Grdp based 20-80 ratio in fund allocation

Hilario P. Martinez 1

A VISION, and

a SOLUTION as well

Imagine the Philippines with 17 vibrant

and competitive regions with metropolitan

capitals


Contending factors in finding a strategic intervention


Is the relationship a MYTH or a FACT?

Gross Regional Domestic Product (GRDP) Rate

Annual General Appropriation (by Region)


Interesting or Unfair Sharing Schemes?

Share in the Gross Regional Domestic Product

Share in Government Funds and Resources

… other

Regions


Legend: NCR = Metro-Manila CALABARZON = Region 4A Central Luzon = Region 3

METRO-MANILA, A NATIONAL CAPITAL REGION

A Benchmark?

An Unending Development Concern? or

A Key to a Strategic Solution?


Metro-Manila = National Capital Region

Seat of National Government

Center of Industry, Finance and Commerce

Headquarters to Multinational and Large Enterprises

Center of Education and Training

The only political region composed of urbanized cities

Earns 1/3 share of GDP but with no Agriculture component

The most densely populated region

Most developed road, transportation and communication infrastructures

Highest density of motor vehicles

Highest number of micro-enterprises


Peculiarities:

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MAJOR CONCERNS OF METRO-MANILA


Big-time Spending for an Area that is only 0.21% of the Philippines

Build an integrated metro wide commuter

train system

Build better flood control and warning

systems

Build more elevated

highways

Build more low-cost housing projects

Rehabilitate waterways and

drainage systems

Install state-of-the-art traffic management

system

Install a metro-wide electronic

surveillance system

Establish more & better garbage /waste disposal

systems

Construction of more high-rise condominiums & apartments


Better health facilities and

services

The BIG Questions!!!


GROSS REGIONAL DOMESTIC PRODUCT (GRDP)

A Sum-Total of Production serving as a mere indicator, or

A Key Factor in Infusing Social and Economic Equity?


Positive and Negative Correlation: Indicative of Factors for Change?


* as of Dec/2006 (in hectares) ** as of Aug/2010 *** in billions

0.805964 = pop <> grdp - 0.615142 = land <> grdp - 0.406453 = land <> pop

0.704135 = fund <> grdp 0.949820 = fund <> pop - 0.310025 = fund <> land

CO

RR

ELATIO

N C

OEEFIC

IENT

NCR 63,600 11,855,975 32.76 52.35

CAR 1,829,368 1,616,867 2.28 16.92

R1 1,284,019 4,748,372 3.03 33.29

R2 2,687,517 3,229,163 2.04 27.39

R3 2,147,036 10,137,737 8.75 53.07

R4A 1,622,861 12,609,803 13.84 53.03

R4B 2,745,601 2,744,671 2.45 23.08

R5 1,763,249 5,420,411 2.62 35.46

R6 2,022,311 7,102,438 6.42 47.26

R7 1,489,077 6,800,180 6.78 36.53

R8 2,143,169 4,101,322 2.34 33.19

R9 1,599,734 3,407,353 2.50 22.27

R10 1,405,599 4,297,323 4.32 30.62

R11 2,714,059 4,468,563 4.78 25.74

R12 1,437,274 4,109,571 3.13 24.30

ARMM 1,160,829 3,256,140 0.88 24.02

R13 1,884,697 2,429,224 1.30 21.21

2010

GAA***REGIONS

Total Land

Area * Population **

Ave. GRDP

1999 - 2011

GRDP 1999 – 2011* (Percent Distribution)


Source: National Statistical Coordination Board * 1999-2008 in 1985 constant prices 2009-2011 in 2000 constant prices

REGIONS 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

NCR 30.6 30.7 30.6 30.4 30.9 31.2 32 32.5 32.7 37 35.8 35.9 35.7

CAR 2.43 2.51 2.47 2.46 2.47 2.3 2.3 2.22 2.23 2 2.1 2.1 2.1

I 3.1 3.03 3.03 3.02 3.02 3 3 2.99 2.95 2.8 3.2 3.2 3.1

II 2.34 2.3 2.33 2.17 2.04 2.2 2 2 1.99 1.8 1.9 1.7 1.8

III 9.03 8.99 9.06 9.11 8.94 8.6 8.5 8.41 8.3 7.7 8.8 9 9.3

IV 15.4 15.3 15.3

IVA 13.1 13 12.7 12.4 12.3 12.1 10.8 17.1 17.6 17.4

IVB 2.73 3 2.8 2.8 2.69 2.76 2.2 1.9 1.8 1.8

V 2.82 2.76 2.84 2.85 2.88 2.8 2.8 2.77 2.79 2.6 2.1 2 2

VI 7.12 7.06 7.08 7.07 7.45 7.2 7.2 7.19 7.24 6.8 4.1 4 4

VII 6.87 7.03 7.15 7.01 7.02 7 7.1 7.07 7.18 6.8 5.7 6 6.2

VIII 2.37 2.3 2.32 2.26 2.27 2.2 2.2 2.2 2.12 2.2 2.8 2.6 2.6

IX 2.79 2.76 2.69 2.65 2.67 2.6 2.6 2.56 2.6 2.3 2.2 2.1 2

X 3.8 3.86 3.92 4.79 4.34 4.9 4.8 4.91 4.9 4.9 3.7 3.7 3.7

XI 6.19 6.35 6.26 4.54 4.52 4.6 4.6 4.53 4.5 4.5 3.9 3.8 3.8

XII 2.69 2.65 2.61 3.61 3.54 3.6 3.5 3.5 3.5 3.4 2.8 2.6 2.7

ARMM 1 0.95 0.94 0.94 0.87 0.9 0.9 0.88 0.9 0.8 0.8 0.8 0.8

XIII 1.48 1.46 1.46 1.4 1.16 1.3 1.3 1.29 1.3 1.3 1.1 1.1 1.2

Comparative GRDP shares – 1999 to 2011: NCR vs Major Island Groups

NCR is the only region without an agricultural component in its GRDP.

It takes the sum of GRDP share of the rest of Luzon to compare with NCR’s.

Not even the combined sum total shares of Mindanao and Visayas is comparable.


Regions according to % share of GDP


REGIONS

1999-2011

Average GRDP

Difference

from NCR's

NCR 32.76 0.00

IVA 13.84 18.91

III 8.75 24.01

VII 6.78 25.98

VI 6.42 26.33

XI 4.78 27.98

X 4.32 28.43

XII 3.13 29.63

I 3.03 29.72

V 2.62 30.14

IX 2.50 30.26

IVB 2.45 30.31

VIII 2.34 30.42

CAR 2.28 30.47

II 2.04 30.71

XIII 1.30 31.46

ARMM 0.88 31.87NCR – the only region without

an Agriculture sector

1999-2011 Average GRDP % share vs 2011* GRDP % share

1999-2011 Average GRDP % share

2011 GRDP % share


XII = 3.13 IVA = 13.84 NCR = 32.76

I = 3.03 III = 8.75

V = 2.62 VII = 6.78

IX = 2.50 VI = 6.42

IVB = 2.45 XI = 4.78

VIII = 2.34 X = 4.32

CAR = 2.28

II = 2.04

XIII = 1.30

ARMM = 0.88

R

E

G

I

O

N

S

Group 3: 0.01 to

3.50 GRDP Rate

Group 2: 3.51-

15.0 GRDP Rate

Group 1: > 15.0

GRDP Rate

I = 3.10 III = 9.30 NCR = 35.70

XII = 2.70 VII = 6.20 IVA = 17.40

VIII = 2.60 VI = 4.00

CAR = 2.10 XI = 3.8

V = 2.00 X = 3.70

IX = 2.00

II = 1.80

IVB = 1.80

XIII = 1.20

ARMM = 0.80

Group 3: 0.01 to

3.50 GRDP Rate

Group 2: 3.51-

15.0 GRDP Rate

Group 1: > 15.0

GRDP Rate

R

E

G

I

O

N

S

This schedule records the summary (average) of changes in the share of GRDP; updated on a yearly basis – an iterative process

This schedule indicate changes in the GRDP % share based on latest developments. In this instance, NCR is joined by Region 4A in Group 1 category; changes in some regions are likewise noted, though some may not be positive when compared to the last recorded average • 2011 was the latest GRDP statistics available to

the Author as of the time of PPT design

THE ANNUAL APPROPRIATIONS OF THE PHILIPPINES

Department Funds and

Special Purpose Funds


REGION 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012Nationwide 127.84 90.96 109.30 106.27 125.59 116.52 176.20 160.16 171.24 225.57 253.47 233.60 247.33

Central Ofc 48.33 66.76 69.13 69.05 75.71 68.24 39.80 87.06 101.07 104.68 117.71 109.48 114.89

NCR 26.39 35.12 30.23 27.43 25.18 23.21 25.20 27.51 29.42 32.12 33.04 29.66 29.83

CAR 5.93 9.17 6.78 7.49 5.69 6.20 6.21 6.34 8.61 12.88 8.96 9.50 9.80

R1 11.66 13.31 13.42 11.64 11.60 13.74 12.49 12.13 13.37 16.44 18.40 16.09 16.52

R2 6.73 9.24 8.32 7.55 7.57 7.85 7.99 8.74 9.74 12.52 12.88 11.79 12.25

R3 12.44 15.40 16.91 15.29 14.74 15.85 15.18 18.31 22.14 27.00 27.16 25.98 27.27

R4A* 17.53 22.36 22.79 19.96 19.43 16.32 12.89 15.56 19.77 23.05 24.70 26.37 22.43

R4B - - - - - 9.73 6.11 8.63 10.04 14.40 11.34 13.48 15.77

R5 10.78 13.40 12.71 11.73 11.37 12.39 11.91 13.96 15.37 18.95 18.69 17.83 18.51

R6 13.81 17.69 18.06 16.18 15.05 17.41 16.33 19.43 19.53 24.57 24.53 23.51 24.36

R7 9.51 12.24 11.39 10.20 10.20 11.54 11.24 12.62 14.80 17.92 17.72 17.03 17.75

R8 10.36 12.22 11.46 9.93 9.48 11.79 10.13 11.02 13.35 16.21 16.98 15.23 15.75

R9 7.25 10.49 9.60 8.25 7.86 8.60 7.46 8.77 10.38 13.55 11.18 11.30 11.62

R10 6.60 8.66 7.98 6.95 6.83 8.78 8.31 10.60 12.50 17.10 15.96 15.64 16.57

R11 10.10 13.11 12.72 9.50 9.25 8.55 7.87 8.71 12.04 13.58 12.89 11.35 11.45

R12 6.86 8.35 8.68 8.22 7.45 8.40 7.93 9.30 10.23 11.93 12.32 11.73 12.18

ARMM 6.17 9.26 5.20 6.29 6.27 7.29 8.78 9.23 8.83 10.15 10.08 10.27 10.66

R13 5.02 7.19 7.42 5.52 5.58 9.12 7.66 9.49 8.78 11.73 11.21 11.51 12.09

Total 343.30 374.92 382.11 357.46 374.86 381.54 399.66 457.57 511.23 624.36 659.22 621.33 647.02

FUND ALLOCATION OF DEPARTMENTS 2000 to 2010 (2011-2012**)


Source: Department of Budget and Management • The split in budgetary system of Region 4 became effective 2005, thus 4A and 4B ** Projected figures based on trend were used for 2011 and 2012 in the absence of actual data with the same disaggregation. For illustration purposes only

(₱ in 000,000,000s) 2000 – 2010 Trend line


Central Ofc 16.61 161.87 212.54 270.24 316.26 345.02 411.90 414.03 398.71 414.25 386.09 511.52 580.59

NCR 0.68 12.07 11.75 13.18 10.77 13.07 14.00 15.69 17.51 20.26 19.31 21.74 24.50

CAR 0.13 8.65 4.58 4.55 8.34 4.74 5.17 5.76 6.42 8.18 7.96 8.16 8.92

R1 0.05 5.05 7.91 8.40 4.54 8.94 9.78 10.91 12.24 14.43 14.89 16.20 18.65

R2 0.56 7.42 7.38 7.60 7.56 8.03 8.84 9.92 11.50 13.48 14.52 14.93 16.97

R3 0.18 13.69 14.03 13.09 13.71 14.60 15.99 17.84 20.20 24.35 25.91 26.78 30.45

R4A* 0.14 19.69 20.63 21.51 20.88 15.21 16.81 18.89 21.23 26.70 28.33 30.95 33.74

R4B - - - - - 6.90 4.33 8.59 9.59 11.01 11.74 13.21 14.51

R5 0.14 8.81 8.95 9.48 9.45 10.04 10.99 12.25 13.75 16.07 16.77 17.90 20.33

R6 0.23 13.15 12.34 12.74 12.73 13.52 18.04 16.50 18.53 20.97 22.73 24.24 27.43

R7 0.08 11.63 11.52 10.58 10.54 11.20 12.24 13.66 15.35 18.08 18.81 19.73 22.25

R8 0.24 9.93 10.13 9.19 9.19 9.75 10.66 11.92 13.32 16.41 16.21 17.30 19.52

R9 0.39 7.05 7.07 7.06 6.19 6.56 7.50 8.01 9.00 10.38 11.09 11.44 12.82

R10 0.16 6.89 6.36 8.10 8.10 8.61 9.41 10.80 11.81 14.38 14.66 15.87 18.16

R11 2.53 10.06 9.78 7.18 7.10 7.56 8.27 9.24 10.38 12.19 12.85 12.50 13.72

R12 0.07 5.72 5.58 6.47 6.37 6.77 7.43 8.36 9.92 12.27 11.98 13.01 14.89

ARMM - 5.64 5.89 5.82 6.74 7.21 7.72 8.85 10.11 13.38 13.93 14.32 16.50

R13 0.09 8.33 6.67 5.49 5.49 5.83 6.37 7.11 8.13 10.43 10.01 10.35 11.56

Sub-Total 307.70 350.08 398.68 446.74 489.91 529.84 651.91 668.77 715.77 790.64 881.88 907.38 1,018.3

Debt Service Fund109.31 144.91 204.27 223.24 271.53 301.69 340.00 328.73 295.75 302.65 340.81 388.03 430.62

Net 198.38 205.17 194.41 223.51 218.38 228.15 311.91 340.03 420.02 487.99 541.07 519.35 587.68

SPECIAL PURPOSE FUNDS - 2000 to 2010 (2011-2012**)


(₱ in 000,000,000s) 2000 – 2010 Trend line



Central Ofc 64.94 228.63 281.67 339.29 391.96 413.26 451.70 501.09 499.79 518.93 503.81 621.00 695.48

NCR 27.07 47.19 41.98 40.61 35.95 36.29 39.20 43.21 46.93 52.38 52.35 51.40 54.33

CAR 6.06 17.82 11.36 12.05 14.03 10.93 11.38 12.10 15.03 21.06 16.92 17.65 18.73

R1 11.71 18.36 21.33 20.04 16.14 22.68 22.27 23.04 25.61 30.88 33.29 32.28 35.17

R2 7.28 16.65 15.71 15.15 15.13 15.88 16.83 18.66 21.24 26.00 27.39 26.72 29.22

R3 12.62 29.09 30.94 28.38 28.46 30.46 31.17 36.15 42.34 51.36 53.07 52.76 57.71

R4A* 17.67 42.05 43.42 41.48 40.31 31.54 29.69 34.45 41.00 49.75 53.03 57.33 56.17

R4B - - - - - 16.64 10.43 17.22 19.63 25.41 23.08 26.69 30.28

R5 10.93 22.20 21.65 21.21 20.82 22.43 22.90 26.21 29.12 35.02 35.46 35.73 38.84

R6 14.03 30.84 30.40 28.92 27.78 30.93 34.37 35.94 38.07 45.55 47.26 47.75 51.78

R7 9.59 23.87 22.91 20.78 20.74 22.74 23.49 26.28 30.15 36.00 36.53 36.75 40.00

R8 10.60 22.15 21.58 19.12 18.66 21.53 20.79 22.94 26.67 32.62 33.19 32.53 35.27

R9 7.64 17.55 16.67 15.31 14.05 15.16 14.96 16.78 19.39 23.93 22.27 22.74 24.44

R10 6.76 15.55 14.34 15.06 14.93 17.39 17.73 21.39 24.31 31.48 30.62 31.51 34.73

R11 12.63 23.17 22.50 16.68 16.35 16.11 16.14 17.96 22.42 25.77 25.74 23.85 25.17

R12 6.93 14.06 14.26 14.70 13.82 15.17 15.36 17.66 20.15 24.20 24.30 24.74 27.07

ARMM 6.17 14.90 11.08 12.11 13.01 14.50 16.50 18.08 18.95 23.53 24.02 24.59 27.16

R13 5.11 15.52 14.08 11.01 11.06 14.95 14.03 16.60 16.91 22.15 21.21 21.86 23.64

Total 651 725 781 804 865 911 1,052 1,126 1,227 1,415 1,541 1,529 1,665

DEPARTMENT and SPECIAL PURPOSE FUNDS, 2000 to 2010 (2011-2012**)


(₱ in 000,000,000s) 2000 – 2010 Trend line


Fund Allocation Shares of Region [2000-2010 Ave. Dep’t + Spcl Purpose Funds]


Comparative of 2000-2010 Average of Department + Special Purpose Funds

NCR without Nationwide and Central Office Funds

Nationwide and Central Office Funds co-located in NCR


Geographically, all central offices of all branches of the National Government are located in NCR. Consequently, NCR as an economy, derive benefits from this arrangement, directly and indirectly

With NCR just 0.21% of the total land area of the country, it enjoys a sizable amount of fund share from the general appropriations matched only by Regions 3 and 4A, regions that are many times larger in size

2000-2010 Average of Department & Special Purpose Funds per Region


Department Funds Special Purpose Funds

DEPT SPCL NCR 28.62 13.48

CAR 7.66 5.86

R1 13.47 8.83

R2 9.01 8.80

R3 18.22 15.78

R4A 18.72 21.19

R4B 10.04 8.69

R5 13.75 10.61

R6 18.42 14.68

R7 12.67 12.15

R8 12.08 10.63

R9 9.40 7.30

R10 10.02 9.03

R11 10.76 8.83

R12 9.06 7.36

ARMM 7.96 7.75

R13 8.07 6.72

DEFINING THE URGENCY OF DEVELOPMENT AND ASSISTANCE

Which regions need to be prioritized?

25 Hilario P. Martinez

1999-2011* Average GRDP Share


32.76

2.28

3.03

2.04

8.75 13.84

2.45

2.62

6.42

6.78

2.34

2.50 4.32 4.78

3.13 0.88 1.30 NCR

CAR

I

II

III

IVA

IVB

V

VI

VII

VIII

IX

X

XI

XII

ARMM

XIII

• The range of GRDP data needs to be updated annually as basis for averaging. For this presentation, only data for 1999-2011 is available.

Ranking and Classification of Regions according to % share of GRDP


REGIONS

1999-2011

Average GRDP

Difference

from NCR's

NCR 32.76 0.00

IVA 13.84 18.91

III 8.75 24.01

VII 6.78 25.98

VI 6.42 26.33

XI 4.78 27.98

X 4.32 28.43

XII 3.13 29.63

I 3.03 29.72

V 2.62 30.14

IX 2.50 30.26

IVB 2.45 30.31

VIII 2.34 30.42

CAR 2.28 30.47

II 2.04 30.71

XIII 1.30 31.46

ARMM 0.88 31.87

REFERENCE POINT

G

R

O

U

P

3

GR

OU

P 2

GROUP 1

15.0 3.51

3.50 0.00

Is it reasonable for NCR, which is only 0.21% of total land area, share 1/3 of GDP?

Classification of Regions according to Average GRDP Rate *

Hilario P. Martinez 28 * Based on 1999-2011 GRDP Average

This schedule is adjusted every year to illustrate the development status of regions

Degrees of Urgency and Development Timeframes Group 3

The least developed group, and thus, requires the most urgency in accelerating development

Group 2

This group which has gathered momentum, and thus the 2nd Priority

Group 1

The preferred stage of development for all regions, but the least priority for fund augmentation

Hilario P. Martinez 29 * Based on average GDRP 1999-2011

GROUP 3

GR

OU

P 2

GROUP 1

Determining the GRDP-based Increment

The guiding principle is to afford higher priority to regions which have the greater disparity from the benchmark.

Corollarily, these regions should have more funding consideration than those regions which have garnered better status.

These will be in terms of time frame, consequently the increment factor that will determine the amount of funds needed in an accelerated development phase

For the benchmark: it is Time Frame/Average GRDP; for the rest of the regions, it is Average GRDP/Time Frame


REGIONS

1999-2011

Ave. GRDP

Difference

from NCR

Development

Time Frame

GRDP-based

Increment

NCR 32.76 0.00 20 0.61

IVA 13.84 18.91 15 1.26

III 8.75 24.01 15 1.60

VII 6.78 25.98 15 1.73

VI 6.42 26.33 15 1.76

XI 4.78 27.98 15 1.87

X 4.32 28.43 15 1.90

XII 3.13 29.63 10 2.96

I 3.03 29.72 10 2.97

V 2.62 30.14 10 3.01

IX 2.50 30.26 10 3.03

IVB 2.45 30.31 10 3.03

VIII 2.34 30.42 10 3.04

CAR 2.28 30.47 10 3.05

II 2.04 30.71 10 3.07

XIII 1.30 31.46 10 3.15

ARMM 0.88 31.87 10 3.19

“Those who have less in life, should have more in law”


Region-biased GAA


80% 20%

Premises and Assumptions assumed

Gross Regional Domestic Product (GRDP) History: 1999 to 2011

Annual General Appropriations: 2000 to 2010

Projected GAA 2012 to illustrate the 20:80 Fund Allocation Scheme


Reference Data for the GRDP-Based 20:80 Ratio

1999 – 2011 GRDP


NCR 32.76 1

CAR 2.28 14

I 3.03 9

II 2.04 15

III 8.75 3

IVA 13.84 2

IVB 2.45 12

V 2.62 10

VI 6.42 5

VII 6.78 4

VIII 2.34 13

IX 2.50 11

X 4.32 7

XI 4.78 6

XII 3.13 8

ARMM 0.88 17

XIII 1.30 16

1999-2011

Ave. GRDPREGIONS Rank

PROJECTED

APPLIED TO 2012

FUND

Note: ₱ in 000,000,000s

General Appropriation

Fund Structure of the 2012* General Appropriation


* Projected from 2000 to 2010 GAA (using TREND)

Level 1: Establishing 2012 Fund Allocation % Sharing

% Distribution for Nationwide, Central Office and Regions

% Distribution – Total of Central Offices and Regions only


Consider CENTRAL OFFICE & REGIONS

only

Recomputed fund share percentages (thru ratio and proportion), inclusive of C.O. and Regions only

REGION ALLOCATION % Share

Nationwide 360.13 21.63%

Central Office 695.48 41.76%

NCR 54.33 3.26%

CAR 18.73 1.12%

R1 35.17 2.11%

R2 29.22 1.75%

R3 57.71 3.47%

R4A 56.17 3.37%

R4B 30.28 1.82%

R5 38.84 2.33%

R6 51.78 3.11%

R7 40.00 2.40%

R8 35.27 2.12%

R9 24.44 1.47%

R10 34.73 2.09%

R11 25.17 1.51%

R12 27.07 1.63%

ARMM 27.16 1.63%

R13 23.64 1.42%

Total 1,665.3 100.00%


C.O. 695.48 53.29%

NCR 54.33 4.16%

CAR 18.73 1.43%

R1 35.17 2.69%

R2 29.22 2.24%

R3 57.71 4.42%

R4A 56.17 4.30%

R4B 30.28 2.32%

R5 38.84 2.98%

R6 51.78 3.97%

R7 40.00 3.06%

R8 35.27 2.70%

R9 24.44 1.87%

R10 34.73 2.66%

R11 25.17 1.93%

R12 27.07 2.07%

ARMM 27.16 2.08%

R13 23.64 1.81%

Total 1,305.19 100%

Level 2: % Share computation from “CO & Regions” to “Regions” only

Per projected 2012 Fund: Central Office and all Regions

Computing for % share of Regions only


Recomputed fund share percentages (thru ratio and proportion), inclusive of Regions only

Excluding Central Office (C.O.)


C.O. 695.48 53.29%

NCR 54.33 4.16%

CAR 18.73 1.43%

R1 35.17 2.69%

R2 29.22 2.24%

R3 57.71 4.42%

R4A 56.17 4.30%

R4B 30.28 2.32%

R5 38.84 2.98%

R6 51.78 3.97%

R7 40.00 3.06%

R8 35.27 2.70%

R9 24.44 1.87%

R10 34.73 2.66%

R11 25.17 1.93%

R12 27.07 2.07%

ARMM 27.16 2.08%

R13 23.64 1.81%

Total 1,305.19 100%


NCR 54.33 8.91

CAR 18.73 3.07

R1 35.17 5.77

R2 29.22 4.79

R3 57.71 9.47

R4A 56.17 9.21

R4B 30.28 4.97

R5 38.84 6.37

R6 51.78 8.49

R7 40.00 6.56

R8 35.27 5.79

R9 24.44 4.01

R10 34.73 5.70

R11 25.17 4.13

R12 27.07 4.44

ARMM 27.16 4.45

R13 23.64 3.88

Total 609.71 100%

Level 3: Applying GRDP-based Increment for the Total Adjusted Share The % share of Regions

is the basis for the GRDP-based increment

The Increment is added to the % share to arrive at the Total % Share for each region

Ratio and Proportion [a/A = b/B] is applied to “Total % Share” for a normalized % share with a 100% total

The “Pro Rata % Share” determines the corresponding allocation for each region


Ratio & Proportion

₱ Allocation % Share

NCR 54.33 8.91 0.61 9.52 6.74 41.11 -24.34%

CAR 18.73 3.07 1.26 4.33 3.07 18.70 -0.12%

R1 35.17 5.77 1.60 7.37 5.22 31.82 -9.54%

R2 29.22 4.79 1.73 6.52 4.62 28.17 -3.60%

R3 57.71 9.47 1.76 11.22 7.95 48.45 -16.06%

R4A 56.17 9.21 1.87 11.08 7.84 47.83 -14.85%

R4B 30.28 4.97 1.90 6.86 4.86 29.62 -2.16%

R5 38.84 6.37 2.96 9.33 6.61 40.29 3.75%

R6 51.78 8.49 2.97 11.47 8.12 49.50 -4.41%

R7 40.00 6.56 3.01 9.57 6.78 41.34 3.34%

R8 35.27 5.79 3.03 8.81 6.24 38.04 7.84%

R9 24.44 4.01 3.03 7.04 4.98 30.39 24.36%

R10 34.73 5.70 3.04 8.74 6.19 37.72 8.62%

R11 25.17 4.13 3.05 7.18 5.08 30.98 23.08%

R12 27.07 4.44 3.07 7.51 5.32 32.43 19.81%

ARMM 27.16 4.45 3.19 7.07 5.00 30.50 38.80%

R13 23.64 3.88 3.15 7.60 5.38 32.82 12.30%

Total 609.71 100.00 41.22 141.22 100.00 609.71 0.00%

% ChangeREGION

Projected 2012 GRDP-based

Increment

Total %

Share

Pro Rata

% Share

Adjusted ₱

Allocation


Include C.O. (20%) to Regions

for 80%

GR

DP

-bas

ed

Incr

em

en

t A

pp

lied

to

Re

gio

ns

20

12

Fu

nd

Sh

are

20

12

Fun

d Sh

are R

eco

mp

uted

for

C.O

. and

Re

gion

s usin

g 20

:80

Ratio

REGION % Share ₱ Fund

NCR 6.74 41.11

CAR 3.07 18.70

R1 5.22 31.82

R2 4.62 28.17

R3 7.95 48.45

R4A 7.84 47.83

R4B 4.86 29.62

R5 6.61 40.29

R6 8.12 49.50

R7 6.78 41.34

R8 6.24 38.04

R9 4.98 30.39

R10 6.19 37.72

R11 5.08 30.98

R12 5.32 32.43

ARMM 5.00 32.82

R13 5.38 30.50

Total 100.00 609.71

C.O. 20.00% 261.04

NCR 5.39% 70.40

CAR 2.45% 32.03

R1 4.17% 54.49

R2 3.70% 48.24

R3 6.36% 82.97

R4A 6.28% 81.91

R4B 3.89% 50.73

R5 5.29% 69.00

R6 6.49% 84.77

R7 5.42% 70.79

R8 4.99% 65.15

R9 3.99% 52.04

R10 4.95% 64.60

R11 4.06% 53.05

R12 4.25% 55.53

ARMM 4.00% 52.24

R13 4.31% 56.20

Total 100.00% 1,305.19

20:80 % Sharing

of 2012 Fund

₱ Fund

ShareREGION


Re

com

pu

te Fu

nd

Sh

are w

ith

“Natio

nw

ide” in

clud

ed

Final %

Fun

d Sh

are fo

r 20

12

– GR

DP

-co

nsisten

t & 2

0:8

0 C

om

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01

2 F

un

d S

har

e R

eco

mp

ute

d f

or

C.O

. an

d R

egi

on

s u

sin

g 2

0:8

0 R

atio

C.O. 20.00% 261.04

NCR 5.39% 70.40

CAR 2.45% 32.03

R1 4.17% 54.49

R2 3.70% 48.24

R3 6.36% 82.97

R4A 6.28% 81.91

R4B 3.89% 50.73

R5 5.29% 69.00

R6 6.49% 84.77

R7 5.42% 70.79

R8 4.99% 65.15

R9 3.99% 52.04

R10 4.95% 64.60

R11 4.06% 53.05

R12 4.25% 55.53

ARMM 4.00% 52.24

R13 4.31% 56.20

Total 100.00% 1,305.19

20:80 % Sharing

of 2012 Fund

₱ Fund

ShareREGION

REGION 2012 Fund Share % Share

Nationwide 360.13 21.63%

C.O. 261.04 15.67%

NCR 70.40 4.23%

CAR 32.03 1.92%

R1 54.49 3.27%

R2 48.24 2.90%

R3 82.97 4.98%

R4A 81.91 4.92%

R4B 50.73 3.05%

R5 69.00 4.14%

R6 84.77 5.09%

R7 70.79 4.25%

R8 65.15 3.91%

R9 52.04 3.13%

R10 64.60 3.88%

R11 53.05 3.19%

R12 55.53 3.33%

ARMM 52.24 3.14%

R13 56.20 3.37%

Total 1,665.32 100.00%

This review covers C.O. and Regions only

C.O. allocation declined by -62.47%

The biggest increases were from the Mindanao group ranging from 86.02% to 137.70%

The smallest increases were from Luzon, from 43.76% to 77.67%, while the Visayas group were from 63.71% to 84.69%

NCR had the smallest increase of 29.58%


REGION ₱ per 2012 ₱ per 20:80 ₱ Change % Change

C.O. 695.48 261.04 -434.44 -62.47%

NCR 54.33 70.40 16.07 29.58%

CAR 18.73 32.03 13.30 71.05%

R1 35.17 54.49 19.31 54.91%

R2 29.22 48.24 19.02 65.08%

R3 57.71 82.97 25.25 43.76%

R4A 56.17 81.91 25.74 45.82%

R4B 30.28 50.73 20.45 67.56%

R5 38.84 69.00 30.17 77.67%

R6 51.78 84.77 32.99 63.71%

R7 40.00 70.79 30.79 76.98%

R8 35.27 65.15 29.87 84.69%

R9 24.44 52.04 27.61 112.98%

R10 34.73 64.60 29.87 86.02%

R11 25.17 53.05 27.88 110.79%

R12 27.07 55.53 28.46 105.17%

ARMM 27.16 52.24 25.08 92.32%

R13 23.64 56.20 32.56 137.70%

Total 1,305.19 1,305.19 0.00 0.00%

per 2012 per 20:80

CO 695.48 261.04 86.12 174.91 -74.85%

NCR 54.33 70.40 23.23 47.17 -13.17%

CAR 18.73 32.03 10.57 21.46 14.62%

R1 35.17 54.49 17.98 36.51 3.80%

R2 29.22 48.24 15.92 32.33 10.62%

R3 57.71 82.97 27.37 55.60 -3.67%

R4A 56.17 81.91 27.02 54.88 -2.29%

R4B 30.28 50.73 16.74 33.99 12.28%

R5 38.84 69.00 22.77 46.24 19.05%

R6 51.78 84.77 27.97 56.80 9.70%

R7 40.00 70.79 23.36 47.44 18.59%

R8 35.27 65.15 21.49 43.65 23.75%

R9 24.44 52.04 17.17 34.87 42.71%

R10 34.73 64.60 21.31 43.29 24.65%

R11 25.17 53.05 17.50 35.55 41.24%

R12 27.07 55.53 18.32 37.21 37.48%

ARMM 27.16 52.24 17.24 35.00 28.87%

R13 23.64 56.20 18.54 37.66 59.27%

Total 1,305.19 1,305.19 430.62 874.57 -32.99%

₱ Allocation

REGION

₱ Share to

Debt Service

₱ Balance due

to [per 20:80]

% Change from

[per 2012]

Level 6: Incorporating the Debt Servicing Provision Apportionment for Debt

Servicing applied to C.O. and Regions

Sharing is Pro-Rata and was based on the % distribution arrived at in the 20:80 scheme for C.O. + Regions

₱430.62B was deducted from “C.O. + Regions” based on this % sharing resulting to a net of ₱874.57B

C.O. incurred -74.85% decrease due to debt servicing, having the biggest share


₱1,234.7B is the 20:80-rationalized 2012 Allocation incorporating the provision for “Nationwide”

This fund (₱ per 20:80) is already Debt Servicing-free, as processed in the preceding level

NCR has a -13.17% reduction in funds, Regions 3 has -3.67% and -2.29% for Region 4A; CO fund is reduced by -74.85%

Funds for the rest of the Regions are increased, ranging from 3.8% to 48.05%, the direct effect of the 20:80 Ratio

No change is proposed for “Nationwide” provision

Hilario P. Martinez 43 Ratio & Proportion

Region ₱ per 2012 % Share ₱ per 20:80 % Share ₱ Change % Change

Nationwide 360.13 21.63% 360.13 29.17% - 0.00%

C.O. 695.48 41.76% 174.91 14.17% (520.56) -74.85%

NCR 54.33 3.26% 47.17 3.82% (7.16) -13.17%

CAR 18.73 1.12% 21.46 1.74% 2.74 14.62%

R1 35.17 2.11% 36.51 2.96% 1.34 3.80%

R2 29.22 1.75% 32.33 2.62% 3.10 10.62%

R3 57.71 3.47% 55.60 4.50% (2.12) -3.67%

R4A 56.17 3.37% 54.88 4.45% (1.29) -2.29%

R4B 30.28 1.82% 33.99 2.75% 3.72 12.28%

R5 38.84 2.33% 46.24 3.74% 7.40 19.05%

R6 51.78 3.11% 56.80 4.60% 5.02 9.70%

R7 40.00 2.40% 47.44 3.84% 7.44 18.59%

R8 35.27 2.12% 43.65 3.54% 8.38 23.75%

R9 24.44 1.47% 34.87 2.82% 10.44 42.71%

R10 34.73 2.09% 43.29 3.51% 8.56 24.65%

R11 25.17 1.51% 35.55 2.88% 10.38 41.24%

R12 27.07 1.63% 37.21 3.01% 10.14 37.48%

ARMM 27.16 1.63% 35.00 2.84% 7.84 28.87%

R13 23.64 1.42% 37.66 3.05% 14.01 59.27%

Total 1,665.32 100.00% 1,234.70 100.00% (430.62) -25.86%

LEVEL 1 LEVEL 2 LEVEL 3 LEVEL 4 LEVEL 5 LEVEL 6 LEVEL 7

Nationwide 360.13 21.63% 21.63% 29.17% 360.13

C.O. 695.48 41.76% 53.29% 20.00% 41.76% 20.00% 14.17% 174.91

NCR 54.33 3.26% 4.16% 8.91% 6.74% 5.39% 3.26% 5.39% 3.82% 47.17

CAR 18.73 1.12% 1.43% 3.07% 3.07% 2.45% 1.12% 2.45% 1.74% 21.46

R1 35.17 2.11% 2.69% 5.77% 5.22% 4.17% 2.11% 4.17% 2.96% 36.51

R2 29.22 1.75% 2.24% 4.79% 4.62% 3.70% 1.75% 3.70% 2.62% 32.33

R3 57.71 3.47% 4.42% 9.47% 7.95% 6.36% 3.47% 6.36% 4.50% 55.60

R4A 56.17 3.37% 4.30% 9.21% 7.84% 6.28% 3.37% 6.28% 4.45% 54.88

R4B 30.28 1.82% 2.32% 4.97% 4.86% 3.89% 1.82% 3.89% 2.75% 33.99

R5 38.84 2.33% 2.98% 6.37% 6.61% 5.29% 2.33% 5.29% 3.74% 46.24

R6 51.78 3.11% 3.97% 8.49% 8.12% 6.49% 3.11% 6.49% 4.60% 56.80

R7 40.00 2.40% 3.06% 6.56% 6.78% 5.42% 2.40% 5.42% 3.84% 47.44

R8 35.27 2.12% 2.70% 5.79% 6.24% 4.99% 2.12% 4.99% 3.54% 43.65

R9 24.44 1.47% 1.87% 4.01% 4.98% 3.99% 1.47% 3.99% 2.82% 34.87

R10 34.73 2.09% 2.66% 5.70% 6.19% 4.95% 2.09% 4.95% 3.51% 43.29

R11 25.17 1.51% 1.93% 4.13% 5.08% 4.06% 1.51% 4.06% 2.88% 35.55

R12 27.07 1.63% 2.07% 4.44% 5.32% 4.25% 1.63% 4.25% 3.01% 37.21

ARMM 27.16 1.63% 2.08% 4.45% 5.00% 4.00% 1.63% 4.00% 2.84% 37.66

R13 23.64 1.42% 1.81% 3.88% 5.38% 4.31% 1.42% 4.00% 3.05% 35.00

TOTAL 1665.32 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 1234.70

Summary of Changes in % Share


2012 PROJECTED

2012 AMENDED

GRDP INCR

20:80 RATIO

- DEBT SERVC

LEVEL 1 LEVEL 2 LEVEL 3 LEVEL 4 LEVEL 5 LEVEL 6 LEVEL 7

Nationwide 21.63% 360.13 360.13 360.13 29.17%

C.O. 41.76% 695.48 695.48 261.04 261.04 174.91 174.91 14.17%

NCR 3.26% 54.33 54.33 54.33 41.11 70.40 70.40 47.17 47.17 3.82%

CAR 1.12% 18.73 18.73 18.73 18.70 32.03 32.03 21.46 21.46 1.74%

R1 2.11% 35.17 35.17 35.17 31.82 54.49 54.49 36.51 36.51 2.96%

R2 1.75% 29.22 29.22 29.22 28.17 48.24 48.24 32.33 32.33 2.62%

R3 3.47% 57.71 57.71 57.71 48.45 82.97 82.97 55.60 55.60 4.50%

R4A 3.37% 56.17 56.17 56.17 47.83 81.91 81.91 54.88 54.88 4.45%

R4B 1.82% 30.28 30.28 30.28 29.62 50.73 50.73 33.99 33.99 2.75%

R5 2.33% 38.84 38.84 38.84 40.29 69.00 69.00 46.24 46.24 3.74%

R6 3.11% 51.78 51.78 51.78 49.50 84.77 84.77 56.80 56.80 4.60%

R7 2.40% 40.00 40.00 40.00 41.34 70.79 70.79 47.44 47.44 3.84%

R8 2.12% 35.27 35.27 35.27 38.04 65.15 65.15 43.65 43.65 3.54%

R9 1.47% 24.44 24.44 24.44 30.39 52.04 52.04 34.87 34.87 2.82%

R10 2.09% 34.73 34.73 34.73 37.72 64.60 64.60 43.29 43.29 3.51%

R11 1.51% 25.17 25.17 25.17 30.98 53.05 53.05 35.55 35.55 2.88%

R12 1.63% 27.07 27.07 27.07 32.43 55.53 55.53 37.21 37.21 3.01%

ARMM 1.63% 27.16 27.16 27.16 30.50 52.24 52.24 35.00 35.00 3.05%

R13 1.42% 23.64 23.64 23.64 32.82 56.20 56.20 37.66 37.66 2.84%

TOTAL 100.00% 1665.32 1305.19 609.71 609.71 1305.19 1665.32 874.57 1234.70 100.00%

Summary of Changes in ₱ Share


2012 PROJECTED

2012 AMENDED

GRDP INCR

20:80 RATIO

- DEBT SERVC

The Affected Changes Includes the ₱ 432.62B

provision for Debt Service for a fair comparative review

Funding for Central Office is reduced to ₱261.04B, a -62.47% decrease, but no change for Nationwide

All regions registered substantial increases ranging from about 30% to 138%

Notably, the regions in the Mindanao area registered the highest increases


₱ Share % Share % Share ₱ Share

Nationwide 360.13 360.13 0.00%

C.O. 695.48 41.76% 15.67% 261.04 -62.47%

NCR 54.33 3.26% 4.23% 70.40 29.58%

CAR 18.73 1.12% 1.92% 32.03 71.05%

R1 35.17 2.11% 3.27% 54.49 54.91%

R2 29.22 1.75% 2.90% 48.24 65.08%

R3 57.71 3.47% 4.98% 82.97 43.76%

R4A 56.17 3.37% 4.92% 81.91 45.82%

R4B 30.28 1.82% 3.05% 50.73 67.56%

R5 38.84 2.33% 4.14% 69.00 77.67%

R6 51.78 3.11% 5.09% 84.77 63.71%

R7 40.00 2.40% 4.25% 70.79 76.98%

R8 35.27 2.12% 3.91% 65.15 84.69%

R9 24.44 1.47% 3.13% 52.04 112.98%

R10 34.73 2.09% 3.88% 64.60 86.02%

R11 25.17 1.51% 3.19% 53.05 110.79%

R12 27.07 1.63% 3.33% 55.53 105.17%

ARMM 27.16 1.63% 3.14% 52.24 92.32%

R13 23.64 1.42% 3.37% 56.20 137.70%

TOTAL 1,665.32 100.0% 100.0% 1,665.32 0.00%

₱ per 2012 ₱ per 20:80

21.63%

Region % Change

Comparison by Major Grouping

The rest of Luzon, the Visayas group and the Mindanao group all merited additional funds to hasten development

The Mindanao group gathered the highest increase in funds primarily due to the GDRP-based increment and the 20:80 ratio

NCR and Central Office has decreased allocation, with the latter having more than 70% decrease

The status quo in Nationwide fund is due to the flexibility required to be maintained for the National Government


Fund Changes by Region


NCR, Regions 3 and 4A, with their interfaced-economies, should harness the partnership of its private sector to sustain development

The rest of the Regions, obviously have not attained enough momentum, and thus will require additional funding and assistance to accelerate development

A Probable Future, A Doable Future …


1st Five Years 2nd Five Years 3rd Five Years 4th Five Years

LEGEND: G1 = GRDP rate < 3.51 G2 = GRDP rate < 15.01 G3 = GRDP rate > 15.0

G1 G2 G3 G1 G2 G3 G1 G2 G3 G1 G2 G3 % % % %

… From a majority membership in G1, transitioning to be a member of G2, and ultimately as members of G3!!!

Complimentary Action Points1/

Require all RDCs* to develop, implement and coordinate a long-term development plan that is updated on a yearly basis

Mandate all regional subsidiaries of national agencies to make their programs and projects directly responsive to local needs, supportive, and complimentary to RDC-specific and -approved PPAs**

Limit the role of central offices in partaking line authority/responsibility for PPAs that are primarily region-based and region-specific; primarily in strategic coordination and integration


* RDCs – Regional Development Councils ** PPAs – Programs/Projects/Activities

Complimentary Action Points2/

Enable and strengthen the personality of the RDCs to undertake more line authority and responsibility for the development and implementation of region-pertinent PPAs

Redefine and strengthen the partnership of regional line agencies with Provincial Governments for provincial PPAs, particularly in sharing of resources, responsibility and accountability

Enable the direct release of regional funds to the corresponding regional subsidiaries, subject to approved cashflow and in coordination with their respective RDCs


Grdp based 20-80 ratio in fund allocation

Government & Nonprofit

Transcript of Grdp based 20-80 ratio in fund allocation