Heavy infra spending needed to generate more jobs for Filipinos – Senator Drilon
MANILA, Philippines – More employment will open for Filipinos in the country when the government starts spending the remaining P1.012 trillion authorized disbursement program for the rest of the year, Senator Franklin Drilon said on Tuesday.
Drilon noted that out of the total P1.711 trillion authorized disbursement, the government has only spent P698 billion for the first six months of the year.
“The government should spend in accordance with the authorization within the 2nd semester, and reach the program level of P300 billion in deficit,” said Drilon.
He added that by the admission of Budget Secretary Florencio Abad, the government would have to spend P1.012 trillion in the next six months.
“It’s a very difficult task,” acknowledged the senator.
But because the government has mandatory spending requirements like the salary, internal revenue allotment, and interest payments amounting to some P613 billion, Drilon said only P399 billion will be left for non-mandatory items such as infrastructure, capital outlays and other maintenance and other operating expenses.
Drilon warned that the government’s under-spending would have adverse effects on the country’s gross domestic product.
“Because when the government under-spends, the economy generates less jobs because of lack of infrastructure spending,” he explained.
So it is important that the government spends more, particularly in infrastructure, given the expected downturn in the US economy, which will affect the country’s export industry, he said.
“We must be able to generate domestic economic activity through public spending so we can generate more jobs within the economy,” Drilon added.
