Good News July 1, 2011 Updates from Government Agencies Vol.1 / No.10

A year of achievements After just a year in office, the Aquino administration is well on track in fulfilling its Social Contract with the Filipino people. Zero-based budgeting, combined with a commitment to prudent spending, has made possible funding for more programs to reduce poverty and eradicate corruption–without raising taxes.

The 1.816 trillion peso proposed budget for 2012 just approved by the President commits more than a third of the funds to social services with an emphasis on the Pantawid Pamilyang Pilipino Program (4Ps), basic education, and public health.

Far from the practice of haste, waste, and routine President Benigno S. Aquino III delivers his message during the launching of “PILIPINAS NATIN” at the Philippine Sports Commission (PSC) – Philsports spending in the past, the Department of Budget and Complex along Meralco Avenue in Pasig City on Thursday (June 30). PILIPINAS Management is now committed to ensuring every peso NATIN underlines the importance of unity and solidarity among all Filipinos that is spent wisely and prudently so the people know their transcends political or sectoral affiliations. (Malacañang Photo Bureau) government is working for them.

This is being replicated throughout your government, PNoy approves 1.816-Trillion proposed where contracts prejudicial to the public interest have budget for 2012 been identified and stopped, and selfish perks eliminated for officials. PAGCOR, for instance, because of better A third of the proposed budget to benefit the management, has managed to save hundreds of millions poor through increased funding for social services of pesos which have been used to fund social services.

For its part, the DOST has showed remarkable PRESIDENT Benigno S. Aquino III and the Cabinet have resourcefulness as it transforms the water hyacinth from approved the proposed P1.816-trillion national budget for a nuisance vegetation that causes floods into something 2012. The proposed budget is 10.4 percent higher than useful and profitable: handicrafts and bioethanol. the current year’s budget of P1.645-trillion, fully reflecting Its continuing efforts has also given a human face to the Aquino administration’s commitment to fulfill its Social science-based solutions to community concerns, from Contract with the Filipino People. timely weather bulletins, to ensuring Filipino infants in Continued on page 4 the poorest municipalities are nourished properly with low-cost vitamin-fortified cereals. Government quality spending picks up More and more government agencies have heeded the Abad: Aquino administration makes every Peso count call for good governance. All these efforts show that the Aquino administration will not be deterred from BUDGET Secretary Florencio B. Abad welcomed reports continuing its campaign for achieving inclusive growth, from the Bureau of Treasury indicating that government and transforming our hopes into better lives. spending has picked up and will continue on this trajectory during the remaining months of this year. He also noted an US supports ASEAN unity in South China improvement in both the flow of cash and the quality of Sea dispute public goods and services delivered. Foreign Affairs Secretary ’s diplomatic “We’re seeing a turnaround towards quality government efforts in Washington was cited by and opinion article in spending. After government agencies have conducted the Wall Street Journal as he conducted successful talks a thorough review of the costs and efficiencies of their last week in relation to the 1951 Mutual Defense Treaty programs and projects, they are now ready to spend with between the Philippines and the United States. much impact,” Abad said. Continued on page 3 Continued on page 2

Presidential Communications Development and Strategic Planning Office Good News July 1, 2011 Vol.1 / No.10 Updates from Government Agencies

Government quality...(continued)

“Our fiscal consolidation efforts so far have been acknowledged by the recent credit rating upgrades. We need to sustain this through fiscal responsibility, particularly through quality spending that leads to direct, immediate, and substantial support to the poor,” he added.

According to the Treasury, disbursements in May amounted to P129.7 billion or an increase of 15.7 percent from that in April which stood at P112.1 billion. Furthermore, the Notice of Cash Allocation (NCA) utilization rate has markedly improved to 90.9 percent as of May, from 82.1 percent in March and 88.7 percent in April.

Cumulatively, the out turn of P591.0 billion as ofMay was lower by 10.7 percent year-on-year, but this is an improvement compared to the year-on-year declines of 12.7 percent as of March and 11.6 percent as of April. Abad noted that the comparative period last year was “beyond normal,” considering the infusion of election- related spending and the previous administration’s spending spree in its last semester in power.

More importantly, Abad said that the Aquino administration’s brand of governance and economic management is different because it makes sure that every peso spent counts.

For one, infrastructure agencies, particularly the Department of Public Works and Highways (DPWH), have thoroughly reviewed projects and their costs and implemented competitive and transparent bidding processes. These efforts, according to Abad, have so far led to savings worth P2.1 billion and have ensured “that the people’s money will widen and thicken roads, not fatten the pockets of a few.”

Key social services agencies like the Department of Education and the Department of Health are also looking at new modes of constructing school buildings and health centers. With the assistance of the DPWH, they are considering the use of pre-fabricated materials, as well as the clustering of the building and construction projects. “This will enable contractors to achieve scale and greater efficiency,” Abad said.

Abad added that the Conditional Cash Transfer program has been proceeding faster than programmed, with all P2.34 million targeted households for this year expected to already be receiving their cash grants by this Budget and Management Secretary Butch Abad at the First Emilia Boncodin September. Day at the Department of Budget and Management (DBM) head office in San Miguel. (Malacañang Photo Bureau)

2 Presidential Communications Development and Strategic Planning Office Good News July 1, 2011 Vol.1 / No.10 Updates from Government Agencies

PAGCOR income hits P3.03 B Highest revenues in history to ensure social spending of administration on track

ONLY 10 months after new management assumed office, 15 percent reduction in operation expenses which has, so the Philippine Amusement and Gaming Corporation far, translated to savings of P874 million from January to (PAGCOR) posted record-breaking gross revenues of May this year. P3.03 billion last May, the highest ever in PAGCOR’s 25- year history. With higher revenues and bigger savings, PAGCOR was able to substantially increase its contributions to PAGCOR Chairman and CEO Cristino L. Naguiat, Jr. said the national government. During the period in review, the state-run gaming firm increased its revenues by PAGCOR’s remittances to the National Treasury, the P297 million in May 2011 compared to the same period Bureau of Internal Revenue and the Philippine Sports last year. “We generated more than P2.01 billion from Commission amounted to P1.105 billion, up by almost our gaming operations and P1.02 billion from regulated P37 million compared to the May 2010 remittances of gaming operations like commercial bingo and licensed P1.068 billion. casino operations, among others,” he noted. PAGCOR also remitted portions of its net income to other The agency’s May revenues brought to P14.16 billion the legal beneficiaries like the President’s Social Fund, the total income of PAGCOR during the first five months of the Board of Claims, host cities and the socio-civic projects year. This is P1.34 billion higher than the gross earnings of of the government. In May alone, P264 million has been PAGCOR from January to May 2010. remitted to these beneficiaries.

PAGCOR’s remarkable performance, according to Naguiat, Heady revenues have also allowed the state-run gaming was due mainly to management’s deft maximization firm to help shore up the number of classrooms in the of resources, application of prudent fiscal policies, and country. PAGCOR has promised to turnover to the continued efforts to enhance Casino Filipino’s gaming Department of Education (DepEd) 1,000 fully-equipped facilities. classrooms before December 2012 which represents 10 percent of the 10,000 classrooms the DepEd is capable of Due to fierce competition, PAGCOR’s ultimate goal is to building every year. transform the casinos from being mere gaming centers into wholesome recreation and entertainment centers for The classrooms will have provisions for desks or local and foreign tourists alike. armchairs, books, and other educational materials. Part of the PAGCOR’s mandate is to generate revenue for Under Naguiat’s leadership, PAGCOR has significantly cut the country’s socio-civic, infrastructure, and national back on operating expenses since 2010. This includes a development programs.

US supports...(continued)

Del Rosario’s diplomatic offensive has resulted in the US According to the article, the US and ASEAN need to review showing solidarity with the Association of Southeast Asian the Declaration on Conduct of Parties in the South China Nations (ASEAN). According to the piece, the U.S. supports Sea ratified in 2002, which China has “routinely violated.” a united ASEAN in its dispute with regional powerhouse It suggests a “more rigorous code of conduct that spells China over claims in the South China Sea. Recently, the U.S. out the current status quo and how ships and aircraft must Senate passing a resolution deploring China’s use of force behave to respect it.” against Philippine and Vietnamese and urging a peaceful resolution to territorial disputes. The article said that past efforts of the ASEAN to negotiate as a bloc with China over the disputed area was scuttled This echoes the sentiments of the Singaporean Foreign by former President Gloria Macapagal-Arroyo in 2004 who Ministry who asked China to “clarify its claims with more gave up Philippine claims to enable joint oil exploration. precision as the current ambiguity as to their extent has Source: Wall Street Journal caused serious concerns in the international maritime http://online.wsj.com/article/SB10001424052702304447804576413193 community.” 946912026.html?mod=googlenews_wsj

3 Presidential Communications Development and Strategic Planning Office Good News July 1, 2011 Vol.1 / No.10 Updates from Government Agencies

PNoy approves...(continued)

“This is a budget that is focused on achieving results: TOP DEPARTMENTS that the dividends of good governance reach the poor in a direct, immediate and substantial way,” said Budget Of the 10 departments with the largest budgetary Secretary Florencio B. Abad. The proposed budget is allocation, the Department of Education will remain at the focused on the five key result areas of the Social Contract: top with P237 billion, 14.4 percent more than its P207.3- anti-corruption and good governance, poverty reduction billion budget in 2011, to support in filling critical resource and the empowerment of the poor, inclusive economic gaps in classrooms, teachers, and learning materials. growth, just and lasting peace and the rule of law, and integrity of the environment. The Department of Public Works and Highways will receive the second largest budgetary allocation with P125.9 billion He said social services–mainly basic education, public to support the paving of all national primary and secondary health, and the Pantawid Pamilyang Pilipino Program roads and bridges within President Aquino’s term. (4Ps) –will get the lion’s share of the proposed budget of 31.6 percent or P573.5 billion, which is an increase of 10 Meanwhile, the Department of Social Welfare and percent over its current budgetary allocation of P521.4 Development will receive the largest budgetary increase billion. at 56 percent from P34.4 billion to P53.6 billion to support 3 million Pantawid Pamilyang Pilipino Program (4Ps) To support rapid, inclusive, and sustainable growth, the household beneficiaries in 2012 compared to this year’s economic services sector will receive the second biggest 2.3 million beneficiaries. allocation which is 24.3 percent or P442.1 billion of the budget, an increase of 22.2 percent over its P361.9 billion The Department of Agriculture’s budget for 2012 also this year. In particular, infrastructure and other capital increased by more than half from P35.2 billion in 2011 to outlays—especially those supporting agriculture, tourism P52.9 billion. This will be used to restore irrigation systems and industrial development—have been given greater which will support the country’s rice self-sufficiency goals. emphasis with a 27.2 percent increase to P243.9 billion in 2012 from P191.7 billion. “The 2012 budget is the first budget that will be fully- prepared, legislated, and executed under the Aquino The general public services sector will receive P322.3 administration so we want to really ensure that the Aquino billion or 17.7 percent of the 2012 proposed budget, or brand of governance is fully reflected in the National an annual increase of 11.9 percent. The defense sector Budget,” Abad said, noting that it will be submitted to will receive P111.4 billion or 6.1 percent of the proposed Congress on July 26, a day after the President’s State of budget, or an increase of 9.9 percent. the Nation Address.

Meanwhile, to sustain fiscal consolidation efforts, the share of the debt burden on the national budget will decrease to 20.2 percent or P367.2 billion, from 22.6 percent or P372.1 billion of the 2011 budget. A fiscal deficit of P286 billion or 2.6 percent of gross domestic product (GDP) is targeted in 2012, lower than this year’s target of P300 billion or 3 percent of GDP.

“More importantly, we ensured that every peso counts. First, we sustained zero-based budgeting to promote efficiency and effectiveness in spending. With this, we were able to scale-up spending on programs and projects that are aligned with the Social Contract,” Abad said.

Transparency and accountability are also hallmarks of this budget, according to Abad. “We fleshed-out lump- sum funds in the budget, tightened the use of savings and ensured direct budgetary release to the smallest implementing units,” he added.

Abad noted that the President has approved of the proposed budget, subject to some modifications and Budget Secretary during a press conference held in one of the clarifications. local convention centers in Butuan City. (PIA-Caraga)

4 Presidential Communications Development and Strategic Planning Office Good News July 1, 2011 Vol.1 / No.10 Updates from Government Agencies

DOST water hyacinth harvesters to de-clog freshwater bodies starting July Potential uses of plant include handicrafts, garments, and energy

SCIENTISTS and engineers at the Department of Science and The objective is not to eradicate the water hyacinth but Technology (DOST) are in a race to control the invasive water rather to control its growth by cleaning rivers regularly, hyacinth that are clogging freshwater bodies in the country. according to Executive Director Amelia P. Garcia of the Philippine Council for Industry, Energy and Emerging “We are looking at the water hyacinth problem in two ways: Technology Research and Development (PCIEERD). how to remove it and how to use it,” Science and Technology Secretary Mario G. Montejo said. As such, PCIEERD is considering the aquatic plant as a potential material for biogas production to enhance He added that water hyacinths may be used for handicrafts, integrated waste management system at the municipal garments production, and as a material for bioethanol. level.

The Department’s immediate concern, however, is to help Other than a potential source of energy, water hyacinth can de-clog major river systems like the Rio Grande de Mindanao, be processed into animal and fish feed, charcoal briquettes, the second largest river system in the Philippines, which is fiber board, textile fiber, organic fertilizer, and other filled with water hyacinth. handicrafts, said Guevarra.

Innovation is necessary, according to the DOST, considering Previously, DOST’s Philippine Council for Aquatic and Marine the inefficiency of the current system that involves backhoes Research and Development provided technical support to retrofitted on barges. Though similar to commercially the province of Sultan Kudarat, which used water hyacinth available models, the DOST is scheduled to test a locally- from Lake Buluan to spur province-wide cottage industries. developed water hyacinth harvester by July that is adapted The products of lake-side residents of the province include to Philippine conditions and built using readily available bags, slippers, and other fashion items that have augmented components. their traditional sources of livelihood.

DA invests P415 M irrigation, agri projects in Samar Set to benefit 2,000 farm families and help Samar rise from poverty

THE Department of Agriculture (DA) is investing an initial strong cooperation among all stakeholders, Samar should P415 million in Samar to jumpstart the development of rise from being one of the poorest provinces in the country. its agriculture and fisheries sector, as part of the recently launched Northern Samar convergence agro-enterprise This development initiative is enabling Samar to produce cluster. sufficient amounts of food, particularly rice, by making more farmlands productive through the establishment Agriculture Secretary Proceso J. Alcala - who led the launch of irrigation systems and teaching farmers modern and in Catarman over the weekend - said the bulk of the sustainable rice production technologies, Alcala said. investments will go into the completion and repair of four irrigation systems, amounting to P380 million, while the The P380 million fund from the DA’s National Irrigation balance of P35 million is earmarked for various agri-fishery Administration (NIA) is allotted for the completion of projects. two irrigation projects in Catarman-Bobon (P210 M) and Bugko, Mondragon (P150 M), restoration of the Macagtas Alcala said Samar should not remain poor as it is endowed irrigation system in Catarman (P15 M), and construction with rich agriculture and marine resources. He said in the of 120 kilometers of irrigation canals of Catubig Dam in medium term, with sustained investments, political will and Northern Samar (P5 M).

NIA Administrator Antonio Nangel said that when the four projects are completed, these will irrigate an additional 7,140 hectares that could be planted twice a year and will benefit 2,000 farm families.

At a conservative yield of four tons per hectare per season and two crops a year, the 7,140 hectares would produce an additional 57,120 metric tons (MT) of palay annually. Agriculture Secretary Proceso Alcala (3rd from left) witnesses as NIA This projected harvest represents roughly 23 percent of the administrator Antonio Nangel (2nd from left) hands over a certificate of total palay harvest of the three Samar provinces at 250,127 turnover of four irrigation projects to Northern Samar Governor Paul Daza. Looking on is DA Region 8 Director Antonio Gerundio. (DA) MT in 2010, Nangel said.

5 Presidential Communications Development and Strategic Planning Office Good News July 1, 2011 Vol.1 / No.10 Updates from Government Agencies

PINOY project of DOST to reduce malnutrition incidence for Filipino infants

THE Department of Science and Technology (DOST) The first component is the development of food blends has launched a comprehensive program to alleviate that will provide important nutrients, such as protein malnutrition in children aged 6 to 35 months in the poorest and carbohydrates, to malnourished children in high municipalities of the country. malnutrition incidence communities. The blends come in 20-gram packs, with the rice-mongo and rice-mongo- Dubbed the “PINOY Project” the DOST initiated this sesame blends designed for children aged 6-11 months and specifically for children in this age group because it is the rice-mongo curls designed for one year olds. “the most critical period in a child’s life,” said Science and Technology Secretary Mario G. Montejo. This is followed by 120 days of continuous feeding of these foods, culminating in the training of parents and caregivers According to the DOST’s Food and Nutrition Research on various ways to improve the nutritional intake in Institute (FNRI), any inadequacy in a child’s diet in this households. Discussed in these classes are important topics period will result in irreversible long-term physical and such as breastfeeding, menu and meal planning, sanitation mental damage, so nutrition intervention is very important. and hygiene, and growing vegetables, among others.

PINOY, which stands for Package for the Improvement of DOST-FNRI’s Dr. Julieta Dorado, PINOY project leader, Nutrition of Young children, was recently launched in Leyte explained that the initiative will also monitor any changes which belongs to Region 8 (Eastern Visayas) where a 15.7 or developments that resulted from the program, including percent malnutrition rate was recorded last year, a slight the progress of the children’s weight, consumption improvement from 18.7 percent in 2009. of complementary foods, and knowledge levels of participating mothers in terms of nutrition. Their findings For the project, DOST has devised a three-pronged approach will serve as basis in the design and implementation of a that develops complementary foods, feeds malnourished community-based nutrition intervention for infants and children aged 6-35 months, and educates parents as well young children. as caregivers on proper nutrition.

Vote for the Puerto Princesa Underground River Send PPUR to 2861

Each SMS sent counts as one vote for Puerto Princesa Underground River to become one of the New7Wonders of Nature of the world.

6 Presidential Communications Development and Strategic Planning Office