Marcos seeks P5.29T national budget for 2023

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BY ANGELA CELIS, JOCELYN MONTEMAYOR and WENDELL VIGILIA

THE Department of Budget and Management (DBM) yesterday asked Congress to approve the proposed P5.268 trillion national budget for 2023, the first full-year budget of the administration of President Marcos Jr.

The proposed National Expenditure Program is 4.9 percent higher than this year’s national budget.

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The 2023 NEP was submitted to House Speaker Martin Romualdez yesterday morning.

In receiving the budget proposal, the Speaker was accompanied by majority leader Manuel Jose Dalipe, minority leader Marcelino Libanan, committee on appropriations chair Rep. Elizalde Co (PL, Ako Bicol) and his senior vice chair, Marikina Rep. Stella Luz A. Quimbo.

In a statement, Budget Secretary Amenah Pangandaman said education, infrastructure, food security, healthcare and clean energy will be the top priority in the 2023 budget.

“Our budget for FY 2023 is proactive and resilient. It is designed to withstand future risks, challenges, and shocks. Filipinos have bravely faced disasters and crises in recent years and notwithstanding the uncertainties, we have witnessed the strength of our economy and the resilience of our countrymen as seen by the country’s economic expansion,” Pangandaman said.

In his 52-page budget message, Marcos said the P5.268 trillion budget that his administration is seeking for 2023 would help ensure the country’s continued economic recovery and prosperity, as well as sustain the government’s fight against the coronavirus disease (COVID-19).

He said that if approved, the 2023 national budget would help ensure that the country’s “Agenda for Prosperity” to achieve the administration’s medium-term macroeconomic and fiscal objectives will be realized.

“We will see the Philippines as the land of prosperity that it was destined to be. The formula for prosperity is simple: increase productivity with the overriding commitment to leave no Filipino behind, including Filipinos of the next generation. Let us not waste more time in turning this dream into a reality. This is our moment,” he said.

Marcos acknowledged the challenges brought about by the COVID-19 pandemic and international conflicts but expressed optimism that the country will be able to surpass them.

“I have faith in the Filipino people. I know that the strength of the Filipino is beyond resilience. We will emerge from these crises stronger and better. We will see the Philippines as the land of prosperity that it was destined to be,” he said.

He also promised that Filipinos will feel the impact of the economic transformation that his administration intends to make, including reaching a 6.5 to 7.5 percent real gross domestic product (GDP) growth by the end of 2022, and a 6.5 to 8.0 percent real GDP growth annually between 2023 to 2028; reducing the poverty rate to 9.0 percent or a single-digit; and a 3.0 percent National Government (NG) deficit-to-GDP ratio by 2028.

The government also aims to lower the debt-to-GDP ratio from 61.8 percent in 2023 to 60 percent by 2025 and 51.1 percent by 2028, increase revenues to 17.6 percent by 2028, and lower inflation to 2.5 to 4.5 percent by 2023 and between 2 to 4 percent by 2024 to 2028.

The President said: “These are the measurable medium-term macroeconomic and fiscal objectives stipulated in this administration’s Medium-Term Fiscal Framework (MTFF).”

Romualdez said the House is “eyeing the third and final reading approval of next year’s national budget before October 1.”

2023 BUDGET ALLOCATION

The education sector, which is composed of the Department of Education (DepEd), State Universities and Colleges (SUCs), Commission on Higher Education (CHED), and Technical Education and Skills Development Authority (TESDA) will receive an 8.2 percent increase next year at P852.8 billion and will remain as the highest budgetary priority as mandated by the Constitution.

The budget of DepEd was increased from P633.3 billion in 2022 to P710.6 billion in 2023.

On the other hand, a total of P1.196 trillion has been allocated for the government’s 2023 infrastructure programs.

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The Department of Public Works and Highway will receive a P718.4 budget in 2023, while the Department of Transportation was earmarked P167.1 billion or an increase by 120.4 percent from its P75.8 billion budget in 2022, which covers the augmented funding requirements for various foreign-assisted railway projects.

Major transportation infrastructure projects that will be implemented include the North-South Commuter Railway, the Metro Manila Subway Phase 1, the LRT-1 Cavite Extension, and the PNR South Long Haul.

In a bid to ramp up vaccination efforts and the uptake of boosters for vulnerable population while strengthening the country’s health system through improvement of health facilities and services, the government’s health sector shall receive a 10.4 percent budget increase at P296.3 billion in 2023, inclusive of the budgets of the Department of Health and the Philippine Health Insurance Corporation.

Pangandaman noted that around P29 billion has been allocated to purchase drugs, medicine, and vaccines while more than P19 billion has been allocated for the salary and benefits of healthcare workers.

Meanwhile, P23 billion has been allotted for the Health Facilities Enhancement Program (HFEP), which will fund the purchase of medical equipment as well as the construction, rehabilitation and upgrading of barangay health stations, rural health units, polyclinics, LGU hospitals, DOH hospital, and other various health facilities nationwide.

To improve the performance of the agriculture sector, the budget of the Department of Agriculture (DA), its attached corporations, and the Department of Agrarian Reform will be P184.1 billion, a 39.2 percent increase from its 2022 allocation, which includes P29.5 billion for irrigation services.

“In support of the mandate of our President, and in anticipation of a global food crisis and for the long-term goal of food self-sufficiency, we increased the budget of the Department of Agriculture by 43.9 percent, to cover the funding requirements for its programs and projects,” Pangandaman said.

To address the needs of the marginalized and vulnerable sectors of society, the Department of Social Welfare and Development was allocated with a P197 billion budget in 2023. The government shall likewise continue to fully support the Pantawid Pamilyang Pilipino Program (4Ps), the Social Pension for Indigent Senior Citizens, Protective Services for Individuals and Families in Difficult Circumstances, Sustainable Livelihood Program, and the Supplementary Feeding Program.

P18.4 billion of the total P26.2 billion budget for the Department of Labor and Employment will be used to implement its Livelihood and Emergency Employment Program to help beneficiaries recover from the economic displacement caused by the pandemic, including the Tulong Panghanapbuhay sa Ating Disadvantaged/Displaced Workers (TUPAD), DOLE Integrated Livelihood Program, among others.

Other allocations include the P15.2 billion for the Department of Migrant Workers (DMW), P12.1 billion for the Department of Information and Communications Technology (DICT), P24.1 billion for the Department of Natural Resources and Environment (DENR), and P453.1 billion for “climate change expenditures” such as projects for sustainable energy and environmental stability.

Local government units (LGUs) will also receive P962.2 billion or 18.3 percent of the proposed budget, while P582.3 billion, or 11.1 percent, will be used to pay for obligations to the government’s creditors.

The government is also setting aside P1.5 billion for the national broadband plan to improve internet speed and affordability, P2.5 billion for the free wi-fi connectivity in public places and state universities and colleges, and P149 million to strengthen the anti-red tape and enforcement ease of doing business program.

‘UNPROGRAMED’

Under the proposed expenditure program. the budget for the procurement of COVID-19 vaccines worth at least P20 billion will only be funded next year if the government will manage to collect enough revenues.

In a press briefing after the 2023 NEP was submitted, Undersecretary Tina Rose Marie Canda said the budget for new COVID vaccines, which includes booster shots, was placed under the “unprogrammed funds” because “we still have vaccines in inventory.”

“But once (the Department of Health) says we need reformative vaccines, we have sufficient cover under unprogrammed funds. It’s around P20 plus billion,” Canda said.

Sen. Risa Hontiveros has earlier sought an investigation, in aid of legislation, into the unused and expired vaccines, to find out the extent of vaccine wastage in the country where many people are still having second thoughts about receiving their first shots and booster shots.

Former presidential adviser for entrepreneurship and Go Negosyo founder Jose Maria “Joey” Concepcion III has said that P5.1 billion worth of vaccines expired in July.

The first proposed budget of the Marcos administration also has not set aside funds for the P500 increase in the social pension of indigent senior citizens, which, according to Canda, is worth at least P24.5 billion.

Canda said the budget was not included in the NEP because the bill providing for the additional pension lapsed into law last just August 2 after the budget proposal has already been completed.

“So we did not include that,” said Canda of the measure increasing the poor senior citizens’ monthly pension to P1,000. “We would like the wisdom of Congress on this.”

Canda said the DBM will work with Congress to remedy the situation through budgetary realignments by “providing them (lawmakers) with utilization rates of various agencies so they may at least know where it can be sourced.”

RED-TAGGING BUDGET?

Under the proposed 2023 budget, the administration has almost doubled the National Task Force to End Local Communist Armed Conflict’s (NTF-ELCAC) proposed budget for its Barangay Development Program (BDP), from P5.62 billion to P10 billion.

Last year, Makabayan bloc lawmakers said the BDP is just another form of lump sum pork barrel which is prone to misuse and abuse as they demanded the Department of Interior and Local Government to itemize the funds and provide a list of the 1,400 barangays that have been identified as recipients of P20 million each for development projects.

The NTF-ELCAC’s budget this year is P17.1 billion.

Pangandaman said the BDP budget is part of the P28.9 billion budget for local government support fund which also has a growth equity fund to help fourth to sixth level municipalities and barangays and another P5 billion financial assistance to LGUs.

“Kasama po sa budget ng local government support fund po ‘yong pondo po natin for support for barangay development program ng National Task Force to End Local Communist Armed Conflict, ito po ‘yong ELCAC (The funds for the support for barangay development program under the National Task Force to End Local Communist Armed Conflict or the ELCAC is included in the budget of the local government support fund,” she said.

The budget secretary, however, admitted that the NTF-ELCAC has not yet given a list of the BDP budget recipients “subject to guidelines of the DILG and the National Security Agency.”

Romualdez said the House is “eyeing the third and final reading approval of next year’s national budget before October 1.”

Deputy speaker Ralph Recto said that if the thrust of this budget is recovery from the pandemic, “then how fast our recovery is will depend to a large extent on how fast we spend the budget.”

“There should be no repeat of last year’s budget utilization rate, when P784.8 billion remained undisbursed by end of the year, on top of P88.8 billion in unreleased appropriations,” Recto said.

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