DEPARTMENT OF NATIONAL DEFENSE

Legal Basis

• Commonwealth Act No. 1 (December 21, 1935), the National Defense Act, created the Council of National Defense to advise the President on all matters pertaining to national defense policy.

• Commonwealth Act No. 430 (May 31, 1939), as implemented by Executive Order No. 230 (October 31, 1939), created the Department of National Defense (DND).

• Executive Order No. 94 (October 4, 1947) charged the DND with the duty of supervising the national defense program of the country.

• Executive Order No. 292 (July 25, 1987), the Administrative Code of 1987, directed the DND to exercise executive supervision over the Armed Forces of the , the Office of Civil Defense, the Philippine Veterans Affairs Office, the National Defense College of the Philippines, and the Government Arsenal.

Mandate

The Department of National Defense (DND) is tasked to guard the country against external and internal threats to national peace and security, and to provide support for social and economic development.

339 LOGICAL FRAMEWORK (DND)*

Societal Goal National Security to Uphold Sovereignty and Territorial Integrity, Support Socio-Economic Development and Political Stability

Sectoral Goal Peaceful, Secure, and Stable Internal and External Environment Organizational Outcomes ABCDE F Country Free Country Secured Strengthened Security Defense-Wide Disaster-Risk Managed, Socio-Economic Alliance and from Insurgency, from Direct-Armed Capability Lives Protected and Development and Secessionism, Partnership in the Asia- Property Preserved in Aggression or Pacific Region and Upgraded Peace Process and other Armed Times of War and Other Invasion Stable and Peaceful National Emergencies Supported Threats to Internal International Security Environment Major Final Outputs A,B,C,D,E,F A,B,C,D,E,F A,B,C,D,E,F A,B,C,D,E,F A,B,C,D,E,FC,D,E A,B,C,D A,B,C,D A,B,C,D,E,F 1. Land 2. Air Force 3. Naval 4. Manage- 5. Strategic 6. Disaster 7.Quality 8. National 9. AFP Force Capability Force ment of Policy and Risk Small Arms Security Capability Capability Capability Joint Defense Management Ammunition Education Upgrade Operations Management PAPs Land Force Air Force Naval Force Joint Central DND DND DND DND AFP C2,Training Central Program Program Program Central Central Central Modernization and Support Level Level Program Level Level and Internal Internal Internal Program Program Program Investment Military Program security security security strategic Program operations operations operations planning Manufacture Advanced Supervision, Planning, Strategic direction, of arms and higher Acquisition Territorial Territorial Territorial command & coordination, and education defense defense defense control and and and ammunition services International direction coordination upgrading and Disaster Disaster Disaster humanitarian of the for civil of AFP & security of national response response response following defense equipment peacekeeping arsenal defense & system operations mission strategic under the Support to Support to Support to Joint areas: national national national special Munitions international AFP policy development development development operations Internal research modernization Strategic security and studies program lift and International International International operations development defense & defense & defense & mobility security security security Joint Territorial engagements engagements engagements service defense support Disaster Ordnance response International International International build-up humanitarian humanitarian humanitarian Tertiary National assistance & assistance & assistance & health care development peacekeeping peacekeeping peacekeeping (AFPMC) International operations operations operations Joint defense & education & security training Pre- engagements commission Humanitarian officers assistance training and (PMA) Peace- Reserve force keeping administration operations and training Joint force preparedness (Exercise Balikatan) Presidential Security Group (PSG) *Excludes the Philippine Veterans Affairs Office and its operating units (Military Shrines Services and Veterans Memorial Medical Center) which are presented separately. 340 FY 2011 MFO BUDGET

By MFO/By Expense Class (In Thousand Pesos)

Particulars PS MOOE CO TOTAL % Share MFO 1 Land Force Capability 28,456,742 5,130,454 20,752 33,607,948 37.02% MFO 2 Air Force Capability 6,128,246 4,038,242 10,166,488 11.20% MFO 3 Naval Force Capability 7,696,721 3,672,259 11,368,980 12.52% MFO 4 2/ Management of Joint Operations 26,675,068 3,055,237 2,000 29,732,305 32.75% MFO 5 Strategic Policy and Defense Management 93,111 223,497 316,608 0.36% MFO 6 Disaster Risk Management 68,898 27,495 96,393 0.11% MFO 7 Quality Small Arms Ammunition 148,080 272,846 10,000 430,926 0.47% MFO 8 National Security Education 28,765 29,792 58,557 0.06% MFO 9 AFP Capability Upgrade 5,000,000 5,000,000 5.51% TOTAL 1/ 69,295,631 16,449,822 5,032,752 90,778,205 100% % Share 76.34% 18.12% 5.54% 100% Notes: 1/ Exclusive of PVAO Budget (P1,198.700M) and Pension Benefits-PVAO (P12,693.203M) 2/ Inclusive of Pension Benefits-AFP (P24,107.630B)

By MFO (Total Budget = P 90,778,205,000) MFO 6 MFO 8 0.11% 0.06% MFO 7 MFO 9 MFO 5 0.47% 5.51% 0.36% MFO 1 37.02%

MFO 4 32.75%

MFO 3 MFO 2 12.52% 11.20%

341 By Agency/By MFO (In Thousand Pesos)

MFO 1 MFO 2 MFO 3 MFO 4 MFO 5 MFO 6 MFO 7 MFO 8 MFO 9 TOTAL % Share Land Force Air Force Naval Force Manage- Strategic Disaster Quality Small National AFP Particulars Capability Capability Capability ment of Policy & Risk Arms Security Capability Joint Defense Manage- Ammunition Education Upgrade Operations Manage- ment ment DND Proper (Office of the Secretary) 316,608 316,608 0.36%

Government Arsenal 430,926 430,926 0.47%

National Defense College of the 58,557 58,557 0.06% Philippines

Office of Civil Defense 96,393 96,393 0.11%

Armed Forces of the Philippines

Philippine Army 33,607,948 33,607,948 37.02%

Philippine Air 10,166,488 10,166,488 11.20% Force

Philippine Navy 11,368,980 11,368,980 12.52%

General 29,732,305 5,000,000 34,732,305 38.26% Headquarters 2/ TOTAL 1/ 33,607,948 10,166,488 11,368,98029,732,305 316,608 96,393 430,926 58,557 5,000,000 90,778,205 100%

% Share 37.02% 11.20% 12.52% 32.75% 0.36% 0.11% 0.47% 0.06% 5.51% 100% Notes: 1/ Exclusive of PVAO Budget (P1,198.700M) and Pension Benefits-PVAO (P12,693.203M) 2/ Inclusive of Pension Benefits-AFP (P24,107.630B)

By Agency (Total Budget = P90,778,205,000)

GA OSEC 0.47% OCD 0.36% NDCP 0.11% 0.06% GHQ PA 38.26% 37.02%

PN PAF 12.52% 11.20%

342 By Agency/By Expense Class (In Thousand Pesos)

Particulars PS MOOE CO TOTAL % Share DND Proper (Office of the Secretary) 93,111 223,497 316,608 0.36% Government Arsenal 148,080 272,846 10,000 430,926 0.47% National Defense College of the Philippines 28,765 29,792 58,557 0.06% Office of Civil Defense 68,898 27,495 96,393 0.11% Armed Forces of the Philippines 28,456,742 5,130,454 20,752 33,607,948 37.02% 6,128,246 4,038,242 10,166,488 11.20% 7,696,721 3,672,259 11,368,980 12.52% General Headquarters 2/ 29,675,068 3,055,237 5,002,000 34,732,305 38.26% TOTAL 1/ 69,295,631 16,449,822 5,032,752 90,778,205 100% % Share 76.34% 18.12% 5.54% 100%

Notes: 1/ Exclusive of PVAO Budget (P1,198.700M) and Pension Benefits-PVAO (P12,693.203M) 2/ Inclusive of Pension Benefits-AFP (P24,107.630B)

By Expense Class (Total Budget = P90,778,205,000)

CO MOOE 5.54% 18.12%

PS 76.34%

343 DND-Office of the Secretary

LOGICAL FRAMEWORK (DND-OSEC)

Societal Goal

National Security to Uphold Sovereignty and Territorial Integrity, Support Socio-Economic Development and Political Stability

Sectoral Goal

Peaceful, Secure, and Stable Internal and External Environment

Organizational Outcomes

Country Free Country Strengthened Defense- Lives Socio- Perpetuation from Secured Security wide Protected economic of Heroic Insurgency, from Direct - Alliance and Capability and Property Development Deeds Secessionism, Armed Partnership Upgraded Preserved and and and Other Aggression in the Asia - in Times of Peace Improvement Armed or Invasion Pacific War and Process of General Threats to Region; and Other Supported Welfare Internal Stable National of Veterans Security & Peaceful Emergencies International Environment

Major Final Strategic Policy and Defense-Resource Management Services Output

Programs/ Supervision, coordination, and direction of the following mission areas: Activities/ Projects • Internal security operations • Territorial defense • Disaster response • National development • International defense and security engagements • Humanitarian assistance & peacekeeping operations

344 PERFORMANCE MEASURES AND TARGETS (Amounts in Thousand Pesos) FY 2009 FY 2010 FY 2011 Particulars Actual/Amount Target/Amount Target/Amount

MFO 1 Strategic Policy and Defense Resource Management Services 485,742 469,671 316,608

Strategic Policy and Defense Resource Management Key Document Products prepared in accordance with prescribed standards and timetable 138 102 103 Defense Transformation Philippine Defense Reform (PDR) 20% 36% - -Organization of the Program Management Structure 7 -Assessment of present structures and processes 7 3 -Design of systems and development of processes 4 12 -Implementation of systems and processes 3 14 -Training of Personnel 3 15 Self-reliant Defense Posture (SRDP) -Number of projects completed 5 - - TOTAL 1/ 458,742 469,671 316,608 Note: 1/ Includes transfers from Miscellaneous Personnel Benefits Fund (P3.762M), Continuing Appropriations-Regular (P124.425M) and Calamity Fund (P62.031M)

FY 2011 MFO BUDGET By MFO/By Expense Class (In Thousand Pesos)

Particulars PS MOOE TOTAL % Share MFO 1 Strategic Policy & Defense Resource Management Services 93,111 223,497 316,608 100% TOTAL 93,111 223,497 316,608 100% % Share 29.41% 70.59% 100%

By Expense Class (Total Budget = P316,608,000)

MOOE 70.59% PS 29.41%

345 Government Arsenal

Legal Basis

• Republic Act No. 1884 (June 22, 1957) created the Government Arsenal (GA), a line bureau under the Department of National Defense.

• Executive Order No. 303 (March 29, 2004) mandated the Armed Forces of the Philippines, the Philippine National Police, and other law enforcement agencies to source their small-arms ammunition and other munitions from the Government Arsenal.

Mandate

The Government Arsenal (GA) designs and manufactures small arms, mortars, other weapons and ammunition for these weapons, and other munitions for use of the Armed Forces of the Philippines.

346 LOGICAL FRAMEWORK (GA)

Societal Goal National Security to Uphold Sovereignty and Territorial Integrity, Support Socio- Economic Development and Political Stability

Sectoral Goal

Peaceful, Secure, and Stable Internal and External Environment

Organizational Outcomes Strengthened Security and Country Free from Country Secured from Alliance and Partnership in Insurgency, Direct-Armed Aggression or the Asia-Pacific Region; and Secessionism, and Other Invasion Armed Threats to Stable and Peaceful Internal Security International Environment

Major Final Output Quality Small-Arms Ammunition

Manufacture of arms and Programs/ ammunitions, and maintenance and Munitions research and development Activities/ security of arsenal Projects

347 PERFORMANCE MEASURES AND TARGETS (Amounts in Thousand Pesos) FY 2009 FY 2010 FY 2011 Particulars Actual/Amount Target/Amount Target/Amount MFO 1 Quality small-arms ammunition 382,434 373,161 430,926

Number of small-arms ammunition 13.5 million 2/ manufactured 15 million rounds 15 million rounds rounds Percentage acceptance based on standards 98% 98% 98% Complete delivery of ammunition 13.5 million manufactured 15 million rounds 15 million rounds rounds Number of munitions research and development projects conducted 6 projects 10 projects 10 projects

TOTAL 1/ 382,434 373,161 430,926 Notes: 1/ Includes Customs Duties and Taxes (P17.904M), Transfers from Miscellaneous Personnel Benefits Fund (P4.668M), Pension and Gratuity Fund (P8.149M) and Continuing Appropriations (P320,000) 2/ Starting 2011, GA is expected to produce 1 million rounds of 7.62 mm (loose) and 2 million rounds of 7.62 mm (linked) which have a higher cost of production than the usual production of 5.56mm (M193). Hence, the reduction of target.

FY 2011 MFO BUDGET By MFO/By Expense Class (In Thousand Pesos)

Particulars PS MOOE CO TOTAL % Share

MFO 1 Quality small-arms ammunition 148,080 272,846 10,000 430,926 100% TOTAL 148,080 272,846 10,000 430,926 100% % Share 34.36% 63.32% 2.32% 100%

By Expense Class (Total Budget = P430,926,000)

CO 2.32% PS OOE 34.36% .32%

348 National Defense College of the Philippines

Legal Basis

Presidential Decree No. 190 (May 11, 1973) created the National Defense College of the Philippines under the Department of National Defense.

Mandate

The National Defense College of the Philippines (NDCP) prepares and develops potential national defense leaders, civilian officials of the different branches of the government, and selected executives from the private sector.

349 LOGICAL FRAMEWORK (NDCP)

National Security to Uphold Sovereignty and Territorial Integrity, Societal Goal Support Socio-Economic Development and Political Stability

Sectoral Goal Peaceful, Secure, and Stable Internal and External Environment

Organizational Wider Base of Well-educated Well-studied Defense Outcomes and Trained Leaders and Security Options and Managers of Defense and Recommendations

Major Final Outputs National Security Education Services Defense and Security Policy Studies

Programs/ National defense Advanced and higher education and strategic international policy Activities/ services Projects studies

350 PERFORMANCE MEASURES AND TARGETS (Amounts in Thousand Pesos)

FY 2009 FY 2010 FY 2011 Particulars Actual/Amount Target/Amount Target/ Amount MFO 1 National Security Education Services 48,207 50,526 41,287

No. of MNSA graduates 30 50 50 % of enrollees who graduated 86% 95% 95% % of students satisfaction on: MNSA Program 90% 90% 90% Faculty/Staff 90% 90% 90% Facilities 60% 75% 85% No. of participants trained from short-term courses 53 100 100

MFO 2 Defense and Security Policy Studies 14,361 16,009 17,270 No. of policy papers produced 92 20 20 No. of policy recommendations prepared and adopted by decision-makers 57 10 10

TOTAL 1/ 62,568 66,535 58,557

Note: 1/ Includes transfers from Miscellaneous Personnel Benefits Fund (P457,000) and Continuing Appropriations (P18.802M)

351 FY 2011 MFO BUDGET By MFO/By Expense Class (In Thousand Pesos)

Particulars PS MOOE TOTAL % Share MFO 1 National Security Education Services 19,977 21,310 41,287 70.51% MFO 2 Defense and Security Policy Studies 8,788 8,482 17,270 29.49% TOTAL 28,765 29,792 58,557 100% % Share 49.12% 50.88% 100%

By MFO (Total Budget = P58,557,000)

MFO 2 29.49%

MFO 1 70.51%

By Expense Class (Total Budget = P58,557,000)

MOOE 50.88% PS 49.12%

352 Office of Civil Defense

Legal Basis

• Republic Act No. 1190 (August 18, 1954), Civil Defense Act of 1954, created the Office of Civil Defense (OCD).

• Presidential Decree No. 1 (September 24, 1972), supported by Letter of Instructions No. 19 (December 31, 1971), provided for the mandate of the OCD.

• Presidential Decree No. 1566 (June 11, 1978) designated OCD as the executive arm and secretariat of the National Disaster Coordinating Council.

• Memorandum Order from the Office of the President (August 8, 2006) approved the shift of OCD concerns from disaster response paradigm to a more pro-active Disaster Risk Management (DRM).

Mandate

The Office of Civil Defense (OCD) coordinates the activities of various government agencies and instrumentalities as well as of private institutions and civic organizations devoted to public welfare. It supervises, monitors, and evaluates the implementation of disaster management programs to ensure their effectiveness.

353 LOGICAL FRAMEWORK (OCD)

Societal Goal National Security to Uphold Sovereignty and Territorial Integrity, Support Socio-economic Development and Political Stability

Sectoral Goal

Peaceful, Secure, and Stable Internal and External Environment

Organizational Lives Protected Outcomes and Property Disaster-resilient Partnership in the Preserved Communities Asia-Pacific Region in Times of War and Attuned Other National to Socio-economic Emergencies Development

MFO Disaster Risk Management

P/A/Ps Planning, direction, and coordination for civil defense

354 PERFORMANCE MEASURES AND TARGETS (Amounts in Thousand Pesos)

FY 2009 FY 2010 FY 2011 Particulars Actual/Amount Target/Amount Target/Amount

MFO 1 Disaster-Risk Management 356,406 90,507 96.393

No. of secretariat services/technical assistance to National, Regional, Provincial, City, Barangay Disaster Coordinating Councils 72 68 68 No. of technical assistance provided in the formulation/review of Disaster-Risk Management Plans/Contingency Plans and other disaster-related plans and studies at all levels 49 49 49 No. of organized Disaster Coordinating Councils (DCCs), Disaster Control Groups (DCGs) and Volunteer Groups (VGs) at Regional, Provincial, Municipal, City, and Barangay levels 845 819 819 No. of disaster simulation drills and exercises in schools and disaster preparedness trainings 16 16 16 No. of emergency responses coordinated/ As the need As the need mobilized 170 Arises arises

Total 1/ 356,406 90,507 96,393 Note: 1/ Includes transfers from Calamity Fund (P258.626M), Miscellaneous Personnel Benefits Fund (P1.835M), Pension and Gratuity Fund (P1.730M) and Contingent Fund (P227,000)

355 FY 2011 MFO BUDGET

By MFO/By Expense Class (In Thousand Pesos)

Particulars PS MOOE TOTAL % Share MFO 1 Disaster Risk Management 68,898 27,495 96,393 TOTAL 68,898 27,495 96,393 100% % Share 71.48% 28.52% 100%

By Expense Class (Total Budget = P96,393,000)

MOOE 28.52% PS 71.48%

356 Philippine Veterans Affairs Office

Legal Basis

• Commonwealth Act No. 288 (January 1, 1939) created the Board of Pensions for veterans.

• Republic Act No. 65 (October 18, 1946) created the Philippine Veterans Board in the Department of National Defense, providing for the Filipino Veterans Bill of Rights which granted educational benefits, disability, and death pensions, as well as veterans preference in civil service examinations.

• Presidential Decree No. 1 (September 24, 1972) merged the Veterans Claims Commission, Veterans Back Pay Commission, and Philippine Veterans Administration created by various legislations into the Philippine Veterans Affairs Office (PVAO) under the Department of National Defense.

• Presidential Decree No. 1076 (January 27, 1977) consolidated and integrated the Office of Veterans Services (Philippine Veterans Affairs Office-Proper, Veterans Memorial Medical Center, Military Shrines Service) into the Philippines Veterans Affairs Office.

Mandate

The Philippine Veterans Affairs Office (PVAO) administers veterans’ benefits, implements programs and projects to enhance their general welfare, and institutes measures to memorialize their patriotism and heroism. It oversees the operations and maintenance of the Veterans Memorial Medical Center and accredited hospitals nationwide to service the medical needs of veterans. It also oversees the administration and development of military shrines.

357 LOGICAL FRAMEWORK (PVAO)

Societal Goal Socio-economic Welfare and National Unity

Sectoral Goal Recognition of Veterans Services for the Country

Organizational Improved General Welfare Perpetuated Memory Outcomes of Veterans of Filipino Veterans’ Heroic and Their Dependents Deeds

Health Care Services for MFOs Administration Services for Preservation Veterans Benefits Veterans and Their and Development Dependents Services for Military Shrines

Processing of veterans’ Hospitalization and medical Administration of national pension claims P/A/Ps care and treatment military shrines

Processing of other In-patient care Development of national veterans’ benefits military shrines Out-patient care Investigation, verification of Celebration of “Araw ng records, strengthening of Kagitingan” internal control system, and conduct of Reforestation of all shrines management and systems audit

358 PERFORMANCE MEASURES AND TARGETS (Amounts in Thousand Pesos)

FY 2009 FY 2010 FY 2011 Particulars Actual/Amount Target/Amount Target/Amount MFO 1 Administration Services for Veterans Benefits (PVAO-Proper) 1/ 15,565,504 313,947 1/ 13,018,937

No. of veterans and beneficiaries of pension benefits 258,347 291,373 308,430 No. of veterans and beneficiaries of other veterans’ benefits 11,149 10,820 33,439 Percentage of veterans’ benefits application received against applications processed 75% 75% 75% Percentage of claims processed on time 61% 70% 70% Percentage of claims revalidated 34% 25% 25% (old-age pensioners) (old-age pensioners) (25% Post WW II 70% WW II)

MFO 2 Health Care Services for Veterans and their Dependents (VMMC) 755,547 713,554 848,060

Total in-patient days 118,003 127,750 127,750 Percentage of total discharge vs total hospital in-patient census 88% 90% 90% Total out-patient cases or visits 164,556 172,000 177,000

MFO 3 Preservation and Development Services for Military Shrines (MSS) 25,076 24,182 24,906

No. of shrines maintained at operational standards 7 7 7 Percentage of accomplished maintenance and development projects over planned 100% 100% 100% Percentage of positive feedback from visitors/guests/tourists 99% 95% 95% Number of veteran-related events coordinated 19 11 11

TOTAL 16,346,127 1,051,683 13,891,903

Note: 1/ Includes Pension Benefits (2009-P15,263.336M and 2011-P12,693.203M)

359 FY 2011 MFO BUDGET By Agency/By MFO (In Thousand Pesos) MFO 1 MFO 2 MFO 3 Administration Health Care Preservation and Services for Services for Development Particulars TOTAL % Share Veterans Benefits Veterans Services for and their Military Shrines Dependents PVAO-Proper 13,018,937 13,018,937 93.72% VMMC 848,060 848,060 6.10% MSS 24,906 24,906 0.18% TOTAL 13,018,937 848,060 24,906 13,891,903 100% % Share 93.72% 6.10% 0.18% 100%

By Agency (Total Budget = P13,891,903,000)

VMMC MSS 6.10% 0.18% PVAO-Proper 93.72%

By Agency/By Expense Class (In Thousand Pesos)

Particulars PS MOOE CO TOTAL % Share

PVAO-Proper 12,769,168249,769 13,018,937 93.72%

VMMC 423,471371,589 53,000 848,060 6.10%

MSS12,504 12,402 24,906 0.18%

TOTAL 13,205,143 633,760 53,000 13,891,903 100% 95.06% % Share 4.56% 0.38% 100%

By Expense Class (Total Budget = P13,891,903,000) MOOE 4.56% CO 0.38% PS 95.06%

360 Philippine Army

Legal Basis

• Commonwealth Act No. 1 (December 21, 1935), the National Defense Act, organized the Army of the Philippines consisting of the Regular and the Reserve Forces and all organizations necessary to form the basis for a complete and prompt mobilization for national defense and for the performance of national police duties in peace and in war.

• Executive Order No. 94 (October 4, 1947) created the Philippine Ground Force, now the Philippine Army, as one of the Major Commands of the Armed Forces of the Philippines (AFP).

• Executive Order No. 389 (December 23, 1950), Reorganizing the Armed Forces of the Philippines, established and organized the Philippine Army as one of the Major Services of the AFP.

• Executive Order No. 292 (July 25, 1987), Administrative Code of 1987, provided for the powers, functions and organizational structure of the Philippine Army as one of the Major Services of the AFP under the supervision and control of the Department of National Defense (DND).

Mandate

The Philippine Army (PA) develops, organizes, trains, equips, supports, and sustains army forces for the conduct of ground operations to accomplish the AFP mission.

361 LOGICAL FRAMEWORK (PA)

Societal Goal National Security to Uphold Sovereignty and Territorial Integrity, Support Socio- Economic Development and Political Stability

Sectoral Goal Peaceful, Secure, and, Stable Internal and External Environment

Organizational Outcomes Secured Strengthened Upgraded Protected and Socio-economic and Protected Security PA-wide Preserved Development Populace Alliance and Military and Communities, with a Viable from Internal Partnership Readiness Properties, and Effective and External with Regional Level and Peace Process Security Allied Armies Infrastructures in Times of Peace, War and National Emergencies

Major Final Outputs Ground, Reservists Infrastructure International Limited Air Mobilization Development Security & Water & Disaster Capability Alliance Operations Response Capability Capability Capability

Programs/ Activities/ Internal Territorial Support to International Projects security defense national defense and operations development security Disaster engagement response International

humanitarian and peace- keeping operations

362 PERFORMANCE MEASURES AND TARGETS (Amounts in Thousand Pesos) FY 2009 FY 2010 FY 2011 Particulars Actual/Amount Target/Amount Target/Amount

MFO 1 Ground, Limited Air and Water Operations Capability 30,545,452 28,724,301 31,190,871

Number of Army Units to be maintained in accordance 229 233 233 with prescribed standards Operational Tempo to be sustained for the period • No. of combat operations conducted 260,058 263,844 267,279 • No. of human intelligence and counter intelligence conducted 926 440 600 • No. of major CMO operations conducted 435,609 362,292 360,652 • No. of career courses and specialization 269 237 237 • No. of beneficiaries for scholarship program 22 22 22

MFO 2 Reservists Mobilization and Disaster-Response Capability 377,625 374,492 665,776

Number of Army Units to be maintained in accordance 520 520 520 with prescribed standards Operational Tempo to be sustained for the period • No. of Units to be supported out of the mobilization 13 companies @ 12 13 companies @ 12 13 companies @ 12 stocks CCIE line items CCIE line items CCIE line items • No. of individuals participated in mustering and undergone training • No. of rescue/disaster response operations 157,065 128,292 128,292 conducted 652 As need arises As need arises • No. of DRRO in- service training conducted 32 32 32 • No. of units supported on their DRM activities 13 13 13

MFO 3 Infrastructure Development Capability 1,347,550 1,382,450 1,608,666

No. of Army Units to be maintained in accordance with 22 22 22 prescribed standards Operational Tempo to be sustained for the period • No. of buildings and road projects repaired/constructed 687 As directed As directed • No. of environmental protection operations undertaken 36,195 19,000 19,000 • No. of in-service training conducted in Support to National Development (SND) 68 68 68

MFO 4 International Security Alliance Capability 3,367 51,317 142,635

No. of Army Units to be maintained in accordance with prescribed standards Operational Tempo to be sustained for the period • No. of bilateral and multilateral engagements/activities to be participated in/hosted 16 22 22 • No. of personnel on foreign military courses/training 78 100 100 • No. of Army military personnel sent on peacekeeping operations 857 As necessary As necessary

TOTAL 1/ 32,273,994 30,532,560 33,607,948 Note: 1/ Includes transfers from Miscellaneous Personnel Benefits Fund (P1,012.884M), Pension and Gratuity Fund (P1,658.595M), Over-all Savings (P82.255M) and Continuing Appropriations (P74.784M)

363 FY 2011 MFO BUDGET

By MFO/By Expense Class (In Thousand Pesos) Particulars PS MOOE CO TOTAL % Share

MFO 1 Ground, Limited Air and Water Operations Capability 26,557,068 4,613,051 20,752 31,190,871 92.81%

MFO 2 Reservist Mobilization Capability and Disaster-Response Capability 501,692 164,084 665,776 1.98%

MFO 3 Infrastructure Development Capability 1,387,363 221,303 1,608,666 4.79%

MFO 4 International Security Alliance Capability 10,619 132,016 142,635 0.42%

TOTAL 28,436,815 5,130,454 20,752 33,607,948 100% % Share 84.67% 15.27%0.06% 100%

By MFO (Total Budget = P33,607,948,000)

MFO3 MFO2 4.79% MFO4 1.98% 0.42% MFO1 92.81%

By Expense Class (Total Budget = P33,607,948,000)

MOOE CO 15.27% 0.06% PS 84.67%

364 Philippine Air Force

Legal Basis

• Executive Order No. 389 (December 23, 1950) created and organized the Philippine Air Force as one of the Major Services of the Armed Forces of the Philippines (AFP).

• Executive Order No. 292 (July 25, 1987), Administrative Code of 1987, provided for the powers, functions, and organizational structure of the Philippine Air Force as one of the Major Services of the AFP under the supervision and control of the Department of National Defense (DND).

Mandate

The Philippine Air Force (PAF) organizes, trains, equips and maintains forces to conduct prompt and sustained air operations to accomplish the AFP mission.

365 LOGICAL FRAMEWORK (PAF)

Societal Goal National Security to Uphold Sovereignty and Territorial Integrity, Support Socio-Economic Development and Political Stability

Sectoral Goal Peaceful, Secure, and Stable, Internal and External Environment

Organizational Country Free Country Strengthened Defense-wide Lives Protected Socio-economic from Secured from Security Alliance Capability and Property Development Outcomes Insurgency, Direct-armed and Partnership Upgraded Preserved in and Peace Secessionism, Aggression in the Asia- Times of War Process and Other or Invasion Pacific Region, and Other Supported Armed Threats and Stable and National to National Peaceful Emergencies Security International Environment

Major Final Tactical Air and Air Defense Disaster Response, Outputs Special Operations and Martitime Civic Action Capability Surveillance and Environmental Capability Protection Capability

Programs/ Internal security Territorial defense Disaster response operations Activities/ Support to national Projects International development humanitarian assistance and peacekeeping operations

International defense and security engagements

366 PERFORMANCE MEASURES AND TARGETS (Amounts in Thousand Pesos) FY 2009 FY 2010 FY 2011 Particulars Actual/Amount Target/Amount Target/Amount

MFO 1 Tactical Air and Special Operations Capability 8,080,349 7,559,076 7,797,622

Number of Units maintained/to be maintained 26 26 26

Operational Tempo Number of Flying Hours 21,515 25,007 25,833 Number of Sorties 24,393 23,500 24,000 Number of Activities in support to TRIAD Operations 6,593 3,891 4,149 Number of IDSE Activities 47 47 47 Number of IHA & PKO Deployment 10 11 11

MFO 2 Air Defense and Maritime Surveillance Capability 773,490 997,828 1,501,668

Number of Units maintained/to be maintained 3 3 3

Operational Tempo Number of Flying Hours 816 814 897 Number of Sorties 332 386 452 Number of Radar Operating System 7,920 8,760 8,760

MFO 3 Disaster Response, Civic Action and Environmental Protection Capability 942,107 734,169 867,198

Number of Units maintained/to be maintained 5 5 5

Operational Tempo Number of Flying Hours 6,214 3,053 3,269 Number of Sorties 3,167 4,114 4,577 Number of Engineering Activities 26 36 46

TOTAL 1/ 9,795,946 9,291,073 10,166,488 Note: 1/ Includes Customs and Duties Taxes (P67.522M) and transfers from Miscellaneous Personnel Benefits Fund (P248.282M), Pension and Gratuity Fund (P574.021M) and Continuing Appropriations (P84.234M)

367 FY 2011 MFO BUDGET

By MFO/By Expense Class (In Thousand Pesos) Particulars PS MOOE TOTAL % Share

MFO 1 Tactical Air Operations Capability 4,727,488 3,070,134 7,797,622 76.70%

MFO 2 Air Defense and Maritime Surveillance Capability 838,323 663,345 1,501,668 14.77%

MFO 3 Disaster Response, Civic Action and Environment Capability 562,435 304,763 867,198 8.53%

TOTAL 6,128,246 4,038,242 10,166,488 100% % Share 60.28% 39.72% 100%

By MFO (Total Budget = P10,166,488,000)

MFO 3 MFO 2 8.53% 14.77% MFO 1 76.70%

By Expense Class (Total Budget = P10,166,488,000)

MOOE 39.72% PS 60.28%

368 Philippine Navy

Legal Basis

• Commonwealth Act No. 1 (December 21, 1935), the National Defense Act, created and organized the Off-Shore Patrol (OSP) under the Regular Force of the Army of the Philippines.

• Executive Order No 94 (October 4, 1947) created the Philippine Naval Patrol, forerunner of the Philippine Navy, as one of the Major Commands of the Armed Forces of the Philippines (AFP).

• Executive Order No. 389 (December 23, 1950), Reorganizing the Armed Forces of the Philippines, created and organized the Philippine Navy as one of the Major Services of the AFP with primary concerns in operations at sea.

• Executive Order No. 292 (July 25, 1987), Administrative Code of 1987, provided for the powers, functions and organizational structure of the Philippine Navy as one of the Major Services of the AFP under the supervision and control of the Department of National Defense(DND).

Mandate

The Philippine Navy (PN) organizes, trains, deploys, and maintains forces for the prompt and sustained naval and maritime operations in support of the United Commands in the accomplishment of the AFP mission.

369 LOGICAL FRAMEWORK (PN)

Societal Goal National Security to Uphold Sovereignty and Territorial Integrity, Support Socio-Economic Development and Political Stability

Sectoral Goal Peaceful, Secure, and, Stable Internal and External Environment

Organizational Outcomes

Country Free Country Strengthened Defense-wide Lives Socio- from Insurgency, Secured f rom Security Alliance Capability Protected economic Secessionism, Direct-armed and Partnership Upgraded and Property Development and Other Aggression in the Asia- Preserved and Peace Armed Threats or Invasion Pacific Region, in Times of Process to National and, Stable War and Supported Security & Peaceful Other National International Emergencies Environment

MFOs Fleet-Marine Force Construction Capability & Engineering Services

Programs/Activities/Projects

Internal security operations Support to national development Territorial defense Disaster response Disaster response

International defense and security engagements

International humanitarian assistance and peacekeeping operations

370 PERFORMANCE MEASURES AND TARGETS (Amounts in Thousand Pesos)

FY 2009 FY 2010 FY 2011 Particulars Actual/Amount Target/ Amount Target/Amount

MFO 1 Fleet-Marine Force Capability 11,372,102 10,261,817 11,008,305

No. of navy units maintained/supported 20 20 20

Operational Tempo Total steaming time 58,214 56,756 56,756 Total nautical miles covered 450,038 368,913 368,913 Total flying time 2,390 2,858 2,858 Total nautical miles covered 253,021 285,800 285,800 No. of ground operations 2,039 2,000 2,000

MFO 2 Construction and Engineering Services 377,610 377,610 360,675

No. of navy units maintained/supported 1 1 1

Operational Tempo No. of buildings/other facilities constructed 65 95 65

TOTAL 1/ 11,749,712 10,639,427 11,368,980

Note: 1/ Includes Customs Duties and Taxes (P6.081M) and transfers from Miscellaneous Personnel Benefits Fund (475.836M), Pension and Gratuity Fund (722.543M) and Continuing Appropriations (P383.365M)

371 FY 2011 MFO BUDGET

By MFO/By Expense Class (In Thousand Pesos)

Particulars PS MOOE TOTAL % Share MFO 1 Fleet Marine Force Capability 7,439,626 3,568,679 11,008,305 96.83% MFO 2 Construction and Engineering Services 257,095 103,580 360,675 3.17% TOTAL 7,696,721 3,672,259 11,368,980 100% % Share 67.70% 32.30% 100%

By MFO (Total Budget = P11,368,980,000)

MFO 2 3.17% MFO 1 96.83%

By Expense Class (Total Budget = P11,368,980,000)

MOOE 32.30% PS 67.70%

372 General Headquarters, AFP

Legal Basis

General Headquarters, AFP • Commonwealth Act No. 1 (December 21, 1935), National Defense Act, created the Central General Staff, later named Armed Forces General Staff. • Executive Order No. 389 (December 23, 1950) transformed the Armed Forces of the Philippines (AFP) into the General Headquarters-Armed Forces of the Philippines (GHQ-AFP). • Executive Order No. 292 (July 25, 1987), Administrative Code of 1987, identified the structure of the AFP to consist of GHQ, the Major Services and other units, services and commands of the AFP.

Armed Forces of the Philippines Medical Center (AFPMC) • Commonwealth Act No. 1 (December 21, 1935), National Defense Act, created the AFP Medical Service. • Special Order No. 512 HPA (1946) created the Victoriano Luna General Hospital. • General Order No. 389 GHQ-AFP (May 7, 1970) renamed the Victoriano Luna General Hospital to V. Luna Medical Center. • General Order No. 258 (September 26, 1975) renamed the V. Luna Medical Center to Armed Forces of the Philippines Medical Center (AFPMC).

Philippine Military Academy (PMA) • Commonwealth Act No. 1 (December 21, 1935), National Defense Act, established the Philippine Military Academy (PMA).

Presidential Security Group (PSG) • General Order No. 212 GHQ, AFP (October 22, 1971) created the Presidential Security Command (PSC) as a unified command of the AFP. • General Order No. 60, GHQ-New Armed Forces of the Philippines (NAFP) (March 8, 1986) deactivated the PSC and activated the Presidential Security Group (PSG) as one of the support units of the NAFP.

Mandate

GHQ : The GHQ is tasked to exercise the command, direction of all AFP units “to protect and secure the sovereignty of the state and integrity of the national territory.” AFPMC : The AFPMC provides comprehensive quality tertiary healthcare services to AFP personnel, dependents, and authorized civilians through consultation and treatment in all health care fields of specialties; and complete diagnostic, therapeutic, and ancillary services. PMA : The PMA is mandated to instruct, train, and develop cadets to possess the character, the broad and basic military skills, and the education essential to the successful pursuit of a progressive military career. PSG : The PSG is tasked to provide security to the President of the Republic of the Philippines. It secures and protects the members of the First Family; visiting heads of States and Governments; the President’s residences, Offices, and places of presidential engagements and its environs.

373 LOGICAL FRAMEWORK (GHQ)

Societal Goal National Security to Uphold Sovereignty and Territorial Integrity, Support Socio-economic Development and Political Stability

Sectoral Goal Peaceful, Secure, and, Stable Internal and External Environment

Organizational Outcomes

A B C D E F Country Free Country Strengthened Defense-wide Lives Protected Socio- from Secured from Security Capability and Property economic Insurgency, Direct-Armed Alliance & Upgraded Preserved in Development Secessionism, Aggression or Partnership in Times of War and Peace and Other Invasion the Asia Pacific and Other Process Armed Threats Region, and, National Supported to National Stable & Emergencies Security Peaceful International Environment

MFOs A,B,C,D,E,F A, B,C,D,E,F A,B, C,D,E,F A,B,C,D,E,F

Management of Tertiary Health Care Military Education Presidential Security Joint Operations Services & Protection Services

P/A/Ps Military strategic Pre-commission Presidential security planning Tertiary health care (AFPMC) officer training (PMA) (PSG) Strategic command & control International humanitarian & peace keeping operations Special operations Strategic lift and mobility Joint service support Ordnance build up Joint education & training Reserve force administration and training Joint force preparedness

374 PERFORMANCE MEASURES AND TARGETS (Amounts in Thousand Pesos)

FY 2009 FY 2010 FY 2011 Particulars Actua/Amount Target/Amount Target/Amount

MFO 1 Management of Joint Operations 1/ 27,543,965 3,642,337 2/ 32,846,101

Readiness level 64% 68% 72% No. of joint operations 4,592 5,110 4,886 No. of United Nations missions 17 16 16 No. of bilateral/multilateral engagements 75 75 75 No. of nat’l development operations (Barangays) 199 200 200

MFO 2 Tertiary Health Care Services 967,180 963,097 1,102,359

Bed occupancy rate 68.83% 75% 75% No. of out-patient consultation 42,455 40,755 40,755 No. of bed-days utilized 298,273 328,500 328,500 No of in-patient 9,594 10,410 10,410

MFO 3 Military Education Services 573,829 548,464 608,388

No. of cadets trained 824 1,100 1,100 Cadet success rate 70% 85% 85%

MFO 4 Presidential Security and Protection Services 341,658 167,412 175,457

Presidential engagements 709 660 660 First Family engagements 7,989 420 420 Vital installations secured 12 12 12

TOTAL 29,426,632 5,321,310 34,732,305

Notes: 1/ Includes Fund 170-BCDA Fund (P305.621M), Fund 172-AFP Modernization Trust Fund (P1,240.452M), AFP Pension Benefits (P15,775.537M), Retirement Gratuity and Terminal Leave Benefits (P2,590.488M), Miscellaneous Personnel Benefits Fund (P129.592M), Customs Duties and Taxes (P1,006.302M), Kalayaan Barangay Program (P900M), Over-all Savings (P515.341M) and Continuing Appropriations (P1,967.313M) 2/ Includes AFP Pension Benefits (P24,107.630M)

375 FY 2011 MFO BUDGET

By MFO/By Expense Class (In Thousand Pesos) Particulars PS MOOE CO Total % Share

MFO 1 Management of Joint Operations 25,772,943 2,073,158 5,000,000 32,846,101 94.57% MFO 2 Tertiary Health Care Services 375,117 727,242 1,102,359 3.17% MFO 3 Military Education Services 488,015 118,373 2,000 608,388 1.75% MFO 4 Presidential Security and Protection Services 38,993 136,464 175,457 0.51% TOTAL 26,675,068 3,055,237 5,002,000 34,732,305 100% % Share 76.80% 8.80% 14.40% 100%

By MFO (Total Budget = P34,732,305,000)

MFO 3 MFO 2 1.75% MFO 4 3.17% 0.51%

MFO 1 94.57%

By Expense Class (Total Budget = P34,732,305,000)

CO 14.40% MOOE PS 8.80% 76.80%

376