THE prompt approval of the 2025 national budget, along with early procurement activities ahead of next year’s election-related spending ban, is crucial to sustaining growth in public expenditures, according to a document released by the Development Budget Coordination Committee (DBCC).
According to the Fiscal Risks Statement for 2025, a slowdown in infrastructure disbursements and social welfare and housing dole-outs is expected during the first half of the year due to the prohibition against the release, disbursement or expenditure of public funds 45 days before a regular election, subject to certain exceptions.
“The foregoing considered, these risks may be mitigated by the proper and timely conduct of early procurement activities (EPAs), removing them from the ambit of the prohibitions,” the report said.
“However, where circumstances are such that EPAs cannot be feasibly undertaken or when projects are delayed for other reasons, catch-up plans should be prepared during the election ban so that they may be implemented as soon as the ban is lifted,” it added.
Likewise, the report said the change in incumbents in the Senate and the House of Representatives may affect the progress of pending bills on key budgeting and public financial management reforms.
“As such, proponents may prepare transition plans to account for the possible change in the rosters of both Houses and ensure that the bills and measures to be sponsored already reflect changes and refinements made during the 19th Congress,” it added.
The report also said that among the sources of fiscal risks is the possible negative impact of the 2025 local elections on the plans, programs and projects of the local government units.
“The implementation of programs and projects may be significantly delayed due to political reasons. The new leadership may identify new priorities, allocating a significant portion of the resources to them,” the report said.
“The priorities of the local officials may not always align with the policies and programs of national agencies, which may result in undue delays or substantial modifications in the implementation of joint projects,” it added.
