Fund delays dragged Q1 economy slower, Palace admits 

Delays in releasing funds for infrastructure spending caused the economy to grow at a much slower pace in the first quarter of the year, Malacañang admitted Thursday.

 

The 24.6-percent decline in construction spending in the first three months was a “significant contributory factor” to the economic slowdown, Communications Secretary Herminio Coloma Jr. told reporters at a press briefing.

 

“This is due to delays in actual disbursement of funds that are usually experienced at the start of the year,” Coloma said.

 

The Philippine Statistics Authority reported the economic output grew by 5.2-percent as measured by the gross domestic product in January to March, a pace much slower than the 5.6 percent a year earlier.

 

Coloma nevertheless said President Benigno Aquino III already directed government agencies “to accelerate the implementation of vital public infrastructure projects.”

 

The Palace official pointed out the President also issued Administrative Order 46, which ordered implementing agencies to pursue “prompt budget execution measures,” and enhance procurement efficiencies.

 

“He [Aquino] assures the citizenry that the government will exert intensive efforts to bring about the full fruition of reform and development programs that promote greater inclusion and sustainable long-term progress,” Coloma said. – VS, GMA News