Connect with us

Hi, what are you looking for?


Efficient spending seen needed to plug infrastructure gap

ADDRESSING the Philippines’ infrastructure shortcomings will require more efficient åment of rigid institutional processes to clear up the project pipeline, ANZ Research said.

“Based on past trends, the Philippines lags in efficient public investment. We are hopeful though that the presidential elections next year and the current slow growth trajectory will push the government to improve the efficacy of the investment management process,” ANZ Research Chief Economist for Southeast Asia and India Sanjay Mathur and economist Kanika Bhatnagar said in a note.

ANZ Research compared the Philippine infrastructure gap to those of India and Indonesia, which have inherent “institutional rigidities” obstructing public investment.

“What is less understood is that these shortcomings can be overcome not just by spending more on infrastructure but also making spending more efficient so that delays and cost overruns are minimized,” they said.

In 2020, infrastructure spending declined 22.7% to P681 billion, according to preliminary data from the Department of Budget and Management. Actual spending that year exceeded the downgraded target by 12%.

This year, the government hopes to spend P1.169 trillion on infrastructure, or about 5.9% of the economy. Another P1.154 trillion is targeted for the sector in 2022.

Economic managers are hoping the infrastructure push will accelerate the recovery through job creation.

“This is an opportune time to hike infrastructure spending. Large output gaps and low interest rates imply that such spending will not crowd out private spending and may even support it,” Mr. Mathur and Ms. Bhatnagar said.

“The challenge is not only to increase infrastructure investment but also its efficacy so that trend GDP (gross domestic product) growth improves,” they added.

In 2020, the Philippine economy contracted 9.5%. Economic managers expect it to bounce back this year with growth of between 6.5% and 7.5%. — Luz Wendy T. Noble

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!



WASHINGTON D.C. — The United States is seeking to form a coalition of countries to drive negotiations on a global plastic pollution treaty, weeks...


By Diego Gabriel C. Robles  THE WORLD BANK (WB) upgraded its growth forecast for the Philippines for this year and 2023, citing an “accommodative”...


THE PHILIPPINE auto industry’s sales recovery will likely be derailed if a measure reimposing excise taxes on pickup trucks is signed into law, according...


THE BANGKO SENTRAL ng Pilipinas (BSP) may deliver a second off-cycle rate hike in early November when the US Federal Reserve is expected to...


THE ASIAN Development Bank (ADB) is planning to allocate at least $14 billion for a program aimed at easing a food crisis in the...


With the reversal of the 1.25% rise in National Insurance Contributions happening on the 6th of November, employers across the nation have an opportunity...

You May Also Like


Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...


The minute that any question pops into your head, you can simply ask Google. No longer do we have to pour over books and...


Insomnia is the most common sleep disorder in the global population. Therefore, it is a problem that many people suffer or have suffered throughout...


Ivermectin, an existing drug against parasites including head lice, has had a checkered history when it comes to treating COVID-19. The bulk of studies...

Disclaimer:, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.