Economic growth in 2009 depends on the timely approval by the Congress of the 2009 government budget, Economic Planning Secretary Ralph Recto said Monday.
"if the 2009 budget is not passed on time just like in 2008 when it was approved in March already, we will lose the opportunity to spend for the first quarter and take advantage of the good weather during this period" Recto said before members of the Wallace Business Forum during a recent round table discussion.
-abs-cbn news
In this news article, Recto was trying to point out that because of the delayed approval of the 2008 budget, it made a big impact on why our economy is moving negatively now. During the first half of the year, our GDP growth slowed to 4.6% from 7.2% last year. it was said that this is mainly because of the weak consumer spending and contraction in government spending. DBCC was targetting to have a 5.5 to 6.4 % GDP this year and 6.1 to 7.1% for the next year.
For this year, i think it is quite impossible to reach this target already, because we are facing economic crisis today (oil price hike, increase in prices of goods, etc.). it is quite too late because we are almost already in the last quarter of the year. more over, Christmas is quite near, and it is possible that more people will be experiencing and suffering from the crisis and the price hikes during this season.
however, i think that it may be possible that with an early approval of the 2009 budget, it can help move our economy for the year 2009. Like what Recto said, the delayed approval leads to losing of the opportunity to do some projects, mainly on the infrastructures, during the first quarter of the year, when it is the best weather. With the 2009 budget approved on time, for as early as the first quarter of the year, the government can make their move and not waste time on waiting for the budget on the planned projects. The government can also invest on the infrastructures earlier or at least right on time.
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8 comments:
well, i agree with what Recto is saying. We should really plan ahead in order to have a good start. And yes, because of the economic crisis in the world, especially because of the bancruptcy of the Leehman Brothers, having a high economic target by the end of the year is really impossible. Unless some miracle happen, our country will still experience high prices of goods brought about by the economic crisis. Let's just hope that next year would be a better year than what we have now.
Clearly, Economic Planning Secretary Ralph Recto has a point in his statement about the nation's economic growth problem with regards to the problems of submitting the budget plans on time. This is because this affects greatly with determining the policies to be adapted for the year, especially with regards to the Fiscal Policy. It has been noted that one of the main criticisms or complications of adapting Fiscal Policies is precisely this, timing problems. Specifically the Recognition Lag, the Administrative Lag, and the Operational Lag. By the time policies are impleted its possible the year is half way through already and new policies should be impleted already.
yes, Recto might be correct but this isn't where the real problem is, real problem is budgeted funds don't get to where it should be without crocodiles biting a piece
I also agree with Recto's opinion. They should instantly do what they are supposed to do. Procrastinating of approval would not bring Philippines something that is helpful but only harmful and negative thing. So if they really have an intention to do something good for the Philippines, they should avoid the delayed budget which has no merits at all.
Well the thing here is this, it's all part of their (well you know who they are) 'diabolical' plan.
If the budget is delayed, everything is pulled down with it - lower GDP/GNP, lower peso value to the dollar, increase inflation rate and etc, thus a negative implication to the Arroyo Government.
It is not a 'negative' thing at all to them in their views however, but on the contrary, it's actually good. Why? Well simply because each of them has their own pursuits, and with the upcoming 2010 elections, we might just know what those pursuits are.
"Start your day right and it will end right"
It makes a lot of sense planning the 2009 budget as early as the year 2008.
We know how important the budget is with regards to the government's expenditure.
How can we develop our country if submission and approval of budget plans are no faster than the speed of a turtle?
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