MANILA, Philippines – The general elections in May 2016 will help boost the local economy as local chief executives will be pressured to finish their infrastructure projects to be re-elected, Budget Secretary Florencio Abad said yesterday.
“Performance is always an election platform and political leaders demonstrate that through the delivery of social services and public works projects,” he explained.
Abad issued the statement following the country’s six percent gross domestic product (GDP) growth reflected in the third quarter of the year, where the Philippines slid a notch lower and ranked third in the region, next to China and Vietnam.
The Philippines used to be the second best performing economy in Asia after China.
“We have now the momentum after a slow start in the first quarter at five percent, recovery in the second quarter at 5.8 percent, and sustained growth in the third quarter. It’s still possible to grow at six percent for the whole year of 2015,” Abad said.
“As in the third quarter, public spending will once again play a pivotal role in the economic expansion in the fourth quarter. Historically, fourth quarter has always been a strong quarter in terms of public spending as agencies rush to finish their projects.
“Because of the reforms introduced, like the elimination of the need for SAROs (Special Allotment Release Orders), the significant reduction of lump sums and the advance procurement of goods and services, the DBM is certain to match its yearly average of 98 percent releases. As of end September, 96 percent of agency budgets have already been released.”
He said government executives will be motivated to improve performance further as the proposed SSL 2015 (Salary Standardization Law) is certain to pass this year, according to both houses of Congress.
“This will double their performance-based bonuses next year,” he added.
Meanwhile, Presidential Communications Operations Office Secretary Herminio Coloma Jr. and presidential spokesman Edwin Lacierda welcomed the National Economic and Development Authority’s report of six percent growth in the country’s GDP for the third quarter.
“This is in line with President Aquino’s directives to the executive branch to improve effectiveness in budget execution through vigorous implementation of priority development programs,” Coloma said.
“President Aquino is firmly committed to achieve inclusive growth through continuing investments in public infrastructure and human capital development anchored upon good governance,” he added.
For his part, Lacierda said the GDP growth shows that good governance is good economics, and that reforms have paved the way toward a more business- and investment-friendly environment.
“Under the Aquino administration, the Philippines has increasingly strengthened its position as an important business hub, gaining the trust and confidence of international observers,” he said.