On his second State of the Nation Address (SONA), President Duterte submitted to the Congress the administration’s proposed 2018 national budget. This is the earliest submission of a proposed budget since the Ramos administration.
As provided in the Constitution, the President is required to submit the proposed budget to Congress within a month after the start of regular session. (Section 22, Article VII)
The early submission of the proposed budget, the second budget crafted under the Duterte administration, will allow Congress more time to closely examine and scrutinize it before passing it into law.
The P3.767 trillion proposed budget was presented by Department of Budget and Management (DBM) Secretary Benjamin E. Diokno and approved by President Duterte during the 16th Cabinet meeting in Malacanang on July 3.
Representing 21.6% of the projected gross domestic product (GDP) for 2018, the proposed budget is a 12.4% increase from the 2017 budget of P3.35 trillion.
Education, infrastructure, public transport
In line with the Duterte administration’s thrust to reduce poverty and promote economic growth, the largest allocations will go to the education sector and the infrastructure development program, “Build, Build, Build.”
A total of P691.1 billion makes up the combined budgets of the Department of Education (DepED) with P613.1 billion, the Commission on Higher Education (CHED) with P13.5 billion, and State Universities and Colleges (SUCs) with P64.6 billion.
Part of the education sector budget will fund the construction of 47,000 classrooms, the repair and rehabilitation of 18,000 classrooms, purchase of 84,781 school seats, and creation of 81,100 teaching positions.
The budget for Government Assistance and Subsidies for students and teachers has been increased from P35.8 billion this year to P39.3 billion in 2018, while P4.8 billion has been allocated to support the student beneficiaries of CHED’s Tulong Dunong Program.
The budget for the education sector will also fund the Education Service Contracting Program which will allow 1,077,230 deserving elementary graduates to study in private Junior High Schools, as well as the Voucher Program, which will enable 1,771,968 Senior High School students to enroll in specialized tracks in private or public universities and colleges.
35,945 licensed private school teachers participating in the Teacher Salary Subsidy program will also benefit from the increased allocation for 2018.
The government is also targeting to fully implement the Unified Financial Assistance System (UniFAST) Act, which will integrate government-funded financial assistance programs for college students.
Meanwhile, the Department of Public Works and Highways (DPWH) receives the second highest share among the agencies, with P643.3 billion, while the Department of Transportation gets P73.8 billion, a 32.6% increase from its 2017 budget of P55.7 billion.
The sizable allocation given to the DPWH and DOTr will allow the government to intensify its numerous projects aimed at improving mobility and connectivity in the country, decongesting urban areas, and establishing modern and economical transport systems for the public.
For 2018, P1.097 trillion has been set aside to support the Build, Build, Build Program. This amount is an increase of 27.8% from its 2017 adjusted level of P858.1 billion. The allocation puts the infrastructure budget at 6.3 percent of GDP next year in line with the administration’s emphasis on infrastructure development.
New roads and highways will be built through an allocation of P19.4 billion, a whopping 185.6% hike from the previous budget of P55.4 billion. This will allow the transport of more people and goods in all regions of the country. In addition, the DPWH will also construct new bypasses and diversion roads for an amount of P49.3 billion to connect freight centers and alleviate the daily traffic problem.
Rail, air, and sea transport
Various rail, air, and sea transport development and improvement projects will be funded by the 2018 budget, including the Land Public Transportation Program, which has been given P12.6 billion; the P5.4-billion Cebu Bus Rapid Transit (BRT); the P1.8-billion Metro Manila BRT-Line 1, which will serve around 300,000 daily commuters travelling from Espana Boulevard to Quezon Avenue; and the P3.1-billion Metro Manila BRT-Line 2, which will serve 1.6 to 2 million people commuting along EDSA.
For 2018, P26.0 billion has been allocated for the rail transport program which will focus on the construction of new railways and the rehabilitation, modernization, and extension of existing railways. Included in the list of railways for construction or improvement are the Mindanao Railway Project Phase I, which will connect Davao City to Surigao and Cagayan de Oro; the P7.1-billion North-South Railway Project Phase 2-PNR South; the P1.3-billion LRT Line I South Extension (Cavite) Project; the P895-million LRT Line 2 East Extension Project; and the P608-million LRT Line 2 West Extension Project.
Some of the airports in line for improvement and development are the Clark International Airport in Pampanga, which has been given P2.7 billion for the upgrading of its night-landing capabilities, and the Bicol (New Legazpi) International Airport in Albay, with a budget of P900-million. The enhancement of these two airports will assist in decongesting the Ninoy Aquino International Airport.
The 2018 proposed budget has also set aside amounts for the New Bohol (Panglao) International Airport Development Project, with P386 million; Kalibo Airport, with P920 million; Tacloban Airport, with P716 million; Cauayan Airport, with P306 million; and Zamboanga International Airport, with P221 million.
The modernization of the country’s seaports is a priority of the government, hence the allocation for the construction, upgrading, rehabilitation, and expansion of several ports and harbors including the Al-Barka Ports Cluster, which has been given P50 million; Volcano Island Port in Talisay, Batangas, with P30 million; Agkawayan in Looc, Occidental Mindoro, with P42 million; Taganak Port in Taganak, Turtle Islands, Tawi-Tawi, with P71 million; San Roque Port in Palimbang, Sultan Kudarat, with P17 million; Pangutaran Port in Pangutaran, Sulu, with P20 million; and Dolores Port in Dolores, Eastern Samar, with P50 million.
Health programs, Conditional Cash Transfer, Peace and Security
The proposed budget seeks to lower the inequities in the health sector. Gains from the Sin Tax Law will be used to enhance the public’s access to quality health services, through the improvement of health facilities and the deployment of medical practitioners. As such, around P29.0 billion is allocated for the Health Facilities Enhancement Program in 2018, a 19.8% increase from the previous year’s P24.2 billion. This will be used to finance the construction of 1,497 Barangay Health Stations (BHS) and the improvement of the facilities of 353 hospitals. Furthermore, some P9.7 billion will be provided to the Health Human Resource Development for the deployment of medical practitioners to remote communities. An additional 446 doctors, 20,527 nurses, 3,108 midwives, and 324 dentists will be hired through this expansion.
P57.1 billion pesos will also be appropriated for the National Health Insurance Program to ensure that low income individuals, including senior citizens and those in the informal sector, would be covered by health insurance. This allocation is P3.9 billion higher than in the previous year, as the administration targets to provide health insurance coverage to 15.4 million families at P2400 per family; 5.4 million senior citizens at P3120 per senior citizen. P2400 per family will also be received by Bangsamoro families and those under the Payapa at Masaganang Pamayanan (PAMANA) program.
The Conditional Cash Transfer Program (CCT) will also be enhanced through the P25.7 billion proceeds from the Tax Reform Package. An unconditional cash transfer of P200 per month or P2400 per year will be given to the poorest 50% or 10 million poorest households nationwide. For the current 4.4 million CCT beneficiaries, their existing transfers will thereby be increased by P200 per month or P2400 per year, accordingly. Furthermore, the current CCT beneficiaries will be monitored if they are moving out of the poverty line, and an additional P89.4 billion is also allocated to finance the continuance of the conditional cash transfer.
Moreover, peace and security remain one of the vital thrusts of the Duterte administration. As such, hefty allocations of P145.0 billion and P172.3 billion are provided to the Department of National Defense (DND) and the Department of Interior and Local Government, respectively. The DND budget will mostly sustain the Revised AFP Modernization Program and the Philippine Coast Guard Modernization Program, including the procurement of new service weapons, firearms, and modern equipment necessary to maintain peace and order.
Meanwhile, the DILG’s budget will be mostly used to intensify the Philippine National Police’s law enforcement operations against illegal drugs and criminality. Around 10,000 new Police Officer 1 recruits will expand the current 194,410 police officers, and will thereby increase police visibility in communities nationwide. Also, P900 million will be allocated for the Oplan Double Barrel Reloaded, the administration’s flagship program against illegal drugs.
Agriculture, food security, free irrigation
In addressing the challenges of food security, the P3.767 trillion proposed budget will cover major productivity-enhancing programs, ranging from agricultural infrastructure facilities; support for mechanization and irrigation; investments in research and development (R&D); and protection of land tenure and security. These programs and projects are intended to raise the income and improve the crop production of Filipino farmers.
In FY 2018, the Department of Agriculture (DA) has been allocated P54.2 billion, a 32.5 percent increase from this year’s DA budget, to expand by 500,000 hectares the total irrigated harvest area using hybrid seeds. This will translate to 19.79 million metric tons (MT) of palay yield, 1.22 million MT more than this year’s target. The DA budget will also finance the construction of an additional 1,179 kilometers of farm-to-market roads to link farmer producers to market centers, opening up economic opportunities for the rural sector.
Furthermore, the P40.9 billion allocation for the National Irrigation Administration (NIA) will support the agricultural production of Filipino farmers with the development, restoration, repair and rehabilitation of irrigation systems nationwide. These facilities will service 564,000 farmers, and will irrigate 582,898 and 613,193 hectares of land in the dry and wet season, respectively.
Rounding out the agricultural provisions for the 2018 proposed budget is the P10.3 billion allocation for the Department of Agrarian Reform (DAR). The said funds will fast-track land distribution to agrarian reform beneficiaries (ARBs) and ensure land tenure security for our farmers. Of the P10.3 billion DAR budget, P1.1 billion has been set aside for the extension of the Mindanao Sustainable Agrarian and Agriculture Development Project to spur agribusiness and agro-forestry programs in the region.
With the early submission of the proposed budget, the DBM is confident that Congress will have enough time to thoroughly study, improve, and finalize the budget for next year. (DBM)
As provided in the Constitution, the President is required to submit the proposed budget to Congress within a month after the start of regular session. (Section 22, Article VII)
The early submission of the proposed budget, the second budget crafted under the Duterte administration, will allow Congress more time to closely examine and scrutinize it before passing it into law.
The P3.767 trillion proposed budget was presented by Department of Budget and Management (DBM) Secretary Benjamin E. Diokno and approved by President Duterte during the 16th Cabinet meeting in Malacanang on July 3.
Representing 21.6% of the projected gross domestic product (GDP) for 2018, the proposed budget is a 12.4% increase from the 2017 budget of P3.35 trillion.
Education, infrastructure, public transport
In line with the Duterte administration’s thrust to reduce poverty and promote economic growth, the largest allocations will go to the education sector and the infrastructure development program, “Build, Build, Build.”
A total of P691.1 billion makes up the combined budgets of the Department of Education (DepED) with P613.1 billion, the Commission on Higher Education (CHED) with P13.5 billion, and State Universities and Colleges (SUCs) with P64.6 billion.
Part of the education sector budget will fund the construction of 47,000 classrooms, the repair and rehabilitation of 18,000 classrooms, purchase of 84,781 school seats, and creation of 81,100 teaching positions.
The budget for Government Assistance and Subsidies for students and teachers has been increased from P35.8 billion this year to P39.3 billion in 2018, while P4.8 billion has been allocated to support the student beneficiaries of CHED’s Tulong Dunong Program.
The budget for the education sector will also fund the Education Service Contracting Program which will allow 1,077,230 deserving elementary graduates to study in private Junior High Schools, as well as the Voucher Program, which will enable 1,771,968 Senior High School students to enroll in specialized tracks in private or public universities and colleges.
35,945 licensed private school teachers participating in the Teacher Salary Subsidy program will also benefit from the increased allocation for 2018.
The government is also targeting to fully implement the Unified Financial Assistance System (UniFAST) Act, which will integrate government-funded financial assistance programs for college students.
Meanwhile, the Department of Public Works and Highways (DPWH) receives the second highest share among the agencies, with P643.3 billion, while the Department of Transportation gets P73.8 billion, a 32.6% increase from its 2017 budget of P55.7 billion.
The sizable allocation given to the DPWH and DOTr will allow the government to intensify its numerous projects aimed at improving mobility and connectivity in the country, decongesting urban areas, and establishing modern and economical transport systems for the public.
For 2018, P1.097 trillion has been set aside to support the Build, Build, Build Program. This amount is an increase of 27.8% from its 2017 adjusted level of P858.1 billion. The allocation puts the infrastructure budget at 6.3 percent of GDP next year in line with the administration’s emphasis on infrastructure development.
New roads and highways will be built through an allocation of P19.4 billion, a whopping 185.6% hike from the previous budget of P55.4 billion. This will allow the transport of more people and goods in all regions of the country. In addition, the DPWH will also construct new bypasses and diversion roads for an amount of P49.3 billion to connect freight centers and alleviate the daily traffic problem.
Rail, air, and sea transport
Various rail, air, and sea transport development and improvement projects will be funded by the 2018 budget, including the Land Public Transportation Program, which has been given P12.6 billion; the P5.4-billion Cebu Bus Rapid Transit (BRT); the P1.8-billion Metro Manila BRT-Line 1, which will serve around 300,000 daily commuters travelling from Espana Boulevard to Quezon Avenue; and the P3.1-billion Metro Manila BRT-Line 2, which will serve 1.6 to 2 million people commuting along EDSA.
For 2018, P26.0 billion has been allocated for the rail transport program which will focus on the construction of new railways and the rehabilitation, modernization, and extension of existing railways. Included in the list of railways for construction or improvement are the Mindanao Railway Project Phase I, which will connect Davao City to Surigao and Cagayan de Oro; the P7.1-billion North-South Railway Project Phase 2-PNR South; the P1.3-billion LRT Line I South Extension (Cavite) Project; the P895-million LRT Line 2 East Extension Project; and the P608-million LRT Line 2 West Extension Project.
Some of the airports in line for improvement and development are the Clark International Airport in Pampanga, which has been given P2.7 billion for the upgrading of its night-landing capabilities, and the Bicol (New Legazpi) International Airport in Albay, with a budget of P900-million. The enhancement of these two airports will assist in decongesting the Ninoy Aquino International Airport.
The 2018 proposed budget has also set aside amounts for the New Bohol (Panglao) International Airport Development Project, with P386 million; Kalibo Airport, with P920 million; Tacloban Airport, with P716 million; Cauayan Airport, with P306 million; and Zamboanga International Airport, with P221 million.
The modernization of the country’s seaports is a priority of the government, hence the allocation for the construction, upgrading, rehabilitation, and expansion of several ports and harbors including the Al-Barka Ports Cluster, which has been given P50 million; Volcano Island Port in Talisay, Batangas, with P30 million; Agkawayan in Looc, Occidental Mindoro, with P42 million; Taganak Port in Taganak, Turtle Islands, Tawi-Tawi, with P71 million; San Roque Port in Palimbang, Sultan Kudarat, with P17 million; Pangutaran Port in Pangutaran, Sulu, with P20 million; and Dolores Port in Dolores, Eastern Samar, with P50 million.
Health programs, Conditional Cash Transfer, Peace and Security
The proposed budget seeks to lower the inequities in the health sector. Gains from the Sin Tax Law will be used to enhance the public’s access to quality health services, through the improvement of health facilities and the deployment of medical practitioners. As such, around P29.0 billion is allocated for the Health Facilities Enhancement Program in 2018, a 19.8% increase from the previous year’s P24.2 billion. This will be used to finance the construction of 1,497 Barangay Health Stations (BHS) and the improvement of the facilities of 353 hospitals. Furthermore, some P9.7 billion will be provided to the Health Human Resource Development for the deployment of medical practitioners to remote communities. An additional 446 doctors, 20,527 nurses, 3,108 midwives, and 324 dentists will be hired through this expansion.
P57.1 billion pesos will also be appropriated for the National Health Insurance Program to ensure that low income individuals, including senior citizens and those in the informal sector, would be covered by health insurance. This allocation is P3.9 billion higher than in the previous year, as the administration targets to provide health insurance coverage to 15.4 million families at P2400 per family; 5.4 million senior citizens at P3120 per senior citizen. P2400 per family will also be received by Bangsamoro families and those under the Payapa at Masaganang Pamayanan (PAMANA) program.
The Conditional Cash Transfer Program (CCT) will also be enhanced through the P25.7 billion proceeds from the Tax Reform Package. An unconditional cash transfer of P200 per month or P2400 per year will be given to the poorest 50% or 10 million poorest households nationwide. For the current 4.4 million CCT beneficiaries, their existing transfers will thereby be increased by P200 per month or P2400 per year, accordingly. Furthermore, the current CCT beneficiaries will be monitored if they are moving out of the poverty line, and an additional P89.4 billion is also allocated to finance the continuance of the conditional cash transfer.
Moreover, peace and security remain one of the vital thrusts of the Duterte administration. As such, hefty allocations of P145.0 billion and P172.3 billion are provided to the Department of National Defense (DND) and the Department of Interior and Local Government, respectively. The DND budget will mostly sustain the Revised AFP Modernization Program and the Philippine Coast Guard Modernization Program, including the procurement of new service weapons, firearms, and modern equipment necessary to maintain peace and order.
Meanwhile, the DILG’s budget will be mostly used to intensify the Philippine National Police’s law enforcement operations against illegal drugs and criminality. Around 10,000 new Police Officer 1 recruits will expand the current 194,410 police officers, and will thereby increase police visibility in communities nationwide. Also, P900 million will be allocated for the Oplan Double Barrel Reloaded, the administration’s flagship program against illegal drugs.
Agriculture, food security, free irrigation
In addressing the challenges of food security, the P3.767 trillion proposed budget will cover major productivity-enhancing programs, ranging from agricultural infrastructure facilities; support for mechanization and irrigation; investments in research and development (R&D); and protection of land tenure and security. These programs and projects are intended to raise the income and improve the crop production of Filipino farmers.
In FY 2018, the Department of Agriculture (DA) has been allocated P54.2 billion, a 32.5 percent increase from this year’s DA budget, to expand by 500,000 hectares the total irrigated harvest area using hybrid seeds. This will translate to 19.79 million metric tons (MT) of palay yield, 1.22 million MT more than this year’s target. The DA budget will also finance the construction of an additional 1,179 kilometers of farm-to-market roads to link farmer producers to market centers, opening up economic opportunities for the rural sector.
Furthermore, the P40.9 billion allocation for the National Irrigation Administration (NIA) will support the agricultural production of Filipino farmers with the development, restoration, repair and rehabilitation of irrigation systems nationwide. These facilities will service 564,000 farmers, and will irrigate 582,898 and 613,193 hectares of land in the dry and wet season, respectively.
Rounding out the agricultural provisions for the 2018 proposed budget is the P10.3 billion allocation for the Department of Agrarian Reform (DAR). The said funds will fast-track land distribution to agrarian reform beneficiaries (ARBs) and ensure land tenure security for our farmers. Of the P10.3 billion DAR budget, P1.1 billion has been set aside for the extension of the Mindanao Sustainable Agrarian and Agriculture Development Project to spur agribusiness and agro-forestry programs in the region.
With the early submission of the proposed budget, the DBM is confident that Congress will have enough time to thoroughly study, improve, and finalize the budget for next year. (DBM)
