Two weeks ago, the Senate commenced discussions on the proposed 2024 budget of the Marcos administration. This budget stands at a remarkable P5.768 trillion, which is 9.5 percent higher than this year’s budget of P5.268 trillion. The purpose of this budget increase, according to the Department of Budget and Management (DBM), is to “future-proof” the country’s high growth trajectory, aiming to achieve upper middle-income status by 2025.
Last week, Sonny Africa, the executive director of the alternative economic think tank Ibon Foundation, published a three-part analysis of President Marcos’ proposed budget for 2024. Africa critically labeled it as “a budget badly made.” He argues that the budget prioritizes the wealthy rather than the poor. Instead of allocating resources to alleviate the dire circumstances of over 20 million impoverished Filipinos, the focus is on large-scale infrastructure projects and debt servicing. These individuals are those struggling to meet their basic food and nonfood needs due to the recent spikes in basic food prices.
Africa emphasizes the significance of a national budget in determining policy priorities that can drive growth, develop the economy, and improve the conditions of the people. Unfortunately, the proposed 2024 budget fails to reflect these goals. Instead, it favors special interest groups such as big corporations, creditors, political pork barrel, military, and police, while leaving millions of Filipinos behind. The three sectors with the highest shares in the proposed budget are the Department of Public Works and Highways, the Department of Education (DepEd), and debt servicing. DepEd, headed by Vice President Sara Duterte, will receive an additional P150 million in confidential funds.
Prioritizing infrastructure projects is not inherently wrong since they require significant capital investment. However, according to Africa, their long-term impact pales in comparison to the direct benefits of social welfare and protection programs for the poor, which are crucial for sustainable economic growth. Additionally, complementing these projects with initiatives to modernize the agricultural and industrial sectors is essential. Otherwise, the focus on improving lives through this “badly made” budget will only perpetuate the low-value-added and nonindustrialized structure of the economy that has persisted for decades.
Although I am not an economics expert like Africa, I believe that budgets can only be successfully executed if we have sufficient financial capacity to support them. This requires a prudent use of financial resources based on the principle of spending within our means. Overspending leads us into a cyclical debt trap. To ensure a future of sustainable economic health, it is vital to have substantial savings to rely on during economic crises or family emergencies. Our national budget should be designed with this simple principle in mind. Unfortunately, our Chief Executive emphasizes future-proofing and spurring growth while a considerable portion of the budget is devoted to debt servicing.
In less than two years, the government has accumulated an additional P51.31 trillion in debt, resulting in a record-high national debt of P14.15 trillion as of June 2023. Undoubtedly, a significant portion of this debt did not go toward pro-poor programs but rather to pay off existing debts. This is an economically unhealthy practice and evidence of reckless spending.
Perhaps it is time to question whether it truly is the national budget or a budget designed to secure the lives of those in leadership positions who already enjoy opulent lifestyles. The supposed pro-poor nature of the budget is mere empty talk.
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