A pleasant morning to House Speaker Ferdinand Martin Romualdez; Majority Leader Manuel Jose Delipe; Minority Leader Marcelino Libanan, Secretary General Reginald Velasco; House Committee on Appropriations Chairperson Elizaldy Co and Senior Vice Chairperson Stella Luz Quimbo, and other honorable members of the 19th Congress; my fellow workers in government and our media representatives who are here today.
Assalamu alaikum wa Raḥmatullahi wa Barakatuh.
On behalf of President Ferdinand R. Marcos Jr., it is my honor and privilege to transmit to Congress—for its scrutiny, deliberation and approval—the Fiscal Year (FY) 2024 National Expenditure Program (NEP). The FY 2024 NEP amounts to Php 5.768 trillion, equivalent to 21.7 percent of GDP. It is higher by 9.5 percent compared to the FY 2023 General Appropriations Act.
Anchored on the theme, “Agenda for Prosperity: Securing a Future-Proof and Sustainable Economy,” the proposed national budget is framed based on the 8-Point Socioeconomic Agenda and will continue to support the goals of the Philippine Development Plan 2023-2028.
Ensure Food Security
In our quest for food security and proper nutrition for Filipino families, the FY 2024 NEP will continue to support programs that boost the local production of major agricultural commodities including rice with Php 30.87 billion, corn with Php 5.28 billion, and high-value crops with Php 1.94 billion.
To further enhance productivity and ensure the sustainable use and management of soil resources, some Php 916 million will be provided for the National Soil Health Program.
Higher investments will also be provided for agricultural support services such as irrigation with Php 31.18 billion and the construction and rehabilitation of fish ports across the country with Php 4.94 billion. Moreover, with the enhanced GEOAGRI map for farm-to-market roads, some Php 17.27 billion will be allotted for the construction of 1,144.58 kilometers of farm-to-market roads in key production areas. The government also stands ready in times of crises such as the El Niño by providing Php 9.00 billion for the Buffer Stocking Program.
Reduce Transport and Logistics Costs
As highlighted by PBBM during his second State of the Nation Address (SONA), infrastructure development is one of the key drivers of our continuing economic growth. As such, we will sustain this momentum through the Build Better More Program with Php 1.42 trillion, equivalent to 5.3 percent of GDP.
This will prioritize physical connectivity infrastructure such as road networks and railway systems, which will cover almost half or 43.5 percent of the budget. Specifically, this will support major transport programs such as the North-South Commuter Railway System and the Metro Manila Subway Project Phase I.
Significant budgetary support will also be provided for social infrastructure development which includes school buildings with Php 40.59 billion; hospitals and health centers with Php 15.31 billion; as well as water and power supply systems with a combined allocation of Php 9.01 billion.
Reduce Energy Costs
When it comes to lowering energy costs, renewable energy is our way forward. Hence, we will aggressively promote renewables and target a 35 percent share in the power mix by 2030. This will be achieved through the implementation of the Renewable Energy Development, Energy Efficiency and Conservation, and Alternative Fuels and Technologies Programs with Php 501 million. Alongside power generation, we will relentlessly pursue total electrification through the NEA’s National Rural Electrification Program with Php 2.30 billion.
Address Learning Losses
Echoing the pronouncement of our President, alongside the strengthening of our economy, we will also invest heavily in human capital development through education, health, and social protection.
As mandated by the Constitution, Education will remain our top priority with a total budget of Php 924.7 billion, equivalent to 16.0 percent of the FY 2024 NEP.
The education budget will support DepEd’s MATATAG Agenda for Basic Education through the provision of higher allocations for textbooks and other instructional materials amounting to Php 12.04 billion. Furthering the cause of better nutrition for improved learning, we have also allocated Php 11.71 billion for the School-Based Feeding Program, among others.
Access to quality education will also be at the forefront of the government’s education agenda through the Universal Access to Quality Tertiary Education (UAQTE) with some Php 51.12 billion. Of this amount, Php 21.70 billion will go to our 116 SUCs. Meanwhile, the Education Assistance and Subsidies will receive Php 41.05 billion.
Improve Health
Applying the lessons from the pandemic, the government has refocused its health priorities on ensuring reliable and accessible quality public health services for all.
Consequently, the Health Facilities Enhancement Program of the DOH will be provided with Php 22.98 billion for the construction, rehabilitation, and upgrading of health facilities, rural health units, and polyclinics, as well as the purchase of medical equipment and transport vehicles.
The government will also continue to expand access to quality health services by subsidizing the health premiums of the vulnerable sector through the National Health Insurance Program with Php 101.51 billion and by covering the medical assistance of 1.31 million indigent and financially incapacitated patients with Php 22.26 billion.
Strengthen Social Protection
In support of the Social Protection Floor Framework of NEDA, a higher allocation of Php 112.8 billion will be provided to assist 4.4 million households under the DSWD’s Pantawid Pamilyang Pilipino Program.
The recently launched Food STAMP or Philippine Food Strategic Transfer and Alternative Measures Program will be supported next year with Php 1.89 billion to address the nutrition needs of food-poor Filipinos.
Meanwhile, the allocation for Social Pension for Indigent Senior Citizens has been doubled to Php 49.81 billion to cover the increased monthly allowance from Php 500 to Php 1,000 for more than four million indigent senior citizens.
Housing being another priority of PBBM, the proposed national budget will also support the administration’s flagship housing program, ang Pambansang Pabahay Para sa Pilipino Program, with Php 9.0 billion. It is envisioned to construct six million decent and affordable housing for Filipino families within six years.
Ensure Sound Fiscal Management
We are also determined to ensure sound fiscal management.
Hence, the Philippine government is at the forefront of leveraging digitalization by adopting the Integrated Financial Management Information System or IFMIS throughout the bureaucracy following Executive Order No. 29, s. 2023.
To this end, some Php 2.92 billion will be allocated to improve the ICT systems of the Bureau of Internal Revenue for the efficient collection of revenues. The DBM will also continue to implement its Public Financial Management Program with Php 387.5 million which includes the Budget and Treasury Management System.
Enhance Bureaucratic Efficiency
Further, with the pronouncement of the President during his SONA that the government must fully embrace digitalization to provide better public service delivery, the FY 2024 NEP will allocate Php 38.75 billion to support the government’s ICT expenditures.
The Philippine Identification System (PhilSys) will be at the core of this digitally transformed network of government services which will continue to be supported with Php 1.61 billion. Some Php 145.53 million will also be allocated for the strengthened implementation of the Ease of Doing Business and Efficient Government Service Delivery Act to reduce bureaucratic red tape.
Climate Change Expenditures
Towards sustainability, a total of Php 543.45 billion has been earmarked for climate change mitigation and adaptation. This is equivalent to 9.4 percent of the total proposed budget, exceeding our commitment of 8.0 percent share under the Philippine Development Plan.
Recognizing its fundamental importance, the bulk of climate change expenditures will be allocated for water sufficiency projects with Php 294.46 billion to benefit communities all over the country.
We will also provide the Philippine Space Agency with Php 1.7 billion to better monitor our land and marine resources, as well as terrestrial ecosystems, to ensure both agricultural productivity and environmental integrity. Of which, Php 1.2 billion will be used for the Multispectral Unit Land Assessment (MULA) Satellite Development’s second year funding requirement.
BARMM
Finally, to achieve lasting peace and progress in the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM), the government will continue to provide financial assistance for BARMM amounting to Php 80.6 billion, which includes the Annual Block Grant with Php 70.5 billion, reflecting an increase of 9.0 percent. Meanwhile, about Php 1.0 billion will be set aside for the Marawi Siege Victims Compensation Program. Php 5.3 billion has also been appropriated for the PAMANA or the PAyapa at MAsaganang PamayaNAn Program for infrastructure development in BARMM to be implemented by the Office of the Presidential Adviser on Peace, Reconciliation and Unity.
In closing, let me remind everyone that every peso of the Php 5.768 trillion FY 2024 national budget was optimized so we can remain on track with our Agenda for Prosperity. It is the Administration's fervent hope that this budget will continue to lay the groundwork for future-proofing the economy and making the country's growth inclusive and sustainable, not just for the Filipinos of today, but also for the future generations.
Thank you and we look forward to the DBCC briefing on August 10 wherein details of the budget will be discussed further and more thoroughly.
Mabuhay ang mga Pilipino at ang Bagong Pilipinas.
Wabillahi Tawfiq Wal Hidaya, Wasalamu alaikum wa rahmatullahi wa Barakatuhu.
