The government has set aside $500 million that formed part of the recent $2-billion global bond sale to underwrite a portion of the nation’s spending program, Budget Secretary Florencio B. Abad said on Thursday.
He said the new money raised from the sale of global bonds will be used for priority projects and programs instead of paying down the country’s maturing obligations.
Abad also said the bond sale proceeds may also be used to upgrade the commuter rail system, build more schools or hire more teachers and strengthen other government programs that fight poverty and catalyze economic growth.
The budget chief cited the improvement in the country’s newfound status as prime investment destination in Asia. He said the country’s macroeconomic and political stability along with its improving risk profile were seen to further improve the local investment climate.
“This will mean cheaper credit for our banks and a lower cost of doing business, besides more employment and business opportunities for Filipinos,” Abad said in a statement.
The budget chief said the government has adopted several measures to make the budgetary spending transparent and responsive to such basic needs as jobs, education and livelihood.
“Our goal always, is to manage public spending so that every peso spent by the government will serve the Filipino people’s most urgent needs,” Abad said.
Estrella Torres