Ben Diokno
Benjamin E. Diokno (born March 31, 1948) is a Filipino economist and public official who served as Secretary of the Department of Finance from 2019 to 2024 under Presidents Rodrigo Duterte and Ferdinand Marcos Jr., Governor of the Bangko Sentral ng Pilipinas from 2018 to 2022, and Secretary of Budget and Management from 1998 to 2001 under President Joseph Estrada and again from 2016 to 2017 under Duterte.[1][2][3] A Professor Emeritus at the University of the Philippines Diliman with over 40 years of teaching experience in public sector economics and microeconomics, Diokno holds a Ph.D. in Economics from Syracuse University.[3][4] His tenure in key fiscal and monetary roles involved implementing reforms such as assisting in the 1986 Tax Reform Program, crafting the Philippines' first Medium-Term Fiscal Framework, and reducing the debt-to-GDP ratio to 60.2% by late 2023.[2][3][5] Diokno faced political controversies, including refuted allegations of budget anomalies and bribery during his Budget Secretary stints, as well as criticisms over monetary policies favoring a weaker peso and his eventual replacement amid policy disagreements on agricultural subsidies.[6][7][8]Early life and education
Upbringing and family influences
Benjamin Diokno was born on March 31, 1948, in Taal, Batangas, Philippines, a historic town known for its role in early Filipino revolutionary movements.[9] His parents were Leodegario Diokno y Badillo, his father, and Loreta Estoista, his mother, both natives of Taal.[9] The Diokno surname traces its origins to Taal, Batangas, evolving from the Hispanized "Diocno" and linked to prominent 19th-century figures such as General Ananias Diokno, a leader in the Philippine Revolution against Spanish rule.[10] Diokno belongs to a branch descended from Ángel Diokno, making him a distant relative of notable public figures like Senator Jose W. Diokno, though no direct evidence details how this extended family heritage specifically shaped his personal upbringing or early values.[11] Public records provide limited specifics on siblings or formative childhood experiences, with Diokno's early life primarily associated with the provincial setting of Batangas, which preceded his pursuit of higher education in Manila.[9]Formal education and early intellectual development
Diokno earned a Bachelor of Arts degree in Public Administration from the University of the Philippines Diliman in 1968.[3] He continued his studies at the same institution, obtaining a Master of Public Administration in 1970 and a Master of Arts in Economics in 1974.[12] These degrees marked an initial focus on public administration and fiscal policy within the Philippine context, building foundational knowledge in government budgeting and economic management.[13] Pursuing further specialization abroad, Diokno completed a Master of Arts in Political Economy at Johns Hopkins University in 1976.[3] He then obtained a Ph.D. in Economics from Syracuse University in 1981, with research emphasizing econometric modeling and public finance.[14] This progression from domestic public administration to advanced international training in economics honed his analytical approach to fiscal reforms and monetary stability, evident in his subsequent dissertation on resource allocation in developing economies.[3]Pre-government professional career
Academic positions and research
Diokno served as a faculty member at the School of Economics, University of the Philippines Diliman, for over 40 years, delivering courses in Public Sector Economics, Microeconomics, Macroeconomics, Development Economics, and Special Topics in Public Enterprises.[3] He holds the title of Professor Emeritus at the institution.[15] His scholarly work concentrated on public economics, with emphasis on fiscal policy, taxation, decentralization, public expenditure management, privatization, and regulatory reform in the Philippine context.[14] [15] These contributions examined structural factors influencing government scope, tax collection efficiency, and fiscal sustainability, often drawing on empirical analyses of Philippine data to critique policy implementation.[15] Notable publications include “Evaluating the Philippine Primary Education System” (2010), assessing resource allocation and outcomes in basic education; “Philippines: Fiscal Behavior in Recent History” (2010), analyzing deficit patterns and public debt dynamics; and “Decentralization in the Philippines After Ten Years: What Have We Learned?” (2009), reviewing local governance impacts on service delivery.[15] Earlier works, such as “Structural Adjustment Policies and the Role of Tax Reform” (1993), evaluated revenue mobilization strategies amid economic liberalization.[15] Discussion papers from the UP School of Economics, including “Of Budget Rules and Fiscal Outcomes: The Philippine Case” (2010) and “Reforming the Philippine Tax System: Lessons from Two Tax Reform Programs” (2005), provided policy-oriented critiques grounded in historical fiscal data.[15]Policy advisory roles in reforms
Prior to his appointment as Undersecretary for Budget Operations in 1986, Diokno served as an adviser and consultant to multilateral agencies including the World Bank, Asian Development Bank, European Commission, and USAID, focusing on economic policy and reforms in the Philippines, Indonesia, and Thailand.[16][17] These roles involved providing technical expertise on fiscal and developmental strategies, drawing from his academic background in economics to support policy design aimed at enhancing efficiency and growth in emerging economies.[16] In addition, Diokno acted as Fiscal Adviser to the Philippine Senate, where he contributed insights on budgetary and revenue policies to inform legislative reforms.[1][13] This advisory capacity allowed him to influence early discussions on fiscal decentralization and tax simplification, aligning with broader efforts to modernize the Philippine public finance system amid post-Marcos recovery challenges.[1] His consulting work emphasized evidence-based recommendations, such as streamlining administrative processes and promoting market-oriented adjustments, which prefigured his later government implementations but remained non-governmental in nature during this period.[16] These engagements underscored Diokno's role in bridging academic research with practical policy advisory, particularly in advocating for reforms that prioritized revenue mobilization without excessive reliance on foreign aid.[17]Major government roles
Undersecretary for Budget Operations (1986–1991)
Benjamin Diokno served as Undersecretary for Budget Operations in the Department of Budget and Management from 1986 to 1991, during the administration of President Corazon Aquino following the 1986 People Power Revolution.[18] In this capacity, he focused on operational aspects of budget execution, including allocation and monitoring of public expenditures amid efforts to stabilize the economy after the fiscal mismanagement of the preceding Marcos regime, which had left the Philippines with a national debt exceeding $26 billion and persistent deficits.[19] His role involved coordinating budget releases to support reconstruction and reform initiatives, emphasizing efficiency in resource distribution to priority sectors like infrastructure and social services.[20] Diokno provided technical assistance in designing key fiscal reforms, notably contributing to the 1986 Tax Reform Program under Republic Act No. 8438, which simplified the income tax structure by reducing rates and broadening the base while introducing the value-added tax (VAT) at 10% to boost revenue collection from a low 11.5% of GDP in 1985 to higher levels post-reform.[18] [21] This program addressed immediate fiscal pressures by targeting evasion and compliance issues inherited from martial law-era policies, enabling the government to fund debt servicing and essential programs without excessive borrowing.[22] He also supported the transition toward cash-based budgeting principles, prioritizing actual cash availability for obligations to enhance project completion rates and service delivery, a shift from the prior obligation-based system prone to delays.[23] During his tenure, Diokno's efforts aligned with broader Aquino-era goals of fiscal discipline, including debt restructuring negotiations that reduced external obligations through buybacks and rescheduling, contributing to a primary surplus by 1989.[24] These measures helped curb inflation from 50.6% in 1984 to single digits by 1991, though challenges like coup attempts and natural disasters necessitated adaptive budgeting.[25] His operational oversight ensured alignment between budget plans and macroeconomic targets set by the Development Budget Coordinating Committee.[26]Secretary of Budget and Management, first term (1998–2001)
Benjamin Diokno served as Secretary of Budget and Management from June 1998 to January 2001 under President Joseph Estrada.[20] His appointment came amid efforts to streamline fiscal operations in the wake of the Asian financial crisis, focusing on enhancing budget transparency and efficiency.[18] A key initiative during this period was the adoption of the "What You See Is What You Get" (WYSWYG) budget system, which designated the General Appropriations Act as the primary release document for national budget allocations.[27] This reform minimized Department of Budget and Management interventions, enabling line agencies to implement projects immediately upon appropriation approval, thereby accelerating expenditure and reducing bureaucratic delays.[27] The policy aimed to improve fiscal discipline and accountability, and it has remained in place since its introduction.[27] Diokno also oversaw the conclusion of a USAID-supported technical assistance program in early 2000, which bolstered DBM's budget reform efforts, including enhancements to planning, execution, and monitoring processes.[18] These measures contributed to greater operational efficiency despite the administration's fiscal challenges, such as managing post-crisis recovery expenditures.[20] His tenure emphasized integrity in budget preparation, particularly in assembling the National Expenditure Program amid political pressures.[20] Diokno's term ended abruptly in January 2001 following Estrada's removal from office during the EDSA II Revolution, after which the department transitioned to the subsequent administration.[20] Throughout his service, he maintained a reputation for competence without facing personal allegations of graft.[20]
Secretary of Budget and Management, second term (2016–2019)
Benjamin E. Diokno was appointed Secretary of Budget and Management by President Rodrigo Duterte on June 30, 2016, for his third term in the role.[1] In this position, he implemented an expansionary fiscal policy to support investments in human capital development, such as education and health programs, and extensive public infrastructure initiatives aligned with the administration's "Build, Build, Build" agenda.[28] [17] This shift from prior austerity measures aimed to sustain economic growth targets of 7-8% annually and reduce poverty to 14% by 2022, amid rising fiscal deficits to finance these priorities.[29] Diokno prioritized fiscal reforms to bolster revenue and streamline budgeting processes. In September 2016, he outlined plans for comprehensive tax reform by year's end, proposing to expand the value-added tax (VAT) base and eliminate exemptions to compensate for rate reductions on personal income taxes.[30] These efforts culminated in the passage of the Tax Reform for Acceleration and Inclusion (TRAIN) Act on December 19, 2017, which raised excise taxes on petroleum products, tobacco, alcohol, and sugary beverages, generating additional revenues estimated at PHP 56.9 billion in its first year to fund social services and infrastructure.[31] He also advocated for the Budget Reform Bill to modernize public budgeting, including a transition to annual cash-based budgeting effective fiscal year 2019, enhancing efficiency in fund releases and reducing arrears in accounts payable.[32] Under Diokno's leadership, national budget allocations emphasized strategic sectors; for instance, the proposed 2019 budget included PHP 188.2 billion for defense modernization, reflecting commitments to national security amid regional tensions.[33] Infrastructure spending as a share of GDP increased progressively, supporting projects that contributed to average annual GDP growth of approximately 6.5% from 2016 to 2019.[34] His term concluded on March 4, 2019, upon appointment as Governor of the Bangko Sentral ng Pilipinas, leaving a legacy of reformed fiscal mechanisms to sustain development-oriented expenditures.[35]Governor of Bangko Sentral ng Pilipinas (2019–2022)
Benjamin Diokno was appointed Governor of the Bangko Sentral ng Pilipinas (BSP) by President Rodrigo Duterte, assuming office on March 5, 2019, and sworn in on March 6, 2019, to serve the unexpired term of his predecessor.[36][37] During his tenure, Diokno prioritized price stability, financial stability, and efficient payments systems amid domestic and global economic pressures.[38] In response to the COVID-19 pandemic, the BSP under Diokno acted swiftly, implementing accommodative monetary policies including a cumulative 200 basis point reduction in the policy interest rate from 4% to a historic low of 2% by the end of 2020, alongside reductions in reserve requirement ratios for banks.[39] The central bank injected approximately PHP 2.3 trillion in liquidity—equivalent to 13% of GDP—and provided PHP 540 billion in provisional advances to support the national government's pandemic response programs.[39] Additional measures encompassed regulatory relief for micro, small, and medium enterprises, loan restructuring options, suspension of online banking fees, and a cap on credit card interest rates at 24% annually.[39] These actions cushioned the economic fallout and facilitated recovery, with GDP growth projected at 7-9% for 2022.[39] Inflation averaged 4.5% in 2021, temporarily exceeding the 2-4% target due to supply-side disruptions, but was forecasted to moderate to 3.3% in 2022 and remain within target thereafter, with no immediate policy tightening anticipated.[39] Diokno's leadership positioned the BSP as one of the first central banks to deploy decisive pandemic countermeasures and advanced the modernization of the Philippine banking system.[3] For these efforts, he was named Global Central Banker of the Year and Asia-Pacific Central Banker of the Year in 2022 by The Banker.[3] Diokno's governorship ended in June 2022 when he transitioned to the role of Secretary of Finance under President Ferdinand Marcos Jr., forgoing the remainder of his term until July 2023.[40]