DOF submits lower P17.3 billion budget for 2020

MANILA, Philippines — The Department of Finance (DOF) and its attached agencies are proposing a total budget of P17.29 billion for 2020, 8.47 percent lower than this year’s allocation.

Finance Secretary Carlos Dominguez said this is the third straight fiscal year that the DOF requested a lower budget.

If automatic appropriations, unprogrammed appropriations and budgetary support for government-owned and -controlled corporations (GOCCs) are included, the DOF total proposed budget for 2020 will amount to P56 billion.  

“We will continue to build on our efforts to maintain fiscal stability and to improve our revenue collection performance to achieve inclusive economic growth for our country,” Dominguez said in a statement.

“Our fiscal objectives in the DOF were honed to support the administration’s priority programs, such as the massive infrastructure program and public investments to improve the lives of our people,” he said.

According to the DOF, its budget was already endorsed by the Committee on Appropriations of the House of Representatives for plenary approval.

In his sponsorship speech, Sultan Kudarat Rep. Horacio Suansing, one of the senior vice chairpersons of the House appropriations committee, cited the fiscal policies and reform measures implemented in the first half of the Duterte administration, such as the Tax Reform for Acceleration and Inclusion (TRAIN) law.

“These reforms and substantive gains enable us to fund critical government programs – programs badly needed by our constituents. Hence, it is but prudent to equip the Department of Finance and its attached agencies with sufficient budget to keep this momentum of fiscal reforms and gains,” Suansing said. 

Among its attached agencies, the DOF said the Bureau of Internal Revenue (BIR) has the highest allocation amounting to P8.46 billion, which will be used to further improve the agency’s tax administration and enforcement capabilities.

Meanwhile, the Bureau of the Treasury’s (BTr) proposed budget for 2020 is P4.77 billion, down  by 21 percent, as it would already settle the country’s paid-in capital to the Asian Infrastructure Investment Bank (AIIB) this year.

“Its proposed budget also maintained the P2-billion insurance premium for government assets against natural or human-induced calamities, epidemics, crises and catastrophes,” the DOF said.

The BOC, on the other hand, is proposing a budget of P2.26 billion, 13.74 percent lower than this year’ s P2.62 budget.

The Office of the Secretary is also seeking a budget of P836.61 million, while the Securities and Exchange Commission (SEC) is asking for a P550.68 million allocation.

Meanwhile, the Bureau of Local Government Finance’s proposed 2020 budget is P259.48 million, Privatization Management Office (P81.54 million) National Tax Research Center (P62.26 million) Central Board of Assessment and Appeals (P18.16 million) and Insurance Commission (P6,000).

The IC sources its funds for personal services from the retained amount of the fees, charges and other income derived from the regulation of pre-need companies, while its maintenance and other operating expenses comes from its 25 percent share from the premium tax collection of the BIR.