April state infra spending up 9.7% to ₧63.8B
‘Close borders, cut Omicron exposure risk’ By Bernadette D. Nicolas @BNicolasBM
By Cai U. Ordinario
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Shenzhen Covid flareup SparkS limited loCkdown, maSS teSting
@caiordinario TATE infrastructure spending in April rose by 9.7 LOSING the country’s borders percent to P63.8 billion is one of the most immediate on easing Cov id-19 mobi l it y courses of action the governrestrictions. ment must take to prevent theDepartlatLatest data from the est Covid-19 variant, Omicron, from ment of Budget and Management reaching Philippine accord(DBM) showed shores, the government’s ing todisbursements local economists. for infrastructure T he iantoutlays is a threat, andnew othervar capital during the e s p emonth c i a l l y were w it higher h t he by hol id ay s P5.7 billion coming up and more foreigners than the P58.2 billion recorded in being a llowed to travel to the April last year. Philippines, De La Sa lleimplementaUniverThe DBM said the sit y tion economist Mar ia Ella Oplas of infrastructure programs told of BusinessMirror. the Department of Public The holidays usually bring Works and Highways amidinlowOverseas FilipinoAlert Workers (OFWs) er Covid-19 Level Systems who are eager to spend Christmas
contributed to the higher infrastructure expenditures for the with their loved ones, while formonth. eignersThe living in temperate regions increase in government usually want for to infrastructure relax in tropical spending and countries the Philippines. other like capital outlays wasThis also year’s influxattributed of OFWs isto expected to largely the settlebe heavier since many of them were ment of accounts payables of the unable to come home for the holidays Department of Agriculture for the in December 2020. procurement of farm equipment “My is tounder protect andrecommendation pieces of machinery the theRice borders. Do not allow people with Competitiveness Enhancea history of travel countries withof ment Fund andto the Department positive cases to enter,” Oplas said. Education for its Basic Education “WeFacilities. should be more restrictive. [We have toAs be]ofmore protective terms end-April thisinyear, the of our measures.” government’s disbursements on Oplas said that while this will be infrastructure and other capital a setback to some industries, this outlays also inched up by 0.3 is apercent fair measure considering to P254.1 billionthat from thisP253.4 could help prevent the billion in theplacing same period country in another strict lockdown,
last year. Meanwhi le, inf rastr uct ure which, she said, theas economy can no disbursements of end-April longer afford. climbed by 3.3 percent year“It is better that we do protective on-year to P331.9 billion from preventive measures than get exP321.2 billion. posedApart again.from We have a lot to lose,” infrastructure disOplas said. “We should do it also now inso bursements, this figure that we can open just before Christcluded subsidy and equity to govmas. If it gets contained, can open ernment-owned and we -controlled it again.” corporations, and transfers to loAteneo Center units for Economic cal government intendedRefor search and Development (ACERD) infrastructure. Associate Percival MovingDirector forward, Ser the DBM said K.it Peña-Reyes said closing the expects a “very minimal increase country’s borders would be effecor a slightly lower year-on-year tive but should still adhere to May the growth” in disbursements in standards set by the World Health this year mainly because of the Organization impact of the(WHO). election ban and the What is timing ofneeded, subsidyPeña-Reyes releases. told this newspaper, is for travel restricHowever, other expenditure tions to be put in place swiftly and
items will continue to post positive growth rates, such as those for to be proactive in on government personnel services due to the imposing release ofthem. mid-year bonus of govPrevious instances when the ernment employees, transfers to country had the opportunity imLGU due to higher NationaltoTax pose travel restrictions did notand preAllotment, and Maintenance vent the spread of Covid-19. That Other Operating Expenses was on mainly because the decision was not the back of expenditures of the made immediately, he said. for the Commission on Elections “Kung papatay patay [If local we’re conduct of the national and slow] and we caught elections, theget DBM said.flat-footed, The [that’s risky] We were too reCabinet-level Developactive instead of proactive before. ment Budget Coordination ComWe should learn fromalmost that,” Peñamittee programmed P1.2 Reyes said. “It’s a delicate balancing trillion for the government’s inact. We need disbursements to push testingthis and frastructure tracing to was be properly year. This higher byinformed around of our decisions. Blanket/shotgun 7 percent than last year’s actual approaches could have dire conseinfrastructure program of P1.12 quences trillion.on the economy.” See “Omicron,” A2
NATL BORROWINGS RISKSGOVT TO PHL GROWTH FOR 10REGION MOS DIPFLAGGED TO P2.75T FROM w w
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n Tuesday, June 21, 256 Monday, November 29,2022 2021Vol.Vol.1717No.No.52
By Bernadette D. Nicolas
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Omicron risk Salceda prods new DTI chief revival to complete SIPPspurs soonest of quarantine rules in PHL
@BNicolasBM
HE national government’s gross borrowings as of end-October shrank by almost 6 percent year-on-year to P2.75 trillion.
By Jovee Marie N. dela Cruz @joveemarie
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Latest data from the Bureau of the Treasury showed that the government’s gross borrowings during the 10-month period fell by 5.99 percent from P2.92 trillion a year ago. With only two months left for this year, the latest figure is already equivalent to 89.6 percent of its P3.07-trillion borrowing program. Broken down, gross domestic borrowings from January to October settled at P2.23 trillion, down by 5.08 percent from P2.35 trillion in 2020. The bulk of the amount was PEOPLE walk past the mural of Gat Andres Bonifacio at Manila City Hall Underpass. sourced from Fixed Rate Treasury The country will celebrate the 158th birth anniversary of Filipino revolutionary Bonds (P1.19 trillion), followed by hero Gat Andres Bonifacio on Tuesday, November 30. ROY DOMINGO short-term borrowings from Bangko Sentral ng Pilipinas or BSP (P540 Retail Treasury Bonds/PreAbillion), MEMBER of the Manila Police District Explosive Ordnance Division conducts a bomb simulation exercise using a remote-driven robot in front of the National Museum of Fine Arts in Manila on June 20, myo Bonds (P463.3 billion), Retail 2022, in preparation for the inauguration of President-elect Ferdinand “Bongbong” Marcos Jr. on June 30, 2022. NONIE REYES Onshore Dollar Bonds (P80.84 billion). In the same period, was By Caithere U. Ordinario @caiordinario By Jasper Emmanuel Y. Arcalas dating its registry following the them. This allows everyone to see also a net redemption of Treasury @jearcalas enactment of the Coconut Farmwho are listed in the registry and if Bills amounting to P43.94 billion. ers and Industry Trust Fund law. farmer doesn’t see his name then he Net debt redemption means ORE than 3 million Rosales explained that about shall coordinate with the PCA imthere were more debts repaid comcoconut farmers and 500,000 coconut farmers and mediately,” he explained at a recent pared to the amount borrowed durworkers are now regisworkers were added to the PCA’s dialogue trading with coconut ing the period. By Bianca Cuaresma previous day’sfarmers. close tered with the government’s reg2018 list that had about 2.5 million “On the other hand, if people Meanwhile, gross foreign bor@BcuaresmaBM of P53.75 to a dollar, with a istry, which serves as the basis coconut farmers and farm workers. would see names on the list and rowings in the same period also total traded volume of $962.5 for the number of people to be The PCA’s they think they are not coconut contracted by 9.7 percent to P518.7 H E lnext o c a lstep c u is r rto e nconcy million. covered by the utilization of the duct anbreached exclusion-inclusion farmers or their details Nichare incorbillion from last year’s P574.4 billion. the P54 toproa ING Bank economist P75-billion coconut levy fund. cedure dollar by making the updated rect, they can report it to This was raised through global territory on Monolas Antonio Mapa said the thePCA Philippine Coconut Authority farmers’ registry public, providfor immediate action,” he bonds (P146.17 billion), program day, hitting its weakest level in peso weakened on Monday added. on (PCA) Deputy Administrator Roel ing everyone the opportunity to The PCAstrong official noted that loans (P139.98 billion), euro-deabout four years. the general sentiment M. Rosales said about 3.11 million check thefrom veracity of the list,AsRothe completion of the by initial nominated bonds (P121.97 billion), Data the Bankers’ for the dollar, as driven the list coconut farmers and farm worksales added. of coconut farmers registry would a project loan (P86.41 billion), and sociation of the Philippines rapid rate hikes by the US Feders have been registered with the “The list will be posted in public be just in time for the expected yen-denominated samurai bonds (BAP) showed that the peso eral Reserve. government since it started upspaces where easily rollout of coconut (P24.19 billion). traded at a people low ofcan P53.8 to see a “Perceived policylevy-funded disso-
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M
See “Borrowings,” A2
PESO EXCHANGE RATES
HE chairman of the House Committee on Ways and Means on Monday urged incoming Department of Trade and Industry Secretary Alfredo Pascual to complete the comprehensive Strategic Investment Priorities Plan (SIPP) with assurance that the agriculture sector will receive “generous” tax incentives under the Corporate Recovery and Tax Incentives for Enterprises (CREATE) law. Albay Rep. Joey Sarte Salceda asked Pascual to complete the work undertaken by the Duterte administration in crafting industrial policy by crafting the comprehensive SIPP. SIPP is the list of sectors qualified for tax perks under the CREATE law. According to Salceda, the DTI adopted a three-stage approach to crafting the SIPP, which is the list of industries eligible for tax incentives. The three stages are interim, transitional, and comprehensive SIPP. The current SIPP in effect is meant to be the tranprograms as President Duterte sitional SIPP. is expected sign industry Salceda to said hethe “anticipates development plan in early a more holistic approach2022. in the Rosales said the PCA will not stop updating its list of coconut farmers and enjoined them to register in order to reap the benefits of the decades-long idled coconut levy fund. “We will not stop at 3.1 million. We hope that more individuals will register in our coconut farmers registry,” he said. The updating of the coconut farmers registry is mandated by Republic Act (RA) 11524 or the Coconut Industry Trust Fund Act.
OVER 3-M FARMERS LISTED FOR P75-B COCO LEVY FUND
ISKS to the Philippines’s economic growth are not limited to the performance of the US economy, as much of the risks are nearer, including the challenges posed by its neighbors in the region as well as those on the domestic front, according to economists. In an e-mail to the BusinessMirror on Monday, University of the Philippines Professor Emeritus Epictetus Patalinghug said a recession in the United States may not even lead to a global recession. Patalinghug said the Philippines should pay greater attention to what is happening to developments in China, Japan, South Korea, India, and the Asean region where most of the country’s ex-
P25.00 P25.00 nationwide nationwide || 22 sections sections 28 20 pages pages ||
ports and imports are involved. to China n US“Watch 50.4600what n happens JAPAN 0.4374 n UK or to Japan that supply most of the financing for our infrastructure projects; the US has zero official development assistance for our social and economic projects. The US only gives military assistance, mostly second-hand military equipment, which has no impact on the economy,” Patalinghug also said.
PESO FALLS TO P54 TO DOLLAR, ITS WEAKEST LEVEL IN 4 YEARS
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See “3-M farmers,” A2
dollar during the day and a nance also causing the PHP high of P54.105 to a dollar. weakness as BSP retains a relThe peso closed the day’s dovish 36.8968 outlook n vs AUSTRALIA the 67.2329 n HK 6.4722 n CHINA 7.9013 natively SINGAPORE 36.2807 n trade at P54.065 aga inst aggressive tightening by the the greenback, with a traded Fed,” Mapa said. volume of $1.016 billion on “PHP is also weaker due to Monday. widening trade deficit, owing The last time that the peso to expensive global commodity breached the P54 territory was prices and increased demand in October 2018. due to domestic economic reMonday’s peso close was opening,” he added. 31.5 centavos weaker than the See “Peso,” A2
By Samuel P. Medenilla @sam_medenilla
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NTER NATIONA L concerns over the possible spread of the more infectious Omicron Covid-19 variant prompted the government to the reimpose mandatory “In other words, comprehensive SIPP facility-based quarantine will be our country’s top instrument offor all arrivingplanning.”—House passengers in the industrial Wayscountry. and Acting Presidential Means Chairman Rep. Joey SartespokesperSalceda son Karlo B. Nograles announced on Sunday thatSIPP, the Inter-Agency comprehensive with details Task Force for the Management on what incentives can be used to of Emerging Diseases spur growth atInfectious certain stages of (IATF) suspended the implemenincentivized industries.” tation of its “In Resolution No. 150He added, other words, the A (s.2021), effectively imposing comprehensive SIPP will be our stricter protocols for allofinbound country’s top instrument industravelers. trial planning.” To promised note, IATFtoResolution 150He “engage SecreA had allowed fully vaccinated tary Pascual on this matter to see non-visa travelers List how we can craft itfrom in a Green way that areasmatches to enterhis theand country withalso the Presiout the needfor forour facility-based dent’s vision industries quarantine as long during his term.” as they secure negative TranscriptionSalcedaReverse gave assurances that Polymerase Chain (RTagriculture, being aReaction leading secPCR) test within 72 hours prior tor needed to push the country’s to their departure. economic recovery, will receive “Except for classified “generous” taxcountries incentives under as ‘Red,’ the testing the CREATE Act. and quarantine protocolsContinued for all inbound on A5 international travelers in all ports of entry shall comply with the testing and quarantine protocols for ‘Yellow’ list countries,” Nograles said, citing the provision of IATF Resolution No. 151-A. He noted Hong Kong, which has confirmed a case of the Omicron variant, will also fall under the Yellow list countries. The suspension of the rules for “Green List” countries will be in effect from November 28, 2021 to December 15, 2021. Continued on A2
EU 56.5758 n SAUDI ARABIA 13.4531 Source: BSP (November 26, 2021)
See “Risks,” A2
PESO EXCHANGE RATES n US 53.5510
n JAPAN 0.3967 n UK 65.4875 n HK 6.8221 n CHINA 7.9721 n SINGAPORE 38.5342 n AUSTRALIA 37.1269 n EU 56.1804 n SAUDI ARABIA 14.2723 Source: BSP (June 20, 2022)