'Growth hinges on efficient public fund use'

An expansionary fiscal policy can boost economic growth, but a think tank warned that its impact depends on how efficiently and effectively the government deploys the public funds.

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In its expenditure assessment of next year’s budget, the Congressional Policy and Budget Research Department (CPBRD) said that the national budget must adhere to sound fiscal management principles to maximize public benefit.

“Spending within means or aggregate fiscal discipline, resources should be used in a planned and deliberate medium-term strategy within the aggregate resource constraints,” CPBRD said in its report.

The CPBRD noted that despite the steady growth of the national budget, only about 77 percent of annual appropriations are disbursed on average, leaving more than a P1 trillion in unused funds.