MANILA, Philippines —The national government can save billions of pesos through the rightsizing program, a Department of Budget and Management (DBM) official said on Tuesday.
During the consultative meeting of the Senate Bill No. 890 or the Rightsizing the National Government Act of 2022, DBM Undersecretary Wilford Wong said that the savings depend on the “tier or the number of employees or the programs that will be rightsized.”
“Initial data lang po muna (From the initial data), if three percent are rightsized from this program, around P3 billion worth of savings ang magegenerate (will be generated),” Wong added.
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Senator Sherwin Gatchalian then pointed out that projected P3 billion savings from the three percent of the rightsizing program is a “little amount” compared to the P6.3 trillion budget of the national government for 2025.
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“If seven percent will be rightsized, the net savings will be approximately P8.7 billion,” Wong added.
Meanwhile, Senate President Francis Escudero noted that the figures provided by Wong are “incomplete” given that separation pay has to be provided.
“You will not realize that on the first year that you abolish certain positions because you have to pay separation. Maglalabas ka muna ng pera bago mo kitain ’yan (You have to shell out money before you earn it),” Escudero said.
“So on that assumption, include also in your answer to Senator Win today and in the future time, kailan marerealize yung three billion [pesos] if three percent are rightsized (when the P3 billion will be realized if three percent are rightsized),” Escudero added.
SB No. 890, filed by Escudero in 2022, stated that rightsizing is expected to “promote efficiency, effectiveness and economy in the delivery of public service.”
Escudero earlier said that the bill aims to appoint rightful officials to their positions to fulfill their roles for the public.
DBM Secretary Amenah Pangandaman previously said that with the proposal, the government may save “a significant amount of the budget” that could be used to fund other programs.