Malacañang to have more say under 2017 budget framework

MANILA, Philippines - Malacañang will have more say on specific projects state agencies would want to finance under the 2017 budget, which should reflect the priorities of the sitting administration.

“One of the things we are trying out this year to improve the budget process is giving the President and the Cabinet a greater say in the Budget Priorities Framework (BPF),” Budget Undersecretary Laura Pascua said in a text message.

The BPF – a first of its kind under the Philippine budgeting system – will consist of guidelines where new projects to be financed in the next year’s outlay will be based, the Department of Budget and Management (DBM) said in a statement.

Specifically, macroeconomic assumptions, budget ceilings, targeted geographical areas and local government units (LGUs) will be provided, Pascua said.

Previously, guidelines only centered on economic targets, budget ceilings and general description of priorities.

“We will issue a BPF approved by the DBCC. We will say in the budget circular (containing it) that proposals not consistent to it will not be approved,” she explained.

For instance, under the Department of Public Works and Highways, “areas which can access” a particular road project will be specified.

Priority LGUs will also be listed according to the National Budget Memorandum 125 released last week.

The DBCC stands for the Development Budget Coordinating Committee, the top-level economic body of the government led by the DBM.

Based on the budget call, agency proposals should focus on poorest and climate vulnerable LGUs, while ensuring lump sums – including those under special purpose funds (SPFs) – are all disaggregated.

SPFs include calamity funds used to respond to natural disasters, financial support to LGUs and state corporations, debt servicing, pension funds, and contingent funds for the President.

“The BPF is to focus the budget to priority programs of the administration... The new administration can, of course, change this depending on its budget priorities,” Pascua said.

Budget Secretary Florencio Abad agreed, saying approval of the final budget proposal to Congress will rest on the next president.