Read on Twitter
Because I have a lot of time today, let’s set a few things straight about the 3.6% estimated deficit mentioned in this article. Read this thread if you want to better understand funding for COVID-19 crisis response / stimulus package https://www.gmanetwork.com/news/money/economy/732023/dof-appeals-for-taxpayers-to-pay-early-to-boost-funding-for-covid-19-efforts/story/
The programmed deficit is not 3.6% of GDP. If you look at Table A.2 of the 2020 Budget of Expenditures and Sources of Financing, the deficit figure for 2018-2022 is pegged at 3.2%.
That should have been the government’s threshold if only the econ managers were serious in keeping the targets they set for themselves. (Footnote: Iyong 3.2% narevise na yan from 3.0% at the start of this administration. Dati 2% lang ang deficit threshold)
Even before the COVID-19 crisis exploded, the deficit has already been going up. It ballooned to 3.6% last year. Bakit nagkaganon? Anong nangyari? What I’ve read is that there was a major shortfall in the government’s revenue collections amounting to about 150B late last year.
The past couple of weeks, the gov’t appears to be scrambling to raise cash to foot the bill for COVID19 - DOTr GOCCs remitting dividends fast; BSP cutting reserves by Php200B; DOF securing a $1.6B loan from ADB; BSP announcing that it’ll purchase up to Php500B in gov’t securities
They keep saying gov’t has a lot of funds / money for COVID-19 interventions. They said there’s 200B from CTRP even as they appear to be on a rush to raise cash.
May budget. Totoo iyon. In fact, merong dalawang budget - 2019 and 2020 GAA. Parehong pwedeng gamitin ng Presidente how he sees fit sabi sa Bayanihan Act. Pero guys that’s all on paper until there’s actual money in the Treasury.
Ang dapat nating tanungin ngayon ay may sapat pa bang salapi/cold cash/datung/pera/money - call it whatever you will - para pondohan ang budget? Para makapagdisburse ng malawakang stimulus at financial assistance ang pamahalaan?
The public budget is not equal to cash. The budget - which now is also subject to the President’s emergency powers - only sets the limit for what government can spend. Hindi naipamumudmod sa households/businesses yung makakapal na volumes ng General Appropriations Act.
