The Department of Budget and Management (DBM) held its first-ever Fiscal Policy Conference on November 22, 2024, at the University of Asia and the Pacific (UA&P).
An initiative led by DBM Principal Economist Dr. Joselito R. Basilio and Assistant Secretary Romeo T. Balanquit of the Budget Policy and Strategy Group, the 2024 Fiscal Policy Conference gathered the country's economic luminaries to discuss strategies on how to address current challenges and, ultimately, lead the country to a stronger fiscal future.
The panelists for the plenary discussion on “Efficient Governance Towards a Stronger Fiscal Future” were University of the Philippines (UP) Diliman School of Economics Professor Emeritus and National Scientist Dr. Raul V. Fabella; Bangko Sentral ng Pilipinas (BSP) Monetary Board Member Dr. Benjamin E. Diokno; and Ateneo de Manila University (AdMU) Professor and Brain Trust Inc. Chairperson Dr. Cielito F. Habito. The event's Master of Ceremonies was DBM Undersecretary Margaux Salcedo.
Achieving a Stronger Fiscal Future
UP Professor and National Scientist Dr. Fabella gave a comparative analysis of the investment rates of the Philippines’ neighboring countries and highlighted how they benefited from it. Dr. Fabella then raised a challenge to the current generation and Administration to foster an investment environment that will boost the country’s 22.4 percent investment rate to the standard 25 to 35 percent and ensure that the Philippines is at par with close competitors, including Vietnam’s 33.4 percent, Indonesia’s 29.4 percent, and Thailand’s 27.9 percent.
Meanwhile, Monetary Board Member Dr. Diokno discussed how the BSP ensures a whole-of-government approach by aligning its monetary policy with the Development Budget Coordination Committee (DBCC) and other government agencies’ fiscal policy. He added that the International Monetary Fund (IMF) recognized how the DBCC’s fiscal consolidation strategy, which is laid out in the country’s Medium-Term Fiscal Framework (MTFF), complements the BSP’s monetary stance and gives the Philippines sufficient policy space to address future adverse shocks.
AdMU Professor Dr. Habito underscored that the country’s government spending plays a critical role in the improved performance of the economy. He likewise emphasized three key imperatives to ensure that the Philippines maximizes its growth: enhancing public investment efficiency, boosting human capital, and strengthening climate resilience and inclusion, especially for micro-, small, and medium-sized enterprises (MSMEs).
Long-term prosperity
DBM Secretary and DBCC Chairperson Amenah F. Pangandaman ended the plenary session with her keynote speech wherein she highlighted the country’s macroeconomic gains from effective fiscal policies and structural reforms.
The Budget Chief also expressed her excitement to see all the ideas discussed in the conference come to fruition and leave a lasting impact to generations of Filipinos: “…we are confident that we will meet the country’s growth targets, laying the groundwork not only for short-term progress but also, and more importantly, for long-term prosperity.”
The event was made possible in collaboration with UA&P, led by President Dr. Winston Conrad B. Padojinog, who delivered the welcome remarks, with School of Economics Dean Dr. Peter L. U who served as plenary moderator.
The event concluded with breakout sessions on social impact and taxation, poverty and welfare, regional fiscal analyses, public reforms, public spending, and debt management and public financing.
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