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Friday, February 23, 2018

Duterte admin begins 2018 budget preparations

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By Chino S. Leyco

The Department of Budget and Management (DBM) has issued the Budget Call for 2018, signalling the Duterte administration’s first budget preparation process for the next fiscal year.

President Rodrigo Roa Duterte gives an assurance that he will not declare martial law in his speech during the 3rd Autonomous Region in Muslim Mindanao (ARMM) Local Government Unit Summit at the SMX Convention Center in Davao City on December 1, 2016. SIMEON CELI JR./Presidential Photo

MB File- President Rodrigo Roa Duterte (SIMEON CELI JR./Presidential Photo/Manila Bulletin)

The Budget Call for 2018 issued under National Budget Memorandum No. 127 contains the budget preparation guidelines and procedures for the formulation and submission of agency budget proposals for 2018.

“This Budget Call is being issued to require agencies to submit their Tier 1 budget proposal for FY 2018,” Budget Secretary Benjamin R. Diokno said in the memorandum dated December 28, 2016.

Diokno said the budget proposals should incorporate the priorities and policy directions of the Duterte administration, including the 10 point socio-economic agency of the new government.

The agencies’ budget proposals should incorporate strengthened multi-year focus of the budget, including the acceleration of infrastructure spending of five percent of gross domestic product (GDP), Diokno said.

He also said the agencies’ budget should be aligned with the administration’s goal of providing full support to the poorest, lagging and most climate vulnerable areas.

The Duterte administration also wants to restructure next year’s agency budgets under the program expenditure classification (PREXC) approach, and to be in line with the result-based monitoring, evaluation and reporting policy framework.

However, the new administrations is maintaining the adoption of the two-tier budgeting approach (2TBA) initiated by former President Benigno S. Aquino III.

The 2TBA is an approach that separates the evaluation of agency proposals for ongoing or existing programs and projects, and for new proposals and expansion of ongoing or existing programs and projects.

The objective is to decongest and systematize the decision-making process for the two types of programs.

The budgetary strategies including the unified accounts code structure, electronic tagging, online submission of all budget data and disaggregation of lump-sum amounts are retained by the government.

The DBM expects the agencies to submit their 2016 actual obligations, revenue program, and 2018 agency-formatted Tier 1 proposals by January 30 this year, and details of approved ceilings and new spending budget proposals for 2018 by March 31, 2017.

Based on the Development Budget Coordination Committee (DBCC) data, the Duterte administration is looking at proposing about P3.84 trillion national budget for 2018.

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