MANILA, Philippines - The Department of Budget and Management (DBM) is confident the Philippine economy can grow faster in the fourth quarter of the year, after expanding by 6 percent in the third quarter.
“We have now the momentum after a slow start in the first quarter at 5 percent, recovery in the second quarter at 5.8 percent, and sustained growth in the third quarter. It’s still possible to grow at 6 percent for the whole year of 2015,” Budget Secretary Florencio “Butch” Abad said.
Abad said public spending will play an important role in the fourth quarter, as it did in the previous quarter.
"Historically, Q4 has always been a strong quarter in terms of public spending as agencies rush to finish their projects. Because of the reforms introduced, like the elimination of the need for SAROs (Special Allotment Release Orders), the significant reduction of lump sums and the advance procurement of goods and services, the DBM is certain to match its yearly average of 98 percent releases. As of end September, 96 percent of agency budgets have already been released,” he said.
Abad said the pressure to finish infrastructure in the run up to the May 2016 elections will further boost spending.
"Performance is always an election platform and political leaders demonstrate that through the delivery of social services and public works projects,” he said.