DBCC adjusts fiscal targets, Palace says

THE Development Budget Coordination Committee (DBCC) adjusted its fiscal targets following a weaker-than-expected first-quarter growth and surging inflation in the face of the Middle East crisis, the Palace said on Monday.

Citing Budget Secretary Kim Robert C. de Leon, Palace Press Officer Clarissa A. Castro said the DBCC’s meeting with President Ferdinand R. Marcos, Jr. resulted in redrawn targets, though she did not elaborate.

“The DBCC met to recalibrate assumptions based on (the) latest developments on economic growth, inflation rates, foreign exchange and oil prices,” she said at a briefing.

“The committee has agreed to further study the effects of these variables on the country’s fiscal position in the short and medium term. Recalibrated figures will be finalized to serve as input for the preparation of the 2027 budget,” Ms. Castro added.

Inflation accelerated to 7.2% in April, the highest in three years. May inflation will be released on June 5.

The peso repeatedly tested lows on the way to closing at a record P61.75 on May 19.

On Monday, the peso closed at P61.746 against the dollar.

Meanwhile, Mr. Marcos also met with Bangko Sentral ng Pilipinas (BSP) Governor Eli M. Remolona, Jr. last week.

“As always, the Governor briefed the President on the BSP’s primary mandate, which is inflation: Its causes, led by the (Middle East) conflict, and the various data and scenarios the BSP is analyzing ahead of its next monetary policy meeting,” Ms. Castro said via Viber.

The Monetary Board is scheduled to hold its next meeting on June 18.

On Monday, the central bank said it is weighing a stronger policy response as inflation risks mount, with officials warning that rising food, fuel and transport costs could keep price pressures elevated and threaten to unanchor inflation expectations. — Chloe Mari A. Hufana