MALAYA BUSINESS INSIGHTS EDITORIAL: A DISASTROUS FIRST QUARTER
MANILA, APRIL 29, 2011 (MALAYA) 'These non-performing officials should shape up fast.'
WE have been like a broken record saying in recent weeks the Aquino administration should wake up and address head-on the failure of line agencies to implement programmed projects during the first quarter.
Unfortunately, it seems nobody is listening. And if they are, they prefer to cover up their dismal performance with boasts about the government having succeeded in cutting down the budget deficit.
If we follow their logic, then government should stop undertaking big-ticket infrastructure projects. The deficit would not only be wiped out, the government could post a surplus.
The first quarter fiscal figures are in. The government spent P349.3 billion during the period, short by P82 billion from programmed expenditure of P431 billion.
The January-March spending level was also P51 billion lower than the P400 billion spent during the same period last year.
"Overall, a disastrous first quarter for the public sector. The contribution of the national government to the economy was negative," former budget secretary Benjamin Diokno said.
Finance Secretary Cesar Purisima, however, chose to stress the reduced deficit in announcing the fiscal figures. He said the revenue-spending gap was stood at P26.2 billion, much lower than the P112 billion ceiling for the period.
Purisima said collections improved and expenditures declined, the latter he traced to lower interest expense.
"Interest payments during the first three months amounted to only P90.7 billion, P10.5 billion lower than program and 16.7 percent lower year-on-year," Purisima said.
Diokno had a quick retort. "Total expenditures net of interest payment were P71.5 billion lower than planned. Non-interest spending for the first three months of 2011 was much lower than last year – P258.6 billion versus P291.1 billion," Diokno said.
Budget Secretary Florencio Abad was more forthcoming. He said government agencies spent the first three months of the year reviewing the costs of their programs and projects, hence the under-spending.
Again, Diokno was not buying.
"The review of cost is a poor excuse for the slow implementation of government programs and projects. The review process should have been finished last year," he said.
Some hecklers have described the current senior officials as undergoing on-the-job training. Many of the critics are identified with the corrupt and discredited Arroyo administration so we have not joined them in their jeering.
But these non-performing officials should shape up fast. The people expect a lot from the Aquino administration. Their hopes and dreams should not be dashed by the inexperience or sloth of these officials.
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Chief News Editor: Sol Jose Vanzi
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