GOVPH

The return of economic activity after the onset of COVID-19 lockdowns has enabled the Association of South East Asian Nations-5 (ASEAN-5) to reclaim its status as one of the world’s fastest-growing regional economies. Evidence is seen from the data culled from the International Monetary Fund’s (IMF) Data Mapper, and Fiscal Monitor, which both provide countryspecific databases of key fiscal variables, public finance developments, and medium-term fiscal projections.

This discussion paper presents the costing exercise for the proposed Expanded National Feeding Program (ENFP) and outlines the minimum elements in determining the financial requirements for the policy, such as the key assumptions, major expenditure items, and fiscal space. Two costing approaches, top-down and bottom-up, were employed based on current prices for the first three years of the program implementation period. A financial gap analysis is also presented to establish the feasibility of funding the intervention, projecting a three-year investment requirement for the program adjusted to inflation and at the same time identifying possible sources of financing. The paper ends with lessons learned in calculating cost estimates, highlighting the imperative to institutionalize and standardize the practice in the government to reduce unfunded mandates and ensure that policymakers understand the policy trade-offs and make better informed decisions.

The economic recovery of the Philippines, though showing promising signs, hangs in the balance as rising prices of electricity, essential food costs, and transportation expenses threaten to undermine the positive trajectory of our economic resurgence. The national budget is a vital instrument that will enable government to implement key program and projects to sustain post-pandemic gains and meet development targets outlined in the Philippine Development Plan (2023-2028).

The 2022 Statement of Appropriations, Allotments, Obligations, Disbursements and Balances (SAAODB) published by the Department of Budget and Management (DBM) reports on the budget utilization performance of national government agencies (NGAs). The SAAODB details the total available appropriations (which includes same-year budgetary adjustments), the allotments or releases, the obligated and disbursed amounts, and the unobligated allotments.

More than 22 years since the passage of the Electric Power Industry Reform Act (EPIRA) or Republic Act No. 9136, the vision of an affordable, competitively-priced, and secure electricity supply has remained elusive. Energy insecurity remains a major impediment to sustainable economic growth and competitiveness, with high power prices—considered as one of the most expensive in Asia—having knock-on effects on investments, industry growth, and consumer welfare.

The National Government (NG) has long relied on both domestic and foreign borrowings to finance many of its programs and projects. The country’s outstanding NG debt includes borrowings of government-owned and -controlled corporations (GOCCs) that are NG-guaranteed. These liabilities are intended to bolster the creditworthiness of the GOCCs, facilitating their access to funding from the private sector and international markets. Although the GOCCs bear the responsibility of servicing their debts, these obligations represent contingent liabilities for the national government at any time a GOCC becomes unable to repay its debt and the advances made by NG.

Digital connectivity continues to be a huge challenge because of the lack of access and insufficient ICT infrastructure. Some of the country’s geographical and archipelagic conditions might prove to be unattractive for corporate investments and/or are non-viable to landbased network installation. This uneven and underdeveloped digital connectivity engenders another layer of inequality, the digital divide. Addressing the insufficiency in terrestrial-based infrastructure and expanding digital connectivity across the country may be done through the adoption of satellite-based technologies.

As the world recovers from the COVID-19 pandemic, attracting foreign direct investments or FDI has emerged as an important source for sustaining economic recovery in many developing countries. However, regulatory restrictions pose a challenge, limiting countries’ capacity to attract and benefit from FDI. This paper principally examines the impact of foreign restrictions on inward FDI in the ASEAN-5, namely, Indonesia, Malaysia, the Philippines, Thailand, and Vietnam. Data on FDI are based on the top 20 FDI source countries. Using an augmented gravity model for the period 2010 to 2020, this paper shows that reforms aimed at liberalizing FDI equity restrictions as measured by the index, could potentially increase inward FDI. Moreover, host countries with greater geographical distance, higher corporate tax rates and inflation rates are likely to deter FDI due to increased costs for foreign investors. Larger market sizes, stronger perception that government corruption is controlled and greater quality of human capital also play significant roles in attracting FDI. By addressing regulatory barriers, particularly foreign equity restrictions and considering other factors deterring FDI, ASEAN-5 countries have the potential to substantially increase their level of inward FDI, unlock associated benefits, and accelerate their post-pandemic recovery.

This paper delves into the recent onion shortage which resulted in the skyrocketing prices of the commodity. While the problem has partly died down, it brought to fore critical issues affecting the industry. And these issues are not confined solely to the industry but also other major agricultural commodities.  Important lessons have to be learned to avoid a recurrence of the problem. This note tries to analyze the factors that contributed to the situation including supply and demand, importation, and bottlenecks in the supply chain. Reform measures are being proposed to address anti-competitive practices besetting the industry. Other policy imperatives such as improving credit accessibility, increasing cold storage facilities, and strengthening market linkages are also being recommended to help onion farmers.