The document discusses the Philippine government's fiscal and expenditure management reforms, highlighting strong revenue performance and key expenditure management initiatives. It outlines the government's efforts in increasing revenues and expenditures over five years, as well as investments in social services and infrastructure. Additionally, climate budgeting is integrated into the budget cycle, showcasing the government's commitment to address climate change through specific financial measures.

1. Philippine Fiscal and
Expenditure Management
Reforms
11th OECD-Asian Senior Budget Officials
Annual Meeting
Department of Budget and Management
Philippines
December 17-18, 2015.
Bangkok, Thailand
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2. I. Recent Fiscal Performance
II. Key Expenditure Management Reform
III.Climate Budgeting
OUTLINE
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3. Strong revenue performance has led to ample fiscal space
Revenues continue to grow faster than GDP; BOC led 2014 revenue expansion at 21%
In Billion Pesos 2012 2013 2014
Growth Rate
(2014/2013)
Total Revenues 1,534.9 1,716.1 1,908.5 11.2%
% of GDP 14.5% 14.9% 15.1%
Tax Revenues 1,361,1 1,535.7 1,720.1 11.9%
% of GDP 12.9% 13.3% 13.6%
BIR 1,057.9 1,216.7 1,334.8 9.7%
% of GDP 10.0% 10.5% 10.6%
BOC 289.9 304.9 369.3 21.1%
% of GDP 2.7% 2.6% 2.9%
Other Offices 13.3 14.1 16.1 5.9%
Non-Tax Revenues 173.8 180.4 188.4 5.1%
% of GDP 1.6% 1.5% 1.5%
Expenditures 1,777.8 1,880.2 1,981.6 5.4%
% of GDP 16.8% 16.3% 15.7%
Surplus/(Deficit) (242.8) (164.1) (73.1) -55.4%
% of GDP -2.3% -1.4% -0.6%
Nominal GDP 10,561 11,542 12,643 9.5%
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4. National Government’s fiscal consolidation efforts are on track
Over five years we have increased revenues by 58%, expenditures by 30%,
and narrowed the deficit
Revenues Expenditures Surplus/(Deficit)
PhpBn
1,207.9
1,522.4
(314.5)
1,359.9
1,557.7
(197.8)
1,534.9
1,777.8
(242.8)
1,716.1
1,880.2
(164.1)
1,908.5
1,981.6
(73.1)
-500
0
500
1,000
1,500
2,000
2,500
-3.5% of
GDP
-0.6 % of
GDP
2010 2011 2012 2013 2014 2010 2011 2012 2013 2014
2010 2011 2012 2013 2014
+30%
2014 vs 2010
+58%
2014 vs 2010
Contained to
-0.6% of GDP
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5. In Billion Pesos
Jan-Oct
2014
Jan-Oct
2015
Growth
Rate
FY 2015
Adjusted
Program
Total Revenues 1,577.3 1,768.0 12.1% 2,275.2
Tax Revenues 1,411.7 1,504.6 6.6% 2,127.7
BIR 1,098.2 1,190.6 8.4% 1,673.9
BOC 299.9 300.7 0.3% 436.6
Other Offices 13.6 13.2 -2.3% 17.1
Non-Tax Revenues 165.6 263.4 59.1% 145.6
Expenditures 1,610.9 1,820.6 13.0% 2,558.9
Surplus/(Deficit) (33.6) (52.6) 56.5% (283.7)
Revenues continue to move up in 2015 at double-digits
Revenue growth of 12% for the first ten months of 2015
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6. 6
General Government Debt
54.8 52.4 51.0 51.5
49.2
45.4 44.9
40
45
50
55
2009 2010 2011 2012 2013 2014 2015
National Government Debt
44.3 42.2 41.4 40.6
39.2
36.4 36.2
35
40
45
2009 2010 2011 2012 2013 2014 2015
% of GDP % of GDP
S1 S1
General Government Debt is composed of the National Government debt (less the debt held by the Bond
Sinking Fund), the debt of Social Security Institutions (GSIS, SSS and PhilHealth ) and the Local Government
Units (LGU)
Improving debt metrics; lower reliance on foreign debt
Further consolidation of debt creating a sustainable fiscal environment

7. (356.6) (175.1) (162.7)
44.8 82.2
(153.5) (129.8)
-4.0%
-1.8% -1.5%
0.4% 0.7%
-1.1% -0.8
-5.0
-4.0
-3.0
-2.0
-1.0
0.0
1.0
2.0
-500.0
-400.0
-300.0
-200.0
-100.0
0.0
100.0
200.0
2010 2011 2012 2013 2014 2015 2016
Consolidated Public Sector Financial Position
% of GDPPhp bn
Achieved surplus for two consecutive years
Program BESF
BESF – Budget of Expenditures and Sources of Financing
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8. 8
Social Services Expenditures, FYs 2011-2016
Increased spending and receiving largest portion of the budget
Expenditures for Major Social Programs.
The government’s spending for its social services continues
its upward trend, increasing by 29.4% in the proposed 2016
Budget as compared to the 2015 level. Overall, the budget
for these select social programs has increased by 40% since
the start of the Aquino administration, resulting to a 400.4%
increase from the P43.1 billion level in 2011 to P215.8 billion
come 2016.

9. Infrastructure Investment, FYs 2010-2016
Nearly 3 times the 1.8% in 2010
9
1.8 %
5.0 %
5.4 %
The government continues to invest in public
infrastructures such as road and transport
infrastructures, irrigation, farm-to-market roads
and other public infrastructures, as one of the key
drivers of economic development. In 2016, the
government is proposing some P766.5 billion of
infrastructure investments, equivalent to 5.0
percent of GDP, nearly three (3) times the 1.8
percent in 2010, and leading the way to the 5.4
percent medium-term target by 2018. These will
interconnect growth areas, supporting agriculture
and tourism development by providing market
access, and accessible routes to tourist
destinations, spurring trade, livelihood and
investment activities, and at the same time
generate employment.
Nominal data from 2010 to 2014 are actual obligations while for 2015 and 2016 are the enacted budget and proposed budget, respectively. Infrastructure Outlays refer to the infrastructure expenditure of the
National Government, inclusive of infrastructure subsidies to Government Corporations and infrastructure transfers to Local Government Units. This level however excludes internally generated funds of the
Government Corporations and Local Government Units.

10. • Operating expenditures
contained through hard budget
ceilings
• Agencies’ absorptive capacity
considered in the setting of
budget ceilings
• Aligned w/ Budget Priorities
Framework
• Implementation-ready
proposals prioritized
• Agencies can absorb
additional funds
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Spending Within Our Means
Two-Tier Budgeting Approach
TIER 1:
OPERATING EXPENDITURES +
ONGOING PROGRAMS
TIER 2:
NEW/EXPANDED PROGRAMS
1
1.5
2
2.5
3
2009 2010 2011 2012 2013 2014 2015 2016
Growth of Fiscal Space
Obligation Ceiling Forward Estimates
2016 Fiscal Space
= P582.7 billion
1
1.5
2
2.5
3
2009 2010 2011 2012 2013 2014 2015 2016
Growth of Fiscal Space
Obligation Ceiling Forward Estimates

11. Faster Budget Process via GAA-as-Release Document,
Early Bidding, Cashless & Checkless Payments, etc.
reforms that streamline processes
Unified Account Codes enables the efficient tracking of
each budget item: from enactment to implementation,
accounting, and audit.
Agency lump sum funds disaggregated & key
Special Purpose Funds reduced
[
Clearer Savings, Augmentation & Realignment rules to
strengthen budget integrity while providing sufficient
flexibilities for managers
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Delivering Measurable Results
Faster & Better Service Delivery

12. Full-Time Delivery Units to drive performance,
address bottlenecks, and regularly monitor and
report on progress
More Bids & Awards Committees & assignment of
full-time secretariats
Hiring of key staff: planning, procurement, project
management, technical specialists, monitoring &
evaluation
Assigning DPWH as government construction
agency and making other departments (e.g.
DepEd, DoH, DA) focus on core mandates
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Delivering Measurable Results
Addressing Institutional Weaknesses

13. Transparency Seal sustained in the 2016 Budget;
compliance so far at 98% of agencies
Open Data Philippines intensified by requiring all
agencies to publish data in open & machine-
readable formats & w/ open licenses
Performance in International Fiscal Transparency
Standards improved through new budget
publications
Bottom-Up Budgeting pursued with P24.7 billion in
poverty reduction projects identified by CSOs &
communities in 1,514 cities & municipalities
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Empowerment Through the Budget
Fiscal Transparency and Participation

14. 14
Climate
Budgeting
in the
Philippines

15. The country’s response to climate change
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A transformative
agenda
Climate Change
Commission
and
Cabinet Cluster
on Climate Change
Adaptation
and Mitigation
Mobilizing
the
Budgetary
process

16. National Climate Budgeting
Integrating climate response into the budget cycle
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17. 1. Identify climate change adaptation or mitigation measures.
2. Tag climate change expenditures using a climate change
typology.
3. Submit a list of climate change expenditures to the DBM,
CCC, and DILG (in the case of LGUs).
TYPOLOGY
of the climate responses
Climate change expenditure tagging identifies
government’s climate response
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18. FY 2015 GAA
140.9
billion pesos
programs,
projects, and
activities
tagged by 55
national
government
agencies
National Budget
31local government
units
undertook their
own climate
tagging to assess
their climate
priorities
Local
Government
361
Climate Budgeting
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FY 2016 NEP
166.3
billion pesos

19. FLOOD CONTROL
AND MANAGEMENT
INCREASED
FOREST COVER
MULTI-HAZARD
MAPS
RENEWABLE
ENERGY
MAJOR
RIVER BASINS
P91.6 B
(2 billion US dollars)
Risk Resiliency Program
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20. 11th OECD-Asian Senior Budget
Officials Annual Meeting
Department of Budget and Management
Philippines
December 17-18, 2015.
Bangkok, Thailand
20