Tuesday, September 04, 2007 Palace assures completion of 2007 projects
BUDGET Secretary Rolando Andaya Jr. said infrastructure projects that are targeted for implementation this year would be finished following the government's "no performance, no release" policy.
Andaya said the departments that are tasked to implement the infrastructure projects had been prepared last year for the massive budgets that would be given to them in 2007 in order increase their absorptive capacity.
"So when the 2007 budget came in, all of these departments were ready to roll out first day of January. So the policy now is 'no performance, no release.' For the past three months, we have reached 100 percent absorptive capacity in terms of cash in all of these infrastructure departments," he said during the economic briefing in Malacañang.
He also assured that government can sustain expenses for the whole year and the remaining years of the Arroyo administration.
Andaya said the departments were also assured that funding would be available for the projects. He said accounts payables are settled in two weeks, unlike before when it was paid within an average of six months.
He said funding is also monitored on a quarterly basis so that agencies that do not perform up to par would have their budget cut in the following quarter. So far, he said two to three departments have experienced cuts in their projects but he refused to name them.
Andaya said the policy is largely responsible for the economic growth. He said the 100 percent absorptive capacity has been observed in the past three months.
"The President's directive is for the budget for the year to be spent during the year. There should be no carry-over," he added.
This developed as Andaya said about 31 centavos for every peso budgeted by the National Government next year would be spent on payroll premiums, and pension of its employees and retired personnel.
He said personal services or compensation given to state employees would comprise P384.8 billion out of the P1.227 trillion proposed 2008 budget or an increase of P49.4 billion compared to this year's P335.4 billion.
Andaya said the P49.4 billion-increase would allow government to hire more employees and increase the pay of existing ones.
He said P1.4 billion has been allocated for the hiring of 10,000 new teachers and 1,661 new school principals, P781 billion for the recruitment of 3,500 policemen and 500 jail guards, P10.3 billion for the third round of salary increase for government workers, and P38.1 billion for the pension of military veterans and police retirees, including former firemen and jail guards..
Andaya said government is also allocating P22 billion in retirement and terminal leave benefits of those leaving the civil service. (JMR/Sunnex)
