P2.412-B allotted for MSME dev't in 2027 —DBM

The Department of Budget and Management (DBM) said Thursday about P2.412 billion was earmarked under the proposed P7.2-trillion 2027 national budget to help uplift micro, small and medium enterprises (MSMEs) in the country.

In a statement, the DBM said the amount was proposed under the Department of Trade and Industry’s (DTI) MSME Development Program.

The initiative aims to help 501,253 MSMEs nationwide improve productivity, strengthen their businesses, and become more competitive in domestic and global markets.

Of the proposed amount, P937.397 million will fund locally funded projects that directly assist entrepreneurs.

Of the P937.397-billion, P472.468 million is proposed for the establishment and operation of Negosyo Centers, which provide entrepreneurs with business registration assistance, advisory services, business information and advocacy, product development, trade promotion, and financing facilitation.

The DBM said another P464.929 million is proposed for the Shared Service Facilities Project, which gives MSMEs shared access to technology, machinery, equipment, tools, and other production facilities that many small enterprises may otherwise be unable to afford on their own.

The Budget Department added that the proposed 2027 budget also provides P840.170 million for the Pondo sa Pagbabago at Pag-Asenso Program of the Small Business Corporation as the government recognizes that access to capital remains one of the biggest hurdles confronting Filipino entrepreneurs.

The agency said the program is expected to provide affordable financing support to at least 40,000 MSME borrowers, giving more small entrepreneurs access to legitimate financing that can help them sustain or expand their businesses.

Overall, the DBM said the DTI’s total target of 501,253 MSMEs to benefit from its program is equivalent to 41% of MSMEs in the manufacturing, retail trade, construction, and services sectors.

The Trade Department likewise aims to serve 1.065 million clients through Negosyo Centers nationwide, according to the Budget Department.

For his part, Acting Budget Secretary Kim Robert de Leon said supporting MSMEs is essentially about supporting the people and communities that depend on them.

The proposed budget also includes P288.520 million for the Rural Agro-Enterprise Partnership for Inclusive Development and Growth Project —a foreign-assisted initiative that supports rural enterprises and connects small producers to stronger and more inclusive value chains, according to the DBM.

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—Ted Cordero/RF, GMA News