Duterte’s economic team lowers 2021 budget projection

The Development Budget Coordination Committee (DBCC) now projects a lower Philippine budget for 2021, given the expected decrease in revenue collections during the year.

In a statement on Wednesday, the DBCC said it has adopted a revised cash budget for 2021 pegged at P4.18 trillion, equivalent to 19.6% of the gross domestic product (GDP).

This is lower by around P460.0 billion when compared to the earlier projection of P4.64 trillion in December 2019

According to the DBCC, the revision took into account "the reduction in revenue estimates for FY 2021," but did not elaborate on the figures for next year.

Malacañang earlier said the 2021 budget will be mainly to support government efforts against the global pandemic.

For this year, the government now expects revenue collection at P2.61 trillion, 17.7% lower than the estimates provided in March.

The Bureau of Internal revenue (BIR) extended the statutory deadlines and timeline for the filing and submission of any document and payment of taxes after the government implemented an enhanced quarantine in Metro Manila and other high-risk areas.

Spending, on the other hand, is expected at P4.18 trillion, P12.0 billion higher than earlier announced. This factors in releases for initiatives to curb the spread of the coronavirus disease.

The administration earlier committed to spend P1.491 trillion for efforts against the coronavirus, equivalent to 8% of the GDP as of 2019.

"The DBCC (notes) that the Philippines has strong economic fundamentals and sound fiscal health," the inter-agency body said.

"At the same time, the DBCC reiterated its commitment to work with the whole of government in responding to challenges brought about by COVID-19 while helping drive a rapid economic recovery for the country," it added. — RSJ, GMA News