DBM submits P5.024tr FY 2022 National Expenditure Program to Congress

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The Department of Budget and Management has submitted the Duterte administration’s last full-year budget on August 23, 2021 to Congress for scrutiny and approval.

With the theme, “Sustaining the Legacy of Real Change for Future Generations”, the FY 2022 National Expenditure Program (NEP) amounts to P5.024 trillion, which is equivalent to 22.8 percent of GDP and is higher by 11.5 percent than this year’s national budget.

By Expense Class

Bulk of the budget, in the amount of P1.456 trillion or 29.0 percent of the FY 2022 NEP, will go to Personnel Services expenditures to cover the hiring of healthcare workers and teaching personnel, the implementation of the third tranche of the Salary Standardization Law V, and the requirements of the 2018 Military and Uniformed Personnel pension arrears, among others.

Capital Outlays are pegged at P939.8 billion while Maintenance and Other Operating Expenditures will reach P777.9 billion next year. Debt burden amounts to P541.3 billion, which corners 10.8 percent of the FY 2022 NEP and is lower by 3.4 percent year-on-year. The support to Government-Owned and -Controlled Corporations, composed of National Government subsidies and equity, sums up to P178.0 billion while Tax Expenditures remain the same with this year’s level at P14.5 billion.

Finally, the allocation to Local Government Units (LGUs) will amount to P1.116 trillion. This includes the P959.0 billion National Tax Allotment share of LGUs, consistent with the Supreme Court ruling on the Mandanas-Garciacase.

By Sector

The Social Services sector will continue to receive the biggest chunk of the FY 2022 NEP with P1.922 trillion, which is higher by 15.2 percent compared to this year’s national budget. This will fund health-related services such as the continued implementation of the Universal Health Care Act, purchase of COVID-19 vaccines, procurement of personal protective equipment, and others. Education-related programs, including the implementation of the Universal Access to Quality Tertiary Education, will also be prioritized.

This is followed by the Economic Services sector, which will receive P1.474 trillion or 29.3 percent of the proposed budget. This inched up by 11.4 percent compared to the FY 2021 budget and will largely support flagship programs under the Build Build Build Program.

The General Public Services sector is allocated with P862.7 billion (17.2%), the Debt Burden with P541.3 billion (10.8%), and the Defense sector with P224.4 billion (4.5%).

By Top Ten Departments

The education sector covering the Department of Education (DepEd), State Universities and Colleges and the Commission on Higher Education (CHED), shall receive the highest allocation with P773.6 billion, higher by P21.9 billion or 2.9 percent compared to its share from the FY 2021 budget.

This is followed by the Department of Public Works and Highways (DPWH) with P686.1 billion, Department of the Interior and Local Government with P250.4 billion, Department of Health and the Philippine Health Insurance Corporation with P242.0 billion, Department of National Defense with P222.0 billion, Department of Social Welfare and Development (DSWD) with P191.4 billion, Department of Transportation (DOTr) with P151.3 billion, Department of Agriculture (DA) and National Irrigation Authority (NIA) with P103.5 billion, The Judiciary with P45.0 billion, and the Department of Labor and Employment (DOLE) with P44.9 billion.

In total, the budget of the top ten departments amounts to P2.71 trillion and comprises 53.9 percent of the FY 2022 NEP.

Spending Priorities

The FY 2022 NEP was carefully crafted to provide the necessary funding requirements to support the country’s resilience against the COVID-19 pandemic, to sustain the trajectory of economic growth, and to continue the legacy of infrastructure development.

Building Resilience Amidst the Pandemic

The government will continuously support the implementation of the National Health Insurance Program, with a budgetary support of P80.0 billion, to subsidize the health insurance premium of 13.2 million indigent families and 7.3 million Senior Citizens.

To combat the spread of the COVID-19 virus, the intensified roll out of the Prevention, Detection, Isolation, Treatment and Reintegration (PDITR) strategy will be prioritized through the procurement of 758,700 complete sets of personal protective equipment (P819 million) and 11 million GeneXpert cartridges (P5.1 billion). Meanwhile, P17.0 billion will also be allotted for the continuous hiring and deployment of health service professionals through the Human Resources for Health Program.

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