DBM: MSME Programs to get P1.2B Funding Assistance Under 2023 GAA

A total of P1.2 billion will fund various government programs to boost micro, small, and medium enterprises (MSMEs) under the 2023 General Appropriations Act (GAA).

These programs are part of the MSME Development Plan and other initiatives of the Department of Trade and Industry (DTI) to promote the growth of MSMEs; establishment of Negosyo Centers; One Town One Product (OTOP) Next Gen; and Shared Service Facilities (SSF).

“MSMEs serve as the building blocks of the economy. Dahil dito, sinisikap po ng pamahalaan na palakasin ang MSMEs at alalayan sila sa pagbangon, especially from the challenges that hindered their growth, such as the pandemic,” said Department of Budget and Management (DBM) Secretary Amenah F. Pangandaman.

“Following the directive of President Marcos Jr., sisiguruhin po natin na patuloy na popondohan ang mga programang tutulong at magpapalakas sa mga MSME,” Secretary Pangandaman added.

Under the 2023 GAA, some P583 million is allocated for the implementation of the MSME Development Plan and similar government programs.

Around P487 million will also help establish Negosyo Centers. A Negosyo Center is an MSME-support office of the government that operates to promote ease of doing business and facilitate access to services for MSMEs. Negosyo Centers are established in all provinces, cities, and municipalities.

The OTOP Next Gen — a program that assists MSMEs in product development initiatives, training, referral, among others to level up the products in design, quality, and volume — will receive P97 million. The OTOP program enables localities and communities to determine, develop, support, and promote products or services that are rooted in their respective local cultures, community resources, creativity, connection, and competitive advantages.

Meanwhile, the SSF will get 80 million —70 million to finance Maintenance and Other Operating Expenses (MOOE), and P10 million to fund capital outlays.

The SSF gives MSMEs access to sophisticated machines and equipment towards improving the quality of their products, increase their production capacity, accelerate their competitiveness, and expand their businesses. DBM