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A “RESULTS-FOCUSED” 2012 national budget proposal of P1.816 trillion was yesterday submitted by Malacañang to the House of Representatives, whose leaders pledged approval before this year ends.
“We will do our earnest to see to it that we follow a schedule to enable the President (Benigno S. C. Aquino III) to approve it before the end of the year as in the case of the 2011 budget,” House Speaker Feliciano R. Belmonte, Jr. told reporters.
The proposal — some 10% higher than this year’s outlay of P1.645 trillion — was submitted to Mr. Belmonte and appropriations committee chairman Rep. Joseph Emilio A. Abaya (1st district, Cavite) by Budget Secretary Florencio B. Abad.
The Budget department, in a statement, said spending on social services would account for nearly a third of the outlay at P575.8 billion, up 10.4% from this year.
Economic services, meanwhile, will get P438.9 billion, around a fourth of the total, an increase of 21.3%.
Debt servicing will cost P356.1 billion, some 20% of the budget and down 4.3% from the 2010 allocation.
Finally, general public services and defense will get P332.1 and P113.1 billion, respectively, of next year’s outlay.
By agency, the Department of Education will get the largest allocation at P238.8 billion, a 15.2% increase. The biggest allocation increase — 43.9% to P49.4 billion — goes to the Department of Social Welfare and Development.
Next year’s budget, Mr. Abad said, is based on the following assumptions: gross domestic product growth of 5.5-6.5%, a 3-5% inflation rate and a deficit of P286 billion. Revenues are projected to reach P1.57 trillion, of which P1.45 trillion will come from taxes and P123 billion from sources such as charges, fees and foreign grants.
Foreign borrowings will be cut by 31% to $2.25 billion, while local borrowings will be reduced by 3% to P529.5 billion. The borrowing cuts will be offset by loans of nearly $1.8 billion, up 52% from this year, from multilateral institutions such as the World Bank.
Budget deliberations at the House will begin on Monday with approval on third and final reading expected on Oct. 12, Mr. Abaya said. Final Congress approval is expected before Dec. 15. — with a report from Reuters
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Source: Business World, July 27, 2011
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