DOF proposes lower budget for 2019

MANILA, Philippines — The Department of Finance has proposed a lower budget of P18.68 billion for 2019 in line with the government’s shift to a cash-based budgeting system.

In a statement, Finance Secretary Carlos Dominguez said the DOF’s budget for 2019 was reduced by three percent or P630 million to P18.68 billion from the 2018 appropriation of P19.31 billion.

“As in this year’s budget, the DOF has voluntarily submitted a lower allocation under the proposed GAA (General Appropriations Act) for 2019 to set an example for other departments to operate efficiently,” Dominguez said.

“Next year’s budget for the DOF is also moored to the new cash-based budgeting system of the Duterte administration that is designed to improve the absorptive capacity of all government agencies,” he said.

This is the second consecutive year that the DOF has submitted a lower budget. For 2018, the agency’s budget is lower than the 2017 budget of P21.5 billion.

On Thursday, the House committee on appropriations  endorsed for Congressional approval the 2019 budget. Albay Rep. Jose Ma. Clemente Salceda, a senior vice chairman of the appropriations panel, sponsored the approval of the DOF budget before the House plenary.

For 2019, the DOF said the highest allocation would go to the Bureau of Internal Revenue (BIR), which has a total budget of P8.1 billion. This is one percent higher than the agency’s budget this year.

The DOF said the slight increase can be attributed to the hike in allocations for the bureau’s personnel services and capital outlays.

Meanwhile, the DOF said the Bureau of the Treasury’s budget for next year is proposed at P6.05 billion or 39 percent higher than the current year’s P4.36 billion.

Dominguez said the agency’s budget was increased for the payment of insurance premium to protect the government’s assets against calamities.

On the other hand, the 2019 budget of the Bureau of Customs’ declined to P2.61 billion from the current P4.59 billion due to the completion of projects.

The budget of the Office of the Secretary also dropped to P843.33 million in 2019 from P1.23 billion this year, while the allocation for the Securities and Exchange Commission is lowered to P618 million from P629.87 million.

For next year, the Bureau of Local Government Finance has a proposed budget of P269.03 million; Privatization and Management Office, P83.05 million; National Tax Research Center, P66.11 million; and Central Board of Assessment Appeals, P20.66 million.