DBM prepares P4.3-T 2021 budget; eyes submission during second week of August

The Department of Budget and Management (DBM) said Wednesday it is now preparing the details of the proposed P4.3-trillion national budget next year.

“Tuloy tuloy ang paghahanda natin sa pagsumite ng 2021 national budget,” Budget Secretary Wendel Avisado said during the Laging Handa public briefing.

“Sa kasalukuyan patuloy ang technical budget review ng mga isinumiteng proposed budget ng lahat ng mga kagawaran,” the Budget chief said.

The proposed P4.3 trillion budget next year, which is 5% higher from this year’s P4.1 trillion, will prioritize the government’s efforts to continue its fight against the pandemic.

“Lahat ng ito ay nakatuon sa priorities ng national government in line with our desire to continue to combat COVID-19,” Avisado said.

The Cabinet official said the executive branch is targeting to submit to the Congress the 2021 budget bill by the second week of August.

The executive have 30 days to submit the proposed budget for legislation after the President’s state of the nation address, which is scheduled every fourth Monday of July.

Avisado said the 2021 budget will also concentrate more on labor intensive project to give income opportunities to the most vulnerable and affected sectors that were hit by the economic fallout brought by the health crisis.

The Philippines Statistics Authority earlier reported that the unemployment rate in April soared to a record-high 17.7%, translating to 7.3 million jobless Filipinos.

Asked how the government intend to source funding for the 2021 budget, Avisado explained that the national budget is comprised of locally sourced revenues and taxes and borrowing.

The Cabinet official said that borrowing are usually intended to finance certain projects, which are programmed to be funded by loans or official development assistance.

The government is projecting the budget deficit to rise to P1.612 trillion or 8.4% of gross domestic product (GDP) this year due to the fiscal challenges brought by the pandemic. — RSJ, GMA News