The government has significantly increased its infrastructure budget for 2014 to help meet the reconstruction needs in areas devastated by Supertyphoon “Yolanda.”
Data from the Department of Budget and Management showed that under the 2014 national budget, the state would spend P431.65 billion for capital outlays, up by 32.6 percent from this year’s budget for the same.
The infrastructure budget for next year was also higher than the P420 billion proposed earlier.
“Infrastructure spending is a key priority in the 2014 budget. We want to make sure reconstruction activities move forward,” Budget Secretary Florencio Abad told reporters.
Of the amount earmarked for infrastructure next year, about P100 billion would be for the reconstruction activities in areas affected by calamities such as Central, Eastern and Western Visayas.
The allocation for infrastructure spending next year accounts for 19 percent of the P2.265-billion national budget that President Aquino signed last week, up from 16 percent this year.
This year’s national budget is P2.006 trillion, of which P325.64 bilion was earmarked for infrastructure.
Supertyphoon “Yolanda” not only led to the death of thousands of people but also to substantial economic losses.
According to an assessment report released by the National Economic and Development Authority (Neda), the total value of damage and losses brought about by the supertyphoon reached P571 billion.
The Neda also said the government’s recovery plan would require P360.8 billion in funding.
The amount covers the cost of reconstruction of public infrastructure and government facilities and rebuilding of shelter for the affected families.
The Neda estimated that economic growth in the fourth quarter might slow down to between 4.1 and 5.9 percent as a result of the calamity.
In the first three quarters, economic growth averaged 7.4 percent, which was one of the fastest in Asia.
The Neda said the government was aiming for the immediate implementation of the recovery plan.
It said the government was keeping the official economic growth target for 2014 of 6.5 to 7.5 percent.