Here’s why ‘08 Philippines budget is anti-poor

In the proposed 2008 budget, the Department of Budget and Management (DBM) said the health department is one of the top gainers in terms of budgetary allocations. But the increased budget is still inadequate to ensure a satisfactory level of health services for Filipinos, according to Ibon.

Under the 2008 budget proposal, the Department of Health (DOH) is allocated P16.3 billion. Based on an estimated population of 90.5 million for 2008, this means that government will allocate just P180.29 per Filipino for health services.

The low per capita allocation for health is part of a pattern of government’s neglect of the public health sector, said Ibon executive editor Rosario Bella Guzman. The country’s poor, who cannot afford to pay for healthcare and rely on free or subsidized government services, are the most affected by low government spending on health. This is reflected in DOH figures that show that as of 2003, the poorest 20% suffered the most number of infant and child mortality rates.

The poor allocation of the health budget is manifested in the scarce number of public health workers. In 2004, there were only around 4 doctors and 5 nurses for every 100,000 Filipinos.

Thus, contrary to the Arroyo government’s claims of a social payback in exchange for new tax measures, only 17 centavos out of every peso in revenues are allocated in next year’s budget for health, education and housing services.

In contrast, 24 centavos for every one peso of revenues is allocated for debt servicing of interest payments. If debt servicing of principal amortization is factored in, 50 centavos out of every peso of revenues will go to total debt servicing.

Government’s skewed priorities can be seen in other budgetary allocations that are given more importance over health spending: debt interest payments are allocated P295 billion or P3,261 per Filipino. Meanwhile, the Department of National Defense will receive P56 billion– or more than three times the allocation for the DOH. (Ibon Foundation)