National Budget and Resources

• Chapter 1 concerns the public budget
• It discusses the national budget

Activity 1

• Choose 5 executive departments of the government
• Choose the 5 to give the highest allocation in the national budget

20 Executive Departments of the Government

• The following are the 20 departments:
• Public Works And Highways, Health, Transportation, Agriculture, Justice, Education, Interior And Local Government, Tourism, National Defense, Social Welfare And Development, and Budget And Management
• The following continue the list of 20 departments:
• Energy, Finance, Foreign Affairs, Labor And Employment, Land Reform, National Economic Development Authority, Science And Technology, Trade And Industry, and Environment and Natural Resources

Public Finance

• According to David Hyman, public finance is the field of economics that studies government activities and alternative means of financing government expenditures

National Budget

• A national budget stands as a crucial public document
• It converts a country's national development goals into annual spending plans
• It is known simply as the budget
• It refers to the cumulative budgets of the national government's various departments

Purpose of National Budget

• It prescribes the funding of government programs and projects
• It follows national priorities, objectives, and strategies

Budgetary Resources

• Budgetary resources pertain to the sources of funds that will finance budgetary expenditures
• The resources include Revenue
• Revenue includes tax and non-tax revenue
• The resources also include Borrowings
• Borrowings are from repayable sources
• They include government-secured loans

Borrowings

• They are from financial institutions, internal and external sources, and budget support.
• Borrowings' two subcategories:
• Domestic borrowings
• Foreign borrowings

Sources of Domestic Borrowing

• The government secures domestic borrowings via auction of Treasury bills, notes, and bonds.
• Treasury Bills
• Short-term debt instruments
• Treasury Bonds and Treasury Notes
• Longer-term certificates of indebtedness
• Their maturity extends beyond one year

Sources of Foreign Borrowing

• Multilateral Sources
• Where many entities own the institution
• Bilateral Sources
• Refers to the government of another country

Multilateral Sources

• International Monetary Fund
• $2.8 billion (2021)
• World Bank
• Top borrower (2021, recent loan): $1.4 Billion
• Asian Development Bank
• $878.3 million (total loan)

Bilateral Sources

• Debt – trap Diplomacy

Foreign Borrowings Types

• Project Loans
• Finance a specific project
• Example: Irrigation or health project
• Program Loans
• Multipurpose
• Enhance a specific sector, conditioned on basic reforms in certain policy areas.

FY 2025 National Budget

• Set at P6.352 Trillion
• Announced by Department of Budget and Management (DBM) Secretary and Development Budget Coordination Committee (DBCC) Chairperson Amenah F. Pangandaman
• 22.0 percent of GDP
• 10.1 percent higher than the FY 2024 budget of Php 5.768 trillion
• Anchored on the theme, "Agenda for Prosperity: Fulfilling the Needs and Aspirations of the Filipino People"
• Designed to build on the gains from the first two years of the administration of President Ferdinand R. Marcos Jr.
• Aims to usher in economic and social transformation for a prosperous, inclusive, and resilient society
• Objectives align with the Philippine Development Plan (PDP) 2023-2028
• Aims to develop and protect the capabilities of individuals and families, transform production sectors, to generate more quality jobs and produce competitive products, and foster an enabling environment
• DBM considered factors such as the availability of fiscal space, implementation-readiness of programs and projects, agency absorptive capacity, and alignment with expenditure directions

Top 10 Sectors Receiving Highest Allocation in 2025

• Education Sector: P1.055 trillion
• Department of Public Works and Highways: P1.007 trillion
• Department of National Defense: P315.1 billion
• Department of Interior and Local Government: P279.1 billion
• Department of Health: P267.8 billion
• Department of Agriculture: P237.4 billion
• Department of Social Welfare and Development: P217.5 billion
• Department of Transportation: P123.7 billion
• Judiciary: P64 billion
• Department of Justice: P42.2 billion

Top Priority Sectors 2024

• Education (DEPED, SUCS, CHED, TESDA): Php 924.7 B (2023 GAA: Php 895.2 B)
• Public Works (DPWH): Php 822.2 B (2023 GAA: Php 894.2 B)
• Health (DOH, PhilHealth): Php 306.1 B (2023 GAA: Php 314.7 B)
• Interior and Local Government (DILG): Php 259.5 B (2023 GAA: Php 253.2 B)
• Defense (DND): Php 232.2 B
• Transportation (DOTr): Php 214.3 B (2023: Php 106.0 B)
• Social Welfare (DSWD): Php 209.9 B (2023: Php 199.5 B)
• Agriculture (DA and attached corporations, DAR): Php 181.4 B (2023: Php 173.6 B)
• Judiciary: Php 57.8 B (2023: Php 54.9 B)

Key Departments

• Department of Education (DepEd)
• The executive department of the Philippine government responsible for ensuring access to, promoting equity in, and improving the quality of basic education
• The main agency tasked to manage and govern the Philippines
• Commission on Higher Education
• A government agency under the Office of the President of the Philippines
• Responsible for regulating and governing all higher education institutions and post-secondary educational programs in the country
• A Government Agency attached to the Office of the President
• Department of Public Works and Highways
• Implements the policy of the State to continuously develop technology for ensuring the safety of all infrastructure facilities and securing for all public works and highways the highest efficiency and the most appropriate quality of construction
• Department of Health
• Responsible for ensuring access to basic public health services by all Filipinos through the provision of quality health care, and the regulation of all health services and products.
• Department of Interior and Local Government
• Responsible for promoting peace and order and local government.
• Assists LGU to effectively and efficiently deliver services to their constituents
• Department of National Defense
• Responsible for guarding against external and internal threats to peace and security
• Department of Social Welfare and Development
• Responsible for the protection of the social welfare of rights of Filipinos and to promote the social development
• Department of Transportation
• Responsible for the maintenance and expansion of viable, efficient, and dependable transportation systems as effective instruments for national recovery and economic
• Department of Agriculture
• Responsible for promoting agricultural and fisheries development and growth
• Department of Justice
• The mission is to uphold the rule of law, to keep our country safe, and to protect civil rights