Palace submits to Congress proposed P4.1-T budget for 2020

By Jose Cielito Reganit

August 20, 2019, 8:56 pm

MANILA -- The Duterte administration on Tuesday submitted to the House of Representatives the proposed PHP4.1 trillion budget for 2020, which is aimed at "continuing the journey to a more peaceful and progressive Philippines" by funding the government’s critical programs.

The proposed 2020 budget is 11.8 percent higher than the PHP3.662 trillion budget for 2019, constituting 19.4 percent of the country’s gross domestic product (GDP).

Next year's National Expenditure Program (NEP) was submitted by Acting Budget Secretary Wendel Avisado to the leaders and members of the House, led by Speaker Alan Peter Cayetano, Majority Leader Martin Romualdez, Appropriations Committee chair Isidro Ungab, and Ways and Means Committee chair Joey Salceda and Minority Leader Benny Abante, among others.

The 2020 budget is the fourth annual budget submitted by the government under President Rodrigo Duterte and marked the beginning of the second half of his administration.

In his budget message, Duterte said next year’s budget “will aim to build the fruits and gains of the previous annual expenditure programs of the administration, not only to ensure but to consolidate the gains, for the bright future of the Philippines and its people.”

“It is the financial program that will ensure that our nation stays the course and moves forward to its aspired destination,” he said.

“With this financial program, we aim to achieve the government’s growth targets through investments in priority programs, including infrastructure and social services, while adhering to fiscal sustainability,” Duterte said.

He urged lawmakers from both chambers of Congress to swiftly approve the budget.

“With your diligent review and speedy approval of our proposed National Budget of PHP 4.1 trillion for the Fiscal Year 2020, we can together continue to give meaning to the trust that our people have vested upon us and to make good our promise to lead them to a more peaceful and progressive Philippines,” Duterte said.

Administration’s critical programs

Among the critical programs of the administration are measures to implement new laws and policies that provide economical and social assistance to all Filipinos, and enhance the security of the nation.

Among these are the full implementation of the Universal health Care (UHC) law; institutionalization of the Pantawid Pamilyang Pilipino Program (4Ps); smooth transition of the Bangsamoro Autonomous Region of Muslim Mindanao (BARMM); creation of the Department for Human Settlements and Urban Development (DSHUD); and National Task Force to End Local Communist Armed Conflict (NTF-ELCAC).

In view of the full implementation of the UHC law, the program is allocated PHP166.5 billion, of which PHP67.4 billion is allocated for the National Health Insurance Program (PhilHealth).

Meanwhile, PHP9.5 billion is allocated for Human Resources for Health Deployment Program, PHP9.4 billion for Assistance to Indigent Patients, and PHP5.9 billion for the Health Facilities Enhancement Program.

The 4Ps will get an allocation of PHP108.8 billion, enabling the government to increase the monthly grants to qualified households from PHP500 to PHP750 to accommodate the rise in prices of commodities.

The educational grants will increase from PHP500 to PHP700 for every child enrolled in senior high school.

Pursuant to the Bangsamoro Organic Law (BOL), PHP70.6 billion is allocated to the BARMM.

Of this amount, PHP63.6 billion is allocated for the annual block grant, PHP5 billion is for the special development fund, and PHP2 billion is for BARMM’s share in the national taxes.

Under the 2020 NEP, the newly-created DHSUD will get an allocation of PHP641.6 million for its initial operation.

Meanwhile, PHP622.3 million is allocated for the NTF-ELCAC, pursuant to Executive Order No. 70, s. 2018, or the Whole-of-Nation Approach in Attaining Inclusive and Sustainable Peace.

The NTF-ELCAC is tasked to pursue sustainable peace through an "ambitious and comprehensive development agenda to promote inclusivity by eliminating poverty, enhancing social equity, developing greater human capital, and improving physical infrastructure in less-developed and conflict-ridden regions of the country".

The Rice Competitiveness Enhancement Fund (RCEF) will get an allocation of PHP10 billion for 2020.

The RCEF was created under Republic Act 11203, or the Rice Liberalization Act, to provide assistance to rice farmers, cooperatives and associations who will be adversely affected by the influx of imported rice.

In infrastructure development, the Duterte government is allocating PHP972.5 billion for the “Build, Build, Build” program in 2020, representing 4.6 percent of the GDP.

Of this amount, the Department of Public Works and Highways (DPWH) will get PHP119.1 billion for its Network Development Program, PHP51.8 billion for Asset Preservation Program, and PHP32.9 billion for its Bridge program.

The Department of Transportation (DOTr) will get PHP106.7 billion for Rail Transportation, PHP508 million for Sea Transportation, and PHP346 million for Air Transportation.

Budget dimensions

By sector, Social Services got the biggest allocation with PHP1.525 trillion (37.2 percent), followed by Economic services with a total allocation of PHP1.184 billion (28.9 percent).

Meanwhile, General Public Service got an allocation of PHP734.5 billion (18 percent), Debt Burden, which includes Net lending, got PHP451 billion (11 percent), and Defense getting PHP195.6 billion (4.8 percent).

By departments, the Department of Education (DepEd), including state universities and colleges (SUCs), Commission on Higher Education (CHED) and TESDA, still got the highest allocation with PHP673 billion.

It was followed by the DPWH with PHP534.3 billion; Department of the Interior and Local Government (DILG) with PHP238 billion; Department of Social Welfare and Development (DSWD) PHP195 billion; and Department of National Defense (DND) with PHP189 billion.

Rounding up the Top 10 departments are the Department of Health with PHP166.5 billion; DOTr with PHP147 billion; Agriculture with PHP56.8 billion; the Judiciary with 38.7 billion; and the Department of Environment and Natural Resources with PHP26.4 billion. (PNA)

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