Philippines' new budget system cuts Department of Public Works and Highways' funding by 17 pct

From the coming year, the Department of Public Works and Highways will get P102 billion instead of P122.7 billion.

Philippines' new budget system is reducing P20 billion out of DPWH's ( Department of Public Works and Highways). The flood control project funding will see a decrease of at least 17 percent.

From the coming year, the Department of Public Works and Highways will get P102 billion instead of P122.7 billion.

The reason behind the cut is the Department of Budget and Management's (DBM) new cash budgeting system. The new budgeting system allows funding for only those project that can be completed within the year.

The previous funding system allowed funding that was valid upto for two years. Not only flood funding project but other departments also felt the cut.

The health department's funding was also not approved for construction of new health facilities. The Department of Education's funding has been reduced by almost P70 billion.

Commission on Higher Education's scholarship program's funding was also cut by P3 billion. Karlo Nograles, Chairman of House Appropriations Committee said: "The (Development Budget Coordination Committee and) the DBM can come back to Congress and amend what they submitted."