Duterte economic program gains early momentum: Diokno

“The first two years of the administration of President Duterte registered the highest level of economic growth among post-Marcos administrations, averaging 6.6 percent from the years 2017 and 2018,” said Diokno. (PNA File photo)

MANILA — President Rodrigo Duterte gained his momentum early as far as driving the economy forward in the first two years of his term, Department of Budget and Management (DBM) Secretary Benjamin Diokno said in a briefing Wednesday.

Diokno said the first two years of an administration is usually the adjustment period, wherein economic growth is expected at a modest pace. However, the Duterte administration instead buckled down and proceeded with its economic program at an accelerated pace.

“The first two years of the administration of President Duterte registered the highest level of economic growth among post-Marcos administrations, averaging 6.6 percent from the years 2017 and 2018,” said Diokno.

He noted that this is stronger compared to the average gross domestic product (GDP) growth in the first two years of former President Benigno Aquino III at 5.2 percent; Arroyo administration at 4.3 percent; Estrada administration at 3.8 percent; Ramos administration at 3.3 percent; and Corazon Aquino’s administration at 5.6 percent.

The DBM chief attributed the fast economic growth pace during the current administration’s first two years to the robust spending for infrastructure projects under the “Build, Build, Build” Program, as well as its policy of investing heavily in human capital.

“It would appear that President Duterte hit the ground running, no adjustment period. He didn’t need the usual adjustment period,” Diokno added.

He also mentioned that the current administration was able to create high quality jobs. He cited as examples the two-year average growth rate posted by two key sectors. These are the Industry sector with 7 percent and the Service sector with 7.15 percent — the strongest since the administration of former President Corazon Aquino.

“This is crucial for the Philippine economy to achieve its poverty-reduction goals,” said Diokno.

But the DBM chief admitted that the agriculture sector is the “weakest link” of the Duterte administration, averaging at 2.2 percent in 2017 and 2018.

“If we are able to grow agriculture by 4 percent, the economic growth target of 7 to 8 percent is very much attainable. This administration intends to work on its weakest link to realize the fullest potential of our sectors, and further drive growth for the people,” he added.

“I think we really have to focus now on mechanization. We have to focus on adapting higher quality of seeds, more on irrigation, more demonstration on farms. We have to show the farmers that these things really make a difference and maybe he has not done that,” said Diokno.

Meanwhile, the DBM reported that the government registered PHP10.7 billion worth of procurement savings in 2018 as a result of the administration’s procurement reforms.

Diokno reported that the government awarded a total of 446 contracts last year amounting to PHP175.8 billion.

The procurement savings in 2018 was higher compared to the PHP3.74 billion and PHP3.2 billion savings earned in 2016 and 2017, respectively.

“In the past decades, one of the bottlenecks of public service delivery has been delays in procurement. Since we assumed office in 2016, we have been keen on introducing more efficient systems in this area,” Diokno said.

“So far, I am pleased to say our reforms have been yielding our intended results,” he added.