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Today, President Rodrigo Roa Duterte signed into law the P5.024 trillion Fiscal Year (FY) 2022 General Appropriations Act (GAA). The budget is equivalent to 23.3 percent of the gross domestic product, and larger by 11.5 percent than the FY 2021 budget.

Anchored in the theme “Sustaining the Legacy of Real Change for the Future Generations,” the FY 2022 National Budget is set to inspire actions that focus on building resilience amidst the pandemic, sustaining the momentum towards recovery, and continuing the legacy of infrastructure development. 

By Allotment Class

Personnel services expenditures amount to P1.405 trillion, or 28.0 percent of the P5.024 trillion expenditure program for 2022. This includes the requirements for the Military and Uniformed Personnel (MUP) pension arrears and the payment for the continuous hiring of healthcare workers and teaching personnel, among others. 

Meanwhile, Maintenance and other operating expenditures (MOOE)[1] will reach P2.599 trillion next year, which is equivalent to 51.7 percent of the FY 2022 national budget. This shall support the requirements for the DA’s priority agricultural programs, DOH’s health banner programs, DSWD’s social protection programs, and DOLE’s Adjustment Measures Program, among others.

Finally, Capital Outlays is pegged at P1.019 trillion or 20.3 percent of the FY 2022 GAA, which is composed of infrastructure outlays, budgetary support to GOCCs, capital transfers to local government units and other capital outlays. 

Top 10 Departments

By budget allocation, the Education Sector which includes the DepEd, SUCs and the CHED   shall receive the highest allocation with P788.5 billion, higher by P36.8 billion or 4.9 percent compared to last year’s budget. 

This is followed by other big-spending agencies which is summarized below:

Rank Agency

Allocation

(in billion pesos)

1 Education (DepEd, CHED, SUCs, TESDA) 788.5
2 Department of Public Works and Highways (DPWH) 786.6
3 Department of Health (DOH) and PhilHealth 268.4
4 Department of Interior and Local Government  (DILG) 251.3
5 Department National Defense (DND) 220.9
6 Department of Social Welfare and Development (DSWD) 205.0
7 Department of Agriculture (DA) and National Irrigation Administration (NIA) 102.5
8 Department of Transportation (DOTr) 75.8
9 Department of Labor and Employment (DOLE) 51.3
10 The Judiciary 47.0
TOTAL: 2,797.3

*Numbers may not add-up due to rounding off

 

Banner Programs and Projects for FY 2022

Pagbabago: Inequality-Reducing Transformation

Given the persisting pandemic and the learning acquired from the events that transpired last year, the FY 2022 GAA will prioritize the people’s health by ensuring affordable and accessible healthcare for all, as stated in the Universal Health Care (UHC) Law. 

To concretize this, budgetary support is provided for the National Health Insurance Program (P80.0 billion) which will be used to subsidize the health insurance premiums of 13.2 million indigent families and 7.3 million senior citizens. Health services will also be further improved with P23.0 billion under the Health Facilities Enhancement Program which will enable the construction, upgrade, expansion, and procurement of equipment for health facilities and hospitals.

To guarantee the streamlined operation of the current health system, a total of P88.9 billion is allocated for the Health Facilities Operations Program (P56.3 billion) and the procurement of drugs, medicines, and vaccines (P32.6 billion). Meanwhile, the Human Resources for Health Deployment Program is allotted P17.0 billion to fund the salaries and benefits of public health personnel. 

Moreover, P983.0 million goes to the establishment of the Virology Science and Technology Institute of the Philippines, which will be the country’s premier virology facility that will help the government study and address novel, emerging, and re-emerging viruses. The Philippine Genomic Information Resource Hub is also given P200.0 million to sustain its genomic biosurveillance efforts. 

Finally, the FY 2022 national budget also includes a total of P51.0 billion for the Special Risk Allowance of Health workers, where P9.0 billion is lodged under the Department of Health’s budget while the remaining P42.0 billion can be tapped through Unprogrammed Appropriations. Moreover, P48.2 billion is also allocated for the purchase of  COVID-19 booster shots of fully vaccinated Filipinos, which is allocated under the DOH’s budget (P2.8 billion) and under Unprogrammed Appropriations (P45.4 billion).

Unprogrammed Appropriations may be tapped when any of the following exists: (1) excess revenue collections; (2) new revenue sources; and (3) approved loans for foreign-assisted projects. 

Malasakit: Strengthening the Social Fabric

To foster socioeconomic recovery, the FY 2022 budget is also formulated to provide essential funding requirements to safeguard and support displaced workers affected by the COVID-19 pandemic. As such, P26.5 billion is allotted for the Tulong Panghanapbuhay sa Ating Disadvantaged/Displaced Workers (TUPAD) Program and Government Internship Program (GIP) while P52.7 million is allocated for the Reintegration Services Program. 

Social protection programs of the DSWD such as the Pantawid Pamilyang Pilipino Program (P107.7 billion), Protective Services for Individuals and Families in Difficult Circumstances (P18.0 billion) and Sustainable Livelihood Program (P4.7 billion) is also also supported to safeguard the poor and the vulnerable.

The FY 2022 national budget also provides budgetary support for priority education programs, such as the Basic Education Learning Continuity Plan (P14.7 billion) to cover the development, reproduction, and delivery of learning modules, and the Computerization Program (P11.8 billion) to cover the procurement of ICT-related equipment.

A vital part in the creation of a better Filipino society is a modernized system of governance. In line with this, the FY 2022 National Budget also allotted P1.5 billion for the National Broadband Plan while P4.8 billion is allocated for the rollout of the Philippine Identification System, which will eventually expedite the distribution of government assistance among Filipinos. Meanwhile, to improve the assessment of anti-poverty measures, P574 million is intended for the Community-Based Monitoring System of the government.

Patuloy na Pag-unlad: Increasing Growth Potential

The government will continue to implement the Build, Build, Build program which shall fund the construction of road networks, flood control systems, hospitals and health centers, school buildings, housing, among many others.

In particular, the DPWH and the DOTr will receive P786.6 billion and P75.8 billion respectively, to accelerate the Administration’s flagship programs under the Build Build Build. Such infrastructure programs include the Network Development Program (P127.0 billion), Flood Management Program (P129.0 billion), Rail Transport Program (P23.1 billion) and the Land Public Transportation Program (P16.0 billion), among others. 

Pagpapatibay: Fortifying the Foundations for Sustainable Development

In line with the objective to make progress inclusive, the FY 2022 National Budget adheres to the recent Supreme Court ruling on the Mandanas-Garcia case wherein the total National Tax Allotment (NTA) share of local government units (LGUs) for next year will be P959.04 billion, higher by 38 percent than the FY 2021 shares of LGUs.  This ruling is therefore another milestone towards genuine local autonomy as this presents a unique opportunity for LGUs to improve the efficiency and effectiveness of public services, by gradually taking on the functions which are already devolved to them under the 1991 Local Government Code.

The 2022 national budget is a product of the many learnings of the administration, especially from last year, and its commitment to make progress that is inclusive and evident to every Filipino. With its implementation, the nation can look forward to a healthy, educated, and protected society that will drive the country to sustainable growth.

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[1] This also includes allocations for Financial Expense (FinEx) under the FY 2022 GAA

 

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