Albay Rep. Joey Sarte Salceda said that he and Finance Secretary Benjamin E. Diokno have agreed on the need for a medium-term fiscal plan, which Congress will institutionalize in a Joint Resolution.
“Secretary Diokno and I have agreed on the need for a medium-term fiscal plan that takes into account revenue as well as expenditure projections until 2028, the end of PBBM’s term,” said Salceda whom the House majority leadership has named as retaining his post as House Ways and Means chairperson.
Salceda added that Diokno and he had discussions on the country’s fiscal management strategy in a meeting on Saturday. “I have committed to file the Joint Resolution on the matter, awaiting the incoming Speaker’s instructions.”
“The Committee on Ways and Means is also prepared to provide the needed legislative support for the revenue base under the Joint Resolution.”
“The medium-term fiscal program will basically be a path for revenues to go from 15.3 percent of GDP to 17.6 percent of GDP; and for expenditures to go from 22.9 percent of GDP to 20.6 percent. In other words, the plan will aim to narrow the deficit to just 3 percent by the end of PBBM’s term,” Salceda explained.
“That, of course, will depend highly on growing our GDP, and outgrowing our debt,” Salceda added
Under the plan, Salceda explained, the government will aim to grow the real GDP by 6.5 to 8 percent of GDP annually until 2028, and 5 to 6 percent of GDP in infrastructure spending.
Salceda said that the goals will be institutionalized through a Joint Resolution of Congress, similar to the Joint Resolution 1, 2018 on the Military and Uniformed Personnel Salaries.
“It will commit the government to a set of specific objectives and targets, and will guide the fiscal and spending policies of Congress and the national government.”
Salceda adds that they aim to reduce national government debt-to-GDP to 52.5 percent by 2028.
To optimize growth, Salceda says that the government will identify key economic priorities, such as agricultural development, reduction of logistics and transport costs, reduction of energy costs, sound fiscal management, health, education, social protection, and government efficiency.
“The new administration will be able to benefit from CREATE, the investment liberalization laws, and the investments made by PRRD in big ticket programs and projects, the useful life of a lot of which will begin during the Marcos administration.”
“PBBM has also hired some of the best and the brightest in their respective fields. You have experts’ experts in crucial agencies such as Environment, Energy, and of course the economic team.”
Apart from the Joint Resolution on the medium-term plan, Salceda said he has also asked the incoming House leadership to immediately constitute the Committee on Rules and the House delegation to the Commission on Appointments, so that “the Cabinet could be confirmed as soon as possible, and so that they can get to work immediately.”
