House starts plenary debate on proposed P2.6T budget

MANILA, Philippines – The House of Representatives on Monday started its plenary deliberations on the proposed P2.606-trillion national budget for 2015.

In his sponsorship speech before the floor, Davao city Rep. and Appropriations committee chairman Isidro Ungab said the proposed budget, excluding the mandatory appropriations, is composed of P1.863 trillion in new appropriations, consisting of P1.740 trillion in programmed new appropriations and P123 billion in unprogrammed appropriations (which are described as “standby appropriations” with no funding source yet).

Meanwhile, the automatic appropriations amount to P866.2 billion, Ungab said.

The lawmaker also said the lower chamber is only expected to debate on P937.5 billion or 36 percent of the budget, the portion that is not part of mandatory items, Ungab said.

The mandatory appropriations includes personnel services worth P761.745 billion, financial expenses worth P374.543 billion (including debt servicing of P372.863 billion), Internal Revenue Allotment worth P389.860 billion,  other automatic appropriations worth P72.698 billion, and foreign assisted projects worth P69.574 billion, Ungab said.

“The balance of 36 percent  will support the regular maintenance and other operating expenses (MOOE) of various departments and agencies of government amounting to P488 billion and about P449.5 billion for capital outlay for the implementation of various infrastructure projects and the acquisition of machinery and office equipment, among others,” Ungab said.

“However, stripped of the virtually mandatory items amounting to P1.668 trillion or 64 percent of the total budget, only about 36 percent or P937.5 billion may be the subject of Congressional debate,” he added.

Ungab said the proposed 2015 budget is 15.1 percent higher than the approved 2014 budget worth P2.265 trillion.

“The 2015 budget is anchored on the premise that no one, especially the poor and vulnerable will be left behind,” Ungab said.

He said these sectors, from the biggest share to the least, have the following allocations:

By expense class, however, maintenance and other operating expenses (MOOE) share the biggest bulk at P935.5 billion or 35.9 percent of the budget; followed by personnel services to the tune of P761.7 billion or 29.2 percent; capital outlay at P534.2 billion or 20.5 percent; and financial expenses, pertaining to interests and bank charges, in the amount of P374.6  billion or 14.4 percent.

By departments, however, the allocations, from highest to lowest, are:

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