The 2011 national budget of the Philippines, also known as the General Appropriations Act of 2011 was signed into law by President Benigno Aquino III last 28th of December 2010. The said national budget is 6.8 percent higher than the 2010 budget of PhP1.540 trillion (See Chart 1). It represents 18.2 percent of the projected Gross Domestic Product (GDP) this year. The approved budget assumes revenues of PhP1.41 trillion, or 15.6 percent of GDP in 2011, and disbursements of PhP1.70 trillion, or 18.8 percent of GDP, lower than the 19.5 percent last year1.
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| Chart 1 |
Amongst the top ten government departments receiving the biggest allocation from the approved PhP1.645 trillion budget, five of which were part of the National Organic Agricultural Board. The said departments are: the Department of Education (including Educational Facilities Fund) at PhP207.3 billion representing the largest government subsidy at 12.6 percent of the total budget; the Department of Interior and Local Government (including pension) at PhP88.2 billion; the Department of Agriculture at PhP37.7 billion from PhP41.2 billion which is a slight decrease of 8.5 percent in its budget due to the reduction in the allocation for input subsidies (e.g., seeds, fertilizers, farm implements and biologics) for the production of rice, corn, fisheries, livestock and high-value commercial crops with the better targeting of these subsidies; the Department of Health at PhP33.3 billion, up by 13.6 percent from the 2010 level of PhP29.3 billion; and the Department of Agrarian Reform at PhP16.7 billion which is a 20.7 percent decrease on account of the transfer of the Tulay ng Pangulo program and its fund allocation to the DPWH1 (See Chart 2). On the other hand, the Department of Environment and Natural Resources, the Department of Science and Technology, and the Department of Trade and Industry were allocated at PhP8.982 billion, PhP2.264 billion, and 2.118 billion budget respectively.
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| Chart 2 |
The Aquino administration said that they had made a reform on the 2011 budget addressing the critical gaps in social services, i.e. education, health, social welfare, and housing for the poorest segment of its population. This is to ensure that the segment will be provided greater means to have a fighting chance to build a better future. Studies have shown how the country’s per capita growth rates have lagged behind those of its neighbors and how slow its methods on poverty reduction have been. From the 2011 budget, top level priority was again given to education as there has been a sharp increase of 18.4 percent (PhP32.3 billion) from its budget of PhP175 billion last year, attributed to the construction of 13,147 classrooms and the creation of 10,000 teaching positions. It is the biggest increase allocated to education in over a decade1 (See Chart 3). The budget would also fund research and development in various state colleges and universities which is at PhP268 million increase. There is also an additional PhP222 million budget for scholarship grants for undergraduates in the Science Education Institute under the DOST, and another PhP100 million for Science Technology and Engineering Fellowship and Scholarships for the Philippines to Taiwan and Korea2.
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| Chart 3 |
From the paper ‘Education is our Future’ by Senator Edgardo Angara, also chairman of the Senate education committee, he emphasized that the field of Science, Technology, and Innovation (STI) have the potential to contribute substantially to economic growth and poverty reduction. Basic to the realization of this potential is education which is fundamental for a knowledge economy based on information technology and the country’s human capital3. One of the factors for development underlying the STI efforts, given his examples with other countries such as China, Singapore and Thailand, these countries’ respective governments have supported, funded and nurtured higher education institutions, as well as academies of engineering and technological sciences, professional engineering and technological sciences, professional engineering and technological associations, and industrial and trade associations.
In the Philippines, current efforts in promoting STI include government-initiated STI programs, budgetary allocations for agriculture R&D and higher education, and academic networking. The additional PhP268 million budget would fund SUCs that have the capability to utilize research. In 2008, the budget has funded R&D and scholarships for scientists, engineers, and students which has trickled down to the Department of Agriculture (DA), better-performing State Universities and Colleges (SUCs), the Commission on Higher Education (CHED) and the University of the Philippines (UP), likewise having received increased budget allocations for R&D.
Special support to upland agriculture has been given through the creation of a research consortium among six SUCs in the Cordillera Administrative Region (CAR). This research consortium will focus on conserving national agricultural heritage such as the rice terraces, the native textile industry and wood-based arts and crafts; improving the variety of rice and vegetables in the uplands; introducing organic farming; and creating a joint program on fish breeding. The six CAR institutions include Abra State Institute of Science and Technology, Apayao State College, Benguet State University, Ifugao State College of Agriculture and Forestry, Kalinga-Apayao State College, and Mountain Province State Polytechnic College3. Among the state universities and colleges, the Benguet State University (BSU) has become the first organic school in the country which was declared as the Organic Agriculture University4.
References:
1 General Appropriations Act 2011, The 2011 Budget at a Glance, Department of Budget and Management Publication, The President’s Budget Message, Benigno S. Aquino III, President of the Philippines, 24 August 2010
2 Senate starts 2011 Budget Deliberation, abs-cbnNews.com by Ryan Chua, 23 November 2010
3 Education is our Future, lecture by Senator Edgardo J. Angara 2008
4 Regional Conference on Organic Agriculture in Asia by Girlie Sarmiento, December 2007
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