DOF prioritizes education, social protection, and infrastructure

By Francis Allan L. Angelo

Finance Secretary Ralph G. Recto emphasized the Department of Finance’s commitment to maximizing revenue for critical areas such as education, social protection, food security, and infrastructure.

Speaking at the Philippine Association of State Universities and Colleges (PASUC) Annual Convention on July 15, 2024, Recto highlighted the government’s dedication to fostering a generation of globally competitive Filipinos.

“Education must be a top priority of the government. And it is the last expenditure upon which the Philippines should be willing to economize,” Recto asserted.

He underscored that the nation’s progress is intrinsically linked to the quality of its human capital, stating, “Education dictates whether a nation prospers or remains poor.”

The 2024 General Appropriations Act reflects this priority, allocating PHP 969 billion to education, marking an 8.2% increase from 2023.

Of this, PHP 132.9 billion is designated for state universities and colleges (SUCs), a 19.3% increase, including PHP 21.7 billion for free tertiary education benefiting over 3.1 million students.

“It was my goal to ensure that every student who cannot make it to college on his own receives a helping hand from the government,” Recto noted, referencing his advocacy for free tertiary education during his tenure as a legislator in 2017.

Recto highlighted the substantial return on investment in higher education, citing the World Bank’s estimation of a 17% increase in earnings for college graduates.

“A college diploma may not make one as rich as Elon Musk. But it is a tried-and-tested ticket out of poverty–towards a life of prosperity and health,” he noted.

Given the Philippines’ median age of 25, Recto believes that an educated workforce could catalyze significant economic growth and innovation, breaking the cycle of poverty.

To fully harness this potential, the government is also prioritizing social protection, food security, and infrastructure.

This year, the government has allocated around PHP 440 billion to social protection programs, PHP 221.7 billion to agriculture, and PHP 1.47 trillion to infrastructure projects, including disaster-resilient school buildings.

Upcoming infrastructure projects like the Metro Manila Subway and LRT-1 Cavite Extension are expected to benefit students by improving access to educational institutions.

To bridge the digital divide, the government is advancing the Philippine Digital Infrastructure Project and the National Broadband Program, preparing students for a future driven by artificial intelligence (AI).

Additionally, fiscal policies like the CREATE MORE bill aim to attract investments in human capital development, such as knowledge, innovation, and science technology parks in SUCs.

Recto urged SUCs to utilize resources efficiently and embrace modernization and innovation. “Rest assured, the DOF stands ready to support the PASUC every step of the way in nurturing a new generation of healthy, smart, and globally competitive Bagong Pilipino,” he concluded.

The PASUC convention, themed “Advancing Competitiveness of SUCs for National Development,” gathered around 1,000 leaders and faculty members to discuss strategies for enhancing SUC programs and initiatives.