Republic of the Philippines
HOUSE OF REPRESENTATIVES
Batasan Hills, Quezon City

TWENTIETH CONGRESS
First Regular Session

HOUSE BILL No. 204

Introduced by
ACT Teachers Party-List Rep. ANTONIO L. TINIO
and KABATAAN Party-List Rep. RENEE LOUISE M. CO

AN ACT

SETTING ASIDE AN AMOUNT EQUIVALENT TO AT LEAST SIX

PERCENT OF THE GROSS DOMESTIC PRODUCT FOR THE ANNUAL
BUDGET OF THE DEPARTMENT OF EDUCATION, STATE
UNIVERSITIES AND COLLEGES, TECHNICAL EDUCATION AND SKILLS
DEVELOPMENT AUTHORITY, AND OTHER AGENCIES AND

INSTRUMENTALITIES WITH MANDATES DIRECTLY RELATED TO.

EDUCATION, AND ENSURING TO EDUCATION THE HIGHEST

BUDGETARY PRIORITY

EXPLANATORY NOTE

Despite rhetoric on the government's prioritization of education in the national
budget, for the past decades, our public expenditure on education as percentage of the
gross domestic product (GDP) remains below the United Nations Educational,
Scientific and Cultural Organization (UNESCO) standards of at least 6% of the GDP.'
According to World Bank statistics, the Philippines’ public expenditure for education
never breached 4.4% from 1980 to 2020, and generally below the global average on

Reiterated in UNESCO"s Global Education Monitoring Report (2016). This is also the typical
benchmark for developing countries as early as the 1980s (Tilak, 2006).

2 Iutps:/data. worldbank.org/indicator/SE, XPD.TOTL..GD.ZS?conte tual=defaultélocations-PH



most years from 1999 to 2019.3 Hence, it is also among the worst countries in the Asia-
Pacific region in terms of public expenditure for education."

It is in this context that the Programme for International Student Assessment
(PISA) 2018 findings reveals that the country’s dismal PISA results are partly because
“(e)xpenditure per student in the Philippines was the lowest amongst all PISA-
participating countries/economies—and 90% lower than the OECD average.”* This
emphasizes that a populous country like the Philippines will have to hike its public
expenditures for education to have a fighting chance of improving its overall
quality of education. The additional gaps in resources, fix . and personnel laid
bare by the pandemic.° further highlight the need to drastically increase the Philippines”
education budget. The 2022 PISA found that substantial gaps between the highest-
scoring students (10% with the highest scores) and the weakest (10% with the lowest
scores) in mathematics, reading. and science remains. ‘The proportion of students
scoring below a baseline level of proficiency (Level 2) did not change in those subjects.
and at about 150 to 200 score points below the average among Organization for
Economic Cooperation and Development (OECD) countries.

The bigger education expenditures of Finland—which are way above and
consistently higher than the Philippines’ spending for education from 1970 to 2020’—
are also instructive. Finland is usually cited as having the best education system,
ranking first in primary education, and second in higher education and training in the
World Economic Forum's Global Competitiveness Index 2017-2018, as well as second
in skills in the Global Competitiveness Report 2019.8 It is clear from Finland's
experience that the basic element for quality education is higher public expenditures for
education.

Meanwhile. in the Philippines. the Marcosian relic on automatic debt
appropriations (Presidential Decree No. 1177. signed in 1977) remains intact. Despite
the historical fact that the dictator plunged the country into a debt quagmire, Section 31
of PD 1177 or the mandate of automatic appropriations for “principal and interest on

hutps://data worldbank.org/indicator/SE.XPD.TO1L.GD.ZS?contcxtual=default&locations=1W-
PL
+ hutps://data, worldbank.org/indicator/SE.XPD. TOTL.GD.ZS?contcxtual=region&locations -PH
hitps://www eed ory/pisa/publications/PISA2018_CN_PHL pdt
Dayagbil et al., 2021 wind San Juan, 2021
_hups://data. worldbank.org/indicator/SE.XPD.TOTL.GD.ZS?locatigns=PH-FI
© _https://www3,weforum.ory/docs/GCR2017-2018/03Country Profiles/Standalone2-
pagerprofileyWEF_GCI_2017_2018 Profile_Finland.pdf.
https://www3,weforum.ory/docs/WEF_TheGlohalCompetitivenesReport2019.pdf_



public debt [and] national government guarantees of obligations which are drawn upon”
is replicated in foto into the Administrative Code, in particular, Section 26 of Chapter
4, Book V1 on Budget Authorization. The no-questions-asked priority for debt was thus
implemented throughout the post-EDSA 1 administrations, thereby limiting the budget
available for education as well as other social services.

Under this Marcosian relic, huge sums are often automatically allotted for debt
payments. In 1991, Teofisto T. Guingona, Jr. and Aquilino Pimentel, Jr. questioned the
higher appropriation for debt service in 1990 as opposed to that for the Department of
Education, Culture, and Sports as “inconsistent with the Constitution, hence, void.”? In
1994, this was again raised, with petitioners arguing that automatic appropriations for
debt results in a “highest priority for debt service” rather than for education.
Unfortunately, the Supreme Court ruled in favor of “our enormous debt” and “credit
standing,” classifying the constitutional provision as “merely directory.”"”

More recently, the 2025 General Appropriations Act has been criticized as
according the highest to infrastructure spending, sparking criticisms that the Philippine
government is sidelining the education sector, which is already suffering from the
disastrous effects of perpetual underfunding.

This bill intends to take a stand that will favor our children and youth, our
teachers and education personnel. With a specific legislation to implement Section 5(5)
of Article XIV of the Constitution, it is hoped that these words will not remain empty
exhortations but will ensure that taxpayers’ money is translated into actual
appropriations with real-life benefits for our people. Rather than consider it as mere
spending, we must view it as high-yield investments on the country’s future—our
people’s children, the next generation of Filipinos.

According the highest budgetary priority to debt servicing and infrastructure
spending is the reason our teachers and education workers are overworked yet
underpaid and are themselves in debt, why studying in public schools have never been
free in reality, why more and more Filipino children are kept out of school, and why the
quality of education is declining. Reversing this trend may have been due decades ago,
but it is never too late to start now.

°  Teofisto Guingona, Jr. and Aquilino Pimentel, Jr. v. Guillermo Carague, et al. (G.R. 94571,

consolidated with three other petitions, April 22, 1991)
Philippine Constitution Association, et al., vs. Salvador Enriquez. et al. (G.R. 113105,
consolidated with three other petitions, August 19, 1994)

10



For the foregoing reasons, the passage of this bill is sought.

ee _ a
<—Rep. ANTONIO L. TINIO Rep nenfe LOUISE M. CO
ACT Teachers Party-List KABATAAN Party-List



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Batasan Hills, Quezon City

TWENTIETH CONGRESS
First Regular Session

O04
HOUSE BILL No. 294

Introduced by

ACT Teachers Party-List Rep. ANTONIO L. TINIO
and KABATAAN Party-List Rep. RENEE LOUISE M. CO

AN ACT

SETTING ASIDE AN AMOUNT EQUIVALENT TO AT LEAST SIX

PERCENT OF THE GROSS DOMESTIC PRODUCT FOR THE ANNUAL
BUDGET OF THE DEPARTMENT OF EDUCATION, STATE
UNIVERSITIES AND COLLEGES, TECHNICAL EDUCATION AND SKILLS
DEVELOPMENT AUTHORITY, AND OTHER AGENCIES AND

INSTRUMENTALITIES WITH MANDATES DIRECTLY RELATED TO

EDUCATION, AND ENSURING TO EDUCATION THE HIGHEST

BUDGETARY PRIORITY

Be it enacted by the Senate and the House of Representatives of the Philippines
assembled.

SECTION 1. Short Title. This Act shall be known as the “Education as Priority in
the National Appropriations Act (EDNA Act).”

SEC. 2. Declaration of State Policy. The policy of the State to assign the highest
budgetary priority to education—enshrined in Section 5(5) of Article XIV—is hereby
recognized, affirmed, and implemented

SEC. 3. Coverage. This Act shall cover all annual national appropriations laws to be
henceforth prepared, legislated, and executed,

SEC. 4. Minimum National Budget for Education. Annual national appropriations for
the Department of Education, State Universities and Colleges. Technical Education and
Skills Development Authority, and other agencies and instrumentalities having
mandates directly related to education shall be equivalent to at least six (6) percent of
the gross domestic product (GDP), as per UNESCO standards.


SEC. 5. Highest Budgetary Allocation to Education. Congress shall ensure that the
education sector receives the highest allocation in the national budget as enacted in
annual general appropriations.

SEC. 6. Implementing Rules and Regulations. The Department of Finance and the
Department of Budget and Management shall promulgate the rules and regulations
necessary to implement this Act not later than ninety (90) days from its effectivity.

SEC. 7. Separability Clause. If any part or provision of this Act is held
unconstitutional or invalid, the other parts or provision hereof which are not affected
thereby shall continue to be in full force and effect.

SEC. 8. Repealing Clause. All laws, decrees, executive orders, proclamations, rules
and regulations, and other issuances, or parts thereof which are inconsistent with the
provisions of this Act, are hereby repealed or modified accordingly.

SEC. 9. Effectivity Clause. This Act shall take effect upon its publication in at least

two (2) national newspapers of general circulation.

Approved,