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Thursday, March 14, 2019 Vol. 14 No. 155
2017 EJAP JOURNALISM AWARDS
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DBCC scales down ’19, ’20 growth goals 6% to 7% A T
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By Rea Cu
During its 175th meeting, the DBCC scaled down the GDP growth target for the year to 6 to 7 percent, from the previous 7 to 8 percent. Economic growth next year is projected to reach 6.5 to 7.5 percent.
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@ReaCuBM
SIDE from the budget impasse, the ill effects of El Niño and global headwinds such as global trade tensions have forced the government to revise downward its growth targets this year and in 2020.
The Development Budget Coordination Committee (DBCC) on Wednesday announced the revisions it made in the country’s growth targets and other macroeconomic assumptions.
Rene E. Ofreneo
The DBCC expects to hit the original growth target of 7 to 8 percent in 2021 and 2022. “The 6 percent to 7 percent is an adjustment from the 7 to 8 percent which we used to have every year
The new GDP growth target for 2019 set by the DBCC, from the previous 7 to 8 percent. Economic growth next year is projected to reach 6.5 to 7.5 percent
until 2022, and that is because it seems to be a foregone conclusion that the budget will be reenacted until April,” Socioeconomic Planning Secretary Ernesto M. Pernia told reporters in a news briefing in Pasay City. “The El Niño phenomenon is also at the back of our minds,” he added.
HE Philippine Labor Code is turning 45 this year. It was promulgated through a Presidential Decree (PD 442) by President Ferdinand Marcos on May 1, 1974. In the light of the numerous changes in the labor market and the composition of the labor force in the last five decades, the Code truly needs an updating, if not an overhaul. In the first place, the Code is virtually silent on the organizing rights and social protection needs of the various segments of the informal sector/economy workers, who constitute two-thirds of the labor force. A proposed Magna Carta for Workers in the Informal Economy (MCWIE) has been languishing in Congress. Continued on A11
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Neda: Reenacted budget to stall infra projects, cut GDP growth this year By Cai U. Ordinario
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REENACTED budget will likely result in the lowest GDP growth rate that the Philippines will see in nearly a decade as it would hamper jobs creation and the implementation of publicly funded projects. The National Economic and Development Authority (Neda) said GDP growth could slow to 4.2 to 4.9 percent. If the government will operate under a reenacted budget for the rest of the year, the projected GDP growth is the lowest since 2011, when it reached 3.7 percent. If the budget impasse is resolved by April, full-year GDP growth could slow to 6.1 to 6.3 percent. A reenacted budget until August will cause the economy to expand by 4.9 to 5.1 percent this year. “Thus, we call for the immediate passage of the 2019 budget. The longer we wait, the more adverse the effect will be,” Socioeconomic Planning Secretary Ernesto M. Pernia said in a statement. Apart from the damage on the economy, the reenacted budget will cost as much as 180,000 to 240,000 more jobs and fail to lift 400,000 to 550,000 more Filipinos out of
Govt wants to hike NFA buffer stock
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3.7%
appropriations law that can aid this government better their lives and help our country move forward,” Panelo added. Despite the delays in the deliberations on the GAB, Malacañang said the President did not meddle at any instance, consistent with the policy of noninterference with coequal branches of government.
HE national government is open to increasing the National Food Authority’s (NFA) buffer stock as El Niño could recur in the latter part of the second semester of 2019. National Economic and Development Authority Assistant Secretary for Regional Development Mercedita A. Sombilla also told the BusinessMirror that hiking the NFA’s buffer stock to 30 days from the current 15 days would require additional funds. Sombilla noted that the NFA’s budget of P7 billion will allow the food agency to procure only 15 days of buffer stock. Increasing this to 30 days would entail doubling the NFA’s budget for palay procurement. “We have to make a decision to probably increase the buffer stocking,” she said in an interview on Tuesday. “The P7 billion under the current GAA will not really be enough if like for example we want to increase its buffer stocks in preparation for events like this, that will not be enough.” Sombilla said the NFA could borrow money from the national government. Under the rice trade liberalization law, she said a special
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The GDP growth posted in 2011. The Neda said GDP growth could slow to 4.2 to 4.9 percent if the government will operate under a reenacted budget for the rest of the year, the lowest since 2011
poverty this year. Pernia also said a reenacted budget will delay new and ongoing infrastructure projects, as well as the implementation of public social services such as the Unconditional Cash Transfer and Pantawid Pasada Program. The Philippine economy grew by 6.2 percent in 2018, lower than the government’s revised target of 6.5 to 6.9 percent. This is also lower than the 6.7 percent and 6.9 percent recorded in 2017 and 2016, respectively, largely due to the spikes in inf lation last year. In terms of jobs, the government is targeting to create over a million jobs annually until 2022. This will be fueled by the government’s Continued on A8
PESO EXCHANGE RATES n US 52.3730
SENATE PROBE Residents of Barangay Barangka in Mandaluyong City lined up to get their rations of water as supply dwindles in their place for the past four days, as the hot season started to bite and the water level at the La Mesa Dam reached a critical level. The Senate is opening an inquiry into the matter. Story on A12. ROY DOMINGO
Senate, House must break stalemate–Palace
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DAY after President Duterte met with lawmakers from both chambers, Malacañang said it is leaving it up to Congress leaders to break the impasse on the proposed P3.757-trillion 2019 national budget. “The Office of the President has yet to receive the enrolled General Appropriations Bill or GAB for this year despite the approval of
the Bicameral Conference Committee [Report] of Congress of a version last February 8, 2019,” said Presidential Spokesman and Chief Presidential Legal Counsel Salvador S. Panelo in a statement on Wednesday. “Only Congress can resolve and break this impasse.” “We call on the Senators and Representatives to break the stalemate and deliver to the Filipino people an
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Source: BSP (13 March 2019 )