A LEADERSHIP change at the Department of Budget and Management (DBM) is unlikely to unsettle the economy as long as fiscal continuity and credible execution are maintained, analysts said.
Malacañang on Monday announced that President Ferdinand Marcos Jr. had tapped Kim Robert de Leon, a former Budget undersecretary, as the department’s new chief, replacing officer-in-charge Rolando Toledo.
Toledo, an undersecretary who led the DBM since Amenah Pangandaman resigned in November last year, will move to the board of trustees of the Government Service Insurance System.
In a statement, Toledo said he remained “confident in the Department’s continued pursuit of sound, transparent, and people-centered governance.”
Reyes Tacandong & Co. senior adviser Jonathan Ravelas said shifts in leadership are “never ideal during periods of economic shock” but are “not fatal either,” provided that fiscal management remains consistent.
“What matters is continuity and credibility, not the name on the door,” he said.
Ravelas noted that investor sentiment typically hinges on whether the new budget chief is able to immediately maintain public spending discipline and uphold the government’s fiscal roadmap.
If the transition stabilizes execution, markets are expected to quickly move past the leadership change. However, if it signals policy uncertainty or operational delays, “risk premiums rise,” reflecting heightened investor caution.
“Right now, the priority for any budget chief is clear: protect growth by front‑loading productive spending, keep a credible and transparent deficit path, build buffers for food, fuel and climate shocks and — most importantly — fix execution delays,” Ravelas said.
“This is not the time for learning curves,” he added. “The job now is to calm markets, coordinate tightly with economic managers, and deliver from day one.”
GlobalSource Partners economist and former Bangko Sentral ng Pilipinas deputy governor Diwa Guinigundo, meanwhile, said it was important to sustain the investigation into the flood control project scandal that had led to Pangandaman’s resignation.
“Have the [Senate] Blue Ribbon committee report signed and let the courts and the Ombudsman pick up from there,” he said, referring to findings that have yet to be signed by the required number of senators.
“Public opinion, and not just one public servant, is the key to unearthing many hidden scandals and having them surfaced and dealt with,” Guinigundo added.
President Ferdinand Marcos Jr. last year blamed substandard projects as having caused massive flooding in Metro Manila and other parts of the country.
Subsequent investigations led to a shake-up at the Department of Public Works and Highways, leadership changes in Congress and a Cabinet revamp that cost Pangandaman and Executive Secretary Lucas Bersamin their jobs.
Those directly involved in the corruption scandal have yet to be jailed and the impact on spending and sentiment has yet to dissipate despite government promises of reforms.
