Friday, August 8, 2014

Reform-backed 2015 budget to spur inclusive growth – DBM August 7, 2014

From the Website of the President

Reform-backed 2015 budget to spur inclusive growth – DBM August 7, 2014
Buoyed by the successful introduction of major spending reforms over the last four years, the Aquino administration’s proposed P2.606-trillion 2015 budget was designed specifically to fuel economic growth and bring direct and sustainable benefits to all Filipinos, Department of Budget and Management (DBM) Secretary Florencio “Butch” Abad said Wednesday.

Abad made the statement ahead of the Development Budget Coordinating Committee (DBCC) presentation on the proposed 2015 budget in the House of Representatives Wednesday.

“The very blueprint of the Aquino administration’s 2015 budget was designed precisely to bring inclusive growth to the country. We’ve already established some crucial budgetary reforms to make public expenditure more transparent, accountable, and participatory. Those same reforms now allow us to focus our resources better on the people’s most urgent needs, as well as on other initiatives that will catalyze economic growth,” Abad said.

Under the leadership of President Aquino, the DBM has helmed several budgetary reforms, including Zero-Based Budgeting, the disaggregation of lump-sum funds, Grassroots Participatory Budgeting (previously known as Bottom-Up Budgeting), Performance-Informed Budgeting, and the General Appropriations Act (GAA)-as-Release-Document regime, as well as other information technology and digitization initiatives.
These innovations put the Philippines on the global map for public spending reform, and the international community has since hailed the country as a pioneer in budget transparency and openness.

According to Abad, the proposed 2015 budget—which is 15.1 percent higher than the current year’s budget of P2.265 trillion—will respond to the growth demands of the country’s poorest and most disaster-prone provinces.

The Administration’s 2015 expenditure plan, which was dubbed Paggugol na Matuwid: Kaunlaran Para sa Lahat, will also direct greater investments into the Philippines’ most promising industries, including the agriculture, tourism, and manufacturing sectors.
“The budget proposal hews very closely to the unique requirements of our most impoverished provinces, including those that are regularly in the path of natural calamities. We’re also prepared to make even more dedicated investments into quick-expanding industries that have proven instrumental in fueling the economy,” Abad said.
“When the National Budget gives proper and sufficient support to these high-impact sectors—such as industry and agriculture—we can expect energetic public construction, brisk commercial activity, and even more job opportunities for our growing workforce,” he added.

The Budget Secretary also noted that the 2015 spending program shows further improvement in the quality of public expenditures, with the Administration hiking up budgetary support to social and economic services, all while managing the country’s debt-to-GDP ratio.

“Our investments in social protection and economic services have been unmatched. Under the proposed budget, expenditures under the social and economic sectors now comprise 6.8 percent and 4.9 percent of GDP, respectively. Even better, however, is the fact that spending for interest payments will now amount to just 2.6 percent of GDP.This means that we’re spending more on our people and less on debt payments, so that efficient public spending will translate to clear and tangible benefits for all.

“The Administration’s proposed 2015 budget is not mere abstraction; instead, it is the primary vehicle for the delivery of much-needed goods and services to the public. Through this expenditure program, the economic and governance gains we’ve so far recorded should manifest in the improved quality of life among Filipinos, as well as in the expansion of our economy and the strengthening of our public institutions,” Abad said.

Office of the President Website

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