Philippines hikes spending

While the countries in the west have been setting up their austerity plans, the Philippines is hiking its actual spending. When the Aquino government reported its fiscal status in May, the focus is not on the P20 billion deficit (which brings the 5-month total to P22.8 billion) but on the total expenses for the month: P151.3 billion. This actual spending is not only the biggest for the year but the most significant since the Aquino government promised to make up for not spending funds already approved and allocated. The government held back spending on infrastructure, which in turn was supposed to spur economic growth, to rid the process of irregularities. Infrastructure spending is typically higher during the months preceding the rainy season.

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