Metro Manila (CNN Philippines, July 25) – In his first State of the Nation Address (SONA), President Ferdinand “Bongbong” Marcos Jr. urged lawmakers to pass measures meant to improve government’s fiscal management.
Addressing the newly convened 19th Congress, Marcos sought support for the National Government Rightsizing Program (NGRP), which aims for a “comprehensive strategic” review of government agencies and carry out mergers, consolidation, and even their abolition.
“The rightsizing efforts will also involve the conduct of a comprehensive strategic review of functions, programs and projects that will cut across various agencies,” said the chief executive, emphasizing the need to improve government efficiency while ensuring optimal use of resources.
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Marcos also listed among his priorities the Budget Modernization Bill, which institutionalizes the cash-based budgeting system (CBS). Under the system, all authorized appropriations may only be obligated and disbursed until the end of their respective fiscal year, otherwise, they will be reverted to the Treasury.
“The full implementation of the CBS is timely and vital as the government executes response and recovery plans post-pandemic,” he explained.
The President also mentioned the proposed E-Government Act, which establishes an e-government masterplan covering all relevant services and processes, as the government pushes for digitalization.
Also in his list is the proposed Internet Transaction Act or E-Commerce Law that regulates commercial activities conducted online.
This measure is expected to promote fair advertising practices and competition, protect intellectual property rights, and ensure product standards and safety are observed, among others.
Marcos has also prioritized the passage of Government Financial Institutions Unified Initiatives to Distressed Enterprises for Economic Recovery (GUIDE). It taps government financial institutions to help small businesses and “strategically important” sectors address their liquidity or solvency problems, ensuring that they can maintain operations and employment.
Analysts welcomed Marcos’ pronouncements, proving that he is paying attention to his economic team.
“It was a very good roadmap for his presidency, [with] the country coming from the scars of the pandemic. It shows his political will and the fact that he is surrounded by good economic managers and as shown by his appointments,” said former Financial Executives of the Philippines president Francis Lim.
“It seems clear to me that he is taking suggestions from the economic team, which again will be welcomed by the markets,” said Nomura chief ASEAN economist Euben Paracuelles.
Business groups have cheered the chief executive’s economic team, which features seasoned University of the Philippines-educated technocrats Benjamin Diokno as Finance Secretary and Arsenio Balisacan as Socioeconomic Planning Secretary.
Diokno’s long-time aide Amenah Pangandaman is also at the helm of the Department of Budget and Management.
