STATE AGENCIES will have to significantly ramp up spending in December to boost fourth-quarter gross domestic product (GDP), after the government continued to underspend amid the coronavirus pandemic.
“The agencies were asked to implement catch-up plans to meet their original spending plans for the year. The catch up [spending plan] is intended to shore up the economy this Q4,” Budget Undersecretary Laura B. Pascua said via Viber on Friday.
Finance Secretary Carlos G. Dominguez III told various departments to ramp up spending in the remaining weeks of 2020, during a meeting of the Economic Development Cluster (EDC) two weeks ago.
Representatives from the Departments of Public Works and Highways (DPWH), Transportation (DoTr), Education (DepEd), Tourism (DoT), Trade and Industry (DTI), and Agriculture (DA) attended the EDC meeting, said Ms. Pascua.
Anemic government spending was blamed for the 11.5% GDP contraction in the third quarter, which was worse than most analysts … Read the rest