Wednesday, December 22, 2010

Unreasonably Prudent Spending caused Government Non-Performance

PNOY: "Prudent spending helped Philippines meet deficit target for 2010". PETALCORIN: Mali yan. Dapat "Unreasonably Prudent Spending caused Government Non-Performance". Kung may surplus sa 2010, ibig sabihin your team were not able to spend. That explains non-performance. That explains EXTREME Metro Manila Traffic congention that onset during your term -- na kung maalala mo ang sinisisi mo ay budget.

Sinungaling etong Benigno Aquino Administration na eto. Ang sabi eh kailangan daw ng pera para sa solution sa NCR Traffic Congestion at wala daw pera na iniwan ang GMA Administration. Ehhh ayan ohh meron palang P400M na nakatiwangwang na hindi ginagamit. Napaka-siningaling talaga nitong si PNoy.


Prudent spending helped PH meet deficit target for 2010 – Aquino

Prudent spending and belt tightening measures helped the Aquino administration meet its deficit target for 2010.

In an interview after giving cash awards to the wounded soldiers confined at the V. Luna Hospital, President Benigno S. Aquino III said the country will experience a budget surplus, “the third and probably the best this year.”

The President disclosed that the National Economic Development Authority board met Monday to review projects proposed for implementation in the coming months.

“I asked for the specifics of two or three projects to determine if some have to be changed,” he said.

The President proposed programs under the Department of Agriculture headed by Secretary Proceso Alcala are evaluated on the basis of cost-benefit analyses and whether they meet the economic targets. If they do not match
the goals and expected outcomes, then Alcala does not push through with them,” he said.

According to the President, the right way of using public funds enabled the government to fix the fiscal position of the country.

The President said he was told that the 2010 deficit will actually be below what has been projected and this is because of the savings obtained from belt tightening and prudent spending.

“I always question the need for undertaking any foreign trip. I always ask what would be the return on investment of the trips to the Filipino people.
If we can’t fully justify the cost of a certain travel abroad, I forgo it,” he said.

His training in the private sector, according to the President scrutinize investments versus returns. “Kung walang return sa taumbayan, hindi okay,” he said.


A December 21, 2010 press release prepared by the Department of Budget and Management

The national government has achieved a budget surplus of P482 million in November due to a combination of improved revenues and judicious public expenditure management, Budget and Management Secretary Florencio B. Abad today said.

“With positive developments in both the revenue and disbursement fronts, I could confidently say that we will most likely achieve our full-year deficit target of P325 billion,” he said, noting that the cumulative 11-month budget deficit stands at P269.8 billion.

Abad said revenues from January to November grew year-on-year by 8.1% or P83.1 billion to P1.1048 trillion, on account of increased collections of the Bureau of Internal Revenue (BIR) by 10.5% and by the Bureau of Customs (BOC) by 15.9%. In November alone, collections of the BIR grew by 17.8%—the highest monthly growth it has achieved in 32 months—and of BOC, 14.1%.

The budget secretary also announced that the disbursement performance of the national government from January to November this year has been P92.3 billion or 6.3% below the P1.4669-trillion programmed disbursements for the period. In November alone, the national government spent below the month’s target of P133.3 billion by P22.2 billion or 16.7%.

“The situation is brighter: we are not only more certain that our full-year deficit will be met, with enough spending room for our last month. I stress that we are also on the road towards a government driven by efficient and effective spending,” he said.

He notes that of the balance of P135.9 billion that remains available for the rest of the year, P72.2 billion are considered discretionary appropriations for maintenance and capital spending, which can still be utilized or saved in December, or deferred to 2011 depending on developments in the revenue front. Of the P1.5406-trillion obligation program for the year, P1.4047 billion of allotment authorities has been issued as of November.

Abad said that while the national government spent below target for the period, this will not compromise economic growth as the disbursement performance this year is still higher year-on-year. Disbursements from January to November this year is higher by P80.4 billion or 6.2% compared to P1.2942 billion spent by the government in the same period last year.

In particular, spending on infrastructure and other capital outlay expanded year-on-year by P5.7 billion or 2.9% to P200.7 billion. While this growth is slower compared to the first nine months’ 9.5% growth, the obligation program for infrastructure and other capital outlays in 2010 was lower than in 2009.

Meanwhile, maintenance and other operating expenditures (MOOE) increased by P9 billion or 6% to P158.8 billion due to increased spending on pro-poor programs such as the conditional cash transfers. The rate of spending on MOOE has also been normalizing over the last months after its 25.2% growth as of June and 13.4% growth as of September.

The lower-than-target disbursements during the period were mainly due to the following:

* Lower infrastructure and capital outlay spending by P26.7 billion or 11.7%, given the smaller funding requirement as releases for public works projects have been frontloaded in the first half. The lower-than-target disbursements were largely due to lower-than-expected billings for public works projects during the second half;

* Lower MOOE by P18.7 billion or 10.5%, which was, among others, due to:

o the deferment of the allocation for the premium subsidy for indigents under the National Health Insurance Program, given the sufficiency of funds of the Philippine Health Insurance Corporation;

o the deferment of the allocation for the purchase of blank passport booklets, given the adequate stock of blank passport booklets in the Department of Foreign Affairs;

o the non-release in the allocation for the Malusog na Simula, Yaman ng Bansa Nutrition Program of the Department of Education after the decision to scrap the program;

* Lower personnel service releases by P21.1 billion or 4.8% due to lower-than-projected claims for retirement, gratuity and terminal leave benefits, as employees deferred retirement so the Salary Standardization Law 3 increase could be credited; and lower-than-programmed releases from lump sum items and other compensation;

* Under-spending in net lending for government-owned and -controlled corporations worth P2.9 billion, given lower-than-expected advances from the national government.

* Interest payment savings worth P18.8 billion or 6.4% below target due to reduced borrowing costs with the lower foreign exchange rates and interest rates of P43.50-per-dollar and 1.9% in November, compared to the assumed rates of P47-per-dollar and 6%.


MMDA budget cut could make traffic jams, flooding worse - Tiangco
By Paolo Romero (The Philippine Star) Updated December 07, 2010 12:00 AM

MANILA, Philippines - Navotas Rep. Toby Tiangco warned yesterday Metro Manila may find it harder to cope with floods and traffic after Congress failed to restore the huge cuts in the proposed budget of the Metropolitan Manila Development Authority (MMDA) made by MalacaƱang.

Tiangco, chairman of the House committee on Metro Manila development, said the MMDA can hardly be expected to fulfill its functions if it does not have the proper funding.

The proposed 2011 budget of the MMDA had been reduced by Budget Secretary Florencio Abad by more than half from the P2.076 billion in 2010 to a mere P981 million for 2011. This has not been restored during the budget hearings in the House despite Tiangco’s manifestation.

He said the MMDA has already stated on record that they have full responsibility over the flood control program for Metro Manila, as well as the traffic management and garbage disposal.

“And as a sign of their good faith the MMDA have been carrying out their work despite the fact that release of the amount of P730 million for their 2010 budget is delayed by three months,” Tiangco said.

Tiangco appealed for the release of the cash allocation of the MMDA for 2010 as soon as possible. MMDA chairman Francis Tolentino earlier wrote Cavite Rep. Emilio Abaya, chairman of the House committee on appropriations, last Nov. 2 on the matter.