The Philippine government, led by President Rodrigo Duterte, is proposing a Php1.1 trillion budge for infrastructure budget for next year, 2021.
This is part of the government’s overall move to bring revive the local economy that was greatly hit by the COVID-19 pandemic.
The proposed infrastructure budget is part of the Php4.506 trillion national budget proposal that was submitted to Congress last week and is now awaiting approval.
As per President Duterte, its high multiplier effect in economic growth and output is the reason why infrastructure development is indispensable in reviving the local economy.
He added that the “Build, Build, Build” projects are expected to provide 140,000 to 200,000 local jobs next year. Plus, it will encourage the private sector to put money on construction and manufacturing activities.
The proposed infra budget consists of shovel-ready projects that will improve the delivery of health and essential services plus, transportation and mobility of goods and people amid the pandemic.
Duterte’s proposed infrastructure budget is equal to 5.4% of the Philippines’ GDP, which is higher to 4.6% in 2020.
The president has expressed its confidence that they are on track in achieving the country’s “Golden Age of Infrastructure” in its hopes to secure a “comfortable life and bright future for the Filipinos by 2040”.
Despite the COVID-19 shattering a lot of businesses and has forced the country in recession, the Philippine government still expects the economy will grow between 6.5% to 7.5% by next year.
Via: GMA News