Facebook Instagram Linkedin Twitter Youtube
Home Blog Page 7434

DTI aims for 2021 RCEP ratification

THE Association of Southeast Asian Nations and its five trade partners — Australia, China, Japan, South Korea, and New Zealand — signed the Regional Comprehensive Economic Partnership (RCEP) Agreement in November. — PHILIPPINE STAR/EDD GUMBAN

By Jenina P. Ibañez, Reporter

THE Trade department aims to ratify the recently signed 15-country mega-trade deal by next year.

Signed last month after eight years of negotiations, the Regional Comprehensive Economic Partnership (RCEP) is a trade pact that includes China, Australia, New Zealand, Japan, South Korea and all 10 member-countries of the Association of Southeast Asian Nations (ASEAN).

Trade Assistant Secretary Allan B. Gepty in an online briefing last week said that the department plans to finish both the ratification process and secure Senate concurrence in 2021.

“We’ll have the elections in 2022, so by next year we want to finish all this. That’s the target,” he said in English and Filipino.

Considered a treaty or international agreement, the free trade deal must have the concurrence of at least two-thirds of the members of the Senate, according to Article VII.21 of the Constitution.

The Philippines in 2022 will elect successors to the President and Vice-President and 12 seats to the Senate, along with seats to the House of Representatives and officials at the provincial, city, and municipal levels.

RCEP becomes effective 60 days after six ASEAN member states and three other signatory states submit their instruments of ratification approval.

The Trade department has been promoting the deal as an export market access advantage. Products like garments, automotive parts, and agricultural products such as canned food and preserved fruit stand to benefit, Mr. Gepty said in a statement.

Mr. Gepty during the briefing said the department is aligning their programs to improve industry competitiveness with the trade deal.

“Whoever is quick to take advantage of what RCEP offers would reap the benefits,” he said.

But others have criticized the deal. United Nations Conference on Trade and Development Senior Economist Rashmi Banga said that a potential surge in imports could far outweigh the potential export value.

As economies reel from the health crisis, Ms. Banga said the government should prioritize saving domestic financial resources, using tariffs to increase revenue, and regulating the imports of luxury items.

Since the RCEP signing, the Trade department is once again looking into possible participation in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. The agreement was signed in 2018 by 11 countries — Japan, Australia, Brunei, Canada, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam.

QC extends relief for real property, business taxpayers

THE local government of Quezon City is giving an amnesty to delinquent property owners until end-March 2021.

The Quezon City Council on Nov. 26 approved Ordinance No. SP-2979, known as the Real Property Tax Amnesty Ordinance of 2020, which allows a one-time settlement of delinquent real property taxes with waiver of accumulated interests until March 31, 2021.

“The prevailing situation has brought about a long term enduring effect on the financing standing of the real property taxpayers which made it burdensome for them to pay the taxes due on their real property and any arrearages already incurred, thereby creating a valid and justifiable reason for the grant of real property tax amnesty,” the QC Council said in the ordinance.

The tax amnesty will be applicable to outstanding real property tax liabilities or delinquencies on land, buildings/improvements, and machineries as assessed by the Quezon City Assessor’s Office.

However, it will not cover real properties that are already auctioned off, are subject to an on-going settlement, or a pending legal dispute under a judicial, quasi-judicial or administrative agency.

Taxpayers who are interested to avail of the amnesty scheme are required to submit an application form to the local government.

“Delinquent real property taxes must be paid in full or by installment basis. The interest due thereon shall be condoned only up to the time set in this ordinance,” it said.

EXTENSION OF BUSINESS TAX PAYMENT DEADLINE
Meanwhile, QC Council also extended the deadline of payment of business taxes to “ease the financial burden” of business owners amid the pandemic.

Under Ordinance No. SP 2981 approved on Dec. 1, the deadline for the payment of business taxes, fees and charges was extended from Jan. 20, 2021 to April 20, 2021 to coincide with the second quarter business tax deadline.

The payment of business taxes from the preceding year should be settled within the first 20 days of January or of each subsequent quarter, as prescribed by the Local Government Code of 1991 and the Quezon City Revenue Code.

The deadline for the third and fourth quarter business tax payments for 2020 is on July 20 and Oct. 20, respectively.

“In recognition of the business owners’ financial difficulties brought about by the COVID-19 pandemic, and the city government’s desire to ease their financial burden, it needs to grant to business owners a longer period within which to pay their business taxes,” the ordinance said.

Those who will avail of the payment moratorium need to submit their audited financial statement, in addition to their sworn statement of gross receipts or sales as mandated by the Quezon City Revenue Code.

Meanwhile, small businesses that own an office, plant, and equipment with value of not more than P3 million will be required to submit their sworn statement of gross sales/receipts, monthly value-added tax returns, and/or percentage tax receipts, instead of their audited financial statements. — Luz Wendy T. Noble

Philippines seeks new P540-B debt from BSP

THE Philippine government is seeking a new P540-billion ($11.2 billion) loan from the central bank to aid in pandemic relief measures, Treasurer Rosalia de Leon said.

The request for a new loan was transmitted to the central bank after the government repaid its previous debt of the same amount due Tuesday, Ms. De Leon said in a mobile-phone message.

This is the third time that the government has requested support from the Bangko Sentral ng Pilipinas (BSP). The monetary authority extended advances of P300 billion in March and P540 billion in October. — Bloomberg

BSP won’t impose sanctions on foreign bank branches for SBL breach

THE Makati business district is seen in this file photo taken Jan. 25, 2017. — REUTERS/ROMEO RANOCO

THE central bank will not impose sanctions on the branches of foreign banks for the breach of the single borrower’s limit (SBL) until Dec. 31, 2021, in a bid to boost lending amid the pandemic.

The Monetary Board approved the regulatory relief measure in a meeting on Dec. 28, Bangko Sentral ng Pilipinas Governor Benjamin E. Diokno said in a statement.

“Consistent with the other regulatory reliefs or initiatives earlier implemented by the Bangko Sentral ng Pilipinas (BSP), this measure is expected to help boost lending in support of businesses and sectors, and pump prime the country’s economic growth and post-pandemic recovery,” Mr. Diokno said.

“This will diversify credit exposures, particularly in financing big ticket projects, that otherwise will be concentrated to domestic banks,” he added.

The measure is applicable to 14 branches of foreign banks that have established their presence in the country prior to the Republic Act No. 10641 which allowed the full entry of foreign banks in the Philippines.

The government is banking on its infrastructure program to help drive recovery in 2021.

Economic managers expect to spend P1.17 trillion for its infrastructure projects in 2021, which is equivalent to 5.9% of the country’s gross domestic product (GDP).

Acting Socioeconomic Planning Secretary Karl S. Chua said in a forum earlier this month that spending an equivalent of 5% of the GDP in the construction sector will be “sufficient for the economy to rebound strongly” and generate more jobs.

In February, the BSP extended the transitory period of the current basis for the SBL of foreign bank branches to boost support for the government’s infrastructure projects.

“As a control measure, new loans, credit accommodations or guarantees extended and existing credit exposures which are restructured, renewed, and refinanced, beginning Jan. 1, 2021 until Dec. 31, 2021, shall not exceed the prescribed percentage limit using as reference point twice the level of capital or net worth of a foreign bank branch,” the central bank said.

In March, the BSP increased the SBL to 30% from 25% for six months to provide support to banks during the pandemic. By July, it was extended until March 2021.

To recall, the central bank allowed for a separate 25% credit limit for public-private partnership projects in 2010 in the hopes to encourage banks to extend financing to infrastructure projects under then President Benigno Simeon C. Aquino III. The scheme lapsed by December 2016.

Meanwhile, in 2018, the Monetary Board approved a separate SBL for special purpose entities that take part in implementing major infrastructure projects under the administration of President Rodrigo R. Duterte. — Luz Wendy T. Noble

ERC orders Meralco to refund P1.4 billion in excess charges

THE Energy Regulatory Commission (ERC) on Tuesday ordered Manila Electric Co. (Meralco) to return P1.4 billion to its customers for over-collecting some charges in their monthly electricity bill.

At the same time, the regulator told the power distribution company to collect from consumers P2.38 billion representing under-collection in the power generation charge. The so-called over- and under-recoveries are pass-through charges.

ERC Chairperson and Chief Executive Officer Agnes VST Devanadera said in a press statement on Tuesday that the commission’s initial evaluation of the documents submitted by the listed utility revealed the over-collection in the transmission, system loss, lifeline subsidy, and senior citizen discount rates.

“Meralco is directed to refund its member-consumers, beginning on the next billing cycle from receipt hereof… for a period of three months or such time that the amount shall have been fully refunded,” the ERC said in its order.

Broken down, the over-recovery in the transmission rate reached P440.59 million; the system loss rate at P971.65 million; the lifeline subsidy rate at P31.90 million; and senior citizen subsidy rate at P3.14 million. The amortization period would go on for three months.

The ERC said that it was able to verify the over-collections based on the distribution’s utility’s documents for the period covering January 2017 to December 2019.

“ERC ordered Meralco to refund the over-recoveries at an average rate of P0.1331/kWh (per kilowatt hour), for a period of approximately three (3) months until fully refunded,” the ERC said in a separate press release.

The energy regulator added that Meralco also incurred around P2.38 billion in under-recoveries under its generation rate.

It instructed the utility to collect the computed under-recovery in the generation rate at P0.0395/kWh, for around 24 months until fully collected. Collection would start on the next billing cycle.

“Meralco is required to submit within ten (10) days from its implementation a sworn statement indicating its compliance with the ERC’s relevant Order,” the ERC said.

Ms. Devandera said that the agency was prioritizing the consumers’ welfare by acting on the pass-through charges.

“We will find means, such as stretching the collection of any under collection to a longer period and effecting a quick refund for over collection, in order to temper the impact on consumer’s bill,” she added.

In a Viber message, Meralco Utility Economics Head Lawrence S. Fernandez said the company received on Tuesday the ERC’s order on the company’s application to confirm pass-through charges from 2017 to 2019.

“According to the Commission’s calculations, Meralco incurred a net under-recovery of P935 million and the Commission granted interim relief to refund over-recoveries over three months and to collect under-recoveries over 24 months,” he said.

Mr. Fernandez added that at the beginning of the implementation, the order will mean a net average reduction of 11.5 centavos per kilowatt-hour in the pass-through charges of Meralco customers.

“Meralco will immediately begin preparations to comply with the Commission’s ruling,” he said.

Shares in Meralco on Tuesday inched up 1.25% to end at P292 apiece.

In a separate press release, the ERC said that it had allowed the National Transmission Corp. (TransCo) to collect a feed-in tariff allowance fund (FiT-All) of P0.0983 per kWh in the next billing cycle.

“The ERC-approved FIT-All for Calendar Year 2020 in the amount of P0.0983/kWh is lower by P0.1295/kWh as compared to TransCo’s proposed rate of P0.2278/kWh. We came up with a lower FIT-All rate in view of the fact that the Commission used some actual figures as bases in our computations, among others,” Ms. Devanadera said.

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT, Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., which has interest in BusinessWorld through the Philippine Star Group, which it controls. — Angelica Y. Yang

SEC allows staggered booking of credit losses

THE Securities and Exchange Commission (SEC) has allowed the staggered booking of credit losses to help licensed financing companies, lending companies, and accredited microfinance non-government organizations (NGO) during the pandemic.

In a memorandum circular issued on Dec. 28, SEC Chairperson Emilio B. Aquino said the commission is allowing the staggered booking of credit losses on or after Dec. 31, for a maximum of five years using the straight-line amortization method as seen in the profit or loss statement.

Mr. Aquino said the accounting relief is a deviation from the requirements of the Philippine Financial Reporting Standards (PFRS) for small and medium-sized entities, and PFRS for small entities.

“Financing companies (FC), lending companies (LC) and microfinance-NGOs shall continue to report actual past due and nonperforming loans and provision for credit losses in their reports submitted to the Corporate Governance and Finance Department to facilitate the generation of industry statistics and provide the commission with information on the true health of these institutions,” Mr. Aquino said.

According to the SEC, the said institutions that choose to avail of the relief should prepare their audited financial statements that follow the industry-specific framework as modified by the application of the financial reporting reliefs approved by the commission.

It added that those who will adopt the framework should specify in their financial statements the relief they availed and indicate that it covers only current year transactions.

“To ensure transparency in financial reporting, a qualitative disclosure of the impact of the relief availed of should be disclosed,” the SEC said.

SEC said that some of the information that must also be provided in the company’s financial statement include the amount of allowance recognized and amortized for the period, and balance of unrecognized allowance, among others.

“Entities must comply with the requirements of the financial reporting standards in doing the above adjustments when it reverts to full PFRSs, PFRS for SMEs, or PFRS for SEs, as applicable, after the period of relief,” the SEC said.

“FCs, LCs and MF-NGOs, which may avail of the relief but the impact on the financial statements is deemed not material, may still represent in the notes that the financial statements are presented in full compliance with their applicable financial reporting framework. Under such circumstances, the disclosure requirements for such relief are not mandatory,” it added.

DEADLINE FOR CREATION OF OFFICIAL E-MAIL ADDRESS AND MOBILE NUMBER
Meanwhile, the SEC extended the deadline for compliance to its previous memorandum circular that required corporations, associations, partnerships, and individuals to create and designate an official e-mail account address and cellphone number for future transactions with the commission.

In a separate notice in its website dated Dec. 28, the SEC said the deadline is moved to Feb. 22, 2021, and that it will not impose a penalty for those who will avail of the extension.

“However, corporations, associations, and partnerships with certificates of registration issued after January 23, 2021 are given a period of thirty days from the issuance of the certificate of registration to comply with the said memorandum circular, without penalty,” the SEC said. — Revin Mikhael D. Ochave

Greenergy ends partnership with RYM, landowners

ANTONIO L. Tiu-led Greenergy Holdings, Inc. on Tuesday announced that it had discontinued its partnership with RYM Business Management Corp. and some landowners after the termination of a memorandum of agreement (MoA).

“The parties (RYM Business and the landowners) have decided to no longer pursue the transaction contemplated under the MoA due to the impact of the COVID-19 pandemic, the resulting prolonged community quarantine, and the effect thereof on real estate property businesses,” Greenergy said in a regulatory filing.

Under the MoA, which was disclosed in July last year, Greenenergy and RYM would nominate appraisal companies to determine the average value of various properties in Rizal province. These properties are parcels of land with an area of 400 hectares.

The MoA said that Prime Media Holdings, of which RYM is a primary shareholder, would issue primary common shares at an issue price equal to the par value “in exchange for the investment, infusion, and contribution by investors who own the parcels of land.”

The shares would be issued from Prime Media’s unissued authorized capital stock. The transaction was seen to raise funds for Greenergy’s smart-farming agricultural area and smart-city developments, the firm said in a disclosure last year.

On Tuesday, Greenergy said that the termination of the MoA had taken effect on Dec. 28.

It added that the company would focus its core investments and projects in food and agriculture, medical hemp production, digitalization and the development of green infrastructure.

Last year, Greenergy ended its MoA with a Korean-based TheBizLink Co. Ltd. and its local unit TheBizLink Philippines, Inc. which were supposed to develop for it a number of ventures, including a transport hub and “smart” property projects.

Greenergy shares on Tuesday inched up 1.56% to close at P2.60 apiece. — Angelica Y. Yang

Globe offers free data to some customers

GLOBE TELECOM, Inc. is offering 10 gigabits (Gb) of free data to selected home prepaid WiFi customers who were not able to reload their devices since the latter part of October.

The data will be valid for seven days after receipt, Globe said in a press release on Tuesday.

Customers can automatically reactivate their SIM cards and will receive a one-month subscription to the Viu streaming platform. The selected customers have been notified either by their mobile app or by mobile text message.

“We know the importance of being connected especially with our loved ones amidst the travel restrictions and health protocols. We are also aware that the holiday season gives families their much needed bonding and relaxing moments,” Globe Vice-President for Broadband Business Darius Delgado said.

Globe saw a 22% drop in its third-quarter attributable net income to P4.39 billion.

The company said its service revenues declined 3% to P36.68 billion after a drop in traditional voice and mobile SMS, which had been partly mitigated by an increase in mobile data use.

The Philippines ranked 110th out of 139 countries in mobile internet speeds in November, with average mobile connectivity download speeds of 18.49 megabits per second (Mbps), according to the Speedtest Global Index run by American internet testing and analysis firm Ookla.

It ranked 103rd out of 176 countries for fixed broadband download speeds, with 28.69 Mbps. — Jenina P. Ibañez

Foreign currency loans down as firms cut working capital

FOREIGN CURRENCY loans slipped in the third quarter amid continued tepid business activities and stricter lending standards as the pandemic crisis stretched on.

Data from the Bangko Sentral ng Pilipinas showed outstanding loans disbursed by foreign currency deposit units (FCDU) of banks decreased 3.9% to $17.3 billion as of end-September from the $18 billion level as of end-June. The decline comes after principal repayments surpassed disbursements.

Foreign currency loans also dropped 3.1% against the $17.8 billion logged as of end-September 2019.

“The decline in FCDU lending may be due to borrowing firms’ lower working capital requirements and lending banks’ tightening of credit standards attributed largely to less favorable economic outlook, as the ongoing health crisis brought about by the COVID-19 pandemic continued to constrain domestic economic activity,” the central bank said in a statement.

FCDUs are central bank-approved bank units that handle transactions involving foreign currencies, mainly by accepting deposits and handing out loans.

Loans to residents made up 65% of the credit line or $11.219 billion, of which 40.4% went to power companies. A portion also went to merchandise and service exporters (14.8%) and public utility firms (6.7%).

On the other hand, loans to non-residents made up 35% or $6.047 billion of the loans disbursed by FCDUs.

Local banks extended 87.6% or $16.132 billion of the outstanding loans while the remaining 12.4% or $2.134 billion were sourced from branches and subsidiaries of foreign lenders.

In the three months to September, gross loan disbursements increased 8.6% to $12.2 billion due to the increase in the funding requirements of an affiliate of a branch of a foreign bank.

Meanwhile, deposit liabilities of FCDUs grew 5.5% to $46 billion as of end-September from $43.6 billion as of end-June. It also jumped 11.7% from the $41.1 billion seen a year ago.

“The bulk of these deposits (97.6%) continue to be owned by residents, essentially constituting an additional buffer to the country’s gross international reserves,” the central bank said.

The overall loans-to-deposit ratio of FCDUs stood at 37.6% as of end-September, lower than the 41.3% as of end-June and the 43.3% logged a year earlier. — Luz Wendy T. Noble

Budget approval, dollar flows boost peso

THE PESO strengthened against the greenback on Tuesday, its last trading day for the year, backed by year-end flows and positive market sentiment on the legislation of the 2021 budget.

The local unit ended trading at P48.023 a dollar, gaining 3.20 centavos from its Monday close of P48.055, data from the Bankers Association of the Philippines showed.

The peso also strengthened by P2.612 from its finish of P50.635 per dollar on Dec. 27, 2019, last year’s last trading day, and by P2.662 from its performance on Jan. 2 when it closed at P50.685 versus the dollar.

The currency saw its weakest at P48.27 a dollar during the day, while its strongest was at P48.011.

“The peso closed stronger from increased market volumes on expected year-end dollar flows and market transactions done today,” a trader said in an e-mail.

Dollars exchanged increased to $731.25 million from $507.38 million on Monday.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the timely approval of the P4.5-trillion national budget also boosted market sentiment and backed the strengthening of the peso.

President Rodrigo R. Duterte signed on Monday the 2021 national budget, which is 10% higher than the P4.1-trillion programmed for 2020. Next year’s budget will continue the government’s aggressive infrastructure drive in a bid to support economic recovery. The program also allotted P72.5 billion for the purchase, storage, transport, and distribution of coronavirus disease 2019 vaccines.

In 2020, the peso’s strength was boosted by market sentiment on the accommodative stance of the Bangko Sentral ng Pilipinas (BSP), the trader said.

“The local currency’s appreciation was supported by the aggressive policy rate cuts, accommodative monetary policy and various lending programs from the US Federal Reserve, which has caused substantial depreciation on the dollar,” he added.

The BSP slashed rates by a total of 200 basis points this year to provide support to the virus-stricken economy. This has lowered the overnight reverse repurchase, lending, and deposit rates to record lows of 2%, 2.5%, and 1.5%, respectively.

Meanwhile, Mr. Ricafort said the slimmer trade deficit caused the appreciation of the local unit.

“Relatively slower recovery in imports that resulted in a narrower trade deficit led to the relatively stronger peso in the recent months,” he said in a text message.

Latest data from the Philippine Statistics Authority showed the trade deficit stood at $1.777 billion as of October, lower than $1.783 billion in September and the $3.573 billion seen a year ago. This came after imports shrank for the 18th straight month by 19.5% to $7.979 billion. — Luz Wendy T. Noble

More banks waive fund transfer fees into 2021

MORE LENDERS are extending fee waivers for fund transfers in a bid to boost digital banking and to provide safer ways for carrying out financial transactions during the pandemic.

Philippine National Bank (PNB) announced that it would extend the waiver for InstaPay and PESONet transactions until March 31, 2021 to encourage more of its customers to use digital banking channels.

“While all of our branches are open, PNB is giving customers the safer option of banking online to minimize the need to go out of their homes to visit branches and ATMs. We see an upward trend in digital transactions as more customers get enrolled,” PNB President and Chief Executive Officer Jose Arnulfo A. Veloso said in a statement on Tuesday.

InstaPay is the electronic fund transfer service under the National Retail Payment System that allows real-time transfers for transactions worth P50,000 and less. Meanwhile, PESONet facilitates batch transactions with larger values that are credited by the end of a banking day.

Separately, the Philippine Savings Bank (PSBank) also announced that interbank fund transfers made through its online facilities and mobile app would continue to be free of charge until further notice.

“This extension aims to further encourage the Bank’s customers to take advantage of the opportunity to send money to other banks for free, maximize the use of its reliable online banking facility, and utilize the powerful functionalities of its mobile application — allowing banking transactions to be done simply and safely in the comfort of their own home,” it said in a statement.

Earlier, Metropolitan Bank & Trust Co., the parent lender of PSBank, announced that it would allow free InstaPay and PESONet transactions until March 31.

On Dec. 16, the Bangko Sentral ng Pilipinas (BSP) issued Memorandum No. M-2020-095 signed by BSP Deputy Governor Maria Almasara Cyd N. Tuaño-Amador extending the waiver of fees for fund transactions facilitated by the central bank until the last business day of 2021.

Other lenders such as China Banking Corp. earlier said it would offer free fund transfers until March 31.

Meanwhile, InstaPay fees will be waived by Rizal Commercial Banking Corp. until Jan. 31, while UnionBank of the Philippines, Inc. will do so until March 31.

The pandemic forced consumers to go more into digital banking and caused a spike in transactions made through PESONet and InstaPay. As of September, volume of transactions in the fund transfer schemes surged by 264% and 758% year on year, respectively.

The central bank is hoping that e-payments will make up 50% of total transactions both in value and transactions by 2023.

A study by the Better Than Cash Alliance found the volume of e-payments in the country accounted for 10% of the total transactions in 2018 from a mere 1% in 2013. By value, e-payments comprised 20% of the total in 2018, also growing from the 8% seen in 2013. — Luz Wendy T. Noble

Duterte vetoes budget items seeking to tap gov’t agency incomes

PRESIDENT Rodrigo R. Duterte exercised his veto power over parts of the P4.5 trillion 2021 Budget, his spokesman said Tuesday, noting that the rejected items mainly involve programs that sought to directly appropriate funds generated by government agencies.

The President’s Spokesman Herminio L. Roque gave no further details in his televised briefing from Baguio City, the day after Mr. Duterte signed the budget.

“Some of the vetoed items included provisions related to the direct income of government agencies,” he said in Filipino.

Mr. Roque said as a general rule, agencies are required to surrender their income to the National Treasury, with any other use of the funds they generate requiring authorization “by a separate substantive law.”

The President’s formal veto message to Congress had not been officially released at deadline time. According to an unofficial copy of the message obtained by BusinessWorld, the rejected provisions involve income generated by the Department of Labor and Employment (DoLE) from Alien Employment Permits as well as a separate income stream from a DoLE agency, the Philippine Overseas Employment Administration (POEA).

The unofficial copy of the veto message also rejected plans to tap income generated by the Philippine Racing Commission, the confidential fund of the Optical Media Board (OMB), and “excess dividends” generated by the Subic Bay Metropolitan Authority (SBMA).

Other veto items cover “inappropriate” provisions involving the Departments of Agrarian Reform (DAR), Trade and Industry (DTI), Transportation, and Justice, according to the document obtained by BusinessWorld.

According to a statement issued by the Department of Budget and Management (DBM) Tuesday, the President’s veto message urged Congress to observe the law when appropriating funds for “procurement-related provisions, grant of allowances and benefits, use of Quick Response Fund (QRF), identification of program beneficiaries, construction of evacuation centers, implementation of service contracting, funding of foreign-assisted projects, among others.”

“As part of his Constitutional mandate that all laws are fair in implementation, the Chief Executive reviewed the budget thoroughly and subjected to veto some provisions against the Constitution,” Mr. Roque said in the briefing.

He also noted that spending should be limited to items identified by the government in the National Expenditure Program (NEP), a document that outlines the Executive branch’s spending priorities before the budget is legislated.

The 2021 NEP will be a cash-based budgeting system, ensuring that all agencies spend what is allocated to them.

Mr. Duterte said Monday that the budget will be spent efficiently, directed at programs that address the “debilitating effects” of the coronavirus disease 2019 (COVID-19) crisis.

The 2021 budget is about 10% larger than this year’s P4.1 trillion spending plan. — Gillian M. Cortez

1...7,4337,4347,435...13,017Page 7,434 of 13,017
© 2024 BusinessWorld Publishing.
All rights reserved.
Read our privacy guidelines
Facebook Instagram Linkedin Twitter Youtube