By: Elena Grace Flores
[VIDEO]: Diokno: Marcos’ ‘disbelief’ over 6.1% June inflation rate was ‘misunderstood’
Finance Secretary Benjamin Diokno said that President Bongbong Marcos was thinking about the year-to-date inflation (January to June) at 4.4%. Not the June inflation at 6.1%. Inflation to go down 4.2% in 2023. We have a lot of fiscal space. Revenues will grow, explained Diokno. The Philippines is better than other countries. Like Thailand and European countries. The price surge of electricity and other fuels triggers world inflation.
Inflation to Remain Elevated
Inflation will remain high in the next few months. But the country’s fiscal space can sustain it. Fiscal space is the room in a government´s budget that allows it to provide resources for a desired purpose. This is without jeopardizing the sustainability of its financial position or the stability of the economy.
Continue to Grant Subsidies
Targeted subsidies will continue. The first tranche of fuel subsidy for the transport sector will be completed in July. The President is to expedite the second tranche for this group. The poverty rate will go down 9% in 2023. National debt to go down 60% by 2025. Build Build Build to expand further. On the basis of fairness, digital payments will be taxed. No mention of the electricity rate remedy.