COMMITTEE ON

COMMITTEE ON APPROPRIATIONS
APPROPRIATIONS
HOUSE OF
HOUSE OF REPRESENTATIVES
REPRESENTATIVES -- 04
04 September
September 2020
2020

1
SCOPE OF PRESENTATION
 DND MANDATE AND MISSION
 THRUSTS FOR FY 2021
 DND PROGRAM EXPENDITURE
CLASSIFICATION (PREXC) –
PERFORMANCE INDICATORS AND
TARGETS
 FY 2021 BUDGET PROPOSAL
 SIGNIFICANT FEATURES OF THE
BUDGET PROPOSAL
2
 MANDATE
(EO No. 292 AS AMENDED BY EO No. 112 s, 1999)

TO
TO MAXIMIZE
MAXIMIZE ITS
ITS EFFECTIVENESS
EFFECTIVENESS
FOR
FOR GUARDING
GUARDING AGAINST
AGAINST EXTERNAL
EXTERNAL
AND
AND INTERNAL
INTERNAL THREATS
THREATS TO
TO
NATIONAL
NATIONAL PEACE
PEACE AND
AND SECURITY,
SECURITY,
PROMOTE
PROMOTE THE
THE WELFARE
WELFARE OF
OF
SOLDIERS
SOLDIERS AND
AND VETERANS,
VETERANS, AND
AND
PROVIDE
PROVIDE SUPPORT
SUPPORT FOR
FOR SOCIAL
SOCIAL AND
AND
ECONOMIC
ECONOMIC DEVELOPMENT
DEVELOPMENT

3
 MISSION
TO GUARD AGAINST EXTERNAL AND
INTERNAL THREATS TO NATIONAL
PEACE AND SECURITY, PROMOTE THE
WELFARE OF SOLDIERS, VETERANS,
AND THEIR DEPENDENTS IN ORDER TO
ATTAIN NATIONAL SECURITY, UPHOLD
SOVEREIGNTY AND TERRITORIAL
INTEGRITY, AND SUPPORT SOCIO-
ECONOMIC DEVELOPMENT AND
POLITICAL STABILITY
4
 THRUSTS FOR FY 2021
 Sovereignty and Territorial Integrity
of the State Secured
 Internal Stability Promoted and
Sustained
 Highest Standard of Capability and
Preparedness on Disasters Attained
 Operations in Support to Global
Peace and Security Improved and
Sustained
 Good Governance
5
Department of National Defense

PROGRAM EXPENDITURE
CLASSIFICATION (PREXC)
(DND Attached Agencies)

6
 PROGRAM 1, PHILIPPINE ARMY
Organizational Outcome FY 2021 Target
Level of mission capability of 79% of Tactical Units provided to force employers
Army Units in ground in prescribed readiness condition; 60% of Ready
operations attained Reserve Units in prescribed readiness condition

Output Indicator FY 2021 Target

LAND FORCES DEFENSE PROGRAM
Number of Tactical and Ready Reserve Units maintained
Tactical Battalions 240
Ready Reserve Battalions 86
Percentage of Operational Readiness of tactical and ready
reserve units
Tactical Battalions 83%
Ready Reserve Battalions 68%
Average percentage of effective strength of tactical battalions
that can be mobilized within 1 hour as dictated by higher 90%
authorities

7
 PROGRAM 2, PHILIPPINE AIR FORCE
Organizational Outcome FY 2021 Target
Level of mission
capability of Air Force 100% of Tactical Air Operations Group
Units in air operations that supported the Unified Commands
attained

Output Indicator FY 2021 Target

AIR FORCES DEFENSE PROGRAM
Number of supportable aircraft maintained 173
Percentage of accomplishment of one-hour
90%
response to flight-directed mission
Percentage of flying hours flown 100%

8
 PROGRAM 3, PHILIPPINE NAVY
Organizational Outcome FY 2021 Target
Level of mission
capability of Navy Units 100% of Naval Units provided to unified
in naval operations commands
attained

Output Indicator FY 2021 Target

NAVAL FORCES DEFENSE PROGRAM
Number of Philippine Navy (PN) units deployed and 109
sustained for utilization/employment
Number of PN units prepared for deployment 34
Number of force-level Support Service Units
sustained 137

9
 PROGRAM 4, AFP GHQ & KBUs
Organizational Outcome FY 2021 Target
JOINT FORCE PLANNING PROGRAM
 90% of military plans and policies approved
and implemented
JOINT FORCE OPERATIONS PROGRAM
 100% compliance with strategic initiatives,
memorandum of agreements/understanding
and other treaties pertaining to Bilateral and
Sovereignty of the State and Multilateral engagements
Filipino people protected  100% of successful security operations for
president, first family, visiting heads of state/
government and other VVIPs
JOINT FORCE CAPABILITY PROGRAM
 90% of patients treated returning to duty;
 90% of commanders who rated the new
graduates satisfactory or better
 100% of signed AFP Modernization projects
completed and delivered

10
 PROGRAM 4, AFP GHQ & KBUs
Output Indicator FY 2021 Target
JOINT FORCE PLANNING SUB-PROGRAM
 Number of military plans and policies formulated and 138
adopted / issued
JOINT FORCE OPERATIONS SUB-PROGRAM
 Number of Bilateral and Multilateral engagements 140
 Number of Joint Operations conducted 193,226
 Number of security operations for the president, first family, 5,944
visiting heads of state/government and other VVIPs conducted
JOINT FORCE CAPABILITY SUB-PROGRAM
 Number of patients that received treatment 10,852
 Percentage of patients treated within the accepted LOS per case 90%
 Number of students trained
 Cadets (PMA) 1,300
 Personnel (Post-Commission) 146
AFP SUB-MODERNIZATION
 Number of AFP Modernization contracts signed 10

11
 DEPARTMENT OF NATIONAL DEFENSE
- PROPER
Organizational Outcome FY 2021 Target
Defense and security 100% of targets accomplished based on
policy and strategy DND Proper policies; 80% of policies and
strategies accepted by the President and
direction provided the Cabinet

Output Indicator FY 2021 Target

DEFENSE POLICY AND STRATEGY MANAGEMENT PROGRAM

Number of Defense System of Management (DSOM) Key

Document Products developed 90

Number of International Defense and Security Engagements

(IDSE) Key Document Products developed 46

One (1) DND-Wide Program Performance and Budget Execution

Review (PPBER) Report developed 1
12
 GOVERNMENT ARSENAL
Organizational Outcome FY 2021 Target
Supply of Small Arms 100% supportability to AFP Small Arms
Ammunition, Weapons
and Munitions increased Ammunition (SAA) requirements for two
to the level of demand (2) basic loads (combat requirements)

Output Indicator FY 2021 Target

SMALL ARMS AMMUNITION, WEAPONS AND
MUNITIONS PROGRAM
40 Million
Number of Small Arms Ammunitions manufactured Rounds (MRds)
Percentage acceptance based on standards 98%

13
 OFFICE OF CIVIL DEFENSE
Organizational
FY 2021 Target
Outcome
CIVIL PROTECTION PROGRAM
CIVIL DEFENSE ENHANCEMENT SUB-PROGRAM
 10% increase of volunteers and local Disaster Risk Reduction
and Management Officers (DRRMOs) capacitated
 65% assessed Local Disaster Risk Reduction and Management
Offices (LDRRMOs)
DISASTER RISK REDUCTION AND MANAGEMENT SUB-PROGRAM
 266 number of Disaster Risk Reduction Management (DRRM)
training programs and learning initiatives provided to
Resiliency of National/Regional Disaster Risk Reduction Management
communities to
Council (N/R DRRMC) member agencies, Local Government
disasters improved Units (LGUs), and sectoral groups
 100% of National/Regional/Local Disaster Risk Reduction and
Management Council (N/R/L DRRMC) member agencies, LGUs
and sectoral groups assessed on disaster readiness and
resiliency
DISASTER MANAGEMENT OPERATIONS SUB-PROGRAM
 100% of disaster risk management operations conducted
and/or supported

14
 OFFICE OF CIVIL DEFENSE
Output Indicator FY 2021 Target
CIVIL DEFENSE ENHANCEMENT SUB-PROGRAM
 Number of volunteers and local Disaster Risk Reduction and Management 1,663
Officers (LDRRMOs) capacitated
 Number of Operation Centers (OpCens) managed 18
DISASTER RISK REDUCTION AND MANAGEMENT SUB-PROGRAM
 Percentage of participants from National/Regional Disaster Risk Reduction and
Management Council (N/R DRRMC) member agencies, LGUs and sectoral 70%
groups who rated the Disaster Risk Reduction and Management (DRRM)
training and learning initiatives as at least satisfactory
 Percentage of National/Regional/Local Disaster Risk Reduction and
Management Council (N/R/L DRRMC) member agencies, LGUs and sectoral 100%
groups assessed in the Gawad Kalasag (GK) program
 Number of Local Disaster Risk Reduction and Management Plans (LDRRMPs) 1,715
reviewed and evaluated
DISASTER MANAGEMENT OPERATIONS SUB-PROGRAM
 Percentage of requests for Non-Food Items (NFIs) of disaster-stricken Local 100%
Government Units (LGUs) acted upon
 Percentage of disaster risk management operations conducted and/or 100%
supported in response to slow-onset and sudden-onset hazards
 Percentage of disaster risk management operations conducted and/or 100%
supported in response to planned events 15
 OFFICE OF CIVIL DEFENSE
Output Indicator FY 2021 Target
CIVIL DEFENSE ENHANCEMENT SUB-PROGRAM
 Number of volunteers and local Disaster Risk Reduction and Management 1,663
Officers (LDRRMOs) capacitated
 Number of Operation Centers (OpCens) managed 18
DISASTER RISK REDUCTION AND MANAGEMENT SUB-PROGRAM
 Percentage of participants from National/Regional Disaster Risk Reduction and
Management Council (N/R DRRMC) member agencies, LGUs and sectoral 70%
groups who rated the Disaster Risk Reduction and Management (DRRM)
training and learning initiatives as at least satisfactory
 Percentage of National/Regional/Local Disaster Risk Reduction and
Management Council (N/R/L DRRMC) member agencies, LGUs and sectoral 100%
groups assessed in the Gawad Kalasag (GK) program
 Number of Local Disaster Risk Reduction and Management Plans (LDRRMPs) 1,715
reviewed and evaluated
DISASTER MANAGEMENT OPERATIONS SUB-PROGRAM
 Percentage of requests for Non-Food Items (NFIs) of disaster-stricken Local 100%
Government Units (LGUs) acted upon
 Percentage of disaster risk management operations conducted and/or 100%
supported in response to slow-onset and sudden-onset hazards
 Percentage of disaster risk management operations conducted and/or 100%
supported in response to planned events 16
 NATIONAL DEFENSE COLLEGE OF
THE PHILIPPINES
Organizational Outcome FY 2021 Target
100% of research papers accepted by
Defense and Security requesting agencies; 33% of Senior
Leaders' Capacity Leaders from DND and AFP who
Improved completed MNSA program; 1:08 teacher
to student ratio

Output Indicator FY 2021 Target

NATIONAL DEFENSE AND SECURITY POLICY STUDIES PROGRAM
 Number of research papers produced 20
 Number of publications produced 10
NATIONAL DEFENSE AND SECURITY EDUCATION PROGRAM
 Number of graduates 65
 Number of enrollees 65

17
 PHILIPPINE VETERANS AFFAIRS
OFFICE
Organizational Outcomes FY 2021 Target
Filipino veterans empowered 100% of regular pensions paid on or before due date;
30% of veterans who are members of veterans orgs.
Filipinos' appreciation & gratitude 500,000 shrine visitors and attendees to
of veterans' service demonstrated commemorative events

Output Indicator FY 2021 Target

VETERANS WELFARE AND BENEFITS ADMINISTRATION PROGRAM
 Percentage of benefit claims processed within 10 working days 92%
upon receipt of completed documents
 Number of recipients of non-pension benefits 9,998
VETERANS AFFAIRS MANAGEMENT PROGRAM
 Number of veteran-related engagements 42
 Number of veterans organizations assisted 42
VETERANS MEMORIAL AND HISTORICAL PRESERVATION PROGRAM
 Number of shrines maintained 8
 Number of veterans' celebratory events managed 13
 Number of books, journals and other materials published 4

18
 VETERANS MEMORIAL MEDICAL
CENTER
Organizational Outcome FY 2021 Target
Quality healthcare services
provided to veterans and their 85% of hospital discharges successfully treated
dependents

Output Indicator FY 2021 Target

VETERAN HEALTH CARE PROGRAM
In-Patient Care
 Number of in-patients treated 11,000
Out-patient Care
 Number of out-patients treated 195,000
 Percentage of patients attended upon arrival in the emergency ward:
Category 1 - Immediate simultaneous assessment and treatment 100%
Category 2 - Assessment and treatment within 10 minutes 100%
Category 3 - Assessment and treatment within 30 minutes 100%
Category 4 - Assessment and treatment within 60 minutes 100%
Category 5 - Assessment and treatment within 120 minutes 100%

19
Department of National Defense

FISCAL YEAR 2021

BUDGET PROPOSAL

20
 DND FY2021 Budget Proposal
(In Thousand Pesos)

TOTAL 283,256,795

Pension
74,551,441
26%
Regular Fund
208,705,354
74%

* NET OF RLIP 21
 DND FY2021 Budget Proposal
(In Thousand Pesos)

TOTAL 283,256,795
Regular
Personnel Services
122,117,354
43% Pension
74,551,441
26%
Capital Outlay MOOE
37,574,424 49,013,576
13% 17%

* NET OF RLIP 22
 DND FY2021 Budget Proposal
(In Thousand Pesos)
REGULAR FUND
By Expense Class
VARIANCE
EXPENSE FY 2020 FY 2021
CLASS GAA NEP Amount %
PS 119,716,875 122,117,354 2,400,479 2.01%
MOOE 41,340,939 49,013,576 7,672,637 18.56%
CO 30,686,439 37,574,424 6,887,985 22.45%
TOTAL 191,744,253 208,705,354 16,961,101 8.85%

* NET OF RLIP 23
 DND FY2021 Budget Proposal
(In Thousand Pesos)
By Budget Structure
REGULAR PROGRAM

VARIANCE
BUDGET FY 2020 FY 2021
STRUCTURE GAA NEP Amount %
GAS 17,707,692 17,163,581 (544,111) -3.07%
OPERATIONS 174,036,561 191,541,773 17,505,212 10.06%
TOTAL 191,744,253 208,705,354 16,691,101 8.85%

* NET OF RLIP 24
 DND FY2021 Budget Proposal
(In Thousand Pesos)
By Budget Structure
PENSION AND GRATUITY FUND

VARIANCE
BENEFICIARIES
FY 2020 FY 2021
GAA NEP Amount %

AFP RETIREES 58,846,064 63,693,548 4,847,484 8.2%

VETERANS 10,857,893 10,857,893 0 0%

TOTAL 69,703,957 69,703,957 12,671,753 7.0%

25
 DND FY2021 Budget Proposal
(In Thousand Pesos)
VARIANCE
PROGRAM FY 2020 GAA FY 2021 NEP
Amount %
AFP 186,003,919 203,263,468 17,259,549 9.3%
Program 1, PA 92,508,006 96,825,021 4,317,015 4.7%
Program 2, PAF 26,436,267 29,803,663 3,367,396 12.7%
Program 3, PN 29,053,943 31,152,115 2,098,172 7.2%
Program 4, GHQ 38,005,703 45,482,669 7,476,966 19.7%
CIVILIAN BUREAUS 5,740,334 5,441,886 -298,448 -5.2%
DND Proper 650,091 502,368 -147,7223 -22.7%
GA 1,302,801 1,300,323 -2,478 -0.2%
OCD 1,236,366 1,194,671 -41,695 -3.4%
NDCP 118,804 97,203 -21,601 -18.2%
PVAO 627,454 595,303 -32,151 -5.1%
VMMC 1,804,818 1,752,018 -52,800 -5.9%
26
TOTAL 191,744,253 208,705,354 16,961,101 8.8%
Department of National Defense

SIGNIFICANT FEATURES OF
THE FY 2021 BUDGET
PROPOSAL

27
 DND FY 2021 STAFFING
SUMMARY
PROGRAM MILITARY CIVILIAN CAFGU TOTAL
AFP 150,741 8,920 69,938 229,599
Program 1, PA 103,178 1,698 69,938 174,814
Program 2, PAF 19,072 1,827 – 20,899
Program 3, PN 25,260 1,450 – 26,710
Program 4, GHQ 3,231 3,945 – 7,176
CIVILIAN BUREAUS   3,560   3,560
DND Proper – 341 – 341
GA – 687 – 687
OCD – 655 – 655
NDCP – 66 – 66
PVAO – 406 – 406
VMMC – 1,405 – 1,405
TOTAL 150,741 12,480 69,938 233,159

28
 DND FY2021 Budget Proposal
(In Thousand Pesos)
VARIANCE
EXPENSE FY 2020 FY 2021
CLASS GAA NEP Amount %
PS 119,716,875 122,117,354 2,400,479 2.01%
MOOE DETAILS OF49,013,576
41,340,939 PS VARIANCE 7,672,637 18.56%
• Requirements for Filling-up of Positions
CO 30,686,439
• Second Tranche 37,574,424
of the Salary Increase 6,887,985
for the Civilian 22.45%
Personnel
Authorized under Republic Act No. 11466
• TOTAL 191,744,253
Terminal Leave and Retirement208,705,354
Gratuity Benefits16,961,101 8.85%
• Other PS Adjustments

29
* NET OF RLIP
 DND FY2021 Budget Proposal
(In Thousand Pesos)

VARIANCE
EXPENSE FY 2020 FY 2021
CLASS GAA NEP Amount %
PS 119,716,875 122,117,354 2,400,479 2.01%
MOOE 41,340,939 49,013,576 7,672,637 18.56%
CO 30,686,439 37,574,424 6,887,985 22.45%
TOTAL 191,744,253 208,705,354 16,961,101 8.85%

30
* NET OF RLIP
 DND FY2021 Budget Proposal
(In Thousand Pesos)

DETAILS OF MOOE VARIANCE TOTAL

MOOE VARIANCE 7,672,637
INCREASES DUE TO THE FOLLOWING: 11,739,294
Expansion for Existing Programs/Activities/Projects 3,914,662
Sustainment of Units 2,459,650
MOOE for Equipment Acquired Out of CUP and Capital Outlay Funds 2,244,804
Inflationary Adjustments 969,370
Additional Fund for Ammunitions 569,246
Quick Response Fund 386,703
Requirements for Additional Troops 48,695
MITHI Requirements 48,424
COVID-19 Related Programs/Projects 1,097,740
LESS:
FY2020 Implemented Programs/Activities/Projects (4,066,657)

31
 DND FY2021 Budget Proposal
(In Thousand Pesos)

VARIANCE
EXPENSE FY 2020 FY 2021
CLASS GAA NEP Amount %
PS 119,716,875 122,117,354 2,400,479 2.01%
MOOE 41,340,939 49,013,576 7,672,637 18.56%
CO 30,686,439 37,574,424 6,887,985 22.45%
TOTAL 191,744,253 208,705,354 16,961,101 8.85%

32
* NET OF RLIP
 DND FY2021 Budget Proposal
(In Thousand Pesos)

DETAILS OF CAPITAL OUTLAY VARIANCE TOTAL

CO VARIANCE 6,887,985
INCREASES DUE TO THE FOLLOWING: 11,648,642
Restoration of Discontinued AFP Modernization Program 8,000,000
Expansion of Existing Programs/Activities/Projects 1,613,466
Mobility Requirements 850,697
Construction and Enhancement of Base and Base Support Facilities 516,967
Sustainment of Units 288,716
Hardware Requirement for MITHI Projects 264,819
Quick Response Fund for the OCD 113,297
COVID-19 Related Programs/Projects 440
LESS: FY2020 Implemented Programs/Activities/Projects (4,760,417)

33
 DND FY2021 Budget Proposal
(In Thousand Pesos)

TOTAL 283,256,795
Regular
Personnel Services
122,117,354
43% Pension
74,551,441
26%
Capital Outlay MOOE
37,574,424 49,013,576
13% 17%

* NET OF RLIP 34
 Additional Priority Projects of
DND for FY2021
(In Thousand Pesos)

Program Projects TOTAL

PA Additional Requirement for the Operationalization of 11ID 1,234,785
Initial Payment of 15% for the Procurement of Five (5) C- 5,550,000
PAF 130J
1st year of the Five-Year Acquisition Program of Mission- 380,656
PN
Essential Equipment for Naval Sea Systems Command
GHQ Sustainment of Delivered AFP Modernization Projects 820,976
Sub-Total, AFP 7,986,417
DND Proper Implementation of the ISSP Program 89,075
GA Head Turning and Mouth Chamfering Machine 50,000
OCD Furniture and Fixtures of the New Administrative Building 62,707
NDCP Public Address Health System 13,048
PVAO Implementation of VMHCP 105,000
VMMC Drugs and Medicines 425,428
Sub-Total, Civilian Bureaus 745,258
TOTAL 8,731,675

35
THANK YOU
AND
STAY SAFE!
36