Philippine President Seeks Priority for P1.05 Trillion 2006 Budget Amidst Oil Crisis

Strategic Insights -

Philippine President Gloria Macapagal Arroyo has appealed to Congress to give utmost priority to the P1.05 trillion (US$18.7 billion) General Appropriations Act of 2006, calling it a strategic tool to fight poverty and protect against the looming oil crisis. The 2006 budget, which is 14.7% higher than the P907 billion 2005 budget, heavily invests in education, transportation, infrastructure, and social projects that will provide jobs and access to electricity and potable water.

Key Takeaways:

  • The 2006 budget is P1.05 trillion (US$18.7 billion), a 14.7% increase from the 2005 budget of P907 billion.
  • The largest chunk of the budget goes to the social services sector with P293.9 billion, of which half will go to education and manpower development.
  • The Department of Education will receive the highest allocation with P119.1 billion, including an additional P7.1 billion.
  • The budget also allocates P197.2 billion for economic services to spur employment and decentralize progress to the countryside.
  • Government workers are set to receive an eight to nine percent raise in state workers' pay, the first increase in four years.
  • A total of P10 million is allocated for the rationalization program, a voluntary early retirement plan for government workers.

Statistics:

  • P1.05 trillion (US$18.7 billion) - the total amount of the 2006 budget
  • 14.7% - the increase in the 2006 budget compared to the 2005 budget
  • P293.9 billion - the allocation for the social services sector
  • P119.1 billion - the allocation for the Department of Education
  • $18.7 billion - the US dollar equivalent of the 2006 budget
  • P197.2 billion - the allocation for economic services
  • 8-9% - the proposed raise in state workers' pay
  • P10 million - the allocation for the rationalization program

Sources:

  • Arroyo, G. M. (2006). Statement on the 2006 General Appropriations Act. Asia Pulse.
  • Department of Budget and Management. (2006). General Appropriations Act of 2006.
  • News Philippines (PNA). (2006, August 24). President Arroyo asks Congress to give priority to P1.05 trillion budget.