The government plans to increase infrastructure spending within the next three years to sustain growth.
From the current four percent of GDP, infrastructure spending at P450 billion will be ramped up to five percent or P680 billion by 2016.
National Economic and Development Authority Deputy Director General Rolando Tungpalan said at the Arangkada Philippines Forum that in 2011, infrastructure spending was only equivalent to 2.6 percent of GDP, or P250 billion.
Last year was not any better since as of end November, spending for infrastructure reached P249 billion, or 2.4 percent of GDP, lower share since growth was bigger.
In absolute terms, infrastructure spending will amount to P599 billion in 2014, P638 billion in 2015, up to P680 billion in 2016.
The World Bank earlier said that government spending on infrastructure must be increased to five percent of GDP to be able to support the Aquino administration’s goal of inclusive growth.
“With the public private partnership (PPP) programs now rolling out, this 4 to 5 percent of GDP is easily attainable,” Tungpalan said.
Motoo Konishi, World Bank Country Director for the Philippines, earlier said that a coherent and efficient intermodal transport roadmap with backbone links to growth areas needs to be adopted through close coordination of line agencies.
Tungpalan said that in the past two and a half years of the Aquino administration, progress has been made in addressing infrastructure bottlenecks.
Specifically, Tungpalan said that there are already 61 NEDA Board confirmed/ICC approved projects under President Aquino’s term.
Tungpalan said that 70 percent of these are infrastructure projects amounting to about P425 billion.
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Source: Angela Celis, Malaya Business Insight, 27 February 2013
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