NATIONAL EDUCATION EXPENDITURE ACCOUNTS (NEXA)
The data for the estimation of the education expenditures of the general government sector were culled from three different source documents. These include the Annual Financial Report of the National Government (AFR Volume I) and the Annual Financial Report of Local Governments (AFR Volume III) of the Commission on Audit (COA), which report the total actual expenditures of national government agencies (on a per department/agency basis) and the corresponding total for local government units (by sector/function).
Also used as a data source was the General Appropriations Act (GAA), the preparation and passing of which was spearheaded by the Department of Budget and Management (DBM). The GAA provides data on government appropriations by department/agency, by program/project/activity, and by budget item.
Coverage and Estimation
Expenditures included under general government are those spent by national government agencies (NGAs) and local government units (LGUs) for the following:
- education services provided through government-run schools;
- non-degree training programs offered by government agencies;
- job-related training and seminar expenses for government personnel;
- overall administration of public-education programs by the government;
- construction of facilities for use in public education programs; and
- government counterpart funding for foreign assistance loans and grants for education-related projects.
For NEXA purposes, NGAs were broadly classified into two groups. ‘Take-all’ agencies are those performing purely education-related functions, while ‘partial-budget’ NGAs are those whose mandates are not purely education-related, but perform education-related activities in the course of the implementation of their mandated functions.
Agencies whose expenditures are considered ‘take-all’ for education are the following:
- DepEd (including the Office of the Secretary, Commission on the Filipino Language, Philippine High School for the Arts, and National Library);
- All state universities and colleges;
- Local Government Academy and Philippine Public Safety College under the Department of Interior and Local Government;
- National Maritime Polytechnic under the Department of Labor and Employment;
- Philippine Military Academy and National Defense College of the Philippines under the Department of National Defense;
- Philippine Science High School and Science Education Institute under the Department of Science and Technology;
- Statistical Research and Training Center under the National Economic and Development Authority;
- National Book Development Board and National Computer Center under other executive offices; and
- Department of Education of the Autonomous Region in Muslim Mindanao.
For these take-all agencies, the general procedure followed was to use the COA data on total actual expenditures and to apply the GAA structure for the distribution of expenditures based on the NEXA classification. The data were tabulated by agency and by individual SUC, and the planned expenditures from the GAA were individually reclassified to conform to the NEXA disaggregation.
The government’s counterpart funding for foreign-assisted projects was obtained from the GAA. Projects of take-all NGAs that were not intended for the improvement of the provision and consumption of education services were excluded.
For most partial budget agencies, the education expenditures covered by the NEXA were limited to those spent on training activities undertaken for their own staff development. The data on total expenses on training and seminars conducted by NGAs was obtained from the COA AFR Volume I. Since this was the total for all agencies, expenses of the DepEd, SUCs and the other take-all NGAs for their own staff development and which were separately accounted for had to be subtracted from the total training and seminar expenses as reported in the AFR. The resulting net figure was then considered the training and seminar expense of the partial budget agencies for their own staff development.
Special attention, however, was given to the training expenses of the Armed Forces of the Philippines as derived from the GAA and adjusted based on the COA levels. These were included under job-related training expenditures.
Another agency given special attention because of the capital outlay for buildings and structures was the Department of Public Works and Highways (DPWH) for its school building program for the DepEd. These were accounted for under other uses of funds in the NEXA, which included other capital outlays. Data were derived from the BESF table on the infrastructure program of the government.
For the total education expenditures of local government units, the data from the COA AFR Volume III were only reported by sector and function; hence, disaggregation based on the NEXA classification of uses of funds was not possible.
Education projects funded under the Countrywide Development Fund (CDF) of senators and congressmen are also covered in the COA report and expenses for these projects can be directly derived as they are specifically labeled as education expenditures. These were included in the NEXA matrix under other uses of funds because these could not be properly classified in any of the other rows.