THE Department of Budget and Management (DBM) on Tuesday submitted to the House of Representatives a “no fat, boneless and pure meat” P4.1-trillion National Expenditure Program (NEP) for 2020.
In his budget message submitted by Budget Secretary Wendel E. Avisado, President Duterte said the government aims to achieve growth targets through investments in priority programs, including infrastructure and social services.
The 2020 national budget of P4.1 trillion, which is cash-based, is 11.8 percent more than the 2019 budget and will constitute 19.4 percent of the country’s GDP.
“This journey into the second and final half of the administration will be fueled by the 2020 national budget. It is the financial program that will ensure that our nation stays the course and moves forward toward its aspired-for destination,” the President said.
Social services will receive the largest chunk of the budget at P1.5 trillion, or 37.2 percent of the total, followed by economic services, which will get P1.18 trillion, or a 28.9-percent share. General public services will receive P734.5 billion; debt burden, P451 billion; and defense, P195.6 billion.
The President said the government will maintain a “manageable” deficit of 3.2 percent of GDP.
For next year, President Duterte said the government will sustain the momentum of rising revenue collection by pursuing the Comprehensive Tax Reform Program.
Duterte also expressed confidence that the country’s fiscal program will support the target growth of 6.5 percent to 7.5 percent for 2020.
Revenue collections are expected to reach P3.536 trillion in 2020, 12.3 percent higher that this year’s targeted level of P3.1 trillion. This will fund 83.9 percent of programmed disbursements for 2020.
Earlier, the leadership of the lower chamber said the Executive branch and Congress have agreed to pass revenue-generating measures first before approving the 2020 national budget.
The President also said total gross borrowings for 2020 will amount to P1.4 trillion.
“With a borrowing mix policy of 75:25 in favor of domestic sources, P1.047 trillion will be sourced locally while the remaining P353.2 billion will come from abroad,” he said.
Of the total gross borrowings for next year, Duterte said P677.6 billion will plug the deficit.
The top 10 agencies that will get the biggest allocations next year are Department of Education, P673 billion; Department of Public Works and Highways, P534 billion; Department of the Interior and Local Government, P238 billion; Department of Social Welfare and Development, P195 billion; Department of National Defense, P189 billion; Department of Health, P166.5 billion; Department of Transportation, P147 billion; Department of Agriculture, P56.8 billion; the Judiciary, P38.7 billion; and Department of Environment and Natural Resources, P26.4 billion.
Laws to be funded
Avisado said the 2020 NEP will also finance the implementation of the administration’s priority measures and programs.
These include the Universal Health Care (UHC) Act, institutionalization of the Pantawid Pamilyang Pilipino Program (4Ps), smooth transition to the Bangsamoro Autonomous Region in Muslim Mindanao, implementation of the Rice Liberalization Act, creation of the Department for Human Settlements and Urban Development, and the National Task Force to End Local Communist Armed Conflict.
In view of the full implementation of the UHC Act in 2020, Avisado said the UHC program is allocated P166.5 billion.
“Some P67.4 billion is allocated for the National Health Insurance Program [NHIP] of the Philippine Health Insurance Corporation [PHIC], while P92.2 billion is set for the Department of Health. Additionally, P7 billion is earmarked for the Human Resources for Health Deployment Program, under the DOH Miscellaneous Personnel Benefits Fund,” he added.
Following the implementation of the 4Ps Act, Avisado said P108.8 billion is allocated for the conditional cash transfer program.
“Starting 2020, the health and nutrition cash grants of qualified households will increase from P500 to P750 every month, to accommodate the rise in prices. At the same time, the educational cash grants will increase from P500 to P700 for every child enrolled in senior high school,” he said.
Pursuant to the Bangsamoro Organic Law, Avisado said P70.6 billion is allocated for the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM).
“Of the amount, P63.6 billion is for the annual block grant, P5 billion is for the special development fund, and P2 billion is for the BARMM’s share in the national taxes,” he added.
Avisado also said Republic Act (RA) 11203, otherwise known as the Rice Liberalization Act, mandates the creation of the Rice Competitiveness Enhancement Fund (RCEF).
He said the RCEF, which aims to provide assistance to farmers, cooperatives, and associations who will be adversely affected by the influx of imported rice due to the liberalization of the rice sector, has been provided P10 billion for 2020.
Following the enactment of RA 11201, or the Department of Human Settlements and Urban Development (DHSUD) Act, Avisado said the 2020 budget includes an allocation of P641.6 million to support the initial operations of the agency.
“Pursuant to Executive Order 70, s. 2018, on the Whole-of-Nation Approach in Attaining Inclusive and Sustainable Peace, P622.3 million is allocated for the National Task Force to End Local Communist Armed Conflict (NTF-ELCAC),” he said.
“I may be your new budget secretary, but I assure you that the priorities of the national budget remain to be consistent with our development objectives. Hence, the 2020 NEP will sustain the tremendous progress we have made as a nation under the strong and capable leadership of the President,” Avisado added.
Pork barrel
Speaker Alan Peter Cayetano said the unconstitutional pork barrel “will be a thing of the past.”
Cayetano said during the budget deliberations that the public can expect a “less tedious” budget as talks will veer away from parochial concerns.
“Parochial concerns are important. But the reason why there will be less in this budget hearing is because we will have constant interaction with the departments and this budget that they have submitted already contains many of the answers to the parochial concerns,” he said.
Cayetano also said he will not tolerate the so-called parking of funds in the proposed 2020 national budget.
In the 17th Congress, lawmakers reportedly parked at least P300 million in infrastructure projects in the 2019 national budget. The “parking of budget” is a new scheme purportedly hatched by some lawmakers to earn commissions.
Majority Leader Martin Romualdez said the lower chamber is committed to pass a “constitutionally compliant” national budget.
“We will comply with the Supreme Court ruling that outlawed any form of pork barrel. Definitely, the pork barrel system is a thing of the past,” said Romualdez.
Also, Romualdez said line item budgeting system will be strictly observed to ensure transparency and accountability in the disbursement of public funds.
House Committee on Ways and Means Chairman Joey Salceda said social services accounted for almost all of the increase in noninterest expenditures, saying the 2020 budget is “no fat, boneless, [and] pure meat.”
Per the committee’s schedule, the budget hearings will kick off on Thursday, August 22. House Committee on Appropriations Chairman Isidro Ungab said the target date for the passage of the General Appropriations Bill is on October 4, before the congressional recess.
Image credits: Nonie Reyes