More pandemic response funds found unused
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MANILA, Philippines — As much as P100.9 billion, or 14 percent of the amount supposed to be used by the government to fight the COVID-19 pandemic, was unspent as of end-2021, according to the Department of Budget and Management (DBM).
A DBM report containing updated spending figures published on Thursday showed that a total of P716.9 billion had been set aside for pandemic response under the Bayanihan to Heal as One Act (Bayanihan 1), Bayanihan to Recover as One Act (Bayanihan 2), and the national budgets for 2020 and 2021.
But as of Dec. 31, 2021, disbursements, or the actual expenditures for programs and projects in response to the health crisis, amounted to only about P616 billion.
This was smaller than the P658.3 billion in total obligated funds—or approved payments for contracts awarded by various agencies to implement programs and projects.
The P4.51-trillion 2021 budget allocated P108.3 billion for COVID-19 response. That money can still be obligated and spent until the end of this year, after President Rodrigo Duterte extended the validity of last year’s general appropriations act (GAA).
Expired
As of Dec. 31, 2021, only P77.4 billion had been obligated and P52.8 billion was disbursed, less than half of the 2021 COVID-19 response fund in the budget.
In the case of the P387.9 billion from Bayanihan 1 at the onset of the pandemic in 2020, obligations totaled P371.6 billion and disbursements amounted to P363.2 billion.
As a result, P16.3 billion worth of Bayanihan 1 funds had expired, while P8.4 billion in obligated items remained unspent. The Bayanihan 1 law expired in June 2020.
Of the P214.2-billion allocated for Bayanihan 2, P204.3 billion was obligated, and P195.6 billion was spent.
In the 2020 national budget, P6.5 billion was allocated for COVID-19 response, of which more than P5 billion was obligated, and P4.4 billion was spent.
The DBM report did not explain why such large amounts were not spent for mitigating the pandemic.
A spokesperson for the DBM did not immediately respond to the Inquirer’s request for comment.
The DBM figures as of Dec. 31, 2021, showed that P7.1 billion was obligated for procuring vaccines, but the Department of Health (DOH) spent only P3.8 billion for the shots. It has yet to pay P3.3 billion worth of contracted vaccines, while P625.1 million remained untouched.
Loans for vaccines
Of the unprogrammed budget for vaccines funded by foreign loans, P54.1 billion was obligated and P35.7 billion was disbursed as of end-2021. From these unprogrammed budgets for vaccines, the government has yet to pay P18.4 billion worth of shots, while P9.7 billion was not yet obligated for vaccine purchases.
The Department of Finance last year obtained loans from the Asian Development Bank, Asian Infrastructure Investment Bank, and World Bank, totaling $2 billion—$1.2 billion for COVID-19 vaccines and $800 million for booster and pediatric shots.
As of end-2021, the DOH obligated P2.7 billion and spent P1.7 billion from the vaccine procurement budget lodged in the P5.2-billion contingent fund. About P1 billion in obligated items remained unpaid to suppliers and P2.5 billion wasn’t obligated.
Of the P445.7 million set aside for the special risk allowance (SRA) of public healthcare workers, the DOH obligated P390.3 million and paid P374.5 million as of the end of last year.
The DBM’S disclosure followed a Commission on Audit (COA) report early this week that said that P4.09 billion, or less than half of a P9.08-billion loan assistance fund for micro, small and medium enterprises (MSMEs), had not been disbursed as of mid-2021.
READ: Billions in Bayanihan 2 loan funds still unused – COA
But SB Corp., a state-run company under the Department of Trade and Industry (DTI) in charge of the fund, said the balance was already down to P2.03 billion as of end-January.
In a statement on Thursday, SB Corp. said Bayanihan 2 had set aside P10 billion for the company, but only P8.08 billion was released by the DBM. Of that amount, P7.93 billion was for loans and the rest was earmarked for mobilization and operating expenses.
It said P4 billion was set aside for travel and tourism-related loans under its for COVID-19 Assistance to Restart Enterprises (CARES) program for its Tourism Rehabilitation and Vitalization of Enterprises and Livelihood (Travel) program.
The remaining P3.93 billion was all loaned out to MSMEs in other sectors.
Slow uptake of loans
Only P278 million worth of loans for the tourism sector had been approved as of Feb. 28 this year, but P524 million in additional loans are in the pipeline.
“The uptake of loans from tourism establishments has been very slow due to the series of lockdowns and the general uncertainty that had governed the sector the past two years,” said SB Corp. president and CEO Luna Cacanando.
She said the corporation approved P6.6 billion in loans to multisectoral MSMEs, “far exceeding” the P3.93 billion for these types of enterprises, or by 168 percent.
More loan applications will follow the easing of restrictions in domestic travel and quarantine requirements for vaccinated international travelers and the efforts to recover from Typhoon Odette (international name: Rai), Cacanando said.
Senate Minority Leader Franklin Drilon said the national government must “immediately” realign the proceeds of loans that were unspent, and use this as cash aid for sectors most affected by the pandemic and spiraling oil prices.
Such realignment will not require prior action from Congress because the Constitution authorizes the President to realign savings in the national budget. —WITH REPORTS FROM ROY STEPHEN C. CANIVEL AND MELVIN GASCON
RELATED STORY
P120.22 billion COVID-19 funds still unspent as of end-September
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