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Budget Secretary Benjamin Diokno says that the Supreme Court's decision that local governments should have shares in all tax collections will restrain the budget [national] & # 39;
ACHIEVEMENTS. Budget Minister Benjamin Diokno speaks at the pre-SONA forum on July 11, 2018. Photo of the Department of Budget and Management
MANILA, Philippines – Budget Secretary Benjamin Diokno said that repaying the share Taxes The decision of the Court (SC) can lead to an "unmanageable" public sector deficit.
The SC ruled that the "fair share" of local governments would come from "all national and not only national taxes." [19659006Loosefudgethepresentedthepublicpublic'spainability"toexpandupto6%"Dioknoaditthattheydidn'thavecancethefinancecarlsnotvuladecision
"The deficit will reach up to 6% .We have not seen the decision, but This would have an effect on the deficit.Call this unmanageable public sector deficit, "Diokno said Wednesday, July 11, on the sidelines of the pre-state Nation's forum address.
The estimate of economic managers of 6% is double the current budget deficit
The deficit of the public sector is currently 478.1 billion pesos, or 3% of the product gross domestic product (GDP), which is the sum of all goods and services produced in an economy during a given period.
Under the administration of President Benigno Aquino III, economic managers have striven to keep the deficit below 2% of GDP over its last three years in office. The higher deficit of the Duterte administration aims to boost spending and fund the Build, Build, Build infrastructure program.
Diokno said the repayment would result in a bad credit rating for the government and a budget cut in the government's infrastructure program.
"The decision is good for [the local governments] but it will limit the budget [national] our credit rating will drop, international confidence will decrease and we must significantly reduce our program of construction, construction, construction," Diokno said in a mixture of English and Filipino.
In a decision of July 4, the SC decided on a 6-year petition filed by the then representative, now the governor of Batangas, Hermilando Mandanas. The petition declared that the national government did not release 500 million pesos of "just shares" of national taxes from 1992 to 2012.
Mandanas urged the national government on Thursday to recast National Budget 2019 that Malacañang endorsed to Congress to implement the decision. – Rappler.com
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