PIA Press Release
Tuesday, January 03, 2012
Pres. Aquino allots P438.8 billion for sustained, rapid econ growthMANILA, jAN. 3 -- The Aquino administration has allocated P438.8 billion on the 2012 National Budget to usher rapid, inclusive and sustainable economic growth to further strengthen the country’s economic foundations.
Budget and Management Secretary Florencio B. Abad said the P438.8 billion economic sector budget comprises 24.2 percent of the P1.816 trillion 2012 National Budget.
“The economic sector budget will focus in supporting the government’s five priority areas for job generation and economic development: on top of the established drivers of growth like semi-conductor and electronics; business process outsourcing; emphasis will be on tourism development; agriculture and fisheries development; and general infrastructure,” he added.
The 2012 economic sector budget will fund P182.2 billion for the government infrastructure program, 25.6 percent higher than the 2011 level and represents 1.6 percent of gross domestic product (GDP) to last year’s 1.4 percent.
Apart from infrastructure program, the economic sector allocation will include the continuation of providing fiscal support to P22.1 billion public-private partnerships (PPP) to elicit the entry of private capital in critical infrastructure and other projects.
“The Social Contract to the Filipino People of President Aquino is well reflected in the 2012 budget. We started laying out the reforms this year. However, for the 2012 budget, we will strengthen the foundation and put in place more projects to curb corruption and promote economic development. This direction is expected to benefit the poor and the vulnerable sectors. Ito ang ipinangako sa taumbayan ng ating Pangulo at iyan ay tutuparin ng kanyang administrasyon para mapabuti ang kalagayan ng ating mga kababayan,” Abad said.
The 2012 economic sector budget will also provide funding for agriculture’s sector’s thrust to ensure rice self-sufficiency by 2013. The National Rice Program under the Department of Agriculture will get P6.2 billion for 2012, an increase of P43.20 percent from last year’s P4.3 billion while the High-Value Crops Program will be allocated with P1.3 billion in 2012 budget, 44.20 percent higher than past year’s budget of P927 million.
The 2012 budget for the National Corn Program of P951 million is almost twice the 2011 level of P484 million with a production target of 7.6 million metric tons (MMT). Of the increment, 75 percent will be used for post-harvest facilities in a bid to generate a steady supply of white corn to reduce rice demand.
The budget for the National Fisheries Program of P1.9 billion under the Bureau of Fisheries and Aquatic Resources (BFAR) is slightly higher by six percent compared with the 2011 budget of P1.8 with a targeted 5.6 MMT fisheries products from commercial, municipal and aquaculture.
Support to the National Livestock Program of P1.0 billion is 50.20 percent higher than the last year’s level of P682 million with a target of 2.0 MMT hogs and 1.5 MMT of chicken in 2012.
In line with the rice and food sufficiency, irrigation development will be the centrepiece program and is allocated with P24.5 billion for 2012. This substantial increase aims for the construction, restoration and rehabilitation of irrigation systems, targeting a service area of 214,055 hectares benefitting 142,767 households, an increase from last year’s 112,349 households.(DBM)