Tough measures need to fund proposed P3.767 2018 budget: Nograles

July 24, 2017

Davao City Rep. Karlo Nograles, chairman of the House Appropriations Committee, said the proposed P3.767 trillion national budget for 2018 representing a 12.4 percent increase on the general appropriations in 2017 would require painful measures to fuel the president's "reform and transform" agenda. Nograles noted President Rodrigo Duterte’s position the government needs reforms that "will fuel the fiscal expansion required to sustain our inclusive growth and development strategy." Nograles said such "fiscal expansions" include reforms on existing tax laws and non-tax such the proposed Tax Reform Acceleration and Inclusion Act. Nograles said as part of the tax reform package expected to fuel huge portions of the national budget is the proposed removal of several value added tax exemptions on certain products and services to raise an additional P81 billion. The government also expects to earn an extra P47 billion from the P10 per liter levy on sugar sweetened beverages and another P87.8 billion from the increase in the excise taxes for petroleum products and automobiles. While the tax reform package imposes additional taxes and removes VAT exemptions on certain non-essential commodities, the proposed budget is committed to sustain and even expand programs that hopes to mitigate the burden of the poor and vulnerable. These include the targeted cash transfer program, Social Assistance for Commuters and Public Transport, Pantawid Kuryente Program, PUV Modernization Program, and National ID/Social Welfare Card Program. "These (new taxes)  are painful but necessary steps that President Duterte and Congress must take so that we can fulfill our covenant  for national reformation with the Filipino people," Nograles said. In his 37-page budget message, President Rodrigo Duterte said the country needs an "activist budget" to fulfill the longing of the people. Nograles said education will continue to receive the biggest appropriation at P691-billion, or P41.7-billion more than the 2017 budget. The bulk of the appropriation will go to construction of 47,000 classrooms, repair and rehabilitation of 18,000 classrooms, procurement of 84,781 school seats, and creation of 81,100 teaching positions. Based on his budget message, Duterte is seeking a 10.3-percent increase in the budget for Mindanao Logistics Infrastructure Network -- from P21.4 billion in 2017 to P23.6 billion in 2018. The Duterte administration is also proposing for a P6.6-billion budget for the Mindanao Railway Project Phase I which will cut down travel time from Davao City to Surigao and Cagayan de Oro from eight to two hours. Once completed, it is expected to accommodate around 120,000 passengers a day in the opening year, and will also provide a section linking Davao City to Tagum City in Davao del Norte and Digos City in Davao del Sur. DMS