11/13/2014

Institutionalizing

People Power
Governance Reform
Under the Aquino Administration
FLORENCIO BUTCH B. ABAD
Secretary
Departm ent of Budget and Managem ent

11/13/2014

"Ang unang hakbang ay ang

pagkakaroon ng tuwid at tapat
na hanay ng mga pinuno
Hinding hindi ko sasayangin
ang tiwalang ipinagkaloob
ninyo sa akin
Sa mga kapuspalad nating
mga kababayan, ngayon, ang
pamahalaan ang inyong
kampeon."
- President Benigno S. Aquino III
Inaugural Address
3

Anti-Corruption

http://cdnwac.emirates247.com/polopoly_fs/1.428965.132168
8466!/image/4223774125.jpg

https://mrcheapjustice.files.wordpress.com/2012/05/chiefjustice-corona-on-wheelchair-returning-to-impeachmentcourt.jpg

http://nimg.sulekha.com/others/thu
mbnailfull/merceditas-gutierrez2011-4-29-3-50-10.jpg

11/13/2014

Improved Revenue Collections

(2009-2013, in billion pesos)
Tax Revenues

Non-Tax Revenues

2,000
1,800
181

1,600
174

1,400
158

1,200
1,000
800

142

114
1,094

1,202

2010

2011

1,535

1,361

982

600
400
200
0

2009

2012

2013

Reduced Debt Burden

Deficit maintained at
2.0 % of GDP

11/13/2014

Greater Spending on Socio-Econ Development

E X P E N D I T U R E S I N K E Y S E C T O R S A S % O F T OTA L , 2 0 0 5 - 2 0 1 5
40%
35%
30%
25%
20%
15%
10%

2005

2006

2007

2008

Social Services

2009

2010

2011

2012

Economic Services

2013

2014

2015

Debt Burden
7

Transforming the Budget

Spending within means
Spending on the right priorities
Spending with measurable results
In an empowering regime of
transparency, accountability
& citizens engagement
8

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Pursuit of Bold Reform Measures

Sin Tax
Reform

Bangsamoro
Agreement

Reproductive
Health

Customs
Revamp

Empowering Citizens in the Budget

Made budget information publicly available
through transparency policies like the
Transparency Seal and Open Data.
Created a formal mechanism for civil
society participation via Budget
Partnership Agreements
Introduced Grassroots Participatory
Budgeting (Bottom-Up Budgeting) to give
communities a direct voice in crafting the
National Budget
10

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Robust Economic Growth

P HL G D P G ROWT H FA S T E S T I N A S E A N
16

14

12

10

7.2

5.8
5.4
4.7

3.9
2.9

-2

2009

2010

2011

2012

Indonesia

Malaysia

Philippines

Singapore

Thailand

Vietnam

2013

-4

12

11/13/2014

Poverty Reduction
( I N C I D E N C E B Y % O F P O P U L AT I O N , 1 s t S E M E S T E R )
29
28

28.4

27

27.9

26
25

24.9

24
23

2009

2012

Source: National Statistical Coordination Board (as of 4 July 2014)

2013
Note: New methodology for 2013

13

Tuloy-Tuloy na Kasaganaan

Poverty further reduced

& middle class broadened

Growth sustained &

spread throughout
Philippines
14

11/13/2014

INVESTING IN THE PEOPLE

777 k

1M

2.3 M

3.1 M

3.8 M

4.3 M

4.3 M

households

households

households

households

households

households

households

15

INVESTING IN THE PEOPLE

16

11/13/2014

INVESTING IN THE PEOPLE

17

INVESTING IN THE PEOPLE

NATIONAL HOUSING AUTHORITY
HOUSING PRODUCTION/ASSISTANCE
BY ADMINISTRATION (No. Units)

Source: NHA

18

11/13/2014

RESHAPING BUDGET PRIORITIES

19

Improved Quality of Infrastructure

2006

2007

2008

2009

2010

2011

2012

2013

2014

96

(of 144)

88
(of 122)

91

94
(of 131)

98

92

Global
Competitiveness
Index 2nd Pillar:
Infrastructure

(of 148)

(of 144)

(of 134)

105

98
(of 133)

(of 142)

104
(of 139)

Select
Indicators

2006

2007

2008

2009

2010

2011

2012

2013

2014

Quality of
overall
infrastructure

89

101

94

98

113

113

98

98

95

Quality of
roads

85

91

94

104

114

100

87

87

87
20

10

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Philippine Rural Electrification Program

(Projects & Costs)

Projects

1992 -1998

1998 - 2000

PhP 6.65 B (18 years)

Costs

2001 - 2010

2010 - present
PhP 18.38 B
(4 years)
Source: NIA

Foreign Direct Investments (US$ B)

5
4.31

4.5
4

3.66

3.5

3.22

2.71

2.5

2.01

2
1.5

1.07

1
0.5
0
2010
(Source: bsp.gov.ph)

2011

2012

2013

Jan-Aug
2013

Jan-Aug
2014

11

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Status of PPP Projects

(As of October 8, 2014. Source: ppp.gov.ph)
STATUS

No. of Projects

Estimated Project Cost (Php)

Awarded

127.5 B

Other Projects for Implementation

89.8 B

10

217.3 B

Projects under Procurement

226.6 B

For approval of NEDA Board

183.4 B

Projects with ongoing studies

10

309.7 B for 3 projects,

TBD for 7 projects

For procurement of consultants

10

TBD

Under conceptualization or development

10

TBD

PROJECTS UNDER IMPLEMENTATION

SUB-TOTAL
PPP PIPELINE

Unsolicited Project

* This does not include 28 projects

without estimated costs yet

SUB-TOTAL

47

TOTAL

57

TBD
Source: Public Private Partnership Center

719.7 B*

23

937 B*

23

Revived Investor Confidence

I N V E S T M E N T G R A D E C R E D I T R AT I N G S

Ba3

Baa3

in July 2009

in October 2013

BB-

BBB

in July 2009

in May 2014

BB

BBB-

in May 2009

in March 2014

BB+

BBB-

in Mar 2011

in Sep 2014

24

12

11/13/2014

Improved State of Governance

Third Party Report

2010

Latest

Change

Transparency International 2013

Corruption Perceptions Index

134 / 178 94 / 177

World Bank 2014 Ease of Doing

Business

144 / 183

108 /
189

+36

85 / 139

52 / 144

+33

125 / 139
104 / 139

67 / 144
91 / 144

+ 58
+13

World Economic Forum Global

Competitiveness Index 2014-2015
Basic Requirements Sub-Index
Pillar 1: Institutions
Pillar 2: Infrastructure

Heritage Foundation 2014

Economic Freedom Index

109 / 179 89 / 178

+40

+20
25

Renewed Trust in Public Institutions

26

13

11/13/2014

Photo: Character
of the State
(???)

Source: Malacanang.gov.ph

27

"Broadly, a transformational
age of governance progress is
dawning for countries with the
courage to act... Under your
leadership, President Aquino,
the Philippines is in the
forefront of this
transformation."
- Jim Kim
President, World Bank

http://l3.yimg.com/bt/api/res/1.2/QnKwAGhX7GgusduudveIbQ-/YXBwaWQ9eW5ld3M7cT04NTt3PTYwMA-/http://media.zenfs.com/en_us/News/ap_webfeeds/f82107759b02ee1b590f6a7067002eda.jpg

28

14

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The Character of the State Matters

Political & economic institutions,
which are ultimately the choice of
society, can be inclusive and
encourage economic growth. Or
they can be extractive and become
impediments to economic growth.
-Daron Acemoglu
and James Robinson

Philippines: A History of State Capture

Long besieged by the
particularistic demands of
powerful oligarchic interests, the
Philippine state has rarely been
able to formulate or implement a
coherent policy of economic
development.
- Paul D. Hutchcroft

30

15

11/13/2014

Cory Funeral
(colored)

31
Source: Time Magazine (via RaissaRobles.Com)

Cory at EDSA
(B&W)

Source: Associated Press

Source: Wikimedia Commons

Noynoy Campaign
(colored)

Source: Noynoy Aquino Facebook Account

32

16

11/13/2014

Sa Daang Matuwid
Good Governance Made Irreversible:
Reforms deeply
installed as policies
& systems of public
institutions

Reforms lead to
tangible benefits
to people

Technology
leveraged for
greater efficiency
& accountability

Strong
constituency
present to support
& demand reforms

33

Sustaining the Momentum

Entitlement
Dependency
Poverty
Institutional
Capture
Opacity

Values-Based
Meaningful
Devolution
Meritocracy
Voice & Vote
Transparency

34

17

11/13/2014

2016: Tuloy ang Laban

35

Institutionalizing

People Power
Governance and Budget Reform
Under the Aquino Administration
FLORENCIO BUTCH B. ABAD
Secretary
Departm ent of Budget and Managem ent

36

18