Palace to submit proposed 2011 budget to Congress Tuesday

Malacañang’s proposed P1.645-trillion national budget for 2011 will be submitted to Congress on Tuesday, in time for the constitutional deadline of one month after Congress opens its session. Budget Secretary Florencio Abad said he would submit the proposed budget to Congress at 4 p.m., August 24, “unless [President Benigno Aquino III] directs otherwise." Congress opened its session last July 26. The proposed budget for next year is P104 billion higher than this year’s P1.541 trillion. Abad said the budget department opted for “conservatism" as against the economic growth targets of 7-8 percent for gross domestic product (GDP) and 9-10 percent for gross national product (GNP). The proposed budget is also based on a 3-5 percent inflation rate and P45-47 foreign exchange rate, and on revenues of P1.41 trillion — P860.4 billion from the Bureau of Internal Revenue, P320 billion from the Bureau of Customs, P6 billion from privatization, and P144 billion from other sources. The deficit would be P290 billion or 3.2 percent of the GDP, Abad said. He said on sectoral basis, social services will get the allocation of P517.9 billion, followed by debt service with P372.1 billion, economic sector with P365.5 billion, general public service with P287.9 billion, and defense with P101.6 billion. Of the proposed budget, Abad said P950.7 billion would go to the national government agencies, P23.3 billion to the government-owned and -controlled corporations (GOCCs) and government financial institutions (GFIs), P298.9 billion to the local government units, and P372.1 billion to creditors. The government will pay P357.1 billion in interest payments and P15 billion for net lending, he said. Abad said new appropriations will make up P971 billion — P806.7 billion of which will go to the departments and P164.2 billion to special purpose funds. Automatic appropriations amounted to P674 billion. He noted that the following are the allocations for several departments: P207.3 billion for education, P110.6 billion for public works, P104.7 billion for defense, P88.2 billion for interior and local government, P37.7 billion for agriculture, P34.3 billion for social welfare, P33.3 billion for health, P32.2 billion for transportation and communications, P16.7 billion for agrarian reform, and P14.3 billion for the judiciary. Abad said the P8-billion subsidy for rice procurement was removed and the P4-billion equity for the Bangko Sentral ng Pilipinas would be deferred. The support for GOCCs dipped to P23.3 billion in the proposed 2011 budget from P59.1 billion in 2010, he added. Abad said no new positions would be created, except teachers and uniformed and medical personnel. He said the benefits of officials in GOCCs and GFIs would be tightened following reports that some of its officials are receiving excessive perks and bonuses. Additional expenses for utilities, communications and supplies would be limited and a moratorium in the construction of new office buildings and acquisition of motor vehicles would be imposed, he added. - Jesse Edep/KBK, GMANews.TV