The government’s planned expansion of ayuda (subsidy) programs would further aid the country’s economic turnaround following the remarkable gross domestic product (GDP) growth in the third quarter.
The administration of President Ferdinand R. Marcos Jr. is eyeing the provision of PHP206.50 billion worth of subsidies and cash aid under the proposed 2023 national budget to support vulnerable sectors amid surging commodity prices brought about by global inflation.
“We welcome these developments. Despite high inflation in the third quarter of 2022, we saw growth in output in the same quarter. On the supply side, all sectors grew. At the same time, domestic demand remained robust,” Marikina City Rep. Stella Quimbo said in a news release on Sunday.
The country posted a 7.6 percent GDP growth in the third quarter, the first full quarter of the Marcos administration.
“At this point, the best defense against inflation is domestic output expansion. The government has been providing fuel and fertilizer subsidies to boost agricultural production. We should consider expanding this program to better support our producers,” she said.
The Department of Social Welfare and Development (DSWD) will get a big chunk of the budget, with PHP165.40 billion to be allocated for social assistance programs.
Other agencies like the Department of Health, Department of Labor and Employment, and Development of Agriculture will also get their slice of the ayuda pie.
Quimbo said providing assistance to affected sectors is one way for the government to boost spending.
“This enables greater consumption and well-being, especially when targeting the most vulnerable sectors. We see the relevance of providing immediate assistance to qualified Filipinos through programs such as the Assistance to Individuals in Crisis Situations of DSWD,” she noted.
Quimbo reckoned that in the long run, there is a need to improve the productivity of the domestic agricultural sector and invigorate industries to reduce the country’s exposure to volatile global prices and global supply shocks.
“Nevertheless, the most immediate solution is to increase imports to fulfill most urgent domestic needs,” she said.
“While the peso depreciation has been raised as a concern by some sectors, this can be an opportunity for exporters to boost their sales. In fact, exports grew by 13.1 percent in the third quarter. As the economy slowly reopens, we should exploit the existing advantage of the sectors that stand to gain from a weakening peso, such as tourism and export industries,” she said. (PNA)
