The Department of Budget and Management (DBM) yesterday said a total of P1.2 billion has been allocated to fund various government programs to boost micro, small and medium enterprises (MSMEs) under the 2023 General Appropriations Act (GAA).
These programs are part of the MSME Development Plan and other initiatives of the Department of Trade and Industry to promote the growth of MSMEs; establishment of negosyo centers; One Town One Product (OTOP) Next Gen; and shared service facilities (SSF).
“MSMEs serve as the building blocks of the economy. Because of this, the government is doing its best to strengthen MSMEs and to support them in their recovery, especially from the challenges that hindered their growth, such as the pandemic,” Budget Secretary Amenah Pangandaman said.
Under the 2023 GAA, some P583 million is allocated for the implementation of the MSME Development Plan and similar government programs.
Around P487 million will also help establish Negosyo Centers, which are MSME-support office of the government that operate to promote ease of doing business and facilitate access to services for MSMEs. Negosyo Centers are established in all provinces, cities and municipalities.
The OTOP Next Gen — a program that assists MSMEs in product development initiatives, training, referral, among others, to level up the products in design, quality and volume — will receive P97 million.
The OTOP program enables localities and communities to determine, develop, support and promote products or services that are rooted in their respective local cultures, community resources, creativity, connection and competitive advantages.
Meanwhile, the SSFs will get P80 million, of which P70 million will be used to finance maintenance and other operating expenses and the remaining P10 million to fund capital outlays.
The SSFs give MSMEs access to sophisticated machines and equipment towards improving the quality of their products, increase their production capacity, accelerate their competitiveness and expand their businesses.
