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Philippines – Diokno: Govt keeping ‘foot on the gas pedal’
Infrastructure, other capital spending up 95.9 percent in April
Infrastructure and other capital expenditures surged in April, the Budget department reported on Wednesday, with the government said to be keeping its “foot on the gas pedal” with regard to promises to boost outlays for economic development.
Spending was said to have hit P65.6 billion during the month, up 95.9 percent from the P33.5 billion recorded a year earlier.
“Infrastructure and other capital spending surged … on account of various road infrastructure projects by the Department of Public Works and Highways,” the Budget department said in a statement.
These included the “improvement, upgrading and widening of roads and bridges; construction and improvement of access roads leading to declared tourism destinations … construction of flood control/mitigation structures and drainage systems; preventive maintenance projects; and payment of right-of-way claims,” it added.
Year-to-date expenditures subsequently grew by 47.5 percent to P222.7 billion.
Infrastructure and capital spending boosted total government disbursements, which was previously reported to have reached P261.2 billion in April.
Robust disbursements put total government spending at P1.03 trillion for the first four months of the year, a 29 percent year-on-year increase.
“We are keeping our foot on the gas pedal with regards to government spending,” Budget Secretary Benjamin Diokno said.
“We will maintain this positive momentum for the rest of the year and virtually put an end to underspending,” he added.
University of Asia and the Pacific economist Victor Abola agreed, saying that the latest data “confirms the trend already established since the beginning of the year that the national government is indeed getting things done in the infrastructure front.”
Diokno claimed that strong government spending would improve the country’s growth and development prospects, which means better living standards and more economic opportunities for Filipinos.
The government, which is targeting 7.0-8.0 percent GDP growth for 2018, is banking on its “Build Build Build” program to provide the impetus.
At least 34 flagship projects are expected to be rolled out this year or early in 2019.
The ambitious infrastructure program will be bankrolled by tax reforms and concessional loans, with the overall budget expected to hit up to P9 trillion by 2022.
As a result, the share of state infrastructure spending to GDP is expected to rise to 7.3 percent — from 5.4 percent in 2017 — at the end of the Duterte administration’s six-year term.
Source: http://www.manilatimes.net/diokno-govt-keeping-foot-on-the-gas-pedal/402817/