PH cuts GDP growth target for 2016, 2017

24/7 construction

Although the Duterte administration lowered its GDP growth targets, the country's economic outlook remains one of the highest in the region.

The economic leaders remain optimistic of the growth potential of the domestic economy despite global weak forecast and recent market developments in the US, European Union, and the Association of Southeast Asian Nations (ASEAN).

Asked how the administration will manage to sustain the economic growth, Diokno said one of their plans is to implement 24/7 construction for all major infrastructure projects in Metro Manila, Cebu, and Davao.

"We are considering 24/7 construction for all major Metro Manila projects and maybe projects in Cebu and Davao. Don't be surprised if constructions are going on in the middle of the night," Diokno said.

The DBCC members said they are increasing the infrastructure program in 2017 to 5.2% of GDP.

"We're playing a lot of catch-up here. I think we have to realize that we have to make more roads and fix them and that is going to cost few problems in the meantime. Everybody has to cooperate and there's no magic wand here," Dominguez, the country's finance chief, said.

After the DBCC press con, some Cabinet members are in the other room for an economic meeting. @rapplerdotcom — Chrisee V. Dela Paz (@chriseedelapaz) July 5, 2016


Proposed 2017 budget, other targets

The chief of the Department of Budget and Management said the economic team will submit a proposed 2017 national budget of P3.3 trillion to Congress on August 15 this year.

For the year, Dominguez said the expenditures target of about P3 trillion will be retained, mainly because of the need to sustain spending on public goods and services.

The finance chief added that revenue in 2016 is seen to reach P2.573 trillion.

But for the succeeding years, "the DBCC expects revenue to reach P2.975 trillion and P3 trillion," he said.

The lower revenue goal is because of the expected drop in Bureau of Customs and Bureau of Internal Revenue collections, Diokno said.

As for poverty reduction, Dominguez said the Duterte administration targets to reduce poverty rate to about 16% of the population by 2022, from the current figure of about 25%. –