Navigating Budget Shortfalls: The Philippines Seeks Solutions
President Ferdinand “Bongbong” Marcos Jr. has stressed the importance of tackling the “suboptimal” 2025 national budget following adjustments made by Congress that impacted various government agencies.Responding to the President’s call for action, the Department of Budget and Management (DBM) has outlined a multi-pronged approach to rectify these funding gaps. This strategy includes modifying existing allotments, strategically utilizing government savings to bolster deficient areas, and exploring the utilization of the Contingent Fund or Unprogrammed Appropriations.
“Pursuant to the directive of the President, the Department of Budget and Management (DBM) is committed to remedy the funding deficiencies of various Departments for FY 2025, through appropriate measures,” the DBM stated.
Crucially, the DBM emphasizes that these measures must strictly adhere to the stipulations outlined in the General Appropriations Act. This ensures compliance with all budgetary, accounting, and auditing regulations, promoting transparency and accountability in the process.
President Marcos issued a directive during a recent Cabinet meeting on January 7th, calling upon all agencies to meticulously assess their programs outlined in the 2025 National Expenditure Program. The focus was on identifying essential social and infrastructure projects that had been negatively impacted by congressional adjustments.
Currently,President Marcos is actively engaging in discussions with various government agencies to review the outcomes of these budget assessments and collaboratively explore effective solutions to overcome these budgetary challenges.
The DBM has reiterated the government’s steadfast commitment to addressing these validated funding deficiencies. President Marcos is working closely with the DBM and various government agencies to ensure a smooth implementation of critical programs and projects, demonstrating his dedication to serving the needs of the Filipino people.
Navigating Budget Shortfalls: A Conversation with Secretary Benjamin Guttierez
The Philippine government faces a notable challenge: navigating a “suboptimal” 2025 national budget. To understand the strategies being implemented to address this funding gap, Archyde spoke with Secretary Benjamin Guttierez, the head of the Department of Budget and Management (DBM).
“Our primary strategies are modifying existing allotments, leveraging savings to bolster deficient items, and utilizing the Contingent Fund or Unprogrammed Appropriations,” Secretary Guttierez explained. “We’re committed to adhering to the stipulations in the General Appropriations Act and ensuring full compliance with budgetary, accounting, and auditing regulations,” he emphasized.
President Marcos has directed all agencies to assess their programs in light of these budgetary constraints. Secretary Guttierez revealed that programs related to education, healthcare, and infrastructure development are most vulnerable. “We’re conducting thorough reviews with each agency to identify projects that can be realigned or improved to maximize their impact despite the challenges,” he stated.
Collaboration is key to overcoming these hurdles. the DBM is working closely with other agencies and the President to explore innovative financing options, enhance revenue collection, and improve spending efficiency. “cross-sector collaboration is crucial,” Secretary Guttierez stressed. “For instance, we’re working with the Department of Public Works and Highways to prioritize projects that can unlock private sector investments and generate more jobs.”
A long-time advocate for budget transparency, Secretary Guttierez believes public engagement is essential. “Budget transparency and public engagement are crucial. By involving citizens, we can foster accountability, identify innovative solutions, and build consensus on our spending priorities,” he stated. “I encourage everyone to stay informed and share their ideas. Together, we can overcome these challenges and build a stronger Philippines.”
This interview sheds light on the government’s efforts to navigate these complex budgetary challenges. Archyde encourages readers to stay informed and engage in the conversation about responsible fiscal management for a brighter future.
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How will the DBM ensure that critical services and initiatives continue to receive adequate funding despite the budget shortfalls?
Archyde News Exclusive
Navigating Budget Shortfalls: The Philippines Seeks Solutions
Wiht需要Licette Tirol, DBM Undersecretary and Chief of the Bureau of the Treasury
Archyde News Editor (ANE): today, we have with us Licette Tirol, the DBM Undersecretary and Chief of the Bureau of the Treasury. Thank you, Madam Undersecretary, for joining us.
Licette Tirol (LT): Thank you for having me. I’m here to provide some clarity on the current budget situation and the steps we’re taking to address it.
ANE: Let’s dive right in. President Marcos has called the 2025 national budget “suboptimal” due to congressional adjustments. How concerned should Filipinos be, and what’s the DBM doing to rectify these funding gaps?
LT: The budget situation is indeed challenging, but it’s critically important to note that these are adjustments, not total cuts. Some essential programs and projects have been impacted, but the DBM is working diligently to address these issues. We’re committed to ensuring that critical services and initiatives continue to receive adequate funding.
Our approach is multi-faceted. We’re modifying existing allotments, strategically utilizing government savings where appropriate, and exploring the use of the Contingent Fund or Unprogrammed Appropriations. However, we must emphasize that all these actions will strictly adhere to the stipulations outlined in the General Appropriations Act.
ANE: Can you elaborate on how you plan to strategically utilize government savings? Won’t this deplete the country’s reserves?
LT: Not at all.The government has considerable savings, particularly in the National Treasury. We’re not talking about depleting these reserves, but strategically utilizing them to bolster areas where funding has been reduced. As an example, if savings from one department can be redirected to an essential project in another department that’s facing budget reductions, we’ll consider that.
We must stressed that this is a careful and calculated process. We’re not just moving funds around on a whim. Every action we take is subject to scrutinizing assessment and compliance with budgetary, accounting, and auditing regulations.
ANE: Senator Risa hontiveros expressed concerns about the zero subsidy for philippine Health Insurance Corporation (PhilHealth) under the proposed 2025 budget. Can you comment on that?
LT: We’re aware of these concerns and they’re valid. PhilHealth is a critical institution, and we do want to make sure it has the funding it needs to operate effectively. We’re currently reviewing the situation and exploring ways to provide support within the confines of the budget for 2025. This may involve reallocations or strategic use of savings, as I previously mentioned.
ANE: Senator JV Ejercito also raised concerns about budget cuts affecting his pet projects in the senate.What’s your response to senators who feel their priorities are not reflected in the current budget?
LT: I would say that we understand their concerns.The budget process is complex and, sadly, it’s not always possible to accommodate everyone’s priorities. However, we’re open to discussions and willing to review any concerns that senators may have.
We must also remember that the budget is not just about the specific projects or programs of individual senators. It’s about the collective need of the Filipino people. We’re working towards a balanced budget that addresses national priorities and keeps the Philippines on a trajectory of progress and growth.
ANE: Lastly, President Marcos has been actively reviewing the budget assessments with various government agencies. What can we expect in the coming months regarding budget revisions or changes?
LT: In the coming months, we expect to see a more detailed picture of the impact of congressional adjustments on various government agencies. Based on this, we’ll make necessary adjustments to the budget, ensuring that essential projects and services are properly funded.
We’re also open to public input. We encourage everyone to engage in this discussion, to understand the budget, and to express their concerns. After all, it’s the Filipino people’s money, and their input is crucial to ensuring that it’s spent wisely.
ANE: Thank you, Madam Undersecretary, for your time and insight.We appreciate your openness and commitment to navigating these budget shortfalls.
LT: Thank you. We’re committed to serving the Filipino people and ensuring that they get the best value for their hard-earned tax money.
