The National Economics and Development Authority (NEDA) has unveiled an updated preliminary framework for the Philippines Development Plan (PDP) for 2023-2028, focusing on human capital and income development, as well as revitalization of the main sectors of agriculture, industry and services.
“It must be about developing and protecting the capacities of individuals and families. We want them to have the capabilities to earn more and protect that income,” NEDA Undersecretary Rosemarie G. Edillon said at the inaugural SyCip Gorres Velayo & Co. (SGV) Tax Symposium. Friday.
In an email to BusinessWorld, Edillon clarified that the framework she presented at the forum was updated the previous day (August 18).
As noted in the presentation, promoting human capital and social development will involve strengthening health and nutrition; improving education and lifelong learning; and establish viable communities.
“We need to address these learning losses, pre-pandemic and then during the pandemic, so that we can grow much faster in the future,” Ms. Edillon said in her presentation.
On the other hand, the goal of increasing income-earning capacity will require expanding training and skills development and intensifying employment facilitation.
At the same time, the protection of purchasing power is envisaged by ensuring food security and rationalizing social protection by targeting aid to the poorest.
At the same time, another aspect of the framework concerns the transformation of production sectors to generate more quality jobs and competitive products.
The modernization of agriculture and agro-industry, the revitalization of industry and the revitalization of the service sector will be achieved through advanced research and development, technology and innovation; strengthened cross-industry links; and promoted trade and investment.
The framework also mentions appropriate government interventions, namely: ensuring macroeconomic stability; develop and upgrade infrastructure; promote competition and regulatory efficiency; achieve peace and security; good governance and bureaucratic efficiency; and accelerating climate action and building resilience to disasters.
The framework will be finalized by next week, Ms Edillon said.
“If ever, [there will be] very minimal changes and maybe [it] will just have to be reflected in the long [and] More detailed PDP. In the latter case, there is no need to revise the PDP’s strategic framework,” she said in the email.
During the forum, Ms. Edillon acknowledged the risks to growth, including inflation, high input costs, fiscal deficit and slowing global demand.
“If this takes inflationary expectations into account, it will impact consumption, and that’s easily three-quarters of our GDP (gross domestic product), our demand,” she said. “The slowdown in global demand would have an impact on our exports [and] manufacturing too. »
Global commodity prices have surged in recent months due to the ongoing Russian-Ukrainian war and supply chain disruptions. Wheat and fertilizer prices have soared amid global supply shortages, putting pressure on the domestic agricultural industry.
Inflation stood at 6.4% in July, bringing the seven-month average to 4.7%.
The government has set its inflation rate assumption at 4.5-5.5% for 2022, reflecting the impact of soaring spending on transport, fuel and food.
The debt-to-GDP ratio also stood at 62.1% at the end of the second quarter, above the threshold prescribed by multilateral lenders for developing markets.
Earlier this week, Ms Edillon told reporters that NEDA was working to expedite the submission of the new PDP before its deadline in December.
The PDP serves as the government’s general guide for development planning. The new PDP created by NEDA is also anchored in an eight-point socio-economic program which also mentions ensuring food security, reducing transport and logistics costs and reducing the high cost of electricity.
The short-term program also includes mitigating the scarring impact of the pandemic by addressing learning losses and strengthening social protection, as well as ensuring strong macroeconomic fundamentals by improving bureaucratic efficiency.
The DPP coincides with the government’s medium-term fiscal strategy which aims to achieve GDP growth of 6.5-7.5% this year and 6.5-8% next year until 2028.