Proposed 2003 Budget Shows Military Bias

The huge increases in the military and police budgets are in stark contrast to the huge cuts, or otherwise grossly insufficient spending, for social services for the general public. These cutbacks continue a trend that has been worsening since the mid-1990s.

BY SANDRA NICOLAS
Bulatlat.com

President Gloria Macapagal-Arroyo declared in her budget message that the proposed National Budget for Fiscal Year 2003 “supports (her) administration’s vision of a strong republic that takes good care of its people and the people’s future.” Unfortunately the only people it takes care of are the military and police and the only future it looks out for is the 2004 presidential elections. 

The proposed 2003 budget of P804.2 billion reflects the government’s struggle against its uncontrollable budget shortfall and is a modest 4.5 percent larger than the 2002 budget. The 2002 national government budget deficit is already far above the target of P130 billion for the year and, at P144 billion as of end-August, is expected to be at P170-190 billion by year-end. The Department of Budget and Management has already said that it may suspend or cut expenses between P20-30 billion until the end of the year. 

Strengthening the military and police 

Yet these budget woes do not affect the military and police who, apparently in lieu of the people, are the real foundation of Ms. Arroyo’s avowed “Strong Republic.” The budget next year of all the Armed Forces of the Philippines (AFP) military units – General Headquarters, Army, Air Force, Navy, and Presidential Security Group – increases by P4.23 billion to a total of P37.8 billion. This includes the additional P2.95 billion for AFP salary increases and additional P800 million for 7,000 new soldiers. Meanwhile budget items of P1.43 billion for paramilitary CAFGUs and P96.3 million for Balikatan so-called exercises remain.  

There is also a large P1.05 billion increase in the AFP Pensions and Gratuity Fund. Conveniently, accounting changes in the 2003 budget transfers this AFP fund from the Department of National Defense (DND) to “Other Special Purpose Funds.” Similarly with the P5 billion AFP Modernization Fund which has been transferred to the “Unprogrammed Fund” and, while still planned, is made contingent on there being savings elsewhere or on the receipt of financing (for instance through military aid from the United States). These accounting changes have the effect of understating total military spending. 

The Philippine National Police (PNP) is likewise unaffected by budget difficulties. The administration is aiming for an additional P2.31 billion for the PNP which brings its total budget to P35.3 billion. This includes the additional P2.1 billion for PNP salary increases and additional P300 million for 4,000 new police. The DBM has also said that there is, on top of these, an additional P855 million for 5,000 new police, jailguards and firemen. 

The huge increases in the military and police budgets are in stark contrast to the huge cuts, or otherwise grossly insufficient spending, for social services for the general public. These cutbacks continue a trend that has been worsening since the mid-1990s. 

Cutting back on social services 

Health sector spending falls by P502.2 million to just P14.0 billion. Taking into account inflation and population growth, real health spending per person falls from P170 in 2002 to P152 in 2003 (in 2001 pesos). Yet even in health spending the military bias is clear. The Department of Health (DOH) budget is cut by P488.4 million and the combined budgets of the Lung Center, Kidney Institute, Heart Center, Children’s Medical Center and Alternative Health Care Center are cut by P16.0 million. However the budget of the two military hospitals – AFP Medical Center and Veterans Memorial – is increased by P26 million. These two hospitals alone take up 9.6% of the total health sector spending.

The story is the same for social security, welfare and employment spending which falls P184.7 million to P33.8 billion. The Department of Social Welfare and Development, (P99.9 million cut), the Philippine Overseas Employment Administration (P11.7 million), and the Presidential anti-poverty agencies (P9.6 million) bear all these cuts to enable the increase in the AFP pension fund which, at P22.6 billion, takes up a massive 66.8% of the sector’s total spending.

Meanwhile, the housing budget is going to be cut by P307.5 million to just P1.7 billion, which is less than a sixth of its level in 2000 and the second lowest housing spending ever. Real housing spending per person then falls from P26 per person in 2002 to just P18 per person in 2003.

The education budget nominally increases by P982.8 million to P129.9 billion. But this is still insufficient to make up for inflation and population growth and real education spending per person still falls from P1,516 per person in 2002 to P1,413 per person in 2003. And, again, the military bias is present. The budget for state universities and colleges is cut by P143.9 million and for Philippine Science High School/Science Education Institute by P28.3 million yet the budget of the Philippine Military Academy is still increased by P30.2 million.

Bolstering presidential ambitions

The presidency is likewise immune to budget cutbacks and indeed has seen some marked increases. The Office of the President’s P650 million 2003 budget for confidential and intelligence expenses is a large P55 million increase from 2002 that has been achieved by making cutbacks in other agencies’ allocations. The Presidential Management Staff will get P48.8 million more (for a total of P173.6 million) and the Office of the Press Secretary-Proper will get P13.2 million more (total P107.6 million).

It also seems as if the people are being made to pay for the cost of Ms. Arroyo’s propaganda gimmick of reducing the controversial Purchased Power Adjustment (PPA). The Department of Energy’s (DoE) budget leaps 64% in 2003 to P2.25 billion despite the decrease of P120 million in the National Electrification Administration budget and of P33.1 million in the Energy Regulatory Commission budget. The reason is that there is a massive P908.8 billion increase in the DoE’s “Special Account.” Recorded also as an increase in “grants, contributions and subsidies,” it is very likely that this goes to power firms as compensation for lowering PPA charges in their monthly billings. 

The National Budget cannot but reflect the government’s priorities. In the case of the proposed 2003 General Appropriations Act (GAA) Ms. Arroyo’s priorities clearly are similar to the U.S.’ defense budget hikes amid the anti-terrorism war. The government may have somehow found reason to increase spending on the military and police despite very real budget difficulties. For the social services that the people so badly need, however, it seems no reason is ever good enough. Bulatlat.com

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