NG spending rises 14.6% to P2.76T in H1 By Reine Juvierre S. Alberto
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HE national government ramped up its spending in the first half of 2024, rising 14.6 percent to P2.763 trillion, according to the Department of Budget and Management (DBM). Data from the DBM showed the government’s disbursements increased by P351 billion to P2.763 trillion in the January-June semester from the P2.411 trillion recorded in the same period in 2023. This also exceeded the P2.734trillion spending program for the period by P24.6 billion or 0.9 percent. “This resulted mainly from
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faster infrastructure spending, higher interest payments, and tax expenditures; but was partly offset by the lower-than-programmed subsidy support to government cor p orations , sans the bigticket releases to the Philippine Health Insurance Corporation [PhilHealth],” the DBM said. In terms of expense class, Current Operating Expenses jumped by 13.5 percent to P2.026 trillion in the first six months of 2024, from the P1.785 trillion posted in the same period in 2023. This is driven by higher interest payments, up by 33.6 percent year-on-year to P377.2 billion from P282.5 billion due to coupon
payments for bonds issued in FY 2023 and additional issuances, and higher Treasury Bill and foreign exchange rates. Personnel services went up to P701.9 billion by 13.5 percent year-on-year from P676.6 billion. Meanwhile, allotment to local government units (LGUs) also increased by 7.2 percent to P380.4 billion from P354.9 billion. Maintenance and Other Operating Expenditures (MOOE) grew by 21.3 percent to P479.2 billion as of end-June 2024 from P394.9 billion in the same period a year ago, due to the wider coverage of the social protection programs of the Department of Social Welfare
and Development (DSWD). This also includes the Medical Assistance for Indigent Patients (MAIP) Program and the payments for health emergency allowance claims of healthcare workers of the Department of Health (DOH), and the expenses of the Commission on Elections for their preparatory activities for the 2025 National Local Elections. Subsidies to government-owned and -controlled corporations inched up by 5.5 percent year-on-year to P67.2 billion as of end-June 2024 from P63.7 billion. On the other hand, capital outlays See “NG,” A2
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MOODY’S SEES 6% PHL GROWTH IN NEXT 2 YRS By Cai U. Ordinario
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@caiordinario
HE Philippine economy may again post an average growth of 6 percent or better in the next two years, according to the latest forecast of Moody’s Analytics.
In its Asia Pacific Outlook, Moody’s Analytics said the country’s GDP may grow 5.9 percent this year but will continue to grow faster at 6 percent next year and 6.1 percent in 2026. However, this is lower than the Development Budget Coordination Committee’s (DBCC) GDP growth targets of 6 to 7 percent this year; 6.5 to 7.5 percent in 2025; and 6.5 to 8 percent in 2026 to 2028. “Fiscal policy in the Philippines is strongly focused on infrastructure development, but actual execution of this policy has been uneven this past year,” Moody’s Analytics said. “The Philippines must stick to its plans and execute well.” Moody’s Analytics said inflation is expected to average 3.5 percent this year and will continue to slow to 3.2 percent in 2025 and 3 percent in 2026. The think tank also estimated that unemployment will average 4.4 percent this year but will increase to 4.5 percent next year and to 4.6 percent in 2026. The forecast also estimated that retail sales is expected to average 5.2 percent in 2024 but will slow to 3.1 percent next year and in 2026. Home prices are also expected to average 4.1 percent in 2024 but will slow to 3.9 percent in 2025 and increase to 4.2 percent in 2026. “The Philippines and Indonesia will not lag far behind Vietnam, but their economies are not as closely tied to the global economy. An aggressive push by both countries to improve their infrastructure will support high rates of growth,” Moody’s Analytics said. Earlier, the National Economic and Development Authority (Neda) said 49 Official Development Assistance (ODA) projects are See “Moody’s,” A2
WINDMILL WISHES
Bebeng Piliin, 71, President of the OSCA Sitio Bugarin in Brgy. Halayhayin, Pililla, Rizal, stands near the iconic Pililla Windfarm, with its towering windmills visible in the background, as she sells pinwheels to passing tourists. Before the pandemic, Piliin and other vendors had stalls inside the Windfarm, a popular eco-tourism destination. Forced to relocate to the main road, she now relies on the sporadic flow of visitors. “We don’t hit zero [sales], but it’s not enough,” she shared with BusinessMirror, expressing her hope for increased tourism to boost their sales. “I hope more tourists and fruit buyers will come. Our pineapple is the sweetest in the Philippines, and doesn’t leave an itchy feeling in the mouth,” she proudly stated. She also emphasized that the fruits and vegetables sold are locally grown in Buhatin, Pililla. BERNARD TESTA
PROUDLY FILIPINO OISHI, A FOOD GIANT IN CHINA By Joel R. San Juan @jrsanjuan1573
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BACKDROPPED by a wide array of the popular Oishi snacks product line, Liwayway Co. Ltd Executive Vice President Li Pei Ming flashes the thumbs-up sign as he welcomes a Philippine media delegation to their factory in Shanghai. He led officials of what is considered one of the most successful Philippine ventures in China in discussing the company’s innovations and expansion plans. JOEL R. SAN JUAN
HANGHAI—Local food and beverage manufacturing firm Liwayway Marketing Corporation has come a long way from producing cornstarch in the 1940s to being a well-known food and beverage manufacturer here and abroad. Eighty years after it was established by Filipino-Chinese couple Lib Chan and Ying See, Liwayway continues to thrive in the Philippines and has since expanded in nine other countries with the help of their children
Carlos and Manuel Chan. Liwayway first opened its family-owned cornstarch and coffee repacking business in the 1940s and subsequently ventured into selling other general merchandise such as coffee, candles and pomade. Fast forward to the year 1975: Liwayway introduced its first famous snack brand Oishi Prawn Crackers and Kirei Yummy Flakes in the Philippine market. A f te r a l most 50 ye a r s, Liwayway said sales of the said products are still growing and the See “Oishi,” A2
DMW seeks more security for Pinoy-crewed ships in hot zones By Samuel P. Medenilla @sam_medenilla
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HE Department of Migrant Wo r k e r s ( D M W ) s a i d inter nationa l mar itime stakeholders have backed its call for the deployment of security escorts for ships with Filipino sailors, which will pass through the Red Sea and Gulf of Aden. DM W S ec ret a r y H a n s J. Cacdac said he was able to secure such support during his meeting with the International Advisory Committee on Global Maritime Affairs (IACGMA) last Friday. “We also had an agreement in our meeting with the international maritime stakeholders, which
means the international ship owners and international seafarer groups [agreed] with our call to intensify having maritime security forces in that part of the world,” Cacdac said in a media forum during the weekend. The maritime security forces are among the conditions set by DMW for ships which will pass through the Red Sea and the Gulf of Aden. DMW has tag ged both water ways as dangerous due to the recent threats posed by Iran-backed Houthi rebels that have mounted attacks on ships perceived as being connected, even remotely, with Israel. See “DMW,” A2
PESO EXCHANGE RATES n US 56.4480 n JAPAN 0.3888 n UK 73.9130 n HK 7.2431 n CHINA 7.9169 n SINGAPORE 43.2452 n AUSTRALIA 38.0572 n EU 62.9395 n SAUDI ARABIA 15.0456 Source: BSP (August 22, 2024)