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udget allocations – from around PhP800 million to PhP1.30 billion, for the period 1993 to 1998. Region 4 received the highest total amount for the period. 4.6.24 Following the DA’s contention that budget for nationwide program implementation went to the field offices, DACO’s overall share of total budgets (excluding the amount set aside for national programs) was equivalent to more than one third or 36% of total. Data on the actual breakdown of expenditures to each region contained a lot of cost attributions with the accounting reports not attuned to a more effective AFMA program monitoring. Table 4.6.5. Regional Allocation of DA and GATT-Related Measures Expenditures Budget, 1993 – 1998 (In Million Pesos) Department of Agriculture GATT-Related Adj. Measures Particulars Total 1993- Growth Rate (%) % Share Total 1993- Growth Rate (%) % Share 1998 1998 Total 59,706.39 36.39 100 34,732.32 - 100.00 Nationwide 28,443.16 179.29 47.64 23,428.52 - 67.45 Central Office 25,339.57 262.49 42.44 8,787.56 - 25.30 NCR - - - - - - CAR 388.591 54.27 0.65 19.03 - 0.05 Region1 93.72 4.95 0.32 36.92 - 0.11 Region 2 403.79 20.78 0.68 11.43 - 0.03 Region 3 372.46 14.87 0.62 289.62 - 0.83 Region 4 1,077.66 28.12 1.81 250.65 - 0.72 Region 5 354.85 11.42 0.59 62.24 - 0.18 Region 6 707.09 194.44 1.18 23.96 - 0.07 Region 7 456.05 17.24 0.76 254.38 - 0.73 Region 8 573.19 115.04 0.96 255.98 - 0.74 Region 9 354.93 15.29 0.59 444.25 - 1.28 Region 10 342.04 25.51 0.57 186.39 - 0.54 Region 11 376.52 3.13 0.63 61.67 - 0.18 Region 12 302.08 16.23 0.51 12.68 - 0.04 CARAGA 20.52 814.59 0.03 - - - ARMM - - - 607.03 - 1.75 Source of Basic Data: DBM 4.6 - 10
AFMA Years: 1999 - 2005 4.6.25 It was noted that inflows of financial resources to the agriculture sector did not increase as expected with the passage of AFMA. Actual Budget vs AFMA Prescribed Budget 1999 – 2005 4.6.26 Total actual budget fell below what were prescribed by the law both in terms of new appropriations and obligations. As shown in Table 4.6.6 new appropriations totaled PhP120.089 billion from 1999 to 2005. This is PhP61 billion (34%) less than the P181.438 billion set by the law 4 . The biggest budget shortfalls were experienced in 2004 and 2005 when total new appropriations amounted to only PhP12.25 billion and PhP13.18 billion, respectively. These were equivalent to a measly 43% and 45% of the requirements for 2004 and 2005, respectively, despite the law’s intent and unequivocal provisions. 4.6.27 Total obligations of PhP116.37 billion, (as reported by the DBM based on expenditures attribution to the AFMA implementation), was incurred over 1999 to 2005. Except for the year 2000, when actual obligations exceeded by a measly 2% of the AFMA recommended amount as computed (by the Consultant), annual obligations always fell way below the prescribed budget for each corresponding year. Shortfalls were always around 50% during the last 3 years at 50%, 53% and 50% in 2003, 2004 and 2005, respectively. Table 4.6.7. Fund Utilization Efficiency, 1999 - 2005 4.6.28 Fund utilization efficiency as evidenced by the amount of obligations incurred vis-à-vis the available new appropriations was registered at 96.90% for the period 1999 to 2005 Table 4.6.8. This showed an improvement of about 8% over the six-year disbursement efficiency of 88.67% over the period 1993 to 1998. Nevertheless, actual expenditures still fell short by a total of PhP3.72 billion (3%) during the AFMA years. As such, this put to question the DA’s absorptive capacity to manage and disburse the tremendous increase in financial resources. For the years 2000, 2002 and 2003 DBM recorded unutilized appropriations at 10%, 23% and 29%, respectively. 4.6.29 As mentioned earlier, AFMA provided for a continuing appropriations and comprehensive releases of allotments. As such, a shortfall in fund utilization for one year can be offset by increases in the succeeding year/years’ spending. 4 Based on computations made by the Consultant: budgets for R&D and extension each at 1% of GVA at current prices two years before the budget year (i.e, 1999 GVA to compute for 2001 budget) minus the current allocation of PhP2 billion and PhP1.2 billion, respectively. 4.6 - 11
Page 1 and 2: 4.6. BUDGET/FINANCE Rationale and O
Page 3 and 4: implementation only fund attributio
Page 5 and 6: Table 4.6.1 Planned Annual Budget A
Page 7 and 8: Table 4.6.2. DA + GATT + AFMA Appro
Page 9: Pre-AFMA Years: 1993 - 1998 4.6.22
Page 13 and 14: Table 4.6.7. Actual Obligations vs.
Page 15 and 16: Table 4.6.9. DA and AFMA Expenditur
Page 17 and 18: Rice program and the remittance of
Page 19 and 20: Commodity/ AFMA Component Postharve
Page 21 and 22: Focus Area by AFMA Component By Com
Page 23 and 24: DA to Institutionalize Agency-wide

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