What is DAP?

The Disbursement Acceleration Program (DAP) is a stimulus package under the Aquino
administration designed to fasttrack public spending and push economic growth.
Context
The DAP was conceptualized in September 2011 and introduced in October 2011, in the
context of the prevailing underspending in government disbursements for the first eight
months of 2011 that dampened the country's economic growth.
2. What kind of projects are funded through the DAP?

The programs and projects submitted to the DBM must meet the following conditions:
a) Fastmoving or quickdisbursing, e.g. the payment of obligations incurred from
premium subsidy for indigent families in the National Health Insurance Program;

b) Urgent or priority in terms of social and economic development objectives, e.g.
the upgrading of equipment and facilities for specialty hospitals, rehabilitation of
Light Rail Transit and Metro Rail Transit, and the Disaster Risk and Exposure
Assessment for Mitigation (DREAM) program of DOST;

c) Programs or projects performing well and could deliver more services to the
public with the additional funds e.g. Training for Work Scholarship Program of
DOLETESDA.
Some of the items funded through the DAP are expenditures which are mandated by
law, such as capital infusion for the Bangko Sentral ng Pilipinas (R.A. 7653, Section 2) out
of the augmented Budgetary Support to Government CorporationsOthers.

3. How much were the programs and projects that were endorsed by legislators?

The legislators have also endorsed programs and projects for the social and economic
benefit of their constituents, such as medical assistance and local infrastructure
projects. The proposals were funded through DAP as they are existing budgetary items
in the GAA and compliant with the conditions stated above.
Of the total DAP approved by OP for 20112012 amounting to a total of P142.23 Billion
only 9 percent was released to programs and projects identified by legislators. These
were not released directly to legislators but to implementing agencies.








C. Sourcing of Funds for DAP
1. How were funds sourced?
Funds used for programs and projects identified through DAP were sourced from
savings generated by the government, the reallocation of which is subject to the
approval of the President; as well as the Unprogrammed Fund that can be tapped when
government has windfall revenue collections, e.g., unexpected remittance of dividends
from the GOCCs and Government Financial Institutions (GFIs), sale of government
assets.
2. Where did savings come from?
Savings were sourced from:
a) the pooling of unreleased appropriations such as unreleased Personnel Services
appropriations which will lapse at the end of the year, unreleased appropriations
of slow moving projects and discontinued projects per ZeroBased Budgeting
findings; and
b) the withdrawal of unobligated allotments, also for slowmoving programs and
projects, which have earlier been released to national government agencies.

What is the legal basis of using savings for the DAP?

The President is authorized by the Constitution and by law to augment funds for
programs and projects authorized in the GAA using savings from other budget items.
Article VI Section 25 (5) of the 1987 Constitution states that ...the President, the
President of the Senate, the Speaker of the House of Representatives, the Chief Justice
of the Supreme Court, and the heads of Constitutional Commissions may, by law, be
authorized to augment any item in the general appropriations law for their respective
offices from savings in other items of their respective appropriations.
Book VI Chapter 5 Section 39 of the 1987 Administrative Code authorizes the President
to fund deficiencies through savings. It states: Except as otherwise provided in the
General Appropriations Act, any savings in the regular appropriations authorized in the
General Appropriations Act for programs and projects of any department, office or
agency, may, with the approval of the President, be used to cover a deficit in any other
item of the regular appropriations....
These are further defined in the General Provisions of the GAA. In the 2011 GAA, Section
59 reiterates the Constitutional authority of the President and heads of other branches
to augment budget items from savings in other items. Section 60 further defines savings
as follows:
Savings refer to portions or balances of any programmed appropriation in this Act free
from any obligation or encumbrance that are:
(i) still available after the completion or final discontinuance or abandonment of
the work, activity or purpose for which the appropriation is authorized;
(ii) from appropriations balances arising from unpaid compensation and related
costs pertaining to vacant positions and leaves of absence without pay; and
(iii) from appropriations balances realized from the implementation of measures
resulting in improved systems and efficiencies and thus enabled agencies to
meet and deliver the required or planned targets, programs and services
approved in this Act at a lesser cost.
Augmentation implies the existence in this Act of a program, activity or project with an
appropriation, which upon implementation, or subsequent evaluation of needed
resources, it is determined to be deficient. In no case shall a nonexistent program,
activity or project be funded by augmentation from savings or by the use of
appropriations otherwise authorized in this Act.
The 2012 GAA carried the same provisions in Sections