By Jennifer
Ambanta | Posted on Jul. 18, 2013 at 12:02am | manilastandardtoday.com
The
government will increase its infrastructure spending to P400 billion,
representing 3 percent of gross domestic product next year, Budget Secretary
Florencio Abad said Wednesday.
Abad said the
government would boost infrastructure spending further to 5 percent of GDP by
the end of the Aquino administration in 2016.
“Twenty-six
percent of the budget focused on infrastructure. [We would be] ramping up spending to 3
percent next year and further scale it up to 4.21 percent [in 2015) and
eventually to 5 percent,” Abad said.
The
government allotted P400 billion for infrastructure spending in 2014, P587
billion in 2015 and P800 billion in 2016.
Abad said the
budget would be allocated mostly to horizontal developments such as roads and
bridges.
“Slowly, by
the end of 2014, we will rehabilitate all national roads and pave secondary
national roads,” he said.
Abad said the
budget also included appropriation for flood control in the National capital
Region and other areas. “We have allocated P27 billion for flood control,” he
said.
Meanwhile,
Abad said given the higher government expenditures, the first-half budget
deficit would likely be higher on a year-on-year- basis.
“That’s the
greater possibility than a lower one,” he said.
Abad said the
government would continue to draw funds from local borrowings. The government
next year has a borrowing program of P715 billion, including P95 billion from
foreign sources and P620 billion from the domestic debt market.
Abad said the
expansion of the economy would enable the government to collect more taxes and
finance its projects.
“Economy is
expanding, therefore the ability to generate revenues also grows,” Abad said.
“If you borrow less and collect more, you can spend more.”
Abad said
interest payments and debt services continued to fall giving the government
more leeway in spending.
The Aquino
administration is looking at P266.3 trillion in budget deficit in 2014, higher
than P238 trillion in 2013.
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