Stimulus still to be fully used

JUST A LITTLE OVER HALF of a stimulus package has been disbursed by the government, which has just two weeks left in the year to spur the economy through public spending.

A total of P61.28 billion or roughly 85% of the P72.11-billion Disbursement Acceleration Plan (DAP) has been released to agencies and state firms as of Dec. 6, Budget department data showed.

Of this, only P41.66 billion has actually been spent, accounting for only 58.78% of the package that was approved back in September as state underspending resulted in disappointing economic growth.

The data belie recent government pronouncements that public spending would surge in the fourth quarter, moving the economy closer to growth targets for the year.

Gross domestic product (GDP) growth was just 3.6% as of the third quarter, well below the full-year target of 5-6% or the forecast of 4.5-5.5%.

Like before, government agencies displayed limited absorptive capacity as they struggled to keep up with their disbursements.

Government agencies and local government units were only able to secure the release of P34.33 billion from the DAP out of their total allocation of P45.16 billion. From this amount, just P6.78 billion was spent.

The Budget department, meanwhile, was able to release the entire P26.94 billion allocated for state firms. The amount has already been disbursed, with an additional P7.932 billion for the compensation of landowners under the agrarian reform program.

The department is working with government agencies to “seriously address” the bottlenecks in their fund utilization, Budget Secretary Florencio B. Abad said in a statement yesterday. He likewise assured that the implementation of priority government projects was closely being monitored.

Mr. Abad still proclaimed that the DAP was now in “full swing.” He cited notable disbursements such as infusions into the National Housing Authority (P11.05 billion), Home Guaranty Corp. (P400 million) and the Philippine Export-Import Credit Agency (P570 million).

Releases included P294 million to the Health department for the recruitment of nurses; P2.75 billion to local governments for a support fund; and P331 million to the Science department for the purchase of Doppler radars and the establishment of a meteorological center. –DIANE CLAIRE J. JIAO, Reporter, Businessworld