Duterte willing to retain some of Noy’s economic team

DAVAO CITY, Philippines – If it ain’t broke, why fix it?

While he may be eyeing radical policy changes, incoming president Rodrigo Duterte is willing to retain members of the Aquino economic team who are performing well.

Despite criticisms that growth in the current administration has failed to uplift the lives of the poor, Duterte said the economy is “doing well.”

“The economy is doing good under the Aquino administration. I have to admit it. It’s doing well and if it’s not really broken, then why fix it?” Duterte told News 5 in an interview aired Monday night.

“I will hire Cabinet members who are good and (give) them enough time to come up with (policies that are) equal (to), if not (better than) the economic policies of Aquino,” he added.

Duterte, nevertheless, admitted that he is no expert in economic matters.

“I never portrayed myself as an economic genius… I am not a graduate of Wharton. I’m just a lawyer, a prosecutor,” he said.

Members of Duterte’s economic team include former agriculture secretary Carlos Dominguez (finance) and former North Cotabato governor Emmanuel Piñol (agriculture).

He has yet to reveal his appointees for the National Economic and Development Authority, as well as for the budget and trade departments.

The economy grew by 5.8 percent in 2015, lower than the government’s full-year target of 7.0 to 8.0 percent. Growth drivers in the fourth quarter were services, government spending and consumption.

In the first year of his administration, Duterte said projected growth is 5.5 percent to six percent, from 7.8 percent earlier announced by his transition team.

Duterte stressed a 7.8 percent growth target is rather too high for a new administration such as his.

“It is the first year, 7.8 percent is too high. I would rather place it within six percent,” Duterte told The STAR.

He said he would make sure more investments come in to fuel the country’s economy.

“We need investors to come in for us to a have a robust economy and at the same time an inclusive growth,” the outgoing mayor of this city said. He stressed growth must be inclusive and should be felt by lower income groups. 

With inclusive growth, his administration would be able to bring basic services to the people especially those in rural areas, he said, adding there would always be food on the table in every Filipino household.

The Aquino administration has assured the incoming administration of enough funds to make sure it hits the ground running on June 30.

Only around 31 percent of the budgets of state agencies has been spent in the first four months of the year, which means enough is in store for the next leadership.

A total of P650.27 billion in notices of cash allocation (NCA) were issued as of April, data from the Department of Budget and Management (DBM) showed.

That accounted for 31.4 percent of the P2.071-trillion budget for departments and offices as well as special purpose funds for their immediate needs.

The 2016 outlay is worth P3.002 trillion. The balance of P930.7 billion is in the form of automatic appropriations used mainly for debt servicing, retirement and pension for state workers and revenue share of local government units.

An NCA is the last document presented by agencies to the Bureau of the Treasury to get checks. Once encashed with government banks, funds are deemed disbursed.

“I do expect them to continue to spend to complete projects before (President) Aquino bows out,” said Nicholas Antonio Mapa, economist at Bank of the Philippine Islands. – Alexis Romero, Edith Regalado