Proposed FY 2024 National Budget will lower debt, address inflation

During their sponsorship speeches, both representatives emphasized the significance of the budget bill, urging their fellow lawmakers to take proactive steps and join the Committee on Appropriations in crafting the best version of the Php 5.768 trillion budget for next year. 

“Let us not merely approve a budget. Let us craft a legacy,” Quimbo said. 

The Development Budget Coordination Committee (DBCC), composed of Department of Budget and Management Secretary Amenah F. Pangandaman, Department of Finance Secretary Benjamin E. Diokno, National Economic and Development Authority Secretary Arsenio M. Balisacan, and Bangko Sentral ng Pilipinas Deputy Governor Francisco G. Dakila Jr., served as resource persons and answered queries on plans to lower the country's debt, strategies to manage inflation, and programs to promote economic growth. 

Lower debt 

During the plenary debates, the DBCC emphasized that the proposed FY 2024 national budget was crafted to achieve the targets of the Medium-Term Fiscal Framework (MTFF) which includes bringing down the debt-to-GDP ratio to less than 60.0 percent by 2025. As such, the 61.0 percent ratio as of the end of June remains in the median of comparable countries in the ASEAN and East Asia, and among other emerging market economies.

“The international standard as of the moment is 70 percent and our debt-to-GDP ratio is also lower compared to other countries such as Malaysia which is at 61 percent, Japan at 261 percent, Singapore at 134 percent, and China at 77 percent. We are in a comfortable situation. In addition, the DBCC has assured us that the debt-to-GDP ratio is projected to settle at 60.0 percent by 2025. And this is the assumption we are adopting for our General Appropriations Bill,”  Quimbo emphasized. 

Representative Quimbo likewise mentioned that the DBCC has set out a clear strategy to finance the country’s debt which includes prioritizing the domestic market over external sources to protect the country against foreign exchange risks. 

Addressing inflation

It was further highlighted how the DBCC calibrated the proposed FY 2024 national budget to prioritize programs and projects that address inflation and