MANILA, Philippines - The Department of Budget and Management (DBM) has so far released P69.3 billion of its stimulus program to state agencies as of end-December 2011, the agency said yesterday.
The amount accounts for 96 percent of the P72.11-billion Disbursement Acceleration Plan (DAP).
In a statement, Budget and Management Secretary Florencio Abad said that P53.8 billion or 77.5 percent has been disbursed to government-owned and controlled corporations beginning Oct. 12 when President Aquino approved the acceleration program.
Abad said the Budget department has released P8 billion from Dec. 6 to 29 to different agencies to boost spending.
The government’s under-spending has been largely blamed for the lackluster economic growth last year.
For 2012, the Aquino administration is raising to P85.5 billion its DAP from the current P72.11 billion.
“President Aquino has augmented the DAP with an additional P13.4 billion, bringing the total available releases to P85.5 billion. The added funds will help scale up government spending and strengthen the national economy for fiscal year 2012,” he said.
The additional fund will come from the pooled savings from the 2011 General Appropriations Act (GAA).
“The amount is targeted to provide new activities which have not been anticipated during the preparation of the budget, as well as to augment additional requirements for on-going priority projects. It will also provide for deficiencies under the Special Purpose Fund, including the Calamity Fund and Contingent Fund, and augment the much-reduced internal revenue allocations for local government units,” Abad said.
Data from the Budget department also showed that as of end-December 29, the government’s allotment releases for the P13.4-billion additional funding amounted to P11 billion, with P7.6 billion or 68 percent in actual disbursements.
“Meanwhile, of the original P72.11 billion DAP, cash releases by the end of December amounted to P58.0 billion, with actual disbursements of P53.8 billion,”Abad said.
Former Budget and Management Secretary Ben Diokno said the government needs to step up spending for infrastructure this year to boost economic growth.
Under-spending by the government and global uncertainties continued to drag economic growth in the third quarter of 2011, with gross domestic product (GDP) expanding by only 3.2 percent from 7.3 percent in 2010 and from the revised 3.1 percent recorded in the second quarter of 2011.