BEYOND BUDGET

*As-salamu alaykum!*
Philosopher-novelist Ayn Rand once said, “Money is only a tool. It will take you wherever you wish, but it will not replace you as the driver.” One thing the pandemic-induced health crisis and economic slowdown had magnified, is that survival depends on how one navigates challenges and difficulties. It’s like how one attains optimum health through proper nutrition, an active lifestyle, and ample rest and recreation. A similar principle applies in financial wellness. It's about knowing how to handle money. If earning money allows us to buy what we need and want, what matters most is how we spend it. Many people have a tendency to consume cash more than they need to, sometimes more than they can afford. And that’s why budgeting is essential and crucial. Practical knowledge of budgeting makes life less stressful and keeps us from going into debt. If we do not have enough, a plan for sourcing new ways to increase our income is imperative. Human wants are insatiable and having a sound budget gives us a grasp of reality and what’s enough to keep us away from dreaded liabilities. Another insight we have gained from the pandemic is it pays to be prepared for the future. Again, budgeting is key. Saving money, no matter how small the amount, can help tide us over bad times. Looking at the bigger picture, a well-planned national budget, one that puts a premium on priorities and applies due diligence, will determine the country’s march into economic growth, and lasting and inclusive progress. As the Philippine economic team presented in a business briefing in Washington, D.C. for the 2023 International Monetary Fund (IMF)-World Bank Spring Meetings, the country is on track with its Agenda for Prosperity — our North Star for sustainable economic growth. A major part of its metric for success is the administration’s ongoing efforts for reforms and digitalization to boost economic and social transformation. At the briefing, Finance Secretary Ben Diokno mentioned the proactive efforts of President Marcos Jr. government to pursue high infrastructure investments in the next six years and the “interconnected structural reforms” for key growth sectors to further participate in the dynamic global market. Bangko Sentral ng Pilipinas (BSP) Governor Felipe Medalla expressed his optimistic views on inflation while mentioning the BSP's expansion of platforms for digital payments and financial inclusivity nationwide. National Economic and Development Authority Secretary Arsenio Balisacan said infrastructure projects are being strengthened by public-private partnerships. Meanwhile, the IMF, in its revised April 2023 World Economic Outlook (WEO), projected the Philippines will attain the fastest economic growth in Asia in 2023, raising its gross domestic product (GDP) growth forecast to six percent, from an earlier forecast of five percent, outpacing India’s 5.9 percent, Vietnam’s 5.8 percent, and China’s 5.2 percent growth projections. The figure for the Philippines is now within the six to seven percent GDP growth target set by the Development Budget Coordination Committee (DBCC). The good news revealed at the IMF-WB meeting, as well as the forecast in the IMF’s WEO, are convincing scenarios that there is no better time than now for more US-based businesses to invest in the Philippines. The Marcos Jr. administration is serious about observing policy reforms, as the country aims to achieve a robust growth of six percent this year and 6.2 percent in 2024, according to the Asian Development Bank's own projections. Money is a tool to reach those targets. The next step is to stick to the plan and make sure it is followed. The integrity of managing the national budget is not reflected on paper alone, but moves forward with the prudence of its drivers’ faithful execution. At the Department of Budget and Management (DBM), we maintain fiscal transparency for which the Philippines has been recognized in Asia. This inspires the DBM leadership and staff to encourage public engagement in the budget process. To quote Rand again: “What greater wealth is there than to own your life and to spend it on growing? Every living thing must grow. It can't stand still. It must grow or perish.” Grateful to the Manila Bulletin for this platform to inform our dear public on what we have been doing at DBM. Truly, through team effort, we can look forward to a better future for the Filipino people. Beyond budget, our real wealth are our countrymen after all.
*(Amenah F. Pangandaman is the current Secretary of the Department of Budget and Management. She is the first Muslim woman Budget Secretary and the lone female member of the Marcos Jr. administration’s economic team. She carries with her 20 years of government service, having worked in the legislative and executive branches, and the Central Bank. Thus, her unparalleled expertise in the areas of policy governance, economics, and public fiscal management. She continuously champions financial inclusion and key budgetary reforms, such as Digitalization; Climate Change and Green Public Procurement; and Open Government Partnership to further promote fiscal transparency.)*