P653B of 2018 budget to finance new projects
The government plans to spend P652.9 billion next year on new projects, including infrastructure, aimed at achieving the Duterte administration’s goal of slashing the poverty incidence to 14 percent by 2022, the Department of Budget and Management said.
National Budget Memorandum No. 128 issued by Budget Secretary Benjamin E. Diokno on March 23 said that of the record P3.84-trillion national budget proposed for 2018, 83 percent or P3.19 trillion would be earmarked for ongoing programs and projects.
The balance—a fiscal space of P652.9 billion—will be allocated to new and expansion projects and programs, the DBM said.
“Some P299.5 billion or 45.9 percent of the fiscal space will need to be allocated for the economic services sector to raise spending for infrastructure, trade and tourism and agriculture development, among others. Similarly, around P326.4 billion or 50 percent of the fiscal space will have to be earmarked for social programs in education, health, welfare, housing and employment to continue raising the adequacy of public social programs to magnitudes and qualities similar to those in peer developing countries,” according to the DBM.
For ongoing programs and projects, P1.2 trillion will be earmarked for social services in 2018; P853.5 billion for economic services, including P442.7 billion for communication, roads and other transport projects; P176.7 billion for defense, and P575.9 billion for general public service.
Net lending and debt services will be allotted P16.8 billion and P354 billion, respectively, next year.
Article continues after this advertisement“The administration envisages that sustained economic growth will lift about six million Filipinos out of poverty, further decreasing the overall poverty rate from 21.6 percent in 2015 to 14 percent in 2022. To make this happen, the government will have to continue to increase the share of infrastructure and social services in the government’s expenditure program, which is crucial in sustaining inclusive growth, particularly in the rural areas,” the DBM said.
As such, the share of the proposed 2018 national budget to be spent on economic services is programmed to rise to 6.6 percent of gross domestic product (GDP) from 5.8 percent this year.
