The country’s economy, which took the brunt of the impact of the COVID-19 crisis, is slowly recovering as the government ramps up its public spending and lifts restrictive policies to absorb the socio-economic shocks of the pandemic. In the inaugural budget message of the Marcos Jr. Administration, it has promised to deliver an Agenda for Prosperity by continuing the gains of the previous administration in infrastructure development and by accelerating support to the education, agriculture, and health sectors.
Following the Mandanas-Garcia ruling, local government units (LGUs) will now be in better footing to provide and to directly execute tailor-fitted programs and projects based on the needs of their localities and constituents. Nonetheless, the support of the NG, especially in capacitating LGUs, will be crucial to development of LGUs and regions which have high poverty incidence and low fiscal capacities.
This budget brief looks into the regional distribution of the 2023 National Expenditure Program, and the regional allocation of major executive department budget and the NG’s infrastructure program. It also examines the responsiveness of the budget to select socio-economic indicators such as population, unemployment rate, poverty incidence, and regional level economic output.