BEYOND BUDGET

(Part IV)

Assalamu alaikum wa Rahmatullahi wa Barakatuh.

In most countries, budgeting focuses on developing an annual plan for income and expenses. However, President Ferdinand R. Marcos Jr.’s administration believes that budget choices have long-term consequences. Actions undertaken today may prove necessary for our future.

Thus, to have a truly inclusive and sustainable economy, our proposed FY 2024 national budget supports programs that advance its goals over the medium term. These include creating more occupations with better quality and a greater number of green jobs; ensuring a level playing field; and upholding public order, safety, peace, and security.

To create more jobs and promote more investments over the medium term, the government will expand the country's infrastructure network, with the Build-Better-More Program receiving a total of ₱1.42 trillion, or 5.3 percent of GDP, well within our target of five to six percent of GDP, and higher by ₱87.3 billion, or 6.6 percent, compared to this year’s ₱1.33 trillion. The bulk of the budget will go to transport-related infrastructure, such as Road Networks and Railway Systems. ₱255 billion of which has been allotted for Flood Control Systems.

Further, under the Build Better More are social infrastructure projects, including provisions for school buildings (₱40.6 billion), hospitals and health centers (₱15.31 billion), and housing and community facilities (₱2.12 billion). These will be complemented by allocations for water supply systems with adequate sanitation facilities (₱5.43 billion) and power supply systems (₱3.58 billion).

The government intends to attract more investments and create more jobs by promoting competitive and innovative industries, particularly among micro, small, and medium enterprises (MSMEs). Hence, to promote the growth of MSMEs, the Department of Trade and Industry's MSME Development Program was allocated ₱783.05 million. This includes ₱100 million for the MSME’s Digitalization Program, supported by locally-funded projects such as the establishment of Negosyo Centers, the One Town, One Product: Next Generation Project, and the Shared Service Facilities Project.

The proposed FY 2024 budget contains ₱1.5 billion for the Pondo sa Pagbabago at Pag-Asenso Program, an accessible and sustainable alternative financing source for at least 40,000 micro-entrepreneurs. Meanwhile, the Cooperative Development Authority will also offer grants for farm gear and equipment as well as livelihood start-up capital assistance to support micro and small cooperatives.

The administration plans to boost Filipino youth's employability through skills training and internships. Hence, the Government Internship Program was given ₱808 million, the Special Program for Employment of Students with ₱829 million, and JobStart Philippines with ₱205 million.

Various TESDA programs were allocated with necessary funding such as: Supporting Innovation in the Philippine Technical and Vocational Education Training System (₱1.8 billion); Special Training for Employment Program (₱1.3 billion); Training for Work Scholarship Program (₱3.2 billion); and the Tulong Trabaho Scholarship Program (₱1 billion) to serve 244,307 enrollees and 219,875 graduates.

The government will also create more quality jobs by advancing research development and innovation in the country. As such, the DOST’s Grants-in-Aid Program, which includes the Science for Change and SET-UP Programs, will receive an allocation of ₱8.23 billion. The scholarship programs under the Philippine Science High School and Science Education Institute will be provided with ₱7.58 billion to support 10,609 high school students and 50,616 scholars.

Some ₱100 million was made available for NEDA’s Innovation Fund, to support enterprises engaged in developing innovative solutions to benefit the country’s underprivileged sectors. Finally, ₱1.33 billion will be provided for the research and development initiatives of SUCs.

With the growing digital economy creating new forms of work and transforming the employment landscape, investing in the digitalization of the bureaucracy is crucial for enhancing its efficiency and generating quality jobs for Filipinos. Thus, ₱38.75 billion was allocated to adopt a whole-of-government approach to digitalization, a 60.6 percent increase from its ₱24.93 billion budget in 2023.

Up-to-date digital infrastructure is also vital for enhancing the digital economy. Hence, ₱1 billion will be allocated for the DICT's ICT Systems and Infostructure Development, Management, and Advisory Program; ₱1.67 billion for the National Government Data Center Infrastructure; and ₱302.86 million for the National Government Portal to connect government departments and improve accessibility. Meanwhile, the National Broadband Plan’s ₱1.5 billion will improve overall internet speed and affordability.

Equally important is the Philippine Development Plan’s (PDP’s) aim to scale up sustainable investments for economic transformation, to create prosperous, inclusive, and resilient societies. Climate change expenditures (CCET) are tracked, with a proposed ₱543.45 billion budget, exceeding the eight percent share commitment under the PDP. Programs tagged under the CCET are the DPWH’s ₱215.64 billion Flood Management Program, DENR’s ₱2.5 billion National Greening Program, and the ₱1.04 billion Protected Areas Development and Management Program.

To climate-proof the Philippines, the National Disaster Risk Reduction and Management Fund for 2024 is pegged at ₱31 billion to fund the reconstruction, rehabilitation, repair, aid, and relief services to areas affected by both natural and man-made calamities. This includes the training of personnel for pre-disaster activities.

Meanwhile, ₱216.64 million was allotted for coastal and marine resource management, ₱2 billion for green open spaces, and ₱1 billion for access to water supply and sanitation services in lagging municipalities.

Lastly, to uphold public order, safety, peace, and security, the Local Government Support Fund shall cover the Financial Assistance to LGUs and the Support to the Barangay Development Program under the National Task Force to End Local Communist Armed Conflict.
The proposed National Budget for 2024 still has many aspects and details to it, but suffice it to say that it has been designed to secure a future-proof and sustainable economy.

Beyond budget, we are determined to make the Philippines a better place to invest in and a better place to live in for all Filipinos, including and especially the future generations. As long as we stay on track with our Agenda for Prosperity, I am certain we will achieve these dreams.

(Amenah F. Pangandaman is the current Secretary of the Department of Budget and Management.)