THE Duterte administration on Monday submitted a P3.35 trillion budget proposal for 2017 to Congress to fund its expanded spending priorities, with the biggest chunk of the budget going to constructing or repairing railways, seaports, airports and road networks; building more classrooms; and modernizing the police and the military.
The 2017 spending plan is 11.6 percent higher than the P3.018 trillion 2016 budget proposed by the Aquino administration.
Some 40 percent of the proposed budget will go to education, health care, social welfare and other social services, while 27.6 percent will go to economic services such as repairing infrastructure, boosting agricultural and rural production, and generating more jobs and livelihood opportunities. Some 22 percent is allotted to general public services and defense, while about 10 percent will go to debt servicing.
Education will have the biggest chunk of the budget, with an allocation of P699.95 billion, or 20.9 percent of the total spending plan. The Department of Education will get P570.4 billion, a 31 percent hike from its 2016 allocation, and will include a P2.8 billion allotment for hiring 53,831 additional teachers and P124.6 billion for the construction and replacement of 37,500 classrooms, particularly for Senior High School.
“If we are to compete with the rest of the world, then the government must invest more for its greatest resource–its people,” Duterte said.
To address the country’s inadequate infrastructure, the budget for the Department of Public Works and Highways (DPWH) will be increased to P860.7 billion, P19.5 billion higher than its allocation this year, and equivalent to 5.4 percent of gross domestic product (GDP) to bring the country at par with its neighbors.
Some P355.7 billion will be allocated to transport infrastructure such as railways, seaports, airports and road networks. Some P31.5 billion will be set aside for the Mindanao Logistics Infrastructure network to lower the cost of logistics in the region, while P75.8 billion will fund flood control systems such as the Manila Core Drainage Project and the Mindanao River Basin Flood Control Projects.
The administration also promised to revitalize public-private partnership projects.
In his budget message, Duterte said he will not limit the administration to solicited PPP projects, but also to allow the private sector “to propose innovative and viable projects outside our pipeline.”
“We will also invite the private sector to help with the operation and maintenance of infrastructure facilities after the government constructs them,” Duterte said.
The Department of Interior and Local Government will receive the third highest budget allocation, with P150.05 billion. Some P552.7 billion will be allocated to local government units (LGUs) with P486.9 billion of that coming automatically from their internal revenue allotments (IRA).
The Philippine National Police, which is under the supervision of the DILG, will get an increased budget of P110.4 billion to fill up 10,000 police officer positions and to fund its capability enhancement program, which includes the acquisition of more guns and patrol vehicles.
The Department of National Defense (DND) will get the fourth highest budget appropriation with P134.5 billion, including P130.6 billion to the Armed Forces of the Philippines (AFP) to intensify its counter-terrorism efforts and protect the national borders.
The Revised AFP Modernization Program will have P25 billion to give soldiers more weapons and equipment.
In his budget message, Duterte promised to increase the salaries of policemen, soldiers, and other uniformed personnel.
“I will fulfill that promise. We will pursue a law that increases the base pay of uniformed personnel but reforms the pension system of retirees,” he said.
The budget for the Department of Social Welfare and Development (DSWD) will be increased to P129.9 billion, which includes provisions for a P17.9 billion social pension for all indigent senior citizens; P78.7 billion to fund the Conditional Cash Transfer program, with a P23.4 billion rice allowance for 3 million eligible household beneficiaries; and P9.6 billion to fund the Sustainable Livelihood Program, estimated to benefit about 381,978 families.
The Department of Health (DOH)’s budget will be expanded to P151.5 billion from the 2016 level of P132.7 billion, with P94.0 billion to be used by to sustain the implementation of the Universal Health Care Program; P50.2 billion to fund the health insurance of 15.4 million families, 5.4 million senior citizens, and 48,221 rebel returnees; P7.0 billion to hire 435 doctors, 15,321 nurses, 3,100 midwives, and 243 dentists; P4.3 billion to support the implementation of the Responsible Parenthood and Reproductive Health Law; and P21.9 billion to fund health facilities such as the construction and rehabilitation of 58 DOH hospitals and 16 drug abuse treatment and rehabilitation centers.
Funding for state universities and colleges (SUCs) will be increased by P58.8 billion, 18.4 percent higher than its 2016 allocation, with the Commission on Higher Education (CHED) receiving P134 billion to fund the expanded scope of its student financial programs and to improve the K-to-12 transition program.
The Technical Education and Skills Development Authority (TESDA) will get P6.9 billion to support 293,333 enrollees, particularly for Training-for-Work scholarships.
To ensure food security and equitable growth, particularly in rural areas, the government will allocate P120.5 billion for the agriculture and agrarian reform, with the Department of Agriculture receiving P45.3 billion to fund its programs for rice, corn, high value crops, fisheries and livestock. Some P7.1 billion will go to repairing, rehabilitating and building farm-to-market roads in designated production areas.
The National Irrigation Authority (NIA)] will be allotted a total of P36.34 billion, with P26.8 billion of that amount will be used to construct, expand, and rehabilitate irrigation systems.
Duterte has ordered the DA to build an updated National Soil Sample database.
To address housing needs, P12.6 billion will be allocated to the National Housing Authority to relocate squatters from danger zones and those affected by infrastructure projects, P1.7 B will be given to the Socialized Housing Finance Corporation and the National home Mortgage Finance Corportation (Pag-ibig) to aid in providing socialized housing and P7.3 B will help the Department of Transportation (DoTr) resettle informal settlers affected by the North-South Railway Project.
The newly created Department of Information and Communications Technology (DICT) will get a budget of P3.56 billion to address ICT matters, including internet speed, electronic-related crimes, mainstream ICT in schools and manpower development programs.
The Department of Science and Technology will be allocated P20.8 billion, which is 14.2 percent higher than its budget this year. Among the projects to be funded is the modernization of the country’s weather forecasting capabilities.
A total of P5.6 billion will be allocated to the Department of Energy (DoE) for electrification of 190,600 households in off-grid and on-grid areas, with P 1.8 billion will be provided to the National Electrification Administration for the electrification of 2,410 sitios and 72,300 households; and P2.8 billion to the National Power Corporation for the construction of transmission lines and substations, repair and maintenance of generating assets in off-grid areas.
To unclog courts and hasten the resolution cases, the budget of the judiciary will be increased to P32.5 billion and provide additional funding for the construction of more Halls of Justice, implementing the Enterprise Information System and providing additional funds for the lower courts.
The budget of the Department of Justice will also be increased to P16 billion for the sustenance of the Public Attorney’s Office, investigation efforts of the National Bureau of Investigation and streamlining the processing of NBI clearances.
The Office of the Ombudsman will be allocated P817 million to sustain the administration’s anti-drug efforts.
Duterte also has an allocation of P16.7 billion for performance-based bonuses.
The Department of Environment and Natural Resources (DENR) will be given P 29.4 billion to help build back forests, reduce climate risks, and protect the environment, while the Department of Tourism (DOT) will be given P2.4 billion to create more tourism-based jobs.
Some P37.3 billion will be allocated to disaster risk reduction, including P10 billion for quick response funds and P1 billion for a People’s Survival Fund.
In his message, Duterte also asked Congress to file his proposed Budget Reform Act to modernize the country’s Public Financial Management (PFM) reforms and “immediately pass the long-overdue FOI (freedom of information) law” for all branches of the government.
Budget Secretary Benjamin Diokno earlier said that the Duterte administration will be consistent in strengthening Congress’ power of the purse.
Duterte also asked Congress “to downsize and eliminate redundant, duplicate and overlapping functions… in the Executive branch.”
Dutere said his tax reform package would make the current system of taxation equitable, and lower income tax rates from 32 percent and 30 percent to 25 percent.
To compensate for forgone revenues, the administration plans to remove VAT exemptions from 30 products and services and increase the tax on fuel. It will also rationalize fiscal incentives.
Congress will get an allocation of P14.12 billion, while the Office of the President will get P20 billion. The Office of the Vice President will get P433.54 million, while the Department of Budget and Management will get P1.47 billion.
The Department of Finance will be allotted P22.96 billion, the Department of Trade and Industry, P4.91 billion; the Department of Transportation, P55.48 billion; the National Economic and Development Authority, P5.32 billion; the Presidential Communications Office, P1.25 billion; and the Autonomous Region in Muslim Mindanao, P41.78 billion.
Diokno described the 2017 spending plan as “a budget for real change.”
“We have proposed that P355.7 billion of the budget for infrastructure be spent for fixing and building road networks, railways, seaports systems, and airport systems. The infrastructure outlays in 2017 is equivalent to 5.4 percent of the [Gross Domestic Product]. This would eventually make the Philippines at par with its ASEAN neighbors by the end of this administration,” Diokno said.
The national government budget deficit next year is expected at 3 percent of GDP or P478.1 billion. This funding shortfall will be funded through borrowings. The total borrowings in 2017 will reach P631.3 billion.
The GDP is expected to grow by 6.5 to 7.5 percent in 2017 through sustained expansion of the services and industry sectors, and the expected rebound of the agriculture sector.
For his part, Davao City Rep. Karlo Alexei Nograles, chairman of the House committee on appropriations, said, “We expect more programs of government that will be responsive to the needs of our people, particularly the masses who elected our President with an overwhelming mandate.”
“The House of Representatives will not falter in its role of enacting a 2017 budget on time,” he said.
Senate Minority Leader Ralph Recto, meanwhile, urged Malacañang to itemize in the proposed 2017 national budget the rograms and projects that it plans to implement pursuant to the grant by Congress of emergency powers to President Duterte to solve the transportation crisis.
“Listing them in the budget is the best response to the Senate challenge that the projects must be ‘FOI-compliant’ and ‘fiscally responsible,’ ” Recto said.
“Itemization also answers the need for the Palace to provide the details of the projects that it plans to carry out in a speedy manner that the emergency powers sought would allow,” he added. – With Macon Ramos-Araneta