2014 Budget Message of President AquinoPublished: July 23, 2013.

Messageof

His Excellency Benigno S. Aquino IIIPresident of the Philippines

to the Sixteenth Congress of the Philippineson the National Budget for Fiscal Year 2014

[July 23, 2013]

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 2014.

Our People’s Quest for Prosperity

Our journey on the Daang Matuwid has been bearing fruit.

Because we painstakingly sought to restore public trust and confidence in our democratic institutions, our country has reached new heights that were thought of as impossible in the recent past. In the past three years of our Administration, we have succeeded in installing greater transparency and accountability in public institutions; we have achieved critical wins in socio-economic reform; and we have seen the resurgence of our economy in ways never seen before.

The new prosperity that our country has achieved was because of the power of trust: trust between the people and its government; trust by the people in each other; and trust in themselves and their capabilities. Dahil sa tiwala, nagawa nating maging posible and dating imposible.

At nagtitiwala tayong higit pa ang makakamtan natin sa patuloy nating pagtahak sa Daang Matuwid.

We continue to face important challenges as we pursue our journey in the remaining three years of our Administration. I believe that the foremost task that we have now is to further deepen our people’s ownership of our newfound prosperity.

I believe that every Filipino holds the key to his or her own prosperity. Our role as government is to further empower our people in actualizing their individual and collective potential, by laying the foundations for equitable progress; for growth that benefits all and leaves no one behind. This is what we have been working on in our first three years in office; and this is what we continue to fulfill from now until the end of my term.

Sa pamamagitan ng Paggugol na Matuwid, patuloy nating tatahakin ang Daan sa Kasaganaan ng lahat

Ladies and Gentlemen of the 16th Congress, this Budget that I submit to you today is a Budget that supports our agenda for Inclusive Development.

A Budget for Inclusive Development

On behalf of our people, I ask you to examine and thereafter approve this proposed P2.268-trillion National Budget for 2014.

This proposed Budget is 13.1 percent higher than the current year’s budget of P2.006 trillion. It is consistent with our macroeconomic and fiscal program for the medium term. More important, this proposed Budget is designed as a tool that we must maximize as we continue to fortify the foundations for Inclusive Development.

The framework of Inclusive Development eschews the fallacy of “trickle down,” for it is about promoting the equalization of opportunities for all, regardless of their life circumstances. Since the beginning of our term, we have operated under the belief that growth must be owned by the people; that our people are empowered to shape their destinies. Consistent with this framework, we continue to uphold our obligation as government to put our people on an equal footing to take advantage of opportunities.

This Budget embodies this lasting commitment. For one, it intensifies our investments in capacitating our people through basic services, such as education and manpower development, adequate healthcare, and social protection services. This Budget also enables us to sustain our growth trajectory in a way that promotes growth that directly and substantially benefits the lowest of sectors.

Ang hangarin natin: ang mga mamamayan mismo ang lumilikha at magmamay-ari ng bagong kasaganaan ng ating bansa. Ang obligasyon natin bilang pamahalaan ay ilagay ang ating mga kababayan sa patas na tungtungan.

At upang magampanan ang obligasyong ito, kailangan nating maging masigasig sa pagtupad sa ating sinumpaan sa bayan: kung walang corrupt, walang mahirap.

At the core of Inclusive Development are public institutions built on stable foundations of good governance: transparency and accountability, and our citizen’s active participation in statecraft. This Budget was thus designed to help us ensure the sustainability and irreversibility of the governance reforms that we nurtured and set in place during the first half of our term.

With this, allow me to share with you the principles and reforms that shaped our Proposed Budget for 2014.

Moving Toward Performance-Informed Budgeting

The Budget is a critical tool that we must harness to steer our government toward Inclusive Development. However, the way that our Budget has been structured through the years—focused on the financials and on programs and projects, with no clear link to performance—does not address our aim to promote a government attuned to meeting real outcomes for the people.

For this Proposed Budget for 2014, we embark on a bold move to change the way the Budget is presented. With the Performance-Informed Budget Structure, each peso is now presented alongside the results that we want to achieve.

With the Performance-Informed Budget Structure, we organized the Budget to reflect non-financial performance information alongside the budgetary allocations. Each program, activity, and project that the government spends on is linked to the major final outputs that departments and agencies must deliver according to their mandates; and these are further linked to the broad outcomes that we have spelled out in our development agenda.

Through this new budget structure, we are redefining accountability as a commitment to deliver the direct, immediate, and substantial dividends of good governance to our people. All the major final outputs of departments and agencies of government have corresponding performance indicators and targets that they are committed to meeting using their respective budgets.

The reforms we nurtured earlier in our term made this fundamental shift possible. The Performance-Informed Budget builds on the Organizational Performance Indicator Framework and our recent effort to clearly define the outputs and performance indicators of each agency.

Our earlier efforts to promote a performance culture in the bureaucracy through the harmonization of performance management systems, the introduction of performance-based incentives, and the creation of the Office of the Cabinet Secretary have also paved the way for the Performance-Informed Budget.

This new face of the Budget should empower you, the men and women of Congress, as you exercise your oversight function on the Budget. Sa huli, sa pamamagitan ng Performance-Informed Budget, binabago natin ang mukha ng Pambansang Budget para higit na maging malinaw ang kuwento sa bawat kuwenta.

Tighter Budget Prioritization for Inclusive Development

Kasama sa kuwentong binibigyang-linaw natin ang higit na lumalalim na pananagutan natin bilang pamahalaan na siguruhing nakatutok sa mga susing pangangailangan n gating mamamayan ang Pambansang Budget.

Earlier in our term, we defined the five Priority Areas of our Social Contract with the Filipino People(1) and directed all departments and agencies to focus their resources and efforts to fulfilling these Priority Areas.

1. Transparent, Accountable, and Participatory Governance2. Poverty Reduction and Empowerment of the Poor and Vulnerable

3. Rapid, Inclusive, and Sustained Economic Growth

4. Just and Lasting Peace and the Rule of Law

5. Integrity of the Environment and Climate Change Adaptation and Mitigation

When we assumed office in 2010, we introduced the Zero-Based Budgeting Approach to scale down funding for activities that were not aligned with the set priorities or were otherwise inefficient, ineffective, and fraught with leakages. We also introduced the Program Budgeting Approach to further deepen the level of budgetary prioritization within each priority area of the Social Contract by defining the strategic programs that had impact on meeting our development objectives and should therefore be prioritized in budgetary decision making.

In preparing this Budget for 2014, we issued a Budget Priorities Framework (2) to direct all departments and agencies to design their respective budget proposals along with program priorities in line with the Social Contract and the midterm updating of the Philippine Development Plan. This document stemmed from several discussions at the Cabinet level (3) to define the priorities that should be funded for 2014 to 2016, particularly for 2014.

This Budget Priorities Framework also identifies geographic focus areas where our poorest people are and where great potential lies. We have directed these departments to not only prioritize their resources for these programs and areas but also tighten their collaboration in these areas for greater impact.

Better Collaboration as the New Standard in Government

Sa pagsasakatuparan ng ating Social Contract, mahalagang siguruhin na nagbubukluran—at hindi nagkakanya-kanya—ang bawat institusyon ng ating pamahalaan.

To build collaboration across the program and geographical priority areas, we leveraged the Program Budgeting Approach with the aim of encouraging departments and agencies to move out of their silos and synergize their efforts in achieving strategic objectives.

Take the case of the Tourism Development Program, which the government has been maximizing for its job-generating and value-creating potential. The Department of Tourism’s lead role in promoting domestic and international tourism has been complemented by the outputs of other agencies: access infrastructure to tourism destinations; efficient visa, immigration, customs, and quarantine processing; the development of products and services, security for travelers, among others.

We firmly believe that better collaboration must be the new standard that we should continue to uphold to effectively achieve our societal objectives. The government is a potent catalyst in society.

Enabling the Private Sector as Engine of Economic Growth

As we do our part in establishing the right environment for growth, the private sector must likewise fulfill its role as engine of economic growth. This is why, in our first three years in office, we have been enabling the private sector to perform its role by creating the enabling policy, regulatory, political, and physical environments.

The revival of public trust in government in our first three years in office—given our commitment to fairness as well as to economic and political stability—bolstered the private sector’s confidence in our economy, lowered our borrowing costs, and enabled us to reach record highs in economic growth and competitiveness.

We are committed to following through, from today up until the end of our term. This Budget embodies this commitment. For one, it is designed to sustain our medium-term fiscal plan toward keeping a fiscal deficit limit to 2 percent of GDP from now to 2016 and toward further reducing our debt stock to 46.8 percent of the GDP from 51 percent in 2012.

This Budget also supports efforts to further streamline business processes in order to advance our country’s competitiveness. Lastly, this Budget escalates our investments in public goods, particularly in infrastructure: our target is to increase government infrastructure spending to five percent of GDP by 2016.

At the beginning of our term, we introduced the Public–Private Partnership program as a strategy to entice private sector investment in critical public infrastructure and for the faster delivery of social services, such as the closure of the long-standing gap in classroom supply. We acknowledge the fact that this program encountered delays at the beginning as we addressed policy issues and updated feasibility studies to ensure the program’s viability. With confidence, we can now say that the PPP program is now moving forward.

I must emphasize that the private sector is not only composed of big businesses and foreign investors. The private sector must include the communities, small entrepreneurs, farmers and fishermen, and other citizens on the ground whom we want to empower as co-producers of our country’s new wealth. We must likewise support the efforts of those who work with our people on the ground, such as microfinance institutions, non-government organizations, and enlightened businesses that have enshrined the creation of “shared value” at the core of their business model.

Bilang pamahalaan, dapat nating kalingain itong bagong balangkas ng pag-unlad na nagsisimula sa ibaba. Through the investments we make using our Budget, we are adopting this new model of wealth creation that eschews “trickle down” and embraces “bottom-up.”

Transparency at the Core of Effective Public Financial Management

We believe that transparency is not just a by-product of effective public financial management. We assert that it is at the core of public financial management, for it ensures efficiency, speed, predictability, and effectiveness in the use of public funds.

In our first three years, we carried out and deepened reforms that promoted greater fiscal transparency. We continued our war against un-transparent lump-sum funds that have caused

anomalies and sluggish public spending. We also mandated all departments to disclose their budgets and finances in their respective websites. To date, 96 percent of all departments of the executive branch and their line agencies have complied with the Transparency Seal provision of the Budget. Greater transparency also means making information accessible to the people. Through the People’s Budget publications and the BudgetNgBayan.Com advocacy website, our government has translated the Budget in the language of our citizens.

Last year, we announced the move toward a Budget-as-Release-Document Regime through the 2014 Budget. This regime promotes predictability and speed in budgetary releases, as well as in implementation, as the budgets of agencies—except for those that need prior clearance, to be contained in a negative list—are considered as released as soon as the Budget is enacted.

Likewise, we have rolled out important structural reforms toward a new PFM regime. First, we have adopted the Unified Account Code Structure, which is the backbone of our new PFM, to ensure that all financial processes—from budgeting to cash management to accounting and audit—will follow a single classification system. Our proposed 2014 Budget was crafted using this structure.

In 2014, we will start the implementation of another important reform: the Treasury Single Account, which will inject more transparency and predictability in treasury cash management. With this reform, some 9,500 agency bank accounts will be consolidated into a highly manageable number by 2014. This provides government with clear visibility on the bank balances of agencies on a daily basis. Ultimately, this will lead to savings of about P1.5 to 3 billion from interest costs on borrowings.

These reforms will support another ambitious PFM reform, which we intend to complete by 2016: an integrated Public Financial Management System, which will automate and speed up the processing and flow of funds and financial management information within government.

Empowering the Citizenry Through the Budget

The Budget is not only for the people: we assert that it is, first and foremost, owned by the people. Through reform, we seek to empower our people to take ownership of the Budget and to meaningfully take part in the budget process.

In the first three years of our Administration, we jumpstarted and nurtured relationships with reform-oriented stakeholders, which include civil society organizations (CSOs), community-based organizations and the private sector. We then introduced new mechanisms for citizen participation in the budget process.

We introduced the process of Budget Partnership Agreements (BPAs) between government agencies, corporations, and CSOs and piloted it in crafting the 2012 Budget. In this process, government agencies and CSO partners enter into a formal partnership in the review of the agencies’ budgets, programs, and projects as well as in the crafting of their budget proposals for the following fiscal year. From the pilot stage in which BPAs were implemented in six agencies

and corporations, the number of agencies that have BPAs increased to 15 during the crafting of the 2014 Budget.

We also sought to create a direct “voice and vote” for citizens—through their communities and local governments—in crafting the Budget. We piloted the Bottom-Up Budgeting process in crafting the 2013 Budget by tasking the poorest municipalities and cities to develop local poverty reduction programs and projects in consultation with their communities and the CSOs in their localities. This led to P8.4 billion in poverty reduction projects, developed by 595 cities and municipalities, which were integrated into the 2013 Budget.

For 2014, the process was expanded to 1,226 cities and municipalities with poverty incidence of at least 20 percent, with high economic potential, and with barangays exposed to high geo-hazard risks. As a result, the earmarked amount for BuB in the 2014 Budget was increased to P20 billion to cover the minimum basic needs for electrification, potable water, education, health, training, livelihood opportunities, and the protective services of these local government units (LGUs).

Ipinagkatiwala po sa atin ng mga mamamayan ang kapangyarihang ating tangan. At nararapat lang na gamitin natin ang kapangyarihang ito para higit pang palakasin ang kanilang boses sa proseso ng pamamahala.

Overview and Dimensions of the 2014 Budget

This proposed 2014 Budget is 13.1 percent or P262.1 billion higher than the 2013 budget. It is equivalent to 17 percent of the country’s GDP. More important, we have successfully changed the complexion of the Budget with our determined implementation of our Social Contract with the Filipino People.

The Budget by Sector. In 2014, the Social Services sector will continue to have the largest share of the Budget at P842.8 billion as we expand social protection and basic social services to increasingly benefit our poor.

Table 1: The Budget by Sector

PARTICULARS

Levels (Php Billion)

Percent Share

Change2013-2014

2013Program

2014Proposed

2013 2014AmountPercent

Social Services 699.4 842.8 34.9 37.2 143.4 20.5Economic Services

509.2 590.2 25.4 26.0 81.0 15.9

General Public Serv.

347.3 364.5 17.3 16.1 17.2 5.0

Debt Service 333.9 352.7 16.6 15.5 18.8 5.6Defense 89.5 92.9 4.5 4.1 3.3 3.7Net Lending 26.5 25.0 1.3 1.1 (1.6) (5.8)

Total 2,005.9 2,268.0100.0100.0 262.1 13.1

This allocation is followed by that for Economic Services at P590.2 billion as we promote tourism, agribusiness, and manufacturing to sustain our economic growth trajectory. Interest Payments will have a lower share of P352.7 billion or 15.5 percent from 20 percent in 2010 as we actively reduce our fiscal deficit and debt levels.

Budget by Expense Class. Because of our intensified budgetary focus on poverty reduction and economic expansion, we increased Maintenance and Other Operating Expenses (MOOE) by 16.5 percent to P375.3 billion to support our human development and social protection programs.

We also increased the budget for Infrastructure by 35.5 percent to P399.4 billion, (4) which is equivalent to 3 percent of GDP. This allocation will pave the way for the increase in infrastructure spending to 5 percent of the GDP in 2016.

Table 2: The 2014 Budget by Expense Class

PARTICULARS

Levels (Php Billion)

Percent Share Growth

RatePercent of GDP

2013Program

2014Proposed 2013 2014 2013 2014

13-14 ProgramProposedCURRENT OPERATING EXP

1,569.1 1,732.4 78.2 76.4 10.4 13.2 13.0

Personnel Services

640.6 689.4 31.9 30.4 7.6 5.4 5.2

Maintenance & Other OpEx

319.0 375.3 15.9 16.5 17.6 2.7 2.8

Subsidy (Regular)

6.9 14.9 0.3 0.7 116.3 0.1 0.1

Allotment to LGUs

241.8 273.2 12.1 12.0 13.0 2.0 2.0

Interest Payments 333.9 352.7 16.6 15.5 5.6 2.8 2.6Tax Expenditure Fund

26.9 26.9 1.3 1.2 - 0.2 0.2

CAPITAL OUTLAYS (CO)

410.3 510.7 20.5 22.5 24.5 3.4 3.8

Infrastructure Outlay

294.7 399.4 14.7 17.6 35.5 2.5 3.0

Other CO 77.0 65.8 3.8 2.9 (14.5) 0.6 0.5Equity 2.0 3.8 0.1 0.2 89.7 0.0 0.0Capital Transfers to LGUs

31.6 36.6 1.6 1.6 15.9 0.3 0.3

CARP- Land Owner’s Compensation

5.0 5.0 0.2 0.2 - 0.0 0.0

NET LENDING 26.5 25.0 1.3 1.1 (5.8) 0.2 0.2TOTAL 2,005.9 2,268.0100.0100.0 13.1 16.8 17.0Nominal GDP 11,914.5 13,336.7

Budget of the Top 10 Departments. Reflecting the thrust on Inclusive Development and the strategy to achieve it, the top ten agency budgets are as follows:

Table 3: Top Ten Departments

PARTICULARS

2013 PROGRAM

2014 PROPOSED GROWTH

RATELEVELRANK

LEVELRANK(Php

Billions)(Php Billions)

DepEd (incl.MPBF and SBP)

293.4 1/ 1 336.9 1/ 1 14.9

DPWH (incl. BSGC )

152.4 2/ 2 213.5 2 40.1

DILG (incl. MPBF and PGF)

121.8 3 135.4 3 11.2

DND (incl. MPBF and PGF)

121.6 4 123.1 4 1.2

DOH (incl. MPBF, HFEP and BSGC )

59.9 3/ 6 87.1 3/ 5 45.5

DA (incl. BSGC ) 75.0 5 80.7 6 7.6DSWD 56.4 7 79.0 7 40.0DOTC (incl. MPBF, PGF and BSGC )

37.1 8 48.7 8 31.4

DENR (incl. MPBF and PGF)

23.7 9 23.9 9 0.9

DAR 21.4 11 20.4 10 (4.9)Notes:1/ Gross of SBP2/ Net of SBP and HFEP3/ Gross of HFEP

Legend:MPBF- Miscellaneous Personne Benefits FundSBP- School Building ProgramPGF- Pension and Gratuity FundBSGC- Budgetary Support to Government CorporationsHFEP- Health Facilities Enhancement Program

Allocated with P336.9 billion, the Department of Education (DepEd) will again have the largest part in the budget. Through the years, we have steadily increased the budget for DepEd to close

the critical gaps in the supply of teachers, classrooms and others that we have inherited; and to prepare for increased needs brought about by the K-12 basic education reform program.

Also in the Top 10 are other premier social service agencies: the Department of Health, with P87.1 billion to pursue Universal Health Care, particularly for preventive healthcare services and for health insurance coverage for 14.7 million poor near-poor families; and the Department of Social Welfare and Development, with P79 billion to deliver meaningful social protection services, particularly the expanded P62.6-billion Pantawid Pamilyang Pilipino program that will benefit 4.44 million indigent households.

In laying the groundwork for further growth, the Department of Public Works and Highways (DPWH), as the infrastructure arm of the government, will receive the second largest budget. Its 40.1-percent budgetary increase to P213.5 billion in 2014 will enable DPWH to meet its national roads and bridges targets and support the growth of key sectors such as tourism.

Economic service delivery agencies which likewise belong to the Top 10 are: the Department of Agriculture, with P80 billion to raise productivity in agriculture and improve the incomes of farmers and fisher folk; the Department of Transportation and Communications, with P48.7 billion to construct the airports, seaports and railways needed to improve the competitiveness of industries; and the Department of Agrarian Reform, with P20.4 billion to complete the agrarian reform program.

Financing the Expenditure Plan

The Philippine economy has reached unprecedented heights. In the first quarter of 2013, our economy grew the fastest in Asia at a rate of 7.8 percent. We are confident that we will meet, if not outpace, our growth targets of 6.0–7.0 percent for 2013 and 6.5–7.5 percent for 2014. Our inflation, interest, and foreign exchange rates should remain stable.

Table 4: Macroeconomic Assumptions, 2012–2014

Parameter 2012Actual

2013 2014

Real GDP Growth (%)

6.8 6.0-7.0 6.5-7.5

Inflation Forecast (%)

3.2 3.0-5.0 3.0-5.0

364-Day T-bill Rate (%)

2.0 1.0-3.0 2.0-4.0

FOREX (PhP/US$) 41.2 41-43 41-43

Our stable macroeconomic fundamentals will allow us to achieve our fiscal consolidation goals, towards a deficit that is equivalent to 2 percent of GDP from this year to 2016. For 2014, we will achieve this by increasing revenues by 15.6 percent to P2.02 trillion.

Table 5: National Government Fiscal Program

Particulars Levels Percent of GDP Growth2013

Program2014

Proposed2013 2014 2013-

2014Revenues 1,745.9 2,018.1 14.7 15.1 15.6Tax 1,607.9 1,879.9 13.5 14.1 16.9o.w. BIR 1,253.7 1,456.3 10.5 10.9 16.2BOC 340.0 408.1 2.9 3.1 20.0Non-Tax 136.0 136.1 1.1 1.0 0.1o.w. BTR Income 57.7 56.2 0.5 0.4 (2.6)Privatization 2.0 2.0 0.0 0.0 -Disbursements 1,983.9 2,284.3 16.7 17.1 15.1Current Operating Exp.

1,558.5 1,736.5 13.1 13.0 11.4

o.w. Interest Payments

332.2 352.7 2.8 2.6 6.2

Capital Outlays (CO)

410.9 522.9 3.4 3.9 27.3

o.w. Infrastructure

299.4 418.2 2.5 3.1 39.7

Net Lending 14.5 25.0 0.1 0.2 72.1Surplus/(Deficit) (238.0) (266.2) (2.0) (2.0) 11.9Memo Item: GDP

    11,914.513,336.7

Paggugol na Matuwid: Daan sa Kasaganaan

Matutunghayan natin na ang Badyet na ito ay maglalatag ng pundasyon para sa kasaganaan ng bawat Pilipino.

We want to leave behind this legacy: a transformed government, a capacitated people, an inclusive economy, and a better nation. I cannot overemphasize my deep commitment to laying the foundation that will ensure the realization of this legacy.

Such is the goal of this 2014 National Budget, a Budget for Inclusive Development, a national expenditure program that builds on the new prosperity we have created for our country in the past three years.

Our esteemed ladies and gentlemen of the 16th Congress, as you authorize this proposed Budget for fiscal year 2014, I invite you to commit with us in our efforts to realize this legacy. I encourage you to look at this Budget with the will to enact the same with speed and resolve so that our people can be on the road to prosperity. Let this Budget for Inclusive Development enable us to truly serve our people who gave us our mandate. They are the reason why we are all here.

Halina’t sama-sama nating tahakin ang tuwid na landas tungo sa kasaganaan ng lahat.

It is in this light that I ask you, the men and women of Congress, to examine and eventually approve this proposed Budget for fiscal year 2014.

In the spirit of People Power,

BENIGNO S. AQUINO IIIPresident of the Philippines

End Notes:

1. Executive Order No. 43, Series of 2011, issued on 13 May 2011.2. National Budget Memorandum No. 118, issued on 25 April 2013.

3. Led by the Office of the Cabinet Secretary, the Department of Budget and Management and the National Economic and Development Authority.

4. The total amount for infrastructure includes national government agencies’ budgets for infrastructure, subsidies for government corporations for their infrastructure projects, and infrastructure transfers to local government units.

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Update No. 2014-05—Service Concession Arrangements (Topic

January 2014 Effective for a public business entity for annual periods, and interim periods within those annual

853) (a consensus of the FASB Emerging Issues Task Force)[Download]

periods, beginning after December 15, 2014. For an entity other than a public business entity, the amendments are effective for annual periods beginning after December 15, 2014, and interim periods within annual periods beginning after December 15, 2015. Early adoption is permitted.

Update No. 2014-04—Receivables—Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure (a consensus of the FASB Emerging Issues Task Force)[Download]

January 2014 Effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. For entities other than public business entities, the amendments in this Update are effective for annual periods beginning after December 15, 2014, and interim periods within annual periods beginning after December 15, 2015.

Update No. 2014-03—Derivatives and Hedging (Topic 815): Accounting for Certain Receive-Variable, Pay-Fixed Interest Rate Swaps—Simplified Hedge Accounting Approach (a consensus of the Private Company Council)[Download]

January 2014 The simplified hedge accounting approach, if elected, should be applied retrospectively to certain types of swaps using either a modified retrospective approach or a full retrospective approach, in annual periods beginning after December 15, 2014, and interim periods within annual periods beginning after December 15, 2015. Early application is permitted for any period for which the entity’s financial statements have not yet been made available for issuance.

Update No. 2014-02—Intangibles—Goodwill and Other (Topic 350): Accounting for Goodwill (a consensus of the Private Company Council)[Download]

January 2014 The accounting alternative, if elected, should be applied prospectively to goodwill existing as of the beginning of the period of adoption and new goodwill recognized in annual periods beginning after December 15, 2014, and interim periods within annual periods beginning after December 15, 2015. Early application is permitted, including application to any period for which the entity’s annual or interim financial statements have not yet been made available for issuance.

Update No. 2014-01—Investments—Equity Method and Joint Ventures (Topic 323): Accounting for

January 2014 Effective for public business entities for annual periods and interim reporting periods within those annual periods, beginning after December 15,

Investments in Qualified Affordable Housing Projects (a consensus of the FASB Emerging Issues Task Force)[Download]

2014. For all entities other than public business entities, the amendments are effective for annual periods beginning after December 15, 2014, and interim periods within annual reporting periods beginning after December 15, 2015. Early adoption is permitted.

Update No. 2013-12—Definition of a Public Business Entity—An Addition to the Master Glossary[Download]

December 2013

There is no actual effective date for the amendment in this Update. However, the term public business entity will be used in the 2014 Accounting Standards Updates on, Intangibles-Goodwill and Other (Topic 350): Accounting for Goodwill, and Derivatives and Hedging (Topic 815): Accounting for Certain Receive-Variable, Pay-Fixed Interest Rate Swaps- Simplified Hedge Accounting Approach, which are the first Updates that will use the term public business entity.

Update No. 2013-11—Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (a consensus of the FASB Emerging Issues Task Force)[Download]

July 2013 Effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. For nonpublic entities, the amendments are effective for fiscal years, and interim periods within those years, beginning after December 15, 2014. Early adoption is permitted.

Update No. 2013-10—Derivatives and Hedging (Topic 815): Inclusion of the Fed Funds Effective Swap Rate (or Overnight Index Swap Rate) as a Benchmark Interest Rate for Hedge Accounting Purposes (a consensus of the FASB Emerging Issues Task Force)[Download]

July 2013 The amendments are effective prospectively for qualifying new or redesignatedhedging relationships entered into on or after July 17, 2013.

Update No. 2013-09—Fair Value Measurement (Topic 820): Deferral of the Effective Date of Certain Disclosures for Nonpublic Employee

July 2013 The deferral in this amendment is effective upon issuance for financial statements that have not been issued.

Benefit Plans in Update No. 2011-04[Download]

Update No. 2013-08—Financial Services—Investment Companies (Topic 946): Amendments to the Scope, Measurement, and Disclosure Requirements[Download]

June 2013 Effective for an entity’s interim and annual reporting periods in fiscal years that begin after December 15, 2013. Earlier application is prohibited.

Update No. 2013-07—Presentation of Financial Statements (Topic 205): Liquidation Basis of Accounting[Download]

April 2013 Effective for entities that determine liquidation is imminent during annual reporting periods beginning after December 15, 2013. Early adoption is permitted.

Update No. 2013-06—Not-for-Profit Entities (Topic 958): Services Received from Personnel of an Affiliate (a consensus of the FASB Emerging Issues Task Force) [Download]

April 2013 Effective prospectively for fiscal years beginning after June 15, 2014, and interim and annual periods thereafter. A recipient not-for-profit entity may apply the amendments using a modified retrospective approach under which all prior periods presented upon the date of adoption should be adjusted, but no adjustment should be made to the beginning balance of net assets of the earliest period presented. Early adoption is permitted.

Update No. 2013-05—Foreign Currency Matters (Topic 830): Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity (a consensus of the FASB Emerging Issues Task Force)[Download]

March 2013 Effective prospectively for fiscal years (and interim reporting periods within those years) beginning after December 15, 2013. For nonpublic entities the amendments in this Update are effective prospectively for the first annual period beginning after December 15, 2014, and interim and annual periods thereafter.

Update No. 2013-04—Liabilities (Topic 405): Obligations Resulting from Joint and Several Liability Arrangements for Which the Total

February 2013

Effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. For nonpublic entities, the amendments are effective for fiscal years ending after December 15,

Amount of the Obligation Is Fixed at the Reporting Date (a consensus of the FASB Emerging Issues Task Force)[Download]

2014, and interim periods and annual periods thereafter.

Update 2013-03—Financial Instruments (Topic 825): Clarifying the Scope and Applicability of a Particular Disclosure to Nonpublic Entities[Download]

February 2013

Effective upon issuance.

Update 2013-02—Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income[Download]

February 2013

For public entities, the amendments are effective prospectively for reporting periods beginning after December 15, 2012. For nonpublic entities, the amendments are effective prospectively for reporting periods beginning after December 15, 2013. Early adoption is permitted.

Update 2013-01—Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities[Download]

January 2013 An entity is required to apply the amendments for fiscal years beginning on or after January 1, 2013, and interim periods within those annual periods. An entity should provide the required disclosures retrospectively for all comparative periods presented. The effective date is the same as the effective date of Update 2011-11.

Update No. 2012-07—Entertainment—Films (Topic 926): Accounting for Fair Value Information That Arises after the Measurement Date and Its Inclusion in the Impairment Analysis of Unamortized Film Costs (a consensus of the FASB Emerging Issues Task Force)[Download]

October 2012 For SEC filers, the amendments are effective for impairment assessments performed on or after December 15, 2012. For all other entities, the amendments are effective for impairment assessments performed on or after December 15, 2013. The amendments resulting from this Issue should be applied prospectively. In addition, earlier application is permitted, including for impairment assessments performed as of a date before October 24, 2012, if, for SEC filers, the entity’s financial statements for the most recent annual or interim period have not yet been issued or, for all other entities, have not yet been made available

for issuance.

Update No. 2012-05—Statement of Cash Flows (Topic 230): Not-for-Profit Entities: Classification of the Sale Proceeds of Donated Financial Assets in the Statement of Cash Flows (a consensus of the FASB Emerging Issues Task Force)[Download]

October 2012 Effective prospectively for fiscal years, and interim periods within those years, beginning after June 15, 2013. Retrospective application to all prior periods presented upon the date of adoption is permitted. Early adoption from the beginning of the fiscal year of adoption is permitted. For fiscal years beginning before October 22, 2012, early adoption is permitted only if an NFP’s financial statements for those fiscal years and interim periods within those years have not yet been made available for issuance.

Update No. 2012-04—Technical Corrections and Improvements[Download]

October 2012 The amendments in this Update that will not have transition guidance will be effective upon issuance for both public entities and nonpublic entities. For public entities, the amendments that are subject to the transition guidance will be effective for fiscal periods beginning after December 15, 2012. For nonpublic entities, the amendments that are subject to the transition guidance will be effective for fiscal periods beginning after December 15, 2013.

Update No. 2012-01—Health Care Entities (Topic 954): Continuing Care Retirement Communities—Refundable Advance Fees[Download]

July 2012For public entities (including conduit bond obligors), the amendments in this Update are effective for fiscal periods beginning after December 15, 2012. For nonpublic entities, the amendments in this Update are effective for fiscal periods beginning after December 15, 2013. Early adoption is permitted.

Update No. 2011-11—Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities[Download]

December 2011

Effective for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. An entity should provide the disclosures required by those amendments retrospectively for all comparative periods presented.

Update No. 2011-10—Property, Plant, and Equipment (Topic 360):

December The amendments in this Update should be applied on a prospective basis to deconsolidation events

Derecognition of inSubstance Real Estate—a Scope Clarification (a consensus of the FASB Emerging Issues Task Force)[Download]

2011 occurring after the effective date. Prior periods should not be adjusted even if the reporting entity has continuing involvement with previously derecognized in substance real estate entities.

For public entities, the amendments in this Update are effective for fiscal years, and interim periods within those years, beginning on or after June 15, 2012. For nonpublic entities, the amendments are effective for fiscal years ending after December 15, 2013, and interim and annual periods thereafter. Early adoption is permitted.

Update No. 2011-06—Other Expenses (Topic 720): Fees Paid to the Federal Government by Health Insurers (a consensus of the FASB Emerging Issues Task Force)[Download]

July 2011 Effective for calendar years beginning after December 31, 2013, when the fee initially becomes effective.

http://www.fasb.org/jsp/FASB/Page/SectionPage&cid=1218220137102

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24th Feb 14

Statement of Sec. Balisacan at the First Management Association of the Philippines (MAP) Economic Briefing for 2014

Good morning. First of all, I would like to thank the Management Association of the Philippines (MAP) for inviting me again in its General Membership Meeting. It is my pleasure to present the progress, challenges, and outlook of the Philippine economy in this meeting and MAP’s First Economic Briefing for 2014. This is also to provide you an overview of the Philippine

Development Plan Midterm Update which spells out the government’s roadmap for inclusive growth. I will begin by...

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24th Feb 14

Imports slightly decline due to lower capital goods in Dec. 2013

MANILA – Lower payments for capital goods reduced merchandise imports by 0.1 percent in December, according to the National Economic and Development Authority (NEDA).   “After posting four consecutive months of positive growth from August to November 2013, the value of imported capital goods recorded a double-digit decline of 29.5 percent in December 2013,” said Economic Planning Secretary Arsenio M. Balisacan. This caused overall spending for merchandise imports to decrease to US$5.29 billion in December 2013, slightly lower than...

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16th Feb 14

Statement of Economic Planning Secretary Arsenio M. Balisacan during the press conference at Malacañan Palace

STATEMENT ECONOMIC PLANNING SECRETARY ARSENIO M. BALISACAN PRESS CONFERENCE Malacañan Palace Feb. 17, 2014 Good afternoon. I am here today to discuss about the economy, its progress and challenges, and what the government is doing to ensure that economic growth materially improves the lives of the greatest number of our people.  This is also by way of providing you an overview of the Philippine Development Plan Midterm Update which spells out the government’s roadmap for inclusive growth. Let me...

The Philippine Economy 2014: Fearless Forecast

PVB Chairman Roberto de Ocampo, delivered his fearless forecast of the Philippine economy during the Bases Conversion and Development Authority Group’s Board Meeting held last December 4, 2013. This forecast was first presented to the public at the Philippine Futuristics Society’s Conference held last November 22.

The Philippine Economy 2014: Fearless Forecast4 December 2013 Bases Conversion and Development Authority

Speech of Dr. Roberto F. de Ocampo, OBEChairman, Board of AdvisorsRFO Center for Public Finance & Regional Economic Cooperation

A very pleasant afternoon to all of you here at BCDA.

A. Review of Fearless Forecast 2013 My fearless GDP forecasts for 2012 and 2013 affirmed the government’s sustained growth targets of 5 to 6 percent and 6 to 7 percent, respectively. On the back of a strong domestic economy, the Philippines outperformed its Southeast Asian neighbors in 2012 with a better than expected growth of 6.8 percent. And with manufacturing, construction, and financial services, the country continued to do so in the first three quarters of 2013 at a faster pace of 7.4 percent. While I mentioned last year that OFW remittances would continue to fuel private spending, I had missed mention of election-related spending for this year. From being a “sick man of Asia,” the Philippines has now become a new tiger, a rising star, or a bright spot among emerging economies in the world. Forecast estimates after the supertyphoon Yolanda’s devastation place full year 2013 GDP growth within 6.8 percent to 7.2 percent, which still falls within the upper end of the government’s target.

In terms of the exchange rate, it further appreciated to PHP41.05/US$1 in end-2012 on account of rising foreign exchange inflows into the stock market in December 2012 as against expectations of reaching PHP42/US$ with the likelihood of currency appreciation.

Moody’s has been right on track with its outlook that I had cited. The Philippines is “poised to record a combination of faster growth, lower inflation ... and an increase in foreign exchange reserves.” A year later, our country takes pride in having earned three major investment grade credit ratings as a result of improved fiscal health, resulting in more access for local companies to cheaper borrowings to finance their expansion. Last October 3, Moody’s upgraded the country’s Ba1 credit rating to Baa3 with a positive outlook. This was preceded by Fitch as well as Standard and Poor’s which upgraded Philippine sovereign credit ratings to BBB minus with stable outlook, respectively, last March 27 and May 2. Moreover, Japan Credit Rating Agency raised the country’s credit rating to BBB with a stable outlook from BBB minus with a positive outlook last May 7. Furthermore, Japan Rating and Investment Information elevated its outlook on Philippine debt from BBB minus with a stable outlook to BBB minus with a positive outlook last August 2.

With these positive developments, the United Nations Conference on Trade and Development (UNCTAD) has recently cited the Philippines among the top 20 preferred investment destinations by transnational corporations for 2013-2015. As I have mentioned last year, the country continues to lag behind in terms of FDI level inflows among its ASEAN neighbors. UNCTAD, nevertheless, reports the Philippines as already having the second fastest-growing FDI inflows in Southeast Asia, rising 10.9 percent to US$2.2 billion in the first semester of 2013.

Furthermore, the Philippines achieved the most significant breakthrough as its ease of doing business ranking jumped 30 steps to 108th spot out of 189 economies, pushed largely by improvements in resolving insolvency, getting credit, and paying taxes, in the World Bank-International Finance Corporation’s Doing Business 2014 report and overtook Indonesia and Cambodia. We give credit to the competitiveness gameplan being implemented by the public-private sector National Competitiveness Council with a task force in order to reach the top third ranking among the most competitiveness countries in the world by 2016.

Moreover, the Philippines has already advanced 26 places from no. 85 in 2010 to no. 59 out of 148 countries in 2013 in terms of the Global Competitiveness Index of the World Economic Forum, reflecting excellent innovation and strong institutional environments and its competitive advantages in macroeconomic environment, financial market development, market size, and business sophistication. Meanwhile, in the World Competitiveness Yearbook 2013 of the Institute for Management and Development, the Philippines likewise posted improvements in overall competitiveness, rising five places to no. 38 out of 60 countries, backed by positive developments in economic performance, government efficiency, and business efficiency. There is no doubt that the country’s sustained global competitiveness performance now rest on solid economic fundamentals.

B. Fearless Forecast for 2014Looking forward to 2014, we expect GDP growth at the low end of the government’s 6.5 to 7.5 percent target, close to the average of GDP forecasts thus far for 2014 at 6.3%. ADB projected 6.1 percent; World Bank, 6.7 percent; and the IMF gave a lower forecast of 5 percent. Standard and Poor’s expects Philippine GDP to expand by 6 percent to 6.5 percent, while Moody’s gave a higher estimate of 6.5 percent to 7 percent. Some of these expectations have taken into account the effects of this year’s typhoons on the domestic economy next year. It remains to be seen whether the robust and above trend growth momentum of the Philippine economy at above 7 percent in the previous five consecutive quarters could be sustained or thrown off track.

From the outlook on output, we turn to unemployment. The jobless rate could range from a low of 7 percent as it was in 2012 to as high as 7.3 percent in the first three quarters of 2013.

Closely correlated to unemployment is inflation. In 2014, headline inflation is expected to rise to within the 3 percent to 5 percent target range of monetary authorities, due in part to a weakening peso. Prices of alcohol and tobacco products will rise for the second straight year beginning January 1, 204 to further discourage consumption of so-called sin products. Moreover, as a result of crop damages from recent typhoons, expect higher prices, particularly of basic food items, next year. On the monetary side, the withdrawal of SDA accounts have just shifted to bank deposits, after growth in domestic liquidity rose to above 30 percent as of the third quarter of 2013.

The availability of funds for lending in the financial system in turn pushed short-term interest rates closer to zero. On the fiscal side, the national government has programmed to contain its fiscal deficit to 2 percent of GDP in 2013 and 2014 from 2.3 percent in 2012. With a public

clamoring for greater accountability and transparency in the disbursement by the government of discretionary funds, the target on the national government deficit can possibly be better met, but public spending on infrastructure necessary for growth could face further delays.

With regard to the exchange rate, the peso-dollar rate will continue to hover above P43/US1, taking into account developments abroad, particularly on prospects and strength of the US economic recovery. Meanwhile, OFW remittances are expected to reach US$22 billion next year as overseas workers raise funds abroad to contribute donations for the victims of supertyphoon Yolanda.

C. Key Challenges for 2014The first challenge is recovering the President’s leadership influence. President Aquino has already passed the midpoint of his administration this year. By 2015, Congress will devote much of its attention to preparations for the May 2016 presidential, senatorial, congressional and local elections. Given our traditionally short political attention span, he faces a real possibility of being viewed as a lameduck leader. He may have a more challenging time pursuing his reform agenda with Congress. It doesn’t help much that he has been criticized in some quarters on the handling of relief efforts in Tacloban City after super typhoon Yolanda, his initial stand on Priority Development Assistance Fund, his defense of the legality of the Disbursement Acceleration Program, and the unconstitutionality of pork barrel funds, not to mention rising food inflation since October, led by a spike in rice prices. It is hoped that he could still bounce back in terms of public perception and ensure an orderly political transition in 2016. I remain optimistic that he can.

The second challenge is accelerating inclusive growth. Government’s think tank, the Philippine Institute for Development Studies, bluntly declared its key finding last October: “Growth has not been inclusive.” Furthermore, “poverty and inequality remains high.” And next month, we expect NEDA to release the Philippine Development Plan Update, which will lay down sector and area specific roadmaps for job creation and inclusive growth, including a framework for human development.

The Philippine Development Plan or PDP envisions an annual GDP growth of 7 percent to 8 percent from 2011 to 2016, generating at least one million in new employment each year. Based on the Department of Budget and Management’s document called the Budget of Expenditures and Sources of Financing for 2014, unemployment rate should go down from 7 percent in 2012 to 6.8 percent in 2013, 6.7 percent in 2014, 6.6 percent in 2015, and 6.5 percent in 2016. Hence, poverty incidence in the Philippines, as set under the Millennium Development Goals should be brought down to 16.6% of the population by 2015.

But as the country’s GDP growth accelerated to 6.8% in 2012 from 3.6% in 2011, unemployment rate remained at 7 percent, its component youth unemployment barely slowed down to 16.2 percent from 16.3 percent, underemployment rate rose to 20 percent from 19.3 percent, and net new jobs generated fell to 0.42 million from 1.16 million. In the first semester of 2012, poverty incidence was at 27.9 percent. Meanwhile, in Caraga region, tourism activities brought inclusive growth as underemployment dropped to 23 percent in April 2012 from 29 percent in April 2011.

Instead of inclusive growth, the whole country seemed to have experienced jobless or even job-killing growth. NEDA Director-General Arsenio Balisacan explains, however, that the present skills of the workforce “may not be able to match the growing and shifting demand for labor” which results in higher unemployment rates “at certain points in the transformation process.” Besides, according to the Bureau of Labor and Employment Statistics, there is a closer link between GDP growth and growth in full-time employment and a closer link between underemployment and poverty incidence. On the brighter side, labor productivity growth picked up to 5.7 percent in 2012 after bottoming out from 0.4 percent in 2011.

For the World Bank, to accelerate inclusive growth means “expanding formal sector employment even faster while rapidly raising the incomes of those informally employed.” By 2016, the World Bank estimates 12.4 million Filipinos unemployed, underemployed, and working in the informal sector. The Asian Development Bank calls for manufacturing to be reinvigorated to create jobs since the services sector cannot absorb all the unemployed.

Interestingly, the World Economic Forum’s most recent Global Agenda survey reveals three interrelated issues out of the top 10 trends for 2014. These are widening income disparities, persistent structural employment, and diminishing confidence, particularly among the youth, in economic policies.

The third challenge is upgrading infrastructure. According to the Global Competitiveness Report 2013-2014, the Philippines is the only ASEAN country where inadequate supply of infrastructure has emerged as the top problematic factor for doing business, dislodging corruption, which has historically been the biggest drag to our country’s competitiveness. Incidentally, Transparency International has just announced that the Philippines improved its ranking in the Corruption Perception Index to no. 94 out of 177 countries from no. 105. Turning back to infrastructure, WEF warns that the country cannot remain complacent given the dire strait of its transport infrastructure, at no. 84, especially with respect to airport, at no. 113, and seaport, at no. 116. Among ten ASEAN economies, the Philippines, at no. 96, is only ahead of Cambodia and Myanmar in terms of overall infrastructure.

To catch up with the rest of the region, the government’s economic managers have programmed further increases in public spending on infrastructure from 2.5 percent of GDP to 5 percent of GDP in 2015. This is consistent with the Philippine Development Plan strategy of massive investment in infrastructure.

With the proposed P2.27 trillion 2014 national budget pending in the Congress, resources may still be reprogrammed for the rehabilitation of damaged public facilities and the construction of climate change resilient structures in the Visayas that have been affected by this year’s disasters and natural calamities. Given that the Priority Development Assistance Fund has been declared unconstitutional by the Supreme Court, the P14.6 billion supplemental 2013 budget measure should also be passed by Congress without delay to accelerate reconstruction activity.

It has been reported that only five Public-Private Partnership projects could be completed by 2016. Just last month. the NEDA Board approved seven infrastructure projects, which include MRT 7 and LRT Line 1 North and South Extension Projects. Another one of these is the new

passenger terminal project for the Mactan-Cebu International Airport, whose winning bidder is scheduled to be announced this month. With regard to the Clark-NAIA airport system, the matter has already been submitted for decision by the President. These airport projects are necessary so international visitor arrivals can reach the National Tourism Development Plan targets of 6.8 million in 2014, 8.2 million in 2015, and 10 million in 2016? Will the necessary infrastructure facilities be in place in time for the World Economic Forum’s East Asia Summit in 2014 and the APEC Leaders’ Summit in 2015?

The fourth challenge is attracting investments. Gross domestic capital formation or investments as a share to GDP has been shrinking from 20.5 percent in 2010 to 18.7 percent in the first three quarters of 2013. Clearly, investments as a proportion of the domestic economy has been moving farther away from the target 22 percent share to GDP in 2016 under the PDP.

Furthermore, the World Economic Forum’s survey shows that perception on the business impact of rules on FDI in the Philippines has deteriorated from no. 69 to no. 86.

Aside from harmonizing the annual Investment Priorities Plan with industry roadmaps and trimming down the Foreign Investments Negative List, it is now high time to open up the economy to more foreign equity participation by removing the restrictive economic provisions of the 1987 Constitution to sustain the growth of domestic economy. It will also afford the country the opportunity to join negotiations for the high quality US-led Trans Pacific Partnership agreement that could bring in more volume of trade and investments into the country.

The fifth key challenge is preparing for regional integration. On December 31, 2015, the ASEAN Economic Community or AEC will be launched. AEC will transform the region into a single market and a single production base with free flow of goods, services, investments, capital, and skilled labor. There will be twelve priority sectors, namely, agro-based products, air travel/air transport, automotive, e-ASEAN, electronics, fisheries, healthcare, rubber-based products, textiles and apparel, tourism, wood-based products, and logistics. As of April 2013, 80 percent of measures under the 2007 AEC Blueprint have already been implemented. With the fast-approaching deadline, challenges lie in the area of connectivity, national legislation, and disparities in the level of economic development among ASEAN member states.

And among the bills relevant to ASEAN which is pending before Congress is the creation of a Competition Commission that will implement competition policy effectively across different sectors of the economy. In this regard, we must take note with urgency that the Philippines ranks next to Myanmar at the bottom among 10 ASEAN economies in 2013 in terms of effectiveness of anti-monopoly policy.

In March 2013, 78 percent of senior business executives polled by Makati Business Club said their companies are preparing to take the challenges and opportunities offered by AEC. At the same time, only 64 percent believe the country is prepared at present for regional integration. The New York-based think tank, the Conference Board, had a separate survey which identified the challenges facing Philippine companies as a result of deepening integration of the ASEAN community. First, greater competition for/shortage of management talent. Second, retention

challenges because of free movement of labor. Third, increased competition from free trade. And fifth, meeting uniform quality standards for products and services.

On the other hand, the ASEAN Secretariat says AEC will open up greater opportunities for businesses and industries to achieve economies of scale, which will raise productivity and at the same time reduce cost of production and result in more competitively priced goods. AEC will also bring in more trade and investments that will encourage entrepreneurship and innovation in products and services so consumers can have better variety, quality, and efficiency.

The sixth challenge is the passage of the freedom of information bill. One of the pending measures that failed to pass into law in the 15th Congress is the Freedom of Information bill, which could have complemented the reforms implemented by the Aquino administration to promote transparency, accountability, and good governance across all government agencies.

In terms of transparency in government policymaking, the Philippines is ranked by the World Economic Forum at no. 92, behind Singapore, Malaysia, Brunei Darussalam, and Indonesia but ahead of Thailand, Lao PDR, Cambodia, Vietnam, and Myanmar.

The passage of the FOI bill in the 16th Congress will ensure a level and transparent playing field for enterprises, which, in turn, will encourage faster expansion of our industries and contribute to inclusive growth.

Finally, as we look forward to the year ahead, my hopes run high that the BCDA Group will continue to play a strategic role in addressing our biggest problem for doing business in the country today. By developing world-class tollways, international airports and seaports, our country will attract foreign investments, particularly in the manufacturing sector, that will generate more productive jobs and make our economy’s growth inclusive.

Thank you.

Other PVB News

For any questions or clarifications, please call: Mike Villa-Real Vice-President Corporate Communications and Marketing Services Dept. Tel: 902-1670 Email: mcvillareal@veteransbank.com.ph http://www.veteransbank.com.ph/2013news-17.html

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The world in figures: Countries

PhilippinesNov 18th 2013 | From The World In 2014 print edition

GDP growth: 6.6%GDP per head: $2,760 (PPP: $4,620)Inflation: 3.3%

Budget balance (% GDP) -1.5Population: 107.7m

The president, Benigno Aquino, has been buoyed by a strong showing in the 2013 general election and by a bustling economy. He will press ahead with his agenda, including transfers to the poor, job-creating industrial development and better infrastructure through public-private partnerships. Rising disposable incomes will fuel the dominant service sector, and Filipinos working abroad will maintain the tide of remittances that keeps the country flush with dollars. Growth will remain healthy.

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Philippines Benigno Aquino

From The World In 2014 print edition

http://www.economist.com/news/21588994-philippines?zid=306&ah=1b164dbd43b0cb27ba0d4c3b12a5e227

http://nscb.gov.ph/pressreleases/2013/PR-201304-NS1-04_poverty.asp

Press ReleasePoverty incidence unchanged, as of first semester 2012—NSCB (NSCB-PR-201304-NS1-04, Posted 23 April 2013)

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The National Statistical Coordination Board (NSCB) releases its latest report today on the state of poverty in the country. The report— using data from the Family Income and Expenditure Survey (FIES) conducted by the National Statistics Office (NSO) last July 2012– measured poverty incidence or the proportion of people below the poverty line to the total population.

In a press briefing, NSCB Secretary General Jose Ramon G. Albert reports that poverty incidence among population was estimated at 27.9 percent during the first semester of 2012.  Comparing this with the 2006 and 2009 first semester figures estimated at 28.8 percent and 28.6 percent, respectively, poverty remained unchanged as the computed differences are not statistically significant.

Food and poverty thresholds

The report points out that during the first semester of 2012, a Filipino family of five needed PhP 5,458 to meet basic food needs every month and Php 7,821 to stay above the poverty threshold

(basic food and non-food needs) every month. These respective amounts represent the food and poverty thresholds, which increased by 11.1 percent from the first semester of 2009 to the first half of 2012, compared to the 26.0 percent-increase between the 1st semesters of 2006 and 2009.  

The food threshold is the minimum income required by an individual to meet his/her basic food needs and satisfy the nutritional requirements set by the Food and Nutrition Research Institute (FNRI), while remaining economically and socially productive. Put another way, the food threshold helps measure food poverty or “subsistence,” which may also be described as extreme poverty.

Poverty threshold is a similar concept, but incorporates basic non-food needs, such as clothing, housing, transportation, health, and education expenses, among others.

Poverty among Filipino families

The NSCB also releases statistics on poverty among families—a crucial social indicator that guides policy makers in their efforts to alleviate poverty.

According to the report, the subsistence incidence, which represents the proportion of Filipino families in extreme poverty, was estimated at 10.0 percent during the first semester of 2012. At 10.0 percent in the first semester of 2009 and 10.8 percent in the first half of 2006, the differences among these three figures remain statistically insignificant.

In terms of poverty incidence among families, the NSCB estimates a rate of 22.3 percent during the first semester of 2012, and 23.4 percent and 22.9 percent during the same periods in 2006 and 2009, respectively.

Estimated cost of eradicating poverty

The NSCB also releases other poverty-related statistics, such as the income gap. This measures the amount of income required by the poor in order to get out of poverty, in relation to the poverty threshold itself. This may be used as a hypothetical benchmark for the amount needed to eradicate poverty as a whole, assuming expenses are focused solely on assistance rather than on targeting costs (such as operations and implementation). 

In other words, using figures for the income gap and the poverty threshold, the NSCB estimates the total cost of poverty eradication (exclusive of targeting costs) is Php 79.7 billion for the first semester of 2012. It should be noted that the budget of the Department of Social Welfare and Development (DSWD) for the CCT was Php 39.4 billion for the entirety of 2012.

More frequent release of poverty statistics

The release of the latest official poverty statistics is a remarkable milestone for the country. In previous years, official poverty statistics were only released every three years, and usually with a one-year time lag from the year when the FIES data was first collected. However, starting this

year, poverty statistics will be available in two series for every year in which the FIES is conducted—once, for the first semester and secondly, for the entire year.

In August 2012, Director General Arsenio Balisacan of the National Economic and Development Authority (NEDA) suggested to the NSCB and the NSO to examine FIES data for the first semester of 2012 and release it as quickly as possible. This is consistent with earlier efforts and discussions of the TC PovStat and the NSCB to respond to the growing need for more frequent and timely poverty statistics.

Albert says that the NSCB—along with partner institutions such as the NSO, the Bureau of Agricultural Statistics (BAS) and the members of the TC PovStat – ramped up the estimation and publication schedule to make this possible, while ensuring data quality and accuracy.

He hopes that, through this initiative , the Philippine Statistical System, particularly the NSCB, will be able to deliver a clearer, more relevant and more up-to-date snapshot of poverty in the Philippines to help policymakers and stakeholders alike (from both the public and private sectors) craft informed programs and policies based on timely and accurate statistics. 

 

Dami ng mahirap sa Pilipinas, walang pagbabago mula first semester ng 2006 at first semester ng 2012 - NSCB(NSCB-PR-201304-NS1-04, Posted 23 April 2013)

Inilabas ngayong araw ng National Statistical Coordination Board (NSCB) ang pinakahuling ulat tungkol sa bilang ng mga mahihirap sa ating bansa mula sa mga poverty lines na sinukat ng NSCB at sa mga datos na kinalap hango sa Family Income and Expenditure Survey (FIES), na isinagawa ng National Statistics Ofice (NSO) noong July 2012. Mula rito, sinukat ang poverty incidence  o bahagdan ng ating populasyon na kumikita nang mababa sa poverty line.

Sa isang press briefing, iniulat ni NSCB Secretary General Jose Ramon G. Albert na halos tatlo sa sampung Pilipino ang mahirap noong unang semester ng taong 2012. Ang poverty incidence sa kabuuang populasyon ng ating bansa ay tinatayang  27.9% Kung ihahambing ang numerong ito sa tinatayang mga numero noong unang semester ng 2006 at 2009  na 28.8% at 28.6%, ayon sa pagkasunod, ang kahirapan sa Pilipinas ay walang malaking pagbabago at itinuturing ang pagbabagong ito na hindi “statistically significant”.

Ang Food at Poverty Thresholds

Inilalarawan ng nasabing ulat,  na ang isang pamilyang Pinoy na binubuo ng limang katao ay dapat kumita ng halagang PhP 5,458 kada buwan upang makamit ang pangunahing pangangailangan sa pagkain at halagang PhP 7,821 kada buwan kung isasali rin naman ang mga pangagailangan maliban sa pagkain noong unang semester ng 2012.  Sa halagang nabanggit na food at poverty thresholds, mapapansin na tumaas ang mga halaga nito ng 11.1% mula sa unang

semester ng 2009 hanggang sa unang anim na buwan ng taong 2012, kumpara sa 26% na pagtaas sa pagitan ng mga unang semesters ng  2006 at 2009.

Ang food threshold ay ang pinakamababang maaring kita/income ng isang indibidwal upang matugunan nito ang pangunahing pangangailangan sa pagkain na may sapat na nutrisyon na itinatakda ng Food and Nutrition Research Institute (FNRI) upang manatiling produktibo sa kanyang buhay socio-ekonomiko. Dagdag pa rito, nakatutulong din ang food threshold upang masukat ang food poverty o “subsistence” na kung tawagin din ay extreme poverty.

Ang poverty threshold ay katulad din ng konsepto ng food threshold subalit kabilang na rito ang mga pangangailangan bukod sa pagkain, tulad ng gastos sa transportasyon, kalusugan, edukasyon, at marami pang iba.

Ang kahirapan sa hanay ng pamilyang Pinoy

Ang NSCB ay nagpapalabas din ng datos ukol  sa kahirapan sa pamilyang Pinoy. Ito’y  isang mahalagang “social indicator” na nagbibigay ng tamang direksyon sa mga policy makers sa kanilang gawaing masugpo ang kahirapan sa bansa. Ayon sa ulat, ang “subsistence incidence” na kumakatawan sa bahagdan ng mga pamilya sa ating bansa na nabibilang sa tinatawag na “extreme poverty” ay tinatayang nasa 10% sa unang semester ng 2012.  Ganito rin halos ang datos noong 2009 samantalang 10.8% ang tinatayang numero noong first semester ng 2006. Itinuturing na hindi “statistically significant” ang pagkakaiba ng mga nabanggit na mga datos.

Tinataya rin ng NSCB, na ang “poverty incidence among families” o bahagdan ng mga pamilyang Pinoy na mahirap ay umabot sa 22.3% sa unang semester ng taong 2012, kumpara sa 22.8% noong  unang semester ng 2009.  Hindi rin statistically significant ang mga pagbabagong ito.

Ang pagtaya sa halaga ng gastusin upang masugpo ang kahirapan sa bansa

Maliban sa mga nabanggit na konsepto sa kahirapan, nagpapalabas din ang NSCB ng iba pang estadistika ukol dito tulad ng tinatawag na “income gap”.  Ito ay isang sukatan ng halaga ng sahod at kitang kailangan ng mga mahihirap upang makawala sa kahirapan, at may kaugnayan din sa poverty threshold. Ito ay maaring gamitin bilang “hypothetical benchmark” para makuha ang halagang kailangan upang sa pangkahalatan ay masugpo ang problema sa kahirapan, kung ang gastusin rito ay nakatuon sa pagtulong sa kanila maliban sa mga targeting costs (sa operation and implementation ng programa).

Sa madaling sabi, kapag ginamit ang income gap at poverty threshold, lumalabas na ang pagtaya sa  “total cost of poverty eradication” (hindi kasama ang targeting cost) ay PhP 79.7 bilyon para sa unang semester ng 2012. Kung mapapansin, ang budget ng Department of Social Welfare and Development (DSWD) para sa programa nito sa CCT ay PhP 39.4 bilyon  para sa buong taon ng 2012.   

Mas malimit na pagpapalabas ng poverty statistics

Isang natatanging hakbangin para sa Philippine Statistical System (PSS) ang pagpapalabas ng kasalukuyang datos ukol sa kahirapan. Noong mga nakalipas na panahon,  ang official poverty statistics ay lumalabas lamang sa bawat tatlong taon na makalipas, na may kasama pang isang taong time lag mula sa panahong isinasagawa ang FIES. Subalit, simula ngayong taong ito, ang poverty statistics ay magiging available na sa dalawang series sa bawat taon na isinasagawa ang FIES, una para sa unang semester at ikalawa, para sa buong taon.Noong Agosto 2012, iminungkahi ni Director General Arsenio M. Balisacan ng National Economic and Development Authority (NEDA) sa NSCB at NSO na pag-aralan ang mga datos ng FIES para sa unang semester ng 2012 at magpalabas kaagad ng mga estadistika ukol rito. Ito rin ay alinsunod sa mga mga hakbangin at pag-uusap sa Technical Committee on Poverty Statistics (TC PovStat) at ng NSCB na tugunan ang lumalaking pangangailangan para sa mas madalas at napapanahong estadistika ukol sa kahirapan.

Sinabi ni  NSCB Secretary General Albert na ang NSCB, kasama ang mga kabalikat na institusyon tulad ng NSO, Bureau of Agricultural Statistics (BAS), at mga miyembro ng TC PovStat – ay nagtulong-tulong upang maisakatuparan ang estimation ng first semester poverty statistics, at maseguro ang data quality at accuracy nito.

Umaasa si Albert na sa ganitong hakbangin, ang PSS, lalo’t higit ang NSCB, ay makapagpalabas ng mas maayos, mas makabuluhan at napapanahong datos ukol sa kahirapan sa Pilipinas upang makatulong sa mga policy makers at mga iba’t ibang stakeholders mula sa pribado at pampublikong sector, na makagawa ng tamang programa ayon sa napapanahon at tamang estadistika.  

 

 

Updated: 23 April 2013

 - See more at: http://nscb.gov.ph/pressreleases/2013/PR-201304-NS1-04_poverty.asp#sthash.4oeSkJYQ.dpuf

http://census.gov.ph/content/summary-inflation-report-consumer-price-index-2006100-december-2013

Summary Inflation Report Consumer Price Index (2006=100) : December 2013Reference Number: 2014-002

Release Date: Tuesday, January 7, 2014

 

 

DECEMBER AND NOVEMBER 2013

Year-on-Year Inflation Rates, All Items

December

2013November

2013Year-to-

date

  Philippines

     Headline 4.1 3.3 3.0

     Core 3.2 2.8 2.9

  NCR

     Headline 2.6 1.9 1.6

  AONCR

    Headline 4.6 3.8 3.3

The year-on-year headline inflation at the national level jumped to 4.1 percent in December from 3.3 percent in November as all commodity groups recorded higher annual increases except communication; recreation and culture; and education.  This was the highest inflation since December 2011. Inflation a year ago was 3.0 percent

Meanwhile, the country's annual average headline inflation for the year 2013 slowed to 3.0 percent from 3.2 percent in 2012.

Annual inflation in the National Capital Region (NCR) accelerated to 2.6 percent in December from 1.9 percent in November. Higher annual growths posted in the indices of food and non-alcoholic beverages; alcoholic beverages and tobacco; clothing and footwear; housing, water, electricity, gas and other fuels index; furnishing, household equipment and routine maintenance of the house; transport; and communication contributed to the uptrend. The annual

average inflation rate in NCR decelerated to 1.6 percent in 2013 from 2.9 percent in 2012.

In Areas Outside NCR (AONCR), annual inflation picked up 4.6 percent in December from 3.8 percent in November. Higher annual upticks were noted in the indices of the six commodity groups namely food and non-alcoholic beverages; alcoholic beverages and tobacco; clothing and footwear; housing, water, electricity, gas and other fuels; health; and transport. The annual average inflation for the year inched up 3.3 percent from 3.2 percent in 2012.

Excluding selected food and energy items, core inflation advanced to 3.2 percent in December from 2.8 percent in November. The annual average core inflation however eased to 2.9 percent in 2013 from 3.7 percent a year ago.

 

 

Year-on-Year Inflation Rates in the Philippines, All ItemsJanuary 2008 - December 2013

(2006=100)

MonthYear

2008 2009 2010 2011 2012 2013

January4.6 7.1 3.9 4.0 4.0

3.1

Year-on-Year Inflation Rates in the Philippines, All ItemsJanuary 2008 - December 2013

(2006=100)

February5.1 7.2 3.9

4.7 2.7 3.4

March5.9 6.7 3.9

4.9 2.6 3.2

April7.3 5.6

4.0 4.7 3.0 2.6

May8.2 4.3

3.9 4.9 3.0 2.6

June9.4 3.2

3.6 5.2 2.9 2.7

July10.2 2.2

3.7 4.9 3.2 2.5

August10.5 1.7

4.1 4.6 3.8 2.1

September10.1 2.3

3.8 4.7 3.7 2.7

October9.7 2.9

3.3 5.2 3.2 2.9

November9.1 3.5

3.7 4.7 2.8 3.3

December7.8 4.4

3.6 4.2 3.0 4.1

Average8.3 4.2

3.8 4.6 3.2 3.0

 

Month-on-Month Inflation Rates, All Items(2006=100)

Dec 2013 Nov 2013

Philippines 0.7 0.4

  NCR 0.5 0.9

  AONCR 0.8  0.4

 

The heavily-weighted food items such as rice, shrimps, crabs, selected fresh fish species, fruits, vegetables, cooking oil and common condiments and seasonings were priced higher during the month. These primarily pushed up the Philippines’ consumer prices by 0.7 percent in December from 0.4 percent in November. Increments in the prices of LPG, kerosene, gasoline and diesel and higher charges in electricity rates in selected regions also contributed to the overall mark-up in the month-on-month inflation rate.

CONSUMER PRICE INDEX(2006=100)

DECEMBER 2013

   By Region, Year-on-Year

Annual inflation in NCR rose 2.6 percent in December from 1.9 percent in November. In AONCR, it likewise increased 4.6 percent in December from 3.8 percent in November.

Except in Davao region and ARMM, all the regions posted higher annual rates. The biggest gain of 1.8 percentage points was recorded in Eastern Visayas (7.2% from 5.4%), the highest annual inflation during the month. Meanwhile, the lowest annual rate of 3.1 percent was in MIMAROPA.

Among the regions in AONCR, the highest annual average inflation in 2013 was noted in Central Visayas at 4.7 percent while Ilocos region had the lowest annual average inflation at 2.3 percent.

   By Commodity Group, Year-on-Year

At the national level, higher annual mark-ups were observed in all the commodity groups except in the indices of communication; recreation and culture; and education.

The annual growth in the food alone index in the Philippines climbed 5.0 percent in December from 4.0 percent in November.

Faster annual rates were registered in all the food groups except in oils and fats index which retained its negative annual change.

The annual average inflation for food alone index advanced 2.8 percent in 2013 from 2.4 percent in 2012.

The 2013 annual average inflation in food and non-alcoholic beverages index grew 2.8 percent from 2.4 percent in 2012; alcoholic beverages and tobacco index, 29.8 percent from 5.0 percent; and communication index, 0.2 percent from

0.1 percent. Those for the rest of the commodity groups were slower during the year compared to their 2012 rates.

In NCR, the annual inflation for food and non-alcoholic beverages index accelerated 3.7 percent in December from 3.5 percent in November; alcoholic beverages and tobacco index, 15.6 percent from 15.5 percent; clothing and footwear index, 2.1 percent from 1.8 percent; housing, water, electricity, gas and other fuels index, 2.2 percent from 0.7 percent; and furnishing, household equipment and routine maintenance of the house index, 1.7 percent from 1.6 percent. From zero growth, the transport and communication indices went up 1.3 percent and 0.1 percent, respectively. The other commodity groups either posted slower annual movements or retained their last month’s rate.

Inflation in the food alone index in NCR inched up 3.9 percent in December from 3.7 percent in November.

A double-digit annual hike was still seen in rice index at 12.8 percent in December from 10.7 percent in November. Moreover, the annual rate in corn index was higher at 8.8 percent from 7.8 percent and milk, cheese and egg index, 1.2 percent from 1.1 percent.

Either slower or negative annual rates were however registered in the rest of the food groups with the indices of meat and vegetables retaining their respective last month’s rates of 1.2 percent and 9.7 percent.

The annual average inflation for food alone index in the area leaped 2.2 percent in 2013 from 1.7 percent a year ago.

The annual average inflation for food and non-alcoholic beverages index increased to 2.2 percent in 2013 from 1.8 percent in 2012; alcoholic beverages and tobacco index, 16.9 percent from 3.9 percent; furnishing, household equipment and routine maintenance of the house index, 4.2 percent from 3.2 percent; health index, 3.2 percent from 2.7 percent; and education index, 4.0 percent from 3.4 percent. On the other hand, the rest of the commodity groups have slower annual average rates with the transport index registering a 0.2 percent decline during the year from 1.0 percent growth in 2012.

In AONCR, the annual movement in the food and non-alcoholic beverages index went up 5.0 percent in December from 3.9 percent in November; alcoholic beverages and tobacco index, 33.9 percent from 33.7 percent; clothing and footwear index, 3.5 percent from 3.4 percent; housing, water, electricity, gas and other fuels index, 4.0 percent from 2.4 percent; health index, 2.9 percent from 2.5 percent; and transport index, 1.2 percent from 0.9 percent. Those for rest of the commodity groups either decelerated or remained at their last month's rate.

The annual growth in the food alone index in AONCR picked up 5.1 percent in December from 4.0 percent in November.

Annual adjustment in the rice index rose 8.7 percent in December from 7.7 percent in November. Higher annual upticks were seen in 13 regions with the biggest jump of 2.9 percentage points recorded in Eastern Visayas (13.5% from 10.6%).

All the other food groups have higher annual increments except for oils and fats index which continued to post a negative rate of 0.2 percent from -3.2 percent.

The 2013 annual average inflation of the food alone group moved faster at 2.9 percent compared to 2.4 percent in 2012.

The annual average rate for food and non-alcoholic beverages index advanced 2.9 percent in 2013 from 2.5 percent in 2012; alcoholic beverages and tobacco index, 32.3 percent from 5.1 percent; communication index, 0.2 percent from zero growth; and restaurant and miscellaneous goods and services index, 3.1 percent from 3.0 percent. Those for the rest of the commodity groups were slower with the index of recreation and culture retaining its last year’s annual average growth of 2.2 percent.

   By Region, Month-on-Month

The month-on-month inflation in NCR decelerated to 0.5 percent in December from 0.9 percent in November. A slower increase was posted in the housing, water, electricity, gas and other fuels index at 0.8 percent from 2.4 percent. On the other hand, bigger increments were observed in alcoholic beverages and tobacco and furnishing, household equipment and routine maintenance indices at 0.5 percent and 0.2 percent, respectively from 0.1 percent. From zero growth, the clothing and footwear index moved up 0.3 percent; transport index, 1.1 percent; and communication index, 0.1 percent. Those for rest of the commodity groups were either zero or remained at their last month's rate.

Consumer prices in AONCR likewise increased 0.8 percent in December from 0.4 percent in November. Higher monthly mark-ups were posted in food and non-alcoholic beverages index at 0.9 percent in December from 0.5 percent in November; alcoholic beverages and tobacco and health indices, 0.5 percent from 0.2 percent; housing, water, electricity, gas and other fuels index, 1.4 percent from 0.8 percent; and transport index, 0.3 percent from zero growth. The rest of the commodity groups either retained their previous month's rate or had zero growth.

Ten regions had higher monthly price increases with Eastern Visayas recording the highest rate at 1.8 percent.

Among the three big areas of the country, price hikes of consumer items were generally faster in Visayas compared to Luzon and Mindanao areas.

   By Commodity Group, Month-on-Month

Movements in the general level of consumer prices were higher at 0.7 percent in December from 0.4 percent in November. This was mainly due to the 0.8 percent growth in the heavily-weighted food and non-alcoholic beverages index from 0.5 percent. Moreover, add-ons in alcoholic beverages and tobacco and health indices were higher at 0.5 percent and 0.4 percent, respectively from 0.2 percent; and clothing and footwear and restaurant and miscellaneous good and services indices, 0.2 percent from 0.1 percent. From zero growth, the index for transport inched up 0.5 percent and recreation and culture index, 0.1 percent.  The other commodity groups either retained their last month’s rate or had zero growth.

Higher monthly price increments in rice were noted in eleven regions with Eastern Visayas posting the highest monthly rate of 2.7 percent. Thus, the group’s index AONCR went up 0.9 percent in December from 0.1 percent in November. In NCR, prices of rice likewise continued to move upward at 2.1 percent from 0.4 percent. At the national level, the rice index jumped by 1.1 percent from 0.1 percent.

Prices of selected sea foods such as crabs and shrimps were generally higher in the markets. Prices for selected fish species also went up during the month. This was due to higher demand along with the low supplies of fish in the markets brought about by the difficulty in catching fish species during the cold weather conditions. These factors raised the fish index in the Philippines by 1.1 percent; NCR, 1.6 percent and AONCR, 1.0 percent.

Potatoes, cabbage, carrots, okra, onions and garlic were among those vegetables which were priced higher in many regions. Hence, the vegetable index in AONCR moved up by 1.8 percent. This was however slower than the 2.5 percent growth last month. On the contrary, sufficient deliveries of vegetables in the NCR markets coming from the nearby provinces pushed down their prices during the month. It resulted to a 1.6 percent drop in the group’s index in the area. In the Philippines, the increment in the vegetables index improved to 1.3 percent from 1.7 percent.

The season of preparing for the Christmas and New Year's celebrations saw upticks in the prices of fresh meat such as chicken, beef, pork and meat products. These effected a 0.4 percent increment in the meat index in AONCR from 0.1 percent. In NCR, the meat index also went up but at a slower pace of 0.2 percent from 0.8 percent. The national index rose 0.3 percent from 0.2 percent.

The fruit index in NCR dropped by 1.5 percent from a 3.5 percent growth in November due to continuous flowing-in of locally grown fruits in the NCR markets. On the contrary, the fruit index in AONCR climbed 1.7 percent from 0.5 percent due to price hikes in banana, papaya and mango. These offsetting price movements caused the index at the national level to move at its last month's rate of 1.1 percent.

The national index for oils and fats accelerated 1.6 percent; NCR, 1.0 percent; and AONCR, 1.8 percent as prices of cooking oil were on the uptrend.

Price hikes in selected condiments and seasonings contributed to growths in the food products not elsewhere classified index at 1.0 percent in the Philippines and AONCR and 0.6 percent in NCR.

The soaring prices of LPG and kerosene pushed the index for housing, water, electricity, gas and other fuels in the Philippines by 1.3 percent; NCR, 0.8 percent; and AONCR, 1.4 percent. Higher charges in electricity rates were also noticed in selected regions.

From zero growth, the transport index in the Philippines went up by 0.5 percent; NCR, 1.1 percent; and AONCR, 0.3 percent. This was due to the general upward price adjustments in gasoline and diesel during the month.

With price increases in meals eaten outside the home and some items for personal care and effects in selected regions, the index for restaurant and miscellaneous goods and services in the Philippines and AONCR gained 0.2 percent. In NCR, the group's index still had a zero growth.

NOTES:

1. The second phase survey reports from Sulu and Tawi-tawi were not received as of January 6, 2014.

2. CPIs and inflation rates by province and selected city are also available upon request at NSO, Industry and Trade Statistics Department, Economic Indices and Indicators Division (Telephone Numbers: 716-39-35 and 715-33-47).

 

(Sgd.) CARMELITA N. ERICTA          Administrator

Attachment: Table 1 Monthly CPI for All Income Households in the Philippines by Commodity Group: (2006=100)

Table 1A Monthly CPI for All Income Households in NCR by Commodity Group: (2006=100)

Table 1B Monthly CPI for All Income Households in Areas Outside NCR by Commodity Group: (2006=100)

Table 2 Monthly CPI for All Income Households in the Philippines by Commodity Group, Area/Region: (2006=100)

Table 3 Month-on-Month Changes of the CPI by Area in Percent: (2006=100)

Table 4 Year-on-Year Changes of the CPI by Area in Percent: (2006=100)

Table 5 Month-on-Month Changes of the CPI in Percent, by Area, by Commodity Group: (2006=100)

Table 6 Year-on-Year Changes of the CPI in Percent, by Area, by Commodity Group: (2006=100)

Table 7 Month-on-Month Regional Inflation Rates by Commodity Group: (2006=100)

Table 8 Year-on-Year Regional Inflation Rates by Commodity Group: (2006=100)

Table 9 Regional Month-on-Month Inflation Rates of Selected Food Items: (2006=100)

Table 10 Regional Year-on-Year Inflation Rates of Selected Food Items: (2006=100)

Table 11 Monthly CPI for Food and Food and Non-Alcoholic Beverages for All Income Households, by Area: (2006=100)

Table 12 Month-on-Month Changes of the CPI on Food and Food and Non-Alcoholic Beverages, in Percent: (2006=100)

Table 13 Year-on-Year Changes of the CPI on Food and Food and Non-Alcoholic Beverages, in Percent: (2006=100)

Table 14 Monthly Headline and Core CPI for All Income Households in the Philippines (2006-100)

Table 15 Headline and Core Inflation Rates in the Philippines (2006=100)

Table 16 CPI for All Income Household in the Philippines, by Selected Commodities and by Geographic Area: (2006=100)

Table 17 CPI for All Income Households in the Philippines by Major Commodity Group(2006=100)_Jan 1994-Dec 2013

Table 18 CPI for All Income Households in the National Capital Region by Major Commodity Group(2006=100)_Jan 1994-Dec 2013

Table 19 CPI for All Income Households in Areas Outside NCR by Major Commodity Group(2006=100)_Jan 1994-Dec 2013

The 2006-based Consumer Price Index

Primer on Consumer Price Index

Primer on Core Inflation

Republic Act No. 10625   •   Implementing Rules and RegulationsPhilippine Statistical Act of 2013

"An Act Reorganizing the Philippine Statistical System, Repealing for the Purpose Executive Order Number One Hundred Twenty-One, Entitled "Reorganizing and Strenghtening the Philippine Statistical System and for Other Purposes"

Creates the Philippine Statistics Authority (PSA) that shall comprise the PSA Board and offices on sectoral statistics, censuses and technical coordination, civil registration and central support and field statistical services. The PSA shall be constituted from among the existing personnel of the major statistical agencies engaged in primary data collection and compilation of secondary data, i.e., the National Statistics Office, the Technical Staff of the National Statistical Coordination Board, the Bureau of Agricultural Statistics, and the Bureau of Labor and Employment Statistics.

The PSA shall be headed by a National Statistician who shall be appointed by the President. The NS will be supported by three Deputy National Statisticians.

The data produced by the PSA shall be the official and controlling statistics of the government and the PSA will be characterized by Integrity, Independence and Professionalism. It shall serve as the central statistical authority of the Philippine government on primary data collection and administer civil registration functions in the country as provided for in Act No. 3753, otherwise known as the Civil Registry Law. While processes are underway for the development of the PSA website, currently, the respective website of the merged agencies are still accessible and regularly updated.

Bureau of Agricultural Statistics

National Statistical Coordination Board

Bureau of Labor and Employment Statistics

National Statistics Office

http://www.nscb.gov.ph/#page=t1

Department of Tourism (Philippines)From Wikipedia, the free encyclopedia

Department of Tourism

Kagawaran ng Turismo

Department overview

Formed May 11, 1973

Annual budget ₱2.0 billion (2014)[1]

Department executive Ramon R. Jimenez

Website www.tourism.gov.ph

The Department of Tourism (Filipino: Kagawaran ng Turismo, DOT) is the executive department of the Philippine government responsible for the regulation of the Philippine tourism industry and the promotion of the Philippines as a tourist destination.

Contents 1 History 2 Organization of the Department

3 Tourism projects

4 List of the Secretaries of the Department of Tourism

5 Tourism Slogans

6 References

7 External links

History

Started as a private initiative to promote the Philippines as a major travel destination, the Philippine Tourist & Travel Association was organized in 1950. In 1956, the Board of Travel and Tourist Industry was created by Philippine Congress. As stipulated in the Integrated Reorganization Plan in 1972 sanctioned as a law under Presidential Decree No. 1, as amended, the Department of Trade and Tourism was established, reorganizing the then Department of Commerce and Industry. A Philippine Tourism Commission was created under the unified Trade and Tourism Department to oversee the growth of the tourism industry as a source of economic benefit for the country. Then in 1973, President Ferdinand Marcos created a new cabinet-level Department of Tourism (DOT) by splitting the Department of Trade and Tourism into two separate departments. Included in the new Department of Tourism, the agency Philippine Tourism Authority (PTA) and the Philippine Convention Bureau (PCB) were created. The Department of Tourism was then renamed Ministry of Tourism as result of the shift in the form of government as enshrined in the amendments to the 1973 Constitution.

In 1986, under Executive Order Numbers 120 and 120-A signed by President Corazon Aquino, the Department of Tourism was reorganized and, correspondingly, the Philippine Convention Bureau was renamed the Philippine Convention and Visitors Corporation. In 1998, the Department of Tourism assumed a prominent role in culmination of centennial celebrations of the Philippine's Independence from Spain.

In 2003, the Department of Tourism initiated one of its most successful tourism promotion project, Visit Philippines 2003, under Secretary Richard J. Gordon.

The latest improvements in the tourism industry in the country came about with the passage of Republic Act No. 9593 or the "Tourism Act of 2009."

Organization of the Department Tourism Infrastructure and Enterprise Zone Authority (TIEZA) Tourism Promotions Board (TPB)

Intramuros Administration (IA)

National Parks Development Committee (NPDC)

Nayong Pilipino Foundation (NPF)

Philippine Retirement Authority (PRA)

Philippine Commission on Sports Scuba Diving (PCSSD)

Duty Free Philippines Corporation (DFPC)

Tourism projects Visit Islands Philippines 1994 Miss Universe Beauty Pageant 1994

Florikultura '98 - international horticulture exhibition

Expo Pilipino 1998 - Philippine Centennial International Exposition

1998 Philippine Centennial Celebrations

World Exposition 2002 Manila (cancelled due to financial problems of the government) [1]

Visit Philippines 2003

WOW (World Of Wonders) Philippines

"Pilipinas Kay Ganda" slogan and campaign 2010[2]

It's More Fun in the Philippines!

List of the Secretaries of the Department of TourismMain article: Secretary of Tourism (Philippines)

Tourism Slogans Islands Philippines WOW Philippines

Pilipinas Kay Ganda (2010)[3][4]

It's more fun in the Philippines (2012–present)

References1. Jump up ̂ "GAA2014". DBM. Retrieved 23 January 2014.2. Jump up ̂ "PNoy launches 'Pilipinas Kay Ganda' as new tourism campaign slogan". Press

release. Philippine Information Agency. November 14, 2010.

3. Jump up ̂ http://www.spot.ph/featured/46961/philippines-new-tourism-slogan-pilipinas-kay-ganda-fails-to-impress-netizens

4. Jump up ̂ http://www.abs-cbnnews.com/nation/11/21/10/%E2%80%98pilipinas-kay-ganda%E2%80%99-officially-dead

External links

Wikimedia Commons has media related to Department of Tourism (Philippines).

Official DOT Philippines website Official DOT Philippines Twitter account

DFPC website