Super Region projects covered by adequate funds - Andaya
By Rose Palacio
Davao City (29 September) -- Budget Secretary Rolando Andaya Jr. said that multi-billion-peso projects under the super region development program which President Gloria Macapagal-Arroyo spelled out in her State of the Nation Address (SONA) are backed up by adequate funding.
"Yes we can sustain it with the needed financing up to 2010 and beyond", Andaya said, referring to the super region projects.
The DBM launched early last year public expenditure reforms, including the "paper on budget strategy," the costing of ongoing programs in three-year forward estimates (FEs), and adopted the Medium Term Expenditure Framework (MTEF).
The FEs determine the allocable fiscal space, thus resulting in the maximization of funds for priority sectors such as infrastructure, education, health, and social services.
"Through the FEs, we are able not only to determine the allocable fiscal space. Forward estimates also give assurance for sustained funding for approved programs and policies, thus, financial sustainability over the duration of the projects are assured," Andaya said.
He said if the government's strong revenue program and collection efforts are sustained, the total fiscal space based on the Fes would reach P527.2 billion from 2007 to 2010.
Andaya said this amount is more than enough to meet the funding requirements of the projects in the super regions estimated at P369.3 billion for the period 2007 - 2010.
The total investment cost, he added, will be shared by the private sector at P67.7 billion, government-owned and controlled corporations (GOCCs), P115.6 billion; local government units (LGUs), P1.3 billion; and the national government, P184.5 billion.
"The fiscal space to fund the SONA projects from 2007 to 2010 is P527.2 billion which is sufficient to cover 100 percent of the total investment cost of P369.3 billion. Given a strong revenue performance from 2007 to 2010, we can say with confidence that the SONA investments requirements can be adequately addressed by the government," Andaya said. (PIA XI) [top]