posts 9.5% increase in government spending in 2020
May 6, 2021
TACLOBAN CITY –
Eastern Visayas Region posted 9.5 percent increase in Government
Final Consumption Expenditure (GFCE) in 2020 from 7.0 percent in
FOE refers to the value
of all types of output of the general government to provide goods
and services to the people for free or at insignificant prices.
Included in GFCE are the expenditures of the government on salaries
of employees, supplies, materials, and other expenses that are
needed in the everyday operations of government institutions.
All other expenditure
items exhibited declines in 2020 with Gross Capital Formation (GCF)
posting the biggest drop at 40.4 percent. Exports of Goods and
Services to Rest of the World further declined to 13.6 percent from
10.3 percent. Imports of Goods and Services to Rest of the World
declined by 17.9 percent from 5.0 percent in 2019. Likewise, the
region’s Household Final Consumption Expenditure (HFCE) contracted
by 7.9 percent in 2020 from 5.7 percent growth in 2019.
Consequently, the per
capita HFCE of the region declined by 9.1 percent in 2020. Per
Capita HFCE was estimated at P79,116 in 2020 lower than the previous
year’s figure of P87,033.
In terms of the share of
expenditure items to the regional economy, HFCE comprised the
biggest share with 86.6 percent, followed by GCF with 26.7 percent,
Net Exports to Rest of the World with 26.4 percent, and GFCE with
24.3 percent. On the contrary, the negative performance of Net
Exports to the Rest of the Philippines pulled down the expenditure
in the region by 64.0 percent.
The economy of Eastern
Visayas contracted by 7.6 percent in 2020 from its 5.6 percent
growth recorded in 2019.
The Gross Regional
Domestic Expenditure (GRDE) complements the Gross Regional Domestic
Product (GRDP) in monitoring the economic performance of a region.
It is the sum of all final uses of goods and services by residents
of the region in the domestic territory, plus their expenditures in
other regions, including the rest of the world.