The proposed 2016 national budget is being considered in the legislative mill amid daunting global challenges, the vagaries of a harsh El Nino phenomenon, and the heightened political uncertainty owing to the looming transition in the reins of government. Further, China’s continued unraveling in recent weeks has spooked global investors, affirmed the persistent global economic slowdown, and exposed the vulnerabilities of emerging markets. Simmering geopolitical tensions and the expectations on when the Fed finally decides to raise US interest rates have likewise continued to cloud the economic horizon.
In spite of the noted resilience of the Philippine economy, the emerging consensus on economic growth has dipped below 6 percent compared with a more upbeat 6+ percent prior to the release of the 2015Q2 National Accounts. A Reuters report (2015-09-16) mentioned that “Economic Planning Secretary Arsenio Balisacan said a more realistic GDP goal would be between 6 and 6.5 percent.”
In view of the foregoing, a well-formulated and properly utilized national government budget plays an important role in economic development. In particular, the efficient and effective allocation and implementation of the budget afford the government a handle that would enable its instrumentalities to have a firm grip in addressing specific issues and concerns—especially ramifications on growth and poverty alleviation emanating from volatility and uncertainty in both the global markets and the domestic economy.>>read complete document