Finally, government has a budget
Hours after we wrote our last brief, reports say that the President has finally ratified the 2019 General Appropriations Act. He did what many thought was the appropriate thing to do, i.e., vetoed items that were not part of government's priorities. The vetoed programs/projects, reportedly public works related, amounted to P95.3 billion, about 1/2 of 1% of forecast 2019 GDP. Although the line item veto represents a reduction in planned fiscal spending in 2019, we think that in this particular instance involving what may likely be wasteful spending, the short term sacrifice is well worth the medium term reward of ensuring fiscal sustainability.