Jun 2, 2012

Philippines - P-Noy vows gov't committed to ensure inclusive growth

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Manila, Philippines -  President Aquino assured the public yesterday that his government was committed to ensure inclusive growth benefiting all sectors as the country’s gross domestic product grew 6.4 percent in the first quarter of the year.

“I am sure you’ve heard the good news that our economy grew by 6.4 percent in the first quarter of 2012 – the highest growth rate in the ASEAN (Association of Southeast Asian Nations) region for this period, the second highest growth rate in Asia, and the highest first quarter GDP growth in a non-election year since 2006,” Aquino said in Iloilo City where he led the First Philippine International River Summit.

“As you know, inclusive economic growth is one of the foremost priorities of our administration – this means that no one, and no sector, is left behind. After all, what is economic growth if not ensuring that each and every sector – including the water sector – works and grows the way it should?” Aquino said.

The Philippine economy’s growth was its strongest quarterly pace in two years, powered by accelerated government spending, sustained private sector confidence and an export rebound.

Government consumption rose 24 percent in the first quarter from a year ago, the highest in at least two years, and exports reversed two quarters of decline to post their fastest growth since the fourth quarter of 2010.

According to Budget Secretary Florencio Abad, the growth was driven further by accelerated government spending, particularly in public construction activities, which rose to 62.2 percent from the first quarter 2011 figure of 37.9 percent.

First-quarter growth was further buttressed by government spending for key anti-poverty and social programs, including the conditional cash transfer program of the Department of Social Welfare and Development, salary increases pushed by the Aquino administration under the Salary Standardization Law 3 and priority programs for rice and other agricultural products.

Abad said the robust government consumption was fueled by speedy releases for Maintenance and Other Operating Expenditures (MOOE) and landmark budgetary reforms advanced by the Department of Budget and Management (DBM).

He noted the DBM would increase pressure on departments and agencies to accelerate the movement of obligations and disbursements.

Unobligated funds for projects will be allotted instead to fast-moving projects to sustain the current expenditure pace.

The government had earlier gave assurance it would invest in key infrastructure projects to create jobs while trying to directly subsidize the poor through CCT (conditional cash transfer) to alleviate hunger and poverty.

Last week, Metro Pacific Investments Corp. (MPIC) chief Manuel Pangilinan and San Miguel Corp. (SMC) president Ramon Ang unveiled before President Aquino the North and South Luzon Expressways (NLEX and SLEX) connector project with an eight-kilometer harbor link and Skyway 3.

The NLEX-SLEX that MPIC seeks to build will connect the north and south ports, Ninoy Aquino International Airport and Clark freeport, providing a separate road and faster inter-regional movement of people and goods between Central Luzon and Metro Manila.

The SMC project for Skyway 3 is being undertaken as a continuation of the existing franchise of the Philippine National Construction Corp. (PNCC).

The National Economic and Development Authority board chaired by Aquino also approved on Wednesday the implementation of phase 2 of the Ninoy Aquino International Airport (NAIA) Expressway project and the National Sewerage and Septage Management Program.

The government has also allotted P2.7 billion for the upgrading of the 35-year-old Navotas Fish Port and the upgrading of the 47.5-hectare complex that will be completed in 2015.

The Bureau of Customs also released P200 million to install an online inspection system during the second half of the year to make all X-ray data available in real time.

The government also released P2.5 billion to the National Electrification Administration, reinforcing the government’s commitment to energize off-grid communities through the Barangay Line Enhancement Project and the Sitio Electrification Project.

Aurea Calica
The Philippine Star


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