A research group in the House of Representatives has raised concerns about an uncontrolled increase in the national budget.flation if the government of President Ferdinand R. Marcos, Jr. fails to rein in spending.
According to a recent report by the Congressional Policy and Budget Research Department (CPBRD), the current level of inflation and the continued inflationary pressure from the past three years pose significant risks for maintaining a high level of public spending. These risks are not only considerable, but also increasing over time.
“The past twelve years have highlighted the importance of creating a rule-based system to regulate monetary and fiscal policies in order to control inflation, as evidenced by the correlation between government spending and inflation. This emphasizes the need for urgency in developing such a framework.”
The CPBRD reported that government expenditures have consistently risen since 2010, suggesting that the government does not take inflation into account when budgeting.
‘s mission is to manage the country’s finances and develop sound fiscal policies.
The main goal of the Treasury Bureau is to oversee the management of the nation’s financial resources and create effective fiscal strategies.
According to the report, the government’s expenditures were P1.52 trillion in 2010, P1.56 trillion in 2011, P1.78 trillion in 2012, P1.88 trillion in 2013, and P1.98 trillion in 2014.
In 2015, the amount spent was P2.23 trillion, followed by P2.55 trillion in 2016, P2.82 trillion in 2017, P3.41 trillion in 2018, P3.80 trillion in 2019, P4.23 trillion in 2020, and P4.68 trillion in 2021.
Government spending in 2022 saw a rise of 10.35%, reaching P5.16 trillion.
According to the CPBRD, the government is at risk of worsening inflation and making economic downturns more severe.
th consecutive month of increases
The rate of inflation for August was 5.3%, marking the 17th month in a row with an upward trend.th
This is the nth month in a row where inflation has exceeded the BSP’s target range of 2-4%.
To ensure responsible expenditure without the potential for inflation, the government must encourage effective allocation of resources and operational effectiveness.fi
Increasing efficiency by investing in sectors that have the greatest impact on overall economic growth.
A group of guidelines that requires the government to control its spending when inflation increases, such as during times of economic growth, is likely to have positive effects.fi
The CPBRD stated that it is crucial in controlling inflationary pressure overall.
ficult to enforce rules.”
“Enforced regulations would complicate the enforcement of rules.”fi
It is a common practice for political figures to involve themselves in activities that support their political agendas.fi
The table states that strategies involving high spending are economically burdensome, according to Beatriz Marie D. Cruz.