Diokno: Government spending will remain prudent and sustainable

November 26, 2018

Budget Secretary Benjamin Diokno assured Monday government spending will remain prudent, sustainable, and consistent with the Philippines' development objectives, as he spoke in front of investors, businessmen, and civil servants for the Sulong Pilipinas 2018 forum at the ASEAN Convention Center in Clark.

Joined by Finance Secretary Carlos Dominguez, Transportation Secretary Art Tugade, Bangko Sentral ng Pilipinas Deputy Governor Diwa Guinigundo, and other key officials, Diokno discussed the Philippine economy's fiscal performance, strategy, reforms, and outlook.

"We intend to increase the infrastructure budget to 4.7 percent of GDP in 2019, then ramp it up to as high as 7.0 percent of GDP in 2022," Diokno explained as he emphasized this administration's commitment to a massive infrastructure overhaul through the Build Build Build program.

These huge investments in public infrastructure are unprecedented in the country's history, as infrastructure spending only averaged a meager 2.6 percent of GDP for the last 50 years.

 "For FY 2017, actual disbursements for infrastructure and other capital outlays outpaced the program by  P19.4 billion, or 3.5 percent. In total, infrastructure and other capital disbursements reached P568.8 billion,"  Diokno said.

Diokno also highlighted the budget utilization performance in 2018. From January to September, actual disbursements have exceeded programmed disbursements by 2.6 percent.

"This may be the first time that actual government expenditures exceeded programmed expenditures: P2.49 trillion versus P2.43 trillion," Diokno.

"The trend in infrastructure and other capital disbursements is even more impressive. Spending for the first nine months of the year increased by a staggering P179.6 billion, or 45.9 percent. This is clear proof that the Build Build Build program is firing on all cylinders," Diokno said

"We at the Department of Budget and Management would like to assure the Filipino people that government spending will be prudent, sustainable, and supportive of economic development," Diokno said. DMS