Peso depreciation is good for budget, says Diokno

Filipinos should not worry about a depreciating peso as this translates to higher revenue for the government, Budget Secretary Benjamin Diokno said Tuesday.

"Peso depreciation is favorable to our budget," Diokno told the members of the House committee on appropriations during the hearing for the proposed 2018 national budget.

The local currency has been trading at its weakest level in nearly 11 years against the dollar amid expectations of more interest rate hikes in the US – the world's largest economy.

"For example, a P1 deprecation will increase – not decrease – revenues by P9.5 billion and disbursements by P2.1 billion to service our foreign debt," Diokno said.

"Therefore, the net result is an additional budget balance of P7.5 billion," he said.

President Rodrigo Duterte submitted to Congress the P3.7 trillion national budget for 2018 on July 24, the same day he delivered his State of the Nation Address (SONA).

The proposed 2018 budget is equivalent to 21.6 percent of the gross domestic product and 12.4 percent higher than the 2017 budget, Diokno said. — VDS, GMA News