Budget for the Shared Service Facilities (SSF) program is back on the National Expenditure Program (NEP) for 2017 under its implementing agency, the Department of Trade and Industry (DTI).
In a previous interview, Trade Undersecretary Zenaida C. Maglaya said the agency targets the reestablishment of budget for the SSF program for maintenance and upgrading of the existing projects.
The DTI eyed a P700-million allocation for SSF next year, the same annual budget it was allotted to in 2013 and 2014.
However, the Department of Budget and Management (DBM) only appropriated P70 million for the SSF program next year, or only 10 percent of the target funding.
“The P70 million appropriated herein for the implementation of Shared Service Facilities shall be used for projects that aim to improve the quality and productivity of micro, small, and medium enterprises [MSMEs] and the establishment of business resource centers,” the 2017 NEP read.
“Its implementation shall be primarily based on priority industry clusters identified by the DTI in consultation with key stakeholders,” it added.
Since only 10 percent of the requested budget was approved, the NEP noted that the co-operators of the existing SSF projects should shoulder the maintenance and repair costs.
“Upon the procurement of the equipment for the SSF, the DTI shall turn over the management thereof to the co-operators, which shall commit to shoulder maintenance and repair costs upon acceptance thereof,” the document stated.
“After the period of two years, the DTI shall transfer ownership of the SSF to the co-operators that demonstrated successful management of the facilities,” it said.
Since 2015, no budget was allocated for the SSF, as the program is intended to be funded from 2013 to 2014.
As of April 2016, some 1,886 SSF projects were established.
The DTI targets to end the year with more than 2,000 SSF projects nationwide utilizing funds from 2013 and 2014.