PBBM links unemployment, peso weakness to delayed public spending
President Marcos of the Philippines attributed recent economic weakness and rising unemployment to delays in government infrastructure spending. He explained that a thorough inspection of public works contracts caused a bottleneck, but expects spending to accelerate in the coming months.
Why it matters
The administration's ability to resolve these spending delays is critical for the country's economic recovery and inflation management.
President Marcos said delayed government spending contributed to the rise in unemployment and broader economic weakness, as he assured that the government was catching up on its spending program.
In a press briefing, the President said public works contracts were halted for inspection following his previous State of the Nation Address (SONA), delaying project implementation despite budget releases to the Department of Public Works and Highways (DPWH).
“After my SONA, before last, all the construction contracts halted. Tapos inispeksyon, inisa-isa (Then we investigated everything),” Marcos told Malacañang reporters after he participated in the 18th BRICS Summit in India on Sunday, Sept. 13.
He said the resulting delays meant that projects that would normally have been bid out after the release of the National Expenditure Program were not awarded, causing public spending to fall behind.
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