PALACE:  THERE'S NO NEED TO REDUCE BUDGET FOR 2012

MANILA, JUNE 21, 2011 (MALAYA BUSINESS INSIGHT) Malacañang yesterday told lawmakers that there is no need to cut the proposed 2012 national budget because the government is already accelerating current spending.

Secretary Ramon Carandang  (photo) of the Presidential Communications Development and Strategic Planning Office said the government underspent in the first quarter because it reviewed project and program costs.

Carandang said the evaluation has ended and the government has started accelerating its spending in the second quarter.

The Palace has been promising higher growth starting in the second quarter, after growth of 4.9 percent in the first quarter.

Isabela Rep. Rodolfo Albano Jr. (Lakas-Kampi-CMD) has warned of budget cuts in the 2012 budget due to the government’s underspending and its failure to pump prime the economy.

Albano said departments and agencies should not ask for higher budgets when they cannot spend them.

The House minority has claimed that business optimism is falling because of the Aquino administration’s failure to spend on infrastructure and other national projects.

Albano said the government failed to spend P100 billion or 17.8 percent of the programmed P561.36 billion spending from January to April. Expenditures are set at P407 billion in the second quarter.

The government’s planned budget for 2012 is 8 percent to12 percent higher than this year’s P1.645 trillion.


Chief News Editor: Sol Jose Vanzi

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