Smarter News Now
  • About Us
  • Privacy Policy
  • Terms & Conditions
  • Contact Us
  • Email Whitelisting
No Result
View All Result
  • Top News
  • Economy News
  • Forex News
  • Investing News
  • Stock News
  • Politics News
  • Editor’s Pick
  • Top News
  • Economy News
  • Forex News
  • Investing News
  • Stock News
  • Politics News
  • Editor’s Pick
No Result
View All Result
Smarter News Now
No Result
View All Result
Home Investing News

Gov’t agencies urged to review budget proposals

by
June 13, 2022
in Investing News
0
Gov’t agencies urged to review budget proposals
0
SHARES
15
VIEWS
Share on FacebookShare on Twitter
A worker paints social distancing markers on the ground at the Old Balara Elementary School in Quezon City. — PHILIPPINE STAR/ MICHAEL VARCAS

THE DEPARTMENT of Budget and Management (DBM) on Monday urged government agencies to review their budget proposals for 2023, amid limited fiscal space.

In a statement, the DBM said agencies should reevaluate their budget proposals for next year “to ensure the efficient use of limited resources and to provide additional fiscal space for new public programs and projects.”

The Development Budget Coordination Committee (DBCC) last month approved a record P5.268-trillion cap on the national budget for 2023, which represents 22.1% of the gross domestic product (GDP). Next year’s budget is 4.9% higher than the P5.02-trillion budget for this year.

In National Budget Memorandum (NBM) No. 144, the DBM said agencies should make sure that Tier 1 or existing programs and Tier 2 or new programs are in line with the government’s spending direction and other key strategies, as well as the incoming administration’s priorities.

The programs should also be implementation-ready and can be completed within a year. These should also reflect the agency’s absorptive capacity.

“For the National Government to maximize the use of limited resources and to practice prudent public financial management, the departments/agencies are hereby encouraged to reevaluate their Tier 1 proposals,” the DBM said.

“Given the absence of additional fiscal space for FY 2023, these adjustments in the Tier 1 levels may provide some headroom for direly needed Tier 2 proposals for new and expanded PAPs (program, activity and projects).”

Budget proposals for Tier 2 or new programs should focus on “health-related expenditures, disaster-risk management, social security, digital economy/government, local government support, and growth-inducing expenditures which include crucial and shovel-ready infrastructure projects, among others,” DBM said.

The DBM said these priorities will help accelerate the economy’s recovery from the pandemic.

The DBCC set a 6-7% GDP growth target for 2023, slightly lower than the 7-8% target for this year. The budget deficit is expected to decline to 6.1% of GDP in 2023, from 7.6% this year.

The outstanding National Government debt reached P12.68 trillion, equivalent to 63.5% of GDP, as of the first quarter.

“While this is significantly lower than the historic high of 71.6% of GDP debt ratio recorded in 2004, downside risks for recovery remain high with the ongoing pandemic and recent global developments, such as the Ukraine-Russia war,” the DBM said, adding these may add to uncertainty.

“This will require the government to be more prudent in managing its fiscal position to promote long-term sustainability, and ensuring that high-impact expenditure items will be prioritized to maximize the limited public funds available.”

Also, the DBM reminded National Government agencies to make sure they do not duplicate any functions assigned to local government units (LGUs).

“(The National Government agencies should) instead shift their focus to developing service delivery standards, and capacitating local governments in areas of implementation and management of devolved functions and public financial management,” it added.

Starting this year, LGUs received a bigger share of the National Government’s tax collections, alongside the transfer of basic services due to the implementation of the Supreme Court’s Mandanas ruling.

The ruling is named after Batangas Governor Hermilando I. Mandanas who successfully challenged the government’s previous position that LGUs were entitled to a smaller share of National Government funds. — TJT

ShareTweetPin

Related Posts

Stocks decline on profit taking, recession fears
Investing News

Stocks decline on profit taking, recession fears

August 23, 2022
Peso climbs vs dollar as RTB offer starts
Investing News

Peso climbs vs dollar as RTB offer starts

August 23, 2022
PNR cancels bids for 3 projects after finding them ‘non-feasible’
Investing News

PNR cancels bids for 3 projects after finding them ‘non-feasible’

August 23, 2022
Senate grills Rodriguez on approval procedures for sugar import order
Investing News

Senate grills Rodriguez on approval procedures for sugar import order

August 23, 2022
Trade dep’t expecting sugar price monitoring report by Friday
Investing News

Trade dep’t expecting sugar price monitoring report by Friday

August 23, 2022
Fisherfolk seek halt to reclamation on municipal fisheries
Investing News

Fisherfolk seek halt to reclamation on municipal fisheries

August 23, 2022
Next Post
FDI net inflows drop to 10-month low

FDI net inflows drop to 10-month low

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Email Address *
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!
 

Recommended

Peso sinks on higher debt, Fed hike bets

Peso sinks on higher debt, Fed hike bets

June 2, 2022
Thousands of post Office collection and cash delivery workers to strike on 14 July

Thousands of post Office collection and cash delivery workers to strike on 14 July

July 1, 2022
Russia forecasts export gas price will more than double in 2022 

Russia forecasts export gas price will more than double in 2022 

August 18, 2022
Never again to a Spoliarium

Never again to a Spoliarium

June 26, 2022
Smart delivers best overall mobile experience with fastest and widest network – Opensignal  

Smart delivers best overall mobile experience with fastest and widest network – Opensignal  

July 11, 2022
Peso sinks to over three-year low as hawkish Fed fans growth concerns

Peso sinks to over three-year low as hawkish Fed fans growth concerns

June 20, 2022
  • About Us
  • Privacy Policy
  • Terms & Conditions
  • Contact Us
  • Email Whitelisting

Copyright © 2022 SmarterNewsNow.
All Rights Reserved.

Disclaimer: SmarterNewsNow.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice.
The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

No Result
View All Result
  • About Us
  • Contact Us
  • Email Whitelisting
  • Home
  • Privacy Policy
  • Terms & Conditions
  • Thank You

Copyright © 2020 SmarterNewsNow. All Rights Reserved.