Roxas: Consider it taxpayers’ cash well spent, not underspending

MANILA, Philippines—Transportation and Communications Secretary Manuel “Mar” Roxas II on Thursday lashed out at critics of the Aquino administration, saying that much of what was taken to be underspending was nothing more than prudent fiscal management at work.

Critics, as well as allies, of President Aquino blamed the current government for severely tightening its purse strings, which slowed down growth of the economy and forced officials to downscale fiscal targets for the year.

But Roxas explained that the fiscal efforts of different government agencies led to savings of billions of pesos in taxpayers’ money.

“I think the criticism is unfair,” said Roxas, Aquino’s defeated running mate and a senior member of the Cabinet’s economic cluster.

However, Roxas conceded that some government agencies would need to catch up in terms of spending according to their respective project expenditures.

Latest finance department data showed that in eight months to August the government’s budget deficit reached P34.5 billion—far lower than the P228.1 billion posted in the same period last year.

This was because expenses amounted to only P947.2 billion, about 8 percent below the P1.03 trillion spent in the same period last year.

Earlier this week, the administration unveiled a P72-billion stimulus package for the remaining months of the year to enable the government to cover lost ground in terms of spending.

Speaking at the 37th Philippine Business Conference and Expo in Manila, Roxas noted that money saved due to the agencies’ efficient fiscal management and lower debt servicing costs accounted for more than half of the shortfall in disbursements.

“Of the underspending, about P30 billion of that is due to lower interest costs,” he said. “Our interest expense has come down.… We did not have to spend for that interest. If that happened in your company, wouldn’t you give your CEO a round of applause instead of criticizing him?”

Another area where the government saved money was at the Department of Public Works and Highways.

“We were able to save P12 billion at the DPWH because we tightened our standards, improved bidding procedures and we reviewed all costs,” Roxas said.

Even with the lower spending, Roxas said, the DPWH was still able to build roads as planned.

He said the streamlining of the government agencies also helped the Department of Budget and Management to save about P30 billion in personnel costs.

“Yes, in some departments, spending can be accelerated, and we recognize that. That’s a fair observation,” Roxas said. “But let’s be fair. A big part, maybe half if not more, is because of virtuous cycle coming from the President’s actions. He is making sure taxpayers’ money is spent wisely and he should not be criticized for that.”