1. Revised Budget Structure for the Department of Health Benjamin E. Diokno School of Economics University of the Philippines

2. DOH Revised Budget Structure2 Objectives  Design a budget structure that is compatible with the health sector reform implementation strategy  Show as clearly as possible the resources allocated for specific programs, by geographic areas, in order to facilitate the analysis relating government spending to health outputs and outcomes

3. DOH Revised Budget Structure3 Characteristics of New Budget Structure (NBS)  Consistent with core functions as envisaged in the health reforms under the FOURmula One for Health  Consistent with desired organizational outcomes as envisioned in the organizational performance indicator (OPIF) for DOH  Information on budget activities and sources of financing is comprehensive  It will continue to have spatial dimension

4. DOH Revised Budget Structure4 Issues  Where should the budgets of CHD for (a) general management and supervision and (b) internal and area sectoral planning, human resource development be assigned?  How should locally-funded and foreign-assisted projects be handled?  What will be the level of disaggregation by expenditure by object class?

5. DOH Revised Budget Structure5 Process  Step One: Analyze the 2006 proposed budget and identify the specific programs, projects, and activities in accordance with the following functions: governance and management support, policy standards development and TA, and field implementation and coordination.  Step Two: The 2006 budget is then rearranged consistent with the desired objectives of the NBS.

6. DOH Revised Budget Structure6 Typical Budget Structure for a CHD I. Governance and Management Support a. General management and supervision b. Internal and area sectoral planning, human resource, development, including support to operations of coordinating centers II. Technical Assistance and Field Implementation and Coordination a. Enforcement and implementation of standards and licensing of health facilities, health products and devises (including pharmaceuticals) and support for quality assurance in LGUs. b. Local health technical assistance including health systems development, provision of logistic support to local health programs including disease prevention and control, health promotion and other operations c. Direct service provision d. Locally funded project(s)

7. DOH Revised Budget Structure7 Example: Cordillera Region Personal Services MOOECapital Outlays I. Governance and Management Support 45,720,0005,486,0000 a. General management and supervision 45,720,0005,278,0000 b. Internal and area sectoral planning, human resource development, including support to operations of collaborating centers 208,0000

8. DOH Revised Budget Structure8 Example: Cordillera Region Personal Services MOOECapital Outlays 2. Technical Assistance and Field Implementation and Coordination a. Enforcement and implementation of regulations, standards and licensing of health products and devices (including pharmaceuticals) and support to quality assurance in LGUs 1,868,000 b. Local health technical assistance incl health systems development, provision of logistical support to local health programs incl disease prevention and control, health promotion and other health operations 08,224,000

9. DOH Revised Budget Structure9 Example: Cordillera Region Personal Services MOOECapital Outlays c. Direct Service Provision 1. Baguio General Hospital and Medical Center, Tertiary Medical (A-400) Baguio City 124,652,00073,347,0000 2. Luis Hora Memorial Regional Hospital, Tertiary Regional (A-150) Bauko, Mt. Province 17,409,00012,688,0000 3. Conner District Hospital, (A-25), Corner, Apayao Province 6,664,0001,394,0000 4. Far North Luzon General Hospital and Training Center (A-100), Luna, Apayao Province 10,111,0007,854,0000

10. DOH Revised Budget Structure10 Major Differences Between Old and New  More resources are now attributed to subnational governments, specifically to the centers for health development (CHDs)  The program-project dichotomy has been deemphasized.