Gov’t budget for 2013 seen to create 1M jobs

MANILA, Philippines—The proposed P2-trillion budget for 2013 is expected to create one million direct and indirect jobs, the chief of the National Economic and Development Authority (Neda) said Friday.

Economic Planning Secretary and Neda Director General Arsenio Balisacan described next year’s budget as “labor intensive” and “employment oriented.”

The budget department earlier said that the 2013 budget represents 16.8 percent of the country’s projected domestic product and is also based on a growth assumption of 6 to 7 percent.

In his State of the Nation Address last July 23, President Aquino said that almost 3.1 million jobs were generated within the past two years resulting in a decline in the unemployment rate.

“That’s the effect on the economy, the overall effect on the economy. Somehow, it should be able to create the same level of jobs, otherwise we will have a problem,” Balisacan said in an interview during the inaugural conference of the Angara Centre for Law and Economics.

The Philippine Development Plan for 2011 to 2016 targets the creation of one million jobs each year.

“The labor force is growing. They need more and more jobs every year, otherwise our poverty will worsen,” Balisacan said.

The House of Representatives started deliberations on the proposed national budget which involves higher allocation for infrastructure and for the conditional cash transfer program (CCT).

“I expect it to be labor-intensive because the budget involves more infrastructure and social services,” Balisacan added.

For 2013, the Aquino administration has set aside P409.8 billion for infrastructure outlays, including allocations for government-owned and controlled corporations.

The budget for the CCT was expanded to P44.256 billion to cover 3.8 million households.

The Department of Education will continue to receive bulk of funds with an allocation of P292.7 billion, followed by the Department of Public Works and Highways got the second-largest share at P152.9 billion.