Next administration urged to raise infra spending to 7% of GDP

Public Works and Highways Secretary Rogelio L. Singson said the next administration should ramp up infrastructure spending to 7 percent of GDP from the current 5 percent.

Singson, who was part of the panel discussion on the agenda for competitiveness with focus on the infrastructure sector at the ongoing 41st Philippine Business Conference, has strongly urged for the acceleration of infrastructure spending by the next administration to ensure growth.

Singson has been credited for reforming the DPWH from its image as one of the most corrupt government agencies in the country. As a result, three presidentiables have already aired their intention to retain Singson in their cabinet if ever they win in next year’s elections.

“We should continue our investment in infrastructure from the current level of 5 percent of GDP to 7 percent,” Singson said stressing he is not against government borrowing money as long as this goes to building good infrastructure.

He noted that as part of the Aquino administration, they came in with infrastructure spending that contributed only 1.8 percent of GDP. In a period of five years, the infrastructure expenditures now account for 5 percent of GDP.

The Aquino administration started with R165 billion infrastructure budget. Now, the infrastructure allocation has gone up to R766 billion or more than 4 times since.

The DPWH budgetary allotment for infrastructure has also grown to R431 billion or four times more than the 2014.

“Instead of 5 percent, the next administration’s infrastructure expenditures should be 7 percent of GDP, we should be pushing for higher infrastructure spending,” he stressed.

He called for higher investments in Mindanao where he feels the government has been underspending for infrastructure in that region.

Thus, in the 2015 budget 33 percent has been allowed for infrastructure in Mindanao. As a result, there has been shortage already in supply of cement and aggregates in Mindanao as a result of the huge infrastructure projects in the region.

To encourage private sector investments in infrastructure projects in the country, Singson has urged for changes in the rules in public utilities where foreign firms are limited up to 40 percent ownership only.

Singson said that several foreign firms are interested to invest in rails and toll road projects but have a hard time complying with the equity ownership prohibition in the Constitution.