03 Feb 2020

 Meanwhile, the proposed development budget for the year stands at P12.03 billion and statutory expenditure at P10.59 billion, the latter showing an increase of P3.4 billion over the 2019/20 budget. 

According to Dr Matsheka, statutory expenditure, with major items being public debt servicing, pensions, gratuities and compensation, took precedence over recurrent and development expenditures. 

The minister described the budget proposals as “a first deliberate effort to align to the transformation agenda with a focus on the promotion of private sector-led growth and job creation”. 

He said the focus would therefore be on investing in economic infrastructure, developing human capital, growing the agricultural sector, promoting citizen economic empowerment as well as an export-led economy and investing in the creative industry. 

The budget proposals, he said, also responded to the need to transform the economy to high-income status supported by significant allocations to programmes and initiatives aimed at growing the economy in terms of infrastructure development, human capital skills development, social inclusion and provision of national peace and security. 

He further said the proposed allocations took into account the constrained fiscal space and government’s commitment to restoring budget balance noting that rigorous fiscal measures would be instituted during the year. 

Dr Matsheka said the ministerial recurrent budget, estimated at P51.37 billion, had increased by 9.3 per cent over the 2019/20 approved budget. 

Five ministries comprising Basic Eduation, Defense, Justice and Security, Health and Wellness, Local Government and Rural Development and Tertiary Education, Research, Science and Technology accounted for 60.2 per cent of the total recurrent budget, he said. 

The Ministry of Basic Education was allocated the lion’s share of the budget at P9.01 billion as government remained committed to deliver on human capital development, a prerequisite for the transition towards a knowledge-based economy.

 Ministry of Defence, Justice and Security got P8.56 billion while P7.73 billion went to the Ministry of Health and Wellness to cover mainly the cost for provision of drugs, dressings and vaccines and anti-retroviral therapy. 

The Ministry of Local Government and Rural Development is allocated P7.14 billion to drive initiatives aimed at improving local governance, strengthening social development and promoting local economic development. 

The amount also covers transfers to district and urban councils, which accounts for 56.4 per cent of the ministry’s proposed recurrent budget. 

Costs of student’s bursaries are catered for under the P4.89 billion allocated to the Ministry of Tertiary Education, Research, Science and Technology. Ministry of Transport and Communications gets P1.93 billion, Ministry of Presidential Affairs, Governance and Public Administration P1.65 billion, Ministry of Agricultural Development and Food Security P1.39 billion, Ministry of Investment, Trade and Industry P1.07 billion, Ministry of Land Management, Water and Sanitation Services P1.04 billion) and Ministry of Finance and Economic Development P1 billion. Dr Matsheka said the remaining P5.95 billion would be shared among other ministries including extra-ministerial departments. 

On revenue, the minister said minerals contributed P20.02 billion, customs and excise P15.38 billion, non-mineral income tax P14.22 billion while VAT is expected to amount to P8.55 billion. 

The minister said his ministry was working with other ministries to review user fees and charges across government. “It is expected that additional annual revenue in excess of P500 million will be collected upon implementation of the revised fees and charges,” he said. ENDS