The Department of Education, with P207.3 billion (including the Educational Facilities Fund) represents 12.

6 percent of the total budget, and retains the top position. There has been a sharp increase of 18.4 percent (P32.3 billion) from its budget of P175.0 billion this year, attributed to the construction of 13,147 classrooms and the creation of 10,000 teaching positions. This will be the biggest increase allocated for education in over a decade.

The Department of Public Works and Highways remains in second place, with P110.6 billion, or 6.7 percent of the total budget, despite some P6.9 billion in Priority Development Assistance being taken out from its budget.

The Department of National Defense (DND), third among the top recipients of next years budget, gets an increase of 81.1 percent, from P57.8 billion in 2010 to P104.7 billion in 2011. The increase is attributed in part to the return of military pensions to DNDs budget. The Armed Forces of the Philippines Modernization Program fund of P5 billion is likewise transferred from the Special Purpose Fund to the DND for greater transparency and accountability, and better programming.

The Department of the Interior and Local Government (DILG) exchanges places with the DND and is now ranked 4th. Its budget increased by 32.6 percent, from P66.5 billion in 2010 to P88.2 billion in 2011. Again, for better programming and accountability, the budget for police pensions has been placed under DILG supervision.

The Department of Agriculture, retaining its position in 5th place, has a slight decrease of 8.5 percent in its budget, from P41.2 billion to P37.7 billion 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 highvalue commercial crops with the better targeting of these subsidies.

The Department of Social Welfare and Development jumps to 6th from 8th this year, its budget increasing by P18.9 billion or 122.7 percent, from P15.4 billion to P34.3 billion. The remarkable increase provides for the second phase implementation of the KALAHI-CIDSS Project in 96 municipalities, conditional cash transfers to 2.3 million households, rice subsidy, and pensions for indigent senior citizens.

The Department of Health ranks 7th with P33.3 billion, up by 13.6 percent from the 2010 level of P29.3 billion.

The Department of Transportation and Communications is in 8th place with a budget of P32.3 billion, an increase by 87.8 percent from P17.2 billion in 2010 . The additional allocations will go to the expansion of infrastructure activities, particularly for the continued implementation of both North and South LRT lines, and the continuing subsidy to the MRT. Also included in the departments budget for 2011 are navigation surveillance/air traffic management system and the Laguindingan Airport Development Project.

The budget for the Judiciary also increased to P14.3 billion and will ultimately continue to constitute one percent of the budget after consideration of the other personnel benefits.

On the other hand, the budget of the Department of Agrarian Reform (DAR) decreased by 20.7 percent on account of the transfer of the Tulay ng Pangulo program and its fund allocation to the DPWH.