In last week’s column, I mentioned the value of momentum, of
carrying it through based on a plan. I also mentioned that planning
is as much about the future as it is about the present.
We
can apply this at many levels, at the personal level, in our organizations,
even in our hierarchy of government.
The
national government has announced that the momentum of economic growth
will continue in 2007 and projects it to grow even higher every year
to until 2010.
The
economy is progressing admirably despite the typhoons that hit the
country in 2006 and slowed agricultural production. There is some
turbulence forthcoming in the political arena particularly during
the May elections.
However,
the elections can do a lot of good because it will stabilize the political
situation thus clearing the way for increased economic growth. In
this sense, the turbulence is something that our economy needs. It
is democracy’s anti-dote to instability.
What
is bothersome though is the delay in the passage of the 2007 budget
of the national government. Government expenditure is a major component
of the Gross Domestic Product (GDP). When this is below target, the
slack has to be taken up by private sector investments, by household
consumers, and through exports.
Perhaps,
election spending can help perk up the economy a bit but these can’t
match budgetary expenditures for roads, schools, and many more projects
that directly promote economic growth.
For
the Gross National Product (GNP) to have an increasing growth rate,
means increasing the rate funds inflows from Overseas Filipino Workers
(OFWs).
The
ideal rate for our economy to really get that quantum leap is a sustained
7 percent growth for 7 years. We can’t reach 7 percent with
the “lower-than-target” government spending for two successive
years.
Congress
and the executive branch of the national government must come to an
agreement and pass a budget that can help reach that 7 percent rate
of GNP growth.
The
momentum of economic growth will slow down and the benefits of such
growth will be dampened by another re-enacted budget.
Clearly,
we need to get our act together and start the year right.