expenditures for Social Expenditures for Social Services, FY 2002Services, FY 2002 (in percent distribution)(in percent distribution)

CY 2002

Educ. Culture

56%Health

6%

Social Security

13%

Housing1%

Others24%

Expenditures for Expenditures for Economic Services, FY Economic Services, FY 20022002 (in billion pesos)(in billion pesos)

0

10,000

20,000

30,000

40,000

50,000

60,000

Total: P 157.666

Agri. & Agrarian Ref.Nat. Resources & Env.Trade and IndustryTourismWater Resources & FCRoads & Comm.Others

Economic Services, FY Economic Services, FY 20022002 (in percent distribution)(in percent distribution)

19%

6%

2%

34%

34%

1%

4%

Agri. & AgrarianRef.Nat. Resources &Env.Trade and Industry

Tourism

Water Resources &FCRoads & Comm.

Others

Expenditures for General Expenditures for General Public Services, FY 2002Public Services, FY 2002 (in billion pesos)(in billion pesos)

39,452

54,215

39,978

0

10,000

20,000

30,000

40,000

50,000

60,000

Gen.Administration

Public Order Others

Total = P133.645

General Public Services, FY General Public Services, FY 20022002 (in percent distribution)(in percent distribution)

30%

40%

30%

Gen. AdministrationOthers Services

Public Order and Safety

1998-2002 Sectoral Allocation1998-2002 Sectoral Allocation **(percent distribution)(percent distribution)

05

1015202530354045

1998 1999 2000 2001 2002Economic Social Defense GPS

* Net of net lending and interest payments

How large is the How large is the allocation of the budget allocation of the budget for infrastructure? for infrastructure?

Infrastructure Outlays FY Infrastructure Outlays FY 20012001(in billion pesos)(in billion pesos)

Total: P49.875

2

16.212

4.027 0.975 5.33.796

17.4

Roads/Bridges

Flood Control

Irrigation

FTMR

Air/Land/Sea/Ports/FacilitiesSchl. Bldg.

Others

Infrastructure Outlays FY Infrastructure Outlays FY 20022002(in billion pesos)(in billion pesos)

Total: P57.283

8.366

2.015

7.133

1.271

7.805 7.472

23.137

Roads/Bridges

Flood Control

Irrigation

FTMR

Air/Land/Sea/Ports/FacilitiesSchl. Bldg.

Others

What is the What is the geographical geographical distribution distribution of the budget of the budget across across Luzon, Luzon, Visayas and Visayas and Mindanao?Mindanao?

Geographical Allocation,FY 1999-Geographical Allocation,FY 1999-20022002 ( in billion pesos)( in billion pesos)

050,000

100,000150,000200,000250,000300,000350,000400,000450,000500,000

1999 2000 2001 2002

LuzonVisayasMindanaoNationwide & CO

Geographical Allocation, FY Geographical Allocation, FY 20012001(in million pesos)(in million pesos)

Total= P725,000

193,364

76,838

100,749

354,049 Luzon

Visayas

Mindanao

Nationwide &CO

Geographical Allocation FY Geographical Allocation FY 20012001 (in percent distribution)(in percent distribution)

14%

48%

11%

27%

Luzon VisayasMindanao Nationwide & CO

Geographical Allocation, FY Geographical Allocation, FY 20022002 (in million pesos)(in million pesos)

Total = P780,790

186,389

92,936

74,893

426,572Luzon

Visayas

Mindanao

Nationwide

Geographical Allocation, FY Geographical Allocation, FY 20022002 (in percent distribution)(in percent distribution)

12%54% 10%

24%

Luzon VisayasMindanao Nationwide & CO

Regional Allocation of Regional Allocation of Expenditure Program, 2001Expenditure Program, 2001(in million pesos)(in million pesos)

125,4

1022

8,639

47,18

7 21

,961

14,22

0 16

,653

29,08

8 42

,052

22,20

3 30

,818

23,87

4 22

,146

17,54

5 15

,547

23,17

3 14

,065

15,52

1 14

,901

0

50,000

100,000

150,000

200,000

250,000

NW CONCR I

CAR II III IV V VI VII VIII IX X XI XII

CARAGAARMM

Total: P725,000

Regional Allocation of Regional Allocation of Expenditure Program, 2001Expenditure Program, 2001 (percentage)(percentage)

2 2 2

3

2 2

3

3

4 3

6

4 2

2

3

5 NCR I CAR II III IVV VI VII VIII IX XXI XII CARAGA ARMM

Regional Allocation of Regional Allocation of Expenditure Program, 2002Expenditure Program, 2002(in million pesos)(in million pesos)

144,9

0228

1,670

41,98

1 21

,330

11,35

9 15

,706 30,94

1 43,41

7 21

,655

30,39

9 22

,911

21,58

3 16

,670

14,34

3 22

,497

14,25

7 14

,084

11,08

5

0

50,000

100,000

150,000

200,000

NW CONCR I

CAR II III IV V VI VII VIII IX X XI XII

CARAGAARMM

Total: P780,790

Regional Allocation of Regional Allocation of Expenditure Program, 2002Expenditure Program, 2002 (percentage)(percentage)

1 2 2

3

2

2 3

3

4

3

6 4 2

1

3

5 NCR I CAR II III IVV VI VII VIII IX XXI XII CARAGA ARMM

Top Five (5) Departments, Top Five (5) Departments,

FY 2001-2002FY 2001-2002 (in billion pesos)(in billion pesos)

98.1 105.3

54.6 65.4

44.6 48.3

37.2 45.6

12.7 18.6

0

20

40

60

80

100

120

DECS (w/Schl.

Bldg.)

DND(w/AFPMdrztn)

DPWH DILG DA (w/AFMA)

20012002

Data Provided by:

Fiscal Planning Bureau (FPB)

Prepared by:

Office of the Undersecretary. Operations