Manila: A government agency receiving a budget allocation lower than its request does not necessarily mean its budget has been cut, Department of Budget and Management (DBM) Acting Secretary Kim Robert de Leon said on Thursday. De Leon made the clarification in the latest episode of 'ASK - Alamin kay Sec. Kim,' explaining the difference between an agency's budget request and its actual or proposed allocation.
According to Philippines News Agency, De Leon emphasized that a request is not yet a budget, noting that agency proposals undergo evaluation based on their previous budgets, actual utilization, program requirements, government priorities, and available government resources. He provided an example of an agency that had a PHP70-billion budget in the previous year, requested PHP100 billion for the succeeding year, and was proposed to receive PHP80 billion under the National Expenditure Program (NEP). De Leon stated that describing the PHP20-billion difference between the agency's request and proposed allocation as a 'budget cut' would be misleading since the proposed allocation actually increased by PHP10 billion, from PHP70 billion to PHP80 billion.
De Leon further explained that proper comparisons should establish whether the figures refer to an agency's budget request, previous budget, or proposed allocation. He highlighted that government agencies' combined proposals for the 2027 budget, including Special Purpose Funds and other automatic appropriations, reached about PHP12 trillion. This amount is significantly higher than the proposed PHP7.2-trillion national budget, underscoring the need to prioritize government spending amid limited resources.
He stressed that the government has an approved budget ceiling and cannot simply fund every proposed expenditure. Budget utilization is a critical factor considered by the DBM in reviewing agencies' funding requirements. De Leon mentioned that an agency's failure to fully utilize its previous allocation provides important information in determining the level of funding it reasonably needs for the succeeding year.
De Leon likened the process to household budgeting, where families consider their income, expenses, and actual spending before deciding how much to allocate for particular needs. He noted that the government has to make choices due to finite public resources and competing funding demands. The DBM's role is to ensure that limited government resources are directed toward necessary programs and provide meaningful benefits to Filipinos.
