Pres. Aquino Leaves P1 Trillion to Duterte Aside from being Economic Rising Tiger of Asia

 

Aquino’s Legacy: P1 Trillion in the Coffers, A Testament to Magnificent Leadership

The transition of power in 2016 marked a significant moment in Philippine history. As President Benigno "Noynoy" Aquino III ended his term, he left behind not just a nation that had experienced stable economic growth, but also a fiscal legacy that would serve as a foundation for the succeeding administration. The Aquino administration, through its sound financial management and prudent fiscal policies, left the Duterte government with over P1 trillion in budget allocations—an undeniable testament to Aquino’s commitment to responsible governance.

A Well-Planned and Well-Funded Transition

The Department of Budget and Management (DBM) revealed that when the Duterte administration took over, P1.02 trillion worth of notices of cash allocation (NCA) had been issued to various state offices in the first half of 2016. This meant that nearly 50% of the P2.07 trillion budget for departments and special purpose funds was still available for use. Moreover, an additional P1.05 trillion remained intact in national coffers, reflecting the strategic planning of the previous administration.

In total, the 2016 budget amounted to P3.002 trillion. While P930.7 billion was allocated for automatic appropriations such as debt payments and pensions, the availability of over P1 trillion for government agencies highlighted Aquino’s structured approach to fiscal discipline. Compared to 2010, when Aquino took over from the Arroyo administration with less financial leeway, the Duterte government inherited a more robust financial position.

Strong Financial Governance Under Aquino

Economists have acknowledged the fiscal discipline exercised by the Aquino administration, ensuring that the national budget was efficiently managed. According to economist Alvin Ang from the Ateneo de Manila University, “Compared to 2010, they really have more money left now upon taking over. They should be proactive in disposing them.” This statement underscores Aquino’s foresight in leaving behind ample resources for his successor.

Bank of the Philippine Islands (BPI) economist Emilio Neri Jr. also praised the progress in financial management under Aquino, citing significant improvements in budget utilization since the beginning of 2016. Despite some absorption challenges faced by government agencies, the efficient disbursement of funds indicated a well-organized financial structure left in place.

The Decline After Aquino’s Term

Unfortunately, the economic trajectory that Aquino carefully built has seen a downturn in the years following his departure. Despite inheriting a stable and well-funded economy, the Duterte administration struggled with budget absorption issues, revenue shortfalls, and inefficiencies in spending. Budget Secretary Benjamin Diokno himself admitted that the government might face challenges in executing a higher budget deficit target, primarily due to difficulties in revenue generation rather than increased expenditures.

While the Aquino administration successfully maintained fiscal prudence, ensuring that funds were readily available for infrastructure projects and social services, the succeeding administration’s challenges in managing these resources became apparent. The anticipated economic slowdown in the second half of 2016 was a sign of the adjustments that the new government had to make—adjustments that unfortunately resulted in missed opportunities for sustained growth.

A Nation Once on the Rise, Now Struggling

The Philippines under Aquino was on an upward trajectory. With consistent GDP growth, a strong financial position, and an international reputation for sound governance, the nation was poised for further economic progress. However, with mismanagement and a lack of continuity in economic policies, much of Aquino’s hard work has been gradually eroded.

The country now faces pressing economic challenges—rising inflation, declining investor confidence, and governance issues that have affected public perception. The economic prosperity that seemed within reach during the Aquino era now feels like a distant memory.

The Aquino administration’s legacy is one of fiscal responsibility, economic stability, and a vision for a progressive Philippines. Leaving over P1 trillion in budget allocations for his successor was a clear indicator of his administration’s commitment to responsible governance. However, the years following his tenure have seen a decline in economic momentum, proving that leadership and sound financial management are crucial in sustaining a nation’s growth.

As the Philippines navigates through new economic challenges, it is essential to recognize and learn from the Aquino administration’s strategies—focusing on prudent budgeting, transparent governance, and strategic economic planning. Only then can the nation reclaim its path to prosperity and stability.