Business and Economy
GDP to take a hit from reenacted budget
An assessment by the government’s economic team released Monday showed that domestic output, which is targeted to grow by at least seven percent from 2019-22 may only grow between 4.
7-5.9 percent next year should Congress fail to pass a new budget.
(Pixabay photo)
MANILA — An estimated 1.1 to 2.3 percentage points is expected to be shaved off the Philippines’ gross domestic product (GDP) next year if government is forced to operate on a re-enacted budget in 2019.
An assessment by the government’s economic team released Monday showed that domestic output, which is targeted to grow by at least seven percent from 2019-22 may only grow between 4.7-5.9 percent next year should Congress fail to pass a new budget.
Approval of the proposed PHP3.757 trillion-national budget is still uncertain as some legislators continue to question some items.
This year, the government is working on a budget amounting to PHP 3.767 trillion.
The Department of Budget and Management (DBM) estimates that disbursement will be cut by PHP219.8 billion if budget is re-enacted next year.
Under a re-enacted budget, disbursement will only amount to PHP3.
526 trillion, lower than the 2019 baseline of PHP3.746 trillion.
Bulk of these, amounting to PHP1.126 trillion will be allocated for Personnel Services (PS), and will be followed by the Maintenance and Other Operating Expenses (MOOE), PHP552.555 billion, Capital Outlays (CO), PHP700.294 billion; and Subsidy, PHP157.127 billion.
The National Economic and Development Authority (NEDA), in turn, estimates that employment might be lower by as much as 600,000 if the budget is re-enacted.
Affected sectors might include construction, public administration and defense, wholesale and retail, land transportation, and education.
The government report also indicated that some 200,000-400,000 individuals may be pushed deeper into poverty if the government works on a re-enacted budget.
