- Incoming President Rodrigo Duterte’s first national budget amounts to P3.35-trillion
- The amount is P300 billion more than the outlay of the outgoing administration
- Duterte’s budget secretary-designate Benjamin Diokno said the national budget proposed by the Department of Budget and Management (DBM) for 2017 “is just the right amount”
Incoming president Rodrigo Duterte’s first national budget amounts to P3.35-trillion which is P300 billion more than the outlay he will inherit from outgoing President Benigno S. Aquino III.
Duterte’s budget secretary-designate Benjamin Diokno said the national budget proposed by the Department of Budget and Management (DBM) for 2017 “is just the right amount,” an article written by Jess Diaz on Philippine Star dated June 15 stated.
Diokno stressed the annual outlay has to keep on going up so that the government can implement all its programs and projects that would be able to address the “increasing needs of the nation.”
In anticipation of the unmatched collection efficiency of Internal Revenue Commissioner Kim Henares, incoming finance secretary Carlos Dominguez have agreed on increased borrowings.
As such, the incoming administration have set a budget deficit cap of three percent of gross domestic product (GDP) which is one percentage point higher than the guiding limit that was utilized by the Aquino administration. However, the funding deficit is financed through borrowings.
In addition, Diokno said the outgoing administration managed the national debt through limiting the budget gap to two percent of GDP.
As explained by the incoming budget secretary, three percent is still manageable as long as the additional one percent will be used for infrastructure and not for the salary increase of state employees.
Meanwhile, outgoing Budget Secretary Florencio Abad described the proposed P3.35-trillion outlay for 2017 as a “transition budget (that) aims to bridge the goals and policies of the Aquino government with those of the next administration.”
Abad disclosed that with the institutionalization of reforms, the proposed budget will serve as a guide to the incoming administration in the allocation and management of public funds that is anchored on the principles of fiscal discipline, operational efficiency, transparency, and empowerment.
“The Aquino administration will entrust a healthier fiscal position to the incoming administration as a result of the various public financial management reforms implemented during its six-year term,” Abad was quoted saying; further adding that the outgoing administration’s successor would also inherit a healthy national economy.