The Barangay Budget and the Budget Process

The Barangay Budget and the Budget Process 28. What is the significance of preparing a barangay budget? Aside from being a financial plan, the barangay budget serves as an instrument for barangay officials to effectively manage the development of the barangay . A well-prepared barangay budget serves as basis for: • Planning and policy adoption • Program and project implementation • Financial control • Management information

29. What is the legal basis for barangay budgeting? Sections 329-334 (Barangay Budget) of the Local Government Code of 1991 (RA No. 7160) provide the basis for the collection, safekeeping and use of barangay funds. The aforesaid provisions govern the preparation, effectivity, and review of the barangay budget, including the financial procedures that the barangay shall observe. 30. How does the budget process at the barangay level compare with other levels of LGUs? The budget process at the barangay level follows a similar process as in the other levels of local government units. The budget process is a cycle that consists of the following phases: • budget preparation • budget legislation or authorization • budget review • budget execution and • budget accountability. The different phases overlap with each other within a budget year. While the budget of a current year is being implemented, the barangay should also prepare the budget for the succeeding year. Also within a budget year, the barangay should prepare and submit accountability reports for the past and current year.

IV- a Budget preparation 31. Who prepares the barangay budget? The Punong Barangay, with the assistance of the Barangay Treasurer,

prepares the barangay budget.

32. Who prepares the barangay budget? The Punong Barangay, with the assistance of the Barangay Treasurer, prepares the barangay budget. What are the components of a barangay budget? A barangay budget consists of the following: • Estimates of income; and, • Total appropriations covering current operating expenditures and capital outlays. 33. Who determines the estimated income to be used as a source of fund in the budget? The Barangay Treasurer is responsible for determining the estimated income to be used as a source of fund in the budget.

34. When and why should the Barangay Treasurer submit to the Punong Barangay the detailed Statements of Income and Expenditures of the past and current years? The Barangay Treasurer should submit to the Punong Barangay on or before September 15 of each year the detailed Statements of Income and Expenditures as a basis for the preparation of the budget for the next fiscal year.

35. What forms part of the beginning balance of the estimated income for the budget year? Estimated savings at the end of the current year forms part of the beginning balance for the budget year. It includes projected balances of any appropriation which remain free of any obligation or encumbrances and which are still available at the end of the current year after the satisfactory completion, or the unavoidable discontinuance or abandonment of the work, activity or purpose for which the funds were authorized.

36. Is there any penalty for a Punong Barangay who fails to prepare and submit the annual barangay budget on time?

Yes. Pursuant to Sec. 318 of R.A. No. 7160 and implemented by DBMCOA Joint Circular No. 93-2 dated June 8, 1993, a Punong Barangay who fails to submit the budget on or before October 16 of the current year shall be subject to such criminal and administrative penalties as may be provided by the Local Government Code and other applicable laws. 37. What are the mandatory obligations that should be provided in the barangay annual budget? The barangay annual budget must include the following: • Appropriations for development projects of not less than 20% of the total IRA of the barangay for the budget year (Development Fund); • Appropriations for Sangguniang Kabataan (SK) programs, projects and activities equivalent to 10% of the general fund of the barangay for the budget year (SK Fund); • Appropriations for unforeseen expenditures arising from the occurrence of calamities at 5% of regular income for the budget year (Calamity Fund); and • Provision for the delivery of basic services pursuant to Section 17 of RA No. 7160, and effective local governance.

38. How much can be appropriated for personal services of a barangay? The barangay can appropriate not more than 55% of the total annual income actually realized during the next preceding fiscal year for personal services. The illustrative computation of FY 2000 PS is presented below: Income from regular sources realized during the next preceding fiscal year (1998) P100,000 x 55% P 55.000 Less: Total PS Appropriations P 70,000 Excess in PS Appropriations P 15,000 39. Are there cases when the 55% personal services limitation may be waived? Yes. Excess over the 55% cap in personal services may be waived if caused by the implementation of EO No. 332, whereby increases in honoraria of barangay officials are allowed as continued implementation of the Salary Standardization Law.

40. Are there collections which cannot be included in the budget of the barangay? Yes. Collections or monies which are held in trust, i.e., performance bonds, deposits, payments under protest, and funds for specific activities contributed by outside sources cannot be included in the barangay budget.

41. What is a supplemental budget and when is it prepared? A supplemental budget is a financial plan authorized by a legislative body through the enactment of an ordinance or law that authorizes the changes in the annual appropriation ordinance or law. It is prepared under the following circumstances: • when funds are actually available as certified by the Barangay Treasurer; • when new revenue sources (other than those identified in the annual budget) can support the additional budgetary requirements; and • In times of public calamity. Funds are actually available when realized income exceeds estimated income as of any given day, month or quarter of the fiscal year. Funds are likewise deemed actually available when there are savings. For this purpose, savings refer to portions or balances as of any given point in the fiscal year of any programmed or allotted appropriation which remain free of any obligation or encumbrances and which are still available after the satisfactory completion or the unavoidable discontinuance or abandonment of the work, activity or purpose for which the appropriations was originally authorized. Savings may also result from unobligated compensation and related cost pertaining to vacant positions and leaves of absence without pay of local personnel receiving salaries.

42. Can a supplemental budget be passed in place of the annual barangay budget? No. Pursuant to Sec. 323 of R.A. No. 7160, an ordinance authorizing supplemental appropriations shall not be enacted in place of the annual

appropriations.

43. Is the provincial/city and municipal aid to barangays limited to P1,000 each? No. The aid to barangays in the amount of not less than P1,000 per barangay may be increased subject to the discretion and availability of funds of the province/ city/ municipality.

44. Who is entitled to a discretionary fund and for what purpose does it serve? Only the Punong Barangay is entitled to a discretionary fund to be used for public purposes and for other miscellaneous expenses related to the official functions of the Punong Barangay. 45. How much is the discretionary fund of the Punong Barangay? The annual appropriation for discretionary purposes of the Punong Barangay shall not exceed two percent (2%) of actual receipts derived from basic real property tax in the next preceeding calendar year. 46. Can a barangay set aside in its budget a certain amount for contribution or any fees that may be requested by the Liga ng mga Barangay? Yes. The amount can be included in the appropriation for grants, donations/contributions under MOOE. Prior year unpaid contributions can also be considered. IV. b Budget Authorization

47. Who authorizes the barangay budget? The barangay budget is authorized by the Sangguniang Barangay, the legislative body empowered to enact all ordinances pertaining to the barangay.

48. How does the Sangguniang Barangay authorize the barangay budget? The SB passes the barangay budget through the enactment of an appropriation ordinance which shall be approved or ratified by majority of the SB members. 49. What is an appropriation ordinance? An appropriation ordinance is the legislative instrument authorizing the budget.

50. When is the effectivity of an appropriation ordinance? An appropriation ordinance becomes effective only upon its approval by majority of the SB members and signed by the Punong Barangay on the date fixed in the ordinance. 51. What happens if the Sangguniang Barangay fails to enact an appropriation ordinance? The ordinance authorizing the appropriations of the preceding year shall be deemed reenacted and shall remain in force and effect until the ordinance authorizing the proposed appropriations is passed by the Sangguniang Barangay. However, only the annual appropriations for honoraria and salaries/wages of barangay officials and employees, respectively, statutory and contractual obligations, and essential operating expenses authorized in the annual and supplemental budgets for the preceding year shall be deemed reenacted.

52. Can the Sangguniang Barangay reduce the appropriations in the budget during the authorization phase of the budgeting process? Yes. The Sangguniang Barangay can reduce the appropriations during the authorization phase of the budgeting process. 53. Can the Sangguniang Barangay increase the appropriations in the budget during authorization? No. Except when mandatory and statutory obligations have not been provided for in the budget, in which case, the increase may cover the deficiency, provided that the total appropriation does not exceed the total estimated income reflected in the budget proposed by the Punong Barangay.

54. Does an appropriation ordinance need the approval of the Punong Barangay? Yes. Ordinances enacted by the Sangguniang Barangay, upon approval by the majority of its members, need to be approved and signed by the Punong Barangay. 55. Does the Punong Barangay vote on the proposed budget? The Punong Barangay does not normally vote on the proposed budget but he may do so only to break a tie. 56. Does the Punong Barangay have a veto power?

No. This is so because the Punong Barangay is also the Presiding Officer of the Sangguniang Barangay. However, he may convince other members of the Sangguniang Barangay from voting against the appropriations measure if important items in his original proposal are not adopted or if these were subjected to substantial insertions/deletions. IV. c Budget Review

57. Why is the barangay budget submitted for review? The barangay budget is submitted for review to ensure that: • Budgetary requirements and limitations provided in the Local Government Code are complied with; • The budget does not exceed the estimated receipts and/or income of the barangay; and, • The items of appropriations are not more than those provided by existing laws.

58. When is the barangay budget submitted for review? The appropriation ordinance, authorizing the annual or supplemental budget is submitted for review within ten (10) days after its enactment.

59. Who reviews the barangay budget/appropriation ordinance? The Sangguniang Panlungsod/Bayan, through the City/Municipal Budget Officer, reviews the barangay budget. The City/Municipal Mayor may indirectly review barangay budgets through the City/Municipal Budget Officer. 60. What is the prescribed period for the review of the barangay budget? The barangay budget should be reviewed within 60 days upon receipt of the appropriation ordinance authorizing the barangay budget by the Sangguniang Panlungsod/Bayan, through the City or Municipal Budget Officer. 61. What happens if the Sangguniang Panlungsod/Bayan fails to act on the proposed barangay budget after the prescribed period? The budget is deemed in full force and effect if the Sangguniang Panlungsod/Bayan fails to review the barangay budget within the 60-day period.

62. What are the effects of an inoperative budget? a. The budget shall be returned to the Punong Barangay for proper adjustment/ revisions. The Barangay Treasurer who has custody of the funds shall not make any further disbursements from the inoperative budget. b. The barangay operates on a reenacted budget or the budget of the previous year until the proposed budget meets the approval of the Sangguniang Panlungsod or Bayan to ensure the continuity of its projects and activities

63. What are the disadvantages of a re-enacted budget? While a re-enacted budget ensures that barangay operations will continue despite the absence of a new budget, it has, however, the following disadvantages: • No new projects can be undertaken; • New positions cannot be filled; • No new equipments can be acquired; • Non-recurring activities, no matter how vital, cannot be undertaken; and • No increase in honoraria and other benefits

64. What options does the barangay have in case of conflict in the review of its budget by the Sangguniang Panlungsod/Bayan? In case of conflict in the review of its budget, the barangay may take the following courses of action: • Make an appeal to the City/Municipal Legal Officer who is assigned to review and submit recommendations on approved ordinances and executive orders issued by the city/municipal components; and • Seek the technical assistance of the Department of Budget and Management through its appropriate Regional Office.

IV- d Budget Execution

65. Who is responsible for the execution of the barangay budget?

The Punong Barangay is responsible for the execution of the barangay budget. 66. What are the primary responsibilities of the barangay officials in implementing the barangay budget? In implementing or executing the barangay budget, barangay officials shall ensure the following: • That the revenues as estimated are realized; • That the approved programs and projects in the barangay development plan and in the annual budget are implemented; • That barangay funds are disbursed in accordance with the appropriation ordinance and reviewed annual budget; and • That all financial transactions of the barangay follow accounting and auditing rules.

67. How is the barangay budget executed? The barangay budget is executed through the following procedures: • Preparation of a simple cash program for the quarter • Disbursement of funds per cash program; • Preparation of requests for obligation of allotment (ROA); • Preparation of disbursement voucher based on approved ROA; and, • Issuance of checks.

68. Who signs the checks for the barangay? The Barangay Treasurer and the Punong Barangay, are authorized to sign the checks for the barangay. 69. Who are the signatories in the ROA? The ROA is signed by the following: • The Chairman of the Committee on Appropriations of the Sangguniang Barangay, to certify to the existence of the appropriation; • The Barangay Treasurer, to certify as to the availability of funds; and, • The City/Municipal Accountant, to certify as to the obligation of allotment.

70. Who are the signatories in the Disbursement Voucher? The disbursement voucher is signed by the following: • The Barangay Treasurer; • The City/Municipal Accountant; and, • The Punong Barangay

71. What principles govern the release and disbursement of barangay funds? Barangay funds shall be used judiciously and efficiently. In this context, the following principles must be observed: • No money shall be paid out of the barangay treasury except in pursuance of an appropriations ordinance or law; • Barangay funds and monies shall be spent soley for public purposes; • Trust funds in the barangay treasury shall not be paid out except in fulfillment of the purpose for which that trust was created or the funds received; • Fiscal responsibility shall be shared by all barangay officials exercising authority over the financial affairs, transactions, and operations of the barangays.

72. What are the limitations on the disbursement of barangay funds? Barangay officials should observe the following limitations in the disbursement of barangay funds: • Total disbursements shall not exceed actual collections plus 50% of the uncollected estimated revenue, provided there is no cash overdraft at the end of the year. • No cash advances shall be made to any barangay official or employee unless in accordance with accounting and auditing rules and regulations. • The Barangay Treasurer may be authorized by the Sangguniang Barangay to make direct purchases amounting to not more than one thousand pesos (P1,000.00) at any time for the ordinary and essential needs of the barangay.

73. Who shall keep custody of the financial records of a barangay?

The accounts and financial records of all barangays in a city or municipality shall be kept in the office of the Barangay Treasurer and the City/ Municipal Accountant. 74. What are the financial records that must be kept in custody? Financial records that must be kept in custody of the Barangay Treasurer and the Municipal Accountant are the following: • Books of accounts • Statements of income and expenditures • Balance sheets • Trial balances

75. What are the projects and activities that may be funded from the Local Government Service Equalization Fund (LGSEF)? All activities devolved to the barangays as enumerated under Section 17 (b) of R.A. No. 7160 and as determined by the Oversight Committee on Devolution may be funded from the LGSEF. 76. From what particular appropriation item in the budget can the barangays charge their seminar/training fees? Training fees may be charged against the training and seminar expenses under Maintenance and Other Operating Expenses. 77. What can the barangay do if their Real Property Tax share is not actually remitted by the LGU concerned? In case of non-remittance of RPT share, a barangay may demand for payment or call the attention of the local treasurer and the chief executive of the LGU concerned. If all efforts are denied, the matter may be referred to higher authorities like the Bureau of Local Government Finance (BLGF) of the DOF. 78. What is the option of the barangay if there is a shortfall in income? In case of revenue shortfall, barangay officials may take the following courses of action: a. Prioritize expenditures or spend only what is necessary; b. Intensify revenue collections; c. Seek financial asistance; and d. Resort to borrowings.

79. Can the Municipal Accountant refuse to sign the Statement of Income of a

barangay to support a supplemental budget? No. The Municipal Accountant cannot refuse to sign the Statement of Income to support a suplemental budget unless the proposed income of the barangay cannot be considered as a source of fund for a supplemental budget. Should this happen, the matter can be referred to the mayor for appropriate action. 80. What happens to the unexpended balances of appropriation for PS and MOOE at the end of the fiscal year? Unexpended balances of appropriations for administrative purposes like PS and MOOE which remain unobligated at the end of the fiscal year shall revert to the general fund. 81. Is it possible to use savings from one expense item to another without enacting a supplemental budget? Yes. The Punong Barangay may by ordinance, be authorized by the Sangguniang Barangay to augment any item in the approved annual budget from savings in other items within the same expense class, ie. from a personal services (PS) item to another PS item, or from a MOOE item to another MOOE item. Hence, use of savings through augmentation of funds is allowed without enacting a supplemental budget.

82. Under a reenacted budget, can the barangay continue to pay the honoraria of Barangay Health Workers? Yes. Pursuant to Sec. 323 of RA No. 7160, the annual appropriations for honoraria of existing positions in the barangay, statutory and contractual obligations, and essential operating expenses authorized in the preceeding year’s annual and supplemental budgets are deemed reenacted. 83. How are the IRA shares of barangays released? Section 286 of the Local Government Code of 1991 provides that the IRA share of local government units (LGUs) shall be released within five (5) days after the end of each quarter without need of further action or request. However, in order to facilitate the early release of the IRA to the barangays, the DBM has adopted a direct credit system of cash release to the barangays 84. How are the IRA shares released under the Direct Credit System?

Under the Direct Credit System, the DBM-Regional Operations and Coordination Service (DBM-ROCS) prepares the Notice of Cash Allocations and releases the funding checks for the month within five (5) days of the ensuing month to the head offices of the following government depository banks: Land Bank of the Philippines (LBP), Development Bank of the Philippines (DBP), Philippine National Bank (PNB), and Philippine Veterans Bank (PVB). The banks in turn credit the amounts to the respective current accounts of barangays within 24 hours upon receipt of the funding check. Unlike in the previous fund release system, the IRA shares no longer pass through the servicing banks of DBM ROs and the regional branches of the banks. This release mechanism ensures the early receipt by the barangay of their IRA shares. 85. Can the barangay spend the 20% development fund (DF) even if they failed to submit the AIP on time? For the 1st quarter of FY 2000, the Sangguniang Barangay may exercise discretion on how and where to spend the 20% DF provided, the result of their decision will be reflected later on in the AIP. 86. Can the 20% Development Fund be reallocated to other expense items? No. The fund cannot be reallocated to other expense items because the law explicitly states that it shall be used exclusively for development projects. 87. What is the proper treatment and disposition of unexpended balances of the 20% Development Fund? Unexpended balances of the 20% Development Fund earmarked for COE, if not booked as accounts payable, shall revert to the unappropriated surplus and shall thereafter be appropriated for other development projects. Funds for capital outlay projects shall be treated as continuing appropriations until the projects are completed or discontinued in which case, the unexpended balances shall be reverted and appropriated for other development projects.

88. How can the barangay finance big priority infrastructure projects considering the small amount of the 20% Development Fund? The 20% Development Fund is cumulative which means that small

releases may be added up to finance bigger and better barangay projects. Planning and programming the use of the fund is most essential in this regard.

89. How is the 10% Sangguniang Kabataan (SK) Fund utilized? As a requisite for the use of the SK fund, the SK shall develop a plan or a work program (or a purchase order) which reflects the projects that they intend to fund for the year. The plan or work program must be approved by the majority members of the Sangguniang Barangay.

90. Should unexpended balances of SK fund be reverted to the general fund at the end of the year? The 10% SK fund is a statutory obligation that can be considered a trust fund. Therefore, any unexpended balances shall form part of the beginning balance of the succeeding fiscal year but only to be added to the 10% share of the SK for the next year.

91. Can the SK purchase mobile phones for their official use? Yes, if it can be justified as very necessary for SK operations. It is strongly recommended, however, that guidelines regarding the payment of bills be formulated since it is very difficult to determine whether the calls are official or not. 92. How does the SK utilize funds generated from fund raising activities? Any amount generated by the SK from fund raising and similar activities may be disbursed by them with the proper guidance of the Sangguniang Barangay but without need of its formal approval. 93. How can the barangay utilize the 5% Calamity Fund? The Punong Barangay may utilize the appropriated amount for unforseen expenditures arising from the occurrence of calamities, provided that the barangay has been declared to be in a state of calamity. 94. Who declares when a barangay is in a state of calamity? When a calamity occurs, the Sangguniang Bayan, Panlungsod or Panlalawigan concerned may declare the locality in a state of calamity which will serve as the basis for utilizing the 5% Calamity Fund. 95. Can the barangay augment the calamity fund if found insufficient when

calamities occurs? Yes. The Sangguniang Barangay may, by way of enacting a supplemental budget, realign appropriations for the purchase of supplies and materials or for payment of services which are exceptionally urgent or absolutely indispensable to prevent imminent danger to, or loss of life or property

Oban backs turnover of AFP budget management to DND By Jaime Laude (The Philippine Star) Updated April 02, 2011 12:00 AM Comments (0)

MANILA, Philippines - Armed Forces of the Philippines (AFP) chief Gen. Eduardo Oban expressed support for proposals to turn over management of the military budget to the Department of National Defense (DND). Oban though stressed the proposal needs a thorough study if this would further promote organizational efficiency. “For as long there is a check and balance and in the spirit of transparency, accountability and fairness, and for as long as it can respond to the military requirements in the most expeditious and most efficient way, I don’t have any problem with that,” Oban said. Oban also exhorted the troops to prove that they are men of honor even in the wake of a recent Pulse Asia survey showing the AFP is the most corrupt state agency. Oban said the negative perceptions about the AFP’s image should prod the military personnel to work harder to reverse them. “In the midst of the survey, the controversies, let us stand tall and show the world that we are men and women of honor… let us make this an inspiration, or a motivation, to work doubly hard to turn this perception around,” Oban said. “I would like to emphasize that the soldiers will continue to serve our country. Some of them, a handful of them, were implicated in corruption but this does not speak for the entire organization,” he said. Oban ensured that abuses such as the diversion of funds and the giving of hefty sums to top officers would not happen under his watch. Oban expressed his support for a civilian agency to handle the military’s budget affairs to disallow any opportunity of corruption in the ranks. The Pulse Asia survey came at the height of the Senate investigation on the plea bargaining agreement made by former AFP comptroller Carlos Garcia with government special prosecutors. Garcia is facing plunder raps before the Sandiganbayan for allegedly stealing around P300 million from state coffers.

Former military budget officer retired Lt. Col. George Rabusa and former state auditor Heidi Mendoza had testified before Congress in revealing how some high-ranking military officials had skimmed off funds for personal use. Following the charges against Garcia, his office has been abolished by the AFP and replaced by four military offices functioning separately. On the other hand, there were proposals to have the AFP budget handled by a government civilian agency to free the military organization from any financial accountabilities. A group of junior officers headed by Army Maj. Jason Aquino earlier came up with a proposal urging President Aquino to issue an executive order to allow the DND to handle and manage the AFP budget. Aquino and his group stressed this move would ultimately rid any temptation for all military personnel to commit any financial anomalies. The current military financial set up still presents an opportunity to commit graft and corrupt practices despite ongoing efforts to cleanse the organization of any malpractices like fund conversion, Aquino said. Oban, meanwhile, confirmed leadership changes in the military due to the retirement of some key officers. Oban did not say when the reassignments would take effect and merely said that the changes will come “at a proper time.” Oban gave assurance that the giving of assignments would be fair and transparent. “The deliberations (on the leadership changes) would be objective. We follow a matrix to ensure that our decisions are guided,” he said. Deputy chief of staff for civil-military operations and acting AFP spokesman Commodore Miguel Rodriguez said the personnel changes would only cover a few officers. He said among the positions to be filled is deputy chief of staff, which was vacated after Oban was named AFP chief. Oban succeeded retired general and now immigration chief Ricardo David Jr., who left the service last month. Sources revealed Philippine Fleet commander Rear Adm. Jose Luis Alano of the Philippine Military Academy (PMA) Class ’79 might be named deputy chief of staff, the third highest position in the AFP. If Alano, a Navy officer, is appointed deputy chief of staff, the top three positions in the AFP would be distributed evenly to the three major services. Oban is an Air Force general while vice chief of staff Lt. Gen. Reynaldo Mapagu Jr. is from the Army. Officers who are due for retirement include Northern Luzon Command chief Lt. Gen. Gaudencio Pangilinan and deputy chief for logistics Commodore Teddy Pan. Both will bow out of service in July. Leadership changes are also expected among the Army divisions since the movement of some officers would create vacancies that should be filled.

Class ’78 member Maj. Gen. Vicente Porto, commander of the Capiz-based 3rd Division, will hang up his uniform on April 5. On the other hand, Maj. Gen. Josue Gaverza has just assumed as chief of the 9th Division based in Camarines Sur, replacing retired Maj. Gen. Arthur Tabaquero. – With Alexis Romero

MANILA, Philippines – How much budget does a police station need to keep operations in full steam and be able to respond quickly to law enforcement necessities?

Weeding out the ‘ghosts’ in the police roster A new policy for distributing funds for maintenance and other operating expenditures may help rid the PNP of ‗ghost‘ policemen.

There are no hard and fast rules. A police station in Patikul, Sulu will have different operational needs compared to a station located in the heart of Makati City. Interior and Local Government Secretary Jesse Robredo believes, however, that for every policeman assigned to a station, the unit should get at least P1,000 a month for maintenance and other operating expenditures. And he has asked Congress to stipulate this new distribution formula in a special provision in the budget of the Philippine National Police (PNP) for 2011. Robredo‘s proposal made it to the final version of the 2011 national budget. Thus, once operational guidelines are finalized, a police station which has 30 policemen assigned to it, should expect to receive at least P30,000 every month for electricity, fuel, transportation, mobile and landline communications, and other office and operational necessities. Funding field units It‘s a 56-percent increase from the amount the field units are supposed to be receiving the previous year. As of June 2010, the distribution was about P640 per police officer per month, according to Robredo.

If you take into consideration everything that a policeman in the field will need to respond to calls for help, shoot bad guys, call for back-up when necessary and investigate crimes, the fresh funds infusion are still clearly not enough. If you spend half of the entire sum on fuel alone, that would mean that the station would have a budget of P500 a day to keep its vehicles running and ready to respond to peace and order emergencies. Not all cops are equipped with two-way radios—which could cost as much as P80,000 per unit. To enable policemen to communicate, the station would probably need to subsidize the mobile phone load of its people. A modest mobile phone allowance of P350 per police officer—equivalent to the cheapest unlimited call service in the market at the moment—would mean a total of P10,500 for a 30-man police station.

The PNP’s bigger budget this year is still not enough, but it gives field units some breathing space This leaves the station with only about P4,500 for electricity, a landline (for receiving calls for police assistance from the public), office supplies and other contingencies. Still, this won‘t be enough. But it is significantly more than what field units have been getting in the past. Some police stations have been receiving as little as P500 a month from the PNP‘s budget for maintenance and operating expenditures, according to a source from the budget department who is privy to the matter. Consequently, most police units have been dependent on the generosity and support of local chief executives to augment ridiculously meager funds and support operations. This is well and good if the mayor or governor is an exemplar of good behavior. TheMaguindanao massacre, however, has amply illustrated problems that could arise if the local police is beholden to local powers. Crame’s share At roughly P69.38 billion, the PNP‘s budget for 2011 is almost double its level half a decade ago. (See Table 1: The PNP’s budget from 2006 to 2011 )

The budget composition, however, remains almost the same. (See: A series of unfortunate events.) Almost 89 percent (roughly P61.55 billion) of the total sum still goes to salaries, wages and other personnel benefits.

PNP budget 2006 to 2011 (data sourced from GAA 2006 to 2011)

The budget for 2011 increased by about P20 billion compared to the previous year. It is the biggest increase the police establishment has had in the past half decade. But bulk of the fresh funds will go to salary increases mandated by the salary standardization law as well as for hiring 10,000 new personnel. Less than 1/10th of (only about 8.25 percent) of the total budget goes to maintenance and other operating expenditures. This includes funding for training, purchase of ammunition, telephone communications, fuel, fuel, electricity, travel and office supplies. Even more minute is the portion of the budget intended for capital outlay, which the PNP needs in order to buy guns, upgrade equipment, modernize its operations as well as put up police stations and headquarters. Ping’s legacy Increased funding is not the only solution to the problem, according to analysts who studied the PNP‘s use of its resources said. Part of the problem, they said, is the fact that headquarters hogs the lion‘s share of meager resources. Consequently, very little trickle down to the field units where they are most needed. Over a decade ago, when he was PNP chief, Panfilo Lacson implemented a policy which prescribed that only 15 percent of police personnel should be assigned to the various headquarters while 85 percent are supposed to be assigned to police stations and other field units. Lacson also had funds for maintenance and other operating expenditures distributed following the same ratio. That policy remains in place up to now, according to Senior Supt. Joevic Ramos of the PNP Directorate for Comptrollership. But this distribution formula is not evident if you look at the budget of the police establishment. (See Table 2: Breakdown of the PNP’s MOOE for 2011) Total MOOE for this year is P5.71 billion—up by almost a billion from P4.8 billion in 2010.

If you strictly follow the avowed policy, then 85 percent of that amount—or about P4.86 billion—should go to the field units. That is not the case at all.

Breakdown of the PNP's budget for MOOE for 2011 (data sourced from the 2011 GAA)

Newsbreak‘s analysis of the line items in the PNP‘s budget shows that bulk of the funds—about P3.7 billion—for maintenance and other operating expenditures is still controlled by the PNP‘s headquarters in Camp Crame. Only about P2 billion of the amount are released directly to the regions. Partly this is because funds for some units, such as the Crime Laboratory, are initially disbursed to mother units quartered in Crame. In the case of the Crime Laboratory, the funds are eventually shared with field units involved in scene of the crime operations in the provinces and cities. Further, some big-ticket items, such as the purchase of ammunitions, are handled centrally in order to avail of economies of scale. Plugging leaks These resources are eventually distributed to field units, Ramos says. But with no clear guidelines on how much certain activities actually need, critics say funds tend to be disbursed at the whim of the generals.

Interior and local government secretary Jesse Robredo

And having an incumbent chief play favorites with his people is not even the main problem. The bigger problem in situations where authority over resources is too centralized, DILG‘s Robredo says, is that such conditions also open opportunities for large-scale corruption. Indeed, like their counterparts in the military, the police top brass have not been immune to controversy. In late 2008, PNP comptroller Eliseo de la Paz and several other colleagues became the subject of investigations shortly after attending an Interpol activity in Moscow. De la Paz, then accompanied by his wife, got briefly detained and interrogated at the Moscow international airport because he failed to declare the 105,000 Euros or P6.9 million in cash that they had in their possession at the time. The incident sparked a probe at the time on the way the PNP has been handling its resources. (Inaction in the so-called Euro generals scandal is cited as one of the basis for the charge of betrayal of public trust currently lodged against Ombudsman Merceditas Gutierrez.)

‘Serious problems are products of a bad system’ More recently, as Congress investigated corruption in the military in the wake of the controversial the plea bargain deal between the Office of the Ombudsman and former military comptroller Carlos Garcia, it was also suggested that the police be investigated as well. Among other things, the issue of an inflated payroll has been raised. (See sidebar: Weeding out the ‘ghosts’ in the police roster) Rather than fish around for possible shenanigans, however, Robredo says he prefers to focus on instituting systemic reforms. ―Serious problems are products of a bad system,‖ he told Newsbreak in an interview. What is needed, he said, is to ―set controls and mechanisms to prevent leakages.‖ The new policy with respect to the distribution of the MOOE funds is one of those. To avoid wholesale corruption, Robredo explained, discretion at the top should be reduced and devolved to the field units. When the new formula is in place, Robredo estimates that centrally managed funds will effectively be reduced by about P458 million. He says he also wants to introduce more transparency into the system.‖ The funds of the station should be posted on the website.‖ Improving morale The new distribution formula is far from perfect. There are other considerations for resource distribution, Ramos pointed out, besides headcount. Among them is the geophysical location of the unit. The living standards and the crime situation in an area also affects cost of operations, he said. ―The needs of a unit in Tipo-Tipo, Basilan, is different from the needs of one located in Makati City.‖

Considering where the PNP was coming from, however, it is a step in the right direction, a budget department insider said. ―In the past, station managers don‘t know what they are entitled to, in terms of MOOE. The second step is to determine just how much it costs to run every type of station.‖ The impression in the field, Robredo explained, is that there is inequity in terms of resource distribution between the Crame and the field units. ―We want police to see that we are taking care of them,‖ Robredo said. The new fund distribution formula, he said, is just one of the reforms they have undertaken towards this direction. There were others. For instance, he said, ―salary savings went to them.‖ Late in 2010, he explained, the police establishment was able to generate P396 million in savings. The amount was taken from the unused portion of the PNP‘s budget for personnel services. This was the first time in years that the police ever received full bonus, he said. ―Dati walang bonus na ganyan.‖ This was made possible, he explained, because the DBM has been releasing salaries based on actual body count, not the total plantilla position. Robredo is hopeful that reforms will eventually translate into better law enforcement. ―Take gasoline for instance,‖ he said, ―if you have more gasoline, then you can improve police visibility as patrol can be more frequent.‖ With additional funds, he said, police at the station level may even be able to acquire small equipment such as two-way radios. This improved capability, in turn, would hopefully translate to improvements in police response to crime. – Newsbreak 

Rvl Gimenez says: March 16, 2011 at 10:44 pm In recent days we‘ve been told that the PNP has bought three choppers. THREE! On a ―minute‖ CapEx budget that is part of an 8+% allotted for operations and maintenance! With so little money available, it can be assumed that these aircraft‘s model is one that‘s racing to obsolence, fast. It is not far-fetched to think that these helos do not have night-flight capabilities, FLIRs, etc. It cannot therefore be of any use at the time of the day when more criminals go on hunt. And, with allocations for fuel and spare parts being ―paltry‖, it is not silly to assume they won‘t be flying very often even at times that their limited techology allows them to fly. It should also be recognized that choppers‘ crews cannot do the actual chase; they can‘t just land where they please. Grunts (ground units) effect arrests. What happens if we have excellently maintained choppers with tanks filled but have cops on the ground with no equipment to communicate with the crews and whose patrol cars are running on fumes? Choppers are nice but, in terms of cost-benefit ratio, they can be more bane than boon.

TV and radio stations in the US (and, perhaps here, as well)have learned that the usefulness of choppers in actual daily operations are pretty minimal; dramatic only in instances that are few and far between. That‘s why they put their helos to administrative uses as much as they deploy them for operations. I know of a prominent local radio network that does not own its aircraft; it outsources its flight needs. There are operational matters that do not play well when half-done. For example, a forward artillery observer can‘t do much if he can‘t communicate with the artillery or if the artillery cannot respond for lack of ammo. A scout may have gathered intel well but what he has will be useless if he is unable to relay it to appropriate units or if the appropriate units cannot respond due to deficiencies in equipment and supplies. These examples may sound a huge stretch but ask the US Green Berets that went to Panama in 1989. One of them had to use his cellphone to call his wife at home (back in CONUS) for air support from planes aboard an aircraft carrier lolling on the waves off the coast of Panama! The wife had to call the Pentagon in Washington, D.C.! Naval communications used a different frequency from that of the army and no one took notice of that until after the forces had landed! The devil is often indeed found in the details but it too resides in ill-defined doctrine that results in cut-and-paste strategies and tactics that invite haphazard materiel acquisition. reply

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brianitus says: March 19, 2011 at 11:03 am I‘m glad that Robredo is getting his hands dirty. I like that he prefers to do things rather than drag an entire media crew to announce that he is planning to do something for the PNP. And they still haven‘t fired Usec. Puno? Tsk tsk.

AFP hails P4.9-B budget release for modernization Published : Thursday, September 08, 2011 00:00 Article Views : 176 Written by : William B. Depasupil

THE Armed Forces of the Philippines (AFP) said Wednesday the P4.95 billion released by the budget department for its modernization would boost its capability in fulfilling its mandate to the nation. “With this development, the AFP would be more capable and responsive in its mission of protecting the people and the national territory,” the acting AFP spokesman, Col. Arnulfo Marcelo Burgo, said. Burgos said the amount would facilitate the purchase of additional defense equipment essential in strengthening the capability of the AFP to defend the country’s territory and its vas natural and marine resources. The P4.95 billion was in line with the five-year P40 billion modernization of the AFP. The AFP deputy chief of staff for plans and programs, Brig. Gen. Roy Deveraturda, said that the P4.95 billion is still P3.05 billion short of the promised P8 billion that should be provided years for the military modernization in the next five years. However, Deveraturda said, the amount is subject to adjustment in future fund releases by the budget department so as to complete the P40 billion for five years. “The P3 billion might be taken from other sources, if not then maybe future programming or future year

GAA (General Appropriations Act) must adjust or other sources must adjust, but on the average you should have at least P8 billion to complete the P40 billion requirements on the medium term plan,” he added. Deveraturda explained that the amount released for modernization is part of the total budget allocated to the AFP. He also expressed confidence that the government would comply and even increase the allocation for modernization if the country’s economic condition would continue to improve. “If the economic condition would turn out good and that’s the reality, there is a possibility that the amount allotted for the modernization program would be revised. That figure is not written on granite, if might be increased,” he said. Earlier , Budget and Management Secretary Florencio B. Abadannounced that President Benigno S. Aquino has directed the release of P4.95 billion to enhance the AFP’s capability to secure the territory of the Philippines. “The P4.95 billion will fund necessary capability requirements of AFP in its territorial defense operations, including providing a strong security perimeter for the Malampaya Natural Gas and Power Project,” he said. “We are ensuring that each and every peso spent by the AFP will directly result in better equipment and other operational support for our men-and-women in uniform,” he added. The amount is divided between the capability requirements of the Philippine Navy and Philippine Air Force. Of this amount, P2.65 billion will fund base support and logistic system, coast watch requirements; and the acquisition of a high-endurance cutter sea vessel and three helicopters of the Philippine Navy. Meanwhile, the Air Force will be using P2.30 billion to purchase three helicopters and develop a basehangar.

Budget cuts blamed for state universities' lower rankings 

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Wednesday, September 7, 2011 MANILA -- No Philippine university was able to make it to the top 300 schools in the world because its state-funded schools had to endure budget cuts, an education official said on Tuesday. But scarce funds is just one of various reasons why the country's premiere state university--the University of the Philippines-incurred lower rankings in a study conducted by a London-based education and career organization. Have something to report? Tell us in text, photos or videos. Budget cuts that had to be borne by UP and other state universities and colleges (SUCs) have affected their operations, lawyer Julito Vitriolo, Commission on Higher Education executive director, said on Tuesday.

He made these remarks on Tuesday after Quacquarelli Symonds (QS) World University Rankings 2011 released its results, which indicated that University of the Philippines and several other leading Philippine universities such as the Ateneo De Manila University, De La Salle University and the University of Sto. Tomas fell from their previous rankings. The list was topped by the United Kingdom's Cambridge University, followed by other prestigious universities such as Harvard University (US), Massachusetts Institute of Technology (US), Yale University (US), and Oxford University (UK). The University of the Philippines, which ranked 314th last year dropped 18 spots this year as it now ranked 332nd. Ateneo de Manila University, meanwhile, which almost entered into the top 300 list last year, now slipped from 307th to 360th place. Two other Philippine universities that fell farther down the list were De La Salle University dropping from the 451-500 bracket last year to the 551-600 bracket this year. The University of Santo Tomas, which is now down to the 601 plus bracket from the 551-600 bracket last year. However, Viriolo said the QS ranking may not be an accurate picture of the supposed deterioration of the quality of the country's college education. Neither should it be a measure of school performance. Besides seeking additional funds for state-funded educational institutions, Vitriolo also called on private school owners to pour in more investments and improve the quality of their research outputs to make local schools more globally competitive. Vitriolo said that although the QS ranking is not reflective of the condition of education and performance of schools in the Philippines, "this should serve as a wakeup call." Vitriolo's sentiments were echoed by a Palace official who said that the rankings "should serve as a wake-up call" to every educational institution. "I think it's a wakeup call for the whole country. This is not something new. It's happened over the last several years and the DepEd (Department of Education) since it came in has said two things: we want to improve access and we want to improve the quality of education that our universities provide. So DepEd and (Commission on Higher Education), I think, are fully aware of the problems," Presidential Communications Development and Strategic Planning Secretary Ramon Carandang said. Hundreds of students recently staged protests over the Aquino administration's budget cuts in state universities and colleges (SUCs). In the proposed national budget for 2012, state universities and colleges (SUCs) will lose about P500 million due to the P1 billion combined budget cut for 97 SUCs in 2010.

Carandang said he sees no need for the President to give particular instructions when it comes to improving the quality of education in the country. He said the President will leave it to the education departments to address the problem. "President Aquino ultimately wants to create an economic environment where people can have jobs; where jobs are available and they’re plentiful and they can be filled by our own people," he said. In a separate report, Manila Auxiliary Bishop Broderick Pabillo and Senator Aquilino Pimentel III supported calls of party-list group, Kabataan, and other national youth groups in calling for a higher budget for SUCs next year. "The support of Bishop Pabillo and Senator Koko will definitely intensify the impulse of the people’s campaign to save our public universities from utter destitution. We hold in high esteem their solidarity with the fight of our SUCS for a sufficient budget in 2012," a statement released by the office of Kabataan party-list Representative Raymond Palatino said. Of the affected SUCs, worst hit was University of the Philippines and the Philippine Normal University (PNU). UP Student Regent Krissy Conti said the UP System's budget next year decreased by 200 million to P5.54 billion from this year’s P5.75 billion. The allocation constitutes only 32 percent of the University of the Philippines’s budget proposal of P17.07 billion. On the other hand, PNU would saw its funding taking another P12.835 million cut next year on top of the P91.35 million this year. (AH/Jill Beltran/Sunnex)

Senators question DILG’s P1.5B budget for potable water supply By Maila Ager INQUIRER.net 12:15 pm | Monday, September 5th, 2011 1share27 23

MANILA, Philippines — Senators on Monday questioned the proposed P1.5 billion budget next year of the Department of Interior and Local Government (DILG) for potable water supply in waterless areas in the country. It was Senator Panfilo Lacson who pointed out during the budget deliberations of the Senate finance committee about the DILG’s budget for the water supply. “Kasama ba ito sa mandate (ng DILG)?” Lacson asked DILG Secretary Jesse Robredo, who was defending the agency’s budget. Robredo explained that the budget was originally under the office of the Local Water Utilities Administration, which was later transferred to the Department of the Health, and to the DILG.

“Last year, the waterless town funding was with the DOH and the DOH feels that it’s better implemented by the LGUs (local government units)…They agreed to transfer it to the DILG,” he said. “But isn’t it the expertise is in the LUWA, not in the LGU?” Senator Franklin Drilon asked. “If you said it’s originally with LUWA, we can understand the reallocation to the DOH and now to the DILG because of the chairman before who bought (a bank) and (invested) several millions of LUWA funds. But the chairman is no longer there. So why don’t we follow the mandate of the agencies rather than the personalities involved?” he further asked. Drilon was referring to former LUWA chairman Prospero Pichay, who was placed under preventive suspension for his alleged questionable purchase of 60 percent outstanding capital stock of the Express Savings Bank, Inc. (ESBI). But Robredo explained that LGUs were doing capacity building to perform the task. “What capacities are required by the LGUs so that they can have a water system in their jurisdiction. Ano ang kelagang ituro sa mga local officials para magkaroon sila ng local system sa kanilang lugar?” asked Senator Ferdinando “Bong-Bong” Marcos Jr. Drilon agreed, saying there was no need to spend again for the training of people when the expertise can already be found in LUWA. “Why are we again allocating so much funds, and again train the LGUs where the capacity is already found in another agency?” Drilon further asked.   Tyopando 2 days ago 

Its good the senators noticed this.... pero hindi po si Sec. Robredo ang nag re-allocate ng budget ng LWUA papunta sa DILG..... Masyado lang takot ang gobyerno na mahawakan ni Mr. Prosperous ang budget na ito kaya inilipat sa DILG..

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 KuyaDikongMakabayan 2 days ago 

syempre, yan ay para me manakaw sila governor, congressman, mayor atbp. simpleng sistema para magkaroon ng kukunan ng kita...kalokohan ng mga lgu

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 edsa1986 2 days ago 

Why not form water districts in these areas and let the institutional development handled by LWUA? Is there a need for a transition for DILG to handle capacity building of LGU's first. Besides, does DILG have this capability? It is a waste of money for DILG and LGU personnel to undergo training when the expertise can already be found in LWUA as the senators had pointed out. As experiences and studies in the past had shown LGU's are inefficient in running water supply systems as they are vulnerable to political pressures and patronage. What this government should do is to cleanse LWUA of Pichay's cohorts still holding key positions. The government's water supply program would be better-off at the hands of LWUA (minus of course Pichay's cohorts) than at the hands of DILG and the LGU's.

  bloodline_of_heroes 2 days ago

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I'm working with the water supply projects. First you need to understand the background why they tend to transfer the funds to DILG from DOH and LUWA. And you need to understand also the the beneficiary of these projects were LGUs in which the sustainability of this water projects laid on them. LUWA in the other hand focus on water districts, but the new projects (1B in cost) were LGU managed and there were capacity strengthening before it transformed into water districts. Now which government agency has the capacity to monitor and implement the project with proper coordination with LGU? DILG of course. It is already been studied from the start.

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DiegoDelFiero liked this Like Reply

 mega chat 2 days ago 

our senators don't know that potable water projects have been funded before by at least 2 countries, and DILG was the main partner, with the different water agencies coordinating together. these are successful projects. hope DILG will be able to explain these past projects well so that the senators will understand the achievements. so that they won't be in the dark.

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 isko daya 2 days ago 

Water programs and electricity concerns needs to be placed in one department because they are related in one way or the other. A mini-dam can produce electricity, irrigation, and supply water.While electricity right now is running short. Go to Surigao del Sur and Davao Oriental and you will experience daily brown-outs yet big rivers are just nearby where dams can be contructed for various purposes. The DILG has nothing to do with water supply. It is not among their expertise. Give the project to the right agency. Don't do jobs for the sake of politics! My god!

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 bullycat88 2 days ago 

gusto lang sumawsaw ni robredo sa projects ng lgu kasi gusto mag senador sa 2013. obvious diba?

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 edsa1986 2 days ago 

The good senators are right. Water supply systems used to be run by local governments were found to be inefficient hence the formation of the LWUA-Water District concept. But before giving the money to LWUA an accounting of previous money (more than P1billion) for the same project for waterless areas released and implemented by LWUA during the term of Pichay should be done. The projects were overpriced and bidding rigged infor large amount of kick-backs. While, Pichay is no longer in the agency, many key officials in cohort with him are still with the agency. Also, the Pinoy should review the performance of his appointees to the agency. Why is it that up to now no charges are filed against previous officials?

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 Herbert 2 days ago 

DILG naman kasi, pag mangungurakot kayo, hatian nyo ang mga senatong. Ok?

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 Pablo Juan 2 days ago 

That's already a red flag.. doing something that's not in their jurisdiction. Include the batanes budget in that questionable budget item as well. Are these people just making these budgets up? At this rate, 4 years down the road we'll have another investigation like what's happening right now.

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olons criticize health budget cut By Lira Dalangin-Fernandez INQUIRER.net First Posted 18:17:00 09/13/2010 Filed Under: State Budget & Taxes, Health

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MANILA, Philippines?Lawmakers on Monday decried the slash in the budget of the Department of Health(DOH), which they said would affect the delivery of service of many public hospitals in the country. Minority Leader and Albay Representative Edcel Lagman noted the reduction in the budget of East Avenue Medical Center, Quirino Memorial Center and the Amang Rodriguez Medical Center. Lagman asked Health Secretary Enrique Ona to explain the cuts in the budget of these hospitals when there is an overall increase in the department?s appropriation for 2011. Appearing before the hearing of the committee on appropriations Monday, Ona presented a P32.7 billion proposed outlay for 2011, which he said is P7.5 billion higher than the department?s budget this year. But Nueva Vizcaya Representative Carlos Padilla and partylist Representative Teddy Casino of Bayan Muna and Emmie de Jesus of Gabriela said DOH?s budget was in fact slashed. He said the purported increase was for the Local Water Utilities Administration (LWUA) and for Philhealth coverage of indigent families, whose supervision are now placed under the DOH. "Compared to the 2010 total allocation for the health sector, the proposed budget for 2011 is lower by P1.4B, from P40B in 2010 to only P38.6B in 2011. This in itself belies what the President said in his budget message about increasing the health budget," Casino said in a statement. According to Casino, capital outlay for the 12 major hospitals under the DOH and 55 public hospitals nationwide have been removed and lumped together in a lump sum for use at the discretion of the Secretary. Maintenance, Operating and Other Expenses (MOOE), which is the lifeblood of public hospitals, have been substantially reduced, sometimes at more than 50 percent, he added. A closer scrutiny of the DOH budget also revealed that the budget for specialty public hospitals, like the Lung Center, Kidney Center and Heart Center was slashed by P970.6M. Even the budget for Philhealth premiums for indigents, which stood at P5.17B in 2010, was slashed by more than a billion to only P3.5B for 2011, Casino added. Casino also noted significant decreases in the budgets for "Subsidy for Indigent Patients for Confinement or Use of Specialized Equipment (P36M to P16M), "Operations for Health Centers for Health and Development" (P2.5B to P2.27B), and "Family Health Including Family Planning" (P1.4B to P931M). "Given all the 'slash and burn' going on in the health sector budget, I am very much worried that the state of public health under the Aquino administration will be much worse," he said. De Jesus said the budget proposed for the DOH for 2011 is ?wanting in both quantity and quality.? ?DOH is mistaken in its premise that this measly budget will enable it to fulfill its obligation to provide much needed and life-saving health services for the more than 70 percent of our populace that cannot even afford antibiotics, pay for x-ray and other laboratory exams,? she said. De Jesus said the government should augment budget of the 12 DOH public hospitals by P1 billion each and the outlay of the 55 regional hospitals by P500 million each.