AlexF.

Gurimbao II

BSAT-IV

Year 2019 issues

Articles

Reuters

FRI FEB 8, 2019 / 8:51 AM EST

Philippine Congress approves $72.15 billion national budget for 2019

(Reuters) - The Philippine Congress on Friday approved and ratified the nation's 3.757 trillion pesos
($72.15 billion) budget for 2019, ending weeks of impasse and allowing the government to spend on
infrastructure projects to boost the economy.

President Rodrigo Duterte has pledged to usher in the "golden age of infrastructure" and lift economic
growth in the country of more than 100 million people.

The 2019 budget, the third under Duterte's presidency, will bankroll the construction and expansion of
roads, bridges, railways and airports.

This year's budget "lays the foundation for an inclusive growth and sustainable development",
presidential spokesman Salvador Panelo said in a statement.

Key budget priorities include infrastructure development, poverty reduction and social services, he
added. The ministries of education, public works and interior will secure the most funds for this year.

The government is shifting to an annual cash-based budgeting system wherein all government projects
budgeted should be delivered within the same fiscal year. The country operated on a 3.767 trillion pesos
budget last year that carries a two-year validity for allocations.

The budget will need signing by the president, who could still veto several items. Congress will go on a
14-week break starting Feb. 9 to give way to mid-term elections, which is seen as a referendum on the
Philippine president's policies.

The Southeast Asian nation has been operating on a re-enacted budget since the start of the year
because of the delay in budget approval, preventing the government from spending on new projects.

Approving the budget took time as lawmakers initially opposed a cash-based budget system and
scrutinized what some lawmakers said was funding for pet projects.

The government aims to lift economic growth to between 7-8 percent this year after it missed the
previous year's downwardly revised goal of 6.5-6.9 percent.
The Philippine leader pledged to spend $180 billion on infrastructure to create jobs and attract foreign
investors turned off by high power prices and transport bottlenecks.

(Reporting by Neil Jerome Morales; Editing by Alison Williams)

INQUIRER.NET

DBM issues rules to implement delayed 2019 national budget

By: Ben O. de Vera - 2 years ago

MANILA, Philippines — After over four months of delay, the government is now spending the P3.7-
trillion 2019 national budget as the Department of Budget and Management (DBM) now issued the
implementing guidelines for the release of funds.

National Budget Circular No. 577 issued by DBM Officer-in-Charge Janet B. Abuel on May 2 contained
the procedural guidelines on how funds released and utilized under the reenacted 2018 budget during
the first four and a half months will be treated now that the fiscal year 2019 General Appropriations Act
(GAA) under Republic Act (RA) No. 11260 had taken effect.

After squabbles among legislators for “pork” funds delayed the approval of the 2019 GAA, President
Rodrigo Duterte finally signed on April 15 the national spending measure for this year – even as he
vetoed P95.3 billion in projects that were not included in his administration’s priorities.

Under the circular, DBM said that “all unutilized allotments of agencies as of April 30 chargeable against
the fiscal year 2018 GAA (RA 10964) as reenacted, shall no longer be available for obligation.”

DBM earlier reported that it released only P1.323 trillion from the reenacted budget between January
and April, less than half of the P3.265 trillion in allotment releases during the first four months of last
year.

As for all appropriations under the 2019 budget and other programmed automatic appropriations, DBM
said these “shall be valid for release and obligation for the purpose specified until Dec. 31, 2019.”

“This validity shall be subject to the pertinent special and general provisions of said GAA, the President’s
veto message on the implementation of cash budgeting, as well as other pertinent laws,” it added.

This, even as the state planning agency National Economic and Development Authority (Neda) had
asked DBM to extend the validity of the 2019 budget as agencies were unable to spend programmed
appropriations on time.

DBM issues rules to implement delayed 2019 national budget

By: Ben O. de Vera - 2 years ago

MANILA, Philippines — After over four months of delay, the government is now spending the P3.7-
trillion 2019 national budget as the Department of Budget and Management (DBM) now issued the
implementing guidelines for the release of funds.

National Budget Circular No. 577 issued by DBM Officer-in-Charge Janet B. Abuel on May 2 contained
the procedural guidelines on how funds released and utilized under the reenacted 2018 budget during
the first four and a half months will be treated now that the fiscal year 2019 General Appropriations Act
(GAA) under Republic Act (RA) No. 11260 had taken effect.

After squabbles among legislators for “pork” funds delayed the approval of the 2019 GAA, President
Rodrigo Duterte finally signed on April 15 the national spending measure for this year – even as he
vetoed P95.3 billion in projects that were not included in his administration’s priorities.

Under the circular, DBM said that “all unutilized allotments of agencies as of April 30 chargeable against
the fiscal year 2018 GAA (RA 10964) as reenacted, shall no longer be available for obligation.”

DBM earlier reported that it released only P1.323 trillion from the reenacted budget between January
and April, less than half of the P3.265 trillion in allotment releases during the first four months of last
year.

As for all appropriations under the 2019 budget and other programmed automatic appropriations, DBM
said these “shall be valid for release and obligation for the purpose specified until Dec. 31, 2019.”

“This validity shall be subject to the pertinent special and general provisions of said GAA, the President’s
veto message on the implementation of cash budgeting, as well as other pertinent laws,” it added.

This, even as the state planning agency National Economic and Development Authority (Neda) had
asked DBM to extend the validity of the 2019 budget as agencies were unable to spend programmed
appropriations on time.

Socioeconomic Planning Secretary Ernesto M. Pernia had said: “While we support the implementation of
the cash-based budget system, the supervening circumstances – such as the delayed budget and the
election season – warrant an urgent review of the cash-based budgeting rules.”

“If the payment period and budget validity are not extended, government agencies may decide to forgo
implementing new programs and projects that are expected to take longer than seven months to
complete, inclusive of the procurement process,” he also said.

Pernia had recently reported that gross domestic product (GDP) growth slowed to a four-year low of 5.6
percent during the first quarter mainly due to government underspending on public goods and services
as a result of the budget impasse.

Neda had computed a faster GDP expansion of 6.6 percent had the 2019 budget been implemented on
time.
DBM said the allotment release program that will cover government operations this year will be capped
at P3.662 trillion, which included agencies’ respective budgets under the 2019 national budget as well as
automatic appropriations covering retirement and life insurance premiums.

Releases from unprogrammed appropriations and other automatic appropriations, meanwhile, will still
be accommodated within agencies’ allotment release programs but offset against the earlier identified
priority programs and projects under their respective budgets.

With respect to releases and obligation made from January to April under the reenacted budget, DBM
said these “shall not be considered as ‘add-ons’ to the fiscal year 2019 expenditure program.”

“These include special allotment release orders (Saros) issued from Jan. 3 to April 30, 2019 for agency
specific budgets charged against RA 10964 as reenacted,” DBM said.

To recall, DBM had said the following items cannot be covered by obligational authority, hence had been
issued Saro based on agencies’ special budget request: centrally-managed items chargeable against the
reenacted budget; charges against pension and gratuity fund; as well as charges against other special
purpose funds such as budgetary support to government corporations, miscellaneous personnel
benefits fund, and contingent fund, among others.

According to DBM, “the consolidated list of obligations incurred (actual obligations for Jan. 1 to April 30,
2019) shall serve as the obligational authority covering the overdraft in allotments prior to the effectivity
of the fiscal year 2019 GAA.”

“Said overdraft in allotments shall be considered as advance releases to be offset against the
corresponding appropriations under the fiscal year 2019 GAA,” it added.

As such, “the balance of available programmed appropriations, as authorized under the fiscal year 2019
GAA, for the period May 1 to Dec. 31, 2019, is determined by deducting from the agency allotment
release program the amounts obligated for regular operating requirements for the period Jan. 3 to April
30, 2019,” DBM explained.

Included in the net program chargeable against the 2019 budget were obligations to be incurred by
agencies starting May 1; automatic appropriations under the fiscal year 2019 Budget of Expenditures
and Sources of Financing (BESF); unprogrammed appropriations under the 2019 GAA, when applicable;
as well as unreleased appropriations for maintenance and other operating expenses (MOOE) and capital
outlays (CO) under the reenacted budget through Saros, which were still available for release and
obligation until Dec. 31 under Congress Joint Resolution No. 3 issued on December 28, 2018.

this regard, Saros issued under the reenacted budget will no longer be valid for obligation beginning
May 1.

When agencies’ appropriations are found deficient, DBM said agencies can augment funds from their
savings – defined as “portions or balances of any released appropriations which have not been obligated
due to completion, final discontinuance, or abandonment of a program, activity or project for which the
appropriation is authorized, [as well as] implementation of measures resulting in improved systems and
efficiencies that enabled an agency to meet and deliver the required or planned targets, programs and
services approved in the 2019 GAA at a lesser cost.”

“In the use of savings, priority shall be given to the payment of compensation, yearend bonus and cash
gift, retirement gratuity, terminal leave benefits, old-age pension of veterans, and other personnel
benefits authorized by law and in the fiscal year 2019 GAA, as well as the implementation of priority
project or activity covered in the fiscal year 2019 GAA,” DBM said.

PHILSTARGLOBAL

Philstar.com

Commentary: The costs of budget delay in the Philippines

By Edwin Santiago(Philstar.com) - January 11, 2019 - 3:02pm

The United States government has been on a partial government shutdown for more than 10 days now.
By most accounts, some 800,000 federal employees are affected, either working without pay or placed
on furlough, a temporary leave.

This shutdown is a result of a political deadlock between President Donald Trump’s unflinching
insistence that Congress include in the budget a US$5.7-billion funding for a “border wall” that,
according to him, will block illegal immigration and illicit drugs. Congress thinks otherwise, with its
leadership describing the proposed wall as expensive and likely ineffective.

Back here at home, despite the delayed passing of the 2019 budget, there is no government shutdown.

By operation of law, the budget is rolled over from 2018, under the provisions of the Constitution.
Instead, for more than a week now since the start of the year, the Philippine government has been
operating on what is called a “reenacted budget.”

Since November, however, when delays in the House of Representatives raised the possibility of such a
scenario, there have been numerous discussions on and analyses of how the situation will affect us.

In a nutshell, while we are operating on a reenacted budget, there won’t be anything new – no new
projects, no expansion of programs and services, no new salary levels, etc. These pose very serious
effects on the national economy.

one – and, perhaps, the most serious implication – it weakens government spending that contributes to
the national income.

Using the reenacted budget, the level of state spending follows that of 2018, foregoing the spending
targets that would have supported our 2019 macroeconomic aspirations. Even assuming that the 2019
budget will get passed sometime in the first quarter of the year – by February, as some senators predict
– the serious damage would have been done already, as the government will have less than a year to
use these funds.

Making this delay even worse is the election ban on the release of public funds that begins on January
13 and ends on June 12. This wait brings the issue of the absorptive capacity to the fore. How fast, if at
all, can the government agencies translate their resources into programs and projects this year?

It is thus a given that there will be delayed implementation of new projects this year, but with our
bureaucratic process laden with CYA (cover your ass) steps that still needs to be played out, it is also a
very distinct possibility that some of them may not be implemented anymore, significantly reducing the
multiplier effect of state spending on the national income. When fewer projects are implemented, less
employment happens, contributing not only to less consumer spending – and therefore less national
income – but also in abetting poverty.

The possibility of a delayed and reenacted budget surfaced as early as August when the House of
Representatives suspended budget hearings in opposition to cash-based budgeting. Thereafter, it has
been one issue after another – from congressional “insertions,” misplaced allocations to favored
contractors – that had further stalled the process.

While it is indeed a spectacle to watch democracy at work – with the principles of checks and balances
and Congress’ power of the purse in the limelight, it may be good to ask at what cost are we doing all
these, and, more importantly, who is bearing the cost?

As Trump and the US Congress both remain unwilling to compromise on their respective positions, the
costs of their political drama rest with the federal employees who do not get their salaries, on their
families who will have to survive without the salaries of their breadwinners, on the American people in
general for the diminished or halted services, and on the economy for state underspending and its
macroeconomic effects.

PNA

Philippine News Agency

Duterte extends 2019 budget’s validity until 2020

By Ruth Abbey Gita-Carlos December 26, 2019, 10:09 am

MANILA – President Rodrigo Duterte has signed a law extending the availability of the 2019

budget until December 31, 2020, in a bid to allow the continuation of appropriations of funds for the
items included in this year’s spending plan.

Republic Act (RA) 11464, inked by Duterte on December 20, amends Section 65 of RA 11260 or the 2019
General Appropriations Act (GAA), which originally allows the spending of the budget only until
December 31 this year.
“All appropriations authorized in this Act shall be available for release and obligation for the purpose
specified, and under the same special provisions applicable thereto, until December 31, 2020,” RA 11464
read.

The national government had no choice but operate on a reenacted 2018 budget from January to mid-
April 2019 because Congress failed to pass this year's budget on time due to alleged insertions and
realignments made by some lawmakers.

As of September 4, around PHP3.491 trillion, or 95.3 percent of the PHP3.662-trillion 2019 budget has
already been released, the Budget department reported in October this year.

There are still at least PHP1.161-trillion unobligated funds under the 2019 GAA.

About PHP324.758 billion of the PHP1.161-trillion unobligated funds are for maintenance and other
operating expenses, while the remaining PHP339.53 billion are for capital outlays.

RA 11464 allows the use of this year’s unspent funds until the entire 2020.

“A report on these releases and obligations shall be submitted to the Speaker of the House of
Representatives, the President of the Senate of the Philippines, the House Committee on
Appropriations, and the Senate Committee on Finance, either in printed form or by way of electronic
document,” the newly-signed law read.

All laws, decrees, executive issuances, rules and regulations inconsistent with RA 11464 are hereby
“repealed or modified accordingly,” the law states.

RA 11464, which was released by Malacañang just on Thursday, takes effect 15 days after its publication
in the Official Gazette or in a newspaper of general circulation.

The law was signed, while the proposed PHP4.1-trillion national budget for 2020 was still under
thorough review by Duterte.

Presidential Spokesperson Salvador Panelo on Sunday could not say as to when the President will sign
the budget spending plan for next year.

The 2020 budget plan, which was ratified by Congress on Dec. 11, allegedly contains around 1,253
budget items amounting to PHP83.219 billion which serve as congressmen’s “source” of their “list” of
742 projects worth PHP16.342 billion, as earlier claimed by Senator Panfilo Lacson.

Last week, Lacson alleged the provinces that received the biggest share of the supposed insertions are
Albay (PHP670 million), Cavite (PHP580 million), Sorsogon (PHP570 million), Batangas (PHP502 million),
Bulacan (PHP440 million), Pangasinan (PHP420 million), and Cebu (PHP410 million).

Panelo ensured that the Chief Executive would wield his veto power to remove the funds inserted in the
proposed 2020 General Appropriations Act that will be found violative of the 1987 Constitution. (PNA)

Philstarglobal
Philstar.com

DBM issues guidelines on release of 2019 budget

By Mary Grace Padin(Philstar.com) - May 23, 2019 - 12:00am

MANILA, Philippines — The Department of Budget and Management (DBM) has issued the guidelines for
the release and utilization of the 2019 budget following the signing of the General Appropriations Act
(GAA).

DBM officer-in-charge Janet Abuel issued National Budget Circular 577 providing the policies relative to
the release of funds for fiscal year 2019.

It also prescribes guidelines on the treatment of fund releases and utilization prior to and after the
approval of the 2019 budget.

Under the circular, all unutilized allotments of line agencies as of April 30 chargeable against the 2018
GAA, as reenacted, will no longer be available for obligation.

The circular also states that all appropriations authorized under the 2019 GAA, as well as programmed
automatic appropriations, will be valid for release and obligation until Dec. 31, 2019, in line with the
cash-based budgeting system implemented by the government.

“The Allotment Release Program, or the allotments to be released to cover government operations in FY
2019, shall be limited to P3.662 trillion,” the DBM said.

Meanwhile, the circular states that amounts obligated by agencies for their operating requirements
from Jan. 3 to April 30, as charged against the 2019 reenacted budget, “shall not be considered as ‘add-
ons’ to the FY 2019 Expenditure Program.” These include Special Allotment Release Orders (SAROs)
during the period, the DBM said.

As such, the balance of available programmed appropriations, as authorized under the 2019 budget
from May 1 to Dec. 31, is determined by deducting from the agency allotments the amounts already
obligated in the first four months of the year.

This means the net program chargeable against the 2019 appropriations will only include obligations
starting May 1, automatic appropriations under the 2019 budget of expenditures and sources of
financing, unprogrammed appropriations under the 2019 GAA.

This also includes unreleased appropriations for maintenance and other operating expenses and capital
outlays under the 2018 GAA, which can still be released and obligated under Dec. 31.

Year 2020 issues

Articles
Rappler

2020 budget: Where will the money go?

JAN 8, 2020 1:53 PM PHT

AIKA REY

Most departments gain substantial increases in 2020's P4.1-trillion national budget, as the government
recuperates from the effects of the 4-month budget delay in 2019

AT A GLANCE

The education and infrastructure sector continued to receive the biggest chunk of the 2020 P4.1-trillion
national budget. The two sectors alone comprise more than a fourth of the fiscal plan.

Generally, most government agencies received budget hikes.

President Rodrigo Duterte's P4.5-billion confidential and intelligence funds was approved by lawmakers
without a hitch.

The Philippines needs to play catch-up, after the government operated under a reenacted budget for 4
months in 2019.

This will reflect on the priorities of the P4.1-trillion budget for 2020.

President Rodrigo Duterte signed Republic Act 11465 on Monday, January 6. The delay in the signing of
the budget bill prompted the government to operate under a reenacted budget again, but, according to
Budget Secretary Wendel Avisado, the weeklong delay wouldn't have much of an impact on operations.

The 2020 General Appropriations Act is P438 billion or 11.8% higher than the P3.662-trillion national
budget for 2019. It represents 19.4% of the country's projected gross domestic product this year.

Similar to budgets of previous years, the 2020 appropriations law prioritized education, infrastructure,
and interior affairs. The winner of them all, however, was the Department of Public Works and
Highways, as it gained the most funds compared to other agencies.

agencies

As usual, it's the Department of Education (DepEd), the Department of Public Works and Highways
(DPWH), and the Department of the Interior and Local Government (DILG) that received the biggest
allocations in the 2020 budget.

The education sector got P654.77 billion, a combined allocation from the DepEd and its attached
agencies (P521.35 billion), the State Universities and Colleges (P73.72 billion), and the Commission on
Higher Education (P46.73 billion).
It is followed by DPWH, the infrastructure arm of the government, with P580.89 billion. The education
and infrastructure sectors combined alreadyy amounted to more than a fourth of the fiscal plan.

Budgets for DILG and the Department of National Defense ranked a far 3rd and 4th from the first two
sectors. DILG's budget stands at P239.64, more than three-fourths of which (P187.33 billion) will go to
the Philippine National Police. Meanwhile, the budget for national defense is pegged at P191.74 billion.

Social services received a considerable amount in the budget as well, with the Department of Health
getting a combined allocation of P172.37 billion for the implementation of the Universal Health Care
law. DOH's actual budget is P101.02 billion while the Philippine Health Insurance Corporation's
(Philhealth) budget is P71.35 billion.

Winners

Generally, most government agencies received higher budgets in 2020, with the exception of the
Commission on Elections, DBM, Ombudsman, Department of Finance, and the Civil Service Commission.

It appeared that the DPWH was the winner among all departments, with over a billion increase from its
2019 budget. It is followed by the Department of Transportation with a budget hike of P31.73 billion,
bringing its total funds to P99.4 billion.

The Department of Social Welfare and Development received the 3rd highest increase at P22.65 billion.

Infrastructure

DPWH, the top gainer this year, has an approved appropriation of P580.89 billion for 2020. It's P116.33
billion (25%) higher than last year.

The multibillion increase may be traced back to the controversies hounding the 2019 budget.

When last year's budget was signed in April 2019, the President vetoed programs and projects worth
P95.3 billion under the budget of DPWH, which the senators alleged were insertions from the House of
Representatives at that time.

Over the course of the budget deliberations, House Speaker Alan Peter Cayetano said in September
2019 that the vetoed allocations in last year's budget may not be reinstated in the 2020 budget.

In late September 2019, the lower chamber passed their version of the budget bill with minimal
amendments, and took some P3.75 billion originally set for right-of-way funds under the DPWH.

But by the looks of it, the DPWH bounced back. The allocation for public works increased – higher than
the vetoed amount in 2019.

Under the original proposal, the DBM allocated new appropriations worth P533.5 billion for DPWH.
When congressmen passed the budget bill, they decreased allocations by P3.75 billion, but by the end of
the bicam discussions, lawmakers decided to give the department a net increase of P51 billion, bringing
sums to a total of P580.89 billion.
The infrastructure sector has a lot of catching up to do with the government's "Build, Build, Build"
infrastructure program. The 4-month budget delay in 2019 held back construction for new programs.

According to the DBM, about one-third of DPWH's funds (P203.8 billion) will be used for its network
development and bridge programs.

Part of its funds for 2020 is the "special road fund" worth P15.57 billion. This was from the motor vehicle
users' charge, transferred from the abolished Road Board. Under the special provisions, this money may
be earmarked solely for the construction, upgrading, and repair of roads, bridges, and drainages.

Education

DepEd's budget for this year stands at P521.35 billion, or about P20 billion more than the 2019 budget
of P501.12 billion.

During budget deliberations, DepEd sought congressional approval of additional funds worth P30 billion,
higher than the amount the DBM proposed under NEP, which was P518.84 billion at that time.

DepEd said then that it will use the extra funds for its computerization program and human resource
development, among others. The fund will also be used to create additional teaching positions, but to
date, there are over 59,026 vacancies within the department.

The latest Commission on Audit report also found that at least 4.8% of the education department's 2018
budget was unused, mainly due to unimplemented projects and unfilled permanent positions.

While the P30-billion request was not granted, DepEd's approved budget was still P2.5 billion higher
than the originally proposed amount by the DBM.

Under the approved fiscal plan, at least P36 billion was allocated for the free tuition law program this
year.

For teachers, those teaching for more than 6 hours would receive extra compensation. In the special
provisions, every hour spent would be paid with 25% of the teacher's hourly rate, but still subject to
DepEd guidelines.

Agriculture

The appointment of Agriculture Secretary William Dar seemed to bring back the economic managers'
trust in the department.

The Department of Agriculture received an increase of P15 billion from last year's P47.29 billion,
bringing its total funds to P62.29 billion.

Under resigned DA secretary Emmanuel Piñol, 2019 funds were decreased because of DA's poor
spending performance in the past years, which was at 55.1% in 2017 and 66.2% in 2018.
This year, DA's budget includes the P10-billion Rice Competitiveness Enhancement Fund. It also includes
some P3 billion to be disbursed as cash grants to farmers affected by the rice tariffication law.

The "Young Farmers Challenge" program was also funded with P100 million, in a bid to encourage the
Filipino youth to stay or return to the agriculture sector. (READ: Birth pains force farmers' kids out of
school)

Meanwhile, the National Food Authority, a government corporation attached to DA, would receive less
subsidy from the government in 2020. The appropriated amount for this year is only P7 billion, down
from 2019's P10 billion.

Social welfare

DSWD has a total budget of P163.811 bilion, a P22.65 billion increase from last year's P141.21 billion.

At least a fifth of its budget would go to the Pantawid Pamilyang Pilipino Program, commonly known as
4Ps, in the form of financial assistance instead of rice subsidy.

On top of DSWD's budget, some P36.5 billion was lodged under the Land Bank of the Philippines for its
unconditional cash transfer program. The fund was placed under Landbank for easier disbursement to
beneficiaries.

Office of the President

The Office of the President may have not gotten the highest budgetary increase, but it's worth noting
that its proposed P8.28-billion funds was approved without a hitch.

Duterte's confidential and intelligence funds comprise more than half of the entire OP budget at P2.25
billion each, for a total of P4.5 billion. (READ: Duterte's office has highest confidential, intel funds in
proposed 2020 budget)

The OP allocation for intelligence funds is even higher than the declared amount for the DND (P1.7
billion) and PNP (P806 million).

PNA

Philippine News Agency

Timely budget passage to boost 2020 economic growth: Pernia

By Leslie Gatpolintan January 23, 2020, 8:11

MANILA -- Government economic planners are optimistic about hitting this year’s gross domestic
product (GDP) target of 6.5 percent to 7.5 percent after the economy expanded slightly lower than the
target band in 2019 due to the delayed national budget approval.

The Philippine economy expanded by 6.4 percent in the fourth quarter of 2019, bringing the full-year
economic growth to 5.9 percent that was the slowest in eight years and modestly below the low-end of
the government’s 6.0-6.5 percent revised target for the year. The GDP grew by 6.2 percent in 2018.

“We have seen our economy facing several challenges right at the start of 2019 as the budget impasse
led to delays in the implementation of government programs and projects. Adding to the problem was
the election ban on certain, mainly infrastructure projects,” Socioeconomic Planning Secretary Ernesto
Pernia said in a press briefing on Thursday.

President Rodrigo Duterte signed the 2019 budget only in April.

But Pernia said the Congress and the Department of Budget and Management (DBM) have ensured the
timely passage of the country’s 2020 spending plan and approved the validity extension of the 2019
fiscal program until the end of this year, which he considered both are “critical to our efforts to spur
economic growth.”

“Other things being equal, compared with 2019, I think the economic growth, given the favorable
passage of the budget and also the extension of the 2019 budget until the end of the year, the favorable
impact would be bigger in terms of economic performance,” he added.

Pernia, also Director-General of the National Economic and Development Authority (NEDA),
underscored the need to reconfigure budget and disbursement protocols that are more robust.

“We now need to significantly improve the absorptive capacity of government agencies for faster
implementation and completion of key social programs and infrastructure projects. We also need to
swiftly address issues such as the difficulty in the acquisition of right-of-way, delays in procurement,
restrictive auditing rules, and skills shortages,” he added.

NEDA Undersecretary Rosemarie Edillon said efforts to improve the absorptive capacities of government
agencies so far have not been a problem under the Duterte administration.

“(But) still we cannot be complacent. We think it (GDP growth target still) is very much achievable this
year,” she said.

In 2020, Edillon said they are banking on the manufacturing and construction sector amid the
government’s “Build, Build, Build” program, boosting the economy to faster growth.

“Services will still be a growth driver, especially since we are looking forward to a new
telecommunication (player) this year so our communication sub-sector of course,” she said in an
interview, citing also sectors that rely heavily on the communications infrastructure.
Pernia said with 6.4-percent growth in the fourth quarter, the Philippines likely ranked second only
behind Vietnam’s 7.0 percent, and higher than China’s 6.0 percent growth rate.

The Philippine Statistics Authority (PSA) reported that among the major economic sectors, services
posted the fastest growth in October to December with 7.9 percent.

Industry grew by 5.4 percent, while agriculture, hunting, forestry, and fishing registered a growth of 1.5
percent.

“On the supply side, the 7.9 percent growth in the services sector was mainly driven by the acceleration
of public administration and defense, trade, and other services. However, this was partly tempered by
the slowdown in agriculture,” he said.

On the demand side, Pernia said growth was driven by the ramping up of government spending after the
budget delay in the first half of 2019.

“Public construction significantly increased by 34 percent in fourth-quarter 2019, with the completion of
projects of the Department of Public Works and Highways, payment for the acquisition of right-of-way,
and construction of government buildings,” he added. (PNA)

PNA

Philippine News Agency

2020 budget needs to be ‘adjusted’ to address Covid-19

By Azer Parrocha March 23, 2020, 7:41 pm

MANILA – The 2020 national budget should be “adjusted” to better address the coronavirus disease
(Covid-19) outbreak in the country, Cabinet Secretary Karlo Nograles said on Monday.

Nograles justified President Rodrigo Duterte’s decision to seek for additional powers to carry out the
urgent measures such as realigning any appropriation in the 2020 General Appropriations Act (GAA).

Admitting that the government did not anticipate a pandemic while drafting the 2020 budget a year
before, he said the current budget is no longer “appropriate” to respond to government’s efforts to fight
the coronavirus.

“Kaya nga po kailangan natin ng adjustments para matugunan natin ang pangangailangan ng ating
kababayan (That is why we need adjustments to address the needs of our citizens),” he said in a Laging
Handa public briefing.
He said Duterte is hoping for “flexibility” to make budget realignments that concentrate on Covid-19
response, but it will be up to Congress whether to grant him additional powers or not.

Nograles also said the items in the 2020 national budget could also be used to augment the depleted
funds of local governments.

On March 21, Duterte issued Proclamation No. 933 asking Congress to pass a law authorizing him to
exercise powers necessary to carry out urgent measures to meet the current national emergency related
to Covid-19.

“The declared national policy is to stop the spread of the coronavirus that threatens the public safety. To
implement the same, there are urgent measures that the President may need to effectively thwart the
proliferation of Covid-19,” Presidential Spokesperson Salvador Panelo said in a statement.

Under the proposed measure, Duterte may also cancel programs, projects, or activities for purposes of
generating savings and reprogram, reallocate, or realign savings within the executive department to
address the Covid-19 pandemic.

It also gives him power to immediately procure goods which may include personal protective equipment
(PPE); lab and medical equipment; testing kits; lease of property or venue for use to house health
workers or serve as quarantine centers, medical relief and aid distribution locations, or temporary
medical facilities.

The country is currently under a state of public health emergency and a state of calamity with nearly 462
confirmed cases of Covid-19 and 33 deaths.

President Rodrigo Duterte placed the entire Luzon under an enhanced community quarantine which
strictly requires residents to stay indoors and limit movement to accessing basic necessities. (PNA)

REUTERS.COM

MON JAN 6, 2020 / 3:59 AM EST

Philippines' Duterte speeds through $80 billion 2020 budget, spending up 12%(Reuters) - Philippines
President Rodrigo Duterte on Monday signed a record 4.1 trillion peso ($79.97 billion) budget for this
year, ensuring timely funding for an infrastructure overhaul in one of the fastest growing economies in
Asia.

Horse-trading in Congress delayed last year's budget approval by four months, weighing down the
Southeast Asian nation's economic growth.
Total spending was 12% higher from 3.66 trillion pesos in 2019. Of this year's budget, 38% was allotted
for education, healthcare, housing and social welfare; 29% for infrastructure, tourism, trade, job
generation and agriculture; and 11% for debt payments, Duterte said.

The Philippine leader had pledged to usher in the "golden age" of infrastructure by upgrading aging
airports, seaports, roads and railways.

His $180 billion "Build, Build, Build" initiative aims to lift millions out of poverty and spread growth in the
provinces. But the infrastructure plan was modified after authorities admitted that several big ticket
infrastructure projects, like inter-island bridges were not feasible.

The timely budget approval bodes well for the economy, allowing it to fund much-needed infrastructure
projects early in the year, said Michael Ricafort, an economist at Rizal Commercial Banking Corp. "We
now have catch-up spending especially on infrastructure."

The government is targeting an economic growth of 6.5%-7.5% this year. A government inter-agency last
month cut its growth target for 2019 to 6.0%-6.5% from 6.0%-7.0% to reflect weak economic activity in
the first half.

INQUIRER.NET:

Delay in 2020 budget has no impact on gov’t operations

By: Maila Ager - 1 year ago

MANILA, Philippines — Senator Sonny Angara expects the implementation of more infrastructure
projects with the signing of the “first legacy budget” of the Duterte administration.

As chairman of the committee on finance, Angara spearheaded the Senate’s discussions and approval of
this year’s P4.1 trillion General Appropriation Act (GAA).

President Rodrigo Duterte signed the 2020 GAA this Monday.

“We were off by a few days but this should have no impact on the operation of the government,”
Angara said in a statement.

Angara noted how Congress worked hard to avoid a repeat of last year’s budget approval which was
delayed by four months allegedly due to pork insertions.

“Our experience with the 2019 General Appropriations Act was regrettable. The delays faced in the
approval of the measure proved to be very costly on the people, who were expecting the timely delivery
of key services, and on the economy, which grew at a slower pace,” he said.

“With this in mind, all members of Congress worked together to prevent a similar situation from
happening with the 2020 budget. As it has been in previous years, there were differences on some
issues, but we were able to resolve these with haste, all for the greater good of the country,” the
senator added.
Under the 2020 GAA, Angara said the Department of Public Works and Highways received a net increase
of P51.139 billion.

“The idea is to complete as many projects as possible by the time President Duterte ends his term in
2022,” he explained.

“For the more complex projects, the plan is to get the ball rolling already so that the next administration
will just continue these and complete them during their term.”

Education and social services are also given priority in the national budget, the senator said.

Angara said the conditional cash transfer or the Pantawid Pamilyang Pilipino Program will continue and
the benefits due to senior citizens, including the P6,000 annual social pension, will still be funded in the
2020 budget.

This year’s budget also provides for the continues hiring of health care professionals such as the doctors,
nurses, midwives and dentists.

The senator identified the top 10 agencies that were given huge allocations in the 2020 budget:

1. Education (DepEd, SUCs, CHED, TESDA) – P654.6 billion

2. Department of Public Works and Highways – P580.8 billion

3. Department of Interior and Local Government – P239.8 billion

4. Department of National Defense – P191.7 billion

5. Department of Social Welfare and Development – P163.8 billion

6. Department of Health – P101 billion

7. Department of Transportation – P99.3 billion

8. Department of Agriculture – P62.2 billion

9. Judiciary – P40.1 billion

10. Department of Environment and Natural Resources – P25.5 billion

YEAR 2021 issues

Articles

INQUIRER.NET
BY THE NUMBERS: The proposed 2021 national budget

By: Christia Marie Ramos, Neil Arwin Mercado - 5 months ago

MANILA, Philippines – The budget season has officially started with both houses of Congress kicking off a
series of deliberations to scrutinize the country’s spending plan for the coming year.

INQUIRER.net breaks down the proposed P4.506 trillion national budget for 2021, based on documents
provided by the Department of Budget and Management (DBM).

The budget

Budget Secretary Wendel Avisado said the proposed national budget for 2021 is at P4.506 trillion, which
is 9.9 percent higher than the 2020 budget and is 21.8 percent of the gross domestic product (GDP).

When Avisado submitted the budget to Speaker Alan Peter Cayetano in August, he said the proposed
focuses on government spending on improving the country’s healthcare systems, ensuring food security,
creating more jobs by investing in labor-intensive projects, enabling a digital government and economy,
and helping communities cope.

The theme of this year’s budget, Avisado said, is “Reset, Rebound, and Recover: Investing for Resiliency
and Sustainability.”

“The imposition of community quarantine has had a significant impact on the economic and social
activities in our country while our healthcare sector continues to struggle against the pressure of the
pandemic,” Avisado said when he submitted the proposed national budget to House Speaker Alan Peter
Cayetano.

“We, in government, must be able to effectively respond and with the fiscal year 2021 National
Expenditure Program (NEP), we hope to fully address the impact of the health crisis and accelerate our
economic recovery,” Avisado said.

Allocation by department

According to documents provided by the DBM, government offices in the education sector got the
highest allocation at P754.4 billion which is higher than the P650.2 billion allocation for 2020.

This budget covers the Department of Education, the Commission on Higher Education (CHED), the
Technical Education and Skills Development Authority (TESDA), and the state universities and colleges
across the country.

This was followed by the Department of Public Works and Highways (DPWH) at P667.3 billion; the
Department of Interior and Local Government (DILG) at P246.1 billion; the Department of National
Defense (DND) at P209.1 billion; and the Department of Health (DOH) at P203.1 billion.

Other agencies among the top 10 departments with the highest budget allocation include the
Department of Social Welfare and Development (DSWD) at P171.2 billion; the Department of
Transportation (DOTr) at P143.6 billion; the Department of Agriculture (DA) at P66.4 billion; the Judiciary
at P43.5 billion; and the Department of Labor and Employment (DOLE) at P27.5 billion.

Among the notable agencies outside the top 10 is the Department of Trade and Industry (DTI) which has
a proposed budget of P20.162 billion. Some lawmakers in the House of Representatives have expressed
interest to augment the trade and industry department’s budget proposal.

Breakdown per sector

Under the proposed budget, the social service sector will get the biggest chunk of the 2021 budget pie
with an allocation of P1.663 trillion followed by economic services, the allocation of which stands at
P1.347 trillion.

Spending for general public services is pegged at P724.2 billion under the proposed budget. Meanwhile,
P560.2 billion will go to the government’s “debt burden.”

The defense sector has the lowest allocation with P2106 billion under the proposed budget.

RESET: Addressing the pandemic

To address the effects of COVID-19, the national government has earmarked a total health budget of
P203.1 billion for 2021.

The said amount is expected to fund COVID-19 response strategies and programs “that are consistent
with the implementation of the Universal Healthcare Act.”

Below is the breakdown for the proposed budget for the health sector:

National Health Insurance Program (PhilHealth) – P71.4 billion

Medical assistance to indigent patients – 17.31 billion

Human resources for health – P16.6 billion

Provision for COVID-19 surveillance – P51.56 million

Health Facilities Enhancement Program (HFEP) – P4.8 billion

Also included in the proposed health budget are allocations for the purchase of personal protective
equipment (PPE) sets amounting to P2.7 billion and GeneXpert Cartridges at P1 billion.

The government is also setting aside P2.5 billion for the procurement of COVID-19 vaccines.

REBOUND: Reviving infrastructure development

Of the P4.5 trillion proposed national budget, the executive department has earmarked P1.107 trillion
for infrastructure programs.

Of the amount, over P342.4 billion worth of projects will be implemented by the Department of Public
Works and Highways while P122.7 billion is allocated for the Department of Transportation as funding
for rail and public transportation as well as maritime infrastructure.

The national government, meanwhile, proposed an allocation of P21.4 billion for the Medium-Term
Information and Communications Technology Harmonization Initiative.

RECOVER: Adapting to the post-pandemic life

The national government has allocated funds for various sectors with the end goal of adapting to the
post-pandemic life.

For instance, to help micro, small and medium enterprises in the country, P2.28 billion is set aside for
the MSME Development Program and another P1.5 billion is allocated to the Pondo Para sa Pagbabago
at Pag-Asenso Program or P3.

REUTERS

WED JUN 24, 2020 / 6:14 AM EDT

Philippines plans record $86 bln 2021 budget for post-pandemic recovery

(Reuters) - The Philippine government is seeking a record 4.3 trillion peso ($85.89 billion) budget for
2021 focused on reviving a coronavirus-hit economy expected this year to shrink for the first time in two
decades, a top official said on Wednesday.

The administration of President Rodrigo Duterte faces the enormous task of resuscitating growth and
creating jobs in 2021, before his six-year term ends in June of the following year.

The budget proposal, set to be submitted to Congress when it resumes session next month, is 5% higher
than this year's 4.1 trillion pesos.

Budget Secretary Wendel Avisado said the proposal would help the government move past the
pandemic and "provide the kind of programmes, activities and projects for our people, especially those
who lost their jobs".

The Southeast Asian country, which used to enjoy one of the world's fastest economic growth rates
before the coronavirus wreaked havoc on global business, is projected to suffer a 2% to 3.4% decline in
gross domestic product this year, government officials have said.

Next year's spending is geared toward further buttressing the healthcare system, ensuring food security,
hastening the government's digital transformation, and helping communities to rebound, according to a
budget briefing document.
The proposed budget is separate from a 1.3 trillion peso stimulus bill that the lower house passed early
this month, and another stimulus plan under discussion at the Senate.

The country's economic managers, however, have raised concerns about the stimulus packages
proposed by Congress and the absence of excess revenues to fund them. ($1 = 50.0660 Philippine pesos)

PNA

Philippine News Agency

House approves P4.5-T nat'l budget for 2021

By Filane Mikee Cervantes October 16, 2020, 8:35 pm

MANILA – The House of Representatives on Friday approved on third and final reading the proposed
PHP4.5-trillion national budget for 2021.

A total of 267 lawmakers approved House Bill 7727 or the 2021 General Appropriations Bill (GAB) on
third and final reading after the plenary passed the measure on second reading on the same day.

Only six lawmakers opposed, while no one abstained from voting.

President Rodrigo Duterte has certified the spending measure as urgent, which lifts the “three-day” rule
between the second and third readings.

The House gave its greenlight to the 2021 GAB after holding a special session from October 13 to 16, as
called upon by President Duterte.

In a speech following the bill’s third reading approval, Velasco assured the public that there would be no
reenacted national budget for next year.

“I congratulate all House members for their active involvement in the timely passage on third and final
reading of the General Appropriations Bill. But I assure you and the President that we will not have a
reenacted budget by January of next year,” Velasco said.

Velasco said they will “transmit without delay” the House-approved budget bill to the Senate to give
their counterparts sufficient time to examine the spending measure.

Velasco described the 2021 national budget as “an extraordinary budget for extraordinary times”.

“There is so much at stake here: our health, the economy, jobs and livelihood, food security, the
education of our children, and much more. And we thank President Rodrigo Roa Duterte for taking a
principled, decisive leadership in calling this special session so that the budget would get the complete
attention that it deserves,” he said.
He noted that next year’s budget would not only provide the fiscal stimulus for economic recovery, but
also help fund the government's efforts to contain and mitigate the spread of the coronavirus disease
(Covid-19).

House appropriations committee chair Eric Yap, sponsor of the bill, said the proposed budget is crucial
to the country’s recovery from the adverse effects of the coronavirus pandemic as it will serve as an
investment for resiliency and sustainability.

“We stand along with the budget philosophy of this administration that more than our priorities for a
responsive and dynamic governance, we have to focus our resources to the most urgent priority -- to
reset our momentum and action, rebound for the devastating effect of the pandemic on the health and
economy, and fully recover from the current and continuing impact of this crisis,” Yap said.

pandemic has hampered opportunities for socio-economic growth and development, with many losing
their jobs and livelihood following closures of companies.

“This budget carries the aspiration of our Filipino people to recover from the hardship brought by the
pandemic to our livelihood and to recover the country's economic growth. The timely passage of the
General Appropriations Bill will ensure that our government, through its programs and projects, will be
able to rebound, reset, and recover our lost momentum,” he said.

The proposed national budget is 9.9 percent higher than the PHP4.1-trillion appropriations for 2020 and
equivalent to 21.8 percent of the gross domestic product (GDP).

The bulk of next year’s proposed budget will be provided to the social services sector amounting to
PHP1.664 trillion, equivalent to 36.9 percent. This includes funding support for programs related to
health, social protection, and education.

The economic services sector will receive the second highest allocation with PHP1.347 trillion or 29.9
percent of the proposed budget.

Meanwhile, the general public services sector will be allocated with PHP724.2 billion, debt burden with
PHP560.2 billion, and defense with PHP210.6 billion.

The top 10 agencies with the highest budget allocations include the Department of Education (DepEd),
Department of Public Works and Highways (DPWH), the Department of the Interior and Local
Government (DILG), the Department of National Defense (DND), the Department of Health (DOH), the
Department of Social Welfare and Development (DSWD), the Department of Transportation (DOTr), the
Department of Agriculture, the Judiciary, and the Department of Labor and Employment (DOLE).

Earlier, budget deliberations were stalled due to the speakership tussle between then Speaker Alan
Peter Cayetano and his successor, Velasco.

Cayetano's move to abruptly suspend the session and hastily pass the 2021 budget bill on second
reading on October 6 was an attempt to prevent any speakership takeover.
However, plenary debates eventually resumed on Tuesday after Velasco was elected by a majority of
House members.

Under the term-sharing deal brokered by President Duterte, Cayetano would serve as the House
Speaker for the first 15 months, or until October 2020 while Velasco would take over and assume the
position for the remaining 21 months or until the 18th Congress ends in 2022. (PNA)

BLOOMBERG

Duterte Approves Record Philippine Budget for Pandemic Recovery

By Andreo Calonzo

December 28, 2020, 5:38 AM EST

Philippine President Rodrigo Duterte has approved a record 4.5 trillion-peso ($93.6 billion) budget for
next year that economic managers have called the “heftiest stimulus package” for recovery from the
pandemic.

The Philippines is expecting its economy to grow by as much 7.5% in 2021 after plunging into recession
this year. Duterte’s economic team has said the 2021 budget will help boost economic growth. Next
year’s budget deficit ceiling was raised to 8.9% of GDP due to higher spending.

CNN PHILIPPINES

Palace receives proposed 2021 budget from Congress

By CNN Philippines Staff

Published Dec 18, 2020 5:40:29 PM

Metro Manila (CNN Philippines, December 18) — The proposed ₱4.5 trillion national budget for 2021 is
closer to being signed into law after Malacañang confirmed receiving a copy from Congress on Friday.

President Rodrigo Duterte is set to sign the proposed General Appropriations Act before Christmas, his
spokesperson Harry Roque earlier said.

Congress ratified the budget bill last week after months of deliberation. Duterte had to call for a special
session of Congress and certify the bill as urgent in October due to the House leadership squabble which
was eventually resolved by the election of House Speaker Lord Allan Velasco.

The national spending plan for next year includes funds for COVID-19 pandemic response and recovery,
including subsidies to ailing industries and vaccine purchases.
₱72.5 billion will be used to secure coronavirus vaccines, ₱70 billion of which will be supported either by
loans or from excess revenue collections.

It also provides ₱1.1 trillion for infrastructure projects, which are touted to create jobs and boost
economic activity after a recession year.

Education will receive the biggest allocation with ₱708.2 billion, followed by Public Works with ₱694.8
billion. Health-related spending is given ₱287.5 billion, according to the office of Senate Finance
Committee chairman Sonny Angara.