Gov’t ups spending for roads, bridges

MANILA, Philippines - Government spending for roads, bridges and other public works grew 33.9 percent to P182.6 billion in the first nine months of the year as part of the Aquino administration’s efforts to keep pace with its regional neighbors and sustain its growth momentum.

The latest amount accounts for 13 percent of the government’s total disbursements from January  to September amounting to P1.368 trillion, which is 11.8 percent more than the P1.22 trillion spent in the same period last year.

It covered road projects of the Department of Public Works and Highways, the implementation of flood control and drainage projects, rehabilitation of pumping stations to mitigate flooding in Metro Manila,  and farm-to-market roads and irrigation projects of the Department of Agriculture.

 â€œOur continued drive for efficient public spending, particularly for infrastructure and capital outlay, has shown consistent year-on-year improvements over the last three quarters. We are looking to further boost our investments to this end and minimize infrastructure gaps by the end of the year to facilitate greater economic expansion-one that is inclusive and brings tangible benefits for all Filipinos,” Budget and Management Secretary Florencio “Butch” Abad said.

Weak and inadequate infrastructure  along with the government’s failure to transform protectionist policies and liberalize more sectors, have long been cited by foreign investors  as among the biggest problems  in doing business in the  Philippines.  These factors have likewise contributed to the country’s high unemployment rate.

Government officials estimated that the the country would need to raise infrastructure spending from around 2.5 percent of GDP (gross domestic product)  to five or seven of the national output or by about P300 billion to P500 billion a year to register further growth.

The Philippines has increased public spending in recent years due to faster economic growth, shedding its reputation as the sick man of Asia.  The economy has expanded above seven percent for a fourth straight quarter,  bucking a regional slowdown to remain one of Asia’s economic bright spots.