BACOLOD CITY, Philippines鈥擴ndersecretary Mario Relampagos of the Department of Budget and Management said Friday the government is releasing P100.1 billion before the end of the year for infrastructure projects to pump-prime the economy.
Of the amount, P2.8 billion was released for infrastructure project in Western Visayas on Thursday.
Relampagos said the Department of Public Works and Highways planned to disperse P100.1 billion to spur the economy to higher levels of growth.
鈥淪o if we can achieve six or more percent growth for the last semester of the year on top of the 4.3 percent growth in the first semester of the year, we鈥檒l be averaging聽 about five percent growth for 2011,鈥� Relampagos said.
Relampagos was in Bacolod to address the 20th Visayas Area Business Conference and Expo.
He told reporters that there was a slowdown in government spending in the first semester of the year, not because of lack of funds but because projects in the pipeline needed to be reviewed.
Relampagos pointed out that each department reviewed the project in compliance with the policy of President Benigno Aquino聽 that 鈥渨e have the right projects with the right quality, right price and the right timing.鈥�
By reviewing the designs and costs structure of projects, they now cost less, enabling government to save money for the implementation of more projects, he added.
鈥淲e have just met with the President and heads of big departments of government on how to accelerate spending for the rest of the year,鈥� Relampagos said.
鈥淚f the private sector knows that the government is spending, it will have a favorable reaction that will hopefully create a multiplier effect that will result in faster growth,鈥� he added.
Relampagos said the Department of Agriculture will also release about P10 billion for farm-to-market roads before the end of the year, while the Department of Transportation and Communication will have its own releases.
Frank Carbon, president of the Metro Bacolod Chamber of Commerce and Industry, said the release of government funds was needed to pump-prime the economy.
He said the release of the funds should have been done in the second quarter of the year since the release of P100.1 billion for infrastructure could not be done in three months.
With the rains, he added, infrastructure work cannot be undertaken that fast.