Investment grade status to cement Phl reputation
MANILA, Philippines - Achieving investment grade status will cement the Philippines’ reputation as a major investment hub in Southeast Asia and bolster the country’s goal of moving into a virtuous cycle of sustained and inclusive growth, Budget Secretary Florencio B. Abad said yesterday.
During the Philippine Economic Briefing, Abad reiterated the government’s optimistic outlook on winning an investment grade rating this year on the back of a robust investor confidence, a resurgent domestic economy and continued commitment to good governance.
“We’ve already posted 11 favorable credit actions since the Aquino administration began its work of socio-economic reform, thanks to our strong economic fundamentals and robust fiscal management strategy, as well as our dedicated drive for improved governance. There is very little doubt that the country will soon reach investment grade, and we are determined to create an environment that will not only facilitate the upgrade, but will likewise ensure the sustainability and inclusiveness of the country’s growth,” Abad said.
Abad said an upgrade would result in greater private sector confidence in the country’s economic and political capacity and more jobs.
He also emphasized the role of public expenditure management in bolstering economic growth, saying spending for the year will be faster and more efficient as a result of the reforms implemented by the DBM, which include zero-base budgeting, bottom-up budgeting, and the disaggregation of lump sum funds.
“We are keenly anticipating a year of improved efficiency and transparency in the management of public funds, even as we align our budgetary priorities with President Aquino’s social contract with the Filipino people to ensure high-impact expenditures,” Abad said.
Abad also cited the government’s transition toward a regime where the General Appropriations Act will stand as the release document, thus discarding the circuitous process of requesting and approving fund releases across the year.
He said the DBM has also shortened the lifespan of appropriations to just one year, which will allow departments and agencies to make swift use of their available budgets and, ultimately, facilitate the quick and efficient delivery of goods and services to the public.
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