The Department of Budget and Management is already preparing a P4.3 trillion national budget proposal for 2021 that Malacañang would submit to Congress.
According to Budget Secretary Wendel Avisado, this has increased slightly compared to the current national budget of P4.1 trillion for 2020.
Avisado said if they could not submit the proposal for the State of the Nation Address in July, they would send it by the second week of August.
He also said that DBM is conducting a technical budget review on budget proposals of various departments and that the executive budget review will begin in the first week of July.
The 2021 national budget would focus on the government’s programs to fight COVID-19.
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Government has money, purchase powers limited
The Department of Finance Secretary Carlos Dominguez III explained why President Rodrigo Duterte always says the government is running out of money for COVID-19 response.
Dominguez said the Philippines has money, but its spending capability is limited by what the legislators have approved under the law.
“In government kasi, in government, you have cash and you have budget. Even though we have the cash, we can only spend what the legislator allows us to spend, so we have a budget,” Dominguez said during the Kapihan sa Manila Bay virtual forum.
The President in January signed into law the P4.1-trillion General Appropriations Act (GAA) for 2020, with P654.6 billion allotted to the education sector.
According to Finance Secretary Dominguez, the Philippines already borrowed P1.2 trillion and $4.8 billion to boost the government’s COVID-19 response.
Duterte needs another emergency powers
Malacañang said Wednesday President Rodrigo Duterte needs emergency powers again to expedite purchases to continue the government’s COVID-19 response.
Presidential spokesperson Harry Roque released the statement as the Bayanihan to Heal as One Act, which first granted Duterte emergency powers, is set to expire on Thursday, June 25.
“For now, we have everything that we need. Of course, we would need to have emergency powers again because it takes forever to comply with the Procurement Act for purposes of emergency medical purchases,” Roque said in an interview over ANC.
“The most important power we can no longer exercise is the purchase of COVID, medical-related materials. And so far, I think we’re in good shape,” he added.