Gov’t to fund budget with loans
Saying “brighter days” lie beyond currently bleak times, President Rodrigo Duterte urged Congress to pass the P4.506-trillion budget for 2021 that will help the country “reset, rebound and recover” from its worst recession in decades.
In a 48-page message usually prepared by the budget department for the President, Mr. Duterte said the country faced reduced revenues because of the COVID-19 pandemic, but local and foreign loans will help finance a budget deficit that is expected to reach P1.749 trillion.
Budget planners expected revenues to amount to P2.717 supported by P 3.025 trillion in foreign and domestic loans to fund public spending that was increased in a bid to revive the economy.
“We have anchored the proposed national budget for the forthcoming 2021 fiscal year on the most urgent priority—to reset our momentum and action, rebound from the debilitating effects of the pandemic on the health and economy, and fully recover from current and continuing impacts of the crisis,” the budget message read.
Strong fiscal foundation
Mr. Duterte assured taxpayers that the country’s strong fiscal foundation permits an increase in public borrowings, as he stressed that increased deficit financing is “necessary and is justified.”
“Tax collections are down. But this pandemic does not excuse us from our obligation to spend more for our people, especially with the threat of the acceleration of the COVID-19 contagion still within the horizon,” he said.
The government proposed a “hefty” P1.107 trillion to restart and accelerate the Build, Build, Build infrastructure program because its development is “indispensable” in reviving the economy during and after the pandemic, citing the 140,000 to 220,000 jobs to be created by infrastructure projects.
He also asked Congress to allocate P171.2 billion to fund social protection programs for poor families reeling from the impact of the pandemic.
“It is the vulnerable and marginalized sectors—the poor in particular—who will be most affected because of the limited economic mobility and the high cost of medical care,” the President said.
P113.8B for 4Ps
Of the Department of Social Welfare and Development’s (DSWD) proposed budget, P113.8 billion will be provided for the continued implementation of our Pantawid Pamilyang Pilipino Program (4Ps) to give educational and health grants and rice subsidy to 4.4 million household beneficiaries.
Another P23.2 billion will be allocated for the P500 monthly social pension of 3.8 million indigent senior citizens, the President said.
He added that another P12 billion in financial assistance will be given to 1.7 million individuals and families through the DSWD’s Alternative Family Care Program, Protective Services Program, and Comprehensive Program for street children and families, and Badjaos.
The proposed budget also includes P4.1 billion for the fast-tracked implementation of the Philippine Identification System (Philsys) to “assist in cleaning up the registries of the 4Ps and enable the faster provision of financial subsidies to the poor.”
Another P85 million will fund the Community Based Monitoring System to help improve local residence registries and complement the Philsys.
P2.2B for Balik Probinsya
To address overcrowding in Metro Manila, the DSWD will receive P2.2 billion for the Balik Probinsya Program in helping families relocate to their provinces.
Some of the key allocations for social protection programs include:
• Of the P27.5 billion budget for the Department of Labor and Employment, P11.1 billion will fund a Livelihood and Emergency Employment program benefitting 2.1 million beneficiaries.
• P9.9 billion for the Government Internship Program;
• P810 million for the DOLE Integrated Livelihood Program for 23,007 beneficiaries;
• P392 million in cash assistance for 26,107 displaced formal sector workers under the Adjustment Measures Program;
• P2.3 billion for the Department of Trade and Industries’ MSME Development Program.
