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Infra spending to address decline in gov't expenditures

By Joann Villanueva

May 11, 2020, 9:43 pm

<p>Finance Secretary Carlos Dominguez III</p>

Finance Secretary Carlos Dominguez III

MANILA – Government spending, which fell below target in the first quarter of 2020, is expected to recover once the enhanced community quarantine (ECQ) is eased, Finance Secretary Carlos Dominguez III said.
 
Data released by the Bureau of the Treasury (BTr) Monday showed that government expenditures as of end-March this year totaled to PHP849.2 billion, 14.48 percent below the PHP993 billion programmed for the period.
 
This year’s first-quarter government spending, however, is higher than the PHP778 billion posted during the same period last year.
 
Authorities attributed the below-target spending to the implementation of the enhanced community quarantine (ECQ) to arrest further the rise of coronavirus disease 2019 (Covid-19) cases.
 
Dominguez earlier said they will not re-align budget for infrastructure projects to meet Covid-19 response requirements since financing for these projects will be the key to address the economic impact of the global pandemic.
 
“The shortfall in expenditures due to the ECQ will be made up for by the acceleration of Build, Build, Build project implementation upon easing of the ECQ,” he told journalists Monday.
 
The government aims to invest about PHP1 trillion annually for its priority Build, Build, Build program, which has long-term economic impact on the domestic economy.
 
Meanwhile, Dominguez said dividends submitted by the government-owned and controlled corporations (GOCCs) will be used to partially finance programs to address the impact of the global pandemic.
 
“(It Is) not to substitute for the shortfall in tax collections due to the postponement of the due date for paying income taxes,” he added.
 
The government extended the deadline for the payment of income taxes as well as other payments falling within the ECQ period, which started since last March 15 in Metro Manila and March 17 for the mainland Luzon, to allow individuals and companies leeway as the government limited the movement of persons outside of their homes as a Covid-19 precaution. (PNA)
 

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