To ensure the efficient use of limited resources and to provide additional fiscal space for new public programs and projects, the Department of Budget and Management (DBM) encourages government agencies to revisit and reevaluate their budget proposals for their ongoing programs.
The National Budget Memorandum (NBM) No. 144, which provides the Budget Priorities Framework for the preparation of the FY 2023 National Budget, directs government agencies to ensure that the revisited Tier 1 (existing programs) and proposed Tier 2 (new programs) budget proposals are (1) responsive to the expenditure directions and/or key sector strategies for 2023; (2) implementation-ready; (3) reflective of the agency’s absorptive capacity; and (4) aligned with the plans and priorities of the incoming administration.
Moreover, Tier 2 budget proposals for new programs must put primacy on health-related expenditures, disaster-risk management, social security, digital economy/government, local government support, and growth-inducing expenditures which include crucial and shovel-ready infrastructure projects, among others. These priorities shall help accelerate and sustain economic recovery from the global pandemic by strengthening the healthcare system and by building a stronger economy.
Budget Proposals to be revisited are divided into two tiers as part of the two-tier budgeting approach (2TBA). The 2TBA aims to improve the effectiveness and transparency of public spending by separating budget deliberations on existing programs and projects (Tier 1) from new spending proposals or projects for expansion (Tier 2).
Given the medium-term macroeconomic assumptions and fiscal aggregates approved by the Development Budget Coordination Committee (DBCC) last May 24, 2022, the proposed national budget for FY 2023 amounts to P5.268 trillion (22.1 percent of GDP), 4.9 percent higher than this year’s national budget.
With the incoming administration, the DBM continues to be committed to the prudent and judicial allocation of public funds to support the delivery of services to provide a better quality of life for Filipinos.
For more information on the FY 2023 Budget Priorities Framework, both NBM no. 143 and NBM no. 144 may be accessed on the DBM website: https://www.dbm.gov.ph/index.