|
THE
national government is eyeing a P1.227-trillion budget
next year to be funded by revenues of P1.236 trillion,
Budget Secretary Rolando Andaya Jr. said on Tuesday.
The
proposed draft budget, which is P90.6 billion or
8-percent higher than this year’s P1.136-trillion
budget, is among the preliminary parameters contained in
the “Budget Call,” a 92-page guide in preparing budget
proposals that the budget chief sent to all agencies on
May 4.
Andaya
said in a statement that it would be “the first time in
years that the budget is formulated with income
projected to exceed expenses.”
“The
result is a balanced budget, the first that could be
achieved in more than a decade,” he said.
He said
the macroeconomic assumptions of the draft 2008 budget
are a gross domestic product (GDP) growth of 5.8 percent
to 6.6 percent, inflation rate of 3 percent to 4
percent, a 91-day Treasury bill rate of 4 percent to 5
percent, and a P49 to $1 exchange rate.
Andaya
said the assumptions may change, but the government
“shall be flexible enough during the budget preparation
phase to adjust to changes.”
He said
the projected peso-dollar exchange rate is the basis for
the “indicative amount” of P300.7 billion for debt
service in next year’s budget, P2.6-billion less than
the 2007 allocation, and may still go lower because it
is premised on a P49 to $1 exchange rate.
“[It is
an] assumption that could still improve together with
the entire economic outlook,” he said.
Personnel services, which covers 1.1 million national
government employees and the pension of police and
military retirees, is proposed to receive P377.6 billion
in the 2008 budget.
Andaya
said the amount is P23- billion more than 2007 because
of the pay hike for state workers and the hiring of more
teachers and policemen, to keep up with the growing
population.
The
government is eyeing a budget of P137.9 billion for
maintenance and other operating expenditures, up by
P17.9 billion from this year because of “inflationary
adjustments and additional funds for health programs.”
Under
the proposed draft budget, local governments will get a
higher internal revenue allotment share of P208.3
billion, or P24.3-billion more than their IRA in 2007,
because of better revenues reaped by the reformed
value-added tax.
Andaya
said infrastructure is proposed to receive a
“P156.6-billion shot in the arm” next year,
P22.6-billion higher than in 2007, while capital outlays
will increase to P208.5 billion from this year’s P182.4
billion.
He said
the Department of Education will continue to top other
departments in terms of budget allocation, consistent
with the provisions of the Constitution.
In his
National Budget Memorandum to government agency heads,
Andaya said the budget framework is anchored on
“achieving fiscal consolidation and balanced budget
consistent with the medium-term macroeconomic and fiscal
framework of the updated Medium Term Philippine
Development Plan.”
Andaya
said the Cabinet will review budget levels submitted by
agencies before they are collated in a budget bill and
submitted to Congress on or before August 23 or a month
after President Arroyo’s State of the Nation Address on
July 23. |
