TO continue tempering the red-hot inflation, the National Economic and Development Authority Board (Neda Board), which is chaired by President Ferdinand R. Marcos, Jr., is pushing to extend again the reduced tariff for food staples and coal.
In a news forum on Saturday, Socioeconomic Planning Secretary Arsenio M. Balisacan disclosed the board proposal, to be implemented through a new Executive Order, will cover meat of swine, corn, rice, and coal.
He said the measure aims to “provide relief to poor and vulnerable segments of the Filipino population whose welfare is reduced because of high inflation.”
“Through this policy, we shall augment our domestic food supplies, diversify our sources of food staples, and temper inflationary pressures arising from supply constraints and rising international prices of production inputs due to external conflict,” Balisacan said.
The lowered tariff for pork, corn, and rice will last until December 31, 2023, while that for coal will last indefinitely, but subject to review every semester.
In May 2022, then-President Rodrigo R. Duterte issued Executive Order (EO) No. 171 series of 2022, which kept the lowered tariff for pork, as initially stipulated in his EO No. 134 series of 2021.
EO 171 also lowered the tariff for corn, rice, and coal. The issuance is scheduled to lapse on Dec. 31, 2022.
Balisacan said they expect the global economy to recover next year — resulting in favorable local economic conditions — with the expected reopening of China’s economy, moderating global oil prices, easing of aggressive monetary policy tightening, and sustained remittance inflow.
Given such factors together with the implementation of the approved Philippine Development Plan (PDP) 2023 to 2028, NEDA forecast the country will achieve its 6.0 percent to 7.0 percent economic growth target for next year.
Among the highlights of the new PDP are the digitalization of government processes and public services; improving the local and global connectivity of Philippine markets and the integration of leading and lagging regions; and servicification or building ICT (information and communication technology), creatives, tourism, and logistics ecosystems around manufacturing clusters.
The new government policy road map also focuses on building a dynamic innovation ecosystem; harnessing the private sector’s resources, technologies, and potential for scale economies through public-private partnerships (PPPs); and ensuring the effective devolution of critical social services to local governments.
“Our economy remains robust, supported by strong domestic demand and an upbeat labor market,” Balisacan said.
He said the proposed Maharlika Investment Fund (MIF), which is patterned after the sovereign wealth fund of other countries, will help the government achieve its economic targets.
“We commit to working with our Legislature to put in place the necessary features of, and conditions for, a successful investment fund that will best serve the interest of the Filipino people,” Balisacan said.