Congress pledges additional P100-million budget for SME, OTOP projects

MANILA, Philippines - The House of Representatives has pledged on additional P100-million budget for the Department of Trade and Industry (DTI) to support small-and medium-sized enterprises (SMEs) and local government projects.

At its budget hearing on Thursday, Trade Secretary Gregory L. Domingo said the DTI has proposed a P3.2-billion budget for 2011 but was only allocated P2.179 billion, lower than this year’s budget of P2.164 billion.

This has prompted the department to cut some of their expenses, particularly the One Town One Product (OTOP) project, and for its consumer advocacy program even if the aggressive protection of consumer rights is one of its major thrusts for next year.

But the cut in the OTOP budget has alarmed the lawmakers given that it is the project that provides livelihood to people in the countryside. The OTOP program was crafted five years ago in order to develop the strength of each province and develop the product in order to make it marketable to a wider market and improve the livelihood of the underprivileged.

“I am disappointed with the budget given to DTI,” Rep. Rufus Rodriguez told the committee. “I will be the one moving for an increase of P100 million in its budget. I will get it from the other departments that do not need it.”

Rodriguez said out of the additional budget, P60 million will be for SME competitiveness and P20 million each for OTOP and the bamboo development program.

Domingo, however, said that he has received strict instructions from the Department of Budget and Management to avoid asking for any increases in their budget.

For her part, Trade Undersecretary Zenaida C. Maglaya said she is optimistic that the increase in the budget will be approved by Congress given that Rodriguez is now a member of the majority.

The major program of the DTI for 2011 is automation, the aggressive protection of consumer rights, accessible and targeted business development services for SMEs especially in the regions, awareness in free trade agreements and attracting new investments.