Gov’t sets P2.27-T budget for 2014

MANILA, Philippines - The Aquino administration has approved a budget ceiling of P2.27 trillion for 2014, 13.1 percent higher than this year’s P2.01 trillion as it aims to sustain rapid and inclusive growth.

In a memorandum dated April 25, the  Department of Budget and Management said the budget ceiling is consistent with the 6.5 to 7.5-percent growth target and a three to five-percent inflation forecast set for next year. 

DBM Secretary Florencio B. Abad said the budget is also  consistent with a two-percent GDP budget deficit target or P266.2 billion, and a revenue collection target of 15.2 percent of GDP (P2.025 trillion) for the year.

With the estimated costs of currently approved and ongoing programs/projects at P2.1 trillion, Abad said the government has fiscal space or allocation for the expansion of ongoing and new priority programs for this year amounting to P163.2 billion.

This means that only around seven percent of the budget ceiling is still uncommitted or about the same value of uncommitted funds during the 2013 budget preparation.

For 2015 and 2016, some P422.8 billion and P734 billion, respectively, are uncommitted to accommodate any multi-year funding implications that the new priority projects for 2014 to 2016 would require.

Abad said the budget ceiling already incorporates the proceeds from the sin tax reform law but not the coconut levy funds.  The cost of ongoing and approved programs has also been issued to the different departments as indicative ceilings.  These provide for demographic and inflationary adjustments.

To rebuild confidence in its government, the Aquino administration wouldl pursue its good governance program particularly in Mindanao. It  also intends to increase investments in Mindanao, not only in basic services and agriculture but also in industries that would promote employment in shipbuilding and other strategic investments.

Its main focus is to expand transport and energy infrastructure, pursue tourism development, revive the manufacturing sector and enhance the assistance to small and medium enterprises for more to go up the value chain and allow them to multiply. 

The government also intends to promote greater agricultural productivity and higher farmer incomes.

It also intends to ramp up infrastructure spending as a ratio of GDP from 2.6 percent in 2011 to at least 5-to-6 percent by 2016.  The government intends to adopt a coherent and efficient intermodal transport roadmap, connecting employment-creating areas such priority tourism destinations, agricultural and manufacturing production hubs.

To enable more people, especially the poor to benefit from the economic growth, the government would pursue the Pantawid Pamilyang Pilipino program, which includes the universal health care.

HIgher enrollment  and greater availment of the poor and informal sectors in health insurance benefit program of the Philippine Health Insurance Corp. would be funded towards the goal of universal coverage using the proceeds of the sin tax reform law.

Providing socialized housing and settlement programs would continue to be a priority especially for those living along the path of targeted infrastructure development and in danger zones vulnerable to climate change and other disasters.