- Posted July 8, 2014 by
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Phl slumps in government spending?
Presidential Communications Operations Office Secretary Herminio Coloma, Jr. issued the statement following reports that the International Monetary Fund (IMF) plans to cut its 2014 growth forecast for the Philippines due to data showing a slump in government spending.
Coloma said that despite the forecasts of such external entities as the IMF, the real challenge to the government is how to revitalize the economy and strengthen industries and services to attain high GDP growth that would in turn help the government carry out its reform programs and achieve inclusive growth.
"Whatever their perception, the determination is to increase our GDP growth," he said.
The IMF has said that reduced government spending would curtail economic activities in the country.
The government posted a budget surplus in the first five months of the year, the result of higher revenues and a marginal decline in disbursements.
The surplus came in the midst of the need to spend aggressively, especially on rehabilitation efforts in areas devastated by Typhoon Yolanda last year.
The IMF however said that the slower disbursements in the second quarter might not support economic growth.
The Philippines’ first quarter GDP growth slowed to 5.7 percent from 6.3 percent in the fourth quarter of 2013.