MALACAÑANG warned on Thursday, January 31, that letting the National Government operate on a reenacted budget for the whole of 2019 would have an adverse impact on the Philippine economy.
In a statement, Presidential Spokesperson Salvador Panelo said the Duterte administration would fail to meet its target economic growth, if Congress fails to approve the proposed P3.756-trillion budget for this year.
"A reenacted budget as a result of a budget impasse would hurt our economy," the Palace official said.
"This would translate to lost opportunities for higher growth as our economic managers are estimating a loss of 1 to 2.3 percentage points in the full-year gross domestic product in the event that the 2019 budget will not be passed," he added.
Panelo's warning came a day after Senate President Vicente Sotto III threatened to withdraw the Senate version of the draft spending bill for 2019 from the deliberations of the bicameral conference committee.
"Sick and tired" of allegations of pork barrel and fund insertions in the proposed budget, Sotto on Wednesday, January 30, opted for a reenacted budget for the whole year.
The National Government has been operating under the national budget worth P3.767 trillion since January, following Congress's failure to pass the proposed allocation for 2019 on time.
Lawmakers earlier pledged to approve the new budget before they go on recess on February 6, just days before the start of campaign season.
Without the 2019 budget, Panelo said the Duterte government's "Build, Build, Build" infrastructure projects, which are in various stages of implementation, would "severely be affected."
"The ordinary Filipino would be the one greatly affected as there would be fewer openings of employment for him or her, not to mention lesser work productivity for those employed as a result of delays in the completion of badly needed transport and road network," he noted.
He also stressed that a reenacted budget would have an impact on this year's programs of various departments intended for poverty reduction, health promotion, and peace and security advancement, among others.
Panelo said the executive department remained optimistic that lawmakers would pass the proposed 2019 budget by "next week."
"The honorable members of Congress know of the dire consequences of a reenacted budget and we are appreciative of the statement made by some members of the bilateral committee that it will endeavor to pass the General Appropriations Bill next week," he said.
"The Executive Branch has already done its part in the budgeting process, we eagerly await Congress to complete the process, so are the Filipino people," Panelo added. (SunStar Philippines)