TO EASE concerns regarding a proposed budget cut for Cebu Normal University (CNU), the Department of Budget and Management (DBM) clarified that the Free Higher Education (FHE) program for students will remain unaffected by the cut.
This was emphasized by the DBM in a letter addressed to SunStar Cebu on Wednesday, Aug. 7, 2024, after it published a story on Sunday, Aug. 4 with the title, “DBM proposes P1.9B cut to CNU budget,” and on Monday, Aug. 5, “CNU appeals for more budget.”
With the proposed budget cut for CNU, some students expressed fears of reduced admissions and stalled building projects which could worsen campus infrastructure.
In an interview, CNU president Daniel Ariaso also said the proposed cut could affect the university’s vision to become a “smart university” by 2027, even though the National Expenditure Program (NEP) was still up for deliberation in Congress.
DBM letter
“To allay fears of the students, parents, teachers and other stakeholders, we would like to emphasize that the budget allotted for the FHE program was not affected by the reduction,” the DBM said in its letter.
The FHE is a program covered by Republic Act 10931, or the Universal Access to Quality Tertiary Education Act. It exempts Filipino citizens from paying tuition and other fees in public higher education institutions (SUCs) and local universities and colleges (LUCs) recognized by the Commission on Higher Education. The program’s goal is to increase access and participation in higher education, while also ensuring quality education.
The DBM also stressed that there is an increase of P1.7 million in the CNU’s budget for its implementation of the FHE program from P55.8 million in 2024 to P57.59 million in 2025.
The DBM formulates and implements the national budget to support national socio-economic plans and objectives and ensures the efficient and sound utilization of government funds and revenues.
The NEP is the executive department’s recommended budget for the upcoming year, but it is not final until the House and Senate adopt it. The authorized version by Congress will then reach the President’s desk and become the official budget for the next year.
According to the DBM, the Marcos administration allocated P23.381 billion under the Fiscal Year (FY) 2025 NEP for the overall implementation of the FHE across 117 SUCs. This is P1.664 billion more than the P21.717 billion it received under the FY 2024 General Appropriations Act (GAA).
“This is to shed light on the reports noting the seeming decrease in Cebu Normal University’s budget for 2025,” said the DBM.
Underspending
According to the DBM, the University’s non-recurring Congress-introduced items and projects, which total P2 billion in capital expenditure and P13 million in maintenance and other operating expenses, are the primary cause of the P1.986 billion difference between the University’s budget under the FY 2024 GAA and the P557.135 million under the FY 2025 NEP.
The 2025 NEP budget of CNU, specifically it’s MOOE appropriation, was also greatly affected by it’s low budget utilization rate (BUR) of only 67.12 percent as of Dec. 31, 2023, the DBM further explained.
The BUR is a metric that measures how much of a budget had been spent or committed at a given time. It is calculated by dividing the actual or committed expenditure by the total budget amount.
The DBM noted that it has consistently reminded agencies to avoid underspending given government’s very limited fiscal space.
The DBM also stressed that only implementation-ready proposals will be included in the crafting of the proposed national budget. (CDF)