MANILA, Philippines - Fitch Ratings' investment grade stamp for the Philippines will help push infrastructure spending higher.
Budget Secretary Butch Abad says they aim to bring infrastructure spending to 5% of gross domestic product from the current 2.8%.
"With the country now at investment grade, we’re determined to strengthen our economic position further and expand our fiscal space for key socio-economic services. At the same time, we expect to attract more investments into the country’s infrastructure development program and, eventually, bring infrastructure spending to five percent of GDP,” Abad said in a statement.
He adds more infrastructure investments will help support the growth of key industries like agriculture, tourism and business process outsourcing sectors.
The additional spending will be used to develop farm-to-market roads, improve road access to tourism zones and upgrade key airports and seaport hubs.
He added infrastructure spending will also boost the administration's social services programs, such as social housing for informal settlers, rural electrification in remote barangays and rehabilitation of provincial hospitals. - ANC