By: Ben O. de Vera - 05:07 AM
December 03, 2018
The government would no longer be
hard-pressed on spending and cut on expenses as the recent drop in oil prices allows
it to push through with the mandated increase in the excise tax next year, the
head of the Duterte administration’s economic team said.
“There will be less urgency to cut
costs, but it’s always good to be prepared to prioritize expenditures in case revenue
targets are not met,” Finance Secretary Carlos G. Dominguez III said in a text
message last Saturday.
Last week, the Cabinet-level
interagency Development Budget Coordination Committee (DBCC) decided to
recommend to President Duterte to implement the scheduled increase in oil
excise taxes for 2019 even as the economic team earlier pushed for a temporary
suspension when global crude prices skyrocketed a couple of months back.
The President is expected to make
his decision on this when the Cabinet meets on Tuesday, Dec. 4.
In November, Dominguez issued
Department Order No. 56-2018, which directed the heads of all Department of
Finance offices and attached agencies to “prioritize expenditures and cut down
spending for 2019.”
Dominguez said there was then “a
need for government to identify measures to augment the estimated P40-billion
revenue loss while ensuring the continued delivery of projects, programs and
services” if the second tranche of fuel excise tax hike would be suspended in
the first quarter of 2019.
Under DO 56-2018, the DOF
recommended deferring motor vehicle purchases; foreign travels of personnel
(except those already approved by the Office of the President, or sponsored
scholarships and training); attendance to private sector-led conferences that
charge fees; cultural and social celebrations (except milestone anniversaries),
as well as construction of new offices.
The DOF also enjoined its agencies
to defer projects that encountered implementation issues and incurred
significant cost overruns.
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