GOVPH

The Department of Budget Management (DBM) has instructed agencies to review and reprioritize its programs, activities, and projects (PAPs) under the proposed P4.335-trillion cash budget for FY 2021 toward containing the spread and mitigating the effects of the COVID-19 pandemic while marshalling an economic recovery under the “new normal”. This is contained in its National Budget Memorandum No. 136 issued on May 21, 2020.   Cash-Based Budget Ceiling and Fiscal Space for FY 2021 To accelerate growth and help the economy recover from the COVID-19 crisis, the Development Budget Coordination Committee (DBCC) has pegged the FY 2021 cash appropriation at P4.335-trillion, equivalent to 20.2 percent of gross domestic product (GDP). This is higher by 3.7 percent when compared to the level of P4.180-trillion approved last 12 May 2020.    The higher proposed cash-based budget for next year aims to support the Build, Build, Build Program to help stimulate economic growth. With higher infrastructure investments, the country’s recovery from the COVID-19 pandemic can be better assured by generating more jobs in 2021, thus contributing a projected 0.9 percentage point increase to GDP growth to reach the...

Responding to the impact of the COVID-19 pandemic on the Philippine economy, the Development Budget Coordination Committee (DBCC) has adjusted the country’s macroeconomic indicators and fiscal program for fiscal years (FY) 2020 to 2022. These adjustments reflect the Duterte administration’s priorities of saving lives and protecting communities, while providing support to vulnerable groups and stimulating the economy to create jobs and support growth. These revised assumptions will also allow the government to operate with a more realistic and prudent fiscal stance as it flags the downside risks to the economy and the fiscal program for the rest of the year. Real Growth Projections   The DBCC projects the country’s Gross Domestic Product (GDP) to contract by 2.0 to 3.4 percent in 2020. National Economic and Development Authority (NEDA) estimates suggest that the potential impact of the pandemic on the economy could reach PhP2.0 trillion or about 9.4 percent of GDP this year. Timely implementation of a well-targeted recovery program, alongside efforts of the private sector, will mitigate the impact of the COVID-19 pandemic. Such a program will help the country regain confidence,...

The implementation of the Universal Access to Quality Tertiary Education (UAQTE) Law (Republic Act [RA] No. 10931) will not be affected by the implementation of National Budget Circular (NBC) No. 580, issued by the Department of Budget and Management. While the said Circular aims to partially generate the required amounts to implement the national policy to address the Corona Virus Disease-2019 (COVID-19) situation, it also provides that programs, activities and projects that may be deferred are those items that are not likely to be implemented within the current fiscal year, FY 2020. Records reveal that the obligation budget utilization rate (BUR) of the Commission on Higher Education for the implementation of the UAQTE is relatively low. In FY 2018, the BUR was recorded at 49% by yearend out of the P40-Billion allotments released to CHED. Meanwhile, the BUR for FY 2019 is only 32% as of yearend, out of the P28.027-Billion in allotments released to CHED. The low BUR is due to the fact that the academic year of higher education institutions (HEIs) is asynchronous with the government’s fiscal year. This means that the funding requirement for the second semester of an academic...

The Philippines secured the top spot in Southeast Asia for budget transparency after the results of the 2019 Open Budget Survey (OBS) were released last April 29, 2020. The country received an Open Budget Index (OBI) score of 76, maintaining its position as the most fiscally transparent country in the region while ranking 10th place worldwide.    The country’s 2019 OBI score climbed nine notches higher to 76 (out of 100) from 67 in 2017, exceeding the 2019 and 2021 OBI target scores of 67 and 71, respectively, under the Philippine Development Plan 2017-2022. A transparency score of 61 and above implies comprehensive, timely and online publication of all eight (8) key budget documents, including the Mid-Year Review, a feat achieved twice by the country since the onset of the OBS.   Said score is also notably higher than the global average score of 45, as well as that of other Asian countries such as Indonesia (70), Japan (62), South Korea (62), and Thailand (61). In terms of global ranking, for the first time, the Philippines made it to the top 10 out of 117 countries surveyed worldwide by the International Budget Partnership (IBP), a substantial jump from its 19th spot in the previous...

Consistent with spirit of the “Bayanihan to Heal as One Act”, the Department of Budget and Management (DBM) has released a total of P199.975-Billion to the Department of Social Welfare and Development (DSWD) to fund its Social Amelioration Program (SAP). The combined allotments released to the DSWD includes its regular social services budget and the additional allotments in response to the COVID-19 outbreak for its social amelioration programs such as the Assistance to Individuals in Crisis Situations (AICS). The following allotments were released to DSWD since the enactment of the “Bayanihan” Law in 24 March 2020:   According to the DSWD, 18 Million households nationwide will receive assistance thru the SAP including 4.4 Million households who are existing beneficiaries of the Expanded Pantawid Pamilyang Pilipino Program (4Ps) who will receive top-up assistance from their existing payouts to complete the P5,000-P8,000 monthly SAP grants for two months during the Enhanced Community Quarantine Period. Non-4Ps beneficiaries of the SAP will receive the full P5,000-P8,000 grant depending on the area of residence. The combined released amount for the SAP is sourced from the pooled...

In light of the declaration of a State of Public Health Emergency and a State of Calamity throughout the Philippines due to the COVID-19 outbreak, the Department of Budget and Management (DBM), on 16 April 2020, released P8,500,000,000 to cover the funding requirements for the Rice Resiliency Project (RRP) of the Department of Agriculture (DA) under the Ahon Lahat, Pagkaing Sapat (ALPAS) Kontra COVID-19 Program.   According to the DA, the RRP, which is expected to benefit around 3 million rice farmers nationwide, aims to ensure the availability of rice supply through increased local rice production during the 2020 wet season. The program shall be implemented under the three (3) sub-projects:   1. Enhanced Rice Competitiveness Enhancement Fund (RCEF) – a fertilizer support for the RCEF-targeted 947 inbred rice municipalities to complement the effort of RCEF Seed Component;   2. Expanded Inbred Rice Production (Beyond RCEF Areas) – an expanded inbred certified seed distribution during wet season to enhance production in non-RCEF areas, to be coupled with inorganic fertilizer distribution; and   3. Expanded Hybrid Rice Production in Suitable Areas – an intensified promotion of high-yield...

On 15 April 2020, the Department of Budget and Management (DBM) released P1,912,500,000 to the Department of Health (DOH) to cover the funding requirements for the procurement of Reverse Transcription Polymerase Chain Reaction (RT-PCR) Severe Acute Respiratory Syndrome Coronavirus 2 (SARS-COV-2) detection kits.  According to the DOH, the P1.9-Billion release will cover detection kits for the 68 laboratories expected to be certified by the DOH in response to the COVID-19 pandemic and is estimated to conduct 918,000 tests.  The released amount is charged against the pooled savings from discontinued unreleased appropriations consistent with Section 4(v) of Republic Act No. 11469, otherwise known as the “Bayanihan to Heal as One Act”. Additional specific details regarding the detection kits may be best provided by the DOH. (30)   For requests for interviews, please contact the Office of Secretary at This email address is being protected from spambots. You need JavaScript enabled to view it. document.getElementById('cloake73622a0c92450e7097f35654d58a67d').innerHTML = ''; var prefix = 'ma' + 'il' + 'to'; var path = 'hr' + 'ef' + '='; var addye73622a0c92450e7097f35654d58a67d =...