THE HOUSE of Representatives aims to approve the proposed P6.352 trillion 2025 national budget before Congress takes a recess in September, Speaker of the House of Representatives and Leyte Rep. Ferdinand Martin G. Romualdez said Wednesday.
“Aside from our commitment in passing the few remaining priority measures of the LEDAC (Legislative-Executive Development Advisory Council) agreed upon during the June 25 council hearing, the House will once again work doubly hard to pass the proposed P6.352 trillion 2025 to approve General Appropriations Act. before we go on hiatus at the end of September 2024,” Mr Romualdez said in a statement.
The Development Budget Coordination Committee last week proposed a P6.352 trillion budget for 2025, a 10% increase from this year’s P5.768 trillion budget.
Budget Secretary Amenah F. Pangandaman said last week that the proposed National Expenditure Program for 2025 will be presented to the House of Representatives on July 29, a week later. after Congress reopens on July 22.
“The National Expenditure Program will be closely monitored to ensure that every peso allocated is spent judiciously and in line with our national priorities,” party-list representative Elizaldy S. Co, head of the House Appropriations Committee, said in a separate statement.
Mr. Romualdez said the House will hold budget hearings, but also deliberate on the priority LEDAC measures.
These include changes to a law that privatized the energy sector and a proposal to extend the lease period for foreign investors. Other pending measures include changes to the agricultural reform law and bills aimed at modernizing government budgets and national defense.
Analysts said the higher allocation for next year’s budget could boost economic growth. Economic managers target gross domestic product growth of 6.5 to 7.5% in 2025.
“The growth of more than +10% in the 2025 national budget… would bode well for faster economic growth and faster GDP (gross domestic product) growth. The largest allocation for education, infrastructure and social services, among others, would help accelerate economic growth and development,” said Michael L. Ricafort, chief economist of Rizal Commercial Banking Corp. in a Viber message.
The government must ensure that its budget efficig spent on reap economic benefitsFare, Leonardo A. Lanzona, an economistics professor at the Ateneo de MonNila University told Business in a Facebook Messenger chat.
“The huge budget does not guarantee any improvement in the Philippine economy. Much will depend on how effBasically it will be used and distributed,” he said.
Mr Lanzona said economic managers should look at reducing the country’s “high debt ratio” to meet sustainable economic growth.
The debt ratio was 60.2% as of 2012 Ffirst quarter. This year, the government debt-to-GDP ratio was set at 60.3%, slightly higher than the 60% threshold considered manageable for developing economies by multilateral lenders.
“Taxes and FRealistic reform measures would be needed to reduce the public debt-to-GDP ratio below the international threshold of 60%, thereby preserving the country’s relatively favorable credit rating,” Mr Ricafort said.
The government should step up tax collection before considering new tax laws, he added.
“The priority would be to intensify tax collection of existing tax laws and encourage compliance with the payment of correct taxes,” Mr. Ricafort said. “The last option would be new and higher taxes, especially if inflation stabilizes in the coming months and years.” — Kenneth Christiane L. Basilio