Stronger spending to widen budget deficit by 2019

Strong spending needs to come alongside a wider fiscal space.

Economic managers of President Rodrigo Duterte has jacked up its spending target for 2019 just before it submits the budget proposal to Congress.

The economic team announced on Monday, July 2 that they now intend to spend P3.83 trillion next year, up 19.3 percent from the P3.37 trillion programmed for 2018.

“We have slightly adjusted the deficit forecast in order to maintain the aggressive spending strategy that will sustain the momentum of the ?Build, Build, Build? program,? Finance Secretary Carlos Dominguez III said in a statement.

?We assure our people that the government remains committed to fiscal discipline even as it pursues a high level of productive spending that will clear the way to high?and inclusive?growth.?

Because of this, the fiscal deficit will grow to 3.2 percent of gross domestic product versus 3 percent this 2018.

Through this, growth is seen to log between 7 to 8 percent annually.

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