Eastern Visayas posts 9.5% increase in government spending in 2020

By PSA-8
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 2019.

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.