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THE
government failed to spend as much as it intended for
both infrastructure and social programs in the first six
months, leading one private economist to warn that
delays in public spending “will mean average people
could suffer, and that could affect the growth outlook
for the year.”
The
underspending allowed the national government (NG) to
gain more against the budget deficit, which thinned
further to only P18 billion versus the programmed
shortfall of P41 billion in the same period.
The
Philippines posted its third-straight monthly budget
surplus in June, as rising prices boosted tax collection
and government agencies failed to start public-works
projects as planned.
The
government had a surplus of P769 million ($17 million)
last month, and that brought the six-month deficit to
P18 billion, Finance Secretary Gary Teves said in Manila
on Wednesday.
Teves
told reporters the Department of Public Works and
Highways and the Department of Social Welfare and
Development did not disburse as much of their funds as
they should have during the period.
He would
not disclose the extent of the underspending in the
agencies tasked with ensuring continued growth under a
more challenging economic environment this year.
“The
lower-than-expected deficit can be attributed to the
P8.3 billion excess over the first-semester revenue
program of P561.7 billion and P14.7 billion lower
spending. The NG registered a surplus in June amounting
to P769 million,” Teves said at a briefing held at the
Bureau of Treasury.
The
offices of the Department of Finance and the Bangko
Sentral ng Pilipinas had been without electrical power
since last Friday, when their more or less 40-year old
electrical transformer went bust.
Six-month revenues totaled P570 billion, but public
spending fell short of the P602.7 billion program as
this reached only P588 billion.
Teves
blamed the underspending on the inability of agencies to
implement their programs on time.
But he
noted that expenditures in June alone were 12.9 percent
more than year-ago level to P86.8 billion, even as
revenues during the month also rose by 12.7 percent to
P87.6 billion.
“Netting
out the interest payments from expenditures, NG recorded
a primary surplus in June amounting to P8.7 billion.
“Cumulatively, this primary surplus totaled P123 billion
from January to June,” Teves said of the budget position
that excluded interest payments.
Going
forward, Teves vowed to increase the pace of public
spending in the second half even as they endeavor to
lift revenue flows as well.
This
two-fold approach “will ensure continued social
protection for the poor while also ensuring we attain
our growth goal.”
This
year’s growth, or the gross domestic product, was
earlier forecast to range from 5.7 percent up to 6.5
percent or significantly lower than last year’s 7.2
percent.
Record
oil costs have led to higher prices of goods and
services, lifting customs collections and sales taxes,
Finance Undersecretary Gil Beltran said July 3. The
government is trying to boost spending on roads,
agriculture and fuel subsidies to help Filipinos cope
with the fastest inflation in 14 years.
“Tax
collection is better than expected,” said Simon Wong, an
economist at Standard Chartered Bank in Hong Kong.
Delays in public spending “will mean average people
could suffer and that could affect the growth outlook
for the year.’” |
