DBCC: FY 2024 budget will establish future-proof and sustainable PH economy

The House Committee on Appropriations began its review of the PHP 5.768-trillion proposed national budget for Fiscal Year (FY) 2024 in a hearing with the Development Budget Coordination Committee (DBCC) on August 10, 2023.

The proposed budget adheres to the Medium-Term Fiscal Framework (MTFF) and will prioritize 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 PHP 5.768-trillion proposed budget is equivalent to 21.7 percent of the country’s gross domestic product (GDP) and is 9.5 percent higher than the 2023 national budget of PHP 5.268 trillion.

Finance Secretary Benjamin E. Diokno gave updates on the government’s fiscal and revenue collection performances and presented sources of funding for the national budget.

Secretary Diokno thanked the House for passing their versions of the priority reforms such as excise tax on single-use plastics (SUPs), Passive Income and Financial Intermediary Taxation Act (PIFITA), Real Property Valuation and Assessment Reform (RPVAR), value-added tax (VAT) on digital service providers, and ease of paying taxes.

According to him, tax revenue is projected to increase from PHP 3.5 trillion in 2023 to PHP 6.5 trillion in 2028, while non-tax revenues are expected to grow from PHP 191 billion in 2023 to PHP 184 billion in 2028.

“I am happy to announce that we are on track to meet the MTFP [Medium-Term Fiscal Plan] targets,” Secretary Diokno said.

The DOF aims to gradually reduce net financing or new debt from PHP 1.42 trillion in 2022 to PHP 1.22 trillion in 2024, which will help bring the country’s debt-to-GDP ratio to almost below 60 percent by 2025.

“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.

He said that 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.

DBCC Chairperson