5 things you need to know about PNoys Disbursement Acceleration Plan (DAP)

BY COCOY ON OCTOBER 2, 2013 10 COMMENTS

1. Disbursement Acceleration Plan (DAP) is a government stimulus package. It was meant to address the governments low-level spending. Did it work? The World Bank in March 2012 stated in their quarterly report on the Philippines: The governments Disbursement Acceleration Plan was partially successful and contributed 1.3 percentage points (ppt) to GDP growth in Q4 In 2012, the National Statistical Coordination Board reported: 6.6 GDP. As of the 2nd quarter of 2013, the economy posted 7.6 GDP. 2. The Department of Budget and Management realigned unreleased appropriations from 2010, and 2011 plus windfall revenues from government-owned and controlled corporation dividends. 3. As of December 2011, the government announced that it had already spent 85% of DAP. As of March 2012, the World Bank reported that 53% of DAP were released to National Government Agencies, and 37% to Government Controlled and Owned Corporations as well as 10% to local government units. 4. Former Budget Secretary Ben Diokno is questioning the propriety of DAP. What did Former Budget Secretary Diokno say about DAP in 2011? Heres this article from Malayas business section:

With only 10 weeks remaining of the year, the P72-billion acceleration program will barely have an impact on the countrys growth target. With 10 weeks to go before the end of the year, and the slow-moving bureaucracy, I expect that, at best, only one-tenth of the proposed outlay will be spent this year, the rest will be spent next year, said Benjamin Diokno, University of the Philippines economist. Diokno said that 10 percent of P72 billion, or P7.2 billion, wont make much difference in a P10-trillion economy.
5. So why were Senators involved? Budget Secretary Florencio Abad said on DAP releases in 2012: 2012, most releases were made during the period October-December, based entirely on letters of request submitted to us by the Senators. Image credit: Screenshot of World Banks Table 4.1, Philippines Quarterly Update (March 2012)

Source: The PROPinoy Project