Resolution supporting govt's medium-term fiscal framework sponsored in Senate

A resolution expressing support for the government's 2022-2028 medium-term fiscal framework (MTFF) of the national government was sponsored in the Senate on Monday.

Senate finance committee chairman Sonny Angara sponsored the Concurrent Resolution No. 3 which was filed by Senate President Juan Miguel Zubiri, Senate President Pro Tempore Loren Legarda, and Majority Leader Joel Villanueva.

According to the resolution, the administration of President Ferdinand "Bongbong" Marcos Jr. designed the 2022 to 2028 MTFF to attain short-term macro-fiscal stability while remaining supportive of the economic recovery and to promote medium-term fiscal sustainability.

"The Medium-Term Fiscal Framework aims to consolidate the National Government's resources so that these are mobilized and utilized in order to gain the maximum benefit and high multiplier effects for the economy," the measure read.

"The proposed overall goal of the Marcos Administration's Medium-Term Fiscal Framework is to reinvigorate job creation and poverty reduction by steering the economy back to its high-growth path in the near term and sustain the high--but inclusive and resilient-- growth all through 2028," the lawmakers added.

The legislators noted that the recent past and the COVID-19 pandemic has beset the macroeconomic environment with challenges and a series of external shocks.

They also mentioned that inflation has accelerated in recent months due to significant increases in international prices of oil and key commodities.

"Still, the economic growth momentum remains firm as demonstrated by the strong 2022 first quarter gross domestic product (GDP) growth at 8.3 percent. However, the recovery process from the impact of the pandemic is still on-going amid elevated uncertainty in the international economic environment," the senators said.

"There is a need to adopt a whole-of-nation approach to align all economic recovery programs and measures of the National Government with the legislative priorities," they added.

With the adoption of the resolution, the  House of Representatives and the Senate committed that the legislative agenda shall be guided by the following targets set in the 2022-2028 Medium-Term Fiscal Framework:

• 6.5 to 7.5% real GDP growth in 2022; 6.5 to 8% real GDP growth annually between 2023 to 2028.

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• 9% (i.e., single digit) poverty rate by 2028
• 3% national government deficit to GDP ratio by 2028
• Less than 60% national government debt-to-GDP ratio by 2025
• At least $4,256 income per capita attainment of upper middle-income status

The measure also expresses support to the macroeconomic objectives of the MTFF and the following economic managers' proposed strategies:

• Near-term socioeconomic agenda which will continue to implement risk-managed interventions in areas of food security, transport and logistics, energy, fiscal management, health, education, social protection, and bureaucratic efficiency, to ensure the unimpeded and adequate delivery of social services, mitigate inflation pressures, accelerate economic recovery, and address economic scarring
• Medium-term socioeconomic agenda which will create more, high-quality, and green jobs for Filipinos.

The resolution likewise seeks to recognize the importance of a fiscal consolidation and resource mobilization plan, to include measures such as rightsizing of government structures and personnel, and encouraging localized investment and growth programs.

"Resolved, furthermore, to prioritize legislative measures that are consistent with the long-term socioeconomic vision as embodied in Ambisyon Natin 2040, as well as the 2022-2028 Medium-Term Fiscal Framework, for a prosperous society, consistent  with the achievement of macroeconomic stability and inclusive economic development, while continuing to allocate resources for health, disaster risk management, food and social security, digital economy, local government support, private sector participation and growth-inducing expenditures," the measure read.

Apart from the commitment to support the administration's fiscal framework, the resolution provides for the review and updating of the MTFF in three years or in 2025 to "reflect current economic conditions and developments."—AOL, GMA News