Business Mirror, 18 July 2012
he country’s economy as measured by gross domestic product (GDP) could grow by an additional 2 percent each year if the government managed to bid out and implement all of the big-ticket projects under the Aquino administration’s public-private partnership (PPP) initiative, a finance official said on Wednesday.
According to Finance Undersecretary Gil Beltran, the country’s GDP, which grew by a surprising 6.4 percent in the first quarter, could have been higher if only the PPP Program, which includes large infrastructure projects needed by the country, were implemented during the first two years of the Aquino administration. GDP is the total value of goods and services produced in a country in a year.
He said the government’s original forecast was that the program would push the economy by at least 2 percent.
“Our main growth came from the private sector. But the private sector is also waiting for the government to create more infrastructure projects to push for more growth,” Beltran added.
The government earlier listed 10 projects to be undertaken under the PPP initiative of the Aquino administration. Halfway into the term of President Aquino, however, the government managed to bid out only one project—the P1.95-billion Daang Hari-South Luzon Expressway Link Road Project.
“Our GDP growth rate is high because the private sector is spending a lot,” Beltran said.
The Department of Budget and Management said the proposed 2013 budget of P2 trillion could push the country’s GDP growth to 8.5 percent in the medium term.
This budget “will boost investments in strategic centers of growth, such as transport and other public infrastructure, agriculture, fisheries and agrarian reform, tourism development and business-process outsourcing,” Budget Secretary Florencio Abad said.
To meet the tourist-arrival target of 10 million by 2016 and 5.5 million by next year, Abad added, the 2013 budget sets aside P12 billion for construction and rehabilitation of access roads to strategic tourist destinations; P3.5 billion also for construction and rehabilitation of 15 airports and nine ports and wharves; and P1.25 billion for the “It’s More Fun in the Philippines” branding campaign.
The burden of debt servicing in national finances is also expected to ease in 2013, with the share of interest payments in the national budget going down to 16.6 percent from 18.3 percent in 2012. Interest payments next year will be equivalent to 2.8 percent of GDP, from 3 percent in 2012.
