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Philippines' Duterte speeds through $80 bln 2020 budget, spending up 12%

Published 01/06/2020, 04:52 PM
Updated 01/06/2020, 04:56 PM
Philippines' Duterte speeds through $80 bln 2020 budget, spending up 12%

MANILA, Jan 6 (Reuters) - Philippines President Rodrigo
Duterte on Monday signed a record 4.1 trillion peso ($79.97
billion) budget for this year, ensuring timely funding for an
infrastructure overhaul in one of the fastest growing economies
in Asia.
Horse-trading in Congress delayed last year's budget
approval by four months, weighing down the Southeast Asian
nation's economic growth.
Total spending was 12% higher from 3.66 trillion pesos in
2019. Of this year's budget, 38% was allotted for education,
healthcare, housing and social welfare; 29% for infrastructure,
tourism, trade, job generation and agriculture; and 11% for debt
payments, Duterte said.
The Philippine leader had pledged to usher in the "golden
age" of infrastructure by upgrading ageing airports, seaports,
roads and railways.
His $180 billion "Build, Build, Build" initiative aims to
lift millions out of poverty and spread growth in the provinces.
But the infrastructure plan was modified after authorities
admitted that several big ticket infrastructure projects, like
inter-island bridges were not feasible. The timely budget approval bodes well for the economy,
allowing it to fund much-needed infrastructure projects early in
the year, said Michael Ricafort, an economist at Rizal
Commercial Banking Corp. "We now have catch-up spending
especially on infrastructure."
The government is targeting an economic growth of 6.5%-7.5%
this year. A government inter-agency last month cut its growth
target for 2019 to 6.0%-6.5% from 6.0%-7.0% to reflect weak
economic activity in the first half. = 51.27 Philippine pesos)

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