Budget cuts balloon to P34.5B; funds realigned to fight COVID-19

Budget cuts inflicted upon government agencies further ballooned to a net of P34.5 billion in July as more money was realigned into the COVID-19 response, Department of Budget and Management (DBM) data released on Monday showed.

The net adjustments from April to July showed the biggest reduction in the 2020 budgets of the Department of Public Works and Highways (P126.3 billion), the Department of Education (P21.9 billion), the Department of Transportation (P16.5 billion), the Commission on Higher Education (P13.9 billion), the Department of Agriculture (P13.9 billion), the Department of National Defense (P12.4 billion), as well as state universities and colleges (P9.3 billion).

The offices of President Duterte and Vice President Leni Robredo were not spared—the Office of the President had a P28.1-million reduction, while the Office of the Vice President suffered a bigger cut of P62.9 million.

In all, the respective budgets of 51 departments and other executive offices were reduced between April and July.

Budget Secretary Wendel Avisado earlier explained that the budgets for programs, activities and projects whose implementation could be delayed to next year were reallocated into immediate COVID-19-RElated financing.

This was reflected into the additional budgets injected into four front-line departments that led the fight against the Covid-19-induced health and socioeconomic crises, namely: the Department of Social Welfare and Development, which received an additional P165.1 billion; the Department of Finance (P35 billion); the Department of Labor and Employment (P5.6 billion); and the Department of Health, or DOH, (P1.9 billion).

These four departments and their attached agencies had disbursed the social amelioration program for poor families and displaced workers, as well as wage subsidies for small businesses. The DOH, meanwhile, was in charge of the health care and medical response against the disease.

From April to July, budgetary support to government-owned and/or -controlled corporations was reduced by P10.7 billion, while allocation to local government units, specifically in Metro Manila, was cut by P676.5 million.

From the realigned budget items, P35.8 billion was augmented to funds for priority Covid-19-related programs, projects and activities listed in Section 4 (v) of the Bayanihan law.

Another P10 billion in reallocated budget was transferred to the special account in the general fund, which the DBM had defined as “a fund whereby proceeds of specific revenue measures and grants earmarked by law for specific priority projects are recorded”—in this case, the Bayanihan law.

All P22.5 billion in the bigger special account was already released.

As of end-july, 94 percent, or P3.86 trillion, of the P4.1-trillion 2020 national budget was released, a faster pace than 89.1 percent a year ago as the pandemic entailed faster release of funds for crisis response.

A remainder of P244.9 billion in the 2020 budget needs to be released before year-end.