DOF eyes P21-B budget to boost digitalization bid

THE Department of Finance (DOF) is seeking a higher budget for 2022 as it aims to implement modernization and digitalization programs that will help raise more funds amid the Covid-19 pandemic.

In his presentation before the Senate Committee on Finance on Wednesday, Finance Secretary Carlos G. Dominguez III said the proposed budget for DOF for 2022 under new appropriations is P21.24 billion, or 32.7 percent higher than its approved appropriations this year of P16 billion.

Despite the year-on-year increase, Dominguez was quick to point out that this is still 1 percent lower than its 2017 budget of P21.5 billion.

“e increase in next year’s funding will be spent for our modernization and digitalization programs to enhance our revenue enforcement

capacity. ese programs will allow us to effectively raise more funds to finance our pandemic response and economic recovery program,” Dominguez explained.

If automatic (P1.64 billion) and unprogrammed appropriations (P210 million), and the budgetary support for government-owned and -controlled corporations (GOCCS) (P95 million) are included, the total proposed DOF budget for 2022 is P23.18 billion. Apart from the modernization program, Dominguez also attributed the increase in the DOF’S budget for 2022 to the implementation of the corresponding salary adjustments for the employees of the Department and its attached agencies under the Salary Standardization Law (SSL).

e largest budget allocations of the DOF for 2022 are for the Bureau of Internal Revenue (BIR) with P10.9 billion, and the Bureau of Customs (BOC) with P4.35 billion—to be spent to further improve tax administration and hasten the digital transformation of these two main revenue agencies.

e proposed allocation for BOC’S capital outlay will also grow 21 times from last year’s budget because of the rollout of the P1.58-billion Philippine Customs Modernization Project.

Supported by the World Bank, the project aims to transform the BOC into a world-class customs agency by streamlining and digitalizing its systems and processes. It is also expected to be partially operational by 2023 and is scheduled to be in full operation by 2024, Dominguez said.

BIR’S financial expenses will also rise by 21 percent because of the interest expense and financing charges for the lease-purchase agreement between the Bureau and the Land Bank of the Philippines to provide regional BIR Offices with their own buildings to better serve the public.