CLARK FREEPORT – Budget and Management Sec. Florencio Abad said here that the government’s budget surplus of P26.258 billion in April must be coupled with “accelerated spending” of government agencies for infrastructure and social welfare projects to benefit the people.
Noting last April’s surplus reflecting a 910.31-percent increase over the P2.599-billion surplus posted in the same month last year, Abad noted that while the surplus could be attributed to higher revenues, some line government agencies have been noted to be “underspending.”
In an interview with Punto, Abad said that “part of the reason (for the budget surplus) is lower interest due to lower spending.”
“We will accelerate spending. We have already asked the different line departments to present a catch up plan,” Abad said during the groundbreaking for the P27 billion expansion of the plant of the Yokohama Tire Philippines, Inc. here.
Abad said that accelerated spending is expected to be implemented this June.
“To accelerate spending, the Department of Public Works and Highways (DPWH) has committed to bid out by June some P300 projects worth about P50 billion. That’s a huge addition to the expenditure program,” he said.
He also said the Department of Social Welfare and Development (DSWD) was already able to register last April some 82 percent of its 2.3 million beneficiaries under its Pro-Poor Program (PPP) and that it plans to hand out cash to 62 percent of them by the end of May.
Budget surplus normally results from more revenues than expenditures. Its effects on the economy depend to large extent on how the government uses the excess funds.
But Abad cited “delayed spending” have been noted n line government agencies with big budgets, as he cited the DPWH, the Department of Agriculture (DA) and the Department of Education (DepEd).
“Next year, we will not tolerate anymore lump sum allocations which are part of the reason for delayed spending. It takes about four to six months for government agencies to submit their proposed lump sum budgets,” he said.
He noted that government expenditures amounted to only P461.352 billion or 11.6 percent lower than the comparable disbursements in 2010.
The P26.2 billion surplus as of last April is much bigger than the P2.6 billion surplus as of April last year. The surplus last April was attributed in part to revenues of the Bureau of Internal Revenue (BIR), the government’s main revenue earner which generated P302.942 billion during the period.
The Bureau of the Treasury’s income amounted to P44.505 billion while collections from other offices hit P28.908 billion.
