“By the end of the President’s term in 2020, the country’s economy would grow by 50 percent from 2016

The Philippine economy will expand by 50 percent when President Rodrigo Duterte finishes his term, the administration’s economic team said Tuesday at the deliberation on the proposed P3.757-trillion national budget for 2019 at the House of Representatives’ appropriations committee.

During the briefing by the Development Budget Coordination Committee (DBCC), Socioeconomic Planning Secretary Ernesto Pernia remained confident the country could maintain its GDP growth rate of between seven and eight percent up to 2020.

“By the end of the President’s term in 2020, the country’s economy would grow by 50 percent from 2016. The economy remains robust, with the national government’s spending on its massive infrastructure program pushing expansion,” Pernia told the congressmen in his presentation.

He said that even the International Monetary Fund (IMF) has cited the Philippines as one of the fastest growing economies in Asia next only to India.

The IMF projected the country’s real GDP to reach just under seven percent this year, surpassing the 6.7 percent growth recorded in 2017.

“Inflation is projected to gradually fall to under 4 percent in 2019 and move toward 3 percent over time. The current account deficit is projected to remain manageable, financed largely by foreign direct investment,” the international organization said.

At the same time, Pernia said of the 75 flagship projects under the “Build, Build, Build” program, 43 are already in the implementation stage, 24 in the development stage and eight are pending review.

However, the National Economic and Development Authority (NEDA) chief cautioned against delays in infrastructure projects, rising inflation and natural disasters, like the anticipated El Nino late this year, could hamper growth. Other possible risks include, security, labor market flexibility and balanced social protection, Pernia added.

“We remain vigilant and well-positioned against these downside risks to growth,” the NEDA said.

For his part, Finance Secretary Carlos Dominguez III said the government aims to raise P3.2 trillion in revenues in 2019, including about P181.4 billion from tax reform, which will help sustain its strong fiscal performance and aggressive spending plan into the medium term.

Dominguez said this revenue goal is equivalent to 16.5 percent of gross domestic product (GDP) which is an improvement from the 15.6 percent attained in 2017 and this year’s target of 16.2 percent.

The projected amount of P181.4 billion will come from the Tax Reform for Acceleration and Inclusion Act, as well as from the proposed tax amnesty program and adjustments in the Motor Vehicle Users Charge, which comprise Package 1B of the Duterte administration’s comprehensive tax reform program, Dominguez said.

Budget Secretary Benjamin Diokno described the proposed 2019 national budget, themed “Building a Bright Future for the Philippines and Its People,” as the first cash-based budget of the Philippines.

“The fiscal year 2019 budget is revolutionary, in a sense, that it is the first cash-based budget of the government,” he said.

“This budget guarantees a better and more disciplined accountable cash-based budget that will better support strong, sustainable and equitable growth. A budget that will make the Philippines better, fairer, safer, cleaner and more beautiful than what it was the year before. The budget is always for our shared future,” he added.