MSMEs development suffers slash in 2023 budget

Development programs for the country's micro small medium enterprises (MSMEs) will get a lower funding under the proposed 2023 appropriations despite government pronouncements of the need to generate jobs for the people.

On Thursday's deliberation at the House of Representatives of the budget of the Department of Trade and Industry (DTI), Albay Representative Edcel Lagman pointed out that MSMEs Development, one of the programs under the DTI proper was allocated P2.25 billion.

This is lower by around P1.22 billion compared to the  P3.48 billion budget of the sector in 2022.

Lagman said the budget reduction does not match the current administration’s pronouncements of fully supporting the MSMEs.

“The new administration has repeatedly heralded and highlighted that it would fully support the development of MSMEs. However, the budget for the development of MSMEs does not appear to complement this bold pronouncements,” Lagman said.

“The total reduction for the MSMEs development program is P1.226 billion or 35.20%. How the department would try to achieve the full development of the MSMEs with the reduced budget?” he asked.

DTI Secretary Alfredo Pascual said that the department will strengthen public-private partnership to provide support for the MSMEs.

“With difficulty but we will try our best. If we cannot, if Congress would not be able to augment our budget particularly the amounts that have been cut out of our budget, our best [option] is work with the private sector to provide support,” he said.

Pascual said that they are in partnership with Go Negosyo which he said is being supported by major companies in the country.

“Money could either come from the government or the private sector, if the government will not provide, [we] will try to get private sector support. We are emphasizing public-private partnership so that's the most likely approach that we will pursue,” he said.

“But it would be ideal if we could get funding ... so we can accelerate the work we are doing in upscaling our small businesses,” he added.

Based on the proposed budget of the DTI, the budget for the office of the secretary and its attached agencies will get P19.99 billion. The biggest budget was allocated to the Technical Education and Skills Development Authority (TESDA) with P13.47 billion.

The Office of the Secretary will get P5.21 billion; Board of Investments with P344.47 million; Construction Industry Authority of the Philippines with P124.19 million; Cooperative Development Authority with P653.17 million; Design Center of the Philippines with P123.04 million; and Philippine Trade Trading Center with P67.18 million.

Meanwhile, House appropriations committee chairperson Elizaldy Co said the panel is hastening the hearings on the budgets of the departments to meet Congress’ self-imposed October deadline for the submission of the proposed 2023 national budget to the Senate.

“With the full support and expert guidance of Speaker Martin Romualdez, vice-chairperson Rep. Stella Quimbo and I will submit the 2023 national budget for immediate approval by the House plenary. The proposed budget will address the issues of recovery and growth that are the President’s main economic goals,” Co said.—LDF, GMA News