VII.1 Results and Strategic Framework on Social Development

Upholding transparency and citizen engagement

• Engaging the public through the CSOs in government affairs o CSO participation in the bottom-up budgeting (BUB) to determine the needed services at the grassroots level o Training of poor communities to design, implement and manage local projects through the enhanced KapitBisig Laban sa Kahirapan-Comprehensive and Integrated Delivery of Social Services (KALAHI-CIDSS) o Expansion of KALAHI-CIDSS to National Community-Driven Development Project in 2014, increasing community beneficiaries from 48 to 58 poorest provinces comprised of 847 municipalities. o joint audits by COA and CSOs of select infrastructure projects through the citizens participatory audit (CPA) • Enhanced public access to government information using technology o National Government Portal (www.gov.ph) serves as the main platform for publishing official government documents o Open Data Portal (data.gov.ph) provides public access to government information databases of various government agencies o Expanded use of the PhilGEPS online portal increased government savings from Php29.93 million in 2010 to Php65.17 million in 2014 • Strengthened control and accountability in government operations o Establishment of the Treasury Single Account in 2013 to consolidate the bank accounts of NGAs and selected GOCCs, allowing the government to better manage and monitor its funds and debt, facilitate more accurate accounting and reduce transaction cost while increasing interest earned. o Piloting of the Cashless Purchase Card System in the DBM and DND eliminated petty cash advances and payments during procurement and recorded transactions in realtime on a secure web-based platform Source: Office of the President (2015)

Social/Human Development and Poverty Alleviation

Figire VII.1. Results and Strategic Framework on Social Development

Source: Philippine Development Plan 2011-2016 Midterm Update

The Performance of the Aquino Administration (2010-2016) As gleaned from Fig. VII.1, the PNoy administration’s flagship programs to achieve human development and reduce poverty were: (1) Pantawid Pamilyang Pilipino Program (4Ps, Conditional Cash Transfer); (2) Universal Philhealth Coverage (Financial Risk Protection); (3) Enhanced Basic Education (K-12 program); (4) Comprehensive Agrarian Reform Program; and (5) Housing program for informal settler families in danger areas.

Economic Development

To achieve the overarching goal of inclusive growth, the PNoy government laid down the conditions for a stable macroeconomic environment that is conducive to sustaining a higher growth path. For fiscal policy, the main task was to expand the narrow fiscal space and to get on a sustainable revenue-and-spending path. For monetary sector and external sector policies, this meant commitment to low and stable inflation conducive to balanced and sustainable growth and reduced external vulnerabilities (NEDA, 2011, p. 19).

Reform measures to improve tax administration included the following: 1. Establishing a tax registry comprehending all taxpayers; 2. Using comprehensive third-party data to determine the potential tax base; 3. Maintaining a transparent and productive tax audit program; 4. Fully staffing the BIR and BOC with competent and adequately trained personnel; 5. Formulating transparent and consistent tax rulings; 6. Revitalizing the RATE, RATS and RIPS programs of government; 7. Establishing appropriate performance standards and evaluation; and 8. Instituting a more effective system of rewards and penalties under the Lateral Attrition Law backed up by performance standards. (NEDA, 2011. p.19)

To complement the efforts to improve tax administration and to ensure that revenues are adequately protected, priority policy reforms need to be instituted, through: the rationalization of the fiscal incentives system and the enactment of a fiscal responsibility law (NEDA 2011, p. 20)

Peace and Security

A stable national security environment is crucial in achieving development, human security and general welfare. Thus, effective strategies that would ensure the attainment of peace, public order and safety through the cessation of armed conflict and prevention of crimes were continuously identified and pursued as key thrusts of the Aquino administration along “peace and security”. Among these strategies were:

1. Winning the peace through a negotiated political settlement of all armed conflicts through: a. Resumption and completion of negotiations with the MILF and CPP-NPA-NDF, respectively; b. Completion and implementation of signed final closure agreements with the CPLA (1986) and the Rebolusyonaryong Partidong Manggagawa-Pilipinas/Revolutionary Proletariat Army/Alex Boncayao Brigade (RPM-P/RPA/ABB) (2000), respectively; c. Adoption and implementation of actions agreed upon in the Tripartite Implementation Review of the 1996 Final Peace Agreement with the MNLF; d. Final disposition of arms of the abovementioned armed groups and mainstreaming of former rebels as productive members of society, in accordance with peace agreements; and e. Establishment of mechanisms for a participatory and accountable peace process.

2. Complementary Track to address the causes of conflict and issues affecting the peace process through: a. Focused development in conflict-affected areas through the PAMANA “Payapa at Masaganang Pamayanan” Program; b. Support efforts to end impunity and extra-judicial killings through decisive action of the government in dealing with grave human rights violations as well as political or election-related violence; c. Support the indigenous peoples’ agenda which includes, among others, professionalizing the service bureaucracy; the review of Certificate of Ancestral Domain Titles (CADTs) issuances; delivery of basic services and review/redress IPs in conflict areas; and realization of the Indigenous Peoples Masterplan (IPMAP) 20112016, with particular stress on Human Rights Protection of IPs;

d. Support an affirmative action agenda for Muslims, including the development of a halal industry, institutionalization of the Hajj management system, establishment of economic and financial mechanisms, such as Islamic banking and microfinance, speedy resolution of cases involving children and women languishing in jails, putting an end to discriminatory practices in work places, and the establishment of Shari’ah courts; e. Support the enhancement of ARMM governance, including greater accountability to citizens living in remote and poorest areas; f. Address the needs of children in situations of armed conflict by setting up an effective mechanism to monitor, report and immediately respond to the identified seven grave child rights violations in conflict situations, namely: recruitment and use of minors by armed groups, killing and maiming, abduction, denial of humanitarian assistance, rape and sexual abuse, and attacks on schools and hospitals (NEDA, 2011 pp. 291-297).

budgET AlloCATion And ExpEndiTuRE

The financial narrative of the Aquino administration reflects his budget reform that carries the theme “Tungo sa Paggugol na Matuwid” (Towards Correct Spending). This theme conveys the government’s aspiration “to put public spending back on the right track towards prudence and effectiveness” (DBM, 2012).

According to the government’s primer, “Paggugol na Matuwid” means “each and every peso spent by government counts in empowering the people and in building a prosperous nation.” “Empowering the people” and “building a prosperous nation” mean that

In this quest for “Paggugol na Matuwid,” the government will escalate the reforms it already began, towards ensuring that public spending leads to direct, immediate and substantial benefits for various marginalized sections of society: students deprived of free and quality basic education, patients urgently needing proper health care facilities in the countryside, farmers without access to effective irrigation and postharvest facilities, and millions of other Filipinos who have been sinking in joblessness, poverty and hopelessness for so long.

… Public spending thus should veer away from waste and irrelevance, and focus it on key priorities in line with President Aquino’s Social Contract with the Filipino People. In other words, “Paggugol na Matuwid: Diretso sa Tao.”

Based on the expenditure allocation of the Aquino budget from 2011 to 2016 (and 2017) (see Table VII.2), Social Services such as education, health, social welfare and employment, among others, continue to get the biggest share of the national budget. The economic services sector follows next to fund major services in agriculture and agrarian reform, communications, roads, and other transport. The rest of the budget pie goes to debt burden, general public services and defense (Figure VII.2).

Table VII.2. Budget Expenditure by Source Funding, 2011-2017 Particulars 2011 2012 2013 2014 2015 2016 2017

Economic Services 433,852,443 486,686,774 553,745,789 605,912,555 694,304,157 803,179,193 827,345,253

Social Services 530,375,222 559,760,095 669,392,483 807,345,964 783,676,531 1,029,170,226 1,204,863,656

Defense 77,787,336 74,370,645 89,539,190 92,850,161 97,518,710 115,761,761 132,888,789

General Public Services 322,403,358 363,977,549 454,778,661 465,926,591 503,447,473 561,171,039 624,806,295

Interest Payments 357,080,000 325,739,690 356,767,610 376,055,750 313,368,650 417,105,470 357,007,270

Financial Services 7,436,491 13,351,070 16,293,831 7,409,381 198,745,000 261,903,213 83,666,201 TOTAL 1,728,944,850 1,823,885,823 2,140,517,564 2,355,500,402 2,591,060,521 3,188,290,902 3,230,577,464 Sources: DBM (2011, 2014, 2017)