Gov’t aims to spend most of 2012 budget by end-June

MANILA, Philippines – In the aftermath of criticisms that underspending in 2011 resulted in a slump in economic growth, the economic managers are eyeing to release bulk of the 2012 budget in the first 6 months.

Budget Secretary Florencio Abad said this strategy would help agencies take advantage of the good weather to roll out infrastructure projects.

“In contrast to our previous year’s performance, we’re determined to make the bulk of our releases within the first semester of this fiscal year. This way, government agencies can take advantage of the good weather in the coming months for rolling out their projects, ahead of the opening of classes and the rainy season,” Abad said.

Abad also noted that, as of February, the Budget Department has released

• 91.3% of the 2012 budget–or P793 billion out of the P869 billion–earmarked for state agencies
• P425 billion of the P426.1 billion budget allocation for various departments’ personnel services, including salaries, allowances, and other personnel benefits, and pensions
• P217 billion or 92.5% of the P234.4 billion set for maintenance and other operating expenses (MOOE)
• 72.5% or P151 billion of the programmed P208.3 billion for capital outlay

Abad, however, gave assurance that standards for accountability and transparency in these releases are upheld.
 
“As much as we want to fast-track spending, we need to balance this out with agency due diligence and compliance, especially with respect to our standards for accountability and transparency,” Abad said.
 
Of the total budget of P1.8-trillion for 2012 program, the government has so far released 61% or P1.108 trillion. – Rappler.com