Department of Budget and Management (DBM) Secretary Amenah F. Pangandaman formally submits today, 02 August 2023, the proposed Fiscal Year 2024 National Budget or the National Expenditure Program (NEP) to the House of Representatives.
“On behalf of President Ferdinand R. Marcos Jr., it is my honor and privilege to transmit to Congress—for its scrutiny, deliberation and approval—the Fiscal Year 2024 National Expenditure Program (NEP). The 2024 NEP amounts to Php 5.768 trillion, equivalent to 21.7 percent of GDP. It is higher by 9.5 percent compared to the FY 2023 General Appropriations Act,” Secretary Pangandaman said.
For his part, House Speaker Ferdinand Martin G. Romualdez ensured the House’s full commitment that would lead to the swift approval of the 2024 national budget.
“I would like to commend the Department of Budget and Management for the early transmission to the House of the proposed 2024 National Expenditure Program. Your submission of the proposed national budget in less than 10 days from the start of the regular session of Congress provides the House ample time to study, discuss, and deliberate the point of the proposal, and formulate the national budget that is responsive to the development needs of our country,” Speaker Romualdez remarked.
Anchored on the theme, “Agenda for Prosperity: Securing a Future Proof and Sustainable Economy,” the proposed budget aims to expedite the recovery of the nation in a post-pandemic era and transition the country towards a promising future where no Filipino is left behind.
The proposed budget is likewise consistent with the objectives set in the Philippine Development Plan (PDP) 2023-2028, the country’s Medium Term Fiscal Framework (MTFF), and the administration’s 8-point Socioeconomic Agenda, the government will continue to prioritize sectors that will support inclusive and sustainable economic growth.
To ensure food security and proper nutrition for Filipino families, the FY 2024 NEP will continue to support programs that boost the local production of major agricultural commodities including rice with Php 30.87 billion, corn with Php 5.28 billion, and high-value crops with Php 1.94 billion.
Higher investments will also be provided for agricultural support services such as irrigation and the construction and rehabilitation of fish ports across the country. Construction of agriculture-related infrastructure will likewise be allotted with necessary budget, such farm-to-market roads in key production areas.
Reduce Transport and Logistics Costs
Investment in infrastructure development will also continue as one of the key drivers of the country’s continuing economic growth.
Thus, to sustain this momentum, the Build Better More Program will be allotted with Php 1.42 trillion budget, equivalent to 5.3 percent of GDP.
This will prioritize physical connectivity infrastructure such as road networks and railway systems. Significant budgetary support will also be provided for social infrastructure development which includes school buildings, hospitals and health centers, as well as water and power supply systems.
Reduce Energy Costs
To lower energy costs, the administration of President Ferdinand R. Marcos Jr. will aggressively promote renewable energy. This will be achieved through the implementation of the Renewable Energy Development, Energy Efficiency and Conservation, and Alternative Fuels and Technologies Programs with Php 501 million. Alongside power generation, the government will pursue total electrification through the NEA’s National Rural Electrification Program.
Address Learning Losses
Alongside the strengthening of the country’s economy, investment will be poured in heavily in human capital development through education, health, and social protection.
As mandated by the Constitution, Education will remain as top priority with a total budget of Php 924.7 billion .
The budget will support programs of the Department of Education (DepEd), including the MATATAG Agenda for Basic Education. Higher allocations will also be provided for other vital education programs, such as the School-Based Feeding Program. Meanwhile, access to quality education will also be at the forefront of the government’s education agenda through the Universal Access to Quality Tertiary Education and the Education Assistance and Subsidies.
Applying the lessons from the pandemic, the government has refocused its health priorities on ensuring reliable and accessible quality public health services for all.
The Health Facilities Enhancement Program of the Department of Health (DOH) will be provided Php 22.98 billion for the construction, rehabilitation, and upgrading of health facilities, rural health units, and polyclinics, as well as the purchase of medical equipment and transport vehicles.
The government will also continue to expand access to quality health services by subsidizing the health premiums of the vulnerable sector through the National Health Insurance Program.
Strengthen Social Protection
To strengthen social protection, a higher allocation of Php 112.8 billion will be provided to assist 4.4 million households under the Department of Social and Welfare Development’s (DSWD) Pantawid Pamilyang Pilipino Program.
Budgetary allocation for Social Pension for Indigent Senior Citizens has been doubled to Php 49.81 billion to cover the increased monthly allowance from Php 500 to Php 1,000 for more than four million indigent senior citizens.
The proposed national budget will also support the administration’s Pambansang Pabahay Para sa Pilipino Program with Php 9.0 billion.
Ensure Sound Fiscal Management
To ensure sound fiscal management, the government will continue leveraging digitalization by adopting the Integrated Financial Management Information System or IFMIS throughout the bureaucracy.
To this end, some Php 2.92 billion will be allocated to improve the Information and Communication Technologies (ICT systems) of the Bureau of Internal Revenue. The DBM will also continue to implement its Public Financial Management Program which includes the Budget and Treasury Management System.
Enhance Bureaucratic Efficiency
Further, in fully embracing digitalization towards better public service delivery, the FY 2024 NEP will allocate Php 38.75 billion to support the government’s ICT expenditures.
The Philippine Identification System (PhilSys) will be at the core of this digitally transformed network of government services which will continue to be supported with Php 1.61 billion. Some Php 145.53 million will also be allocated for the strengthened implementation of the Ease of Doing Business and Efficient Government Service Delivery Act to reduce bureaucratic red tape.
Climate Change Expenditures
Towards sustainability, a total of Php 543.45 billion has been earmarked for climate change mitigation and adaptation.
Recognizing its fundamental importance, the bulk of climate change expenditures will be allocated for water sufficiency projects with Php 294.46 billion to benefit communities all over the country.
Lastly, to achieve lasting peace and progress in the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM), the government will continue to provide financial assistance for BARMM amounting to Php 80.6 billion. Meanwhile, about Php 1.0 billion will be set aside for the Marawi Siege Victims Compensation Program. Php 5.3 billion has also been appropriated for the PAyapa at MAsaganang PamayaNAn (PAMANA) Program for infrastructure development in BARMM.
“Let me remind everyone that every peso of the Php 5.768 trillion FY 2024 national budget was optimized so we can remain on track with our Agenda for Prosperity. It is the Administration’s fervent hope that this budget will continue to lay the groundwork for future-proofing the economy and making the country’s growth inclusive and sustainable, not just for the Filipinos of today, but also for future generations,” Secretary Pangandaman stressed.
Secretary Pangandaman earlier emphasized that all agencies have a responsibility to support, uphold, and advocate the President’s Budget during congressional discussions.
President Ferdinand R. Marcos Jr. was presented with a copy of the NEP on July 25, 2023, one day after his second State of the Nation Address (SONA).