Finance Secretary Carlos Dominguez III said higher state spending on infrastructure and social services, supported by a low inflation rate and an expansionary monetary policy, will allow the government to “dramatically increase” the pace of economic growth this year.
He said the higher economic growth as achievable despite the challenges posed by the Taal Volcano eruption, the African Swine Fever and the coronavirus disease.
Dominguez said these unexpected challenges might dampen growth, but would not be significant enough to alter economic targets for this year, more so now that the 2020 national budget has been passed on time.
These resources would provide the government the tools it needs to accelerate public spending to offset the effects of the fresh challenges to the domestic economy, Dominguez said.
Positive developments in the Philippine economy, such as the government’s much-improved tax effort and the implementation of game-changing reforms, will be amplified by the passage of the remaining packages of the Comprehensive Tax Reform Program into law this year.