Department of Social Welfare and Development

class: center, middle, inverse, title-slide

.title[
# Department of Social Welfare and Development – Office of the Secretary
]
.subtitle[
## The FY 2027 proposed budget in context, 2018-2027
]
.date[
### September 2026
]

---

## Executive summary -- and the FY 2027 proposal

- **The FY 2027 proposal (NEP) is PHP 236B for DSWD-OSEC** -- up about **PHP 14B (+6%)** on the 2026 proposal (PHP 221B), and the largest DSWD proposal yet. It sits PHP 29B below the Congress-augmented 2026 enacted level (PHP 264B).
- **The flagship 4Ps is proposed *down* PHP 14B** -- from PHP 113B to **PHP 99B**. This is a genuine reduction: Congress did *not* inflate 4Ps in 2026 (NEP = GAA = PHP 113B), so the proposed drop is real, not a proposal-vs-enacted artifact.
- **A new PHP 17.7B program appears:** "Panahon ng Pagkilos: Philippine Community Resilience" -- the single largest increase, with no prior-year budget and no track record.
- **Crisis assistance grows too:** Protective Services (which houses AICS) is proposed **+PHP 6.3B to PHP 33B**. So money shifts from the evaluated, conditional 4Ps toward a new program and more discretionary assistance.
- **Still overwhelmingly a cash-transfer, MOOE-heavy agency:** 4Ps, Protective Services and Social Pension are ~78% of the proposal; MOOE is 93-95% of the budget every year.
- **Absorption is strong and improving** (disbursement-to-allotment 90% in 2024, 96% in 2025) -- so the case for the 4Ps reduction cannot rest on an inability to spend.
- **The scrutiny question for advocates:** is cutting the country's flagship anti-poverty transfer to fund a new, untested resilience program and more discretionary aid the right trade-off?

---

## A few notes on the data

- **Period:** FY 2018-2027. **FY 2027 is the NEP (the Executive's proposal) only** -- not yet debated or enacted, and with no execution data. FY 2026 reflects NEP/GAA only; P/A/P-level execution runs FY 2018-2025. Because Congress raises DSWD's budget above the proposal, the FY 2027 NEP is best read as a floor.
- **Scope:** the main analysis covers the DSWD Office of the Secretary; a slide near the end summarises the attached agencies (Senior Citizens, Child Care Authority, Anti-Poverty Commission, and others). "Current New Appropriations" only.
- **Expense classes:** DSWD uses four classes -- Personnel Services (PS), Maintenance & Other Operating Expenses (MOOE), Financial Expenses (FE), and Capital Outlays (CO). MOOE dominates because cash transfers classify under MOOE; FE and CO are each under 1% of the budget.
- **Absorptive capacity denominator:** Adjusted Allotments (AdjAllot).

---

## Big picture: the budget keeps growing

---

## Big picture: a few takeaways

<table class="table table-condensed table-striped" style="font-size: 15px; color: black; margin-left: auto; margin-right: auto;">
 <thead>
  <tr>
   <th style="text-align:left;"> PHP B </th>
   <th style="text-align:right;"> 2018 </th>
   <th style="text-align:right;"> 2019 </th>
   <th style="text-align:right;"> 2020 </th>
   <th style="text-align:right;"> 2021 </th>
   <th style="text-align:right;"> 2022 </th>
   <th style="text-align:right;"> 2023 </th>
   <th style="text-align:right;"> 2024 </th>
   <th style="text-align:right;"> 2025 </th>
   <th style="text-align:right;"> 2026 </th>
   <th style="text-align:right;"> 2027 </th>
  </tr>
 </thead>
<tbody>
  <tr>
   <td style="text-align:left;"> NEP </td>
   <td style="text-align:right;"> 137.6 </td>
   <td style="text-align:right;"> 136.4 </td>
   <td style="text-align:right;"> 156.6 </td>
   <td style="text-align:right;"> 169.2 </td>
   <td style="text-align:right;"> 189.0 </td>
   <td style="text-align:right;"> 194.6 </td>
   <td style="text-align:right;"> 207.2 </td>
   <td style="text-align:right;"> 226.7 </td>
   <td style="text-align:right;"> 221.4 </td>
   <td style="text-align:right;"> 235.7 </td>
  </tr>
  <tr>
   <td style="text-align:left;"> GAA </td>
   <td style="text-align:right;"> 141.4 </td>
   <td style="text-align:right;"> 138.5 </td>
   <td style="text-align:right;"> 162.0 </td>
   <td style="text-align:right;"> 174.7 </td>
   <td style="text-align:right;"> 202.4 </td>
   <td style="text-align:right;"> 196.5 </td>
   <td style="text-align:right;"> 245.0 </td>
   <td style="text-align:right;"> 215.8 </td>
   <td style="text-align:right;"> 264.4 </td>
   <td style="text-align:right;">  </td>
  </tr>
  <tr>
   <td style="text-align:left;"> Adj. Allotment </td>
   <td style="text-align:right;"> 139.6 </td>
   <td style="text-align:right;"> 133.3 </td>
   <td style="text-align:right;"> 161.9 </td>
   <td style="text-align:right;"> 174.7 </td>
   <td style="text-align:right;"> 202.4 </td>
   <td style="text-align:right;"> 194.3 </td>
   <td style="text-align:right;"> 241.8 </td>
   <td style="text-align:right;"> 212.8 </td>
   <td style="text-align:right;">  </td>
   <td style="text-align:right;">  </td>
  </tr>
  <tr>
   <td style="text-align:left;"> Obligations </td>
   <td style="text-align:right;"> 136.6 </td>
   <td style="text-align:right;"> 128.7 </td>
   <td style="text-align:right;"> 141.0 </td>
   <td style="text-align:right;"> 158.9 </td>
   <td style="text-align:right;"> 184.6 </td>
   <td style="text-align:right;"> 188.0 </td>
   <td style="text-align:right;"> 236.7 </td>
   <td style="text-align:right;"> 208.7 </td>
   <td style="text-align:right;">  </td>
   <td style="text-align:right;">  </td>
  </tr>
  <tr>
   <td style="text-align:left;"> Disbursements </td>
   <td style="text-align:right;"> 116.7 </td>
   <td style="text-align:right;"> 109.0 </td>
   <td style="text-align:right;"> 114.6 </td>
   <td style="text-align:right;"> 143.7 </td>
   <td style="text-align:right;"> 161.9 </td>
   <td style="text-align:right;"> 157.0 </td>
   <td style="text-align:right;"> 216.8 </td>
   <td style="text-align:right;"> 203.9 </td>
   <td style="text-align:right;">  </td>
   <td style="text-align:right;">  </td>
  </tr>
</tbody>
</table>

- **The enacted GAA has exceeded the Executive's NEP in eight of nine years.** The exception is FY 2025 (Congress trimmed PHP 11B).
- **The 2024 GAA jumped PHP 38B over the NEP**, largely to launch the AKAP program and scale up Protective Services.
- **Disbursements have steadily caught up to allotments.** The aggregate D/A ratio held at 71-84% from 2018 through 2023, then jumped to 90% (2024) and 96% (2025) -- the strongest readings on record.

---

## Where the money goes (by PREXC program)

---

## Composition by Expense Class

---

## The ten largest P/A/Ps (FY 2027 NEP, proposed)

---

## DSWD is a cash-transfer agency

---

## What changes in the FY 2027 proposal (NEP 2026 -> NEP 2027)

.small[
Comparing the two *proposals* (rather than proposal-vs-enacted) isolates what the Executive chose to change. The 4Ps cut is real -- Congress left 4Ps at the proposed level in 2026, so the reduction is not offset by a prior-year plus-up. The new "Panahon ng Pagkilos" line and the Protective Services (AICS) increase together more than replace it.
]

---

## In focus: the 4Ps proposal steps down

.small[
- **Congress has enacted 4Ps *below* the proposal in most years since 2021** -- most sharply in 2025 (GAA **PHP 64B** against a proposed PHP 114B).
- **In 2026 the enacted budget matched the proposal** (PHP 113B), so the FY 2027 proposed drop to **PHP 99B (-PHP 14B)** is a genuine reduction, not a rebound from a prior-year cut.
- **This is the first time the Executive's own proposal steps 4Ps down.** With disbursement at 98-99%, it is not an absorption problem -- it reflects a caseload or policy decision advocates can probe.
]

---

## Where Congress adjusts the DSWD budget

.small[
- The +PHP 53B AKAP add is a striking case of Congressional initiative: AKAP appears in GAAs without a matching NEP line in most years -- Congress added the program outright.
]

---

## Absorptive capacity: aggregate

---

## Protective Services: an 11x scale-up

.small[
- **Now the second-largest DSWD line**, behind only 4Ps; recent absorption is strong (D/A 97-99% in 2023-2025).
- **Cumulative NEP-to-GAA augmentation since 2018: +PHP 116B** -- the largest of any DSWD line.
- **The 2026 NEP-to-GAA delta is concentrated here:** +PHP 37B alone lifts the line to PHP 63.9B.
- **Open question:** does the strong absorption track record hold at this much larger scale, across many sub-lines (AICS, ESC, OFW services, anti-trafficking)?
]

---

## Absorption by Expense Class

---

## Strongest absorbers (FY 2025)

<table class="table table-condensed table-striped" style="font-size: 15px; color: black; margin-left: auto; margin-right: auto;">
 <thead>
  <tr>
   <th style="text-align:left;"> P/A/P </th>
   <th style="text-align:right;"> Allotment (B) </th>
   <th style="text-align:right;"> O/A </th>
   <th style="text-align:right;"> D/O </th>
   <th style="text-align:right;"> D/A </th>
  </tr>
 </thead>
<tbody>
  <tr>
   <td style="text-align:left;"> Walang Gutom 2027: Food STAMP Program </td>
   <td style="text-align:right;"> 1.89 </td>
   <td style="text-align:right;"> 100% </td>
   <td style="text-align:right;"> 100% </td>
   <td style="text-align:right;"> 99% </td>
  </tr>
  <tr>
   <td style="text-align:left;"> Protective Services for Individuals and Families ... </td>
   <td style="text-align:right;"> 44.73 </td>
   <td style="text-align:right;"> 100% </td>
   <td style="text-align:right;"> 99% </td>
   <td style="text-align:right;"> 99% </td>
  </tr>
  <tr>
   <td style="text-align:left;"> Pantawid Pamilyang Pilipino Program (Implementati... </td>
   <td style="text-align:right;"> 63.68 </td>
   <td style="text-align:right;"> 98% </td>
   <td style="text-align:right;"> 100% </td>
   <td style="text-align:right;"> 98% </td>
  </tr>
  <tr>
   <td style="text-align:left;"> Social Pension for Indigent Senior Citizens </td>
   <td style="text-align:right;"> 47.95 </td>
   <td style="text-align:right;"> 99% </td>
   <td style="text-align:right;"> 98% </td>
   <td style="text-align:right;"> 98% </td>
  </tr>
  <tr>
   <td style="text-align:left;"> Ayuda sa Kapos ang Kita Program (AKAP) </td>
   <td style="text-align:right;"> 26.16 </td>
   <td style="text-align:right;"> 99% </td>
   <td style="text-align:right;"> 97% </td>
   <td style="text-align:right;"> 96% </td>
  </tr>
  <tr>
   <td style="text-align:left;"> Sustainable Livelihood Program </td>
   <td style="text-align:right;"> 6.16 </td>
   <td style="text-align:right;"> 98% </td>
   <td style="text-align:right;"> 95% </td>
   <td style="text-align:right;"> 94% </td>
  </tr>
  <tr>
   <td style="text-align:left;"> Provision of Technical/Advisory Assistance and Ot... </td>
   <td style="text-align:right;"> 1.17 </td>
   <td style="text-align:right;"> 98% </td>
   <td style="text-align:right;"> 94% </td>
   <td style="text-align:right;"> 93% </td>
  </tr>
</tbody>
</table>

The strongest absorbers are the agency's flagship cash-transfer programs and a few well-defined operational lines. **Three of the four largest programs (4Ps, Protective Services, Social Pension) disburse at 98-99%.**

---

## Weakest absorbers (FY 2025)

<table class="table table-condensed table-striped" style="font-size: 15px; color: black; margin-left: auto; margin-right: auto;">
 <thead>
  <tr>
   <th style="text-align:left;"> P/A/P </th>
   <th style="text-align:right;"> Allotment (B) </th>
   <th style="text-align:right;"> O/A </th>
   <th style="text-align:right;"> D/O </th>
   <th style="text-align:right;"> D/A </th>
  </tr>
 </thead>
<tbody>
  <tr>
   <td style="text-align:left;"> Implementation and Monitoring of Payapa at Masaga... </td>
   <td style="text-align:right;"> 1.05 </td>
   <td style="text-align:right;"> 52% </td>
   <td style="text-align:right;"> 76% </td>
   <td style="text-align:right;"> 40% </td>
  </tr>
  <tr>
   <td style="text-align:left;"> General Management and Supervision </td>
   <td style="text-align:right;"> 2.36 </td>
   <td style="text-align:right;"> 72% </td>
   <td style="text-align:right;"> 68% </td>
   <td style="text-align:right;"> 49% </td>
  </tr>
  <tr>
   <td style="text-align:left;"> Information and Communication Technology Service ... </td>
   <td style="text-align:right;"> 1.46 </td>
   <td style="text-align:right;"> 78% </td>
   <td style="text-align:right;"> 73% </td>
   <td style="text-align:right;"> 57% </td>
  </tr>
  <tr>
   <td style="text-align:left;"> Services for Residential and Center-based Clients </td>
   <td style="text-align:right;"> 2.92 </td>
   <td style="text-align:right;"> 96% </td>
   <td style="text-align:right;"> 83% </td>
   <td style="text-align:right;"> 80% </td>
  </tr>
  <tr>
   <td style="text-align:left;"> Quick Response Fund </td>
   <td style="text-align:right;"> 1.25 </td>
   <td style="text-align:right;"> 97% </td>
   <td style="text-align:right;"> 91% </td>
   <td style="text-align:right;"> 89% </td>
  </tr>
  <tr>
   <td style="text-align:left;"> Kapit-Bisig Laban sa Kahirapan-Comprehensive and ... </td>
   <td style="text-align:right;"> 2.11 </td>
   <td style="text-align:right;"> 95% </td>
   <td style="text-align:right;"> 96% </td>
   <td style="text-align:right;"> 91% </td>
  </tr>
  <tr>
   <td style="text-align:left;"> Disaster Response and Rehabilitation Program </td>
   <td style="text-align:right;"> 2.08 </td>
   <td style="text-align:right;"> 97% </td>
   <td style="text-align:right;"> 95% </td>
   <td style="text-align:right;"> 92% </td>
  </tr>
</tbody>
</table>

The weakest absorbers are smaller operational and special-purpose lines -- **PAMANA (40% D/A), General Management (49%), and ICT (57%)**. The pattern echoes other agencies: routine cash-transfer execution runs cleanly, while administrative and project-type lines lag.

---

## Trajectories of the largest programs

---

## Line-item reference: the FY 2027 proposal in context

<table class="table table-condensed table-striped" style="font-size: 13px; color: black; margin-left: auto; margin-right: auto;">
 <thead>
  <tr>
   <th style="text-align:left;"> P/A/P </th>
   <th style="text-align:right;"> NEP 2027 (B) </th>
   <th style="text-align:right;"> NEP 2026 (B) </th>
   <th style="text-align:right;"> GAA 2026 (B) </th>
   <th style="text-align:right;"> D/A 2025 </th>
  </tr>
 </thead>
<tbody>
  <tr>
   <td style="text-align:left;"> Pantawid Pamilyang Pilipino Program (Implemen... </td>
   <td style="text-align:right;"> 99.08 </td>
   <td style="text-align:right;"> 113.00 </td>
   <td style="text-align:right;"> 113.00 </td>
   <td style="text-align:right;"> 98% </td>
  </tr>
  <tr>
   <td style="text-align:left;"> Social Pension for Indigent Senior Citizens </td>
   <td style="text-align:right;"> 51.64 </td>
   <td style="text-align:right;"> 49.81 </td>
   <td style="text-align:right;"> 51.86 </td>
   <td style="text-align:right;"> 98% </td>
  </tr>
  <tr>
   <td style="text-align:left;"> Protective Services for Individuals and Famil... </td>
   <td style="text-align:right;"> 33.28 </td>
   <td style="text-align:right;"> 27.03 </td>
   <td style="text-align:right;"> 63.90 </td>
   <td style="text-align:right;"> 99% </td>
  </tr>
  <tr>
   <td style="text-align:left;"> Panahon ng Pagkilos: Philippine Community Res... </td>
   <td style="text-align:right;"> 17.66 </td>
   <td style="text-align:right;">  </td>
   <td style="text-align:right;">  </td>
   <td style="text-align:right;">  </td>
  </tr>
  <tr>
   <td style="text-align:left;"> Supplementary Feeding Program </td>
   <td style="text-align:right;"> 6.36 </td>
   <td style="text-align:right;"> 6.11 </td>
   <td style="text-align:right;"> 9.56 </td>
   <td style="text-align:right;"> 93% </td>
  </tr>
  <tr>
   <td style="text-align:left;"> Sustainable Livelihood Program </td>
   <td style="text-align:right;"> 5.12 </td>
   <td style="text-align:right;"> 4.50 </td>
   <td style="text-align:right;"> 5.31 </td>
   <td style="text-align:right;"> 94% </td>
  </tr>
  <tr>
   <td style="text-align:left;"> Reducing Food Insecurity and Undernutrition w... </td>
   <td style="text-align:right;"> 3.88 </td>
   <td style="text-align:right;">  </td>
   <td style="text-align:right;">  </td>
   <td style="text-align:right;">  </td>
  </tr>
  <tr>
   <td style="text-align:left;"> Services for Residential and Center-based Cli... </td>
   <td style="text-align:right;"> 3.33 </td>
   <td style="text-align:right;"> 3.03 </td>
   <td style="text-align:right;"> 3.06 </td>
   <td style="text-align:right;"> 80% </td>
  </tr>
  <tr>
   <td style="text-align:left;"> General Management and Supervision </td>
   <td style="text-align:right;"> 2.07 </td>
   <td style="text-align:right;"> 1.14 </td>
   <td style="text-align:right;"> 2.14 </td>
   <td style="text-align:right;"> 49% </td>
  </tr>
  <tr>
   <td style="text-align:left;"> Disaster Response and Rehabilitation Program </td>
   <td style="text-align:right;"> 1.97 </td>
   <td style="text-align:right;"> 1.94 </td>
   <td style="text-align:right;"> 2.19 </td>
   <td style="text-align:right;"> 92% </td>
  </tr>
  <tr>
   <td style="text-align:left;"> Walang Gutom 2027: Food STAMP Program </td>
   <td style="text-align:right;"> 1.89 </td>
   <td style="text-align:right;"> 1.89 </td>
   <td style="text-align:right;"> 1.89 </td>
   <td style="text-align:right;"> 99% </td>
  </tr>
  <tr>
   <td style="text-align:left;"> Information and Communication Technology Serv... </td>
   <td style="text-align:right;"> 1.78 </td>
   <td style="text-align:right;"> 5.91 </td>
   <td style="text-align:right;"> 1.07 </td>
   <td style="text-align:right;"> 57% </td>
  </tr>
  <tr>
   <td style="text-align:left;"> Provision of Technical/Advisory Assistance an... </td>
   <td style="text-align:right;"> 1.38 </td>
   <td style="text-align:right;"> 1.33 </td>
   <td style="text-align:right;"> 1.49 </td>
   <td style="text-align:right;"> 93% </td>
  </tr>
  <tr>
   <td style="text-align:left;"> Quick Response Fund </td>
   <td style="text-align:right;"> 1.25 </td>
   <td style="text-align:right;"> 1.25 </td>
   <td style="text-align:right;"> 3.00 </td>
   <td style="text-align:right;"> 89% </td>
  </tr>
  <tr>
   <td style="text-align:left;"> Implementation and Monitoring of Payapa at Ma... </td>
   <td style="text-align:right;"> 1.05 </td>
   <td style="text-align:right;"> 0.55 </td>
   <td style="text-align:right;"> 1.05 </td>
   <td style="text-align:right;"> 40% </td>
  </tr>
</tbody>
</table>

.footnote[FY 2027 = proposed (NEP). Compare "NEP 2027" to "NEP 2026" for the proposal-to-proposal change, and to "GAA 2026" for how far the enacted level ran above the proposal. D/A 2025 shows each line's most recent absorption.]

---

## The attached agencies: FY 2027 proposal

.small[
Appropriations only (no P/A/P-level execution data). **The National Commission of Senior Citizens (PHP 3.8B) grows**, as does the **National Authority for Child Care (PHP 0.8B)**. Most others are proposed at or below their 2026 enacted levels; **Disability Affairs (NCDA) is cut by roughly half**. Two bodies have no FY 2027 line here: the **Inter-Country Adoption Board** (functions folded into the new Child Care Authority) and the **National Commission on Indigenous Peoples** (no longer carried under DSWD).
]

---

## For discussion -- scrutinising the FY 2027 proposal

- **1. Cutting 4Ps by PHP 14B.** The proposal reduces the country's flagship conditional cash transfer from PHP 113B to PHP 99B, even though it disburses at 98-99%. Is this a caseload/graduation adjustment, a targeting decision, or a shift in priorities -- and should Congress restore it?
- **2. A new PHP 17.7B "Panahon ng Pagkilos" program.** It appears for the first time with no track record. What exactly does it fund, how were beneficiaries and the PHP 17.7B sized, and how will results be measured against the 4Ps it partly offsets?
- **3. More discretionary crisis assistance.** Protective Services (AICS) rises PHP 6.3B. Discretionary aid is flexible but harder to target and audit than a rules-based transfer. Is the balance between the two moving in the right direction?
- **4. AKAP without an NEP line.** Congress created AKAP outside the President's proposal; with ~PHP 26B running through it, how is it designed, targeted, and audited -- and does it appear in the 2027 proposal?
- **5. MOOE-heavy delivery.** 93-95% of DSWD's budget is MOOE. Does the current expenditure-class reporting illuminate or obscure how social-protection money actually reaches beneficiaries?

---

class: center, middle

# Thank you

### Department of Social Welfare and Development -- Office of the Secretary
#### The FY 2027 proposed budget in context, 2018-2027

.footnote[Underlying data: DBM NEP & GAA and DBM-published execution data for the DSWD-OSEC (Current New Appropriations only), NEP FY 2018-2027, GAA/execution FY 2018-2026/2025. FY 2027 is the proposed NEP only.]