Where will P3.8-T 2019 cash-based budget go?

Maria Romero
PUBLISHED July 11, 2018 03:10 pm

(Inside Manila) The government dictates the level of resources for its agencies based on the allocated budget committed to them annually. This year, a beaming P3.767 trillion was approved for spending but in 2019, budget will be slightly lower.


On Monday night during the Cabinet meeting, President Rodrigo Duterte approved the proposed P3.757-trillion cash-based National Budget for 2019. Here’s where that trillions will go:



2019 National Budget allocations. Graphics by Laila Villamor


Presidential Spokesman Harry Roque said at a press briefing in Indang, Cavite province on Tuesday that P1.185 trillion (31%) would be disbursed for personal services; P752.7 billion (20%) for capital outlay; P640.6 billion (17.1%) for local governments; P562.9 billion (15%) for maintenance overheads; P414.1 billion (11%) for debt payments; P181.7 billion (5%) for government-owned and -controlled businesses; and P14.5 billion (0.4%) for tax expenditures.


These allocations are anticipated to reflect a more accurate annual outputs and actions of the government as it widens fiscal deficit program of P624.4 billion, equivalent to 3.2 percent of gross domestic product (GDP).


All-inclusive Budget System


After last week’s Cabinet-level Development Budget Coordination Committee (DBCC) meeting, Department of Budget and Management (DBM) secretary Benjamin Diokno said that from the current obligation-based system, the department prearranged a system shift to cash-based budget in 2019 to decline underspendings which they have been trying to reduce over the past two years.


Under cash-based scheme, agencies will not be allowed to submit projects that are not implementation-ready so that they will be forced to spend their budget within fiscal year in order not to lose them.


In February 2017, DBM has reported an underspending sharp drop rate of 2.4% from 3.65 in 2016. This year, the budget agency is expecting to hit lower expenditure rates. The administration also plans to jack up spending on public infrastructure and social services to increase GDP growth to7-8% year-on-year until 2022.


DBM is set to submit the proposed budget to Congress on July 23 to coincide with the president’s third State of the Nation Address.


Without budget limits, disbursements can exceed revenues and may result in monetary shortfalls. Do you think this newly projected budget system will improve our government agencies? Share us your thoughts!

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