Gov’t sets P3.8-T disbursements for 2019

MANILA -- Capital raised at the Philippine Stock Exchange (PSE) was at a record high of P150.01 billion in the first half of 2018. The amount raised in the first six months was 40.5 percent higher than the P106.74 billion recorded in the same period last year.

The capital raising activities from January to June 2018 consisted of stock rights offerings by PetroEnergy Resources Corporation, Robinsons Land Corporation, Integrated Micro-Electronics Inc., The Philippine Stock Exchange Inc., Metropolitan Bank & Trust Company, and Bank of the Philippine Islands and the initial public offering of D.M. Wenceslao and Associates, Incorporated.

There were also private placements in IRC Properties, Inc., China Banking Corporation, Basic Energy Corporation, and Golden Bria Holdings Inc.

“Market volatilities did not hamper the expansion plans of our listed companies. This is an indicator that they are set on completing their business initiatives amidst a robust domestic economy,” said PSE President and Chief Executive Officer Ramon Monzon.

“The Exchange is pleased to be a conduit in the growth of listed companies by serving as a venue for capital raising. We are also delighted to have already reached 75 percent of our target capital raising amount for the year,” Monzon added.

More fund-raising activities are expected to be completed in the next two months via follow-on offerings and stock rights offering.

“While the stock market has experienced a sharp decline from its all-time high early this year, we expect the country’s sound economic fundamentals to continue to encourage listed companies and potential issuers to raise capital through the equities market and to attract investors to participate in the offerings,” he noted. (PR) This image made from video of a fake video featuring former President Barack Obama shows elements of facial mapping used in new technology that lets anyone make videos of real people appearing to say things they've never said. There is rising concern that U.S. adversaries will use new technology to make authentic-looking videos to influence political campaigns or jeopardize national security. (AP)

MANILA -- The Development Budget Coordination Committee (DBCC) announced on Monday, July 2, that the government’s disbursement program next year is at P3.8 trillion and will be expanded to P5.362 trillion in 2022.

In a press conference following the 173rd DBCC Meeting, Department of Budget and Management (DBM) Secretary Benjamin Diokno said P3.757 trillion of the total disbursements for 2019 will be cash-based, as the government will be shifting from obligationsbased budgeting for the next fiscal year.

“The shift to cash-based budgeting is projected to enhance the efficiency of national government disbursements,” said Diokno.

The DBM chief said the P3.757-trillion proposed national budget will be submitted to the Congress this month during President Rodrigo Duterte’s State of the Nation Address (SONA).

He mentioned that the national budget for next year is equivalent to 19.4 percent of the country’s gross domestic product (GDP).

Although the proposed budget for 2019 is lower than the P3.8-trillion approved budget this year, Diokno explained that the cash-based appropriation is still by 18.3 percent compared to the cash-based program in 2018.

Moreover, the DBCC will be proposing to the Chief Executive to hike the budget deficit next year to 3.2 percent of GDP from the 3 percent it had projected earlier.

“The planned deficit is set at P624 billion for 2019 up to P774.3 billion in 2022,” Diokno said. “The mediumterm financing program will continue to favor domestic borrowings, following a 6535 [percent] mix in 2018, and a 75-25 mix from 2019 to 2022.”

Diokno noted that government infrastructure programs and investments in human capital development are gaining momentum.

He added that the government will ensure that these programs will not be in disadvantage because of lack of funding.

“We certainly want to accelerate the Build Build Build program and also we are accelerating the investment in education and investment in social services including health,” Department of Finance (DOF) Secretary Carlos Dominguez III echoed.

Dominguez said the government’s borrowing needs to support its disbursement program next year will depend on the success of borrowing programs this year.

He mentioned that the Samurai bonds set to be offered this second half of the year will be a prepositioning for government funds.

In the first half of 2018, the national government issued USD2-billion 10-year global funds and 1.46-billion renminbi Panda bonds. (PNA)