The Development Budget Coordination Committee (DBCC) issued a statement last Thursday, growth target this year was revised downwards to 5.5-6.5%, and 2026-2028 at 6-7%, see https://www.dof.gov.ph/191st-dbcc-joint-statement/.
The budget deficit to remain at P1.5 trillion yearly, expenditures just keep expanding even without econ. crisis, various agencies cannot control their itch to spend spend spend.
The early PH Devt. Plan (PDP) and DBCC’s deficit-to-GDP target of 3.0% by 2028 no longer attainable. The target spending in 2026 is P6.6 trillion but submission by agencies to DBM last April or May was already P11 trillion. Tragedy of the commons, agencies national and local want to extract as much money as possible from the taxpayers or from new borrowings.
I think the bigger problem is the endless crisis narratives. Education crisis, health crisis, stunting crisis, housing crisis, transportation crisis, climate crisis, virus crisis, etc. Most agencies adopt a crisis situation in their sectors to justify endless lobby for higher budget yearly. The UN Socialist Devt Goals (SDGs) is part of this endless crisis narratives, keep governments and multilaterals to expand endlessly.
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See also:
Macroecon 30, PH low unemployment, high GDP growth, August 08, 2024
Macroecon 31, Low oil prices, low inflation, September 05, 2024
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