Philippine Institute for Development Studies Surian sa mga Pag-aaral Pangkaunlaran ng Pilipinas
Policy Notes ISSN 1656-5266
No. 2007-08 (December 2007)
Risks and opportunities in securing increased resources for MDGs at the national level Rosario G. Manasan
I
n a recent assessment of the Philippines’ rate of progress toward the achievement of the Millennium Development Goals (MDGs), it shows that for all of the seven quantifiable MDGs, there are certain aspects in each where the country has to do better than its historical performance to date. For instance, as summarized in Table 1, the assessment shows that vis-à-vis the rate of progress required for the period 2005–2015 if the MDG targets are to be met, the average current rate of progress to date is sufficient to meet the goals for the following by 2015: z reduction of poverty,1 z reduction in infant mortality and under-5 mortality rates, z reduction in HIV/AIDS prevalence, and z increase in access to sanitary toilet facilities
but falls short2 for the following goals: z reduction of under-5 malnutrition rate, z increase in per capita dietary energy intake requirement, z reduction in malaria morbidity, z increase in access to safe drinking water, z increase in elementary participation rate, z increase in elementary cohort survival rate, z increase in gender equality in education, ______________ 1 The 2015 target for subsistence poverty has already been reached in 2003. 2 The Philippines Midterm Progress Report on the MDGs (2007), however, notes that the gap between the required rate of progress and the actual rate of progress to date with respect to the first four of these targets is not so large such that the 2015 targets for these indicators are still likely to be met.
PIDS Policy Notes are observations/analyses written by PIDS researchers on certain policy issues. The treatise is holistic in approach and aims to provide useful inputs for decisionmaking. This Notes is based on PIDS Discussion Paper Series No. 2007-06 titled “Financing the Millennium Development Goals: the Philippines” by the same author. The author is Senior Research Fellow at the Institute. The views expressed are those of the author and do not necessarily reflect those of PIDS or any of the study’s sponsors.
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Table 1. Philippine MDG rate of progress at the national level
MDG Goals and Targets
Baseline (1990 or year closest to 1990)
Eradicate extreme poverty and hunger A. Proportion of families below
current level (2005/2006 or year closest to 2005/2006)
Target by 2015
Average Rate of Progress (1990-2005/06 or year closest to 2005/06) (a)
Required Rate of Progress (2005/20062015)
Ratio of Probability Required of Rate to Attaining Average the Rate to Targets
(b)
(I = b/a)
20.40
10.20 (2003)
10.20
-0.85
0.00
0.00
High
39.90
24.40 (2003)
19.95
-1.29
-0.37
0.29
High
Subsistence threshold a/
24.30
13.50 (2003)
12.15
-0.90
-0.11
0.13
High
Poverty threshold a/
45.30
30.00 (2003)
22.65
-1.28
-0.61
0.48
High
34.50
24.60 (2005)
17.25
-0.66
-0.74
1.11
High
69.40
56.90 (2003)
34.70
-1.25
-1.85
1.48
High
100.00
Subsistence threshold a/ Poverty threshold a/ B. Proportion of population below
Prevalence of malnutrition among 0-5 year-old children (%underweight) Based on international reference standards b/ Proportion of households with per capita intake below 100 percent dietary energy requirement b/ Achieve universal primary education
85.10
c/
84.44 d/ (2005-06)
-0.05
1.37
28.98
Low
Elementary cohort survival rate
68.65
c/
69.90 d/ (2005-06)
84.67 k/
0.09
1.48
16.54
Low
Elementary completion rate
66.50
c/
67.99 d/ (2005-06)
81.04 k/
0.11
1.30
12.26
Low
209.00
e/
162.00 f/ (2006)
52.20
-3.62
-12.20
3.37
Low
40.00
e/
50.60 f/ (2006)
80.00
0.82
3.27
4.01
Low
80.00
g/
32.00 f/ (2006)
26.70
-3.00
-0.59
0.20
High
57.00
g/
24.00 f/ (2006)
19.00
-2.06
-0.56
0.27
High
Elementary participation rate *
Improve maternal health Maternal mortality ratio Increase access to reproductive health services Prevalence rate of men and women/couples practicing responsible parenthood Reduce child mortality Under 5-mortality rate (per 1,000 live births) Infant mortality rate (per 1,000 live births) Combat HIV and AIDS, Malaria and other Diseases HIV prevalence Malaria morbidity rate (per 100,000 population)
h/
<1%
<1% (2005)
<1% l/
0.00
0.00
0.00
High
123.00
59.00 (2004)
24.00 l/
-4.57
-5.83
1.28
High
Ensure environmental sustainability Proportion of households with access to safe drinking water
73.70
i/
80.20 (2004) j/
86.80 l/
0.50
0.60
1.20
High
Proportion of households with sanitary toilet facility
67.60
i/
86.20 (2004) j/
83.80
1.33
-0.22
0.17
High
Rate needed to reach target/current rate of progress <1.5 High; 1.5 to 2.0 Medium; >2.0 Low Sources: a/ TC on Poverty Statistics (former TWG on Income Statistics, NSCB); b/ National Nutrition Survey (NNS), FNRI; c/ DECS Statistical Bulletin SY 1991-1992; d/ DepEd-Basic Education Information System (BEIS); e/ 1993 National Demographic Survey, NSO; f/ 2006 Family Planning Survey, NSO; g/ National Demographic and Health Survey (NDHS), NSO; h/ Field Health Service Information System-DOH; i/ 1990 Census of Population and Housing, NSO; j/ Annual Poverty Indicator Survey, NSO; k/ Target in the Philippine EFA 2015 Plan; l/ Target by 2010 based on the MTPDP, 2004-2010. * Beginning SY 2002-2003, participation rate was derived based on the age group consisting of 6-11 years old for elementary and 12-15 years old for secondary whereas the previos system used 7-12 and 13-16 years old for elementary and secondary, respectively.
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z
reduction in maternal mortality rate, and z increase in contraceptive prevalence rate. Given this perspective, it is critical that the Philippines exercises greater vigilance and exerts more effort in addressing the risks and taking advantage of the opportunities toward increasing the aggregate amount of resources available for achieving the MDGs. These risks and opportunities relate to: z increasing government revenues in the aggregate; z increasing the allocation of resources for MDG-related programs and projects by improving both intersectoral and intrasectoral allocation; and z identifying ways of getting a bigger “bang for the buck.” Without adequate funding support, the achievement of the MDGs, particularly those in which the Philippines is lagging behind, may not be likely. It cannot be denied that financing does not automatically translate into outcomes. However, while financing may not be a sufficient condition, it is, to a large extent, a necessary condition for the attainment of the MDGs. In this sense, securing government’s commitment to provide adequate budgetary support for the MDGs may be seen as an important first step toward the attainment of the MDGs. Size and composition of MDG expenditures in 1996–2006 The Philippines has had to contend with fiscal instability in the years following the Asian
Without adequate funding support, the achievement of the MDGs, particularly those in which the Philippines is lagging behind, may not be likely. It cannot be denied that financing does not automatically translate into outcomes. However, while financing may not be a sufficient condition, it is, to a large extent, a necessary condition for the attainment of the MDGs.
financial crisis. This situation effectively restricted the flow of national government resources aimed at meeting the MDGs. The national government’s fiscal position deteriorated sharply from a small surplus of 0.1 percent of GDP in 1997 to a deficit of 5.6 percent of GDP in 2002, following a severe decline in its tax effort during the period (Table 2). Although some fiscal consolidation was evident in 2003–2006, the improvement in the national government’s fiscal position, particularly in 2003–2005, was largely due to expenditure constriction rather than to a turnaround in tax effort. Moreover, since debt service levels were rigid and remained at fairly high levels, the expenditure adjustment came at the expense of productive expenditures (i.e., total expenditure less debt service). The size of the national government’s debt stock and debt service also continues to be a major cause of concern. It is noteworthy that total revenues of the national government rose from 14.4 percent of GDP in 2004 to 16.1 percent of GDP in 2006. The recovery of the revenue effort of the central government was primarily due to PN 2007-08
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Table 2. National government fiscal position (cash basis) as a percent of GDP, 1996–2006
It is therefore not surprising that the 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 growth in the budgets of many government Total revenues 18.9 19.4 17.4 16.1 15.3 15.5 14.6 14.6 14.4 14.8 16.1 of w/c: agencies was near-zero, Tax revenues 16.9 17.0 15.6 14.5 13.7 13.5 12.8 12.5 12.3 12.7 14.0 if not negative, in 2001–2005. Thus, when Total expenditures 18.6 19.4 19.2 19.8 19.3 19.6 20.2 19.2 18.2 17.5 17.1 of w/c: measured relative to Interest payments 3.5 3.2 3.7 3.6 4.2 4.8 4.8 5.2 5.4 5.5 5.1 GDP, national governSurplus/ (deficit) 0.3 0.1 -1.9 -3.8 -4.0 -4.0 -5.6 -4.6 -3.8 -2.7 -1.0 ment spending in all sectors, with the Total expenditures net exception of debt of debt service 15.1 16.2 15.5 16.3 15.1 14.8 15.5 13.9 12.9 11.9 11.9 service, contracted in 1998–2005. In particular, national government spending in all the the increase in the excise tax rate on sin social sectors combined went down by 2 products in 2005 and the increase in the VAT percentage points of GDP from 5.4 percent of rate from 10 percent to 12 percent in 2006. GDP in 1997 to 3.1 percent in 2005. This is approximately equivalent to the reduction Aggregate NG spending. On an obligation suffered by the economic sectors as a group. basis, the national government (NG) expenditure ratio (or the ratio of total national Despite numerous government policy progovernment spending to GDP) was fairly stable at 19–20 percent of GDP in 1996–2000. nouncements in favor of the social sectors, the social services sectors in the aggregate This ratio exhibited a well-defined downtrend failed to maintain their share in the central starting in 2001, reaching a low of 17.3 government budget. This is largely attributpercent in 2006 as the national government able to the rigidities in the budget brought doggedly pursued its goal to balance the about by high debt service commitments and budget even before progress has been achieved on the revenue side (Table 3). At the the mandated IRA transfers to LGUs. Thus, the share of all the social sectors combined in same time, a high initial debt stock and large total national government expenditures fiscal deficits during the period led to a rise in the debt service from 3.2 percent of GDP in dipped from 27.1 percent in 1998 to 18.0 percent in 2005 (Figure 1). Moreover, real per 1997 to 5.5 percent of GDP in 2005. Consecapita spending in all the social services quently, total national government expendisectors as a group (in 2000 prices) went down tures net of debt service dropped from 17.1 from PhP1,446 in 1997 to PhP1,031 in 2005 percent of GDP in 1997 to 11.9 percent of (Table 4). GDP in 2005 and 12.2 percent in 2006. PN 2007-08
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Table 3. National government expenditures (obligation basis) as a percent of GDP, 1996â&#x20AC;&#x201C;2006
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
19.2
20.3
20.2
19.5
20.3
19.5
19.1
19.1
17.8
17.4
17.3
Total economic services of w/c infrastructure
3.9 2.2
4.5 2.5
3.8 2.4
3.6 2.3
3.8 2.4
3.2 2.0
2.6 1.5
2.7 1.6
2.5 1.6
2.2 1.2
2.7 1.8
Social services
4.9
5.4
5.5
5.2
5.0
4.5
4.4
3.9
3.4
3.1
3.6
Education of w/c DepEd
3.4 2.6
3.9 3.0
4.0 3.1
3.7 2.9
3.5 2.8
3.4 2.7
3.3 2.7
3.0 2.5
2.7 2.2
2.4 2.0
2.4 2.0
Health of w/c DOH
0.5 0.4
0.6 0.5
0.5 0.4
0.5 0.4
0.4 0.3
0.4 0.3
0.4 0.3
0.3 0.2
0.3 0.2
0.3 0.2
0.3 0.2
National defense
1.2
1.2
1.2
1.1
1.1
1.0
1.0
1.3
1.1
1.1
0.9
Public administration
1.6
1.6
1.6
1.2
1.3
1.3
1.2
1.1
1.0
1.3
1.1
Peace and order
1.3
1.4
1.4
1.4
1.4
1.4
1.4
1.4
1.3
1.2
1.1
Debt service
3.5
3.2
3.7
3.6
4.2
4.8
4.8
5.2
5.4
5.5
5.1
Others
2.7
2.9
3.0
3.4
3.6
3.3
3.6
3.5
3.0
2.9
2.9
15.6
17.1
16.4
15.9
16.1
14.7
14.3
13.9
12.4
11.9
12.2
Total NG expenditures net of debt service
MDG expenditures and human development outcomes The adverse impact of the fiscal crisis on the MDG spending by the government is a cause of concern because it appears that the observed decline in real MDG spending per capita of the national government has been accompanied by corresponding stagnation, if not deterioration, in the delivery of some basic social services and certain human
Figure 1. Percent share to total central government expenditures, 1996â&#x20AC;&#x201C;2006 30 25 20 Percent
Total NG expenditures
15 10 5 0 1996
1997
1998
1999
2000
2001
2002
Total Social Services
MDG Expenditures
Basic Education
Basic Health/Nutrition
2003
2004
2005
2006
Basic Social Services
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Table 4. Real per capita MDG expenditure of central government (in 2000 prices) 1996
1997
1998
Basic education Basic health/nutrition Social welfare and development Water and sanitation
1,108.14 62.04
1,333.07 63.25
1,337.41 40.89
24.53 14.74
25.05 24.31
25.60 10.71
25.46 11.61
28.26 12.49
21.08 8.81
Basic Social Services
1,209.46
1,445.68
1,414.62
1,342.45
1,337.10
Pro-poor infrastructure Livelihood Land redistribution
421.83 63.24 88.17
385.66 83.15 44.85
304.08 34.43 82.49
457.61 33.60 58.85
1,782.69
1,959.33
1,835.62
1,892.52
MDG Expenditures
1999
2000
2003
2004
2005
2006
1,142.02 20.87
1,051.33 24.00
975.88 24.59
1,014.67 42.58
22.40 11.27
27.01 1.73
27.11 0.67
29.05 1.52
27.76 8.11
1,275.19
1,276.01
1,191.63
1,103.11
1,031.03
1,093.12
350.22 76.79 59.06
265.82 73.33 43.28
209.24 61.25 48.47
237.42 83.15 9.58
187.52 113.17 43.07
173.65 75.91 38.12
354.42 80.70 22.09
1,823.17
1,657.62
1,594.97
1,521.79
1,446.87
1,318.71
1,550.33
1,256.37 1,248.98 49.02 47.37
2001
1,203.05 1,198.25 42.26 44.09
Figure 2. Education outcomes and basic education spending of central government, 2000â&#x20AC;&#x201C;2006 Education Outcom e
Basic Educ Spending 1,400.0
100.0 90.0
1,200.0
Percent
80.0 70.0
1,000.0
60.0
800.0
50.0 40.0
600.0
30.0
400.0
20.0 200.0
10.0 0.0
0.0 2000
2001
2002
2003
2004
2005
2006
Elem. Level Participation Rate
Sec. Level Participation Rate
Elem. Level Cohort Survival Rate
Sec. Level Cohort Survival Rate
Basic Education Spending
development outcomes. The correspondence between general government MDG expenditures and selected education outcomes and selected health sector outputs is shown graphically in Figures 2, 3, and 4, respectively. This relationship is also evident at the subnational level. For instance, an analysis of division level data for 2005 indicates that a positive and statistically significant relationPN 2007-08
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ship exists between elementary level cohort survival rate, on the one hand, and per student DepEd spending, on the other. In like manner, an analysis of regional level data for 2003 reveals a positive and statistically significant relationship between the number of children given complete immunization and number of mothers given two doses of tetanus toxoid vaccine, on the one hand, and national government spending health, on the other.
Outstanding issues in resource generation and utilization Increasing government revenue In response to the fiscal crisis, Congress has passed three laws that are meant to increase the revenue take of the central government. In late 2004, Congress passed the Attrition Act of 2005 (Republic Act 9335) and a law
7
Percent
Percent
Figure 3. Health outputs and basic health spending of central amending the excise tax on sin government, 1999–2006 products (RA 9334). The Attrition Act Health Output Basic Health Spending of 2005 provides for the creation of 60.0 100.0 90.0 reward and incentives fund in the 50.0 80.0 Bureau of Internal Revenue (BIR) and 70.0 40.0 60.0 the Bureau of Customs (BOC) equal to 30.0 50.0 40.0 at least 15 percent of the difference 20.0 30.0 between their actual collection and 20.0 10.0 10.0 their revenue target. The proceeds 0.0 0.0 1999 2000 2001 2002 2003 2004 2005 2006 will be apportioned to the various % of pregnant women given TT2+ % of lactating mothers given Vitamin A units, officials, and employees in % of fully immunized children under 1 % of children under 1 given Vitamin A Basic Health/Nutrition Spending proportion to their relative contribution to the “excess” collection. It Figure 4. TB and malaria morbidity rate and basic health spending also provides that officials and of central government, 1999–2006 employees of these bureaus may be removed from service if their Basic Health Spending Health Output 250.0 60.0 revenue collection performance 50.0 falls short of the target by at 200.0 least 7.5 percent. On the other 40.0 150.0 hand, RA 9334 provides for 30.0 100.0 discrete increases in the tax rate 20.0 beginning 2005 and every other 50.0 10.0 year thereafter until 20113 on 0.0 0.0 cigarettes (15%-80% in 2005) 1999 2000 2001 2002 2003 2004 2005 2006 and alcoholic products (22% in TB morbidity Rate Malaria Morbidity Rate Basic Health/Nutrition Spending 2005).
In April 2005, Congress then passed another amendment of the National Internal Revenue Code (RA 9337 or reformed VAT law). Among others, it expands the coverage of the VAT to include power and electric cooperatives, ______________ 3 Under the amendment calls, tax rate on cigarettes in 2011 is 34 percent–143 percent higher than that in 2003 while the tax rate on alcoholic products in 2011 is 122 percent higher than that in 2003.
petroleum products, medical and legal services, agricultural nonfood products, and works of art; converts the Philippine VAT system from a “consumption-type” VAT (where producers are allowed to get credit for taxes paid on their inputs including their capital goods purchases) to an “income-type” VAT (where producers are allowed to get credit for taxes paid on all their inputs but the credit on the capital goods purchases is limited only PN 2007-08
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to the depreciated part of capital); reduces the excise tax rate on kerosene, diesel, and bunker fuel; removes the franchise tax on power distribution utilities and domestic airlines and the common carriers tax on domestic shipping; and increases the gross receipts tax (on royalties, rentals of property, real or personal, profits from exchange, and all other items treated as gross income) of banks and nonbank financial intermediaries from 5 percent to 7 percent. In addition, as provided under the reformed VAT law, the President authorized the increase in the VAT rate from 10 percent to 12 percent in January 2006. As indicated earlier, the turnaround in the central governmentâ&#x20AC;&#x2122;s revenue effort in 2006 was primarily due to the increase in the excise tax rate on sin products in 2005 and the increase in the VAT rate from 10 percent to 12 percent in 2006. After the credible performance of the tax collection agencies in 2006, sustained improvement in tax administration has, however, remained elusive despite the passage of the attrition law. The record of the BIR and BOC in meeting their revenue goals has been erratic and frequent
Given the political environment, it is unlikely that new tax measures aimed at generating additional revenues will be passed by Congress in the near to medium term. At the same time, the positive revenue impact of the excise tax amendment and the reformed VAT law is expected to wane in the next two years as both measures have built-in sunset provisions. PN 2007-08
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changes in leadership has not helped any. There are also indications that the very intense focus of the tax collection agencies and the Department of Finance (DOF) on meeting revenue targets may have adverse effects on collection effort in periods other than the very near term. Said focus may have also distracted efforts to institutionalize systematic reforms in systems and procedures. Given the political environment, it is unlikely that new tax measures aimed at generating additional revenues will be passed by Congress in the near to medium term. At the same time, the positive revenue impact of the excise tax amendment and the reformed VAT law is expected to wane in the next two years as both measures have built-in sunset provisions. After the mandated adjustment in excise tax rates on sin products in 2011, they will remain fixed at the 2011 level in nominal peso terms unless Congress passes a new law to the contrary. On the other hand, the reformed VAT law temporarily raised the corporate tax rate but the rate will revert back to its old level after 2009. Needless to say, improvements in tax administration are urgently needed if another fiscal crisis is not to loom its ugly head again. Budget reform initiatives The public expenditure management (PEM) reform introduced by the DBM as early as 2000 augurs well for shifting budgetary resources to MDG-related activities. The PEM shifts the focus of the budget process from
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inputs and rules-based compliance to outputs/ outcomes and results/performance orientation, greater flexibility, transparency, and accountability. The reforms under the PEM have two major strands: the Medium Term Expenditure Framework (MTEF) and the Organizational Performance Indicators Framework (OPIF). The MTEF is a tool for linking policy, planning and budgeting over the medium term. By giving emphasis on the operationalization of a multiyear (e.g., three-year) expenditure perspective, the MTEF injects the future into budgeting, thereby effectively bridging the difference in the time horizon pertinent to planning and budgeting. The MTEF also helps ensure greater predictability in the amount of resources that will be available in the medium term by encouraging the formulation of honest and realistic multiyear forecasts of government revenues. The ability to arrive at good revenue forecasts is premised not only on the existence of technical capacity to formulate the same but also on the executiveâ&#x20AC;&#x2122;s commitment to have a transparent budget process. In order to achieve fiscal discipline, the MTEF calls for the matching of the demand for government spending in the aggregate with the amount of resources that is available. Budgeting thus takes on a more strategic and policy-based approach to resource allocation by ensuring the consistency between resources and aggregate policy commitments.
In order to achieve fiscal discipline, the MTEF calls for the matching of the demand for government spending in the aggregate with the amount of resources that is available. Budgeting thus takes on a more strategic and policy-based approach to resource allocation by ensuring the consistency between resources and aggregate policy commitments.
The Budget Strategy Papers formulated during the preparation of the 2007 budget proposal of the central government, for example, led to the identification of basic education and infrastructure as high priority sectors in the allocation of that yearâ&#x20AC;&#x2122;s budget. In 2008, basic health was added to the high priority list. Meanwhile, the prominence given to performance/results in the budget process under the PEM naturally reinforces the link between the governmentâ&#x20AC;&#x2122;s budgetary allocations, on the one hand, and the goals, policies, strategies and priority programs, projects and activities (PPAs) that are included in its plans, on the other hand. Underutilization of appropriation cover: poor absorptive capacity or inadequate release of funding authority Paradoxically, some of the social sector agencies have not been able to fully utilize their appropriation cover in 2004 and 2005 despite the apparent low budget support for their programs. At this point, it is not clear whether this situation is due to poor absorptive capacity or to the late/nonrelease of either funding authority or cash allocation. PN 2007-08
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allocation.
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The fund utilization rate (i.e., ratio of obligation to allotment) is a good indicator of absorptive capacity. However, the data on hand so far do not include allotment levels by program. Thus, only the ratio of obligation to appropriations could be computed. The obligation-to-appropriation ratio may also indicate absorptive capacity, assuming that allotments are released on time as needed. However, in times when austerity measures are put in place and allotments come in trickles, the low ratios of obligation to appropriations may simply indicate the rationing of allotment/cash releases rather than low absorptive capacity of the implementing agencies per se. Note that the analysis of fund utilization for this study covers 2004 and 2005, years when the national government has had to struggle with fiscal consolidation. In those years, what appear to be problems with utilization may instead indicate problems with release of allotments and Notice of Cash Allocation (NCA). DepEd. Across programs, the following exhibited low utilization rates in 2004: teacher training (less than 1%), support to operations of distance education (76%), support to elementary education (82%), support to physical education (76%), operation of nonformal education for accreditation and equivalency program (75%), operation of medical/dental/ nursing services (76%), school sports (81%), and purchase of armchairs (0.08%). In 2005, the following PN 2007-08
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programs had problems in their utilization rate: support to distance education (56%), support to elementary education (80%), support to physical education (86%), operations of medical/dental/nursing services (61%), hiring of new teachers (47%), operations of science high schools (72%), purchase of armchairs (82%), acquisition of textbooks (78%), creation of principal positions (61%), rationalization of school MOOE, and conversion of Master Teacher Position (7%). DOH. The following public health programs exhibited low utilization rates in 2004 and 2005: Essential National Health Research (67% in 2004 and 62% in 2005), provision of drugs and medicines to collaborating units for emergencies (62% in 2004 and 73% in 2005), regulation of food and drugs (49% in 2005), regulation of health facilities and services (45% in 2005), regulation of health devices and technology (44% in 2005), quarantine services (75% in 2005), local health systems development (81% in 2004 and 38% in 2005), disease surveillance (80% in 2004 and 38% in 2005), TB control (87% in 2005), malaria control (60% in 2004 and 40% in 2005), schistosomiasis (50% in 2004 and 40% in 2005), prevention and control of other communicable diseases (77% in 2004 and 85% in 2005), family planning (40%â&#x20AC;&#x201C;43% in 2005), family health and primary health care (76% in 2004), environmental health (61% in 2005), other population initiatives (59% in 2004 and 37% in 2005), and health promotion (59% in 2004 and 33% in 2005). Likewise, health care assistance (59% in 2004 and
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Table 5. Percent distribution of PDAF allocation of members of Congress
Education Elementary and high school Health Basic health Hospital PhilHealth Medical assistance Social Welfare and Development Infrastructure Roads and bridges Water Supply Other Structures Others Total PDAF (in million pesos) Memo Item: MDG programs (%)
2003
2005
9.9 7.2 7.2 0.3 3.8 0.0 3.1 6.4 7.2 4.6 0.9 0.7 67.8
12.4 7.7 5.9 0.3 0.4 0.8 4.5 15.5 6.5 4.5 1.1 2.1 56.1
6,167.94 22.3
5,322.9 34.3
33% in 2005), social health insurance (62% in 2004 and 35% in 2005), and provision of drugs and medicines for collaborating centers (62% in 2004 and 73% in 2005) also had low utilization rates. Given significant levels of unmet needs in the public health arena, the underlying reasons for these low utilization rates should be addressed in the implementation and should not automatically be used as a justification for a cut in future funding. PDAF allocation of members of Congress In 2003, PhP6.2 billion was obligated as part of the Priority Development Assistance Fund (PDAF) allocations of members of Congress. In 2005, the aggregate PDAF allocation was
Given significant levels of unmet needs in the public health arena, the underlying reasons for these low utilization rates should be addressed in the implementation and should not automatically be used as a justification for a cut in future funding.
equal to PhP5.3 billion (Table 5). Out of these amounts, MDG programs captured 22 percent and 34 percent of total PDAF allocations, respectively, in these years. Clearly, there is scope for some reallocation in favor of MDG programs in the use of the PDAF. Concluding remarks As indicated in the foregoing analysis, there are clearly a number of opportunities in raising additional resources to be committed for the attainment of the MDGs. At the same time, the risks of not being able to fully tap their potentials are also real. What is therefore important is to have the proper political will and commitment to raise these resources and channel them to achieve the MDG targets.
For further information, please contact The Research Information Staff Philippine Institute for Development Studies NEDA sa Makati Building, 106 Amorsolo Street, Legaspi Village, 1229 Makati City Telephone Nos: (63-2) 894-2584 and 893-5705 Fax Nos: (63-2) 893-9589 and 816-1091 E-mail: rmanasan@pids.gov.ph; jliguton@pids.gov.ph The Policy Notes series is available online at http://www.pids.gov.ph. Reentered as second class mail at the Business Mail Service Office under Permit No. PS570-04 NCR. Valid until December 31, 2007. PN 2007-08
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Discussion Papers released in 2007 DP 2007-01 DP 2007-02 DP 2007-03 DP 2007-04 DP 2007-05 DP 2007-06 DP 2007-07 DP 2007-08 DP 2007-09 DP 2007-10 DP 2007-11 DP 2007-12 DP 2007-13 DP 2007-14 DP 2007-15 DP 2007-16 DP 2007-17 DP 2007-18 DP 2007-19 DP 2007-20 DP 2007-21 DP 2007-22 DP 2007-23 DP 2007-24 DP 2007-25 DP 2007-26
The LGU extension services in a major rice-growing area: the case of Hagonoy, Davao del Sur (Rosa Fe D. Hondrade) A comprehensive assessment of the agricultural extension system in the Philippines: case study of LGU extension in Ubay, Bohol (Efren B. Saz) Closer trade and financial cooperation in ASEAN: issues at the regional and national level with focus on the Philippines (Jenny D. Balboa, Josef T. Yap, and Erlinda M. Medalla) Shaping APEC: perspectives from the Philippines (Erlinda M. Medalla and Jenny D. Balboa) Ten years after: financial crisis redux or constructive regional financial and monetary cooperation? (Josef T. Yap) Financing the Millennium Development Goals: the Philippines (Rosario G. Manasan) Policy reforms and institutional weaknesses: closing the gap (Gilberto M. Llanto and Eduardo T. Gonzalez) The policy development process and the agenda for effective institutions: the Philippines (Gilberto M. Llanto) Benefit incidence of public spending on education in the Philippines (Rosario G. Manasan, Janet S. Cuenca, and Eden C. Villanueva) Who benefits from the Food-for-School Program and Tindahan Natin Program: lessons in targeting (Rosario G. Manasan and Janet S. Cuenca) Extension delivery system in a layer and swine-based farming community: the case of San Jose, Batangas (Rowena T. Baconguis) Measuring economic lifecycle and flows across population age groups: data and methods in the application of the NTA in the Philippines (Rachel H. Racelis and J.M. Ian S. Salas) Has liberalization strengthened the link between services and manufacturing? (Gloria O. Pasadilla and Christine Marie M. Liao) Assessing the competitiveness of the Philippine auto parts industry (Rafaelita M. Aldaba) Market access limitations of the Philippines in the EU market (Gloria O. Pasadilla and Christine Marie M. Liao) Toward measuring household vulnerability to income poverty in the Philippines (Jose Ramon G. Albert, Lilia V. Elloso, and Andrei Philippe Ramos) Integrated financial supervision: an institutional perspective for the Philippines (Melanie S. Milo) International remittances and household expenditures: the Philippine case (Aubrey D. Tabuga) Some notes on performance management among agencies (Gilberto M. Llanto and Sally Brownette) The current state of aquaculture in Laguna de Bay (Danilo C. Israel) Contractual arrangements in agriculture: Northern and Central Luzon component (Alma dela Cruz) Contractual arrangments in Philippine fisheries (Gideon Carnaje) The determination of contracts in agricultural economies (Leonardo Lanzona) Agricultural contracts in Mindanao: the case of banana, pineapple, and poultry (Larry Digal) The role of extension in the local agricultural development: the case of Dalaguete, Cebu (Tess Tabada) Developing principles for the regulation of microfinance: Philippine case study (Gilberto M. Llanto, Maria Piedad Geron, and Joselito Almario)
______________ The Discussion Paper Series can be downloaded from http://publication.pids.gov.ph/
PN 2007-08
Policy Notes