Author Topic: Timeframe for RA 10349: The new AFP Mod Law  (Read 3201 times)

Adroth

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Timeframe for RA 10349: The new AFP Mod Law
« on: April 18, 2013, 11:52:59 AM »
Section 4 of the law states:

Quote
SEC. 4. Section 8 of the same Act is hereby amended to read as follows:

“SEC. 8. Appropriations for the Revised AFP Modernization Program. – The annual appropriations for the Revised AFP Modernization Program shall include the amounts necessary to support the funding requirements for all modernization projects submitted to Congress under the preceding section.

“The funds to be appropriated by Congress under this Act shall be treated as a distinct and separate budget item from the regular appropriation for the Department of National Defense (DND) and the AFP and shall be administered by the Secretary of National Defense.

“The Revised AFP Modernization Program shall be based on an amount of at least Seventy-five billion pesos (P75,000,000,000.00) for the first five (5) years.”

That should translate to P15B per year (as a poster on the forum's FB honey for the defense budget pointed out).

The 2013 budget, however, only allocated the now-usual P5B for modernization.

It'll be interesting to see if:

a) The time frame for the new modernization law actually starts in 2014 and ends in 2019

b) The time frame starts this year, with Congress leaving he executive to fill in the gaps for the first year

c) The time frame starts this year, but funding will catch up in subsequent years, resulting in an allocation of P18.75B for the years 2014 to 2018
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40niner_com

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Re: Timeframe for RA 10349: The new AFP Mod Law
« Reply #1 on: April 18, 2013, 09:05:52 PM »
Sir A, the P10B shortfall have already been covered by an unprogrammed fund item on 2013 budget.

There is a 10.6 billion (under Unprogrammed Fund --> "AFP Modernization Program") on top of the 5 billion item (under Department of National Defense --> "AFP Modernization Program") in the 2013 Proposed Budget.

I downloaded the raw data sheet (excel) named "2013-NEP.xls" from the DBM site and used pivot tables to filter only the DND line items:
  • Department of National Defense
  • Miscellaneous Personnel Benefits Fund (MPBF)
  • Pension and Gratuity Fund (PGF)
  • Unprogrammed Fund(UF) ***Dependent on the approval of the revised AFP Modernization bill

So the total proposed budget for 2013 is DND+MPBF (DND line items only)+PGF (Military line item only)+UF (AFPMP item only)
 = Php 132,043,911

Total AFP (Capital Expense) total = 5B + 10.6B  = 15.6B Php

Link to the data file: http://budgetngbayan.com/wp-content/uploads/2013-NEP.xlsx


^ Nice find, @tigerwud!

Interesting...  (presumptive) allocation had been in the DBM-submitted budget all along, but under 'L. Unprogrammed Fund -- New Appropriations, by Purpose'.

Page 2 : http://www.dbm.gov.ph/wp-content/uploads/NEP2013/L.pdf
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Adroth

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Re: Timeframe for RA 10349: The new AFP Mod Law
« Reply #2 on: April 20, 2013, 06:49:37 AM »
Nice one 40  :beer:

So the clock does indeed start this year
« Last Edit: April 20, 2013, 06:58:37 AM by Adroth »
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40niner_com

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Re: Timeframe for RA 10349: The new AFP Mod Law
« Reply #3 on: August 01, 2013, 05:50:08 AM »
Sir A... When I first read this PIA July 19 pre-SONA news item, I simply shrug it off as a typo or prematurely researched report.
Quote
...
Following closely is the Department of National Defense with a proposed P123.1-billion for its 2014 spending program, of which P5 billion has been allocated for the modernization of the country’s armed forces.
...

However, on DBM's website, I was disappointed with what I found on the current 2014 budget.  They still allocated P5B line item for next year, despite the P75B for the next five years (per RA10349).   Being on its second year (for 2014), we are thinking for a straight P15B per year, while upstairs (executive dept) is doing it differently, probably thinking that most obligations won't still be incurred next year -or- that the AFPModTF still has so much balance/awash with cash (per unobligated / unawarded funds).   Or MAYBE the line item for the additional funding is listed somewhere in the 2014 budget not directly on DND's budget like what happened this year.  However, RA10349 is already in effect.

DND's 2014 budget Pg.39
Quote
4. Armed Forces of the Philippine Modernization Program.  The amount of Five Billion Pesos (P5,000,000,000) appropriated herein for the AFP Modernization Program shall be administered by the Secretary of National Defense and shall be used exclusively to support the funding requirements for the modernization project of the said Program.  The AFP Modernization Program shall be endoresed to the President of the Philippines by the Secretaries of National Defense and Budget and Management for submission to Congress in accordance with Section 3 of R.A. No.10349: PROVIDED, that the allotment for the purpose shall only be released upon submission by the DND to DBM of the recommendation by the appropriate bids and awards committee for the award of contracts for the implementation of modernization projects in accordance with the provisions of R.A. No.9184.

The DND shall submit, either in printed form or by way of electronic document, to the DBM, copy furnished the House Committee on Appropriations and the Senate Committee on Finance, quarterly Program Accountability Report.  The Secretary of National Defense and the Agency's web administrator or his/her equivalent shall be responsible for ensuring that said quarterly reports are likewise posted on the official website of the DND.


Accordingly, this year (FY 2013), they will be allocating P15B. 
2013 Budget Message of President Aquino
Quote
...
We provided our Department of National Defense (DND) with a P121.6-billion budget in 2013—a budget that is 12.5 percent higher than in 2012.

Of this, P5.0 billion will support the AFP Modernization Program, to be released with a standby fund of P10.0 billion once the AFP Modernization Law is passed. We will fortify the ranks of the AFP by providing them with the best equipment, seacraft, and aircraft that will enable them to secure the safety of our people and the sovereignty of our nation.
...

So far, as of April 30, 2013 -- more than P6B had been released to the Fund.
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Adroth

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Re: Timeframe for RA 10349: The new AFP Mod Law
« Reply #4 on: August 01, 2013, 09:35:01 PM »
When I saw that as well, I had assumed that they structured the 2014 budget the way they did the 2013 budget, with the bulk of the funds lodged under another heading.  Remember how the missing funds were contingent upon other developments, such as the approval of the modernization law?

Let's see how this all shapes up . . . hopefully what we both fear doesn't happen.
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Herbie

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Re: Timeframe for RA 10349: The new AFP Mod Law
« Reply #5 on: August 02, 2013, 12:47:55 AM »
The additional amount for the AFP Modernization besides the explicit PhP5 billion, is again under the Unprogrammed Funds BUT in the detailed version of it: http://www.dbm.gov.ph/wp-content/uploads/Details/DETAILS2014/UF.pdf  not the XLVII.pdf one.

It is in page 2, AFP Modernization Program: 10,894,000,000.   :beer:   

I still do not understand why they still separated that 10 billion in the budget details even though the modernization law was passed.
« Last Edit: August 02, 2013, 02:59:57 AM by Herbie »

Maverick2k

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Re: Timeframe for RA 10349: The new AFP Mod Law
« Reply #6 on: August 02, 2013, 01:44:20 AM »

So far, as of April 30, 2013 -- more than P6B had been released to the Fund.

The amount released was from the AFP Modernization Act Trust Fund and not the 5B allocation for 2013.  AFP- DND is still waiting for its release.
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40niner_com

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Re: Timeframe for RA 10349: The new AFP Mod Law
« Reply #7 on: August 02, 2013, 04:57:19 AM »
^ Thanks, Sir Mav2K for the clarification and correction. 


The additional amount for the AFP Modernization besides the explicit PhP5 billion, is again under the Unprogrammed Funds BUT in the detailed version of it: http://www.dbm.gov.ph/wp-content/uploads/Details/DETAILS2014/UF.pdf  not the XLVII.pdf one.

It is in page 2, AFP Modernization Program: 10,894,000,000.   :beer:   
...

Also -- Thanks, Herbie, for pointing the item out.

« Last Edit: August 02, 2013, 05:02:20 AM by 40niner_com »
Obsolete weapons do not deter. You do not base a defence policy on someone else's good intentions.
- Apr 7, 1989 [Baroness Margaret Thatcher, UK PM (1979-90)]