The Philippines government is set to increase its infrastructure spending by PhP 60 billion to PhP 420 billion, or up from 3 per cent to 3.5 per cent of the country’s projected GDP in 2014. The move comes after the government estimated that the rehabilitation and reconstruction of areas devastated by the typhoon is going to be extremely expensive. The additional amount is likely to be arranged by reducing the portions of the budget allocations to other sectors which have less important expenditure requirements. Meanwhile, the government is also open to raising its expenditure and budget-deficit ceilings for 2014. Further, foreign creditors, led by multilateral agencies, are also willing to extend concessional loans to help fund the country’s rehabilitation and reconstruction requirements.
