The Department of Budget and Management (DBM) said enough funds have been set aside to pursue 75 infrastructure projects under its “Build, Build, Build” (BBB) program.
According to Budget Secretary Benjamin E. Diokno, the government does not have problems funding the infrastructure projects as a result of the shift to a more expansionary fiscal policy.
“As far as the infrastructure is concerned, there will be no problem with the budget. We are pursuing what we call an expansionary fiscal policy. We have increased the deficit-to-GDP ceiling from 2 [percent] to 3 percent,” Diokno said at the 43rd Philippine Business Conference and Expo at Manila Hotel on Thursday.
Earlier, the Department of Finance (DOF) said of the 75 flagship projects, around half will be finished by 2022 when President Duterte completes his term.
According to Finance Secretary Carlos G. Dominguez III, 37 projects under the BBB program should be complete by 2022, or half of the total 75 flagship projects under the program. But, while only completing half, the remaining projects should still be ongoing as not all projects can be finished immediately.
The 37 flagship projects seen completed by 2022 include the Clark airport, the Clark-to-Manila railway, as well as the Mindanao railway.
The Mindanao railway project, spanning Tagum, Davao and Digos cities, requires a budget of P31.544 billion, the Clark International Airport Expansion (Phase I) needs a budget of P12.550 billion, and the Philippine National Railways North 1 project, which is a 38-kilometer mass-transportation railway connecting Bulacan with the National Capital Region, needs a budget of P105.313 billion.
“Because of the ongoing tax reform, we expect additional fiscal space of around P500 billion a year in additional spending power. I don’t see any problem as far as the budget is concerned. Having said that, let me assure you that, despite the expansion in fiscal strategy, our debt-to-GDP ratio will continue to shrink from 40 [percent] to 37 percent,” he said.
Under the original DOF proposal, revenues totaling P157 billion will be gained from the reduction of personal-income tax, while implementing offsetting measures like the expansion of the taxpayer base, increasing the excise tax on fuel and automobile products, as well as lifting some exemptions on the value-added tax.
The government is optimistic the measure will be approved by both houses of Congress before the end of the year. The budget chief also said official development assistance was pledged to the Philippine government from both Japan and China worth around $9 billion each.
“Nine billion dollar for Japan, $9 billion for China, and it will be in stages. That’s part of the 75 projects that we already listed,” he added.