Election season a fiscal risk: DBCC

The Department of Budget and Management (DBM) has recently warned that the upcoming election season in the Philippines poses a fiscal risk to the country’s economy. The DBM’s statement comes as the country prepares for the national elections in May 2022, where Filipinos will elect a new president, vice president, and other government officials.

According to the DBM, election-related spending could lead to a significant increase in the country’s budget deficit, which could have a negative impact on the country’s economic growth. The DBM also warned that election spending could lead to a rise in inflation, as demand for goods and services increases during the campaign period.

The DBM’s warning is not unfounded. Historically, election seasons in the Philippines have been associated with increased government spending, particularly on infrastructure projects and social programs. This spending is often used as a way for politicians to gain support from voters, and it can lead to a significant increase in the country’s budget deficit.

In addition to the increase in government spending, election seasons in the Philippines are also associated with increased political uncertainty. This uncertainty can lead to a decrease in foreign investment, as investors become hesitant to invest in a country with an uncertain political future.

To mitigate the fiscal risks associated with the upcoming election season, the DBM has called on the government to exercise fiscal prudence and to prioritize spending on essential programs and projects. The DBM has also called on the government to ensure that election-related spending is transparent and accountable, to prevent corruption and wasteful spending.

The DBM’s warning should serve as a wake-up call for the government and for Filipinos in general. While elections are an important part of democracy, they should not come at the expense of the country’s economic stability. It is important for the government to exercise fiscal discipline and to prioritize spending on programs and projects that will benefit the country in the long run.

In conclusion, the upcoming election season in the Philippines poses a fiscal risk to the country’s economy. The government must exercise fiscal prudence and prioritize spending on essential programs and projects to mitigate these risks. Filipinos must also be vigilant and demand transparency and accountability in election-related spending to prevent corruption and wasteful spending. By working together, we can ensure that the upcoming elections do not derail the country’s economic progress.