he 2017 National Budget was initially crafted by the Aquino administration.

However, it was realigned to support the priority agenda of the Duterte

administration as defined in T the Presidents first State of the Nation Address.

The National budget weighs a significant role in fulfilling the socioeconomic

objectives for the country, to which the Duterte administration campaigns: "effect
real change - a change that will positively impact the lives of the Filipinos." The
3.37T budget is said to be the highest allocation by any administration so far.

Fiscal deficit is maintained at 3% It is maintained at a level that will sustain

programs that increase productivity such as education and transportation programs.
The country has low economic growth, and aims to propel economic activity

The goverment will get its revenues from tax revenues at: P2.48T, non tax revenues
166.5B and privitization at 2B. The goverment also intends to make the income tax
rates for individuals and corporations lower by compensating through push for fiscal
incentives rationalization to reduce the perks of investors, like tax exemptions, limit
the exemptions in payment of (VAT), increase the excise tax on oil and index it to
inflation, and also on sugar-sweetened beverages and iprove the efficiency of the
Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC) in tax collection.

Borrowings will also be made to cover government expenditures. About P631.3

billion will be borrowed in 2017 to support vital services and to pay loans. Of this
total, 126.3B will come from foreign banks while the 505B percent will be from the
domestic banks. However, governments debt is in a better position as it is declining
for the past years.

In the percentage of sectoral allocation, the social services sector gets the highest
share with P1.345 trillion, or 40.1 percent of the total budget. Budget dimension in
summary are as follows:
General Services P1,271.0 B 37.9%
Education P637.77 B 19.0%
Economic Affairs P565.50 B 16.9%
Social Protection P418.65 B 12.5%
Public Order & Safety P170.80 B 5.1%
Health P146.18 B 4.36%
Defense P115.46 B 3.4%
Housing & Community Amenities P11.61 B 0.35%
Environmental Protection P7.54 B 0.22%
Recreation, Culture, & Religion P5.50 B

Top 10 highest R allocations among the departments/agencies: Deped number 1,

last Dep of Finance. 2017 Proposed Budget 1,738.0 B 51.9%

he 2017 Budget provides a higher allocation for infrastructure and other capital
outlays, with P780.6 billion, to support the administrations drive to accelerate
infrastructure build-up. With a 23.2 percent share in the total Budget, Infrastructure
and Other Capital Outlays accounts for the second biggest chunk of the 2017
Budget, second to Personnel Services which comprises 29.8 percent of the Budget,
overtaking Maintenance Expenditures.

Expenditure priorities includes: