📷: Economic Planning Secretary Arsenio Balisacan
The Philippine government needs to double down on structural reforms and sharpen its economic priorities over the next three years to maintain growth momentum, the country’s top socioeconomic planner said, as political distractions could stall the country’s progress.
“We have to work on those issues that [our investors are raising]. The ease of doing business is a concern,” Economic Planning Secretary Arsenio Balisacan told reporters at a recent interview.
Balisacan also said that competitors in the Southeast Asian region are reforming at a faster pace, while the Philippines has made gains.
He emphasized that boosting the country’s competitiveness requires continued investment in infrastructure, especially in digital connectivity.
“These digital divides can have serious implications,” Balisacan said, pointing to consequences in education and innovation.
With the Marcos administration entering its second half, Balisacan said a recalibration of priorities is necessary to meet core development goals, including reducing poverty and improving job quality.
“In the coming three years, we really need to work closely with Congress to ensure that the budget that is passed and approved supports impactful and strategic priorities,” he said.
Balisacan added that such priorities should target “low productivity, more inclusive growth, faster poverty reduction, [and] better quality of employment.”
He also underscored the importance of fiscal discipline amid the country’s ongoing consolidation efforts.
“We need to reduce the deficit, we need to reduce the debt as a proportion of GDP. Because that creates positive signals,” Balisacan said.
Such steps, he explained, could boost investor confidence and lower borrowing costs across the board.
“That will result in better market rates for our finances… not just by government, but more importantly by the private sector, by businesses.”
He called for a focus on economic fundamentals: “Low inflation, sustainable and manageable deficit and debt, and investment spending that prioritizes education, innovation, and connectivity.”
The comments come as the government navigates domestic political pressures and potential headwinds to its fiscal agenda. (TCSP)
