Gov't releases 75% of 2012 budget to perk up economy

MANILA, Philippines - The Aquino administration has released P1.36 trillion or 74.9 percent of the P1.816-trillion 2012 national budget as of end-June, the Department of Budget and Management (DBM) said yesterday.

The move is in line with the government’s goal to accelerate budget releases to make up for the under spending last year and to sustain the country’s economic growth and poverty reduction efforts.

Disbursements to government agencies comprised bulk of the releases, Budget and Management Secretary Florencio Abad said.

“The releases also help ensure that agencies will have the sufficient means and capacity to roll out their programs and deliver quicker benefits to all Filipinos,” Abad said.

Data from the Budget department showed that releases for personal Services and maintenance and other operating expenses or MOOE have reached P425.25 billion and P216.7 billion, respectively.

Releases for capital outlays, which also comprise a big chunk of the full-year program or 78 percent have reached P162.3 billion by the end of the first semester.

Among the different departments, the Department of Public Works and Highways (DPWH) received P78 billion for the construction and rehabilitation of various roads and bridges as well as for the implementation of major flood control projects.

The Budget department also released P43.21 billion to the Social Welfare department for the government’s social protection program dubbed as the Pantawid Pamilyang Pilipino Program.

For its part, the Department of Agriculture (DA) received P37.2 billion for the construction, restoration, and rehabilitation of national irrigation projects and construction of farm-to-market roads.

The government through different projects funded by the Special Purpose Funds (SPFs) also released P79.55 billion or 33.4 percent of the programmed P237 billion.

The government also released P29.05 billion for salary increases of state workers and P10.99 billion for terminal leaves and retirement benefits.

Abad said the budget would continue to facilitate macroeconomic stability and long-term economic growth.

The Aquino administration is eyeing an economic growth of five percent to six percent this year from the actual 3.7 percent recorded in 2011.