Good morning to the members of the Committee. I am presenting today the proposed National Budget for Fiscal Year 2023.

Our National Expenditure Program is anchored on the theme Agenda for Prosperity. We are one with the President in moving the country forward through united efforts for economic transformation. Our economic transformation will be propelled by our programs to empower the Filipino, ensure food security and Build Better More. 

Finally, our agenda for prosperity is one that ensures inclusivity - that no Filipino would be left behind; and sustainability, that our economic progress is mindful of climate change and sustainable development goals.

Hence, the theme Agenda for Prosperity: Economic Transformation towards Inclusivity and Sustainability. The Php 5.268 trillion proposed National Budget was crafted, based on and in support of the Administration’s Medium-Term Fiscal Strategy. This budget will set us on the path to attain the following headline goals of this Administration:

• Bring down the deficit to 3% of GDP by 2028;
• Less than 60% NG debt-to-GDP ratio by 2025; and
• 9% or single-digit poverty rate by 2028.

I will start with the discussion on the medium-term fiscal targets, key budget dimensions, followed by the highlights of the FY 2023 Proposed National Budget, which is classified into four main pillars:

1. strengthen the purchasing power of Filipinos;
2. reduce vulnerability and mitigate scarring from the COVID-19 pandemic;
3. enhance bureaucratic efficiency; and
4. provide support to local governments.

Overall, the budget is consistent with the priorities outlined by the President during his first State of the Nation Address. This budget is a springboard for the economy’s full-speed recovery and meaningful structural reform.

Against that backdrop, the DBM received a total of Php 8.66 trillion worth of agency budget proposals for 2023. The DBM spent the past few months evaluating them to accommodate the priority programs of the national government considering the DBCC-approved expenditure ceiling of Php 5.268 trillion. The proposed budget is 4.9 percent higher than this year’s budget, and is equivalent to 22.2 percent of GDP.

On budget aggregates and dimensions

Personnel services expenditure will have the largest share of the proposed budget at 31 percent or Php 1.631 trillion. This is 16.1 percent larger when compared to this year’s GAA level on account of the implementation of the fourth and last tranche of the Salary Standardization Law (SSL) V next year, pension requirements, creation and filling up of positions, and allocation for the implementation of the National Government (NG) Rightsizing Program.

Capital outlays will get the second largest share at almost 18.6 percent, equivalent to Php 980.3 billion and expanding by 0.3 percent year-on-year for various infrastructure programs of the NG, such as road and transport infrastructures.

Allocations to Local Government Units (LGUs) will amount to Php 962.2 billion, representing 18.3 percent of the proposed budget next year. However, this decreased by 11.3 percent from this year’s level largely due to the lower National Tax Allotment (NTA) for FY 2023 with the lower actual 2020 revenue collections of the NG amid the COVID-19 pandemic.

Meanwhile, maintenance and other operating expenses (MOOE) will total to Php 873.2 billion, or 16.6 percent of the proposed budget next year. This will mainly fund the implementation of various education, health, and social protection programs of the NG, as well as the operations of line departments/agencies.

The support to government-owned and –controlled corporations (GOCCs), composed of subsidy and equity, will reach Php 195.8 billion or 3.7 percent of the proposed budget. This will grow by 8.4 percent owing mainly to the higher subsidy requirements of the Philippine Health Insurance Corporation (PHIC), the National Food Authority (NFA), and the National Irrigation Administration (NIA).

Meanwhile, debt burden will be provided with Php 611.0 billion or 11.6 percent of the proposed budget. This consists of the Php 28.7 billion net lending assistance to GOCCs and Php 582.3 billion interest payments. Tax expenditures will be allocated with Php 14.5 billion, the same level this year.

By recipient unit, National Government Agencies (NGAs) will capture 66.4 percent of the proposed budget, equivalent to Php 3.499 trillion. This will fund the operations and implementation of various programs and projects of line departments/agencies.

The LGUs will get 18.3 percent of the proposed budget with Php 962.2 billion, composed largely of the Php 820.3 billion NTA and the Php 64.8 billion Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) Block Grant. Meanwhile, GOCCs will be allocated with Php 195.8 billion or 3.7 percent of the proposed budget.

A total of Php 611.0 billion will be set aside for payment to the government’s creditors. This is equivalent to 11.6 percent of the proposed budget.

In terms of the sectoral breakdown of the proposed budget for FY 2023, the biggest allocation will be provided to the Social Services Sector, amounting to Php 2.071 trillion or 39.3 percent of the Php 5.268 trillion expenditure program. This is followed by the Economic Services Sector, which will receive Php 1.528 trillion, equivalent to 29.0 percent. As in previous years and consistent with the current Administration’s goal to reduce poverty, usher in economic transformation, and accelerate economic recovery, these two sectors remain to be the government’s top priorities.

Meanwhile, the General Public Services Sector will be allocated with Php 807.2 billion (15.3 percent), Debt Burden with Php 611.0 billion (11.6 percent), and Defense with Php 250.7 billion (4.8 percent).

Of the total Php 5.268 trillion FY 2023 proposed budget, Php 3.011 trillion or 57.1 percent will be directly allocated to the regions.

In terms of the regionalized budget, NCR will get Php 989.8 billion or 18.8 percent. Meanwhile, per major island group, Luzon will receive Php 954.5 billion (18.1 percent), Visayas at Php 437.6 billion (8.3 percent), and Mindanao at Php 628.7 billion (11.9 percent).

Meanwhile, the remaining 42.9 percent or Php 2.257 trillion will go to the non-regionalized budget. This is composed of the Nationwide and Central Office allocations, amounting to Php 1.869 trillion and Php 388.7 billion, respectively.

Now, here are the top 10 departments based on allocation. Please note that except for the Education Sector, the budget for these departments is net of their personnel services (PS) requirements.

While these departments were also last year’s top 10 list, this ranking reflects the Administration's priorities.

The proposed budget for these top 10 departments will total Php 2.469 trillion, equivalent to around 46.9 percent of the Php 5.268 trillion proposed FY 2023 National Budget.

Next, here are the top ten (10) departments ranked based on their percentage increase vis-à-vis the FY 2022 GAA. Again, except for the Education Sector, the budget for these departments is net of their personnel services (PS) requirements. The highest budget increase went to Transportation with a 147.7 percent increase; and to Agriculture with a 42.7 percent increase.

For DPWH, while there are substantial increases for its routine maintenance of national roads and bridges, for feasibility study/project development/preliminary and detailed engineering, payment of right-of-way, and foreign-assisted projects, these were tempered by lower allocation for asset preservation program from non-recurring capital outlay projects, and lower convergence and special support program due to the devolution of some projects based on the Department's Devolution Transition Plan.

Now let me highlight the key features of next year’s proposed budget.

The FY 2023 Proposed Budget is tailor-fit according to the 8-point socioeconomic agenda which outlines strategies intended to address the immediate issues of inflation, socioeconomic scarring, and low income.

To arrest inflation, constraints in food, energy, and transportation and logistics sectors will be holistically addressed to ensure that there is enough supply of basic goods and services that is affordable and accessible to all.

To reduce vulnerability and scarring from COVID-19, the government will continue to implement risk-managed interventions to fully reopen the economy and ensure the unimpeded and adequate delivery of social services, such as health, education, and social protection. These will be complemented with the promotion of productivity-enhancing investments while exercising prudence in fiscal management.

Now, let me talk about the pillars of the proposed budget.

The first pillar aims to strengthen the purchasing power of the Filipinos considering the continuing inflationary pressures from both global and domestic sources. Hence, the FY 2023 Proposed National Budget includes programs that will ensure the affordability and accessibility of basic goods and services.

To ensure food security, the Department of Agriculture’s banner programs will receive a larger share in 2023 compared to its current budget. In particular, the provision for the National Rice Program almost doubled at Php 30.55 billion from Php 15.77 billion. The increase is largely due to the Php 19.48 billion budget for the expansion of fertilizer support to make fertilizers more accessible to rice farmers to prevent production losses.

This will be complemented by the Php 10.00 billion Rice Competitiveness Enhancement Fund (RCEF), half of which will be dedicated to driving farm mechanization pursuant to RA No. 11203 or the Rice Liberalization Act, to improve the competitiveness of local rice farmers and increase their income. The production of other commodities such as corn, livestock, fisheries, and high value crops will also be supported with higher budget next year.

Meanwhile, research and development in the Agriculture, Aquatic, and Natural Resources (AANR) will be strengthened with the Php 1.23 billion allocation for the DOST’s National AANR Sector R&D Program, which includes facility development and capacity building along with research funding for marine environment, genomics, animal and plant diseases and innovative horticulture, among others.

In addition, investments shall be made on support services like irrigation, as well as the construction, rehabilitation, and improvement of fish ports in strategic areas for the efficient handling, marketing, and distribution of fishery products. Further, crop insurance, credit services, and market development services shall also be provided.

The strategy for food security also considers emergency response for the Buffer Stocking Program of the National Food Authority (NFA). Alleviating poverty among the marginalized sector shall also be prioritized through the Special Area for Agricultural Development (SAAD) Project, which involves production and livelihood interventions, and marketing assistance and enterprise development.

The Department of Agrarian Reform’s Support to Parcelization of Lands for Individual Titling (SPLIT) will receive Php 6.14 billion to provide individual land titles to 358,258 beneficiaries. While Php 3.52 billion will be allocated under the Land Tenure Security Program for land acquisition and registration of 27,942.14 has and distribution of 27,101.99 hectares of private agricultural and government-owned lands.

Lastly, the Agrarian Reform Beneficiaries Development and Sustainability Program will be provided with Php 2.39 billion, including Php 822 million for capacity building development of Agrarian Reform Beneficiaries for improving farm productivity and income.

To sustain the Administration’s continued push for infrastructure development, the Build Better More Program is allocated a total of Php 1.20 trillion, equivalent to 5.0 percent of GDP. This is within the target of 5 to 6 percent of GDP annual appropriation for infrastructure. The infrastructure program is projected to average 5.5 percent of GDP for the next six (6) years from 2023-2028.

Also presented are the top ten departments receiving bulk of the proposed infrastructure budget, with DPWH and DOTr leading the list.

In terms of sub-object, the bulk of the proposed infrastructure budget is intended for road, rail transport, and flood control infrastructures. A significant amount is also provided for social infrastructures, covering hospital and health centers, school buildings, and housing and community facilities. Similarly, for the agriculture and environmental sectors, support will be provided for irrigation systems and reforestation projects.

For DPWH, some Php 272.87 billion will be used to finance the provision of an efficient transport and logistics system for goods and services. On the other hand, the DOTr will be provided with Php 167.12 billion for the establishment of an efficient and reliable mass public transportation system. The Rail Transport Program will receive the chunk of this budget at Php 113.99 billion to implement on-going rail projects such as the North-South Commuter Railway System (Php 75.11 billion).

In addition, here are the flagship projects under the DOTr’s Land Public Transportation Program and their respective budgets: namely, the EDSA Greenways Project (Php 775.0 million), Cebu Bus Rapid Transit (BRT) Project (Php 700.0 million), and the EDSA Busway Project (Php 211.2 million).

Aside from the said transport projects, there are logistics projects meant to lessen the cost of transporting agricultural goods through the increase in road networks and bridges from farms and mills. These include the Farm-to-Market Road Projects (Php 13.15 billion), the Philippine Rural Development Project (Php 5.98 billion), and the Sugarcane Industry Development Program (Php 1.00 billion).

In addition, the DTI’s Exports and Investment Development Program is provided with P773.0 million for programs directed towards the development, facilitation and promotion of exports and investments, both domestic and foreign, as well as the formulation of strategic plans and policies.

To provide affordable and clean energy, the budget takes into consideration the commitment to reliable and secure mix of energy resources through the DOE’s Renewable Energy Development Program, Energy Efficiency and Conservation Program, and the Alternative Fuels and Technologies Program with a total allocation of Php 476 million. This will be complemented by the continuation of the NEA’s Sitio Electrification Project which aims to energize 1,085 sitios in 2023 with a proposed budget of Php 1.63 billion.

Meanwhile, amidst the expected continuing elevated cost of fuel, the budget for the DA’s Fuel Assistance for Farmers and Fisherfolk, will be doubled at Php 1.00 billion. Php 510.45 million of which will be directed towards corn farmers while the remaining Php 489.55 million will be allocated directly for the fisherfolks. In addition, Php 2.50 billion is allocated for the DOTr’s Fuel Subsidy Program for the transport sector affected by the rising fuel prices.

To accelerate MSME development, the budget strengthens the MSME’s linkages to local and international markets through the DTI’s Php 1.53 billion for programs/projects to support the MSMEs.

For additional financing options for micro entrepreneurs, the FY 2023 proposed budget provides Php 1.50 billion to the Pondo sa Pagbabago at Pag-Asenso (P3) Program to cover 40,000 MSME borrowers. Aside from being affordable and cost efficient, the P3 Program also aims to stabilize informal lending and protect micro entrepreneurs from usurious lenders.

Now, the second budget pillar prioritizes protection of individuals, households, and communities from the scarring effects of the pandemic. Hence, the FY 2023 Proposed National Budget will support programs and projects meant to alleviate the negative effects of scarring on Filipinos in vulnerable and hard-hit sectors.

The government will be providing around Php 206.50 billion of “ayuda” under the proposed FY 2023 budget. This is composed of the cash transfers and other subsidy programs by various agencies.

Php 165.40 billion under the Department of Social Welfare and Development (DSWD) will be allocated for the implementation of various social assistance programs enumerated in the succeeding slides.

Php 22.39 billion will be provided for the implementation of the Medical Assistance to Indigent and Financially - Incapacitated Patients (MAIP) by the Department of Health (DOH).

Meanwhile, the TUPAD Program of the Department of Labor and Employment (DOLE) will be provided with Php 15.2 billion for next year. Php 2.5 billion will be provided to the Department of Transportation (DOTr) for the provision of fuel subsidies to the transport sector. Finally, Php 1.00 billion will be provided to the Department of Agriculture (DA) for the provision of financial subsidy, and fuel subsidies to rice and corn farmers and fisherfolk.

The DSWD’s Pantawid Pamilyang Pilipino Program (4Ps) is provided with Php 115.61 billion for education and health grants, as well as rice subsidy to 4.4 million households. This will also cover the provision of the data validation for Listahanan 3 for a better beneficiary targeting system.

Php 25.30 billion will be allocated for the Social Pension for Indigent Senior Citizens to cover 4,085,066 million indigent senior citizens.The SocPen is an additional government assistance in the amount of Php 500 monthly allowance to augment the daily subsistence and other medical needs of indigent senior citizens who are not members of any pension system.

The Protective Services for Individuals and Families in Difficult Circumstances will get Php 19.89 billion that will serve as financial assistance to 1,691,869 individuals and families in difficult circumstances through the Protective Services Program.

In addition, Php 4.43 billion will cover the implementation of the Sustainable Livelihood Program (SLP) to support 191,028 household beneficiaries either through micro-enterprise development or employment facilitation.

Lastly, we have allocated Php 3.70 billion for the Supplementary Feeding Program (SFP) for theprovision of hot meals to 1,754,637 children enrolled in LGU managed child development centers (CDC) and supervised neighborhood play (SNP).

The Early Childhood Care and Development in the First 1000 Days (ECCD F1K) Program will be supported with Php 158 million. Of the amount, Php 140 million will cover 15 priority provinces as identified by the Human Development and Poverty Reduction Cabinet Cluster.

Meanwhile, Php 17.850 million of the ECCD F1K Program will take care of the LGU support for Tutok-Kainan Dietary Supplementation Program of pregnant women and children 0-23 months. This will contribute to the social protection efforts of the government during the recovery period from COVID-19 and to the Enhanced Partnership against Hunger and Poverty (EPAHP).

Now to support the Filipino workforce, the Livelihood and Emergency Employment Program of DOLE shall receive a total budget of Php 18.4 billion. Of which, the Tulong Panghanapbuhay sa Ating Disadvantaged/Displaced Workers (TUPAD) Program shall receive Php 14.9 billion. Meanwhile, the DOLE Integrated Livelihood Program (DILP) will be assisted with Php 2.5 billion, and the Adjustment Measures Program (AMP) will be given Php 318 million.

And, under the newly-created Department of Migrant Workers (DMW), the OWWA Emergency Repatriation Program (ERP) which was transferred from DOLE, will have a budget of Php 10.0 billion.

To support continuing education, digital learning, training, and redeployment measures for upskilling and reskilling of the labor force, the Special Training for Employment Program (STEP) and the Training for Work Scholarship Program (TWSP) of the TESDA will be allocated with Php 1.95 billion and Php 2.64 billion, respectively, to support a total of 225,076 enrollees.

To strengthen our health care system, the DOH will be allocated a total of Php 23.0 billion for its Health Facilities Enhancement Program (HFEP). This is to provide access to healthcare services through the construction, rehabilitation, and upgrading of health facilities and the purchase of medical equipment. The funds for the 2023 HFEP are focused on the gaps identified based on the updated Philippine Health Facility Development Plan for 2022-2040 that supports the implementation of the UHC Act.

As part of strengthening the monitoring and surveillance capacity in the health system, Php 720 million is allocatedfor the national surveillance network that will include transitioning of the COVID-19 surveillance system to regular surveillance activities, and redesigning the health statistical systems and programs to better address data and information needs.

Prevention and control of communicable diseases is provided with Php 5.84 billion which includes, among others, provision for the purchase of GeneXpert cartridges for GeneXpert machines and for the procurement of personal protective equipment (PPE) for DOH hospitals, Centers for Health Development, laboratory facilities, and community facilities/isolation units.

Lastly, an allocation of Php 22.00 billion is provided for the procurement of vaccines under the FY 2023 Unprogrammed Appropriations (Support to Infrastructure Projects and Social programs). The DOH also reported that the Philippines has adequate stock of vaccines to cater to the need of the Filipinos. For next year, the Department will focus on ramping up vaccination and uptake of boosters for the elderly and vulnerable populations.

To further strengthen the delivery of services in the health sector, Php 16.95 billion will be set aside for the National Health Workforce Support System. This will augment, redistribute, and retain health workers in the country and thereby enhance the access of the public, especially those in marginalized areas, to basic health services.

To cover the funding requirements for the implementation of RA 11712 (Public Health Emergency Benefits and Allowance for Healthcare Workers Act), the amount of Php 38.92 billion is provided for the health emergency allowance and COVID-19 compensation package for healthcare and non-healthcare workers.

In addition, Php 22.39 billion will be spent for medical assistance to 1.6 million indigent and financially incapacitated patients who are unable to afford and access quality medical care.

The National Health Insurance Program will also be provided with PhP 100.23 billion for social health protection. Of this amount, Php 79.00 billion is intended to subsidize the health insurance premiums of 12.75 million indigent members identified under the National Household Targeting System of the DSWD, 8.02 million senior citizens pursuant to R.A. No. 10645, 100 thousand financially-incapable point-of-service patients, and 143 thousand unemployed persons with disability. On the other hand, the Php 21.17 billion variance will cover the improvement of the benefit packages under the Universal Health Care law.

To ensure prompt identification and timely response to outbreaks, the R&D projects for the Virology Institute of the Philippines (VIP) will be given Php 419.3 million since the establishment of its structure is already provided in 2022. Projects of the UP System relating to Philippine Genome Center (PGC) will have a budget of Php 25 Million for FY 2023, which will be spent for the construction and furnishing of Regional Research Center (RRC) Phase IV in UP Visayas and funding requirements for the New UP Mindanao Infectious Disease Laboratory. An amount of Php 6.17 billion will also be provided for the operations of the Philippine General Hospital.

Other health R&D activities will also be supported through the National Health Research and Development Program. Meanwhile, various health-related activities will also be supported under Project InNOVATE/PREGINET as part of the Advanced Science and Technology Research and Development Program and the Advanced Science and Technology Transfer Program.

To ensure the safe reopening of in-person education in light of the challenges brought about by COVID-19, the following programs and projects in the Education Sector will be prioritized:

The Universal Access to Quality Tertiary Education (UAQTE) program shall receive a combined amount of Php 47.4 billion

Education Assistance and Subsidies will be allocated a total of Php 54.9 billion, with DepEd receiving Php 53.2 billion for:

• Education Service Contracting (ESC) for JHS (Php 12.5 billion)
• Senior High School (SHS) Voucher Program (Php 39.3 billion)
• Joint Delivery Voucher for SHS TVL Specialization (Php 1.4 billion)

CHED will get a budgetary allocation of Php 1.5 billion for its Student Financial Assistance Programs (StuFAPs); while TESDA will receive–Php 200 million for its Private Education Student Financial Assistance (PESFA) program.

DepEd’s Basic Education Facilities (BEF) will also be given Php 9.8 billion. This includes construction of 2,379 new classrooms and TechVoc laboratories, and repair and rehabilitation of 2,358 classrooms.

Flexible Learning Option - Development, Reproduction and Delivery of Learning Resources is also allocated with Php 19.4 billion; DepEd Computerization Program (DCP) is allocated with Php 8.9 billion;

School-Based Feeding Program (SBFP) is provided with Php 5.7 billion; and The Alternative Learning System (ALS) is supported with Php 562 million.

Students in STEM will continue to be supported by the government, with a budget of Php 7.06 billion.

This is for the 55,426 undergraduate, masters and doctorate scholars of the Science Education Institute (SEI) and Php 376.80 million for the 10,513 high school and senior high school students of the Philippine Science High School (PSHS) System.

To improve the implementation of online and blended learning, the Free WiFi connectivity project of the DICT shall be continued for public places and state universities and colleges (SUCs) with Php 2.45 billion and Php 50.70 million, respectively.

The Government Internship Program (GIP) will be allotted with a budget of Php 708 million. On the other hand, the Special Program for Employment of Students (SPES) will receive a budget of Php 585 million and JobStart Philippines Program will receive Php 43 million.

To invigorate the tourism industry and promote the “Filipino brand,” Php 3.30 billion is allocated to the Department of Tourism, the bulk of which is for the Branding Campaign Program. This will be supported by the Php 1.17 billion allocation for the Tourism Promotions Board (TPB) for its international and domestic promotions campaign.

Marketing the Filipino brand would be futile if the country is unable to take steps against climate change. As such, mobilizing resources that enhance resilience and promote low carbon development is a key agenda of the government. In pursuit of this, the budget for climate change mitigation will reach Php 453.11 billion in 2023, equivalent to 8.6 percent of the total proposed budget. This is significantly higher by 56.4 percent than this year’s allocation of Php 289.73 billion or 5.8 percent of the budget.

The results of the Climate Change Expenditure Tagging show that Water Sufficiency projects have been prioritized with Php 264.89 billion. Meanwhile, funding for Sustainable Energy and Food Security remains substantial at Php 131.51 billion and Php 40.78 billion, respectively.

Please note that climate change expenditures have progressively increased in recent years. It grew by an average of 21.3 percent from 2015 to 2023, much faster than the average annual growth rate of the total national government expenditures of 10.5 percent.

To support climate change mitigation and adaptation programs, the following programs have been tagged as climate change expenditures: the DPWH Flood Management Program with Php 168.90 billion for the construction and maintenance of flood mitigating structures and drainage systems, and for the flood mitigating facilities along major and principal rivers; the DENR’s National Greening Program with Php 2.49 billion and Protected Areas Development and Management Program with Php 94.72 million.

Further, in support of the LGUs efforts in protecting their respective coastal areas, the national government, through the DENR, likewise provides Php 246.12 million for the Management of Coastal and Marine Resources/Areas.

Now, to enhance bureaucratic efficiency – in support of the Administration’s thrust for a lean, efficient, and responsive government workforce – the FY 2023 Proposed National Budget will facilitate the transformation and digitalization of the government to streamline the bureaucracy.

To this end, the government will pursue investments in information and communications technology (ICT) in order to transform and digitalize government processes, records, and databases through e-governance.

Php 12.47 billion of the budget will be provided for ICT and digitalization programs and projects of the government. The improvement of revenue collection through digitalization will also be a priority, as the DOF and its attached agencies (e.g., BIR, BOC) will receive Php 3.56 billion, equivalent to 28.6 percent of the total ICT proposed budget, for their digital transformation programs.

The DICT will receive Php 4.72 billion for its ICT Systems and Infostructure Development, Management, and Advisory Program, which shall include funding for the implementation of the National Government Data Center Infrastructure (Php 1.67 billion) and the National Government portal (Php 169.08 million) to connect government departments and improve its accessibility, while the National Broadband Plan (Php 1.50 billion) will improve overall internet speed and affordability.

The implementation of the Philippine Identification System (PhilSys) is allotted with Php 2.06 billion, aimed to provide the identification cards of 92 million Filipinos by mid-2023.

Likewise, the DTI’s program on the development, facilitation, and promotion of exports and investments and the registration and supervision of investment projects will be provided with Php 0.77 billion and Php 0.12 billion, respectively.

ARTA, on the other hand, will be supported with Php 149 million for the strengthened implementation of the Ease of Doing Business and Efficient Government Service Delivery Act.

The last pillar – Support to Local Governments – will strengthen the National Government’s coordination with LGUs, while simultaneously capacitating and empowering them to autonomously deliver essential services to their constituents.

Under the proposed FY 2023 National Budget, Php 28.88 billion is included in the Local Government Support Fund (LGSF). This is around Php 10.91 billion higher than the Php 17.97 billion appropriated in FY 2022, broken down as follows:

Php 10.00 billion will be provided to the Support to Barangay Development Program (SBDP) for the implementation of identified support programs of the NTF-ELCAC for the cleared and threatened barangays, particularly to address the root cause of insurgency and other armed conflicts.

Php 13.88 billion will be provided to the Growth Equity Fund as financial assistance to the identified poor, disadvantaged, and lagging LGUs. This is pursuant to E.O. 138, s. 2021 on Full Devolution to LGUs.

Likewise, Php 5.00 billion Financial Assistance will be provided to all level LGUs, except for LGUs under BARMM. However, focus will now be the following:

1. the implementation of agriculture-related programs and projects; 
2. information and communications technology systems and infrastructure development;
3. construction, maintenance, and/or rehabilitation of (a) green open spaces; (b) infrastructure for active mobility; and (c) elevated or at-grade pedestrian footpaths and walkways; and
4. implementation of programs, projects and activities for disaster response, rehabilitation, and recovery.

The Php 28.88 billion LGSF is on top of the Php 820.2689 billion National Tax Allotment (NTA) that LGUs will receive in FY 2023. The Php 820.27 billion NTA accounts for the just share of LGUs from national tax collections based on the certifications issued by the BIR, BOC and the BTr.

That said, together with our partners in Congress, we hope to usher in prosperity through economic transformation towards inclusivity and sustainability.

Maraming salamat po!