Finance Secretary Jose Isidro Camacho said yesterday the huge chunk of its financing program for next year will come from government’s increased utilization of official development assistance (ODAs) projects.
This will be in contrast to this year’s tack of financing the budgetary shortfall of P145 billion from domestic borrowings. The government‘s borrowing mix is currently 70 percent on local borrowings and 30 percent from foreign sources.
Camacho said that to ensure this year’s funding requirements, government already applied with the US Securities and Exchange Commission for its planned $800-million bond offering. This is in addition to an earlier registration of a $400-million bond offering entered into by the previous government.
Camacho said this will bring potential bond offerings to reach $1.2 billion which government can tap if necessary.
"This should give us the flexibility that we need but it does not necessarily mean that we will avail of the entire amount," Camacho said.
For next year, however, Camacho said government wants to modify its borrowing program and tap foreign funds through the ODAs.
"Government is trying to be more effective in tapping the ODAs, we hope to double the level of usage in terms of absolute amounts. There is an intention to expand the use of ODAs," Camacho said.
The Philippines has been a consistent recipient of ODAs but its donors have criticized the country for being too slow in disbursing funds coming from these sources.
Part of the problem is that government cannot provide for the required counterpart funding.
For next year though, Camacho said the national government already incorporated in its budget proposal for next year, the counterpart funding required by funding donors before the ODAs are released.
Malacañang already approved a proposed budget of P780.8 billion for 2002. This is 11.6 percent higher than the 2001 budget of P699.9 billion.