Arsenio Balisacan, the Chief of the National Economic and Development Authority (NEDA), reassured the public on Wednesday that the proposed 2024 national budget would not be utilized for the Maharlika Investment Fund (MIF).
During a press briefing at the Palace, Balisacan addressed concerns that the MIF could significantly impact next year’s budget.
“To begin with, the total budget is set at P5.3 trillion, and we are only talking about P135 billion, which, in any case, is not part of the budget. These funds are separate and not used by LandBank, DBP (Development Bank of the Philippines), or remitted by the Central Bank or BSP (Bangko Sentral ng Pilipinas) to the national government,” Balisacan said.
“Relatively, it should not affect the national budget,” he emphasized.
According to the law, the initial capital for the Maharlika Investment Fund will come from the investible funds of the Land Bank of the Philippines, the DBP, the declared dividends of the BSP, and other sources.
Balisacan also clarified that the MIF is not expected to contribute to the national debt. He explained, “No, that will not happen by design because the funds we are placing in the MIF are idle funds, not funds that are actively utilized. The purpose of the fund is to invest in more productive and higher-yielding instruments, allowing us to earn more from those funds.”
“The goal is not to increase the debt burden but to diversify our sources of funds, thereby reducing our reliance on debts,” he added.
