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DESPITE President Arroyo’s order to jack up public expenditures,
government agencies have been under spending or delaying the
implementation of infrastructure projects, a source from the Bangko
Sentral ng Pilipinas (BSP) said.
As a result of this under spending, the
Development and Budget Coordinating Committee in its latest meeting
failed to finalize guidelines for next year’s budget, the source
said.
The source said one agency has delayed
implementation of an infrastructure project, which holds P2 billion
that could support employees’ salaries.
As local agencies recorded under spending, the
government is under no pressure to seek $500 million in fresh
commercial borrowings, the source said.
“The Department of Finance has not submitted
[to the Monetary Board] any program for the commercial borrowing
plan. Why do they need to borrow if they will continue to under
spend?” source said.
Under the government’s updated Comprehensive
and Integrated Infrastructure Program for 2007 to 2010, the National
Economic and Development Authority said the transportation sector is
supposed to take up a major chunk of public funds at P753.24 billion
for 521 projects, followed by the power sector with P527.05 billion
for 206 projects, and the water sector with P425.66 billion for 270
projects.
The program contains the priority infrastructure
projects of the Arroyo administration.
The rest of the allocation is for social
infrastructure with P203.97 billion for 150 projects, communications
with P63.07 billion for 30 projects, lending programs with P27.73
billion for 27 projects, and support for agrarian-reform communities
with P25.47 billion for 24 projects.
The same source said the government may also
incur a lower budget deficit this year if the under spending
continues.
The Department of Finance earlier said the
government may end the year with a budget deficit of P75 billion
assuming that the planned expenditure hike is met. The President’s
directive to raise public spending has forced the government to push
back its plan to balance its budget from this year to 2010.
The government’s budget deficit reached P18.8
billion in the first five months this year, lower than last year’s
P41.8 billion. Expenditures posted a slight increase of 5.2 percent
at P501.2 billion.
Finance Secretary Margarito Teves earlier said
the government will continue to increase spending in the remaining
months of the year, as it plans to sell more assets.
The official said the Finance department expects
the state’s shareholding in Petron Corp. to be sold before
November this year.
He said the government wants to get the
“premium” price for its stake in Petron.
-- Maricel E. Burgonio
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