The BGA Philippines Team, led by Managing Director Victor Andres Manhit, wrote an update to clients on President Marcos’ first full-year budget which seeks inclusive and sustainable economic growth.

Context

  • Philippine President Ferdinand “Bongbong” Marcos Jr. on August 22 submitted his first full-year budget to Congress for approval.The National Expenditure Program for fiscal year 2023 amounts to PHP 5.3 trillion ($94.5 billion) — 4.9 percent more than the previous budget and equivalent to 22.2 percent of the country’s gross domestic product.
  • The budget seeks to lay a foundation for inclusive and sustainable economic growth.Aligned with Marcos’ eight-point agenda, the budget has three main pillars: strengthening the purchasing power of Filipinos, reducing vulnerability and scarring from the COVID-19 pandemic and enhancing bureaucratic efficiency.

Significance

  • Marcos’ budget prioritizes education, public works, health, social welfare, agriculture and transportation. The social services sector will continue to receive the largest budget allocation, while the economic services sector accounts for the second-largest.
  • Distribution increases in economic services and social services aim to invigorate prioritized sectors and expand the previous administration’s “Build, Build, Build” development program into the “Build, Better, More” program for economic transformation and job generation.

Implications

  • Businesses can expect new investment opportunities in a variety of sectors as the government continues efforts to reinvigorate and liberalize the economy, overhaul the country’s infrastructure and elevate its workforce.
  • Companies should monitor any developments in government efforts to achieve goals highlighted by the budget such as alternative fuel and technology, linkages between local and international markets and infrastructure development.

BGA will continue to keep you updated on developments in the Philippines as they occur. If you have any comments or questions, please contact BGA Philippines Managing Director Victor Andres Manhit at vmanhit@bowergroupasia.com.

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Managing Director

Dindo is recognized as one of Manila’s most well-connected and savvy advisors on developments in government and business in the Philippines. Concurrent to his role as managing director for BGA’s operations in the Philippines, he is also the founder and managing director of the Stratbase Group and president of its policy think tank, the Albert del Rosario Institute for Strategic and International Studies. Since 1991, Dindo has served as a member of the faculty and is the former chair of the Political Science Department and a senior fellow of the La Salle Institute of Governance at the De La Salle ... Read More