Friday, May 24, 2024

NewsHorizon

Where your horizon expands every day.

Business

of 2021 Improved growth is expected in the latter half of 2021.


THE PHILIPPINE ECONOMY is

Finance Secretary Benjamin E. Diokno stated that there are expectations for a significant improvement in the second half of 2023 due to increased government spending.

“The latter portion of the growth will outpace the initial portion. This is due to the trend of the final quarter being the time when a majority of infrastructure projects are completed,” he stated during a press briefing.fing on Friday.

In the second quarter of the year, the economy of the Philippines expanded by 4.3%, marking its slowest growth rate in more than two years. This was primarily attributed to a decrease in household spending and a decline in government expenditures.

This brought fi
The GDP for the first half of the year increased by 5.3%, falling short of the government’s goal of 6-7%.

NEDA Secretary Arsenio M. Balisacan provided a separate briefing.fi

On Friday, it was stated that achieving a 6% growth is still achievable.

According to economic leaders, the Philippine economy would need to grow by 6.6% in the second half in order to reach the minimum goal set by the government.

On November 9, the PSA will release the third quarter GDP statistics.

fectiveness and expedite project implementation.”

“To promote economic growth, the Philippine government is accelerating its public spending on infrastructure projects by instructing its agencies to implement their catch-up plans. These plans seek to improve the efficiency of budget execution and speed up project implementation.”fi

The Department of Finance (DoF) stated in a document given to reporters on Friday that there will be no changes in efficiency for the rest of the year.

In Q2, government expenditures decreased by 7.1%, a turnaround from the 6.2% increase in Q1 and the 10.9% decline from the previous year, due to lower budget utilization by agencies.

At the end of August, government agencies had a cash utilization rate of 93%, which is lower than the rate of 95% from the previous year.

According to Undersecretary of Finance Zeno Ronald R. Abenoja, the implementation of these catch-up plans is expected to result in an improvement in government spending by the end of the year.

ficant improvement.”

“Undoubtedly, there will remain a great deal of ambiguity, however, the direction of progress is a notable improvement.”fi

There has not been any improvement in performance as of the mid-point of this year,” he stated.

At the Economic Development Group (EDG) meeting on October 4th, various departments shared their strategies for catching up and projected spending rates. These departments included the DPWH, DoTr, Department of Health, Department of Social and Welfare and Development, Department of Agriculture, and the National Irrigation Administration.

The Department of Finance (DoF) stated that the organizations asked to provide a presentation are the ones with the largest budget allocation, but have a utilization rate of less than 40% according to their most recent data for 2023.

3 years.”

The Department of Finance stated that the Department of Public Works and Highways has been successful in implementing its catch-up plans and meeting its disbursement target, which is 75% higher than its performance in the last 3 years.fi

Although it had been operating for five years, it was still required to present, as it plays a crucial role in public construction.

ficient spending include seasonality in project implementation, procurement, implementation and payment issues.

fi
Mr. Abenoja stated that improving the design of the procurement terms would aid in ensuring a smooth process as originally intended.

He observed that the government is on track to meet its spending goal for this year.

“We anticipate that we will be near our initial plan. This is the commitment that was given by the di.”ff

He noted that the “rent agencies” are different.

According to the Bureau of Treasury (BTr), expenses of the government increased by 3.54% to reach P3.31 trillion as of the end of August. This amount represents 63% of the planned budget for the entire year, which is P5.228 trillion.

invigorating

The Department of Finance reports that the government is increasing investments in infrastructure, revitalizing the sector.flecting efffi

Strengthening financial stability while still promoting economic expansion.

According to the Department of Budget and Management (DBM), expenses for construction and other long-term investments increased by 44.1%, reaching P111 billion in July compared to P77 billion in the previous year’s July.

Infrastructure spending increased by 7.1% from June, reaching P119.4 billion.

The DBM stated that the primary reason for this was the DPWH’s increased spending on infrastructure projects across the country.

The DoTr had significant expenditures for railway projects, the computerization program of the Department of Education, and the building, maintenance, and restoration of infrastructure.ther structures

Judicial facilities and other edifices.ffi

The role of the Judiciary.

Infrastructure spending rose by 12.9% to P618.2 billion in the seven-month period, compared to P547.5 billion in the corresponding period of 2022.

The reason for this, according to the Department of Budget and Management, is because of payments made for infrastructure projects still in progress and those that have already been completed by the Department of Public Works and Highways, as well as direct payments from development partners for foreign-funded rail transportation projects under the Department of Transportation.

The administration intends to allocate 5-6% of the country’s GDP each year for infrastructure projects. For this year, the goal is to spend 5.3% of the GDP on infrastructure, which amounts to approximately P1.29 trillion. – Luisa Maria Jacinta C. Jocson