New fiscal targets and the anti-agricultural economic sabotage law

Three topics here and we go straight to the numbers and facts.

- Bienvenido S. Oplas Jr.

Three topics here and we go straight to the numbers and facts.

DBCC new fiscal targets Last Monday, Dec. 2, the Development Budget Coordination Committee (DBCC) released their updated medium-term, 2024-2028 macroeconomic growth and fiscal targets. The DBCC is composed of DOF Secretary Ralph G. Recto, NEDA Secretary Arsenio M. Balisacan, DBM Secretary Amenah F. Pangandaman, and BSP Governor Eli Remolona.

The revenue targets are P4.38 trillion in 2024 or 16.5 percent of GDP, to P6.25 trillion in 2028 or 17 percent of GDP.

The disbursement or spending targets are P5.91 trillion in 2024 or 22.3 percent of GDP, to P7.62 trillion in 2028 or 20.7 percent of GDP.

The budget deficit targets are P1.52 trillion in 2024 or -5.7 percent of GDP, to P1.37 trillion in 2028 or -3.7 percent of GDP.

In 2023, revenues were P3.82 trillion or 15.7 of GDP, disbursements were P5.34 trillion or 21.9 percent of GDP, and deficit was P1.51 trillion or -6.2 percent of GDP. So there were improvements in 2024 over 2023—higher revenues, lower spending, and lower deficit as percent of GDP. And things would further improve on the way to 2028.

As an advocate of small government, small taxes and bureaucracies, I find the updated fiscal targets still high, like a deficit higher than -3 percent of GDP by 2028. But the behavior of many agencies both national and local, the behavior of the public themselves seeking more subsidies and freebies even without economic, finance or health crisis, make drastic reduction in spending, deficit and borrowings highly improbable.