THE SENATE has officially started its deliberations on the proposed P5.768 trillion national budget for 2024 with the briefing of the Development Budget Coordination Committee on the macroeconomic assumptions and key data for the all-important measure. By rule, it is the House of Representatives that goes over the budget measure first, initially in the form of the National Expenditure Program (NEP). But in order to expedite the process and as part of tradition, the Senate simultaneously conducts its own hearings on the NEP, through the Committee on Finance.
This is the fifth budget measure that I am handling as Chairman of the Finance Committee and it is always a challenge to strike a balance between fulfilling limitless needs and working with limited funds. The 2024 proposed budget is no different. The requirements of the country remain the same but generating the revenues needed to fund these have become more challenging, particularly with the economy just recovering from over two years of inactivity as a result of the COVID-19 pandemic.
What is encouraging with the 2024 proposed budget is its focus as reflected in the theme “Agenda for Prosperity: Securing a Future-Proof and Sustainable Economy.” Just like the State of the Nation Address of President Ferdinand Marcos Jr., the 2024 NEP is forward-looking and hews closely to the Medium Term Fiscal Framework, which the Department of Finance describes as “the government’s blueprint to steer the economy back to its high-growth trajectory.”
Among the priorities of the 2024 budget is ensuring food security. Consumers have been dealing rising prices of food, particularly rice, vegetables, pork and fish. This is the result of a combination of factors such as low production, high transport costs and bad weather. We were just hit by two successive typhoons that caused massive flooding and damage to agriculture in the Central Luzon and other parts of the country. This is while we are in the midst of El Niño, which is expected to bring about severe drought in most parts of the country in the coming months. Programs to support farmers and fisherfolk are included in the proposed budget to increase production and eventually, stabilize supply and prices for the benefit of consumers.
Another priority in the 2024 budget is on reducing transport and logistics cost through various infrastructure projects as part of the Build Better More program of the administration. A significant amount of funding was proposed for the Department of Transportation to implement its Rail Transport, Land Public Transport, Aviation Infrastructure, and Maritime Infrastructure Programs. Most of the projects will not be completed in the near term but with funding provided under the proposed budget, we can be assured the implementation of these will continue and hopefully, be completed within their target dates.
And even though we are no longer in a pandemic, the 2024 budget provides for the continued strengthening of our country’s health system. This includes the health facilities enhancement program and beefing up the operations of the Department of Health-run hospitals. On a sectoral basis, health has the third highest allocation, just behind education and public works. It is important to keep our health system prepared for future emergencies. We can no longer afford to be caught off guard when the next health crisis strikes.
The 2024 budget also recognizes the need to enhance the digital economy and the administration has proposed a corresponding 60 percent increase in the allocations for ICT and digitalization from the current year. This includes improving internet access and speeds through the National Broadband Plan, the National Government Data Center Infrastructure and the National Government Portal.
Programs related to flood control, water sufficiency, coastal and marine resources management and enhancing our forest cover are also included under the umbrella of promoting sustainability. Keeping our people and communities safe and ensuring that they have sufficient access to clean water are key priorities that have emerged and will require sustained interventions if we are to address these for the long term.
In line with our Tatak Pinoy or Proudly Pinoy advocacy, the budget measure contains funding for programs to advance research and development and innovation (R&D). This includes the continued support to the Innovation Fund, the R&D of our state universities and colleges, the Small Enterprises Technology Upgrading and the Science for Change Programs under the Department of Science and Technology.
In the coming weeks and months, the Finance Committee, with our very capable vice chairpersons, will start to dive into the proposed budgets of all government departments, agencies and offices. As what we have done in previous years, we will work non-stop with the goal of approving the measure on time and providing our people with the services that they deserve./PN
