Fund delays big factor in economic slowdown – Palace
FUND delays in public construction spending had a significant contribution to the slowdown of economic growth for the first quarter, Communications Secretary Herminio Coloma said on Thursday.
READ: Philippine economic growth slows to three-year low
“A significant contributory factor to the slower growth is the 24.6 per cent decline in public construction spending,” he told reporters in a press briefing.
He said this was due to delays in actual disbursement of funds that are usually experienced at the start of the year.
The first quarter domestic product growth rate slowed down to 5.2 percent, lower than the 5.6 percent expansion in the same period last year.
Coloma said the President has already directed various department agencies “to accelerate the implementation of vital public infrastructure projects.”
“Among these agencies it is noteworthy that the [Department of Public Works and Highways] has posted the highest utilization rate of obligated appropriations,” he said.
He also noted that the President issued the Administrative Order 46 last March, which would implement prompt budget execution measures, enhancement of procurement efficiency and establishment of a full-time delivery unit.
While it has not attained its first quarter target, Coloma said they are confident that they will reach the year-round target of 7-8 percent.
