The continuous growth of the business process outsourcing industry in the Philippines creates millions of direct and indirect jobs for the people. This results in earnings which augment government revenues each year. Economists have attributed the country’s economic boost during the past decade to the expanding BPO sector which, at this point, grows anywhere from 15 to 20 percent.
OFW remittances still provide a stable and strong source of income for the government. While there was a slow monthly growth rate on remittance flow seen last year due to the fluctuations on foreign exchange rates, analysts maintain that dollar remittances will continue to contribute to the bulk of the country’s Gross Domestic Product in 2017. ING Bank Manila forecasts a 6.6-percent growth in the GDP of the Philippines for the year 2017, at a rate of 6.2 percent on the first quarter and 6.1 percent on the second quarter.
Clearly, BPOs and OFWs are considered the primary driving forces in the growth of the national economy.
The improving economy generates greater government revenue. Increased revenue means more money to spend. As legislators, we must ensure that the people’s money is allocated properly. Last budget hearing, we discussed the problem of low absorptive capacity of government agencies. Underspending persists as government projects are being delayed or denied due to unreasonably prohibitive procurement policies. As a result, the delivery of basic goods and services are delayed.
At the time we implemented the Republic Act No. 9184 or the Government Procurement Reform Act (GPRA) in 2003, our country did not have as much money as it has now. The rampant and extensive corruption worsened the economic situation back then. RA 9184 was enacted to curb corruption and safeguard the limited money that we had.
Times have changed.
We have seen aggressive prosecution of allegedly corrupt public officers. Active social media makes reporting, and exposing irregularities, instant.
The circumstances justifying 2003 Procurement Law no longer prevail. Hence, it is necessary for us to amend this law to reflect demands of our country’s present situation.
This amendment comes timely with the advent of the “Golden Age of Infrastructure.” We anticipate aggressive spending in much needed projects all over the country. Our laws should encourage and support the Golden Age of Infrastructure and not stand in its way.