BEYOND BUDGET
Assalamu alaikum wa Rahmatullahi wa Barakatuh.
Last Sept. 19, 2024, I was privileged to join the Fourth Philippines (PH)-Singapore (SG) Business and Investment Summit organized by the PH Embassy in Singapore and the Department of Trade and Industry. The two countries have been staunch development partners for over 55 years, formally establishing bilateral relations in 1969. Since then, the cooperation has grown significantly in various areas such as trade, investment, security, cultural exchanges, and people-to-people relations.
With the theme, “The Next 55 Years: Philippines and Singapore Partnership for a Green and Sustainable Future,” I believe this summit is a testament to both nations’ unwavering commitment to sustainability and climate action. It brought together over 200 participants from the two countries’ public and private sectors to exchange insights on developing intelligent, sustainable, and innovative cities. Further, it served as a platform for our country to showcase our dedication to fostering eco-friendly investments and sustainable economic growth, aligned with President Ferdinand R. Marcos Jr.’s (PBBM’s) third State of the Nation Address pronouncement that, with our country’s inherent geographical vulnerability, “we are proactive advocates for heightened climate responsibility and justice on the global stage.”
I, therefore, agree with Philippine Ambassador Medardo Macaraig that by aligning economic strategies with sustainability goals, “both countries can become leaders in the green and blue economy, setting a model for the rest of the region.”
For his part, Socioeconomic Planning Secretary Arsenio Balisacan outlined the government’s priority strategies for fostering climate-resilient and adaptive ecosystems and communities under the Philippine Development Plan (PDP) 2023-2028. I share his view that significant investments in sustainable and resilient infrastructure are necessary “to enhance our economy’s resilience to shocks, further protect our environment, and even kick-start the creation of high-quality jobs.”
I also concur with Finance Secretary Ralph Recto that “we need more of Singapore’s cutting-edge expertise and technology for our 186 flagship infrastructure projects,” assuring that doing business in the Philippines will be smoother and more attractive with the enactment of the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy or CREATE MORE.
As nurturing a green economy is not just my advocacy but our administration’s top priority, I highlighted during the panel discussion that sustainability is key to our Agenda for Prosperity and our promise to the Filipino people. Thus, to secure a sustainable future for Filipinos, the Department of Budget and Management (DBM) ensures that our national budget is not only inclusive but also climate-responsive and climate-proof. I then discussed our government's thrust to prioritize climate change expenditures through various policy instruments such as the Climate Change Expenditure Tagging (CCET) and the Green Public Procurement Strategy under the New Government Procurement Act enacted last July 20, 2024.
Since adopting CCET in 2015, we have meticulously tracked and monitored environment-related government programs and projects aligned with key focus areas of the National Climate Change Action Plan 2011-2028, including water sufficiency, sustainable energy, and climate-smart industries, among others.
Over the past 10 years, our climate-responsive spending has risen progressively by an average of 32.5 percent. For Fiscal Year (FY) 2025, we anticipate a 123 percent increase from the ₱457.4 billion this year, reaching an impressive ₱1.020 trillion and marking the highest budget increase since CCET was implemented. I am happy to note that this covers 16.1 percent of our proposed FY 2025 budget, surpassing the government’s nine percent target for the same year and its FY 2028 or end-of-term target of 12 percent under the PDP — demonstrating the PBBM administration’s dedication to building a sustainable future.
Meanwhile, to encourage local government units (LGUs) to embrace green budgeting, we launched the Green Green Green Program and the Support and Assistance Fund to Participatory Budgeting, both allocated with ₱1 billion. These aim to provide LGUs access to green open spaces and active mobility infrastructures, as well as safely managed and resilient water and sanitation services and climate-smart evacuation centers, respectively.
Further, to strengthen disaster resiliency, the allocation for the National Disaster Risk Reduction and Management Fund will increase by 51.2 percent to ₱31 billion. This fund will provide aid, relief, and rehabilitation services to communities affected by calamities. On top of this, the Quick Response Fund, lodged under the respective budgets of “first responder” implementing agencies, is allocated with ₱7.7 billion.
The DBM is also pursuing the Green Public Procurement Strategy that integrates green choices in public procurement by encouraging departments and agencies to procure common-use supplies and equipment with green specifications. This will develop local green markets, set an example for private-sector procurement, attract green investments, and broaden competition in government procurement.
Beyond budget, with the growing climate-related investments and a strong focus on green initiatives, the Philippines is well on its way to becoming a model for sustainable development in the region. As we forge strong partnerships with our neighbors in our Bagong Pilipinas, we remain steadfast in our mission to build a resilient and sustainable future for all. Hence, I call on our development partners and stakeholders to join us in this critical mission. I believe that together we can take the green path towards our Agenda for Prosperity.
(Amenah F. Pangandaman is the Secretary of the Department of Budget and Management.)