MANILA, Philippines - The government has allotted P593.1 billion or more than a quarter of this year’s P2.265 trillion national budget to economic services as part of efforts to sustain rapid, inclusive economic growth.
The amount represents a 16.5 percent growth over the P509.19 billion allocation last year.
“We’re working toward sustained and inclusive development in the country through bigger investments in key economic activities under the 2014 General Appropriations Act (GAA),†said Budget Secretary Florencio “Butch†Abad.
Abad said the government has earmarked P404.3 billion or 3.1 percent of the country’s total economic output, for infrastructure development this year. The figure is 37.2-percent higher than last year’s spending level.
The government’s goal is to raise infrastructure spending to 5.1 percent of the country’s gross domestic product (GDP) by the end of President Aquino’s term in 2016.
About P219.9 billion of this year’s budget went to the Department of Public Works and Highways (DPWH), the second biggest budget among all government agencies.
The funds will be used to cover the construction, and maintenance of national roads, bridges, flood control systems, and various calamity-related reconstruction projects, among others.
Some P4.98 billion will be used to support the construction of Tarlac–Pangasinan–La Union Toll Expressway (TPLEX), Daang Hari–SLEX Link Project, NLEX-SLEX Link Connector, Cavite-Laguna (CALA) Expressway, C-6 Extension (Flood Control Dike Expressway), C-6 Expressway and Global Link (south section), and the Manila North Expressway (segment 10).
The P219.9-billion budget includes special purpose funds for the construction of school buildings in areas experiencing acute classroom shortage as well as the repair, and upgrading of Regional Health Units (RHUs), district and provincial hospitals, and health care facilities nationwide.
The Department of Transportation and Communications, on the other hand, received P48.89 billion this year which will be used to update the country’s international airports, including the Bicol, Puerto Princesa, Bohol (Panglao), and Laguindingan international airports.
Mass transport systems will also be upgraded through the LRT Line 1 South and North Extension projects, as well as the LRT Line 2 East Extension project.
“While we are on track with respect to our infrastructure investments, there’s certainly more room for growth in the country’s agrarian and manufacturing sectors. We’re also looking at boosting our initiatives for tourism, rural electrification and small and medium enterprise (SME) development.
“By providing ample budgetary support to these sectors, we can foster a more vibrant and engaging economic environment, one that is conducive to increased competitiveness and capability building. And as the country further improves its risk and investment profile, we can introduce more jobs for the country’s growing workforce and reduce poverty in a concrete, sustainable way,†Abad said.