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  • ‘Welfare armor’ in budget
    CONDITIONAL CASH TRANSFERS SWELL D.S.W.D. BUDGET BY 117 PERCENT
     
    By Fernan Marasigan and Mia Gonzalez
    Reporters
     

    AMID the national crises brought about by world problems in oil and food prices, the Department of Social Welfare and Development (DSWD) will have the biggest funding increase—117 percent, or from this year’s P4.8 billion to P10.5 billion next year—from the proposed P1.415-trillion 2009 budget. This will give the DSWD more “welfare armor” in the form of conditional cash transfers (CCTs) and subsidies to families at risk from food and fuel price spirals.

    This was contained in the National Expenditure Program for 2009—which has a P188-billion or 15.4-percent increase over the 2008 budget—submitted by Malacañang on Wednesday to the House of Representatives.

    To give the government the flexibility to address the economic challenges, Budget Secretary Rolando Andaya Jr. said it has jettisoned the timetable to balance the budget this year.

    “The need to provide the vulnerable social protection takes precedence over the satisfaction of turning in a balanced-budget scorecard,” Andaya said.

    “We will balance the budget in 2010 so our deficit target this year is P75 billion. Next year our target is 0.5 percent of GDP [gross domestic product], so [our 2009 budget deficit is] roughly P40 billion,” he said, mostly in Filipino.

    Although the DSWD got the biggest funding hike, the top recipient of funds in 2009 is still the Department of Education (DepEd), with a budget of P167.9 billion.

    Andaya said DepEd’s P19.8 billion-budget increase next year will allow it to hire 10,000 teachers and 2,000 nonteaching personnel; build 8,100 classrooms and 750 science labs; buy 35.8 million textbooks; and 1.79 million chairs and provide P7.2 billion in maintenance and other operating expenses to schools, among others.

    At the same time, there will be an increase in teachers’ salary from the P12,000 entry level to P18,000, and for doctors from P15,000 to P27,000.

    “Our professionals no longer need to go abroad,” Andaya said.

    The Department of Agriculture and the Agriculture and Fisheries Modernization Act will get a 56.1-percent increase or from P25.4 billion this year to P39.7 billion next year.

    “We are pumping up spending for agriculture because we cannot forever rely on foreign granaries to feed our people,” Andaya said.

    The Department of Public Works and Highways will have an increase of 17.2 percent, or from P102.4 billion to P120 billion “as roads being built generate jobs, and when finished, spur economic activities,” Andaya said.

    He said President Arroyo is submitting the proposed joint resolution, as agreed upon in the Judiciary, Executive and Legislative Advisory and Consultative Council meeting, where top government heads agreed to have the Salary Standardization 3.

    “The total fund for the first round of salary increases for all government employees is P20 billion. Our government employees have long been waiting for this,” Andaya said.

    The Department of Health’s budget will be hiked to P27.8 billion, or a 37-percent hike.

    Had the conflict in Mindanao broken out during the crafting of the budget, Andaya said it will also get a significant increase in the budget which will focus more on war materiél, particularly its air assets. But he said, “We will welcome realignments or amendments made by Congress for Mindanao.”

    Defense spending will be hiked from P61 billion to P65.2 billion.

    While debt service will increase to P302 billion in 2009, Andaya said the government is still looking for ways to reduce it.

    “Its share in the budget pie...continues to follow the downward trajectory from 31.6 percent in 2005, to 23.2 percent in 2007 to 22 percent in 2008 to 21.4 percent in 2007,” Andaya said.

    The budget chief said that by sectoral allocation, the government is increasing the share of economic services from P299 billion this year to P361.4 billion next year; social services is increased from P377.5 billion to P434 billion; and defense spending, from P61 billion to P65.2 billion, “largely on account of military pension pressures and rise in petroleum prices.”

    The budget chief said the 2009 budget is premised on revenues of P1.393 trillion, “representing a 16.3-percent revenue effort, and 11.4-percent higher than this year’s projected take of P1.25 trillion.”

    The Bureau of Internal Revenue is expected to generate P 968.2 billion next year and the Bureau of Customs, P300 billion.

    He said the 2009 budget is anchored on the following macroeconomic assumptions: GDP growth of 6.1 to 6.8 percent; inflation rate of 6 percent to 8 percent; Dubai oil at $115 to $125 per barrel; exports growth rate of 7 percent; and foreign exchange forecast band of P42 to P45 to the dollar.

    Meanwhile, Liberal Party Rep. Junie Cua of Quirino, the newly-elected chairman of the House appropriations committee, said committee hearings will start on September 3 and he hopes to finish them on September 17.

    “Thereafter, we will conduct the subcommittee hearings and we will go into plenary [session], hoping that before we adjourn on October 10 we should have passed this on second reading,” Cua said.

    He also said that like in 2007, the House welcomes the participation of nongovernment organizations and people’s organizations to participate in budget deliberation.

    Cua vowed that his committee would thoroughly scrutinize the budget proposal.

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