Press Release
November 14, 2006


Senate President Manny Villar, President of Nacionalista Party, is battling for a bigger outlay for public works and other infrastructure projects under the P1.13 trillion proposed 2007 General Appropriation Act, which is undergoing scrutiny by the Senate.

Senate President Villar said a heftier allotment for Capital Outlay would boost infrastructure development in the country and help sustain the governments efforts to resuscitate the economy and create more opportunities for economic growth.

I believe that a higher allocation for infrastructure is vital to keeping the economy moving, Villar said.

Villar said one of his key priorities is to ensure that bigger funds would be given to Capital Outlay, which is the government budgeting covers expenditures that include public works and other infrastructure, land purchase, vehicle and equipment acquisition, among others.

Under the Palace-proposed budget, around P117 billion is earmarked for Capital Outlay.

A higher infrastructure budget would help us in building and strengthening our image of stability. Farm-to-market roads help farmers bring their produce to the markets, thereby providing them steady incomes and boosting their purchasing capability. This brings about the consumer spending that benefit other sectors, particularly the manufacturing and trading, Villar said.

In the budget proposal, a total of P83. 8 billion of the capital outlay budget is earmarked for roads, airports, irrigation, railway, flood control, electrification and other public infrastructure.

The government will also build some 3,251 kilometers of roads and 6,000 classrooms next year, and work will also continue on 16 airports while projects costing P7.6 billion are expected to irrigate 17,150 hectares of farmlands.

Roads and bridges corner the bulk of this infrastructure budget with an allocation of P49.2 billion.

In his recent budget presentation, Budget Secretary Rolando Andaya Jr said 10.4 percent of the national government spending next year is geared towards easing infrastructure backlog.

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