2013 Budget boosts PHL bid for econ growth of up to 8.

5% in medium-term
http://w w w .gov.ph/2012/07/18/2013-budget-boosts-phl-bid-for-econ-grow th-of-up-to-8-5-in-medium-term/ July 19, 2012

A July 18, 2012 press release from the Department of Budget and Management DBM Chief: 25.5% of 2013 budget pegged for econ services; 20.4% for capital outlay The Aquino Administration has crafted a proposed 2013 Budget that supports rapid, inclusive and sustained economic growth by increasing the share of Economic Services to 25.5 percent or P511.1 billion. The growth of this allocationby 16.4 percent than the P439.0-billion allocation in 2012is the highest growth among other budgetary sectors (Annex A). Budget and Management Secretary Florencio B. Abad also announced that the allocation for Capital Outlaysincluding subsidies for government firms that are specific to infrastructurehas been increased by a whopping 20.8 percent to P409.8 billion or 20.4 percent of the 2013 Budget. Against other expense classes, Capital Outlays are expected to grow fastest (Annex B). Malinaw po ang Atas ng Taumbayan kay Pangulong Aquino: igugol nang matuwid ang bawat piso upang gawing mas mayabong, matibay at patas ang lokal na ekonomiya, tungo sa paglikha ng mas maraming trabaho at iba pang oportunidad para sa kanila (The Peoples Instruction to the President is clear: spend every government peso properly to create a robust, resilient and inclusive economy that creates jobs and other opportunities for them), he said. These budgetary allocations will boost investments in strategic centers of growth, such as transport and other public infrastructure; agriculture, fisheries and agrarian reform; tourism development; and business process outsourcing (BPO), he said. Towards the paving of all primary national roads by 2014 and all secondary roads by 2016, the Department of Public Works and Highways will receive P106.5-billion for the construction and maintenance of roads and bridges. The Department of Transportation and Communication will also implement P22.1-billion worth of airport, seaport and railway development projects. The 2013 Budget supports the attainment of food self-sufficiency in rice by next year by investing a total of P15.3 billion in the banner rice, corn, fisheries and coconut programs of the Department of Agriculture; P27.3 billion for the generation, restoration or rehabilitation of irrigation systems in a total of 216,163 hectares of farm land; almost P7 billion for the construction of 750 kilometers of farm-tomarket roads; among others. Meanwhile, the 2013 Budget intensifies implementation of the Comprehensive Agrarian Reform Program by earmarking P6.1 billion for land acquisition and distribution and P5.7 billion for program beneficiaries development. To meet the tourist arrival target of 10 million by 2016 and 5.5 million by next year, the 2013 Budget invests P12 billion for the construction and upgrading of access roads to strategic tourist destinations; P3.5 billion for the construction and upgrading of 15 airports and nine ports and wharves to tourism sites; and P1.25 billion for the Its More Fun in the Philippines branding campaign. To ensure a quality workforce not only for the BPO sector but also for other high-growth industries, the 2012 Budget hikes government subsidies for State Universities and Colleges by a whopping 46.7 percent to P34.9 billion; and increases the budget of the Technical Education and Skills Development Authority by 8.5 percent to P3 billion. The Budget Chief meanwhile said that the national governments debt and the downside risks that

come with it are being kept in check. The fiscal deficit, for one, will be reduced to two percent of GDP by 2013, from this years program of 2.6-percent. The burden of debt servicing in national finances is also expected to ease in 2013, with the share of interest payments in the National budget going down to 16.6 percent from 18.3 percent in 2012. Interest payments next year will be equivalent to 2.8 percent of GDP, from 3.0 percent in 2012. Annex A: Allocation by Sector of the 2013 Empowerment Budget

PARTICULARS

Levels (Php Billion) 2012 Program 2013 Proposed 510.9 698.4 89.7 346.1

Percent Share 2012 Program 24.2 33.8 4.8 17.6 2013 Proposed 25.5 34.8 4.5 17.3

Increase/(Decrease) Amount Percent

Economic Services Social Services Defense General Public Services Net Lending Debt Service Total

439.0 613.4 87.2 320.3

72.0 85.0 2.5 25.7

16.4 13.9 2.9 8.0

23.0 333.1 1,816.0

26.5 333.9 2,006.0

1.3 18.3 100.0

1.3 16.6 100.0

3.5 0.8 190.0

15.2 0.2 10.5

Annex B: Allocation by Expense Class of the 2013 Empowerment Budget

PARTICULARS

Levels (Php Billion) 2012 2013 1,599.5 641.3 313.3

Percent Share 2012 80.7 32.7 14.7 2013 79.7 32.0 15.6

Growth Rate

CURRENT OPERATING EXPENDITURES Personal Services MOOE

1,464.7 593.5 266.6

9.2 8.1 17.5

Subsidy Allotment to LGUs Interest Payments Tax Expenditure Fund CAPITAL OUTLAYS* Infra. and Other CO Equity Capital Transfers to LGUs CARP LO Compensation NET LENDING TOTAL *Memo Items: Capital Outlays Add: Infra Subsidy for GOCCs TOTAL ADJUSTED CAPITAL OUTLAY

19.7 218.6 333.1 33.0 328.3 252.4 2.1 71.3 2.5 23.0 1,816.0

42.3 241.8 333.9 26.9 380.0 296.7 2.0 76.3 5.0 26.5 2,006.0

1.1 12.0 18.3 1.8 18.1 13.9 0.1 3.9 0.1 1.3 100.0

2.1 12.1 16.6 1.3 18.9 14.8 0.1 3.8 0.2 1.3 100.0

114.3 10.6 0.2 (18.6) 15.7 17.5 (2.7) 6.9 100.0 15.2 10.5

328.3 11.0 339.3

380.0 29.8 409.8

18.1 0.6 18.7

18.9 1.5 20.4

15.7 172.0 20.8

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