Palace delays GAA ’25 signing for ‘review’ B S P. M @sam_medenilla
B F @butchfBM
T MARY JANE VELOSO reunites with her family at the Correctional Institution for Women in Mandaluyong City after 14 years of detention in Indonesia. Veloso, whose sons were just children when she was arrested, is now serving her life sentence in the Philippines, as agreed with the Indonesian government in exchange for sparing her from the death penalty. This emotional reunion marks the first time Veloso has seen her family outside of prison abroad. Story on A16. PHOTO COURTESY OF BUREAU OF CORRECTIONS
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HE scheduled signing of the proposed P6.35-trillion 2025 General Appropriations Act (GAA) is now facing delay and line veto as it undergoes more “rigorous and exhaustive” review from President Ferdinand Marcos and his Cabinet, according to Malacañang. In a brief statement issued to reporters on Wednesday, Executive Secretary Lucas P. Bersamin announced the postponement amid statements from senators Maria Imelda “Imee” R. Marcos, the President’s sister, and Juan Miguel “Migz” F. Zubiri that they were not aware of the changes in the pending national budget bill, which includes a controversial reduction of over
P10 billion in the budget of the Department of Education (DepEd) next year, while padding that of the Department of Public Works and Highways (DPWH). On Wednesday, Senator Marcos followed up on her public statements by delivering a long, scathing privilege speech denouncing “the process by which the Senate ratified the bicameral conference committee report on the 2025 General Appropriations Act.” She hailed the Palace move to reset the President’s signing of the budget bill, but sarcastically kept alluding to the sudden, unannounced changes by the bicameral panel by referencing a current local movie Himala (Miracle). Marcos said she even wrote to Senate President Francis Escudero and Sen. Grace Poe, chair of the Finance Committee that is the main sponsor of the budget bill. She asked them to make “very transpar-
ent” the work of the BCC, and to consult vice chairs of the respective Finance subcommittees on substantial revisions they will make in the GAB—“na walang lihim, walang himala [with no secrets, no miracles]...” A caucus of senators would have been a good time to raise developments in the BCC so senators can keep track of key changes, but the budget bill was not raised, she lamented. No copy of the bicameral report was furnished her or the other senators before the date of the signing of the bicameral report, she stressed.
Lacson relieved
RELATEDLY, former senator Panfilo Lacson hailed in a TV interview the Palace decision to defer signing of the budget bill while it undergoes review. “Mabuti may pahayag si ES Bersamin di
muna itutuloy ang pagpirma ng budget sa December 20. Mabuti na rin ganyan ang nangyari. Hihimayin daw muna nila at pag-aaralan. [It’s good that Executive Secretary Lucas Bersamin made a statement that they will postpone the December 20 signing of the budget. They will first scrutinize it well],” said Lacson. He earlier urged the President to use his line-item veto powers to redress the cuts on the DepEd budget and murky justifications for padding that of DPWH. Later, he and former Senate President Drilon said the President can also ask Congress leaders to reconvene the BCC and make the revisions.
Line-item veto looms
FROM Bersamin’s brief remarks on Wednesday S “GAA,” A
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Thursday, December 19, 2024 Vol. 20 No. 71
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WEIGHING ON GROWTH B C U. O
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@caiordinario
RECTO: ADDITIONAL 25-BPS CUT TO ENCOURAGE INVESTMENTS
USTAINED domestic political conflicts may not only impact next year’s polls but also the country’s economic and fiscal performance, according to Fitch Ratings. In its latest brief, Fitch Ratings said the country’s GDP growth could average 5.7 percent this year; 5.9 percent next year; and 6.2 percent in 2026. “Domestic political conflicts, which have escalated ahead of the May 2025 mid-term elections, could, if sustained, weigh on macroeconomic and fiscal performance, in our view,” Fitch Ratings said. The Development Budget Coordination Committee (DBCC) targets GDP to grow to an average 6 to 6.5 percent this year and 6 to 8 percent between 2025 and 2028. Based on the DBCC targets, the government aims to pare down the country’s deficit-to-GDP ratio to 5.3 percent next year; 4.7 percent in 2026; 4.1 percent in 2027; and 3.7 percent in 2028. Along with this, revenues are targeted to reach 16.2 percent of GDP next year and in 2026; 16.6 percent in 2027; and 17 percent by 2028. “Fierce public disagreements have erupted between President Marcos and Vice President Sara Duterte and their families. Ms. Duterte is under investigation for threats to the President and for misuse of public funds,” Fitch Ratings said. “The support of Ms. Duterte and her father, former president Rodrigo Duterte, was instrumental in President Marcos’ landslide win in the 2022 election,” it added. Meanwhile, Fitch Ratings said inflation could average 3.2 percent this year and 3 percent in 2025 and 2026. Given this outlook, the S “G,” A
B R J S. A @reine_alberto
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INANCE Secretary Ralph G. Recto believes another 25-basis-point (bps) reduction in the country’s policy rate this week would be beneficial to spur economic investments next year. Recto, who also sits as a member of the Monetary Board, the highest policy-making body of the Bangko Sentral ng Pilipinas (BSP), told reporters he backed the market consensus for a 25-bps reduction in key policy rates ahead of Thursday’s rate-setting meeting, the last for this year. The anticipated move of the Monetary Board to cut rates for the third time this year will bring down the Target Reverse Repurchase (RRP) Rate to 5.75 percent from 6 percent. The BSP has reduced key policy rates since August by a total of 50 bps. Recto said lowering interest rates will definitely boost investment inflows. “If your credit card interest rate was lower, you’d probably consume more too, right? So, more investment, more consumption.” For next year, the Finance chief said he expects another
75-bps reduction in the benchmark rate to 5 percent, although his initial position was a 100-bps cut. Any decision to reduce key policy rates next year would depend on what happens, including the actions of the US Federal Reserve and inflation trends. “We have to wait for the inflation numbers and see what the Fed does, I suppose,” Recto said, adding that how the rate cuts will be delivered, through small increments over time or one-time adjustment, would depend on the BSP. Headline inflation slightly quickened to 2.5 percent in November 2024 from 2.3 percent in October 2024 due to higher food prices as weather disturbances disrupted the supply chain. This is still within the BSP’s forecast range of 2.2 percent to 3 percent for the month. Year-to-date inflation of 3.2 percent settled in the middle of the government’s inflation target range of 2 to 4 percent for the year. Meanwhile, the Philippines’s economic growth slowed in the third quarter by 5.2 percent from 6.4 percent in the second quarter and 5.7 percent in the S “R,” A
BETWEEN BLESSINGS AND BARGAINS With an LRT train passing overhead (left of composite photo) and the entrance to the iconic Baclaran
Church on the right, shoppers from all walks of life gather in Baclaran, Parañaque, to hunt for holiday bargains. Known as a hub for both devotion and commerce, Baclaran draws people not just for prayer but also for its bustling market. However, vendors under colorful umbrellas lament low sales, attributing it to the growing convenience of online shopping and home delivery. NONIE REYES
Manila finalizing rice deals with India, Pakistan B A P @adapelonia
T
HE Department of Agriculture (DA) said it is finalizing agreements with envoys from Pakistan and India to secure commitments for the supply of a combined 2 million metric tons
(MMT) of rice. Agriculture Secretary Francisco Tiu Laurel Jr. said he had met with the Pakistani ambassador to discuss a memorandum of understanding (MOU), under which Pakistan would allocate the Philippines up to 1 MMT of rice annually. This is about 25 percent of the
country’s total rice import requirement. According to Laurel, similar negotiations are also underway with India. “The intention is to create a level playing field among our rice-supplying nations,” Laurel said during a consultation meeting with rice
traders at the Intercity Industrial Estate in Bulacan. “We want them to compete for our market,” he added. The DA said this initiative aligns with President Ferdinand Marcos Jr.’s goal to diversify the country’s S “R,” A
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