Metro Manila (CNN Philippines, June 14) — The proposed ₱3.767 trillion national budget for 2018 will include the intelligence fund and modernization plans of the military, Budget Secretary Benjamin Diokno said.
When asked on CNN Philippines’ The Source if the government allocated budget for anti-terrorism in 2018, Diokno replied, “There is. The military, they have a huge budget.”
“They have an intelligence fund, and so we’re ready for all this contingency in the budget,” he said.
“And there’s also the AFP modernization budget. We’re getting more airplanes, more helicopters. I can’t tell you everything, but more devices to listen to what’s going on,” he added.
The government had been heavily criticized for a supposed failure in intelligence that led to the Marawi crisis.
On Tuesday, Presidential Spokesperson Ernesto Abella said the government had actually received advance information that the Maute Group would attack Marawi City.
Related: Palace knew of Maute attack threats
Diokno said that compared to the 2017 budget, the 2018 budget will be either “maintained” or “a little bit higher.”
Under the Department of Budget and Management’s proposal, the national budget for 2018 grew to ₱3.767 trillion, from ₱3.350 trillion in 2017. In May, DBM pegged their 2018 proposal at ₱3.840 trillion.
Diokno confirmed reports that his department trimmed the budget proposal by ₱73 billion due to the House of Representatives’ approved version of the tax reform bill.
On May 31, the House passed the tax reform package, which seeks to lower the personal income tax of regular wage earners, but raise excise tax on fuel, new cars, and sugary drinks.
It also proposes the removal of certain Value Added Tax exemptions, such as those for the lease of residential units with a rent not exceeding P10,000 per month.
Congress tweaked aspects of the bill as it found some of the executive impositions too steep.
Related: House OKs tax reform bill on third reading
Diokno said he is confident the tax reform package will be passed, adding that they welcome the Congress-approved version.
He said infrastructure for projects like roads, bridges, and a subway will still be the top priority in the 2018 budget, accounting for over ₱1 trillion. However, smaller infrastructure projects would take a hit from the ₱73 billion reduction.
“If I remember right, there’s 1.1 trillion just for public infrastructure…That’s for next year. It could go as high as 1.7 trillion in 2022,” said Diokno.
“The big projects…have a green signal and we’re not going to compromise those. We will be more careful in evaluating the viability of small projects,” he added.
Diokno said the second priority in the budget will be “investment on human capital” through education, healthcare and social protection.
