MANILA — The National Economic and Development Authority (NEDA) will propose the exemption of big-ticket infrastructure projects from the election spending ban in order to cushion the economic impact of the 2019 national budget's delayed passage, the country’s chief economist said on Monday.
“Mostly infrastructure projects especially those of national significance will be spared from the ban. I would expect the Comelec (Commission on Elections) to be more understanding of the re-enacted budget. The President (Rodrigo Duterte) might also help appeal to the Comelec that exemptions be given,” Socioeconomic Planning Secretary Ernesto Pernia said in media briefing.
Pernia said he will discuss with other economic managers during the Cabinet meeting scheduled on February 6 about a possible “blanket” application of the exemption covering all significant infrastructure projects, instead of allowing implementing agencies to apply for exemptions on a per project basis.
He said priorities include big-ticket infrastructure projects under the “Build, Build, Build” program.
“Yes, that’s part of the list but beyond that, there are also other projects. Today, we have 38 projects ongoing in different stages of implementation, these will be affected by the current budget,” he added.
Pernia added that allowing these infrastructure projects to continue during the election period could help soften the impact of a re-enacted budget.
He cited NEDA’s estimate that a re-enacted budget would result in a reduction of 1.6 to 2.3 percentage points economic growth rate in case the situation lasts for a year.
“If the re-enactment is only for one quarter, then (the reduction is only) one-fourth of that,” he noted.
The government has been operating under a reenacted budget since January 1 this year after Congress failed to pass the 2019 national budget on time due to allegations of “pork barrel” insertions. (PNA)
