The Department of Budget and Management on Saturday assured the public of the national government’s transparent utilization of the PHP5.768 trillion budget for 2024.
The DBM shall continue to ensure “sound, efficient, and effective management and utilization of government resources to achieve our country’s development goals,” Secretary Amenah Pangandaman said in a statement.
To address concerns about fiscal prudence, Pangandaman said the 2024 national budget would continue to prioritize responsible debt management, while supporting the country’s post-pandemic recovery which is guided by the Medium-Term Fiscal Framework (MTFF).
She said there is a projected decrease in the deficit from 6.1 percent in 2023 to a target of slightly above 5 percent in 2024, stressing that it demonstrates the Marcos administration’s commitment to fiscal consolidation over the long term.
“Our MTFF started with a very high deficit, exceeding 7 percent during the pandemic… We’re making steady progress, aiming to bring it down to 3 percent by 2028. Reducing the deficit translates to less borrowing, but responsible borrowing for productive purposes remains crucial,” Pangandaman said.
Pangandaman also echoed President Ferdinand R. Marcos Jr.’s commitment to leaving a legacy that is “free of burdensome debt for future generations.”
“We are one with the President in ensuring that we honor the taxpayers who make the national budget possible. As what the President said, ‘Debt is not the kind of inheritance we want for those who will come after us. Good fiscal stewardship imposes upon us discipline not to be led into the temptation of bloating what we owe,’” she said.
Pangandaman also clarified that the unprogrammed funds in the 2024 General Appropriations Act are “standby appropriations” distinct from the approved government fiscal program.
She said the unprogrammed funds for next will year would help the government address unforeseen expenditures and prioritize essential programs and projects.
She noted that unprogrammed appropriations of the 2024 budget has built-in safeguards to prevent unconstitutional spending.
The unprogrammed funds are not automatically allocated and can only be released, if several funding conditions are met, such as when the government, through the Bureau of the Treasury, is able to collect excess revenue or income beyond its initial projection, or should foreign or approved financial loans or grants proceeds are realized.
Should there be excess revenues that may trigger the availability of the unprogrammed funds, government agencies are required to submit necessary requirements before given access to the standby fund to ensure that spending stays within legal limits. (PNA)
Photo credit: Official Gazette