MANILA – The Department of Budget and Management (DBM) on Tuesday welcomed the appointment of Budget secretary Benjamin Diokno as the chief of the Philippine central bank.
“The DBM congratulates Secretary Benjamin E. Diokno for his appointment as Governor of the Bangko Sentral ng Pilipinas (BSP) and Chairman of the Monetary Board,” the Budget department said in a statement.
Its statement came a day after the Palace confirmed Diokno’s appointment as the central bank chief.
He will take over the post left behind by the late BSP Governor Nestor Espenilla, Jr., who died last month after battling tongue cancer for more than a year.
“With secretary Diokno at its helm, we are confident that the BSP and the Philippine economy will remain in good hands,” the DBM said.
“Secretary ‘Ben’, a lifelong public servant and economics professor, embodies the decisive leadership, professional experience, and technical competence needed in a central bank governor,” it said.
Diokno completed his bachelor’s degree in public administration (1968), master’s degree in public administration (1970), and master of arts in economics degree (1974) from the University of the Philippines Diliman.
He also earned a master of arts in political economy degree from the Johns Hopkins University in the United States (1976) and a doctorate degree (PhD) in economics from the Maxwell School of Citizenship and Public Affairs, Syracuse University (1981).
“A seasoned academic and policy expert, Secretary Diokno is also Professor Emeritus at the University of the Philippines Diliman where he taught for 30 years,” according to the DBM.
Diokno also served three administrations, first as DBM Undersecretary for former President Corazon Aquino, and eventually as Budget Secretary under President Joseph Estrada and again for President Rodrigo Duterte since 2016.
“In his most recent stint as Budget chief, Secretary Diokno pursued an expansionary fiscal policy to invest heavily on public infrastructure and human capital development,” the DBM said.
“For the first time in history, the government disbursed more than 5 percent of the country’s gross domestic product (GDP) on public infrastructure – a testament to his firm resolve and expertise,” it said.
Diokno also eliminated underspending, a trend where actual government disbursements fall below program, the Budget department said.
In 2014 and 2015, underspending was as high as 13.3 percent and 12.8 percent, respectively, amounting to P631 billion in the two-year span.
This raised concerns about the slow delivery of government programs and projects as well as the poor absorptive capacity of implementing agencies.
“Under Secretary Diokno’s watch, underspending in 2016 and 2017 went down to just 3.6 percent and 2.9 percent, respectively.”
In 2018, Diokno managed to reverse 12 years of underspending as actual expenditures exceeded the program by 1 percent.
On transparency and accountability, the Philippines gained international recognition under his watch as 1st in Asia and 17th in the world in the 2017 Open Budget Survey.
Diokno also pushed for an ambitious budget reform agenda amid political resistance.
Under his guidance, the executive department always submitted the proposed national budget on the day of the President’s State of the Nation Address, 30 days ahead of its constitutional duty.
He also championed the shift towards cash-based budgeting to ensure the prompt delivery of public services and completion of projects.
“Secretary Diokno believes in bringing the government closer to its people and enabling all Filipinos to reap the benefits of economic growth. We share his vision and goal of a ‘safer, more equal, more dynamic, and more prosperous Philippines’,” the DBM said.
“We wish you the best in your new role as BSP governor, and thank you for your meaningful service,” it said.
Budget undersecretary Janet Abuel has been appointed by President Rodrigo Duterte as DBM officer-in-charge and acting secretary for the meantime. (GMA News)
