THE government did enough to spur a 6.6-percent economic expansion in 2012 even if it failed to meet its targeted public infrastructure spending last year by 18 percent. The Department of Budget and Management (DBM) reported that government infrastructure and capital spending amounted to P250.8 billion last year, or a sixth below the programmed P298.2 billion. Still, the amount was way above the state spending for infrastructure in 2011 at only P91.7 billion. The state think tank Philippine Institute for Development Studies (PIDS) earlier said the heightened public-sector spending in 2012 was a major contributor in the 6.6-percent gross domestic product growth last year. It noted that the Aquino administration cannot afford to repeat its spending policy in 2011 when the money spent by the government contracted by 2.1 percent, resulting in a slower 3.9-percent economic expansion. “Last year’s spending levels will buoy our growth strategy this year as we look forward to pouring more investments into infrastructure and capital outlay in 2013,” Budget Secretary Florencio Abad said. “The development of roads and bridges, for example—as well as ongoing initiatives to increase access to tourism hotspots and improve irrigation facilities—will help generate jobs and create thriving markets for local industries,” he added. Other expenditures items increased year-on-year, the DBM also said, citing the maintenance and other operating expenditures (MOOE) and personal services.
