NEDA OUTLINES PRIORITY STRATEGIES TO HELP PH RECOVER GROWTH MOMENTUM DESPITE RISKS

The National Economic and Development Authority (NEDA) reassured lawmakers that the strategies outlined in the Philippine Development Plan (PDP) 2023-2028 will enable the country to bolster and recover the growth momentum, despite domestic and external risks.

[Download the PDP 2023-2028 here].

NEDA Secretary Arsenio M. Balisacan emphasized this to members of the House of Representatives’ Committee on Appropriations during the Development Budget Coordination Committee’s (DBCC) presentation of the proposed PhP5.768-trillion FY 2024 national budget.

“The PDP guides the allocation of government resources to various programs and projects that will contribute to the attainment of the government’s socioeconomic agenda,” he said during the presentation.

Balisacan cited some of the major risks that the DBCC considered when identifying the spending priorities in the proposed national budget.

“In terms of domestic risks, elevated inflation may continue to dampen domestic demand, while high input prices, the spread of infectious animal diseases, and inclement weather, including the onset of El Niño that is expected to last until Q1 2024, may reduce farm output,” he continued.

The Economic Team consisting of the Bangko Sentral ng Pilipinas, the National Economic and Development Authority, the Department of Finance, and the Department of Budget and Management, held the House briefing shortly after the Philippine Statistics Authority (PSA) reported that the country’s gross domestic product (GDP) grew moderately by 4.3 percentduring the second quarter of 2023. This brings the country’s growth average to 5.3 percent in the first semester of the year.

During the PSA press conference, Balisacan noted that the Economic Team commits to accelerate government spending in the coming quarters to facilitate the recovery of the country’s growth momentum.

“To do this, we will accelerate the execution of government programs and projects, including the delivery of public services, under the 2023 national budget,” the economic managers said in their joint statement.

Balisacan concluded his presentation to Congress by enumerating several priority strategies in the PDP which will be reflected in the government’s programs and projects funded through the budget. The strategies include: ensuring food security; addressing learning losses; boosting health; strengthening social protection; reducing transport, logistics, and energy costs through modernized and upgraded infrastructure; ensuring sound fiscal management; and accelerating the digital transformation of government.

The NEDA chief also reiterated that the key to achieving inclusive growth is generating quality jobs from investments.

“It’s not so much the employment that’s the problem; it’s the quality of jobs. To improve the quality of jobs, we need more investors; we need jobs in manufacturing, in high quality services… We also have to improve the employability of our workers so that they can be absorbed in emerging sectors like creative industries and the green economy,” he continued.

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