Government yet to release remaining P358 billion budget for this year

MANILA, Philippines — Government agencies have yet to obtain roughly P358 billion in remaining funds under the 2021 national budget, with just four months left in the year.

The Department of Budget and Management (DBM) yesterday said it issued 92.1 percent (P4.14 trillion) of the P4.5-trillion programmed under the national budget as of end-August.

During the same period last year, the government released 95.7 percent (P3.92 trillion) of the P4.1 trillion allocated under the 2020 budget.

The DBM has distributed 89.5 percent (P2.75 trillion) of the 2021 General Appropriations Act (GAA) worth P3.7 trillion. Broken down, nearly 90 percent or P2.44 trillion were received by the departments, while the remaining P308.76 billion were used as special purpose funds.

Further, the DBM has released 80.1 percent (P1.14 trillion) of the automatic appropriations for 2021 totaling P1.42 trillion. The agency has exceeded by P807.85 million its issuance for the P56.24 billion retirement and life insurance premiums to cover for new hires.

On the other hand, the DBM has issued all the program for the P695.49 billion internal revenue allotment; P71.66 billion block grant; P480,000 pension of former presidents and their widows; P31.06 billion special account in the general fund; and P14.5 billion tax expenditures fund.

In its backlog, the government used only 25 percent (P7.17 billion) of the P28.7 billion net lending and 50.3 percent (P267.55 billion) of the P531.54 billion interest payments.

The DBM also issued P251.14 billion in other releases, of which more than half at P129.51 billion were credited as continuing appropriations; the remainder were listed as unprogrammed appropriations (P94.4 billion) and other automatic appropriations (P27.22 billion).

Under continuing appropriations, over 70 percent at P91.86 billion was released to complete programs listed under Republic Act (RA) 11494, or the second Bayanihan law. The other P37.64 billion was issued in compliance with RA 11465, which extends the validity of the 2020 GAA.

The government has filed before Congress its highest ever expenditure plan of P5.024 trillion for next year. By department, the education cluster will receive the highest share at P773.6 billion, followed by the departments of Public Works and Highways at P686.1 billion and the Interior and Local Government at P250.4 billion.

Likewise, the government plans to expand its infrastructure spending in 2022 to P1.18 trillion, or 5.3 percent of the economy, to sustain the pace of the Build Build Build program.

In financing the 2022 budget, the government expects to sustain a fiscal deficit of P1.66 trillion equivalent to 7.5 percent of the economy.