Republic

Act No. 10816

May
16, 2016
Tags: agriculture, Benigno S. Aquino III,farming, Laws, Republic Acts, tourism
S. No. 3002
H. No. 5299
Republic of the Philippines
Congress of the Philippines
Metro Manila
Sixteenth Congress
Third Regular Session
Begun and held in Metro Manila, on Monday, the twenty-seventh day of July, two thousand fifteen.
[REPUBLIC ACT NO. 10816]
AN ACT PROVIDING FOR THE DEVELOPMENT AND PROMOTION OF FARM TOURISM IN THE PHILIPPINES
Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:
SECTION 1. Short Title. This Act shall be known as the Farm Tourism Development Act of 2016.
SEC. 2. Declaration of Policy. The State recognizes the importance of agriculture in making available food and other products
necessary to sustain and enhance human life, and in providing livelihood to a major portion of the population.
The State further recognizes that tourism, coupled with agriculture extension services, can disseminate the value of agriculture in the
economic and cultural development of the country, serve as a catalyst for the development of agriculture and fishery communities, and
provide additional income for farmers, farmworkers, and fisherfolk.
The State shall also seek to promote environment-friendly, efficient and sustainable farm practices; provide alternative recreation
facilities and farm tourism activities for families, students and other clientele; and promote health and wellness with high-quality farmproduced food.
To maximize the benefits that can be derived from agriculture and tourism combined, it is therefore the declared policy of the State to
provide the policy and enabling environment for the encouragement, development and promotion of farm tourism in the country.
Sec. 3. Definition of Terms. As used in this Act, the following terms shall mean as follows:
(a) Farm tourism the practice of attracting visitors and tourists to farm areas for production, educational and recreational purposes. It
involves any agricultural or fishery based operation or activity that brings to a farm visitors, tourists, farmers and fisherfolk who want
to be educated and trained on farming and its related activities, and provides a venue for outdoor recreation and accessible family
outings;
(b) Farm tourism activity any activity carried out on a farm that allows visitors and tourists to enjoy farming or fishing experience
through education, recreation or leisure;
(c) Farm tourism camp any farm area that allows visitors and tourists to visit, get involved in farm activities, and to enjoy and learn
rural lifestyle;

(d) Farm tourism operator any person, company or recognized group, who is the owner or overall in charge of a farm tourism camp;
(e) Farm tourism practitioner any person who is engaged in providing one or more farm tourism activities; and
(f) Accreditation a certification officially recognizing a farm tourism camp as having complied with the minimum standards for farm
tourism.
SEC. 4. Farm Tourism Strategic Action Plan. There is hereby mandated the formulation and implementation of the Farm Tourism
Strategic Action Plan, herein referred to as the Plan, which shall be the comprehensive set of programs, projects and activities for the
growth of farm tourism in the country. The Plan shall be integrated and be made consistent with the National Tourism Development
Plan.
The Plan shall cover, among others, the following areas of concern: investment promotion and financing; market research, trends,
innovations, and information; accreditation of farm tourism camps; market promotion and development; agriculture and fishery
research, development and extension; institutional and human resource development; and infrastructure support. It shall likewise define
the roles and responsibilities of national government agencies, local government units (LGUs), farm tourism operators, tour operators,
educational institutions, and other industry stakeholders in the implementation of the Plan.
SEC. 5. Creation of the Farm Tourism Development Board. To ensure the attainment of the objectives of this Act, there is hereby
created the Farm Tourism Development Board, herein referred to as the Board, which shall be attached to the Department of Tourism
(DOT). The Board shall formulate plans and programs for the development and promotion of farm tourism in the country and shall set
the overall direction for the implementation of the Plan.
The Board shall have the following powers and functions:
(a) Formulate, advocate, coordinate, oversee and assess the implementation of the Farm Tourism Strategic Action Plan;
(b) Increase awareness on the value of farm tourism through advocacy campaigns and marketing activities;
(c) Recommend infrastructure projects and transportation programs for funding by the DOT, the Department of Agriculture (DA), the
Tourism Infrastructure and Enterprise Zone Authority (TIEZA), the Department of Public Works and Highways (DPWH), the Department
of Transportation and Communications (DOTC), and other concerned government agencies;
(d) Formulate and oversee the conduct of farm tourism research and development projects to ensure sustainability of the countrys farm
tourism program, such as on market research, trends and innovations, and information dissemination; financing requirements; industry
manpower development; resource productivity and utilization improvement; and sustainable agriculture practices and education;
(e) Create technical panels, working groups, or task forces that will assist the Board in the performance of its functions;
(f) Establish cooperation among, and/or request the assistance of, departments, bureaus, offices, agencies or instrumentalities of the
government, farm tourism stakeholders, financial and educational institutions, nongovernment organizations, peoples organizations
and other like-minded institutions and individuals in the implementation of its functions and the attainment of the objectives of this Act;
and
(g) Perform such other powers and functions which shall advance the development and promotion of farm tourism camps and activities.
SEC. 6. Composition. The Farm Tourism Development Board shall be composed of the following:
(a) Secretary of the DOT as Chairperson;
(b) Secretary of the DA as Vice-Chairperson;

(c) Secretary of the Department of Trade and Industry (DTI);

(d) The president of an educational institution providing farm tourism programs, to be identified by the DOT and the DA;
(e) The president of a national farm tourism organization;
(f) The president of a national inbound tour operators association; and
(g) The president of a national federation of farmers cooperatives.
The DOT Secretary may designate the Undersecretary for Tourism Development as his/her alternate, and the DA and the DTI
Secretaries may designate their respective alternates who shall be at least Bureau Director in rank, and their acts shall be considered
the acts of their principals.
SEC. 7. Board Secretariat. There shall be a Board Secretariat to be composed of the DOT Office of Tourism Development Planning,
Research and Information Management, and other technical personnel of the DOT, the DA and the DTI as assigned by their respective
Secretaries. The Director of the Office of Tourism Development Planning, Research and Information Management shall head the Board
Secretariat.
SEC 8. Investment Promotion, Financing and Incentives. The DOT, the DA and the DTI shall develop programs linking stakeholders
in the farm tourism industry, government financial institutions (GFIs), government-owned or -controlled corporations (GOCCs), private
banks, financial cooperatives and other lending institutions to increase access to credit for farm tourism. The Land Bank of the
Philippines, the Development Bank of the Philippines, the Small Business Corporation, and other government corporations and
instrumentalities providing financing programs shall create lending windows to cater to the development of farm tourism camps and
activities.
The TIEZA and the Board of Investments, and other investment promotion agencies, shall develop and implement programs that shall
establish reasonable and innovative investment incentives to attract more investors and farm tourism practitioners in the farm tourism
industry.
Farm tourism operators and practitioners may avail o: incentives under existing laws.
SEC 9. Market Research and Information. The DOT Office of Tourism Development Planning, Research and Information
Management and the Agricultural Training Institute (ATI) o: the DA shall conduct researches and studies on farm tourisim market,
trends and innovations, industry manpower needs and development; sustainable agriculture practices and education, and other issues
that may be identified by the Board.
The DOT and the DA shall collaborate and maintain a comprehensive farm tourism information system to assist the government in
formulating plans and programs on farm tourism development and to enable industry stakeholders respond to the needs of the market.
The information system shall contain information and statistics on farm tourism camps and activities, market researches, accessibility
and available modes of transportation, publications and research materials, and other information as identified by the Board.
SEC. 10. Accreditation of Farm Tourism Camps. The DOT and the DA shall jointly promulgate and enforce the standards and
guidelines on the accreditation of farm tourism camps.
Accreditation shall be on a voluntary basis and shall be valid for two (2) years.
Accreditation may be suspended or revoked for any violation of the standards.
SEC. 11. Market Promotion and Development. The DOT and the Tourism Promotions Board, the DA, the DTI and LGUs shall include
farm tourism in their marketing and promotions programs, and support operators of accredited farm tourism camps and their
associations in conducting and joining local and international conferences, congresses, trade fairs, and exhibits.

Inbound tour operators shall include accredited farm tourism camps as part of their suggested itineraries.
The ATI and the Technical Education and Skills Development Authority (TESDA) shall showcase farm tourism camps and activities as a
way of promoting sustainable agriculture. The ATI shall encourage farm tourism camps to become learning sites and accredited
extension service providers, and the TESDA shall accredit farm tourism camps as technical vocational institutions for agriculture and
tourism courses.
The DTI Bureau of Small and Medium Enterprise Development and the Bureau of Domestic Trade Promotion and the DA
Agribusiness and Marketing Assistance Service shall assist farm tourism operators and practitioners in the marketing and distribution of
their products, and link them with consumers cooperatives and organizations, and retailers.
The DOT, the DA, and the Philippine Information Agency (PIA) shall launch and pursue a nationwide campaign to promote farm tourism
and accredited farm tourism camps, and promote the principle of sustainable development. For this purpose, the DOT and the DA shall
encourage the establishment of at leas one (1) farm tourism camp in every province in the country.
SEC. 12. Agriculture and Fishery Research, Development and Extension. The Philippine Council for Agriculture, Aquatic and Natural
Resources Research and Development and the Bureau of Agricultural Research shall include the technology needs on farm tourism
camps in the research and development programs in agriculture, aquatic and natural resources and shall disseminate such results to
the DOT, the DA, the DTI, other concerned government agencies, farm tourism operators and practitioners, state universities and
colleges (SUCs) and private educational institutions offering educational programs on farm tourism development, and organizations
engaged in farm tourism
The ATI, together with the Cooperative Development Authority (CDA), SUCs, educational and research institutions and other relevant
government agencies shall develop and implement programs for the adoption of technologies appropriate for farm tourism, provide
adequate training and agricultural extension services for farm tourism practitioners and operators and strengthen farm tourism
cooperatives and organizations.
SEC. 13. Institutional and Human Resource Development The DOT, the DA, the DTI, the Department of Science and Technology
(DOST), the Commission on Higher Education (CHED), the TESDA, SUCs, private educational and research institutions, and other
private sector groups shall establish ant implement an institutional and human resource development program for farm tourism
development, which shall include, but not be limited to:
(a) Capacity building for farm tourism operators to enable them to comply with the DOT, the ATI and the TESDA accreditations
standards as primary or secondary tourism enterprises, as extension service providers, and as technical vocational institutions,
respectively;
(b) Technical-vocational education and training for farm tourism industry practitioners, including farm tourism camp workers, to actively
contribute to productivity, the practice of good agricultural, animal husbandry and manufacturing practices, compliance to food safety,
health, hygiene and sanitation standards, and adherence to hospitality management practices;
(c) Formulation and implementation of competency standards and training regulations for technical-vocational education and training
for the farm tourism industry; and
(d) Capability building for LGUs in the promotion, development and sustainability of farm tourism camps and activities.
SEC. 14. Infrastructure Support. The DPWH, the DOTC, the DA, and other infrastructure agencies shall include in their annual
development plans and priority investment programs infrastructure projects and transportation programs to expand access to farm
tourism camps. The DOT and the DA shall coordinate with these agencies the infrastructure requirements of established and potential
farm tourism camps.

SEC. 15. Implementing Rules and Regulations. The Board, in consultation with concerned government agencies, LGUs and their
leagues, and farm tourism industry stakeholders, shall issue the implementing rules and regulations within ninety (90) days starting
from the effectivity of this Act.
SEC. 16. Repealing Clause. All laws, decrees, executive orders, rules and regulations and other issuances or parts thereof,
inconsistent with the provisions of this Act, are hereby repealed or modified accordingly.
SEC. 17. Separability Clause. If any part or provision of this Act is declared unconstitutional or invalid, other parts or provisions herein
which are not affected thereby shall continue i be in full force and effect.
SEC. 18. Effectivity. This Act shall take effect fifteen (15) days after its publication in theOfficial Gazette or in a nation newspaper of
general circulation.
Approved,
(Sgd.) FRANKLIN M.
DRILON
President of the Senate

(Sgd.) FELICIANO
BELMONTE JR.
Speaker of the House
of Representatives

This Act which is a consolidation of Senate Bill No. 3002 and House Bill No. 5299 was finally passed by the Senate ar the House of
Representatives on February 2, 2016.

(Sgd.) OSCAR G. YABES

Secretary of the Senate

(Sgd.) MARILYN B. BARUAYAP

Secretary General
House of Representatives

Approved: MAY 16 2016

(Sgd.) BENIGNO S. AQUINO III
President of the Philippines
http://www.gov.ph/2016/05/16/republic-act-no-10816/

Through our Tourism Development Program, we have created 4.8 million more jobs in 2014 alone by attracting 4.8 million foreign
tourists. We continue to maximize our gains by investing P4.3 billion in 2016 to intensify our tourism promotion for the branding
campaigns and market development initiatives of the Department of Tourism and the Tourism Promotions Board. In addition, we are
investing P24.0 billion to build infrastructure that will make tourism destinations more accessible to visitors.
President
July
28, 2015
Aquinos message on the National Budget for Fiscal Year 2016
Tags: Benigno S. Aquino III, budget, Budget Message, Budget Messages, messages
Message
of
His Excellency Benigno S. Aquino III
President of the Philippines
To the Sixteenth Congress of the Philippines
On the National Budget for Fiscal Year 2016
[Released on July 28, 2015]

Ladies and Gentlemen of the

16th Congress of the Philippines:
By the mandate vested upon me by the sovereign will of the Filipino people, I have the honor to submit to you, through the President of
the Senate and the Speaker of the House of Representatives, the Proposed National Budget for 2016.
Our Continuing Journey Along the Daang Matuwid
I took my oath of office on June 30, 2010, fully aware of the great responsibility that rested upon my shoulders. We knew from the start
that our journey along the Daang Matuwidwould be difficult. We knew that dealing with the root causes of corruption, especially the
deeply entrenched patronage system, that had weakened the capability of our public institutions to govern and serve, was easier said
than done.
In spite of these formidable challenges, we carried on. Driven by the hopes and dreams of the people who installed us to power, we
fought hard to make the impossible possible:
To confront powerful and deeply entrenched vested interests by implementing game-changing reforms;
To expand our scarce resources without imposing new taxes, except through the Sin Tax Reform Law;
To make up for the lost opportunity in the past decade and reduce poverty incidence from 28.6 percent in 2009 to 25.8 percent in
2014[1] by transforming the way we deliver basic services;
To achieve growth and rejuvenate the investing communitys confidence in our country.
Our people dared us to demonstrate how good governance leads to better performance and brings them meaningful benefits. By
delivering the real and measurable dividends of good governance, we enabled our countrymen to aspire for greater prosperity for
themselves and their country.
Sa sama-sama nating pagsulong sa Daang Matuwid, narating ng ating bansa ang bagong yugto ng kaunlaran[2].
Our country is now on the cusp of a sustained and accelerated growth path. Our firm commitment to good governance has allowed us
to set the stage for a transformed economy, driven by local and foreign investments and the emergence of a robust middle class. Our
vision of People Powera citizenry empowered to steer the direction of their government and societyis now taking shape because of
our peoples staunch support and unrelenting demand for change.
We are still faced with the daunting tasks of sustaining the countrys upward growth and helping more Filipinos out of poverty. We
continue to face obstacles that could derail our momentumthe machinations of a powerful few to backslide to their positions of
privilege, as well as our own missteps. Paradoxically, we also now have to contend with more complex challenges that have surfaced
because of our achievements.
In the face of all of these, we must continue to stand on the solid platform of good and effective governance.
To achieve inclusive development, we must sustain, if not intensify, governance reforms so that we can tackle the institutional
weaknesses that hamper the timely and effective delivery of services. We must continue to transform the bureaucracy to become one
that is nimble and capable of creating solutions to the emerging challenges of our time.
Moreover, as we establish greater efficiency, integrity, and transparency in government, we must deepen the participation of citizens in
the way public institutions operate. Only by doing this can we fulfill the vision of People Power.

Beginning today until June 30, 2016, we must prepare the way for the next administration to build on our achievements and bring our
country to a higher path of prosperity. We must remain faithful to our Social Contract with the Filipino People: to lead the charge for
honest and effective governanceespecially in how taxes are spent.
Sa paggugol na matuwid, nagtatatag tayo ng matibay na saligan ng tuloy-tuloy na pag-unlad[3].

The 2016 Proposed National Budget for

Inclusive Development Through Sustained Reform
The Budget is central to our pursuit of inclusive development. Since the start of our term, we have introduced reforms that ensure that
the government spends within its means,invests in the right priorities, and delivers measurable results for our people. We are driven by
our belief that the Budget is the governments most potent instrument in achieving its development goals.
Through the Budget, we set the pace and tone of governance reform: from establishing tighter controls against corruption, to improving
the capability of public institutions to deliver services while being held accountable for their performance. Moreover, we use the Budget
to empower citizens in statecraft through greater transparency, accountability, and public engagement.
Ladies and gentlemen of the 16th Congress: today, I submit a proposed National Budget that is designed to consolidate the reforms that
we have introduced since 2010 and provide a strong foundation for Inclusive Development.
This P3-trillion Budget is anchored on four principles that define public financial management under our administrationprinciples that
must continue to characterize budgeting and management beyond our term:
Spending Within Our Means. This Budget was designed to dramatically boost revenue collections, reduce the debt burden, contain the
fiscal deficit, and keep public spending within the authority set by Congressensuring that our successor inherits a healthy treasury.
Investing in the Right Priorities. This Budget makes inclusive growth an achievable goal and not a mere aspiration by focusing our
scarce resources on programs that have the greatest impact in improving the lives of our people, especially those in the poorest
communities.
Delivering Measurable Results. This Budget addresses the institutional weaknesses that prevent key agencies from delivering services
in a timely way and with impact, while likewise leveraging alternative means of delivery together with the private sector and local
governments.
Empowering Citizens through the Budget. This Budget allows us to intensify our pursuit of transparency, accountability, and
participation: to empower the peoplewho installed us to power in the first placeto take an active part in our quest for inclusive
growth.

Spending Within Our Means

The 2016 Budget will enable us to continue addressing our peoples urgent needs while fulfilling our commitment to fiscal responsibility.
Because of our efforts to boost revenue collections, deftly manage our debt and liabilities, and dramatically curb leakages and
inefficiencies in spending systems, we have almost doubled our Budget from P1.541 trillion to P3.002 trillion in the last six fiscal years.
We knew that we could only finance our Social Contract with the People by pursuing reforms relentlessly. Thus, we vigorously ran after
tax evaders, smugglers, and their collaborators in government, and brought them to justice. We plugged loopholes in our tax collection

systems and boldly shook up the Bureau of Customs. We recalibrated our borrowing strategy to develop our domestic capital market,
lengthen the maturities of our liabilities, and lessen risks in our debt portfolio. We pursued public expenditure reforms to free up more
resources for urgently needed services.
As a result, our revenue effort improved to 15.1 percent of GDP in 2014, from a low of 13.4 percent in 2010. This has enabled us to
reduce our fiscal deficit to below 2 percent of GDP in the last two years, from 3.5 percent of GDP in 2010. Our debt stock declined to
45.4 percent of GDP in 2014 from 52.4 percent in 2010. In the same period, we eased the burden of interest payments to 16.8 percent
of total revenues, from 24.4 percent when we assumed office. These established a virtuous cycle of fiscal stability which restored our
governments credibility in the domestic and international marketdemonstrated by the successive investment-grade credit rating
upgrades that we have achieved during our term.
Because of good governance, our economy has become among the fastest-growing in Asia and among the fastest-rising in global
competitiveness benchmarks.
To sustain our growth trajectory, we must continue to be vigilant against volatilities in the global market and mitigate their impact on our
domestic economy. We must continue to look out for opportunities to improve the lives of our people. We must address the key issues
encountered by agencies in spending their budgets in a timely manner and with impact. With the measures we established to curb
underspending as well as to sustain the confidence of the private sector, we continue to aspire for a 7- to 8-percent GDP growth in
2015, 2016, and beyond.
Fiscal Program. The continued growth of our economy, combined with sustained revenue reforms, will enable us to collect P2.7 trillion
in revenues next year: an 18.5-percent increase from projected revenue collections in 2015. This boosts our capacity to address the
needs and wants of our people without ballooning our national debt.
Because of increased revenues, our nominal fiscal deficit will increase by only 8.8 percent year-on-year. We must keep the deficit
within 2 percent of GDP over the medium-term to boost public spending while reducing our outstanding debts. Only by doing so can we
sustain economic growth and poverty reduction while maintaining our newfound credibility with the investing public.
Table 1: National Government (NG) Fiscal Program, 2014-2018
2010

2011

2012

2013

2014

2015

2016

Revenues

1,208

1,360

1,535

1,716

1,909

2,275

2,697

Disbursements

1,552

1,558

1,778

1,880

1,982

2,559

3,006

Balance

(314.5)

(197.8)

(242.8)

(164.0)

(73.1)

(283.7)

(308.7)

Revenues

13.4

14.0

14.5

14.9

15.1

16.3

17.5

Disbursements

16.9

16.0

16.8

16.3

15.7

18.4

19.5

Balance

(3.5)

(2.0)

(2.3)

(1.4)

(0.6)

(2.0)

(2.0)

Levels (in PhP Billion)

Percent of GDP (%)

Note: 2010-2014 figures are actual and 2015-2016 are based on program
Revenues. We must persevere with our reform agenda to further increase our revenue effort to 17.5 percent of GDP in 2016. The
Bureau of Internal Revenue will continue to aggressively pursue tax evaders and streamline its tax collection processes. The ongoing
revamp of the Bureau of Customsfrom a stronghold of smugglers to a paragon of good governancewill continue.

However, we, in the Executive, cannot successfully push for revenue reforms alone. I am confident that the people can rely on
Congress, too, to support crucial revenue reforms, as it had done with the Sin Tax Reform Law. I ask Congress to pass the Fiscal
Incentives Rationalization Bill and the Tax Incentives Management and Transparency Act to bring greater transparency, efficiency, and
accountability into our incentives system while providing competitive incentives to investors.
Borrowings and Debt. Because of our fiscal consolidation efforts, we will need to borrow only P674.8 billion to finance the projected
P308.7-billion deficit, to amortize P347.7 billion of our maturing outstanding debt, while maintaining sufficient available cash[4]. This will
enable us to further reduce our debt stock to 41.8 percent of GDP by end-2016.
Figure 1: NG Outstanding Debt, 2007 to 2018

Note: 2007-2014 are actual outturns while 2015-2018 are based on projections
We have set the stage for the next administration to further improve the financial condition of the government by reducing the cost of
our borrowings and lessening risks associated with foreign-denominated debts. If the succeeding administration sustains our
commitment to fiscal consolidation, it can further reduce the debt stock below 40 percent of GDP by its second year in office.
Expenditures. Because we established a regime of fiscal sustainability and disciplined resource allocation, we are now able to meet
our peoples needs and mitigate their suffering sooner. We began with the Zero-Based Budgeting approach, and we continue to reform
public expenditure management to restructure the Budget. As a result, we have widened our fiscal space[5]the portion of the Budget
available for new programs and projects or the expansion of existing onesfrom a measly 42.7 billion in 2010 to 582.7 billion in 2016.
We intensified these reforms as we prepared our final Budget by introducing the Two-Tier Budgeting Approach: a process that
enabled us to free up more resources for our peoples most urgent priorities over the medium-term.
Figure 2: NG Fiscal Space, 2010 to 2016

Note: the obligation ceiling pertains to the total Budget program

Under the first tier, we critically examined overhead expenditures as well as ongoing programs and projects of agencies against their
real requirements and their current performance. The forward cost of these ongoing expenditures reached P2.419 trillion, leaving a
balance or fiscal space of P582.7 billion for 2016: more than double the P287.3-billion fiscal space in 2015.
Under the second tier, where we allocated our fiscal space, we prioritized new or expanded programs and projects that meet the
objectives of our Budget Priorities Framework. In addition, we tasked agencies to develop implementation-ready proposals:
disaggregated into specific programs and projects; their beneficiaries and locations are targeted in a precise manner; and mechanisms
to measure their impact are in place.

Investing in the Right Priorities

We have never been more explicit: the Budget must fund only programs and projects that have real and measurable impact on the lives
of our people.
We have rolled out reforms that enshrine greater discipline in allocating resources. TheZero-Based Budgeting approach rigorously
examines programs and cancels those prone to leakages and those that failed to deliver results. The Program Budgeting
Approachstrengthens collaboration among agencies to meet the cross-cutting goals of the Philippine Development Plan. The Budget
Priorities Framework focuses our scarce resources on the five priority areas of the Social Contract with the Filipino People and on the
needs of the 44 poorest and most climate-vulnerable provinces.
These reforms have allowed us to dramatically reshape the Budget. In 2005, P32 for every P100 was eaten up by the Debt Burden; it
will be halved to P15 this year and further reduced to P14 in 2016. Combined expenditures for Social and Economic Services have
increased in the last decade, from P45 for every P100 in 2005 to P64 in 2015 and P64.50 in 2016. Meanwhile, our other expenses to
run the government and ensure peace and security have remained relatively stable at P21.50 per P100.
Allow me to broadly discuss our priority investments for 2016, consistent with the Budget Priorities Framework:
Figure 3: The Budget for Key Sectors as % of Total, 2006 to 2016

Note: 2006-2014 are based on actual obligations; 2015-2016 are based on program.
Good Governance and Anti-Corruption. Since 2010, the Philippines has leapfrogged in international governance benchmarks. Our
unrelenting fight against corruption enabled our country to rise by a total of 49 places to 85th of 175 countries in the 2014 Corruption
Perceptions Index. Our efforts to streamline frontline services and establish regulatory stability pushed our country up by 33 places to
52nd of 144 countries in the 2014-2015 Global Competitiveness Index (GCI) and by 49 places to 95th of 189 countries in the 2015 Ease
of Doing Business Index. These clearly demonstrate that our country has regained the trust and confidence of our people and the
investment community.
We must leverage the 2016 Budget to further lock in good governance reforms. Of primary importance are policies that strengthen the
capacity of public institutions to deliver services: from dramatically reducing lump sum funds, to providing more resources to hire
technical staff needed to enable agencies to implement programs and projects.[6]
Trustworthy and capable leadership is essential to good governance. We must therefore ensure honest, orderly, and peaceful elections.
Thus, the Commission on Elections (COMELEC) has been allocated P13.0 billion in 2016 to administer the National and Local
Elections, as well as the Barangay and Sangguniang Kabataan Elections. This will also enable Filipinos overseas to vote for national
officials. Together with its P13.7-billion budget in 2015, COMELECs operations for the 2016 elections will be amply funded.
To restore trust in public institutions, investments in fighting corruption will continue. The Office of the Ombudsman will receive P1.78
billion next yeara cumulative 68-percent increase from its P1.06-billion budget in 2010enabling it to more vigorously prosecute
corruption cases. Also, P505.9 million will enable the Sandiganbayan to adjudicate these cases expeditiously. This budget51 percent
larger than in 2010will cover the creation of two more divisions to ease its case backlogs. Furthermore, the Commission on Audit will
have P9.13 billion in 2016almost 140 percent more than its budget in 2010to bolster its auditing services, especially to conduct
special and fraud audits, by leveraging technology and hiring more auditors, lawyers, and other experts.
In all these efforts, a well-motivated and performance- oriented government workforce is critical. Thus, with its P16.8-billion allocation
for 2016, the Performance-Based Incentive System will continue to recognize and reward public servants who surpass their targets.
This will make sure that the individual public servants performance determines his rewards, leading to a more efficient and dedicated
bureaucracy. Also integrated into this Budget is a proposal to make government compensation as competitive as that of the private
sector, in a manner that tightly links pay received to performance delivered.
Making Growth Inclusive. To reduce poverty incidence to the 18 to 20 percent range by 2016, we have, since 2010, revamped our
social service delivery strategy and focused spending on well-designed and sharply targeted programs for the poor.
One such step is the expansion of thePantawid Pamilyang Pilipino Program (4Ps) of the Department of Social Welfare and
Development (DSWD) to help the poorest families keep their children in school all the way to high school, access healthcare services,
and gain meaningful work.

For 2016, we propose P62.7-billion to benefit 4.6 million poor households.[7] This will also support the ongoing update of the National
Household Targeting System for Poverty Reduction, which is critical especially after the extensive destruction brought by Typhoon
Yolanda.
We will also refocus spending to support households especially those graduating from the 4Ps in obtaining gainful employment and
livelihood. Thus, we more-than-doubled the budget of the Sustainable Livelihood Program to P9.6 billion and set aside almost P11
billion for the continuation of the National Community-Driven Development Program.
We continue to nurture the potential of our people to create prosperity for themselves through their skills and hard work.
Education is still our top budgetary priority. For 2016, the budget of this sector increased by 21 percent to P547.3 billion. In particular,
this amount will enable the Department of Education (DepEd) to continue implementing the K-12 Basic Education Reform Program,
including the first year of senior high school in 2016. After finally closing the inherited backlog in the supply of classrooms and teachers,
today, we invest in improving the quality of education to better prepare our graduates for work or higher education.
We have allotted more resources to secure the health of our people through Kalusugang Pangkalahatan. For 2016, we increased the
health sectors budget by 38 percent to P132.7 billion. This will enable the Department of Health (DoH) to build more PhilHealthaccredited basic health facilities in the barangays, deploy more healthcare workers to the countryside, and provide adequate health
insurance to the poorest families.
Moreover, P3.45 billion[8] will fund the First 1,000 Days Intervention Package for its pilot run in 10 provinces with the largest poor
population. This will promote early childhood care and development, and synergize government efforts to improve maternal health and
reduce child mortality and malnutrition.
The people in the most vulnerable communitiesthose without shelter, as well as those living in constant dangerhave benefitted
from the construction and repair of 433,908 decent housing units[9]: more than any past administration has achieved. While the
provision of in-city housing remains our priority, we acknowledge that this has been more difficult due to the prohibitive price of land and
zoning issues.
However, this constraint does not deter us from increasing our investments in socialized housing to P33.0 billion next year from almost
P11.0 billion this year. Included in this amount is P25.6 billion to complete our coverage of the 205,128 victims of Typhoon Yolanda[10].
Furthermore, to energize the farthest-flung barangays and sitios, we have invested a total of P25.0 billion for rural electrification[11]
almost four times the combined spending of the three previous administrationsenabling us to so far provide electricity to 25,257 sitios
as of June 2015. For 2016, we increased the budget for the Sitio Electrification Program to P2.8 billion from P1.5 billion this year to
complete the electrification of 32,441 sitios in the country.
Sustaining the Growth Momentum. When we assumed office, public infrastructure spending was only at about 2 percent of GDP, not
even half the level being spent by peer countries. This was worsened by the poor quality of infrastructure: the countrys rank on the GCI
Infrastructure pillar[12] fell to 104th of 139 countries in 2010, from 88th of 125 in 2006. Corruption plagued the sector, where collusion
among bidders and government officials resulted in substandard and unsafe infrastructure.
Thus, we implemented bold reforms to ensure that we spend on the right projects at the right cost and with the right quality. The
Department of Public Works and Highways (DPWH) has been implementing measures to objectively select projects, reform project
specifications and cost structures, and streamline procurement processes. We have put in place other major reforms, such as the
Public-Private Partnership (PPP) program to entice private sector investment in big-ticket infrastructure projects[13]; revamped the
design and implementation of farm-to-market roads; and adopted build back better standards to make public infrastructures more
resilient to climate change.
As a result, our countrys rank in the GCI Infrastructure pillar has recovered to 91st of 144 countries in 2014-2015. Moreover,
infrastructure investments have increased to 3 percent of GDP in 2014 and 4 percent this year.

For 2016, total infrastructure outlays will jump by 29 percent year-on-year to P766.5 billion, equivalent to 5 percent of GDP. This will,
among others, bankroll crucial transport infrastructure to declog our congested growth centers and bring opportunities to the margins.
Figure 4: The Infrastructure Budget, 2009 to 2016

Note: 2009-2013 are based on actual obligations; 2014-2016 are based on program.
Of this total, the DPWH will have P268.4 billion to, among others, pave all national roads by 2016 and construct access roads to
airports, seaports, and tourist destinations. The Department of Transportation and Communications will use P10.2 billion to construct or
improve airports and seaports; and P15.7 billion to rehabilitate and expand mass railway systems.
In addition to infrastructure, this Budget invests in strategic support services to boost agriculture, revitalize the manufacturing sector,
and further expand the tourism industry.
The agriculture sector remains at the core of our quest for inclusive growth. With a P93.4-billion budget, the Department of Agriculture
seeks to increase yields and improve farmers incomes by providing farm-to-market roads and irrigation services, as well as targeted
support services to help farmers diversify their crops, reach the right markets, and leverage research. In its final stages of its land
tenure program, the Department of Agrarian Reform (DAR) will have P4.5 billion for the acquisition and distribution of covered lands to
farmer-beneficiaries.
With the manufacturing sector growing faster than our GDP, this Budget continues to support our Manufacturing Resurgence Program
to enable small- and medium-scale enterprises (SMEs) to flourish. In particular, we allocated P780 million for the Small Enterprise
Technology Upgrading Program to assist 2,150 SMEs; and P201 million to establish 68 more Negosyo Centers to provide business
registration and advisory services to 6,800 SMEs. In addition, P10.6 billion has been set aside for various technical-vocational and
tertiary education scholarships. We recognize that a modernizing economy requires a quality workforce.
Through our Tourism Development Program, we have created 4.8 million more jobs in 2014 alone by attracting 4.8 million foreign
tourists. We continue to maximize our gains by investing P4.3 billion in 2016 to intensify our tourism promotion for the branding

campaigns and market development initiatives of the Department of Tourism and the Tourism Promotions Board. In addition, we are
investing P24.0 billion to build infrastructure that will make tourism destinations more accessible to visitors.
Climate Change Adaptation and Disaster Risk Reduction. Through Typhoon Yolanda, we have seen how the climates new normal
has wrought unimaginable suffering to our people. We owe it to them to hasten and boost our rehabilitation and reconstruction efforts.
The government has so far released a total of P87.4 billion since 2013 to provide housing and livelihood assistance for victims, as well
as to rehabilitate damaged infrastructure and facilities. We ask Congress to support an additional P18.9 billion to bankroll the Yolanda
Comprehensive Rehabilitation and Recovery Plan[14] as well as the P25.6 billion for housing for Yolanda victims.
Our investments in disaster risk management have so far strengthened the resilience of communities most vulnerable to calamities. For
one, this Budget provides P59.8 billionfrom merely P14 billion in 2010to enable the DPWH to continue to construct flood control
facilities, especially in the 18 major river basins and principal rivers and watersheds. So far, 14.5 percent of the total area within the 56
priority river basins are already protected from floods, from 12.8 percent in 2011. This will further increase to 19.7 percent by 2016.
The government has also been boosting investments in state-of-the-art early warning systems and environmental resiliency: For
instance, our Project NOAH[15] has so far exceeded its target to upgrade the countrys weather and flood forecasting capability. In
addition, by 2016, our countrys first micro-satellite, called Diwata, is expected to take off and provide real-time weather information.
These innovations empower our countrymen with real-time and accurate information on disaster risks. Meanwhile, we will complete our
six-year National Greening Program with P10.2 billionalmost ten times larger than its budget in 2011to complete the reforestation
of 1.5 million hectares by 2016, and to ensure that all trees planted are accounted for through geo-tagging and drone technology.
We also saw it fit to increase the National Disaster Risk Reduction and Management Fund (NDRRMF) under our term to provide ample
funding to address the new normal of climate change: from P2 billion in 2010[16]when we assumed office, to a whopping P38.9 billion
under the 2016 Budget[17]. In addition, this Budget provides a total of P5.7 billion in Quick Response Funds under the budgets of key
implementing agencies[18].
Forging Just and Lasting Peace. This Budget was crafted based on the belief that prosperity gravitates to areas where peace and the
rule of law reign.
Achieving lasting peace in Mindanao is at hand; we are about to see the end of decades of strife and poverty. The Comprehensive
Agreement on the Bangsamoro was but the start of a peace process that would provide our Muslim brothers and sisters the means to
create progress for themselves while preserving their cultural heritage. I urge Congress to pass the Bangsamoro Basic Law and let
peace and prosperity reign in the South.
Even under the current framework, we have already hiked investments in improving governance and delivering much-needed services
in the Autonomous Region in Muslim Mindanao (ARMM). Under our watch, the budget of ARMM has almost tripled from P10.4 billion in
2010 to P29.4 billion in 2016 to boost the delivery of social services and access to infrastructure such as roads and water facilities. In
addition, national government agencies will implement P25.1 billion in socio-economic programs and projects in the region next year.
Our investments since 2010 have so far made an impact in improving life expectancy, family income, and other human outcomes in the
violence-torn region. The proposed allocations for 2016 should enable the future Bangsamoro Autonomous Region to establish a
regime of peace, democracy, and meaningful development.
We continue to invest in initiatives that address the root causes of conflict: poverty and injustice. Thus, we will boost the Payapa at
Masaganang Pamayanan or PAMANA Program with a P12.8-billion budget in 2016P5.5 billion more than its allocation this yearto
deliver basic services to conflict-affected areas throughout the archipelago.
To reinforce the environment for peace and the rule of law, the Revised Armed Forces of the Philippines Modernization Program will
continue to receive substantial support with P25.0 billion. This is on top of the P78.9-billion budget for the territorial defense, security,
and stability services of the Army, the Navy, and the Air Force. Because of our commitment to upgrade the capability of our armed
forces to protect our national sovereignty, we have so far acquired modern and brand-new equipment: including the two Hamilton-Class
cutters that we have been using, as well as the 12 FA-50 fighter jets and the eight Bell 412 combat utility helicopters that are now being
delivered.

Likewise, the modernization of the Philippine National Police, through a P88.3-billion budget,[19] will continue to bolster internal
security. Our investments to upgrade the capacity of our police force have so far yielded positive results: from achieving a 1:1 police-topistol ratio for the first time in our history; to improving the police-to-population ratio from 1:670 in 2010 to 1:550 this year.
To enable our judicial system to deliver equal justice for all, we propose a budget of P26.7 billion for the Judiciary: 22 percent more than
its budget this year, and twice its budget in 2010. By augmenting its resources, the Judiciary stands a better chance of reducing the
case backlog of its courts and fast-track the resolution of cases. Part of this budget is P2.3 billion to cover all operating expenditures of
lower courts to enhance their independence and reduce their dependence on local governments.
Moreover, P1.2 billion is allocated for the Supreme Courts transfer to its new location in Bonifacio Global City. We have also committed
P3.29 billion over four years[20] for the construction of the new Supreme Court building, of which P122.7 million has been set aside in
the 2016 Budget to fund the detailed architectural and engineering design and project management needs of the project. Meanwhile,
the Department of Justice will have P13.6 billion to intensify the prosecution of criminal cases, provide ample protection to witnesses,
and support indigent defendants.

Delivering Measurable Results

We continue to transform the way in which the government delivers servicesfor maximum impact on the economy and maximum
benefit for the people.
Faster Budget Execution. To de-clog budget execution, we have reduced lump sum fundsa source of abuses in the past and a
major bottleneckand have fleshed these out into detailed programs and projects. To streamline budget releases, we have adopted
the GAA-as-Release-Document, which enabled us to comprehensively release 78 percent of the 2015 GAA at the start of the year: an
improvement from 61.5 percent in 2013 when this policy was not yet in place. Through thecashless and checkless disbursement
schemes that we introduced, around 80 percent of payments to government suppliers are now being done through bank-to-bank
transactions. To induce efficiency and responsiveness, we have also introducedprocurement innovations: from allowing agencies to
advance certain procurement activities even before the GAA is enacted, to expanding the features of the Philippine Government
Electronic Procurement System.
We owe it to our people to further speed up public spending, deliver services in a responsive manner, and boost economic growth in
the remaining 11 months. We must acknowledge that much more needs to be done to boost public spending and speed up the delivery
of crucial public services. In 2014, government disbursements fell short of program by P302.7 billion. Our analysis shows that 46
percent[21] of this was caused by structural weaknesses within key departments and agencies, such as poor planning and program
and project design; procurement difficulties, including frequent bid failures and the weak capacity to procure; and other bottlenecks,
including right-of-way issues, difficulties in securing permits, and coordination problems.
Institutional Strengthening. Beyond streamlining budget execution processes, we are now decisively addressing deeply-ingrained
institutional weaknesses that hamper the capability of our agencies to deliver services with impact.
Recently, I issued Administrative Order No. 46 to institute measures that strengthen the capacity of government agencies to effectively
plan, budget, execute, and monitor and evaluate programs and projects. In particular, we directed all agencies to set upFull-time
Delivery Units. These will regularly monitor the progress of priority programs and projects, quickly address implementation
bottlenecks, and push their performance. Moreover, we allowed key spending agencies to create more Bids and Awards
Committees(BACs) and tasked them to assign permanent support staff to these BACs.
We have also restricted the agencies to only propose programs and projects that are specific enough and readily implementable, within
their mandate and capacity to implement, and have built-in monitoring and evaluation mechanisms. This Budget also supports the
hiring of additional technical staff for planning, procurement, project management, and monitoring and evaluation. For instance, part of
this amount will allow the DPWH to hire 1,396 more civil engineers to boost its capacity to design, procure, and implement construction
projects.

We are particularly interested in transforming the DPWH as the lead construction agency of the government. Secretary Rogelio
Singson has implemented reforms that enable the DPWH to undertake the right projects, at the right cost and right quality, completed
right on time, and with the right people. This move unloads key departments such as the DepEd, DoH, and DA, of their construction
requirements and enables them to focus on their core mandates.
Budget Integrity. We are obliged to make sure that each peso we spend is according to the appropriations approved by Congress.
With greater budget integrity, faster spending does not only accelerate growth per se, but also ensures that agencies implement
programs and projects efficiently and with greater accountability for the outcomes.
Thus, we have further clarified the parameters in declaring and using savings in accordance with the Constitution. We have tightened
the policies on realignment[22], so that heads of agencies have limited yet reasonable flexibility to manage their finances. The
installation of the Unified Account Code Structure (UACS) will enable efficient accounting of each item of appropriation once
allocated and implemented. Furthermore, the magnitude ofSpecial Purpose Funds will be significantly reduced, as funds for creating
or filling up of positions, as well as for compulsory retirement and pension benefits will be included in the budgets of pertinent agencies.
We ask Congress to ensure greater budget integrity by restoring the policy of one-year validity of appropriations to mandate
agencies to obligate[23] their appropriations within the year they are enacted. The current policy that allows the agencies to carry over
the obligation of their budgets to the following year not only promotes delays in the delivery of services, but also convolutes the
accounting of those carryover budgets.
Alternative Service Delivery Schemes. Even as we strengthen the capacity of the national government agencies to implement
programs and projects, we must also leverage alternative means of delivering services to our peoplethrough local government units
(LGUs) and the private sector.
This is an opportunity to push our agenda for meaningful devolution. Our local governance and financial stewardship initiatives like
theLGU PFM Program, the Seal of Good Local Governance, and the Performance Challenge Fund have been boosting the LGUs
ability to absorb more funds and deliver basic social and economic servicesthose that are currently undertaken by the national
government, even if these appropriately fall under the mandate of LGUs under the Local Government Code.
Taking these reforms a step further, the 2016 Budget will enable the performance-based downloading of funds to LGUs to
implement a total of P18.2 billion in key projects funded by the national governmentfrom community-based poverty reduction projects
identified through Bottom-Up Budgeting (BUB), to the rehabilitation and upgrading of provincial roads[24]. These mechanisms promote
good governance: LGUsregardless of political affiliationthat have the right capacity, meet good local governance standards, and
embrace citizens participation are tapped to implement these projects. These also make the national government more responsive
when designing programs as they are based on feedback from LGUs and their communities. In addition to these, this Budget
establishes a policy where the Bureau of the Treasury will now directly release the internal revenue allotments and special shares in
national government revenues to LGUs.
In due course, the beneficiary-communities themselves would be empowered to directly implement programs in partnership with
national government agencies and LGUs. We are moving towards this ideal through the experience we have gained from BUB and the
National Community-Driven Development Program.
Likewise, the Public-Private Partnership (PPP) Program has enabled us to roll out big ticket infrastructure projectsthose that are
beyond the agencies capacities to implementby tapping the resources and expertise of the private sector. With the help of the PPP
program, for instance, the DepEd was able to close the classroom backlog that the agency inherited in 2010 by December 2013[25].
At present, 10 PPP projects worth P189 billion have already been awarded, while 13 more projects worth P518 billion are already being
bid out. Compare this to the past three administrations, which implemented just six solicited PPP projects. To sustain the success of our
PPP program and close the gaps in our policy regime, I ask Congress to pass the Public-Private Partnerships Act.
Stronger Performance Accountability. Each peso must not only be spent efficiently and in a timely way but also, and ultimately, must
lead to direct, substantial, and measurable benefits for our people. In 2013, we adopted the Performance-Informed Budgeting (PIB)

to clearly link the agencies spending to their performance commitments. The 2016 Budget continues to present agencies targeted
outputs and outcomes alongside their budgets: for instance, the number of households to be served by the DSWD through the 4Ps is
linked to the number of those who should become self-sufficient as a result of the program.
Taking the PIB a notch higher, we begin to implement the Program Expenditure Classification (PREXC), which entails the
restructuring of all the activities and projects of the agencies under a set of major programs consistent with their mandates. This way,
output and outcome targets are directly linked to programs, and all activities and projects of the agencies are factored into their
performance targets. Soon after submitting the proposed Budget for 2016, we will submit to Congress an advocacy volume showing the
PREXC as implemented in the budgets of six pilot agencies[26].
Public Financial Management. The government, through the Commission on Audit (CoA) and the Departments of Budget and
Management (DBM) and Finance (DoF), has been implementing a comprehensive Public Financial Management (PFM) Reform
Roadmap since 2011.
To date, these reforms are leading towards a more cohesive, orderly, and accountable system for managing public finances.
TheTreasury Single Account (TSA) is helping us better manage our cash resources. The PIBand the PREXC directly link
expenditures to performance. The UACS and harmonized accountability reports make the tracking of each financial transaction
easier. The UACS, I emphasize, is foundational to the success of the PFM Reform Program, as it overturns the past regime of
convoluted accounting, inaccurate reporting, and leakages. I urge Congress to pass a GAA where all items have a UACS code.
The 2016 Budget provides a total of P789 million[27] for the roll out of technology platforms that automate PFM functions, including the
Comprehensive Human Resource Information System and the TSA Reporting and Monitoring System, and to support the sustained
roll-out and management of policy reforms under the PFM Program.
These PFM reforms still need to be completed, scaled up, embedded, and fully practiced by agencies. I therefore ask Congress to help
us institutionalize these reforms by passing the Public Financial Accountability Act.

Empowering Citizens through the Budget

We aim to empower citizens, especially those in the margins, by strategically allocating and effectively deploying public resources. We
further support them by implementing reforms that establish greater fiscal openness and by recognizing their voice in how their taxes
are spent.
Greater transparency for efficiency and accountability. Our steadfast pursuit of reform has dramatically improved our standing in
global benchmarks of budget transparency. The International Monetary Fund has declared that our country exhibits good and advanced
practices in several areas of its new Fiscal Transparency Code[28]. Also, the International Budget Partnerships Open Budget Survey
(OBS) Tracker shows that we now publish all required budget documents[29].
We firmly believe that greater fiscal transparency leads to a more responsive government. By reducing lump sum funds and
presenting the spending plan into detailed programs and projects, we do not only reduce opportunities for corruption but also speed up
the budget execution process. Through innovations, such as the Transparency Seal,Open Data Philippines, and the Peoples
Budget, our citizens understand the Budget better and access information on government finances and operations faster. By
publishing performance information through the PIB and the regular budget reports, we also empower them to hold us accountable
for the results of our actions. These policies continue to be embedded in the proposed Budget for 2016.
To ensure the permanency of transparency policies, we urge Congress to pass theFreedom of Information Act.
Greater voice and stake for the grassroots. We introduced the Bottom-Up Budgeting (BUB) in 2012 to keep our people, through
their communities and their civil society organizations (CSOs), informed about our actions and decisions and provide them wider
spaces to engage the budget process.

Through BUB, the LGUs and local community organizations identify poverty reduction projects that should be implemented in their
localities. As a result, LGUs become more responsive to their constituents by requiring them to engage CSOs in crafting local poverty
reduction plans, as well as making them adopt good governance standards before implementing BUB projects.
The 2016 Budget supports the expansion of the BUB. Local poverty reduction projects identified by communities and LGUs in 1,514
cities and municipalities have been allocated P24.7 billion: an increase from P8 billion in 2013 for the projects identified in 595 cities
and municipalities. In addition, BUB projects are now being complemented in more empowering ways: from directly linking the process
to those of the National Community-Driven Development Program and the local development councils, to launching a BUB monitoring
portal (bub.gov.ph).
Despite being in its incipient stage, the BUB, we are proud to declare, achieved recognition worldwide as a model for empowering
citizens in the budget process. For instance, it won a gold award in the inaugural Open Government Awards in 2014 in New York, USA.
Through BUB, we are leading the way in demonstrating that making the budget process responsive to the needs of communities, while
fraught with challenges, is not impossible.

Paggugol na Matuwid:
Saligan ng Tuloy-Tuloy na Pag-Unlad
Maaabot ng ating bansa ang kaunlarang para sa lahat sa pamamagitan ng aktibong pagkilos ng mamamayan at patuloy na pagtalima
ng pamahalaan sa Daang Matuwid[30].
Ladies and Gentlemen of the 16th Congress: the budget process continues to be a primary arena for reform, where our countrys longterm progress should remain as the sole focus, and where our peoples interests should prevail.
When I signed the 2015 General Appropriations Act into law, I defined the ideal of a Peoples Budget: one that puts the peoples
interests paramount, and one in which they are empowered at every step of the process. I thank Congress for supporting this vision in
the past fiscal years.
I laud you, in particular, for approving the Budget on time for five fiscal years in a row. Because of this, you ended the old regime of
frequent budget re-enactment, which had given the previous President vast discretion over how public funds were spent, at the
expense of your power of the purse. In its place, you established a new tradition of efficiency, integrity, and responsiveness in public
financial management. I am confident that you will sustain this by likewise passing the 2016 Budget on time.
I also thank the agencies of the Executivefrom the Secretaries to the career civil servantsfor ensuring the success of reforms. On
top of delivering services to the people, you have been taking on the difficult task of effecting fundamental changes in your respective
bureaucracies.
Most important, I thank the Filipino People. By their engagement in the process of reforming the Budget, and by believing in their own
power to create lasting change, they have shown here and across the world that People Power continues to thrive in the halls of
government.
Through our collective efforts, our country has reached another crucial juncture in its history. We are at a point of lasting change in our
government and society. We have laid a strong foundation for achieving greater prosperity for all.
My beloved countrymen, my bosses: in about nine months, you will cast your votes for our countrys new set of leaders. But you must
remember that the 2016 Election is not merely a contest among personalities. You must remember that the power of the State rests
upon you. Thus, the upcoming polls should be about you once again claiming your stake in our countrys future and taking action to
install a trustworthy and dependable government beginning 2016.

Hindi telenobela ng mga magkakatunggaling kandidato o partido ang parating na halalan. Nililikhang kasaysayan ito: ang patuloy na
pagkilos ng taumbayan upang paigtingin ang tuwid na pamamahala at kaunlarang para sa lahat[31].
Will you allow yourselves to be swayed by populist yet empty promises, be blinded by manufactured images of benevolence, or be
shoved aside by the machinations of a few powerful groups who seek to regain control over public institutions? Or, will you choose to
take on the cudgels and sustain the Daang Matuwid so that our country can continue to tread the straight path to progress?
I have much faith that you will make the right choice. As you have shown in 1986, when you toppled a dictator through your collective
action, and in 2010, when you campaigned for reform in the treacherous arena of the elections, you have the power to make
meaningful change in our society possible.
Mga Boss: marami na tayong nagawa. Marami pa tayong nakalatag na gagawin. Hindi pa tayo tapos[32].
With your indispensable support, we will continue making the right choices. By submitting this proposed Budget for 2016, I choose to
ensure that the next generation will inherit a healthy treasury, a government that can confront the new challenges and surprises of our
volatile world, and a society that is poised for further progress.
On behalf of our people, I ask Congress to make the right choice: to approve a Peoples Budget for 2016 that puts their constituents
interests on top and center; one that empowers them to create a prosperous future for themselves through their talents and actions;
one that places their voice at the heart and center of the State.
In the spirit of People Power,
(Sgd.) BENIGNO S. AQUINO III
President of the Philippines

[1] Poverty incidence among population, first semester.

[2] Through our collective journey on the Straight Path, our country has reached a new stage of prosperity.
[3] Through honest and effective management of public expenditures, we provide a strong foundation for sustained progress.
[4] Change in cash is pegged at P18.4 billion in 2016.
[5] The fiscal space is the difference between a) the obligation budget ceiling, which is P3.002 trillion in 2016, based on the fiscal
program and b) the forward estimates of the costs of ongoing expenditures, which is P2.419 trillion. For 2016, the fiscal space is
P582.7 billion.
[6] See pages 28 to 30 for more discussions on how the 2016 Budget supports faster budget execution and strengthens institutional
capacity to deliver.
[7] The regular conditional cash transfer (CCT), which has been expanded to cover high school students, will benefit 4.4 million indigent
households; while the modified CCT will cover 218,337 itinerant, homeless, indigenous peoples, and other households in need of
special protection.
[8] Under the budgets of DoH, DSWD, National Nutrition Council, Early Child Care and Development Council, and Bureau of Fisheries
and Aquatic Resources.
[9] Housing units constructed and provided assistance by the National Housing Authority from 2011 to 2014.

[10] The amount for 2016 will cover 87,405 victims.

[11] Through the National Electrification Administration, from 2011 to 2015.
[12] This is one of the twelve pillars that form part of the GCI. This measures the quality and extensiveness of transport and other
infrastructure of a country.
[13] See page 33 for more discussions on the PPP program.
[14] This amount is part of the National Risk Reduction and Management Fund.
[15] Nationwide Operational Assessment of Hazards
[16] At that time called the Calamity Fund.
[17] The 2016 NDRRMF is composed of the P18.9-billion Yolanda Comprehensive Rehabilitation and Recovery Plan, the P1-billion
Peoples Survival Fund, and P19 billion for rehabilitation, relief, and other calamity-related services.
[18] DSWD, Department of National Defense-Office of Civil Defense, DPWH, DepEd, DA, DOH, and the National Irrigation
Administration.
[19] Includes P2 billion for the PNP Modernization Program.
[20] Through the issuance of a Multi-Year Obligational Authority (MYOA) covering 2016 to 2019 requirements of the projects.
[21] The remaining 54 percent is attributed to: savings from lower interest payments (14 percent); the refocusing of agency efforts to
the rehabilitation and recovery of areas affected by Typhoon Yolanda (1 percent); budget items affected by recent Supreme Court
decisions (1 percent); and other reasons, including weather disturbances and peace and order problems (38 percent).
[22] As opposed to the augmentation of budget items using savings from other budget items, the realignment of funds pertains to the
reallocation, modification, or change in the details within an item of appropriation.
[23] To enter into contracts with suppliers and other binding commitments for the payment of funds in line with approved appropriations.
[24] Of the amount: 1) P11.7 billion in BUB-identified local poverty reduction projectsincluding those for disaster risk reduction and
management, local health, education, local roads and infrastructureto be implemented by municipalities; 2) P6.5 billion for the
upgrading and rehabilitation of provincial roads to be implemented by provincial governments which meet good governance standards
and social development benchmarks, and established monitoring and evaluation mechanisms.
[25] Of the 66,800 backlog in classrooms, 19,980 were constructed through PPP. The remaining 46,820 were funded through the
regular budget of DepEd.
[26] Departments of Social Welfare and Development, Tourism, the Interior and Local Government, Environment and Natural
Resources, and Foreign Affairs, and the National Kidney and Transplant Institute.
[27] P727 million under the DoF-Treasury and P62.2 million under DBM.
[28] Philippines: Fiscal Transparency Evaluation, 30 June 2015.
[29] The OBS Tracker (www.obstracker.org) regularly measures the availability of the eight prescribed budget documents, while the full
OBS survey also measures comprehensiveness. In the 2012 OBS, the Philippines only published four of the eight required documents.
The results of the 2015 OBS will be released in September 2015.

[30] Our country will achieve inclusive growth through the collective action of our people and our unwavering commitment to the
Straight Path.
[31] The upcoming polls is not a telenovela of clashing candidates or parties. You are writing history, one where the people continue to
take action to intensify good governance and inclusive development.
[32] To my Bosses: we have achieved so much. But there is much more to be done. Our quest is not yet over.

http://www.gov.ph/2015/07/28/president-aquino-budget-message-2016/