May Moody’s report knock sense into Aquino administration’s head

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Just before Christmas Day, a Moody’s Investors Service analysis of the Philippine economy was released. It says that domestic growth is being hamstrung by the Aquino administration’s weak use of its budget.

Moody’s says because the administration is not spending as much and as fast as it should, economic growth is constricted. And Philippine gross domestic product (GDP) likely grew by only 6.3 percent this year, below the government target of 6.5 percent to 7.5 percent.

Among the opportunities that the administration did not take advantage of to spur economic growth is the reconstruction of areas that were badly hit by Super Typhoon Yolanda. This alone proves that the Aquino administration is motivated more by its political goals than doing the best for the people.

After Yolanda hit the Philippines in November last year, it was obvious that its impact would be deep and vast. Moody’s points out that Philippine growth momentum in the first quarter of 2014 was adversely affected by the destruction caused by Yolanda. But the Aquino administration dilly-dallied on the reconstruction of the areas hard hit by the typhoon. The misery of the victims obviously mean nothing to the President and his men.


The Moody’s report says government consumption and public construction, which includes infrastructure development, fell by 1.6 percent year-on-year over the first three quarters of the year.

Moody’s says the government’s real GDP growth target of 7 percent to 8 percent for 2015 will be difficult to achieve if budget releases and use are not improved.

The economy is expected to grow by 6.5 percent next year, with the report saying that any benefits from infrastructure development will be reaped only in the medium- to long-term.

Manila Times commentaries have long faulted the corrupt and incompetent Aquino administration for not spending the money that it has the power to disburse legally—appropriated by Congress and allocated for the projects for which the budgets were created. But rather than do its work —according to the law and the rules—the President and his Budget Secretary have been choosing which projects to actually release money for. When they could not be sure that what they want to happen would or could, they choose to freeze the projects.

They insanely invented what they called the Disbursement Acceleration Program to justify their transferring money from allocated project appropriations to those they like because these are favorable to their political aims.

But the DAP, patently illegal and unconstitutional, was declared so by the Supreme Court. Since then they have been blaming the High Court’s correct and high-minded ruling to cover up their incompetent and malfeasant unwillingness to spend money—which would have created jobs—on good projects they don’t like.

Will this negative Moody’s report—which we have forecast in our columns and commentaties—at last trigger some action in the Aquino administration?

If the Aquino administration wants to at least look good next year, it should immediately put into full swing the reconstruction efforts of areas that were badly affected by Yolanda.

Because Tacloban City—more than half of which Yolanda destroyed—is the bailiwick of the Romualdez clan, Local Government Secretary Mar Roxas and the President have been cruel to it and its citizens whose homes and businesses were devastated. Their neglect of Tacloban, most of all, is ground for the PCOS-machine created President Aquino to be impeached.

But the gods of politics and bad governance have been allowed by the true God Almighty to favor Mr. BS with control over Congress\ and the affection of friends and relatives who control the popularity surveys and the largest mass media. So Mr. Aquino and his administration can continue being as incompetent and as uncaring of the common good without being punished.

We pray that reports by foreign organizations, like this one by Moody’s, knock some good sense into the President’s and his key associates’ heads.

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8 Comments

  1. The truth is it would be hard for Mr. Noynoy to do the right way in governance because he is always thinking that what he is doing is right. The people that surrounds him are the one doing the move and ideas and then praising him for the move as good. He is only taken advantage by this people. He is a very weak president. Most of his ideas is not from him even his daang matuwid, he is only riding on it. People can do nothing except to grumble on the present situation. Even the president supporters are affected though not much but admitted that the economy is much better on Pres. Eraps administration. Then economic difficiencies started when Pres. Gloria Arroyo took over when she forcibly increased the value added tax to 12 %. The tax was so good for the gov’t but unable to return benifits to the populations instead strangling the underprivelege due to high prices. People is now hoping for a change but 2016 though near it is still so far for people who are in limited income. Hopefully the administration will manage the 2015 budget for the country not for the politicians pocket. But peoples opinion say the budget will be mostly save for 2016 election.

  2. Ispirikitik-tik on

    They are incompetent. Sabi nga sa tagalog, nung nag-aaral mga ito e mga tulog a pansitan kaya walang alam sa economics. Tsk tsk

  3. francis melorin on

    In fairness, this Administration is just having a sense of being prudent and cautious to what the people entrusted to it. The President is very aware “boy sisi” is just around watching Pinoy.

  4. PNoy’s classic retort: “Moody’s Investors Service? Ngayun ko lang narinig yun, ah. Bagong computer game ba yun?”

  5. am sure your editorial would not be heeded by boy sisi and abadingding. if you will recall the 2015 budget is full of lump sum funds and according to reports here at manila times, half of the budget is lump sum funds of boy sisi and the dis honorable congs and sens allowed him, boy sisi, to declare savings at his own and abadingding’s whim and thus would form part again of boy sisi’s lump sum funds.

  6. Nothing good can be expected to come out from the minds of a politician appointed in bureacracy. As politicians, DBM Sec. Abad and DILG Sec. Roxas’ decisions will certainly be biased in favor of their political objectives, not inclined to foster on the economic goals. They may not accept the fact that consumption and government spendings are basic factors in economic growth. BSA lll, being a student in economics, should know these facts unless he skipped classes during his Ateneo days.

  7. Sa palagay ninyo papansinin niya ang Moody’s report. Hinding hindi! Ang alam ni Noynoy ay napakagaling niyang presidente at sinang-ayunan siya ng SWS/Pulse Asia na pag-aari ng mga kamag-anak niya at ng mga yellow media.