House research: 41.6% of proposed 2024 budget are special purpose funds
MANILA, Philippines — A report from the House of Representatives research department showed that 41.6 percent of the proposed 2024 national budget are special purpose funds (SPFs) or allocations set aside for specific purposes.
A 54-page table prepared by the Congress Policy and Budget Research Department (CPBRD) compared the amount of SPFs in the proposed 2024 national budget or the National Expenditures Program (NEP) to past editions of the NEP — showing that for 2024, the executive sought for P2.398 trillion.
This is over P364 billion more than the SPFs allocated in the 2023 NEP.
In a separate, 78-page report also published by the CPBRD, it is said that P3.369 trillion of the P5.768 trillion proposed budget — or 58.4 percent of the NEP — will go to different departments.
For the SPF, however, which accounts for the remaining 41.6 percent, its recipients have so far not been specified.
“The combined allocations for departments in 2024 amount to P3,369.0 billion which is 58.4% of the total expenditure program. This is P134.7 billion or 4.2% higher compared to the 2023 level,” CPBRD said.
“The remaining 41.6% (equivalent to P2,398.6 billion) are Special Purpose Funds (SPFs)—the recipient agencies have not yet been identified during budget preparation, but funds will be available for allocation in addition to the built-in appropriations of departments/agencies during budget execution,” it added.
While it is yet to be determined where the SPF would specifically go, a check on the request showed that P1.008 trillion or 42 percent of the SPF have been earmarked for local government units (LGUs).
Increasing SPF share
The CPBRD also noted that the budget share of the departments have been declining while SPFs have been growing steadily in recent years — increasing by P216.7 billion in 2023 despite the NEP for that year only increasing by P92.8 billion.
For the 2024 proposed budget, CPBRD said the SPF growth accounted for almost three-fourths of the P499.6 increment in the NEP.
“[…] the budget share of the departments steadily declining from 64.9% in 2022 as a result of the Special Purpose Funds (SPF) growing much faster in recent years. In 2023, SPF grew by P216.7 billion even as the overall budget grew only by P92.8 billion,” CPBRD said.
“Next year’s proposed SPF (P2,398.6 billion) is P364.9 billion higher—accounting for close to three-fourth of the P499.6 billion budgetary increment. In terms of budget share, SPF accounts for 35.1% of the national budget in 2022, and this steadily grew to 41.6% in 2024,” it added.
In its glossary for the 2023 NEP, the Department of Budget and Management said SPFs are “appropriations in the GAA provided to cover expenditures for specific purposes for which recipient departments/ agencies have not yet been identified during budget preparation.”
Listed as examples of SPFs are:
- funds for the National Disaster Risk Reduction and Management Council (Calamity Fund)
- Contingent Fund
- Pension and Gratuity Fund
- Miscellaneous Personnel Benefits Fund
