Dap (Philippines) Essay

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A. About the DAP 1. What is DAP? The Disbursement Acceleration Program (DAP) is a stimulus package under the Aquino administration designed to fast-track public spending and push economic growth. This covers high-impact budgetary programs and projects which will be augmented out of the savings generated during the year and additional revenue sources. The DAP was approved by the President on October 12, 2011 upon the recommendation of the Development Budget Coordination Committee (DBCC) and the Cabinet Clusters. 2. What was the context when DAP was introduced? The DAP was conceptualized in September 2011 and introduced in October 2011, in the context of the prevailing underspending in government disbursements for the first eight months of 2011 that dampened the country’s economic growth. Such government intervention was needed as key programs and projects, most notably public infrastructure, were moving slowly. The need to accelerate public spending was also brought about by the global economic situation as well as the financial toll of calamities in that year. While the economy has generally improved in 2012 and 2013, the use of DAP was continued to sustain the pace of public spending as well as economic expansion. 3. What was the effect of introducing DAP? Before the DAP was introduced in October 2011, national government disbursements from January to September shrank by 7 percent year on year and was below program by 16 percent. Because of DAP and other measures (e.g., Catch-up plans of departments/agencies, among others), public spending in the fourth quarter of 2011 grew year-on-year by a whopping 32.5 percent and was above program by 11.8 percent. As an effect, the year-on-year growth of disbursements for the whole 2011 was pushed up to 2.3 percent; similarly the level of underspending against program was reduced to 9 percent. The positive effect of DAP on

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