Monday, 22 APnl2019

Daily Tribune

{ Economic cost to budget delay bared

Looks like we didn't spend a bit over PI billion per day
versus the program. (This) will definitely be a drag on
growth
By JGhur Lro uJ Pl blllion
the rolease of mors or loss
1.' a day in public funds for proiects
An obdurate Congress has cost the and programs that have wide-ranging
economy the opportunity to spend economic and social lmpact.
for optimal growth this year as the The unspent funds vastly exceeded
legislative recalcitrance limited the earlier estimates by Financo Secretary
ability of the economic managers to Carlos Dominguez III of only P46 billion
spend early, data frorn the Bureau of for the p€riod and highlighted the
Treasury (BTr) show. gravity of the impasse whoso impact
According ro the BTr, the economic was seen to limit the potential for
managers were effectively prevented susta.ined economic expansion,
from sp€nding more than P98 billion "Looks like wo didn't spend a bit
in the January-to-March quarter, a over Pl billion per day versus the
hefty sum that should have already program, (This) wiu definitely be a drag
produced benefits translating to grolvth on growth," Dominguoz said.
measured as the gross domestic In a report by National Treasurer
product down the line. Rosalia de Leon, national govemment
The le$slative war of wills prevented (NG) expenditures in March toialAd
only P28232'billion, an eight percent
d€memont from P313.06 billion speni
h the same montli a year ago.
Also, the disburpement of public
funds in March thisTyear proved lower
by 16 percent or only P64.61 billion
comparod to the pro#am crafted much
eailier by the Department of Budget
and Management.
The economic managors wone
effectlvoly proverded from
spendlng more than P98 billlonin
the January-tGMa.rch querter,
0n annual basis, the combined
tax and non-iax revenues for the
qua.rter amounted to an ll p€rcent
improYement from a year ago when
revenues totaled only P202.36 billion.
De Leon likewise told Dominguez
that in ihe first quarter this year, NG
revenues totaled P6827 billion as the
collection performance of the Bureaus
of Internal Revenue and of Customs
improved by 11 perceni and nine
percent, respectiYely.
The Development and Budget
Coordination Conmitiee (DBCC)
earlier estimated the economic cost
of a dblayed spending plan for the
$314 billion economy, pointing out
the obstinate refusal by legisld.tors to
resolve their difference 0f opinion on
a subject ofdeep economic importance
will impacr the cOuntry's economic
performance.
"The impact on economic growth
of reenacted budget is estimated at
minus 0.? to minus 0.9 percentage
points if the budget is reenacted
until April 2019, minus 1.4 to minus
1.9 percentage p0ints if until August
2019 and minus 2.1 to minus 2,8 ppt
under a full-year reenacted budget,"
the DBOC said.

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