‘Sustainable growth’ with medium-term fiscal program

The Development Budget Coordination Committee (DBCC), chaired by Budget and Management Secretary Benjamin E. Diokno, assured that the country will enjoy sustainable growth with the medium-term fiscal program.

Diokno and fellow economic managers, Finance Secretary Carlos G. Dominguez and Socio-economic Planning Secretary Ernesto M. Pernia, deliberated on the government’s fiscal program in time for the submission of the 2019 National Budget to Congress.

“We have reviewed the gov- ernment’s macroeconomic assumptions and updated the medium-term fiscal program to ensure that the 2019 Budget reflects prevailing economic conditions,” said Diokno.

“I can assure you that our fiscal strategy remains to be prudent, sustainable, and supportive of our development objectives,” he added.

Revenue collection is expected to reach P3.208 trillion in 2019, equivalent to 16.6 percent of gross domestic product (GDP). This is projected to rise to P4.588 trillion in 2022, or 17.7 percent of GDP. Tax policy reforms and improved tax administration will provide a much-needed boost to revenue effort in the medium-term.

Disbursements are programmed to hit P3.833 trillion in 2019, equivalent to 19.8 percent of GDP, rising to P5.362 trillion in 2022, or 20.7 percent of GDP. The shift to cash-based budgeting is projected to enhance the efficiency of national government disbursements.

The planned deficit is set at P624.0 billion for 2019 up to P774.3 billion in 2022. /