2012 budget to give priority to social services, infra projects, says Abad

MANILA, Philippines – Spending on social services and infrastructure will be the priority in the government’s 2012 budget, Budget and Management Secretary Florencio Abad said yesterday as he expressed optimism President Aquino would approve next year’s financing plan.

Abad said the P1.8-trillion expenditure plan for 2012 — which will increase from eight to 12 percent year-on-year — will still be consistent with the government’s fiscal consolidation efforts, reducing the fiscal deficit from 3.2 percent of gross domestic product (GDP) this year to 2.6 percent in 2012.

“The social services sector will continue to receive the lion’s share of more than 30 percent of the national budget, or more than P500 billion. To support escalated efforts for social protection, basic education and public healthcare, the sector will receive a budgetary increase of eight to 12 percent,” he said.

Along this line, the economic services sector will receive about a quarter of the total budget, or more than P400 billion.

As such, infrastructure and other capital spending will increase by 20 percent.

A reduction in the debt burden of two to four percentage points is also part of the 2012 budget, Abad said.

In formulating next year’s budget, Abad said the government remained committed to the zero-based budgeting approach which seeks to eliminate to be irrelevant or inefficient or not in sync with the Aquino administration’s social program. –Iris C. Gonzales (The Philippine Star)