Friday, January 29, 2016

“House of Representatives has collectively failed the Bangsamoro People”: Dep. Speaker Balindong

From the Website of GPH - Government of the Philippines

Budget Secretary Abad on the 2015 Q4 and full-year performance of the economy January 29, 2016

Statement of Budget Secretary Florencio Abad
On the 2015 fourth quarter and full-year performance of the economy

We are pleased to learn that our reforms to boost spending on our people’s priorities have enabled our economy to grow by 5.8 percent in 2015.

In particular, government final consumption expenditure grew by 9.4 percent last year, compared to a measly 1.7 percent in 2014; and public construction increased by a whopping 20.6 percent, against the 6.3-percent growth registered in 2014.

We attribute these remarkable improvements in spending performance to two main factors. First, we have substantially increased infrastructure spending over the last five years as we seek to address infrastructure challenges and put us in step with other ASEAN emerging economies which spend a higher percentage of GDP on infrastructure.

The higher requirements for infrastructure upgrading and reconstruction have helped keep government consumption growth robust. We can expect higher growth for 2016 as the upgrading of all national roads and bridges are completed at the end of the year.

Second, we have implemented a number of reforms aimed at strengthening Public Financial Management and accelerating budget execution. These reforms have taken root and are yielding positive results in terms of faster disbursements and higher fund utilization.

Faster disbursements for Infrastructure and other Capital Outlays helped raise national government disbursements to P291.3 billion as of November 2015, reflecting a 23 percent year-on-year increase from 2014. This reflects the improved capacity of agencies to utilize their budgets and deliver much-needed services.

In particular, the rate of fund utilization of DPWH reached 97 percent, compared to 78 percent in 2014, reflecting a nearly 20 percentage point improvement. In the fourth quarter alone, its utilization rate reached 99 percent, from 88 percent in the same period in 2014.

We take heart from the fact that the full year performance of the economy reflects the positive results of the budget reforms that we have introduced since 2010: reforms which enabled the government to spend within its means, invest in the right priorities, deliver measurable results, and empower citizens through greater transparency and participation in the budget process.

These bold and game-changing reforms enabled us to dramatically increase public spending without raising additional taxes except for the sin tax reform law. As a result, our National Budget doubled from P1.5 trillion in 2010 to more than P3.0 trillion this year.

Through these reforms, we have dramatically increased the budgets for social and economic services, which are delivering measurable results and meaningful changes to the living standards of our people. Through the National Budget, we are building more health and education facilities and farm to market roads; increasing support for tourism and manufacturing; we are doing reconstruction of devastated areas, expanding social protection programs, and building the socioeconomic resiliency of people and communities.

GPH Website





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