Unprogrammed funds, including P45B for booster shots, to get affected if revenue targets aren't hit -DBM

Some P151 billion in unprogrammed appropriations in 2022, including the P45-billion budgetary requirement for the purchase of COVID-19 booster shots, would be affected should the government fail to hit its revenue targets.

During the House Committee on Appropriations’ deliberation on the proposed P5.024-trillion national budget for 2022, upon questioning by Marikina 2nd District Rep. Stella Luz Quimbo, the Department of Budget and Management (DBM) said the unprogrammed funds will be the first to get affected if the revenue targets of the government will not be reached.

“Yes, theoretically because that means lesser collections would mean lesser amounts to generate under windfall revenues,” DBM officer-in-charge Tina Rose Canda said.

With this, Quimbo questioned the move of the DBM to put the P45-billion requirement for COVID-19 booster shots under unprogrammed appropriations.

The DBM defines unprogrammed appropriations as those items which will be funded “when revenue collection exceeds targets and when additional grants of foreign funds are generated.”

Canda explained that the fund for COVID-19 booster shots is under unprogrammed appropriations “in the absence of any definitive ruling from the IATA (International Air Transport Association) and DOH (Department of Health) that it is a requirement at this point.”

“Hindi po namin siya binigyan [ng pondo] dahil hindi pa nga po namin sigurado kung talagang kailangan ‘yan dahil wala pa nga pong assurance na kailangan ‘yun. That is the reason why it is included in the unprogrammed appropriations,” she said.

(We did not allocate funds for it because we are still uncertain if it is really required due to lack of assurance that it is needed.)

The US government has already authorized administration of booster or third COVID-19 vaccine shot, but the Philippine Health Department has said that booster shots are not yet needed at this point since all vaccines issued with emergency use authorization by the Philippine Food and Drug Administration are all safe and effective so far.

Likewise, presidential spokesperson Harry Roque said that fully vaccinating as many people, especially in Metro Manila which is the epicenter of the COVID-19 pandemic in the country, takes precedence over booster shots.

Quimbo raised the question as she floated the possibility of another hard lockdown next year which could impact the economy and state revenues.

Citing the Development Budget Coordination Committee’s (DBCC) estimates, the lawmaker said that every one percentage point lost in terms of the gross domestic product (GDP) translates to P28 billion lost in tax revenue.

The DBCC’s revenue projections for the medium-term are P2.88 trillion for 2021 or 14.5% of GDP and P3.29 trillion for 2022 or 14.9% of GDP.

Despite placing the booster shots under unprogrammed appropriations, Canda said the amount for the whole immunization or the vaccination requirements for the two shots, or even one shot vaccine protocol is included in the national budget.

“In fact, we can inoculate 80 million people this year given our current budget,” she said.

“Rest assured that sufficient funds are in the budget of the DOH for the procurement of the vaccines,” she said.

House committee on appropriations chairperson Representative Eric Yap earlier said the lower chamber is willing to place the said budget requirement under programmed appropriations. -MDM, GMA News