DOF proposes lower budget for 2018

The Department of Finance (DOF) is proposing a P19.73-billion budget for 2018, 16 percent lower than the P23.23 billion budget this year.

In a statement, Finance Secretary Carlos Dominguez III said the trimmed down budget reflects the DOF’s efficiency in operations and budget use.

“The DOF voluntarily submitted a lower budget for 2018 compared to the preceding year to set an example for other departments to operate efficiently,” Dominguez said.

The House Committee on Appropriations has endorsed the P19.73-billion budget sponsored by Camarines Sur Rep. Luis Raymund Villafuerte.

Dominguez said the DOF and its attached agencies’ proposed budget for 2018 is lower as majority of their capital outlays, and property, plant and equipment were already provided for in the 2017 budget.

He said this was also a result of the drop in the allocation for the Bureau of the Treasury, whose budget was cut to P4.36 billion from P6.46 billion this year due to the absence of one-time payments, particularly the Philippine government’s capital subscription to the Asian Infrastructure Development Bank.

The Philippines contributed P1.9 billion to the China-led AIIB as capital infusion in February. As a member of the AIIB, the Philippines is required to shell out $196 million in capital contribution, payable in five years or $39 million per year.

Other agencies also proposed lower budgets this year, including the Bureau of Customs at P3.11 billion from P3.82 billion; Bureau of Internal Revenue, to P8.04 billion from P8.57 billion; Insurance Commission, to P6 million from P7 million; Securities and Exchange Commission, to P629.87 million from P646.86 million; and the Central Board of Assessment Appeal to P18.63 million from P19.11 million.

Despite the decrease in the proposed budget of the agencies, Villafuerte assured the DOF and its agencies would continue to expand their programs.

“While there is a slight reduction in the DOF budget, the department will continue to expand its programs, projects and services – particularly the BIR’s Revenue Administration Program, which comprises 79 percent of its budget; the BTr’s Financial Asset Management Program, which also comprises 79 percent of its budget; and the BOC’s Customs Revenue Enhancement Program, which comprises 38 percent of its total budget,” he said.