AT the House of Representatives on Monday, the Development Budget Coordination Committee (DBCC), which is comprised of Budget Secretary Amenah Pangandaman, Finance Secretary Ralph Recto, Secretary Arsenio Balisacan of the National Economic and Development Authority, and Governor Eli Remolona Jr. of the Bangko Sentral ng Pilipinas made its presentation on the national expenditure program which will be the basis for Congress’ enacted of the 2025 national budget.
Malacañang has submitted its proposal for a P6.352 trillion national budget in 2025 which is an election year, and the DBCC, particularly Finance Secretary Ralph Recto, assured the congressmen that it would be adequately funded.
Recto said the Marcos administration is on-track to achieve its targets under the refined Medium-Term Fiscal Program that gradually reduces deficit and debt, creates more jobs, increases incomes, and reduces poverty.
To fund the budget of PHP 5.77 trillion in 2024, he said the Department of Finance (DOF) looked for more resources without creating new taxes on the people at present or bequeathing debts to be paid by future generations.
He said this is why the DOF hiked the GOCCs’ dividend rates to 75 percent from 50 percent in 2024 as among the major sources of non-tax revenues.
He also said that the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC) also posted higher collection performances through digitalization, strict enforcement, and plugging of tax leakages, especially from e-commerce.
Recto said total revenue collection from January to June 2024 grew by 15.6 percent, amounting to PHP 2.15 trillion, of which tax collections increased by 10 percent to P1.84 trillion, while non-tax grew by 63.3 percent to P14.2 billion.
In his speech before the budget briefing of the DBCC, Speaker Romualdez said the national budget aims to sustain the country’s economic growth and benefit all Filipinos, calling it the “the best tool we have to ensure that all our people, especially the poor, feel the tangible benefits of our economic achievements.”
He said by prioritizing programs that uplift the most vulnerable and provide essential services, the budget “serves as a bridge, connecting our economic successes with the daily lives of our people. It is a testament to our commitment to inclusivity and equity, ensuring that the progress we make as a nation is shared by all.”
He noted that on top of the spending priority list is education with an allocation of P977.6 billion, followed by public works with P900 billion, health with P297.6 billion, interior and local government with P278.4 billion, defense with P256.1 billion, social welfare with P230.1 billion, agriculture with P211.3 billion, transportation with P180.9 billion, judiciary with P63.6 billion, and justice with P40.6 billion.
Rep. Zaldy Co (Ako Bicol party list) joined the chorus, saying the 2025 budget could help more Filipinos hurdle the poverty threshold, especially after the government’s action that brought down rice tariff to 15 percent starting July 16 this year from 35 percent.
“It (the budget) outlines the government's plan to stimulate economic growth, enhance social services, improve infrastructure and ensure sustainable development. In these challenging times, a well-crafted budget is essential for addressing our country’s pressing issues from economic recovery to social equity and food security,” said Co.
The discussion was marred somewhat when Rep. France Castro (ACT Teachers party list) stood and pointed out that unprogrammed funds in that budget are actually being turned into “presidential super pork.”
Castro cited what happened in this year’s unprogrammed funds after the amount reached P731.4 billion, or an increase of P449.5 billion, from the Executive’s original proposal.
“We are seeing a dangerous trend in the 2024 national budget where unprogrammed appropriations have ballooned to 731.4 billion pesos, an increase of 449.5 billion from the original proposal,” she said. “This massive increase gives the President unprecedented discretionary power over public funds, effectively creating a presidential super pork barrel.”
Unlike regular items in the budget, unprogrammed appropriations are not automatically allocated and only become available if funding conditions are met, such as when the government is able to raise additional tax or non-tax revenues. Unprogrammed appropriations are released after a certification from the Department of Budget and Management and the National Treasury that there are surplus revenues.
Castro explained that unprogrammed appropriations allow the executive branch to reallocate funds from government-owned and controlled corporations, like PhilHealth, GSIS, and SSS, to various projects at the President’s discretion.
Speaker Martin Romualdez said unprogrammed funds cannot be considered “pork,” pointing out that pork barrel funds are budgetary items that are changed even after the annual national budget has already been enacted. He explained that by definition, there is really no pork because that contemplates on the amendments or post-enactment of the budget where the allocations are being changed.
Romualdez showed his strong political savvy when he chose not to comment any further, citing pending petitions before the Supreme Court challenging the use of unprogrammed funds. Last August 2, a group of petitioners led by Senate Minority Leader Aquilino “Koko” Pimentel III asked the High Court to issue a temporary restraining order against Department of Finance Circular No. 003.2024 on the transfer of unused PhilHealth funds for “unprogrammed appropriations.”
The Speaker respects the Supreme Court, a co-equal branch of government, and makes an example of how a leader should behave.
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