By Leslie Venzon
MANILA, (PNA) — The Philippines can utilize its excess savings to accelerate infrastructure spending to five percent of the country’s gross domestic product (GDP) by 2016, according to an economist.
Dr. Felipe Medalla, also a member of central bank’s Monetary Board, said those excess savings can be channelled to good infrastructure as well as factories and better services especially outside Metro Manila.
Medalla said Central Luzon, Metro Manila and CALABARZON (Calamba, Laguna, Batangas, Rizal and Quezon) now account for two-third of the Philippine GDP.
“If you do good infrastructure, can increase (infrastructure spending) share to GDP from 2.5 percent and five percent, you will see a Philippine economy very different from this one (today),” he said at the opening of the three-day 39th Philippine Business Conference and Expo on Tuesday.
Medalla added the country should not also depend on collections to finance infrastructure projects, noting that “there is plenty of money to be borrowed out there.”
For her part, Bureau of Treasury (BTr) National Treasurer Rosalia de Leon said the country has mobilized internal savings to fund needs.
The government has earmarked P399 billion for public infrastructure projects in 2014, up 35 percent from more than P295 billion appropriated this year.