Metro Manila (CNN Philippines, September 9) — Funding for the health sector may not be enough to sustain the Philippines’ COVID-19 fight as the impact of the pandemic could stretch into 2021, senators feared.
The Senate finance committee on Wednesday started discussions on the proposed ₱4.506 trillion national budget for 2021. Although it spelled a 26 percent increase from this year’s spending plan, some lawmakers found it wanting when it came to provisions for the health sector.
The Department of Health is getting ₱131.7 billion in 2021, up from the ₱104 billion allocation this year. With emergency and stimulus funding, the agency already got hold of about ₱153 billion in 2020 meant to ramp up prevention, testing and treatment efforts to fight infections.
“The focus of spending in 2021 will be for economic recovery. In the face of the largest health crisis of our time, tila anemic naman ‘yung budget natin para sa kalusugan [it seems the budget for health is anemic],” Senator Risa Hontiveros said, noting that DOH will only be getting the fifth highest amount among state agencies.
“Kaya kami nage-expect ng health-heavy budget ay dahil overall, itong krisis natin ngayon has always been referred to as a health crisis – never bilang public works crisis or a national defense crisis [We’re expecting a health-heavy budget because overall, this crisis has always been referred to as a health crisis – never as a public works or a national defense crisis],” the senator added.
Budget Secretary Wendel Avisado said bulk of the capital outlays were already covered this year as the country bought laboratory facilities, adding that next year’s spending plan includes funding for test kits.
“Let me emphasize that we cannot rely on the budget of the DOH alone in order to reduce the impact of COVID-19,” he added, noting that projects of other agencies, including infrastructure, will boost economic activity and create jobs.
Even the allocation for COVID-19 vaccines was questioned, as the record-high spending plan only allotted ₱2.5 billion for procurement. Finance Secretary Carlos Dominguez III explained that the Bayanihan 2 Act, which is a signature away from becoming law, already has a standby fund worth ₱10 billion for an initial supply of vaccine doses.
Dominguez, however, said the Finance Department is prepared to fund up to ₱20 billion worth of vaccine purchases through a loan from state-run banks, to be executed by the Philippine International Trading Corporation. This way, instant funds may be tapped even if it is not provided for under the 2021 budget, and may be paid in succeeding years.
President Rodrigo Duterte earlier ordered Dominguez to prepare for the procurement of at least 40 million doses, as he anticipates a vaccine will be ready by December. Most international drug makers are currently in the thick of clinical trials.
Senators Francis “Kiko” Pangilinan and Ralph Recto also asked why the President’s economic team seems to keep a “rosy” outlook despite the deep slump encountered during the first half of 2020. Acting Socioeconomic Planning Secretary Karl Kendrick Chua said while times remain “uncertain,” there are signs that the economy as well as workers have responded positively to relaxed quarantine rules. Barring a “U-turn” or reversal to lockdowns, Chua said a milder contraction may be seen for the rest of the year.
The government sees the economy shrinking by 5.5 percent this year, against a 9 percent downturn in the January-June period.
“We should recognize that our economic recovery depends upon protecting public health… People are afraid to go out today,” Senator Franklin Drilon said, pointing out that improved healthcare capacity is crucial to reviving consumer confidence, which in turn will usher in an economic rebound.
Sen. Panfilo “Ping” Lacson, for his part, questioned why nearly 3,000 items worth ₱73 billion under the 2020 budget are being funded again next year. Avisado said these were discontinued projects where the funds were diverted to the COVID-19 response.
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