Spending to stay strong

PUBLIC SPENDING should remain strong in the second semester as the government undertakes reconstruction efforts following recent calamities, a Cabinet official said.

Spending up on funding threatGov’t subsidies dropDBM eyes unused allocationsGov’t told to hurry spendingSpending boost widens deficit to P22.8B as of May

“Recovery efforts will certainly be a factor in the second half. We will be rebuilding after the rains and floods, and we will also be mobilizing prevention projects for next year,” Budget Secretary Florencio B. Abad said.

The Philippines was battered by typhoons Gener (international name Saola) and Helen (international name Kai-tak), plus severe monsoon rains this month, with Manila, Central Luzon and Northern Luzon particularly affected.

According to the National Disaster Risk Reduction and Management Council, total damage to infrastructure and agriculture was P411.862 million for typhoon Gener, P125.13 million for typhoon Helen and P3.056 billion for the monsoons.

More than reconstruction, the government will also focus on disaster prevention especially as heavy rains and floods have become “routine and expected,” Mr. Abad said.

“We intend to build a tent city where these affected households can relocate in times of disasters. They will be assigned their own tents, and these will come with medical centers, toilet facilities, food terminals,” he said.

With this, families no longer have to occupy schools and government offices which are ill-equipped to house the displaced, Mr. Abad explained. Moreover, classes and government work need not be disrupted because buildings are being used as evacuation centers.

“This will not just be for the NCR (National Capital Region) but the whole country. It is a massive undertaking, but it is necessary to significantly cut costs of disasters and to minimize dislocation,” he said.

The complete disaster rehabilitation and prevention plan is still being finalized, though, the Budget chief said, with Cabinet meetings still ongoing. Talks are also being held with the United Nations Development Program, World Food Program and the Australian Agency for International Development.

“In a sense, it will not just be disaster relief and rehabilitation but also adaptation for the future. We no longer want a yearly panic,” he said.

The flood prevention projects are expected to be completed as early as January, well before the wet season begins in July. Procurement, meanwhile, will be undertaken this year.

The government, whose move to keep a tight watch on its finances led to below target growth last year, spent a record P162.558 billion in July.

Public spending now stands at P957.961 billion in the January-July period, jumping 15.1% from the P832.316 billion posted a year earlier.

The government still has room to spend some P881.739 billion from August to December, given its target of P1.84 trillion. –DIANE CLAIRE J. JIAO, Senior Reporter, Businessworld