Government underspends by 13 pct in 2014

ABS-CBN News

Posted at Mar 12 2015 12:21 PM | Updated as of Mar 13 2015 02:05 AM

MANILA, Philippines - The government underspent by 13 percent last year, more than in 2013, probably contributing to slower economic growth.

Spending totaled P1.98 trillion last year, compared with a P2.28 billion target.

In 2013, underspending was 5 percent.

The government and observers have blamed underspending on the controversies regarding congressional pork barrel and the administration's disbursement acceleration program.

The controversies broke in the second half of 2013, and the two programs were later declared at least partly unconstitutional.

The government says this has made officials reluctant to spend.

Economic growth slowed last year, after accelerating for two years.

While spending missed target, it was up by 5 percent. Revenue rose 11 percent to P1.91 trillion, but missed target by 5 percent.

While underspending resulted in a smaller budget deficit (P73 billion, down 55 percent), it means government has to borrow less, making loans cheaper for businesses and individuals. - ANC