P11-T public investment program seen to curb poverty incidence in PH
The Duterte administration’s plan to spend P10.98 trillion on public investments during its six years in office will ultimately lift 440,000 people out of poverty by 2022, the country’s chief economist said.
Socioeconomic Planning Secretary Ernesto M. Pernia said that of the total investment requirement under the updated Public Investment Program (PIP) 2017-2022, more than two-thirds or P7.36 trillion would be spent on infrastructure development.
The PIP spanning across 9,816 programs and projects will also cover public expenditures on social and culture (P1.94 trillion); agriculture and environment (P852.75 billion); governance, justice, macroeconomic policy and national competition policy (P466.3 billion); peace and security (P254.37 billion); and industry, services and innovation (P102.15 billion).
Raising public infrastructure spending during the six-year period will raise gross domestic product growth by an average of 0.7 percentage point yearly, such that the GDP level by 2022 will be 3.9 ppts higher, Pernia said, citing estimates of the National Economic and Development Authority (Neda), which he heads.
Also, higher infrastructure expenditures will generate 560,000 more jobs by 2022, the Neda chief said.
According to Pernia, increased infrastructure spending will create the most number of new jobs in the following sectors: construction; land transport; wholesale and retail trade; fabricated metal manufacturing; agricultural activities and services; administrative and support service activities; other service activities; education; communication, and poultry.
Bigger state spending on infrastructure will also benefit the following sectors by raising their gross value added: construction; wholesale and retail trade and maintenance and repair of motor vehicles; food manufacturers; land transport; nonbank financial intermediation; electricity; education; nonmetallic mineral products; accommodation and food service activities; and other service activities.
