The Department of Economy, Planning, and Development (DEPDev) is actively working with the Department of Budget and Management (DBM) to establish budget ceilings for regions, aiming to improve the funding of priority projects. Currently, only 30% of projects identified by regional development councils (RDCs) find their way into the General Appropriations Act (GAA).
New Measures to Improve Project Funding
What we’re going to do with DBM is to establish the ceiling per region. And if you have that indicative ceiling, then you can say that the LGUs will not over-list.
Carlos Bernardo O. Abad Santos, Undersecretary
Undersecretary Carlos Bernardo O. Abad Santos emphasized that the absence of set ceilings leads to excessive project wish lists without clear funding knowledge. By determining these ceilings, local government units (LGUs) can better prioritize their project proposals.
- Aim to increase the share of RDC-prioritized projects in the National Expenditure Program (NEP).
- Establish regional ceilings to guide local project proposals and budget requests.
DEPDev's joint memorandum with DBM aspires to raise the percentage of funded RDC projects from 30% to 50%. However, Abad Santos acknowledged the fiscal constraints that make achieving 100% funding unrealistic.
Additionally, consultations with regional agencies will take place earlier in the budget preparation process, allowing for better alignment between agency budgets and RDC priorities. In the past, agencies were already finalizing budgets before RDC discussions occurred.
Abad Santos also pointed out the economic implications of a reenacted budget, which could stifle growth by restricting government spending. He noted that a larger proposed budget is vital for stimulating the economy, as government expenditure significantly contributes to gross domestic product (GDP).
Despite concerns about potential delays in budget deliberations, he expressed confidence that a reenacted budget is unlikely, although it may take longer for the Senate and bicameral conference committee to finalize discussions.