Philippines Economic recovery, infrastructure spending offsets increased budget deficit

A bank economist said on Tuesday that continued economic recovery and government spending on infrastructure construction programs should be able to offset the impact of the increase in the budget deficit since March 2021. The budget deficit last month increased by 167.34% from the same period last year to 191.4 billion Philippine pesos. As of the end of March this year, the budget deficit reached 321.5 billion Philippine pesos, an increase of 273.11% over the previous year. Chief economist Michael Ricafort said that once the number of Covid-19 infections drops, relaxing quarantine restrictions and restoring the economy will be a structural solution to increase the budget deficit because they “reduce production capacity.” , Production, sales, and many companies increase income” and employment. And industry, and help increase government taxation. government spending, especially on infrastructure projects, is beneficial because it is an important part of the stimulus package to stimulate the economy. Among other factors, he added that Measures such as the Covid-19 vaccination plan. The economic stimulus plan is implemented to stimulate economic activity and help increase the government’s profitability.Rica Ford said: “A structurally faster economic recovery that effectively increases the base of GDP and it will help solve this problem in the coming months/years and budget reform measures. Especially as the economic situation continues to improve.” “Therefore, it is necessary to use public funds wisely and ensure that public funds are used adequately in the coming months/years, because it is not yet certain that the Covid-19 pandemic will continue. How long and how long will it continue to have a negative impact on the economy. Especially in the most vulnerable areas. “The data shows that revenue in March fell by 17.37% to 216.2 billion Philippine pesos, while expenditures increased by 22.33. %, reaching 407.6 billion Philippine pesos. In the first three months of this year, total government revenue rose to 696 Philippine pesos. 5 billion pesos, a year-on-year decrease of 8.73%. Earlier, spending rose by 19%.The Philippine peso is US$1.017 trillion, accounting for 86%.