Flood control projects get P1.34B funding

The Department of Budget and Management (DBM) has released this month P1.34 billion to fund various flood-control projects.

In a statement, DBM said the disbursement in August put the total disbursements this year for flood-control projects to P5.16 billion.

“These projects are urgently needed to mitigate flooding in low-lying areas and to prevent damage to pedestrians, motorists, and public and private enterprises,” Budget Secretary Florencio Abad said in a statement.

Of the P1.34 billion, a substantial portion was cornered by Region IV-A (Calabarzon) and Region V (Bicol Region), which got P464 million and P307.60 million, respectively.

Last week, Abad said the DBM was ordered to accelerate spending in the second half to help achieve the growth target for the economy, as first-half spending fell way below programmed levels.

Expenditures for the period amounted to only P698.87 billion, even if the spending program allowed the government to disburse as much as P838.55 billion.

The underspending allowed the government to post a budget deficit of only P17.23 billion compared with the P152 billion allowed under the fiscal program.

The lower deficit helps improve the credit image of the country, but it also prevents the economy from reaching its growth potential, economists said.

They said the economy, which grew by 4.9 percent in the first quarter from a year ago, could have grown much faster had the government spent according to program.

The government aims to grow the economy this year by 5 to 6 percent.

Abad said that the DBM will fast-track spending in the last few months of the year, but will make sure that the full-year deficit will stay below the limit of P260 billion.

Read more...