Thursday, March 08, 2007 Gov’t asks private sector to help boost RP economy
THE government is urging the private sector to become its partner in sustaining the momentum being experienced by the country’s economy.
In a press conference at the Marco Polo Plaza Hotel yesterday, Trade and Industry Secretary Peter Favila said the business community needs to help the government implement projects that would enable the country’s economy to move forward.
“The government is just the catalyst (for development). The private sector will sustain (these developments),” he said.
The government is asking the private sector to help finance infrastructure projects in the Medium Term Development Plan, which needs around P1.7 trillion, Favila said.
Favila, together with members of the government’s economic team and senior officials of the Bangko Sentral ng Pilipinas (BSP), conducted an economic briefing at the Marco Polo Plaza. It was the third in a series of regional economic briefings initiated by the BSP.
In the briefing, Finance Secretary Margarito Teves said 2006 was a banner year for the Philippine economy as the reform programs implemented by the government has resulted in reducing the National Government’s budget deficit, stronger peso and reduced inflation and interest rates.
“These developments continue to buoy investor confidence and provide the momentum that would enable the country to achieve further growth this year,” he said.
Teves said the momentum will enable the government to deliver better health services and construct classrooms.
He said the P62.2 billion budget deficit last year was the lowest budget deficit of the government in eight years.
Positive signs
The deficit to gross domestic product (GDP) ratio also fell to -1.0 percent from -2.7 percent in 2005.
“These are some of the many positive signs that our economic reforms are taking hold and that we are on track to meet our aggressive but achievable goal of a balanced budget by 2008,” Teves said.
Meanwhile, National Economic and Development Authority 7 Director Marlene Catalina Rodriguez said the region’s economic performance in 2006 was “healthy” with the growth rates in the industry and service sectors higher than the national average.
“Improved business and consumer confidence in the regional economy has resulted in prospects for accelerated growth in Central Visayas. We expect the continued growth of the tourism and information and communications technology sectors to significantly benefit growth in other sectors such as retail trade, real estate and construction and transportation,” she said.
Rodriguez said the government’s promotion of Central Philippines as the country’s tourism center would also increase public and private investments in the sector.
“This, coupled with significant infrastructure investments in areas such as port improvement, power, urban infrastructure, and water supply and sanitation will contribute to strong regional economic performance in 2007 that will help sustain the national economic momentum,” she said.
Favila said the government needs the private sector to reinvest their earnings by upgrading technology, improve packaging and undertake human resource programs and trainings.
The government is also urging the private sector to participate in infrastructure investments, and forge alliances and resources through industry clustering. (JBN)
