THE 2006 National Budget, President Gloria Macapagal-Arroyo told Congress last week as she submitted the Executive’s proposal, is all about "alleviating the pain."

Prudence, responsiveness, integrity, accountability, and balance are hopefully reflected in its numbers and figures which speak not just in terms of digits and pesos but—more—in terms of impact on the life of the Filipino people.

The proposed budget, said the Chief Executive, will reverse the deterioration of the country’s public services and propel the administration’s 10-Point Agenda expressed in the Medium-Term Development Plan for 2004-2010.

The 10-Point Agenda includes, among others, creating six million jobs in six years; decongesting the capital; providing electricity and water to all barangays; improving education; concluding the peace process; and finding a "closure to the divisiveness among the Edsa 1, 2 and 3 forces."

In her Budget Message to Congress, the President said, "We need a Budget that is both decisive and responsive to these critical times. I propose such a Budget."

Of the proposed P1.053-trillion outlay, P340 billion will go to interest payments for the country’s debts. This early, various members of Congress have noted the need to break what they call is a pattern of losing huge chunks of the country’s annual budget to debt service; Malacañang has replied, stressing that repaying the country’s debts was "the honorable thing to do."

The Department of Education (DepEd) will receive the highest allocation among all the government’s line agencies, with P119.1 billion. (The 1987 Constitution requires that education be given the "highest budgetary priority.")

The Department of Public Works and Highways (DPWH) will get P62.3 billion; Department of National Defense (DND), P51.6 billion; Department of the Interior and Local Government (DILG), P45.6 billion; and Department of Agriculture (DA), P15.6 billion.

The proposed budget was drawn up by the Executive based on certain macroeconomic assumptions such as a 7.5-percent inflation rate; a real gross domestic product growth of 6.1 percent; and higher revenue collections.

The Legislature will discuss the proposal, approve a final appropriations bill and appropriate funds for it.

By Constitutional process, the Executive submits to Congress its proposed annual budget in the form of a Budget of Expenditure and Sources of Financing (BESF), supported by details of proposed expenditures in the form of a National Expenditure Program (NEP) and the President’s Budget Message summarizing the budget policy thrusts and priorities for the year.

The proposed budget is received by the House of Representatives which assigns the initial review to its committee on appropriations.

With other House sub-committees, the appropriations committee conducts hearings on the budgets of departments and agencies and scrutinizes their respective programs and projects. The amended budget proposal is then presented to the entire chamber as the General Appropriations Bill.

While budget hearings are on-going in the House of Representatives, the Senate Finance Committee, through its different sub-committees also conducts its own review of the proposed budget and submits its amendments to the body.

The House and Senate create a Bicameral Conference Committee to reconcile differences in their respective proposals and arrive at a common version of the General Appropriations Bill.

If, by the end of a fiscal year the Legislature fails to pass the general appropriations bill for the following fiscal year, the general appropriations law for the current year is deemed reenacted and remains in force until the new bill is passed by Congress, such as what happened in the last three successive years.

While the formal budgetary process is straightforward, much of it goes through unofficial procedures, with members of the Executive and Legislature negotiating concessions from each other as proposals are trimmed from, or inserted into, what eventually becomes the appropriations law.

Read the President’s Budget Message.

7 Responses to The Executive’s proposed 2006 budget



August 29th, 2005 at 10:23 pm

Who was responsible for incurring the large debt that the country have and where the did all the money go. Obviously, it is not the common people who benefited from the debt and the portion of the budget intended for social services is still miniscule.
How can these politicians sleep well at night unless their mattresses are filled with money they stole knowing that the people of the country are in dire need of help to provide for their basic needs fo food, shelter, clothings, and education, and health.
Rise and fight for your rights and get rid of the corrupt politicians .



August 30th, 2005 at 1:09 am

Sana yong pera binibigay ni GMA sa mga congressmen para hindi pumerma sa impeachment complaint ay ginagmit na lang niya para ibili ng gamot at libro. ang nangyayari ngayon ang taong bayan ang naghihirap kasi ang pera ng bayan ay hindi ginagastos para sa ikabubuti ng nakakarami. At tsaka ang pera na pinamimigay ni GMA ay galing sa taong bayan galing sa mga buwis na binayad natin. And now GMA wants a trillion budget!! I guess she has empty the national treasury by giving the pro GMA congressment envelopes(?) left and right. Are we going to give her and her cronies more money to steal?? If she is not impeach then the next move should be a tax boycot.. Enough of her stealing from the people.



August 30th, 2005 at 3:23 am


What if the people will not pay their taxes? Maybe this will be the right thing to do after all people are not priority with this government.

If people will not pay taxes, then this budget proposal will only be a scratch paper…then these official has no option to use peoples money..the hard-earned money..

People are sick and tired of these corruption, people can no longer accept being used by this fake government as an excuse for their massive stealing.

Let us not give this damn government a chance to steal again our money. Money came from our sweat and blood. These officials do not care about us, they only care about themselves.

Let us give them dose of their own medicine!



August 30th, 2005 at 7:50 am

As these PCIJ people themselves mention, the source of all the data they use in their “investigative” journalism are the very institutions we pay taxes to sustain — the Commission on Audit and other agencies and bureaus. Let these institutions work for us!

We hardly ever express any sentiment when it comes to EXPECTING our politicians to build strong institutions. But when it comes to after-the-fact “vigilance”, i.e. when the damage is already done, we are quick to take to the streets, shout militant slogans, and needle the very politicians that Pinoys themselves elected to office. That is such a typical mode of operation for a society that has shown little predisporition to demonstrating any FORESIGHT.

This lack of discipline is only a symptom of our inability to think systematically a trait the following article explores:

“Instead, let Filipinos wage a war against people’s naiveté of the situation by leaving the problems to the “experts.” It must be a war against quick fixes that promise relief from difficulties but not cures from social illnesses. Their weapons must be alternative systems, structures and institutions that operate for the common good, the people’s benefit and, if need be, outside the government’s sphere of influence and control.” 😀


jay seneca

September 6th, 2005 at 4:40 pm

I like this pcij section less comments
less anger.


INSIDE PCIJ: Stories behind our stories » “Fat chance.”

September 9th, 2005 at 6:34 pm

[…] But cha-cha will likely face a bumpier ride at the Senate, as even administration senators are saying there are more important matters to be discussed by the chamber, including the 2006 budget. […]


INSIDE PCIJ: Stories behind our stories » Senate challenged to craft budget for development

May 31st, 2006 at 2:40 pm

[…] CIVIL-society groups have lauded last week’s announcement by the Senate of a P31-billion cut in the Malacañang-proposed P1.053-trillion national budget for 2006 in favor of additional allocations to basic social services, calling such efforts by the legislature’s upper chamber as particularly urgent in these times. […]

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