How shall we fund the 2021 national budget?

With the pandemic crisis escalating into an economic recession, and most probably, a social conflict, the Department of Budget and Management submitted a gargantuan P4.506 trillion proposed national budget for 2021. This budget will have to be funded from both internal revenues and external and domestic borrowings. Does this mean more tax burdens to the poor middle class?

Budget secretary Wendel Avisado admitted that the proposal is 9.9% higher than the current 2020 appropriation. It also constitutes 21.8 % of the country's gross domestic product. The main goals for the proposed allocations of funds are improvement of the nation's healthcare systems, ensuring food security, creating more jobs, investing in labor-intensive infrastructure projects, enabling a digital government, and helping communities and vulnerable sectors cope with socio-economic difficulties. The DBM adopted the budget theme of “Reset, Rebound, Recover: Investing for Resiliency and Sustainability”. Nice jargons, but who's gonna pick up the bill and pay?

The department with the highest allocation is education (Dep-Ed, CHED, TESDA, and state universities and colleges), P754.4 billion, an increase from this year's P 650.2 billion. Then the next are public works and highways, P667.3B; local governments, P246.1B; national defense, P209.1B; health, P203.1B; social welfare P171.2B; transportation, P143.6B; agriculture, P66.4B; Judiciary, P43.5B; labor and employment, P27.5B, and trade and industry, P20.162B. The Senate has a budget of P7.79B and the House, P17.705B. By sector, the following are the sharing of the budget: P1.663 trillion for social service; P1.347 for the economic services sector; P724.2 billion for general public services, and P560.2 billion for debt burden. We need to pay the debts of our forefathers.

To address the pandemic, the following are allocated: PhilHealth (what?), P71.4 billion to augment the billions of members contributions, both from employers and employees; medical assistance to indigent patients, P17.31B; human resources for health (hiring more frontliners), P16.6 B; provisions for COVID-19 surveillance, P51.56M; health facilities enhancement program, P4.8B; purchase of PPE's, P2.7B and a GenExpert Cartridge, P1 billion. A total of P1.107 trillion is allocated for infra projects, as follows: DPWH, P342.4B; DOTr, P122.7B for rail and public transport as well as maritime transport, and for information technology by DICT, P21.4B for medium term harmonization initiatives.

For recovery programs post pandemic: P2.28B for micro, small, and medium enterprises and another P1 billion for the Pondo Para Sa Pagbabago at Pag-asenso Program. For the industry development program of the DTI, 113.8 Band P6.27B for TESDA's skills development programs. The Pantawid Pamilyang Pilipino Program (4P's), P113.8B, for Social Pension for Indigent Senior Citizens, P23.19B; Financial Assistance For Poor Families and Individuals, P12.03B; Sustainable Livelihood Program, P4.27B; For Supplementary Feeding Programs, P3.70B; Balik Probinsya, Bagong Pag asa Program, P2.20B; for DOLE OWWA repatriation of OFWs, P6.15B and another P50 million for the reintegration of OFW returnees. The task force to end local communist armed conflict has P19.13B.

The saving grace of the 2021 budget is that it is apparently pro-poor, pro-labor and pro-OFWs. The only question is what percentage of all the money will find their way to the pockets of rascals, scoundrels, and scalawags. Well, we all have to be vigilant and watch our officials and their friend, Santa Claus dressed as contractors and suppliers. By the way, PhilHealth's budget should be one peso. COVID needs should come directly from DBM, never through PhilHealth. Do I need to say why?