Proposed infra budget seen to boost Philippines growth next year

MANILA, Philippines - The Aquino administration intends to further boost the country’s growth next year with P829.6 billion earmarked for public works and communication infrastructure, Budget Secretary Florencio Abad told lawmakers yesterday.

He said under the proposed P3.002-trillion 2016 budget, the allocation for public infrastructure stands at five percent of Gross Domestic Product (GDP), higher than the 4.3 percent in 2015.

“The significant increase in the proposed 2016 budget will help us expand the national infrastructure and extend our reach to those who need our support the most. However, for these allocations to benefit all of our countrymen, implementing agencies need to fully utilize their funds,” Abad said.

“Fortunately, we’ve had some success in improving agency spending. Establishing full-time delivery units, for example, prevents our agencies from losing sight of their spending targets,” he said.

He said the report on disbursement levels for July shows the government’s catch-up measures are already taking effect.

He said the Department of Public Works and Highways (DPWH) will receive P394.5 billion under the 2016 National Expenditure Program (NEP).

The amount is P90.4 billion or 29.7 percent more than the department’s 2015 budget of P304.1 billion.

As the government’s lead construction agency, the DPWH’s budget allocation is the second biggest among government departments.

In 2016, the DPWH hopes to complete the paving of all national arterial and secondary roads, as well as the development of the national road network – including tertiary roads – and the preservation of road assets.

The DPWH will also build access roads leading to airports, ports and tourism destinations.

On the other hand, the agency’s Mindanao Logistics Infrastructure Network – an initiative to reduce logistic costs in areas of Mindanao by improving linkage roads to key ports and other production areas – will have an expanded allocation of P20.6 billion.

Meanwhile, the Department of Transportation and Communications (DOTC) will be given an allocation of P9 billion for Air Transport projects in 2016. These projects include the Clark International Airport New Terminal Building Project, the New Bohol Airport Development Project in Panglao, Camarines Sur Airport in Naga, Bicol International Airport and the Sanga-Sanga Airport.

The DOTC will also be allocated P2.01 billion for its maritime transport projects.

The DOTC’s Road Transport projects, which include the Integrated Transport Systems (ITS) and the Bus Rapid Transits, will have a budget of P4.80 billion.

These projects are designed to help in traffic decongestion and provide alternative ways of public commuting and maximizing road usage, he said.

Lastly, the metro’s rail services as well as the North-South Rail Project will continue to get support amounting to P15.7 billion from the proposed 2016 national budget.

The amount will cover the following: the subsidy for the Metro Rail Transit (MRT) Line 3, the extensions for Light Rail Transit (LRT) Line 2 East and West, the LRT Line 1 Cavite Extension, the MRT Line 3 Rehabilitation and Capacity Extension and the rehabilitation of LRT Lines 1 and 2.

Other rail projects covered are the North-South Rail Project Phase II (from Tutuban to Matnog), the North-South Rail Project Phase I (from Tutuban to Malolos); the repair, restoration and expansion of the Philippine National Railway (PNR), and the LRT Line 1 (Dasmariñas) and Line 4 (Ortigas-Taytay). 

“Investments in public transportation are critical to the delivery of much-needed goods and services to the public. They also have a clear and positive impact on our citizens. With this, Filipinos can enjoy the physical fruits of good governance through rapid, inclusive and sustainable growth,” Abad said.