Chart 1. Appropriations vs Obligations vs Disbursements of the Health Facilities Enhancement Program (HFEP) from 2008-2018, in thousand pesos.

What’s the real score on the Health Facilities Enhancement Program?

In light of the transition to cash-based appropriations from obligation-based appropriations, a number of legislators have noted several decreases in the appropriations of several line items in the proposed 2019 National Budget during budget briefings held in the House of Representatives and the Senate on July 31, and August 8-9, respectively.

The biggest cut in the 2019 budget is that of the Health Facilities Enhancement Program (HFEP) which is allocated only P50 million in the proposed budget, down from its P30 billion allocation in the 2018 General Appropriations Act, and P24 billion allocation in the 2017 General Appropriations Act.

The Department of Budget and Management cites the “dismal spending performance” of the Department of Health (DOH) in the implementation of the HFEP as the main reason for the massive reduction in its budget allocation.

As of March 31, 2018, the total disbursements for the Health Facilities Enhancement Program have only reached around P13.5 billion, less than 10% of the total P138 billion appropriations provided for the program since 2008.

“The agreement with the Department of Health is that they will undertake a careful assessment of the program -- that is what the P50 million is for,” DBM Secretary Benjamin Diokno said. “Is the HFEP cost-effective or is it wasteful use of taxpayers’ money?”

“In the meantime, the DOH can spend the obligation balance it has incurred over the years for HFEP,” he added.

To date, based on DOH figures, the unliquidated obligation is P57.5 billion while the unobligated allotment is P27.4 billion, or a total of P84.8 billion.

“DOH should explain how they can implement this amount which is higher than the DOH-proposed budget for 2019,” the budget chief said.

DBM will also ask Commission on Audit to perform another special audit of the program parallel to the implementation of the DOH study.

The Health Facilities Enhancement Program (HFEP) first became a budget line item under the FY 2008 GAA, with an allocation of P1.66 billion.