Republic Act 10633 General Appropriation Act of 2014

An Act Appropriating Funds for the Operation of the Government of the Republic of the Philippines from January One to December Thirty-One, Two Thousand and Fourteen, and for other Purposes

Summary of FY 2014 New Appropriations (Amount, in Thousand Pesos)

Congress of the Philippines Office of the President Office of the Vice-President Department of Agrarian Reform Department of Agriculture Department of Budget and Management Department of Education State Universities and Colleges Department of Energy Department of Environment and Natural Resources Department of Finance Department of Foreign Affairs Department of Health Department of Interior and Local Government Department of Justice Department of Labor and Employment Department of National Defense Department of Public Works and Highways Department of Science and Technology Department of Social Welfare and Development Department of Tourism Department of Trade and Industry Department of Transportation and Communications National Economic and Development Authority Presidential Communications Operations Office Other Executive Offices Autonomous Region in Muslim Mindanao Joint Legislative-Executive Councils Judiciary Civil Service Commission Commission on Audit Commission on Elections Office of the Ombudsman Commission on Human Rights Budgetary Support to Government Corporations Allocations to Local Government Units Contingent Fund

10,742,423 2,790,665 217,296 20,002,768 68,596,751 997,494 281,774,247 35,934,625 3,299,376 23,345,621 11,524,941 12,130,738 84,356,933 100,295,430 10,903,778 12,177,273 82,265,071 206,634,047 11,928,821 83,304,463 1,994,061 4,406,338 45,461,306 3,904,430 1,128,359 13,755,995 19,615,029 4,167 18,559,816 1,213,353 7,969,497 2,735,321 1,732,334 326,923 46,255,210 19,588,843 1,000,000

Department of Education - School Building Program E-Government Fund Feasibility Studies Fund International Commitments Fund Miscellaneous Personnel Benefits Fund National Risk Reduction and Management Fund Pension and Gratuity Fund Rehabilitation and Reconstruction Program Unprogrammed Fund TOTAL P

1,000,000 2,478,900 400,000 4,815,644 53,535,086 13,000,000 120,495,952 20,000,000 139,903,759 1,608,503,084

The National Budget

The National Budget is the financial expression of approved government plans and programs to be supported by government revenues. Budgeting enables the government to manage its scarce financial resources to support priority programs and projects for promoting economic growth and providing public services. In other words, it is in budgeting where the government puts its money where its mouth is.

Income, Expenditure, Deficit The National Budget consists of the governments estimated income and planned expenditures in a given year. The governments income is composed of taxes (income tax, value-added tax, etc.) and non-tax revenues (fees and charges, privatization proceeds, etc.) Meanwhile, expenditures include programs, activities, projects, purchase of goods and services, among others, that the government will spend on to achieve its socioeconomic development objectives. When the governments income is insufficient to finance expenditures, government incurs a fiscal deficit. In this situation, government resorts to borrowing from domestic and foreign sources.

Coverage The National Budget covers the totality of the budgets of national government agencies not only those of the Executive branch, but also of Congress, the Judiciary and other Constitutional bodies. It also covers the budgetary support given by the national government to local government units (LGUs), in particular, the Internal Revenue Allotment (IRA); as well as to Government-Owned or Controlled Corporations (GOCCs) and government financial institutions (GFIs).

Components The National Budget for a given year is composed of the following: 1. New General Appropriations Legislated by Congress and enacted by the President every fiscal year as the General Appropriations Act (GAA). The GAA enacts both programmed and unprogrammed general appropriations. a. Programmed appropriations supported by corresponding sources of revenue. b. Unprogrammed appropriations can only be executed when the government attains a revenue windfall (i.e., above target). 2. Automatic Appropriations Under specific laws, certain types of expenditure (e.g., debt interest payments, LGUs IRA) are automatically set or appropriated. 3. Continuing Appropriations Appropriations previously enacted by Congress in the previous years GAA and which continue to be valid. Currently, appropriations for capital outlays and maintenance and other operating expenditures have a validity of two years.

Annual Preparation, Three-Year Perspective The Philippine Constitution requires the President to submit to Congress, within 30 days from the opening of every regular session as the general appropriations bill, a budget of expenditures and sources of financing, including receipts from existing and proposed revenue measures. The annual preparation of the National Budget also ensures that all government spending is reviewed and justified anew each year. Even so, the government also adopts a three-year perspective. This ensures that the National Government remains strategic in managing its resources.