Maniolas

The figure marked a slowdown from 93.4 percent in the same period last year. Philstar.com/File photo MANILA, Philippines – Fund releases to agencies slowed for the fifth straight month in September, but the Department of Budget and Management (DBM) maintained it was not due to the transition in government. A total of P2.75 trillion was released for the first nine months, accounting for 91.7 percent of the P3.002-trillion national outlay, latest DBM data showed. The figure marked a slowdown from 93.4 percent in the same period last year and followed a slowing trend that started during the election month of May. Allotment releases indicate agencies may now enter into contracts for public services, after which funds may be obligated and then spent once checks are available. “The reason is still related to the first answer we gave…It is still not due to transition,” Budget Undersecretary Laura Pascua said in a text message Friday. She was pertaining to the P11.68 billion in releases from the unprogrammed fund last year that was used for rehabilitation of areas hit by typhoon Yolanda in November 2013. Pascua said releases were “quite substantial” last year so much so that base effect may be felt until the end of 2016.  “But releases for the bonuses and additional compensation this quarter may offset it,” she said. In addition, she also pointed to the “large” continuing appropriations of P62.5 billion last year as reason. For this year, that amount was reduced to just P34 million. According to DBM Read More …

MANILA, Philippines – Finance Secretary Carlos Dominguez has assured officials of S&P Global Ratings the country is capable of maintaining a strong economic performance under the Duterte administration. “While we greatly value a ratings upgrade to full investment grade…this is only of secondary importance,” Dominguez said. “In the economic plans we lay down, rapidly reducing poverty rates rank first priority,” he added. The statement was sent to reporters yesterday. The finance chief met with representatives from S&P in Washington after the latter warned that policy stability and predictability has “diminished somewhat” under the 100-day-old Duterte administration. In particular, the debt watcher expressed concern about President Duterte’s war on drugs that allegedly contributed to human rights violations and “undermined respect” to institutions such as the judiciary and media. Dominguez, in the statement, appeared to have not addressed these issues and focused on plans to increase spending and reform taxes to cut poverty rate to 17 from 26 percent. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “Our people expect this. Our government fully intends to meet that expectation. We do not plan on failing the poorest of the poor,” he said. “This goal cannot be accomplished without sustained economic growth.  Over the next six years, driven by investments and targeted public spending, we expect to sustain GDP growth at seven percent or more,” Dominguez said. “We intend to make our economic growth more inclusive,” he added. S&P, in evaluating the Philippines, had already acknowledged the positive impact from the new Read More …

MANILA, Philippines – Electricity rates have gone down for the third straight month in October due to lower transmission and generation charges, Manila Electric Co. (Meralco) announced yesterday. October rates declined P0.1216 per kilowatt-hour (kwh) to P8.34 per kwh, lower compared to October 2015’s P8.42 per kWh. “The reduction is due to downward movements in both generation and transmission charges,” Meralco said. In terms of household consumption, the decrease is equivalent to P24.33 for 200 kwh, P36.49 for 300 kwh, P48.65 per kwh and P60.82 per kwh. This month’s generation charge, which dipped P0.0501 per kwh from last month’s P3.9439 per kwh to P3.8938 per kwh, was weighed down by the lower charges from the Wholesale Electricity Spot Market (WESM). Meralco said spot prices decreased P1.4747 per kwh in September versus August due to lower demand, as Luzon grid’s peak demand was 300 megawatts (MW) less month-on-month. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 This offsets increases in independent power producers (IPPs) and power supply agreement (PSA) costs brought about by higher coal prices and the weaker peso against US dollar, from 46.58 to 48.50. “Peso depreciation has an upward impact on the peso conversion of the dollar charges of the PSA and IPP plants,” Meralco said. The cost of power sourced from plants under the PSAs increased P0.3257 per kwh primarily as coal price in the region continued to increase from $52.85 per metric ton (MT) in June to $67.41 per MT in August. Meanwhile, IPP costs Read More …