DBM: Health budget cuts due to tight fiscal space

MANILA, Philippines — The Department of Budget and Management (DBM) has defended its decision to slash allocation for some health programs under the 2023 budget proposal amid a challenging fiscal position.

In a statement yesterday, the DBM explained the budget reduction on several programs under the Department of Health (DOH) as lawmakers raised concerns over such a decision.

The health sector is actually getting a 10.39 percent increase to P296.3 billion for 2023, securing the third highest budget from the record P5.268-trillion National Expenditure Program (NEP) for next year.

However, some projects of the DOH – including epidemiology and surveillance, health regulatory, public health and the health emergency management programs – saw budget cuts.

“The national government is in a tight fiscal position,” the DBM said, adding tht it “recognizes the need to carefully prioritize programs and projects based on available budget, and uphold sound fiscal management.”

For the epidemiology and surveillance program, the DBM saw some items not supported with details and, as such, considered as not yet ready for implementation.

With regard to the 81 percent fund reduction for the procurement of personal protective equipment (PPEs), the DOH said such a mandate was already transferred directly to various hospitals.

The DBM maintained that it also takes into consideration the utilization rate, as the public health management program only registered a utilization rate of 76.7 percent.

For the health emergency program, the DOH itself proposed a 7.55-percent cut in its budget to P752.34 million next year.

Meanwhile, no allocation was provided for COVID Human Resource for Health Emergency Hiring, considering that the requirements for vaccinators will be chargeable against the budget of local government units.

In terms of COVID vaccine booster procurement, a standby fund worth P22 billion has been provided under unprogrammed appropriations.

Based on the NEP, some P29 billion is earmarked to purchase drugs, medicines and vaccines and another P23 billion for the purchase of medical equipment and the construction, rehabilitation and upgrading of barangay health stations, rural health units, polyclinics and other health facilities nationwide.

Another P19 billion is allocated for the salary and benefits of health care workers.

“The DBM yields to the collective wisdom of the members of Congress if they find it meritorious to increase further the budget of the DOH,” the DBM said.

Cancer fund

Facing a smaller budget, the DOH yesterday appealed to the House of Representatives to restore its line item for Cancer Assistance Fund which the DBM removed from the NEP for 2023.

“Previously we had a line item for Cancer Assistance Fund at P500 million. We are set to implement it but now it was removed from the line item. We, therefore, appeal to our House of Representatives members, committee on health if this can be returned because this is part of the law,” said DOH officer-in-charge Maria Rosario Vergeire. – Sheila Crisostomo