Straight path, stalled economy
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The economy is losing steam with the second quarter growth slowing to 3.4 percent from a year ago based on data the government released the other day.
While the government had claimed, as in the past, that global factors played a big part in the slowdown, the more plausible cause of the screeching economy, however, is the administration’s underspending that has extended all the way up until July which in turn resulted in a capital vacuum during the period.
Latest data also showed that industrial output had contracted during the period, likely as a result of poor government spending.
The administration of Noynoy, taking the claimed self-righteous path, has been holding back on fund releases, subjecting allocations supposedly for review and at the same time implementing a tedious zero budget scheme that releases government resources only as needed, leading to huge delays since this process also faces the usual red tape..... MORE
Source: The Daily Tribune
URL: http://www.tribuneonline.org/commentary/20110902com1.html
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