Tag Archives: budget

Philippine defense spending: As of 2013

This is an update of last year’s article on defense spending (see here). The 2013 graph shows a disturbing P26.5M drop that may give the impression that the Philippines was reducing its defense commitments. This, however was there result of a shifting of responsibility for certain funds from the Department of National Defense to other departments.


A review of service-level budgets actually show a continuation of the upward trend of the past five years.


The allocation for the AFP Modernization fund remains at P5 billion.

Congress raises DND budget by P3.6B

President Aquino signed the P1.816 Trillion 2012 national budget on December 15. Based on details revealed in the Manila Bulletin, the DND allocation was P108.1B. This represents a P1.35B increase from the Department of Budget and Management’s (DBM) 2012 National Expenditure Program which originally sought P106,750,022,000. This amount is P3.6B, or 3.4%, higher than the 2011 budget.

As of writing, the 2012 General Appropriations Act is not yet available on the DBM Website. For discussions about this budget, see the following Timawa.net discussion.

Philippine defense spending: A historical perspective

Related Timawa.net discussionhttp://www.timawa.net/forum/index.php?topic=8421.msg281544#msg281544

Based on available data on the Department of Budget and Management Website, Philippine defense spending is at an all time high. The following graph presents the DND budget from 2005 (the oldest record available at the DBM site) to 2011.

The DND allocation increased by 81% for 2011. Interestingly, this does not even reflect that additional funding that is drawn from General Fund 151 (Malampaya). The department is no longer limited to its share of the General Appropriations Act.

While the recent increase in defense spending is cause for encouragement, the Philippines has been under spending on its defense for so long, it will take several years, if not several administrations, worth of improved spending to realize true military modernization.

The following graph presents World Bank data on Philippine defense spending, as percentage of GNP from 1990 to 2010.

From: http://datafinder.worldbank.org/military-expenditure

Proposed 2012 budget for the Department of National Defense published

The Department of Budget and Management has published the National Expenditure Program for 2012 on its Website. President Aquino presented the same to Congress on the 26th of July.

The proposed budget increased the DND budget by P2,245,101,000. One notable beneficiary of the increase is the Government Arsenal which received a 35% increase in its allocation. The AFP Modernization budget, however, remained at P5 billion — the same amount allocated for the past 5 years.

The following table shows a comparison of key data points.


Total DND budget

2012 (Proposed): P106,750,022,000

2011 (Actual): P104,504,921,000 Ref
2010 (Actual): 57,670,254,000 Ref
2009 (Actual): 56,483,128,000 Ref
2008 (Actual): 50,927,127,000 Ref
2007 (Actual): 49,341,721,000 Ref
2005 (Actual): 46,036,935,000 Ref

Service 2012 (Proposed) 2011 (Actual) 2010 (Actual) 2009 (Actual) 2008 (Actual)
Philippine Army 35,393,537,000 33,588,021,000 30,512,109,000 29,854,002,000 26,094,639,000
Philippine Air Force 10,550,438,000 10,134,945,000 9,262,345,000 8,948,207,000 8,080,382,000
Philippine Navy 12,084,438,000 11,354,372,000 10,520,362,000 10,472,762,000 9,228,538,000
GHQ 37,857,103,000 34,691,887,000 5,247,456,000 5,125,801,000 5,629,684,000

Government Arsenal:

2012 (Proposed): 645,660,000

2011: 420,943,000 (Ref)
2010: 362,538,000 (Ref)
2009: 361,597,000 (Ref)
2008: 277,877,000 (Ref)

AFP Modernization:

2012 (Proposed): 5,000,000,000

2011: 5,000,000,000 (Ref)
2010: 5,000,000,000 (Ref)
2009: 5,000,000,000 (Ref)
2008: 5,000,000,000 (Ref)

The NEP presents the budget that Office of the President wants, but merely serves as a guide for congressional deliberation as they craft the General Appropriations Act.