THE Department of Budget and Management (DBM) said it wants to keep disbursements above 20% of gross domestic product (GDP) to ensure the government has the resources to spend ready at hand.
“At the DBM, we will sustain government disbursements at above 20% of gross domestic product on average as we continue to prioritize expenditures,” Budget Secretary Amenah F. Pangandaman said.
The disbursement rate is among various initiatives to ensure the government meets its spending goals while keeping debt manageable, the DBM said in a statement on Wednesday.
“For fiscal consolidation to remain on track in the long term, we are also working on public spending efficiency,” Ms. Pangandaman said.
She said Executive Order No. 29 will strengthen the implementation of the Integrated Financial Management Information System in government agencies and lay the groundwork for reforms such as the budget modernization bill.
The DBM is also “working on the draft guidelines for the rationalization of government programs and projects that are targeted to be included in the FY 2025 National Budget Call.”
“The government’s fiscal consolidation strategy, which supports the administration’s socioeconomic development agenda, will be underpinned by increasing revenue effort through tax policy and tax administration reforms, as well as declining deficit trajectory over the medium term,” she added.
The government is aiming to bring down its debt-to-GDP ratio to below 60% by 2025 and cut its deficit-to-GDP ratio to 3% by 2028.
The government set its deficit ceiling at P1.499 trillion this year, equivalent to 6.1% of GDP. In the first eight months of the year, the budget deficit narrowed 12.06% to P732.5 billion.
Ms. Pangandaman also noted that the government is also working on amending procurement law.
“Our proposed procurement reforms include the implementation of the Modernized Philippine Government Electronic Procurement System (MPhilGEPS), e-Marketplace and the adoption of a Green Public Procurement Strategy,” she added. — Luisa Maria Jacinta C. Jocson