President Ferdinand "Bongbong" Marcos Jr. hopes that Congress will approve the proposed 2024 National Budget, saying their approval would bring the Philippines one step closer to achieving the Government's transformative vision for the country.

Marcos said this in his Budget Message in the proposed P5.768-trillion 2024 National Expenditure Program (NEP) submitted to Congress on Wednesday, Aug. 2.

In his message, the President said the Government would continue working closely with the private sector and other branches of Government for the vital pieces of legislation that are needed along the way.

"With the Congress' approval of the proposed FY 2024 National Budget, we will be one step closer to achieving our transformative vision for the country, the Agenda of Prosperity," he wrote.

"Our journey has just begun. We will march on — one nation, one people building a better future together," he added.

"The daws of a new Philippines — ang Bagong Pilipinas — has arrived," he continued.

According to the President, the proposed budget seeks to provide the necessary funds for the operations of the Government and the continuing pursuit of economic transformation.

The proposed budget is 9.5 percent higher than the 2023 General Appropriations Act (GAA), which amounted to P5.268 trillion.

In his message, the President said the proposed 2024 budget was vital to the Philippine Development Plan (PDP) 2023-2028, which aims to strengthen the capabilities, protect the Filipinos' purchasing power, and enhance production sectors to generate more quality jobs and competitive products.

"These strategies are to be supported by an enabling environment characterized by macroeconomic stability, infrastructure development, bureaucratic efficiency, strong rule of law, and effective climate action," he said.

Meanwhile, Marcos said Expense Class, Sector, and Recipient Unit classify the proposed 2024 NEP.

Expense Class

Marcos said maintenance and other operating expenses (MOOE) take the most significant bulk of the budget at 37.4 percent or P2.156 trillion. These expenses support:

Regular operating requirements of government agencies

Implementation of government programs and services

Subsidies to GOCCs

Allocation to local government units (LGUs)

The Administration's priority programs in education and social welfare are covered in the said amount.

Personnel Services (PS) was given P1.695 trillion. This will be used for the salaries, benefits, pensions, allowances, and other compensation of government officials and employees. The said amount likewise covers the wages of healthcare workers and the pension of retired military and uniformed personnel.

The Administration allocated P1.264 trillion to capital outlays (COs), which cover major road and transport programs, and Marcos' Build Better More infrastructure program.

Meanwhile, financial expenses constitute the smallest share of the FY 2024 NEP at P670.5 billion. This is for supervision/trusteeship fees, interest expenses, guarantee fees, bank charges, commitment fees, and other financial charges incurred by the Government for ownership or rent of an asset or property.

Sector

President Marcos said the social services sector got the largest allocation in the proposed 2024 budget, with P2.183 trillion or 37.9 percent of the NEP. This sector comprises health, education, culture, manpower development, social security, welfare, and employment, among others.

The social services sector got an increase of P178.7 billion, or 8.9 percent, compared to its allocation in the 2023 GAA.

The economic services covering communications, roads, transport, agriculture, agrarian reform, and trade and industry got the second-largest budget share with 29.6 percent of the NEP with P1.709 trillion.

General public services will receive P893.3 billion. This will fund expenses for general Administration, public order and safety, and other governance and regulatory services.

To address the debt burden, Marcos said P699.2 billion was allocated for interest payments on the national Government's domestic and foreign debt amounting to P670.5 billion, and net lending was earmarked at P28.7 billion.

Meanwhile, the Defense Sector got P282.7 billion, registering an increase of 21.6 percent from 2023. This will support the land, air, and naval forces' defense programs and the United Nations Peacekeeping Mission, among others, to ensure domestic security.

Recipient Unit

National government agencies (NGAs) will continue to receive the largest share in the proposed budget with P3.866 trillion or 67 percent of the total expenditure program.

"The amount will provide funding for operations and implementation of key programs and projects of departments and agencies," President Marcos said.

LGUs will be allotted P1.008 trillion, and the biggest bulk of this allocation will fund the National Tax Allotment (NTA), which will receive P871.4 billion.

The allocation of LGUs also includes P80.6 billion for the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM).

Meanwhile, a total of P1 billion is set aside for the Marawi Siege Victims Compensation Program, which will allow the Marawi Compensation Board to provide tax-free compensations and/or reparations to all qualified claimants whose properties and possessions were damaged due to the 2017 Marawi Siege.

Government-owned and -controlled corporations (GOCCs) will receive P222.5 billion to finance priority programs and projects, such as the National Health Insurance Program, irrigation, housing, electrification, and rice buffer stocking.

Lastly, creditors have an earmarked allocation of P670.5 to cover interest payments on the Government's domestic and foreign debt.

Source:
courtesy of MANILA BULLETIN

by ARGYLL CYRUS GEDUCOS

If you have any stories or news that you would like to share with the global online community, please feel free to share it with us by contacting us directly at [email protected]