Finance Secretary Benjamin Diokno (file photo)
MANILA – The proposed 2024 budget will help establish a future-proof and sustainable Philippine economy, Department of Finance (DOF) Secretary Benjamin Diokno on Thursday said.
The House Committee on Appropriations began its review of the PHP5.768-trillion proposed national budget for fiscal year (FY) 2024 in a hearing with the Development Budget Coordination Committee (DBCC).
During the hearing, Diokno provided updates on the government’s fiscal and revenue collection performances and presented sources of funding for the national budget.
He said tax revenue is projected to increase from PHP3.5 trillion in 2023 to PHP6.5 trillion in 2028, while non-tax revenues are expected to decline from PHP191 billion in 2023 to PHP184 billion in 2028.
"Non-tax revenues include privatization proceeds. The assumption is that proceeds from privatization would decline overtime," Diokno told the Philippine News Agency.
Diokno said the DOF aims to gradually reduce net financing or new debt from PHP1.42 trillion in 2022 to PHP1.22 trillion in 2024, which will help bring the country’s debt-to-gross domestic product (GDP) ratio to almost below 60 percent by 2025.
“I am happy to announce that we are on track to meet the MTFP [Medium-Term Fiscal Plan] targets,” he added. “Allow me to assure you, the honorable members of this chamber, that the Department of Finance and the economic team are working hard in support of the President’s agenda of attaining a future-proof and sustainable economy through the 2024 proposed budget.”
Diokno said the economic team will work closely with the House in pushing for appropriate and timely policies to make the Philippines one of the fastest rising economies in the region.
The PHP5.768-trillion proposed budget is equivalent to 21.7 percent of the country’s GDP.
It is 9.5 percent higher than the 2023 national budget of PHP 5.268 trillion.
By general expense class, maintenance and other operating expenses (MOOE) made up the bulk of the proposed budget at PHP2.156 trillion, or 37.4 percent of the total budget.
This will be used to support the operating requirements of departments for the implementation of social programs, local government units (LGUs), and government corporations.
Meanwhile, the proposed budget for personnel services amounted to PHP1.695 trillion; capital outlays, PHP1.246 trillion; and financial expenses, PHP670.5 billion.
The proposed budget adheres to the Medium-Term Fiscal Framework (MTFF) and prioritizes expenditures in line with President Ferdinand R. Marcos Jr.’s 8-Point Socioeconomic Agenda and the objectives specified under the Philippine Development Plan (PDP) 2023-2028.
The House of Representatives targets to approve the proposed national budget for FY 2024 by end-September. (PNA)
