Teodoro: Decrease in capital outlay funds can affect AFP modernization

MANILA, Philippines — Defense Secretary Gilbert Teodoro on Tuesday raised concern on the decline of funds for the agency’s capital outlays under the proposed 2027 national budget, emphasizing that it will affect the modernization of armed forces. 

Teodoro underscored that things become more expensive in modernizing the armed forces. He noted that equipment used and support systems go hand in hand for modernization to become sustainable. 

READ: DND to Senate: Amend modernization law; it ‘doesn’t make sense’

“In modernizing the armed forces, there’s another factor that needs to be taken into consideration. It’s the infrastructure we have to house to support and maintain this capability which is sadly lacking in our budget,” Teodoro said during the House committee on appropriations’ hearing on the proposed budget of the Department of National Defense (DND). 

“For several years, the capital outlay has not been financed and it’s totally on our modernizing,” he added. 

Under the 2027 National Expenditure Program (NEP), the DND was allotted a regular fund of P324.632 billion, which was 43.32% less than the agency’s proposed budget of P572.787 billion. Of this figure, P1.599 billion was allocated for the Office of the Secretary; P312.777 billion for the Armed Forces of the Philippines; and P10.255 billion for DND Civilian Bureaus.

Teodoro then pointed out the decrease in capital outlays in the agency’s budget throughout the years. Under the NEP, the capital outlay was allotted P32.671 billion, which was significantly less than the proposed budget of P239.733 billion. 

Teodoro also said that modernization is anchored on “building core systems” which he said the agency is prioritizing, including information technology and cybersystems. 

On the other hand, the 2027 NEP allotted P179.453 billion for personnel services, a 8.87 percent decrease from the proposed P196.930 billion; and P112.507 billion for maintenance and other operating expenses, which was a 17.35 percent decline from the proposed P136.124 billion. /mr