Nile Alric Allado BABA3

Phl growth may slow down due to DAP row DBS (The
Philippine Star)
A Reaction Paper

From the imprisonment of the personalities behind the PDAF scam to the
typhoon that is currently on the Philippine Area of Responsibility, the Philippines is filled
with issues too pressing for this country of 7,107 islands to handle. One of these is the
issue on DAP or Disbursement Acceleration Program. This program aims to provide
budget to the Executive Branch for the projects and other kinds of fast moving
disbursements. This was lambasted more than it was lauded by the people for they
think that this fund will be another incarnation of PDAF. The Supreme Court claims that
the said program was unconstitutional while the administration headed by Pres.
Benigno Aquino quickly defended their side by saying that it was not unconstitutional.
Looking on a wider perspective, the issue is not a mere political one. It was also an
economic issue to tackle. The presence of DAP is indeed a major factor that affects our
economy. Hence, many people, especially the analysts are studying it and its effects.

Recently, DBS, a bank based in Singapore, made a research on this issue. On

their research notes, they pointed out that the DAP may slow down the country's
economic growth. Furthermore, this DAP provided a prospect of slower fiscal spending
in the future that may contribute to the slow growth. Moreover, the inflation rates may
rise due to DAP.

Reading the news article provided me some insights on the issue about DAP.
And based on what I have read, DAP is a major issue that can affect the economy. As
much as I respect the President's stand on this issue and his good intentions, I don't
think DAP is helpful. Yes, it can help speed up the disbursement of money for the
projects but it cannot be sustained on a long term basis. The fact that the Supreme
Court ruled it to be unconstitutional is something the President should take note of. In
addition, the DBS provided some analysis on the effect of DAP with them ruling
unfavorably on the program. I agree with what the DBS had written in their research.
Seeing some unfavorable things that could happen in our economy at some future time,
it is best for the administration to also look prospectively not just currently. The
president presented some good things that happened due to DAP this year but the next
years to come may be the opposite. I also would like to highlight the president's desire
for economic growth. If he wants to achieve something for our country's economy, DAP
is not the best choice in my opinion.