MANILA – The Department of Budget and Management (DBM) is looking at trimming the spending allocations on travels and motor vehicles of government agencies in light of foregone revenues from the suspension of fuel excise tax increase next year.
“‘Yung mga ahensiya … ‘di sila magbibiyahe o kaya ‘yung mga vehicles nila ika-cut – mga ganun,” Budget secretary Benjamin Diokno told reporters in a breakfast forum in Manila.
Reporters asked the Budget chief what non-infrastructure items will be trimmed from the government’s expenditure program next year, in line with the P41 billion in foregone revenue from the suspension of fuel excise tax hikes under the tax reform program.
The Duterte administration’s economic team is planning to reduce spending on non-infrastructure items to keep the fiscal balance within the deficit goal of 3.2 percent of the gross domestic product in 2019.
Diokno, however, clarified that spending cuts is only a “backup plan” in case government revenue “suffers so much.”
“Tsaka sabi ko nga P40 billion compared to P3.757 trillion budget next year ‘di naman ganun kahirap ‘yun hanapin,” Diokno said.
Despite the expected foregone revenue next year, the government will not reduce spending on infrastructure and human capital development.
“We will protect as much as possible the infrastructure program of the government. We will also protect our investment in human capital, namely education, health, social welfare,” Diokno said.
The Tax Reform for Acceleration and Inclusion (TRAIN) law imposed an excise tax of P2.50 per liter on diesel, from zero, and raised the levy on gasoline to P7 from P4.35 per liter.
The excise tax rate on diesel will go up to P4.50 next year and P6 per liter in 2020. For gasoline, the levy will go up to P9 in 2019 and P10 in 2020.
TRAIN has a pertinent provision on suspending fuel excise taxes if global crude prices remain at $80 per barrel for three consecutive months. (GMA News)
