Ladies and gentlemen, good morning.

First, I would like to thank the Philippine Embassy, the UK Embassy in the Philippines, MP Richard Graham—and I was told that we have Filipino scholars here in UK and London, welcome! I hope you guys did not skip your class—UBS, and our partners here for hosting us and giving us this opportunity to share updates on the country's robust economic performance and investment opportunities, and on my part, our Priority Expenditures.

Today, we bring you warm greetings from the Philippines and also good news: in spite of global headwinds and the challenges of economic recovery after the pandemic lockdowns, we are on track with our Agenda for Prosperity.

However, we want to ensure that as we pursue our Agenda for Prosperity, our economic transformation is towards inclusivity and sustainability. With that in mind, our priority expenditures support the 8-Point Socioeconomic Agenda and will also cater to the objectives under the Philippine Development Plan 2023 to 2028.

To give you an overview of the Fiscal Year 2023 General Appropriations Act, the National Budget of the Philippines amounts to Php 5.268 trillion or USD 94.82 billion. It is a 4.9 percent increase from 2022, and is 22.2 percent of our GDP. 

As we commit to pursuing the 8-Point Socioeconomic Agenda while targeting growth, the bulk of the proposed budget will go to the Social Services sector, getting an allocation of around Php 2.0 trillion or 38 percent of the national budget.

We have maintained Education as our number one priority, which is also mandated by our Constitution. On top of this, we have given the Health Department one of the biggest increases in the budget, with the commitment to strengthen our healthcare system following lessons from the pandemic, as well as the mandate of President Ferdinand R. Marcos Jr. to expand access to affordable and inclusive healthcare nationwide. We are also strengthening social protection with a budget of almost Php 200 billion for the social welfare and development department to ensure that no one is left behind.

We are determined to make agriculture a driving force for growth and the source of our food security. Hence, to improve agricultural productivity and re-establish the Philippines as a top exporter of agricultural products, the agriculture department and its attached agencies received a budgetary boost of more than 40 percent from last year’s budget.

We are also determined to maintain infrastructure spending at 5 to 6 percent of GDP from now until 2028. With this in mind, we are continuing the Build, Build, Build Program of the previous administration, and we will now call it Build, Better, More (BBM). In line with this program, the Department of Public Works and Highways has received the second highest allocation in the budget, equivalent to 16.1 percent. Meanwhile, to improve our transportation system, the Department of Transportation has been given a 40 percent increase from its 2022 budget.

To make the Philippines an investment destination, we need to create an environment that enables economic growth. Hence, we are keen on building not just public and social infrastructure but also digital infrastructure. We are following a Digital Roadmap that will expand and improve our digital infrastructure to strengthen intergovernmental connection and enhance transparency to the public sector. 

Acknowledging the importance of sustainable economic growth, the government has also invested heavily in renewable energy infrastructure and alternative resources that will contribute to sustainable development. For 2023, the budget for climate change adaptation and mitigation is significantly higher by around 60 percent from previous year’s allocation.

We are also pursuing legislation for budget reforms that would safeguard the integrity of our budget process. Foremost of which is the Progressive Budgeting for Better and Modernized Governance or the PBBM Governance Bill which seeks to institutionalize key Public Financial Management reforms including the cash budgeting system. 

We are striving to build an agile, efficient, and more responsive government workforce through the National Government Rightsizing Program. This will minimize and eliminate overlaps and duplication of functions, and reduce costs, processing time, and other regulatory requirements in government transactions. 

We are also pursuing a Green Public Procurement Roadmap wherein the government will procure common-use supplies and equipment items with green specifications.

As you can see, the Philippines is now not just open for business but we mean business.

We not only meet but surpass our economic targets.

We are on track with our Agenda for Prosperity and I am confident that as long as we stay the path, we will also achieve our targets of single-digit poverty levels and upper middle-income class status as planned.

The time to invest in the Philippines is now. We have a hardworking administration, we have high economic growth, we have peace in Mindanao, and most of all, we have sunshine all year-round.

So we look forward to another BBM: the British Building More … in the Philippines.

Thank you so much. Mabuhay. Assalamu alaikum.

A pleasant morning to all. Happy New Year. This is the first joint meeting of the Government Procurement Policy Board (GPPB) and the Inter-Agency Technical Working Group (IATWG) this year and I would like, first and foremost, to say THANK YOU. The past year was a transition period for many of us and yet we managed to deliver above and beyond what is expected of us. Our GDP growth was 7.6 for the entire year. Congratulations. I am confident that this year, we will achieve so much more. Dahil mahusay kayo at tapat sa pagseserbisyo.

Our main discussions today are brought about by two things: the soaring prices of commodities and the call for adaptive measures in order for the government to improve public service delivery. Thinking about it, we could say that our first meeting comes immediately with challenges. We will formulate guidelines on the price escalation of infrastructure projects due to inflation and discuss possible amendments in the IRR of R. A. No. 9184 or the Government Procurement Reform Act. Both topics have huge implications for the nation and our people.

On one hand, we have the government target of 5.0 to 6.0 percent of GDP for infrastructure spending as defined in our Medium-Term Fiscal Framework. And we know how these projects define the daily lives of our fellowmen who commute or drive to work, and businesses that need to transport their raw materials and products on time.

On the other hand, we have a procurement system that determines whether or not we will have savings on our MOOE and Capital Outlays and of course, affects the day-to-day processes in every department.

I want us to have this perspective today—that every decision we make and every action we take should serve the best interest of the public we are sworn to serve.

To put simply, I request that we all give our best throughout this meeting. Feel free to share your suggestions, opinions, disagreement, and contentions in a constructive manner. We will make sure that your insights are heard and discussed. Although the upcoming topics are challenging, I know that with proactive participation and willingness to exchange ideas, we will accomplish not only the task at hand, but also our ultimate goal of serving the Filipino people and providing them the quality of life they deserve and desire.

Again, thank you for your service to the country. Mabuhay po kayong lahat! Assalamu alaikum.

A pleasant day to my fellow public servants gathered here today for another round of budget preparations. As we start the new year, we are also given this brand-new opportunity to be of service to the Filipino people.

Just a month ago, on December 16, 2022, the FY 2023 National Budget was signed into law by President Ferdinand R. Marcos Jr. This is historically the fastest signing of the General Appropriations Act and this milestone would not have been possible without your contribution.

Preparing the FY 2023 budget has been challenging to say the least, as we trudged through a crucial transition period of post-pandemic recovery while battling various inflationary pressures and external conflicts. Still, we did what we were called to do, made the most out of the limited fiscal space that we have, and crafted a national budget that is responsive to the most immediate and pressing needs of every individual, family, and entity in the country.

Thankfully, for Fiscal Year 2024, we have a blueprint by which we can achieve our socioeconomic development goals—the Medium-Term Fiscal Framework or MTFF. With clear macroeconomic objectives that will steer the economy back to its high-growth trajectory and promote medium-term fiscal sustainability, we will continue to implement risk-managed interventions in the areas of food security, transport and logistics, energy, health, education, social protection, bureaucratic efficiency, and fiscal management, among others.

As we have emphasized in our National Budget Memorandum No. 145 and Corporate Budget Memorandum No. 45, the FY 2024 budget proposal should incorporate the priorities and policy directions of the Marcos Jr. Administration as embodied in the 8-point Socioeconomic Agenda and the Philippine Development Plan (PDP) 2023-2028. These are aimed at achieving economic and social transformation for a prosperous, inclusive, and resilient society.

We will continue to prioritize infrastructure development as we Build, Better, More—while continuing to support areas that are the poorest, that are lagging, and those that are vulnerable to climate change and natural disasters.

Of course, our Local Government Units (LGUs) should not be left behind so we will continue to provide funds for their capacity building so they can better assume their devolved functions and services.

But given the competing demands of government programs against a backdrop of limited resources, we will ensure that only implementation-ready agency proposals are included in the FY 2024 National Budget. As such, the agencies' budget proposals should contain concrete program plans and designs so we can manage our budget efficiently and effectively.

This, in fact, is the key feature of our Cash Budgeting System or CBS which will be insitutionalized by the Progressive Budgeting for Better and Modernized Governance or the PBBM Governance Bill. We will likewise continue our pursuit of digital transformation, including the adoption of the Integrated Financial Management Information Systems to enhance the Budget and Treasury Management System or BTMS—one of our major reforms as part of our digital transformation roadmap.

Further, we will continue to support the Administration’s goal of ensuring sustainable management and use of natural resources by 2030. Our Government Procurement Policy Board will spearhead the implementation of the Green Public Procurement or the GPP Roadmap to integrate green choices in public procurement.

As always, we will also look into the agencies' previous year budget utilization and performance as part of its evaluation process.

With all these guiding frameworks, we will consolidate and optimize the resources of the national government to gain its maximum benefit and multiplier effects for the economy.

Finally, let us continue to regain public trust and confidence by adopting our existing reforms for greater budget transparency, openness, accountability, and reliability. These include, among others, the 2-Tier Budgeting Approach; the disaggregation of lump-sum amounts within the agency-specific budgets; a well-functioning, results-based and credible monitoring and evaluation system; and the Open Government Partnership (OGP) to strengthen participation of civil society organizations and ensure sustainability of budget and governance reforms.

I will not take too much of your time as you have a long day—and maybe even night—ahead of you. As a final remark, I would like to salute all our civil servants from the DBM, the national government agencies, and GOCCs, for your unwavering commitment and dedication to serve the people. You are all instrumental in furthering—and finally achieving—our pursuit of economic transformation.

Assalamu alaikum. Maraming salamat at mabuhay tayong lahat.

Ladies and gentlemen, good morning.

First, I would like to thank the Philippine Embassy, Deutsch Bank, and other partners for hosting us and allowing us to share our insights on the Philippine economy, the FY 2023 national budget, and important updates on the structural reform initiatives of the Marcos Jr. administration in pursuit of its Agenda for Prosperity.

Let me also share a common observation that we’ve seen the past days: optimism about the Philippine economy. This is not without basis. Businesses, consumers, and the government all agree that the Philippines is on track towards strong recovery. But we are also aware of the continued external challenges to recovery and economic transformation. Hence, we have prepared and designed our policies and programs to address these.

Let me share with you an overview of the Fiscal Year 2023 General Appropriations Act. The National Budget of the Philippines amounts to Php 5.268 trillion or USD 94.82 billion. It is 4.9 percent higher than last year's budget, and is equivalent to 22.2 percent of the country's GDP.

Framed by the 8-Point Socioeconomic Agenda of President Ferdinand R. Marcos Jr. and supporting the Philippine Development Plan (PDP) 2023 to 2028, this budget will lay the groundwork for our agenda for prosperity: to build an inclusive and sustainable economy where no Filipino is left behind.

We are determined to ensure food security to improve agricultural productivity and the re-establishment of the Philippines as a top exporter of agricultural products. Thus, the agriculture budget has received a boost of more than 40 percent of its previous year’s allocation, with Php 173.6 billion (USD 3.12 billion). Of this amount, over Php 42.0 billion (USD 771.1 million) is set to improve the production of agricultural commodities including rice. There are also other programs for farm-to-market and farm-to-mill roads, as well as agricultural machinery, equipment, and facilities.

To make the Philippines an investment destination, we need to create the environment for it. Hence, we are keen on building better and more public infrastructure, digital infrastructure, and social infrastructure. The budget prioritizes infrastructure as a vital element in economic transformation. To achieve this, the government is projecting infrastructure spending to remain between 5.0 percent to 6.0 percent of GDP over the next six years. And to improve transportation in the Philippines in line with the Administration’s Build, Better, More Program, the Department of Transportation is allotted USD 1.91 billion. This represents a 40 percent increase from its previous year’s allocation.

Meanwhile, as we acknowledge the importance of sustainable economic growth, the government has also invested in renewable energy infrastructure and alternative resources that will contribute to sustainable development. Thus, the Department of Energy will receive USD 6.0 million for its Renewable Energy Development Program, Energy Efficiency and Conservation Program, and Alternative Fuels and Technologies Program.

Furthermore, mobilizing resources that enhance resilience and promote low-carbon development is a key agenda of the government. In pursuit of this, the budget for climate change adaptation and mitigation may reach Php 453.11 billion or USD 8.16 billion in 2023, equivalent to 8.6 percent of the total budget. This is significantly higher by 56.4 percent than the previous year’s allocation.

To fully attain the PDP objective to foster enabling environments encompassing institutions, public investments are being made to expand and improve digital infrastructure to ensure a technology-enabled workforce and improve governance.

As mandated by the Philippine Constitution, education remains our number one budget priority with an allocation of USD 16.13 billion.

And in line with the commitment to strengthen our healthcare system following the pandemic, the Health Department has one of the biggest increases in the budget with an allocation of USD 5.66 billion.

To ensure that our Agenda for Prosperity covers every Filipino family, the national budget also prioritizes the reinforcement of social protection with some USD 3.59 billion.

The Budget Department wants to ensure the longevity and continuity of all these programs, so we have set in place legislative and budget reforms to safeguard the integrity of our budget process. Foremost of which is the Progressive Budgeting for Better and Modernized Governance or the PBBM Governance Bill which seeks to institutionalize key Public Financial Management (PFM) reforms. This will be a landmark law that will uphold fiscal responsibility principles, institutionalize cash budgeting system, strengthen oversight of our Bureau of the Treasury (BTr), and strengthen Congress’s power of the purse while embedding public participation in our decision-making.

Through these efforts and initiatives, we aspire to provide every Filipino a fighting chance to manage life’s uncertainties and achieve their full potential. We are working towards economic transformation that would be felt by every individual, family, and business in the Philippines.

We hope you will join us in our journey towards economic transformation by investing in the Philippines. On our part, we are providing investors with a conducive regulatory environment to make your time and investments in the Philippines worthwhile. Let us be partners in pursuit of economic transformation and our agenda for prosperity.

Maraming salamat, thank you, and mabuhay!

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