MANILA - Philippine economic managers are eyeing a budget of P5.024 trillion next year, higher by 11.5 percent than the budget this year.
The Development Budget Coordination Committee said it approved the amount as the executive prepares to submit next year’s budget to Congress when it resumes session.
Of this amount, around P1.29 trillion, which is equivalent to 5.8 percent of the gross domestic product, is expected to be disbursed for the administration’s infrastructure program next year.
“The proposed 2022 national budget will continue to invest in building the country’s resilience amidst the pandemic by prioritizing funding for COVID-19 response measures, such as healthcare development and social services, while also ramping up economic growth through investments in public infrastructure,” the DBCC said.
The DBCC, which is composed of the finance, budget and economic development departments and the central bank, also said it was sticking to the 6 to 7 percent growth target for 2021, despite the surge in COVID-19 cases and the lockdowns imposed in March and April.
The DBCC meanwhile said it also approved the revisions to select economic forecasts based on the latest emerging data.
Exports of goods this year are seen growing at 10 percent, up from an earlier forecast of 8 percent “following an expected recovery in external demand,” the DBCC said.
The outlook for the growth of services exports in 2022 was raised to 7 percent from an earlier forecast of 6 percent “in line with the projected improvements in travel and BPO receipts due to the gradual reopening of the economy.”
The DBCC also said it will review the GDP growth projections after the release of the second quarter GDP figures in August.
Last May, the DBCC lowered its growth forecast for the economy to 6 to 7 percent, from an earlier projection of 6.5 to 7.5 percent, saying the arrival of new COVID-19 variants and the reimposition of stricter quarantine measures would hamper growth.