SONA

ECONOMY

Sound Fiscal Management

1. Tax Administration Reforms to increase revenue collection

2. Expenditure priorities and spending will be improved for covid 19 and future shocks

Productivity-enhancing investments – Ph must be an investment destination

1. Capitalizing on the corporate recovery and tax incentives

2. 2. Economic liberization law such as the public service act and foreign investments act

Ecozones – brings strategic industries such as zoning gates in high tech manufacture health and
medical care and all emerging technologies.

-facilitate economic growth outside manila

Tax System – will be adjusted in order to catch up the digital economy including the value added tax on
digital providers

Initial revenue impact – 11.7b 2023 alone

Tax compliance procedures will be simplified to promote ease of paying taxes. Presume measures to
determine undervaluation and misinvoicing of imported goods.

Through informations and technology, BOC will streamline processes

Disbursements from 2022-2023 will be maintained at above 20% GDP or 4.955TR php and 5.08 TR php
to ensure continuous implementation of priority programs. This will increae over the medium term from
5.02 TR php or 20.7%gdp - 2024 or 20.6% GDP - 2028.

Medium term fiscal strategy of the administration seeks to attain short term macro fiscal stability while
remaining supportive to the country’s economic recovery and to promote medium term fiscal
sustainability. Fiscal policy aims to bring the national government’s resources so that these will be
mobilized and utilized in order to get the maximum benefit and the high multiplier effects for our
economy.

Measurable medium term macroeconomic and fiscal objectives include based on forecast that are
consistent guiding principles and coherent strategies, policy discipline and fiscal sustainability.

6.5-7.5 real gross domestic product growth 2022

6.5-8 GDP in 2023-2028

9% or single digit poverty rate by 2028

3% national government deficit GDP ratio by 2028

Less than 60% Ng Debt GDP ratio by 2025

At least 4, 256USD income per capita – the attainment of upper middle income status by 2024.

Being submitted to congress, for its adoption and concurrence to its concurrent resolution by the senate
and house of representatives.

Once adopted, the MGFF will become an anchor to the annual spending and financing plan of the
national government and congress when preparing the annual budget and undertaking related
appropriation activities. It is therefore a forward looking document that extends beyond the traditional
three-year horizon to reach six years coinciding with the six-year coverage of the PH development plan
2023 to 2028. The MTFF also promotes transparency and credible commitment to pursue the indicated
social macroeconomic growth that optimized the government budget. Medium term growth targets and
the assumptions regarding key macroeconomic variables underpinned the medium term fiscal plan.

Inflation has accelerated in recent months due largely to significant increases in international prices of
oil and other key commodities.

Amid elevated uncertainty, in the international economic environment, revisions in the macroeconomic
assumptions incorporate these challenges and most recent economic developments leading to upward
adjustments in the following:

1. Inflation rate for 2022 to 2023

2. Foreign Exchange rate for 2023-2025
3. Goods and services imports growth for 2022

Economy is expected to grow by 6.5-7.5% as we continue to re-open the economy while considering the
recent external developments.

1st quarter – GDP saw increased in household consumption and private investment along with the robust
manufacturing industries. High vaccination rate, improved healthcare capacity, and an upward trend in
tourism and employment.

Economic growth is projected to sustain and expanded further from 6.5-8% from 2023-2028.

The average inflation for 2022 is projected from 4.5-5.5%; following the optic fuel and food prices as a
result of an ongoing Russia-UK conflict and the disrupted supply chains.

It is slightly adjusted to 2.5-4.5% in 2023 and is seen to return to the target range of 2.0-4.0% by 2024-
2028.

Dubai crude oil price is expected to settle at 90-110 USD/barrel in 2022. 80-100USD/barrel 2023, 70-
90USD/barrel as it expected to catch up and stabilize over the medium term.

51-53php / USD IN 2022 and 51-55php in 2023 due to aggressive monetary policy tightening by the US
Federal Reserve.

Exports of goods are expected to grow by 7% in 2022 and 6% in 2023-2028. On the other hand, imports
of goods are projected to grow by 18% in 2022. 6% in 2023 and 8% in 2024-2028.

PBBM instructed NEDA to coordinate agencies and work on the Ph plan to 2023-2028 and submit the
complete blueprint and progress of implementation not later than year end.
One of the main drivers for or push for growth and improvement will be in the Agricultural sector.

1. Food supply – short term and long term

a. Taas presyo at kakulangan ng supply
b. Purchasing power
c. Taasan ang produksyon
d. Tking fincancil and magbibigay utang
e. Ayuda and fuel subsidy by government

Taas na kalakal at pg-agri- to make this happen, patitibayin ang value added chain na nagsisimula sa
farmers to consumers. Pagtibayin ang coordination. Pagreaserch ng new techniques and ways sa
pagtatanin ng plants and hayop ay masusuing gagabayang ng DA. Ang mga farm inputs o
kakailanganinng magsasaka, sa pagpapalago n sakahan is iaayon according the climate change ad global
warming. Mahigpit na pagsusri ang gagawin ditto. Ang mga pautang at financial assistance ay kailangan
ng mga mambubukid at ng mga mangingisda ay magiging institution at patakaran ng PBBM
administration.

Priority:

Modernization of sakahan by using nw=ew techs for farmers. Palalawakin ang mga isaan, babuyan at
makuna. These will all be used by siyensya o science para tumaas ang produskyong agricultural. Post
production and processing will be supported by pamahalaan. Will make national network ng farm to
market road for convenience to stores. Pagbubuhay rin ng Kadiwa centers – it can be done starting now.

Agrarian reform is not only about acquisition but also support services and distribution. To assist this,
PBBM intends to issue an executive order to impose a one-year moratorium and a payment of land
amortization and interest payments. These is included in the RA 11469 or the Bayanihan to Heal as One
Act. Moratorium will give the farmers the ability to channel the developing their farms, maximizing their
capacity to produce and propel the growth of our economy.

Civil society organization also supports this, bc it will unburden the farmers of their dues and be able to
focus on improving farm productivity. Congress must also pass the law that will emancipate the agrarian
reform beneficiaries from agrarian reform debt burden thereby amending section 26 of RA6657. In this
law, the loans of agrarian reform beneficiaries with unpaid amortization interests shall be condoned.
Layunin ng batas –burahin ang hindi mabayarang utang ng mga magsasaka na benepisyaryo ng agrarian
reform. The combination/condonation/of the exixting AR loan will cover the amount of 58.125B php
benefitting 654,000 benefeciaries AR benefeciaries and involving 1.18of awarded lands. Executive Order
No. 75 Series 2019 requires that all agencies, bureau, departments and instrumentalities to turn over
agricultural lands to qualify for beneficiaries.

Present 52 HA of agricultural lands which shall now be used for distribution to the following sector,
section 40 of RA 6657 as amended. LANDLESS - veterans, surviving spouse orphans of war veterans, and
retirees of the AFP and PNP. Agricultural lands will be given to graduates of college degrees of
agriculture who are landless.
Road improvements for tourism spots

Upgrade airports and create more international airports to help decongest the bottleneck in the Manila
airport. These will be the works led by DOTr and DPWH.

DSWD – mbilis na pagtugon sa pangangailangan ng mga biktima ng calamidad at mga iba’t-ibang krisis.

Titiyakin ang maayos na koordinasyon ng DSWD at Depatment of Human Settlements and Urban
Developments upang madali ang pagtatag ng emergency enhanced programs para sa mga biktima ng
kahit anong kalamidad.

Pagtitibayin pa ang komprehensibong programang Assistance to Individuals and Crisis Situations o AICS
para maiparating ang tulong sa mga biktima.

Titiyaking malinis ang listahan ng mga benepisyaryo ng 4Ps.

Magpapatuloy ang Supplemental Feeding Program para sa mga bata sa Child development center at lalo
pang palalawakin sa taong 2023.

Solo parents – pagtitibayin ang program sa Violence against women and children

Tiyakin na sapat ang pondo sa 700 residential care centers and 7 non residential care centers para sa
vulnerable sectors at PWDs na sumisilong dito.

Health

Covid-19 and other variants

No lockdowns.

Balance health and kapakanan of the people and economy.

Pautloy ang vaccine and booster roll out para a pangkalahatang dipensa.

Mananatili ang alert level systems.

With the congress, itatatag natin ang ating sarili sa center for disease control and prevention and
vaccine institute.

Build additional health centers and hospitals. - Stronger health care services – clinics or RHUs to make it
easier for patients not to travel far from their places.

DTI talks to suppliers of generic drugs

Philippine Competition commission to take even and no cartel on lines of pharmaceutical companies.

Bukas ang merkado, bababa ang presyo ng gamot.

Education

Face to face classes

Ensure safe academic community.

School rooms – practicable