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STATE economic directors rejected the International Monetary Fund's (IMF) recommendation for the government to reduce its budget deficit ceiling, citing the need to accelerate implementation large infrastructure projects.
A joint statement issued Thursday by the Government's Office of Investor Relations quotes Finance Secretary Carlos G. Dominguez III saying that the proposal to reduce the budget deficit to 2.4% of GDP) In 2018 and 2019, the concerns inflationists were "difficult advice".
"With deliberate improvements to our process, projects are on full swing to realize the anticipated benefits in a timely manner," Dominguez said. recognize that adjustments may be necessary to adequately respond to the changing internal and external macroeconomic landscape, "he added.
It should be borne in mind that the DBCC, at its 173rd meeting on 2 July 1945 , capped the government's budget deficit, capped at 3% of GDP this year, and increased to 3.2% for 2019 from 3% in 2016 and 2017, with the aim of speeding up the sending of its Build Build Build infrastructure program of 8,000 billion guilders.
is scheduled to return to the level of three percent next year, until 2022, while the dynamics of public infrastructure spending stabilizes, economic managers said:
The 2.4% of the budget deficit recommended by the IMF is stable.% of deficit recorded in 2017.
Inflation has reached an average of 4.3% in the last half of the year, after 5.2% in June, above target of 2-4% of the central bank. The central bank predicts that inflation will reach 4.5% this year and will return to the target next year.
The IMF forecasts that GDP growth in the Philippines will reach 6.7 percent in 2018 and 2019, stable compared to 2017. It also expects Nestor A. Espenilla, Jr., governor Pilipinas Islands of Bangko Sentral, reiterated the central bank's commitment to fight inflation after raising its key rates by 25 basis points during its meetings in May and June. He pointed out that "strong" political adjustments are expected when the Monetary Council will meet to review the policy on August 9, a few hours after the second quarter GDP report and two days after the report on inflation. July
. stands firm in its commitment to price and financial stability. High inflation this year was mainly due to supply factors. However, to cope with potential second-round effects, the BSP has seen fit to raise key rates in May and June last year. We are also ready to take aggressive action to anchor inflation expectations and respond to any brewery pressure on demand, "said Mr. Espenilla
." The Government's Expenditure Policy aggressive in infrastructure and human capital development will not be relaxed, while maintaining fiscal prudence, in line with the vision of President Rodrigo Duterte to reduce the incidence of poverty to 14% and transform the Economy into a superior middle class by 2022, "said Dominguez.
Budget Secretary Benjamin E. Diokno said: "We will submit a thorough review of the IMF proposal. Reducing the budget deficit to 2.4% of GDP is achievable. However, the abandonment of some of our major infrastructure projects is something we are not comfortable with. "
" We are already making significant progress in our goal of accelerating infrastructure development to strengthen the country's competitiveness and improve the quality of life of Filipinos. We do not intend to go back, "he added.
million. Diokno ensured that the fiscal policy of the administration "will remain cautious, sustainable and will support our investments in public infrastructure and the development of human capital".
Ernesto M. Pernia, Secretary of Socio-Economic Planning, said: "We are determined to" We are also closely watching our growing trade deficit which is largely caused by substantial imports of capital goods which should be enhance growth potential, thereby supporting economic development that reduces poverty, "he added. "In addition, we are vigorously implementing our export development plan." – Elijah Joseph C. Tubayan
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