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Attaining the Mdgs and Sustainable Growth with Equity

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ALTERNATIVE BUDGET 2008 Attaining the MDGs and Sustainable Growth with Equity ALTERNATIVE BUDGET CONSORTIUM Convened by: Social Watc P ilippines Action for Economic Reforms Movement for the Advancement of Student Po.er Akbayan Partylist (MASP Akbayan Youth O7fam 5reat Britain ALYANSA - UP Padayon Youth Alyansa ng Nagkakaisang Lakas ng Kabataan Partido Kalikasan (ALYANSA Partnership for Clean Air Alyansa Tigil Mina (ATM Philippine /ederation for Environmental Concern Buklod % College of Social Science and Philosophy (P/EC UP Diliman Philippine Net.ork on Climate Change (PNCC Bukluran ) Pamantasan ng Lugsod ng Maynila Philippine Rural Reconstruction Movement Centro Saka, Inc. Piglas Kabataan (PK Civil Society Net.ork for Education Reforms (E-NET Public Services Labor Independent Confederation Earth Savers Movement (PSLink Eco.aste Coalition Rice 3atch and Action Net.ork (R3AN /ather Archie Casey, S0 1PICC-AMRSP Samahang Demokratiko ng Kabataan (SDK /ilipino Democratic Student Union (/DSU Sanlakas Youth /reedom from Debt Coalition Southeast Asia Regional Initiatives for Community 2aribon /oundation Empo.erment (SEARICE 2ealth Care .ithout 2arm (2C32 Student Council Alliance of the Philippines (SCAP Institute of Public 2ealth Management (IP2M Sustainability 3atch ISKOLAR Student Alliance ) UP Manila Teachers and Employees Association for Change, KAISA ) UP Diliman Education Reforms and Solidarity (TEAC2ERS Kaisampalad Unlad Kabayan Kalayaan Youth UP Paralegal Society La Liga Policy Institute UPLift Philippines LIN5AP ) Adamson University . RITUAL ) Ri6al 3oman2ealth Philippines (32P Technological University Youth Against Debt (YAD Lodel Magbanua (personal capacity Youth for Nationalism and Democracy (YND Medical Action 5roup (MA5 In partners ip wit : Minority Legislators eaded by: Minority /loor Leader Ronaldo 8amora Representative Teofisto 5uingona III Representative Darlene Antonino-Custodio Liberal Party eaded by: Representative Loren6o Tanada III TABLE OF CONTENTS List of Tables List of Figures I. Executive Summary A. Introduction ………….………………………………………………………………… 1 B. ationale and Concept of the ABI ……………………………………………………. 1 C. The $ourney of the Alternative Budget Initiative ……………………………………… 2 D. The 'Balanced Budget(: Attainable and Sustainable* ………………………………. 2 E. Sectoral Proposals Basic Education ………………………………………………………………………. , -igher Education ………………………………………………………………………. 1. -ealth ……………………………………………………………………………………. 15 Agriculture …………………………………………………………………………….. 22 Environment ………………………………………………………………………….. 20 Debt ……………………………………………………………………………………… 2, F. Summary of Proposed Budget Increase and Sources of Funding ………………… .1 II. Technical Papers Basic Education …………………………………………………………………………….. .0 -igher Education ……………………………………………………………………………. 02 -ealth …………………………………………………………………………………….... 31 Agriculture ……………………………………………………………………………………. 82 Environment …………………………………………………………………………………. 8, Debt ……………………………………………………………………………………………111 LIST OF TABLES Table No. Page 1 Assessment of MDG Goal #2: Achieve Universal Primary ducation 7 2 ducation $ey Performance Indicators 8 3 The Alternative (udget Proposal for (asic ducation, 2008 , 4 The Alternative (udget Proposal for .igher ducation, 2008 14 5 Alternative (udget Proposal for 0. D 1cholarship, 2008 14 2. Alternative (udget Proposal for .ealth, 2008 17 7 (udgetary 3e4uirements for 5amily Planning 0ommodities 6D7., 20088 18 8 The Alternative (udget Proposal for Agriculture, 2008 24 , Alternative (udget Proposal for nvironment, 2008 22927 10 7utstanding Public 1ector Debt as of end9December 2002 27 11 National Government Debt as of end9:une 2007 6in trillion pesos8 27 12 Payments for Illegitimate Debts in the 2008 NG (udget 28 13 1ummary of Proposed (udget Increase, 2008 30 14 Possible 1ources of 5unds to 0over the Increases in the Alternative (udget 33 15 2008 ducation (udget 34 12 Assessment of MDG Goal #2: Achieve Universal Primary ducation 35 17 ducation $ey Performance Indicators 35 18 International 0omparison TIM11 2003 3esults 38 1, ducation 3egional Performance 3, 20 5A Development Index 6 DI8 by Province 3, 21 The Alternative (udget Proposal for (asic ducation, 2008 44 22 Proposed (udget for Identified 0enters of xcellence and Development per region 52957 23 Additional fund of 0. D<s 1cholarship Program for the 1tudents in non907 /07D 1U0s 58 24 Proposed Additional (udget for Non90enter of xcellence 1U0s 20 25 D7. and Its Attached Agencies< (udget 65Y 20088 21 22 0ross9country 0omparison of .ealth xpenditures as % of GDP 22 27 Distribution of D7. (udget by Geographical Area 65Y 2007 and 20088 24 28 Prevalence of Undernutrition by Age Group, 2003 25 2, MM3 and Under9five Mortality 1tatus Indicators 22 30 .ealth9related Practices Affecting Maternal .ealth 22 31 Percentage of Live (irths Delivery Assistance by (irth Attendants 6in percent8 27 32 0urrent Use of 0ontraceptives by Married Aomen 6in percent8 28 33 List of Nutritionally Bulnerable 3egions 65IBIM1, 20048 70 34 3egional Distribution of .ealth .uman 3esources employed in the government sector: Philippines, 2002 71 35 Deployment of .ealth AorCers Abroad, 1,,592003 72 32 1ummary of (udgetary Gaps in 5unding MDG Goals on 0hild 0are, Maternal .ealth and Diseases 74 37 (udgetary 3e4uirements for 5amily Planning 0ommodities 6D7., 20088 75 38 Alternative (udget Proposal for .ealth, 2008 7, 3, 2007 Actual (udget and 2008 Proposed (udget 80981 40 0urrent 7perating xpenditures 85982 41 The Alternative (udget Proposal for Agriculture, 2008 82 42 0lassification of nvironmental Issues 879,0 Table No. Page 43 Delineation of forest boundaries ,2 44 Demarcation of Philippine Archipelagic Aaters ,7 45 Proposed additional funding for NAM3IA ,7 42 Proposed additional funding for 71 0 ,8 47 1ummary of Proposed Additional Allocations ,, 48 7utstanding Public 1ector Debt as of end9December 2002 6in trillion pesos8 101 4, National Government Debt as of end9:une 2007 6in trillion pesos8 101 50 1ource of Deficit 6in billions8 103 51 National Government Debt 1ervice for 2007 and 2008 6in trillion pesos8 103 52 Government 1pending for 2008 6in billion pesos8 1048 53 2002 1pending Performance 6in billion pesos8 104 54 Growth 3ate of Non9interest xpenditures and 3evenues 6in percent8 105 55 NG 3evenue Program, by source, 200292008 6in million pesos8 105 52 2002 3evenue Performance 6in billion pesos8 107 57 Profiteering on 7wn Debts 6in billion pesos8 108 58 National Government 5inancing for 2007 and 2008 6in billion pesos8 108 5, 7utstanding Debt of the National Government, As of Year nd, 200292008 6in billion pesos8 10, 20 Deficit 5inancing from 200192008 6in billion pesos8 10, 21 Proposed budget allocations to be striCen out for debt payments 112 LIST OF FIGURES 5igure No. Page 1 Yearly U1 (udget Deficit or 1urplus, 1,81 E Present 6In F (illion8 4 2 Philippine (udget 1urplus 6Deficit8, 1,7,92003 6in (illion Pesos8 5 3 $ey Indicators E lementary ducation 32 4 $ey Indicators E 1econdary ducation 32 5 ducation 1corecard 37 2 0ountry DI 3anCing 37 7 The DI 1corecard: Global 0omparison of Philippine Provinces 40 8 1cattergram of 5A Development Index 6 DI8 and GNP Per 0apita 6Log Balues8 of Developing 0ountries 41 , Poverty Incidence and ducation Performance 6 DI8 by province 42 10 ducation xpenditures 42943 11 1U0 (udget per college entrant from 1,,592008 51 12 Percentage of students in public and private higher education institutions 51 13 Public xpenditures on ducation in some A1 AN countries, 2004 52 14 .istorical nrolment by 3egion and 1ector 1,,592004 53 15 Migration of 5ilipino Laborers 7verseas 1,,592004 54 12 D7. 1hare in the Total National (udget 65Y 20088 22 17 0omparison of D7. xpense 0lass in 2007 and 2008 (udget 22 18 0omparison of 5Y 2002, 2007 G 2008 Allocation by 5unction 6D7. Proper8 23 1, 5und 3e4uirements for MDGs 620088 24 20 .ealth xpenditures Account, 2004 72 21 PrivatiHation Proceeds 61,,2920088 102 22 3efinanced Debt 110 EXECUTIVE SUMMARY A. INTRODUCTION This Alternative Budget Initiative (ABI) for 2008 builds on the experience and achievements of the first-ever partnership bet een legislators and NGOs hich resulted to the 2007 ABI. Among the achievements of the 2007 ABI the items that it proposed and ere carried into the 2007 General Appropriations Act are as follo s: ° P5.3 billion budget for the construction of more than 17,000 classrooms, ° P2 billion funding for food supplements such as mil-, coco-pandesal, and vegetable- based noodles, and rice under the .epEd nutrition feeding program, ° P873 million for the hiring of ne teachers, and ° P05 million in additional scholarship fund tertiar1 education. The 2007 ABI also enhanced the a areness of legislators, other polic1-ma-ers and the media regarding the magnitude of outstanding debt, and the existence of several 2uestionable and illegitimate debts. The 2007 ABI3s position on the Northrail Pro4ect to cancel the agreement or at the least, suspend pa1ment hile a aiting a full investigation as adopted b1 both the Senate and the 6ouse of Representatives, but as unfortunatel1 vetoed b1 the President. 6ouse Resolution No. 1370, entitled 89rgent Resolution Allo ing The Active Participation of Bona :ide People3s Organizations in Public 6earings On the 2007 National Budget, And In The Annual Budgets Thereafter“ authored b1 representatives TG Guingona III and Erin Tanada III, as filed as suggested b1 members of the 2007 ABI. B. RATIONALE AND CONCEPT OF THE ABI The ABI, hich is also practiced in countries li-e Brazil, Canada, Ital1, India, Bangladesh, Benin and Ken1a centers on the
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