Philippines - Prospects and problems of the economy

RESTRICTED Report No. EAP-21 This report was prepared for use within the Bank and its affiliated organizations. They do not accept responsibility for its accuracy or completeness. The report may not be published nor may it be quoted as representing their views. INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION PHILIPPINES: PROSPECTS AND PROBLEMS OF THE ECONOMY March 31, 1971 East Asia and Pacific Department CURRENCY EQUIVAIENI'S Before Feb. 21, 1970 US$ 1.00 Pesos 3.90 Pesos 1,000 US$ 256.Lo Pesos 1 million US$ 256,0O After Feb. 21, 1970 US$ 1.00 Pesos 6.435 (interbank)guiding rate since Sept. 1970) Pesos 1,000 US$ 155.40 Pesos 1 million US$ 155,400. FISCAL YEAR In the Philippines the Fiscal Year covers the period July 1 to June 30. This report is based on the findings of an Econamic Mission which visited the Philippines from February 15 to March 5, 1971. Its members were: Parvez Hasan Chief of Mission M.ss H.J. Goris General Economist George C, Maniatis General Economist Hake M. Kamrany General Economist TABLE OF CONTENTS Page BASIC DATA SUMMARY AND CONCIUSIONS i- v CHAPTER I - Recent Trends and Economic Outlook A. Introduction 1 B. Fiscal Trends It C. Balance of Payments 10 D. Money and Credit 15 E. Growth Prospects 17 CHAPTER II - Sectoral Developments and Issues A. Agriculture 19 B. Manufacturing 21 C. Infrastructure Program 24 D. Family Planning 27 CHAPTER III - Balance of Payments Prospects and Foreign Capital Requirements A. Introduction 29 B. Exports 31 C. Imports 33 D. Invisibles 34 E. Debt Service 35 F. Financing Capital Require- ments 36 STATISTICAL APPENDIX ANNEX Page 1 of 2 PHILIPPINES BASIC DATA Area 297,000 square ki.lometers Population Total (adjusted May 1970 Census) 36.6 million Rate of Growth 3.1% Density 123 per square kilometer Gross National Product Total 1970 (current market prices) P37,549 million Real Growth rate 1970 4.4% Per capita GNP 1970 US$1601/ Gross Domestic Expenditure 1268 1 6O 120 (196 prices; in percent of GNP) Consumption 807 1.3 Private 79.1 0. 81.9 Public 9.6 10.2 9.4 Gross Domestic Capital Formation 22.3 20,6 19.1 Fixed Investment 20.6 19.0 17.4 Increase in Stocks 1.7 1.6 1.7 Gross Domestic Savings 17.8 16.8 16.9 Resource Gap 4.5 3.8 2.2 Central Goverment Operations (in million pesos) FY 1969 FY 1970 Revenue from domestic sources 62 3,111 Current expenditures 3/ 3,056 3,328 Capital expenditures IT/ 661 975 Net cash operating deficit 5/ 640 957 2/ Price Indices (percent increase) 1968 1?69 197C7 Consumer price index for the Philippines 0.7 1.7 15.36/ General wholesale price index for Manila 2.9 0.7 19.5 2/ Balance of Payments (US$ million) 1969 19704 Merchandise exports 6F 1,6W Merchandise imports -1sl32 -1,090 Net services -133 -142 Net transfer payments (public and private) 155 120 Current account balance -234 -48 2/ Net Inflow of Foreign Capital (in million US$) 1968 196 19702 Grants and Reparations M50 -W Net Loan Availments n.a. n.a. 228 Net Direct Investment -3 +8 - 1/ 1969: US$207, prior to the de factor devaluation of February 1970. Preliminary. Including capital transfers, Including foreign financed outlays. Including public corporations. Twelve months' averages. Increase between Dec. 1969 and Dec. 1970: 20.6% ANNEX Page 2 of 2 Major Exports (percent) 1969 1970 Coconut products 1-9 Sugar products 18 18 Forest products 33 25 Mineral products 19 20 Others 11 15 Foreign Exchange Reserves (US$ million) Dec. 1969 June 1970 Dec. 1970 Internation Reserves 1/ 126 211 237 External Public and Private Debt (US* million) Dec. 196 Dec. 1270 Short term 196 63 Medium term 423 417 Long term 724 1,093 Total (excluding MF and revolving 1,3W4 1,573 trade credits) Debt Service CY 1970 CY 19712/ Amortiation 373 362 Interest 95 141 Total 1023 Debt service ratio 3/ (Total debt, publTc and private) 33% 33% Bank operations (Dec. 31, 190) Bank loans outstanding US$ 119 million Undisbursed amount US$ 73 million IMF Position Quota uS$ 155 million Drawing outstanding (Dec. 31, 1970) k/ US$ 107.50 million Par Value - up to Feb. 21, 1970 P3.90 per US$ Floating since Feb. 21, 1970 Net reserves of commercial banks plus gross reserves of Central Bank. / Projection. 3 Basis: exports of goods and services, plus public and private tranAfers. Additional Standby of $45 million was approved in Xarch 19716 March 31, 1971 SUMMARY AND CONCLUSIONS i. The Philippine economy found itself confronted with a serious financial problem at the end of 1969, arising out of excessive government spending, increasing balance of payments deficits and a rising burden of short-term foreign debt. The stabilization program adopted in February 1970, consisting of a number of measures aimed at reducing excess liquidity in the economy, limiting the:growth of short-term external debt, the estab- lishment of a floating exchange rate and liberalization of most import restrictions has contributed significantly to restoring a balance in fiscal, monetary and foreign exchange position, The adjustment process has, however, involved a steep rise in the price level and a cutback in investment, and it has not been possible for the Philippine authorities to reduce the short- term debt service burden. ii. The balance of payments position improved notably during 1970 as the current account deficit was reduced drastically from $234 million in 1969 to $48 million. This improvement has come about mainly by an increase of $188 million or 22 percent in export earnings. The Government budget deficit has also been reduced drastically and on the revenue account a surplus of 0457 million is expected during FY 1970-71. The improvement in the Government's fiscal position has been brought about entirely by a growth in tax revenues of 26 percent, which is attributable in part to new tax measures, especially the introduction of an export tax. Reflecting the near elimination of credit creation in the public sector, the rate of monetary expansion slowed down very significantly during 1970; even though credit to the private sector rose ty 16 percent and foreign assets exerted an expan- sionary influence, the rate of growth of money supply during 1970 was 6.2 percent compared with 19.4 percent in 1969. iii. The exchange rate adjustment early in 1970, the reduction of the budget deficit, and the slowing down of monetary expansion had, however, inevitable effects on the level of investment and growth. Provisional esti- mates indicate that gross national product in real terms increased by 4.4 percent in 1970 compared with 6.2 percent in 1969. The slowdown was primarily due to a low rate of growth in agriculture and manufacturing, and to a lack of buoyancy in construction and investment. The general price level, which had remained remarkably stable for several years, showed an increase during 1970 estimated at not less than 20 percent, reflecting the impact of a 50 per- cent rise in the cost of imports. Gross fixed domestic capital formation showed a drop of 4 percent between 1969 and 1970 and the ratio of fixed investment to GNP dropped from 19 percent to 17.4 percent, and compared unfavorably with the peak of 21.3 percent in 1967. Apparently, the drop in public investment during 1970 was much steeper and thus for the first time since 1966 the trend towards an increasing share of public investment in total investment was reversed. The setback to public investment, though under- standable in the light of.the need to balance stabilization needs with growth requirements, does point to the continuing and difficult problem of mobilizing sufficient resources for the public sector development program. Private say- ings patterns are, however, satisfactory. Becau&eof tis and with some rise - ii - in public savings, the overall savings rate of the Philippine economy actually improved during 1970 and at around 17 percent of GNP does not compare unfavorably with most developing countries. iv. Another important but less favorable feature of developments during 1970 was a further increase in the foreign debt of the Philippines. The total foreign debt outstanding (excluding drawings on the IMF and.short-term liabilities other than those of the Central Bank) increased by $228 million between the endlof 1969 and the end of 1970. Despite a substantial increase in total debt, the short-term debt with a maturity of up to one year dropped sharply from $196.4 million from the end of 1969 to $62.8 million at the end of 1970, largely owing to the refunding of over $220 million oif Central Bank obligations by longer-term loans. Nevertheless, the structure of Philippine debt continues to be a matter of serious concern. While the total volume of external debt is not much higher than one year's gross foreign exchange earnings, 23 percent of the debt is payable in 1971 and nearly two-thirds must, be paid within the next four years. The amortization payments of $362 million along with the estimated interest payments of $141 million will mean a total debt service of $503 million during 1971, which is larger than the debt service of $468 million in 1970. The ratio of debt service to total foreign exchange earnings during 1971 will remain unchanged at almost 33 percent, the 1970 level. v. That the Philippines has a much more complex debt problem than was originally believed is brought out by the balance of payments projections in the report. Even disregarding principal payments on new debt which will be incurred during.the period 1971-74, the debt service during 1971-74 will average $410imillion annually. If it is assumed that new debt would have an average maturity of eight years, the debt service burden would rise from $503 million in 1971 to $564 million in 1974.and the ratio of debt service to gross foreign exchange earnings would drop only marginally from 33 percent to 30,percent over the period. vi., Considering that the Philippines: is a developing country with a relatively low per capita income of $160, a reliance on net capital inflows from abroad should be regarded as a normal feature of its economic develop- mentin the foreseeable future. It would be unrealistic and undesirable to expect, therefore, a reduction in the debt service burden of the Philippines to.come through.?a net repayment of debt from Philippine resources, that is through a surplus on goods and non-factor services account. As it is, the balance of payments projections contained in the report provide for a net inflow of resources of only $50 million per year during 1971-74 or less than. one percent of GNP. This implies that investment levels will be determined almost entirely by the domestic savings effort. Even with the substantial domestic saving ,effort, the ratio of fixed investment to GNP would rise slowly from the relatively low level of 17.5 percent touched in 1970. A further reduction in the level of net inflow cannot be undertaken without further reducing the level of investment and economic activity which would in turn seriously jeopardize the prospects of long-term growth of output and - iii - exports. Indeed, the main consideration in not suggesting a larger net inflow of capital into the Philippines has been the likely difficulty of securing capital on terms which would not add materially to the already heavy burden of debt service. vii. The improvement in the structure of the Philippine debt over a period of time must come, therefore, entirely from a substitution of out- standing debt by longer term capital on more favorable terms and with longer grace periods. Part of the difficulty in bringing about an improvement in the debt structure of the Philippines arises from a heavy dependence on private trade credits. Over the next four years, however, the requirements of foreign exchange loans for the public infrastructure program are projected to increase markedly. But an increase in the absorptive capacity of the public sector and a sustained increase in the availability of local currency funds for development are necessary preconditions of a sharp rise in official assistance, which hopefully can come on easier terms. In the near future, the Philippines will have to exercise extreme care in negotiating its new debt with a view to minimizing the service of this additional debt in the next few years. viii. The vital need in the Philippine context of raising the level of tax revenues has been discussed frequently in previous Bank reports. The total. revenues of national and local governments are currently around 14 percent of GNP and are lower than in most developing countries. Notwithstanding the gain of 26 percent in tax revenues during 1970/71, the issue of mobilizing larger tax revenues remains as alive as ever. Firstly, despite the jump in tax receipts during the current year, the public investment effort was clearly inadequate. Moreover, the export tax imposed last year to mop up part of the windfall gains accruing to exporters from the devaluation was approved by Congress for four years only and at gradually decreasing rates. Thus the apparently large gain in revenue of 4WAO million from these sources is not .permanent and would disappear entirely by FY 1975. Furthermore, and this has particularly great relevance for the longer run, the tax system appears to be rather inelastic so that production and income increases do not often result in proportionate increases in tax revenues. A comprehensive analysis of the causes of the lag in revenues in recent years would help to pinpoint the weaknesses of the present system. A review of the various exemptions under income tax and other legislation appears highly desirable. ix. The mission was impressed with the determination of the Executive to close tax loopholes and to improve collections generally. There remains, however, an immediate and pressing need for additicnal taxation during FY 1972. About )0100 million additional taxation would be necessary merely-to offset the automatic reduction in export duties under the Stabilization Tax Law, which will go into effect from July 1, 1971. The tax proposals totalling p269 million to Congress include amendment of the Stabilization Tax Law, as well as taxes on luxury consumption, inheritance tax, tax on idle lands, revision or repeal of certain tax exemption laws, and imposition of fees and taxes on certain forms of gambling after legalizing the activity. The tax proposals are generally well conceived but their passage by Congress certainly poses a problem in an election year. Nevertheless, there is a real urgency about mobilizing additional tax revenue because currently (FY 1971) public investment is lower in real terms than three years ago. x. From the viewpoint of both equity and revenue, the maintenance of export taxes on most products at least at the 1970-71 level (a range of 8-10 percent) deserves high priority. Considering the large windfall"gains becoming available to agricultural exporters through the floating exchange rate, the initial export levies did not impose a heavy burden. For most of the export products which were moving through official channels, the export duties were aimed at best at mopping up about one-third of the increase in export incomes. In fact, the depreciation of the peso through the floating exchange rate went further than was originally envisaged and thus even a smaller portion of the total increase in export income has been captured through export taxes. xi. Despite the likely constraints arising from the insufficient availability of foreign assistance on more liberal- terms and the inadequate mobilization of tax revenues, the growth prospects of the Philippines in the immediate future appear good. Fortunately, the impact of a slow rise in investment on growth in the next few years would be cushioned by a set of favorable factors and thus it might be possible to keep the overall growth rate above 5 percent per annum during 1970-74 as against the Plan target of 5.6 percent. Firstly, output will continue to benefit from the relatively high rate of investment during FY 1965-69. Secondly, and closely related to past investment in key sectors such as mining, the outlook for exports remains good. The export sector, which currently accounts for nearly 18 per- cent of GNP should grow by about 8 percent per annum after allowing for some reduction in export prices. Thirdly, the possibilities of spreading techno- logical change in agriculture are by no means exhausted. Despite the damage from typhoons during 1970, the current signs augur well for continued vigorous growth in agriculture provided a realistic policy framework is established, the right financial support and priorities are chosen and political goodwill is forthcoming from Congress. Finally, even though industrial growth continues to suffer from excess capacity and overcrowding in many industries, the exchange rate adjustment has created a favorable climate for rationalization efforts by opening up possibilities of exports. Meanwhile, because of the financial squeeze on industries, the leverage of the Development Bank of the Philippines over the private sector has increased. The Board of-Investments, which controls and supervises all new investments, is cognizant of the short- comings of past policies and appears determined to reorient industrial policies, especially towards export promotion, and to this end a basic reform of the existing tariff system is planned. xii. In sharp contrast to the slow average growth of less than 5 percent in merchandise exports during 1959-69, the export prospects for the next several years appear good. The mission estimates indicate an annual growth rate of 10 percent between 1969 and 1974. The satisfactory export performance - v - during 1970 was attributable partly to a reduction in unrecorded exports and partly to an improvement in export prices. However, the entire increase in earnings during the next four years is expected to come from an increase in the volume of exports. Between 1969 and 1974, the volume of copper exports is expected to nearly double, while sugar exports should increase by 45 per- cent, log exports by 28 percent, and nickel would be added to the export list in 1973. While prices of most export commodities are projected during 1971-74 to remain at about the 1969 level, copper prices are assumed, on average, to be 25 percent lower. But notwithstanding the downward revision of copper price forecasts compared to last year, the latest export estimates are some- what higher than the last mission's projections and are more optimistic on the whole than the Plan forecasts. xiii. The mission projections assume a much higher growth rate for non- traditional exports, which comprise mainly minor agricultural products and manufactured goods. These exports are expected to double between 1970 and 1974. Their relative share in total exports would improve from 15 percent in 1970 to 21 percent in 1974, reflecting mainly reduced dependence on coconut products and sugar. xiv. The decline in imports during 1970 of 4 percent, even though fixed investment dropped, suggests that the expectation in the Plan (1971-74) to keep import growth at 5 percent per annum is unrealistic. Indeed, after making allowance for some increase in import prices, the last economic mission's projection of 8 percent growth in imports during 1970-74 also appears to be on the low side. Before allowing for price increases, the over- all increase in imports provided between 1970 and 1974 is about 30 percent, indicating a growth rate of 6.8 percent per annum, compared with probable GNP growth of 5.0-5.5 percent per annum for this period. These import projections are in a sense a minimum because they will permit only an 11 per- cent growth of investment goods imports between 1969 and 1974. xv. Even on the basis of this rather modest increase in imports and a substantial growth in export earnings, the capital inflow requirements for 1971-74 are now placed at $1,841 million or $460 million a year and are substantially higher than the earlier estimate of about $350 million a year. These gross inflow requirements, however, are understated to the extent that allowance has not been made for amortization during 1971-74 of debt incurred after December 31, 1970. A rough estimate indicates that, assuming that the average maturity of the new debt is eight years, the gross capital requirements would increase further by about $400 million. Most of the increase will fall in 1973/74 and on adjusted basis, the gross capital requirement for 1974 would thus be substantially larger than at present. This again points attention to the fact that unless her debt burden can be alleviated by more liberal long-term assistance, the Philippines will be faced with an immense foreign exchange management problem. CHAPTER I Recent Trends and Economic Outlook A'. Introduction 1. The economic performance of the Philippines during 1966-69 was in many ways very satisfactory. The real growth rate of the economy during this period averaged 6.2 percent per annum, compared with less than 5 per- cent per annum during 1963-66 and the over-all price increase was limited to 4 percent per annum. The investment level remained high; the ratio 1/ of fixed investment to GNP averaging over 20 percent during 1966-69, compared with around 18.5 percent in the previous four years. What is even more important, previously neglected public sector investments in infra- structure rose rapidly, doubling between 1965-66 and 1968-69, and the ratio of public investment to total investment, though still very low, improved. However, savings performance, which had been such a strong feature of the over-all economic picture in,the first half of 1960's, deteriorated after 1966; the national saving rate dropped-from the peak of 22 percent in 1965-66 to 16 percent in 1968-69. A reflection of the savings-investments gap was the growing fiscal deficit which reached a record level in 1969 and the large increase in bank credit to the private sector. The balance of payments position thus came under serious pressure during 1968 and 1969. While imports expanded by 35 percent between 1966 and 1968 and then levelled off during 1969, exports increased by less than 1 percent per annum during 1966-69. Consequently, the current account deficit (including transfers) reached huge proportions averaging 3.2 percent of GNP during 1968-69. This deficit was largely financed with foreign credits of relatively short maturities. 2. The Philippine economy thus found itself confronted with a serious financial problem at the end of 1969. As foreign exchange reserves declined, confidence in the peso weakened further, encouraging the diversion of ex- ports and invisible earnings into unofficial channels. In this situation, Philippine authorities decided at the beginning of 1970 basically to reorient the economic policies to strengthen the balance of payments and to facil- itate an orderly settlement of the foreign debt. A standby agreement with the IMF was concluded in February 1970 and a comprehensive stabilization 2/ program was adopted. The program consisted of a number of measures aimed at reducing excess liquidity in the economy, limiting the growth of short- term external debt, the establishment of a floating exchange rate and liberalization of most import restrictions. 1/ All GNP, investment and saving data are in 1967 prices. 2/ For details of the stabilization program, see pages 18-23 of the last Bank report on "Current Economic Position and Prospects of the Philippines", August 1970 (EAP-16a). - 2- Overall Developments During 1970 3. The stabilization program was followed by the Government with great determination throughout 1970 and has contributed significantly to the improvement in the balance of payments. Partly as a result of shifts brought about by the depreciation in the exchange rate from par value of P 3.90 per US dollar to 6.43 per US dollar 1/ and partly as a result of increases in copper, sugar and coconut production, the current account deficit 2/ was reduced drastically from $234 million in 1969 to $48 million in 1970. At the same time, international reserves increased by $111 million. The building up of foreign exchange reserves and financing of the current account resulted in a further increase in external debt outstanding during 1970 of $228 million. Production Trends 4. The exchange rate adjustment, the reduction of the budget deficit, and the slowing down of the rate of monetary expansion had, however, inevit- 'able effects on the pace of development activity. Provisional estimates indicate that gross national product in real terms increased by 4.4 percent in 1970 compared with 6.2 percent in 1969. The slowdown was primarily due* to a lower rate of growth in agriculture and manufacturing and to a lack of buoyancy in construction and investment. The general price level, which had remained remarkably stable for several years, showed an increase during 1970 estimated at 20 percent at least, reflecting the impact of a 50 percent rise in the cost of imports. Composition of Net Domestic Product (At constant 1967 prices) Percent Percent Distri- Value in Million Pesos Increase (Decrease) bution 1968 1969 1970 1968/69 1969/70 1970 Agriculture, fishery and forestry 8,019 8,563 8,901 6.8 3.9 34.8 Mining and quarrying 408 478 579 17.2 21.1 2.3 Manufacturing 4,039 4,186 4,271 3.6 2.0 16.7 Construction 792 725 735 (8.5) 1.4 2.9 Transportation, storage and communication 967 1,007 1,065 4.1 5.8 4.1 Commerce 3,410 3,544 3,674 3.9 3.7 14.3 Services 5,657 6,005 6,381 6.2 6.3 24.9 Net Domestic Product at factor cost 23,292 24,508 25,606 5.2 4.5 100.0 Gross National Product 27,635 29,359 30,657 6.2 4.4 1/ This is the rate at which the Peso has been stable since September 1970. 2/ Goods, services and transfers account. See Annex Table 3.1. -3- 5. Value added in agriculture increased by 3.9 percent, compared with an increase of 6.8 percent in 1969. The main factors adversely affecting agricultural output were a series of typhoons, measures to limit log exports for conservation purposes, and weaker demand for forest products in local and foreign markets. Sugar and rice production increased substantially in the crop year 1969-70. Favorable weather in sugar growing areas, increased milling capacity and a larger acreage under cultivation (13 percent) led to a nearly 20 percent growth in sugarcane production. Rice production con- tinued to benefit from wider use of high-yielding varieties, increased fertilizer use and extension of irrigation facilities. 6. Available data indicate that value added in manufacturing industries would show only a small increase in 1970 compared with 1969. The slowdown in manufacturing activity could be attributed to a number of factors, in- cluding import restrictions during the latter part of 1969 and early 1970, the relatively tight credit conditions, the higher costs of imported raw and semi-processed materials, a shortage of liquidity in firms with a high foreign debt share in the capital structure, and to a slowdown in construc- tion which had.especially affected the cement industry. Production of locally assembled automobiles and of certain textile products declined. The former were adversely affected by import restrictions and an excessive number of small-scale operations, and the latter continued to suffer from smuggling. The typhoons adv4rsely affected output in certain industries in areas where electric power had been interrupted. Gross Domestic Capital Formation (At constant 1967 prices) Percent Value in Increase Million Pesos (Decrease) Percent of GNP 1968 1969 1970 1968/69 1969/70 1968 1969 1970 Construction 2,021 1,843 1,876 (8.8) 1.8 7.3 6.3 6.1 Durable Equipment 3,672 3,724 3,461 1.4 (7.1) 13.3 12.7 11.3 Increase in stocks 478 473 519 (1.0) 9.7 1.7 1.6 1.7 Gross Domestic Capital Formation 6,171 6,040 5,856 (2.1) 3.0 22.3 20.6 19.1 Investment Level 7. As a result of stabilization policies and a sharply reduced net inflow of external resources, gross fixed domestic capital formation showed a drop of 4 percent between 1969 and 1970 and the ratio of fixed investment to GNP dropped from 19 percent to 17.4 percent, and compared unfavorably with the peak of 21.3 percent in 1967. Apparently, the drop in public investment during 1970 was much steeper and thus for the first time since 1966 the trend towards an increasing share of public investment in total investment was reversed. The setback to public investment, though under- standable in the light,of the need to balance stabilization needs with growth requirements, does point to the continuing and difficult problem of mobilizing sufficient resources for the public sector development program. The overall saving rate of the Philippine economy actually improved during 1970 and at around 17 percent of GNP does not compare unfavorably with most developing countries. What is needed is to bring about a better balance between public and private investment and to raise the investment level as a whole by increasing the net inflow of resources to the Philippines and by further increasing the level of savings. The practicability of enlarging the current account deficit during the next few years will depend greatly, however, on the level of debt service payments as well as gross inflows. The key issues of mobilization of resources for the public sector and debt service requirements are discussed in some detail in the subsequent sections. B. Fiscal Trends 8. The fiscal position of the National Government has shown a remarkable improvement during the last year. The revenue account deficit, which had grown to P 218 million in FY 1969-70, is expected to be replaced by a surplus of P 457 million during FY 1970-71. The improvement has been brought about entirely by a growth in tax revenues of 26 percent which is attributable in part to new tax measures, especially the introduction of the export tax which was expected to yield an additional revenue of P 440 million. The current expenditures are expected to show an increase of only 4.4 percent between FY 1970 and FY 1971 which is traceable mainly to a rise in debt service. The present restraint in current government spending, notwithstanding a general rise in prices and costs, is commendable. It is noteworthy that in the three years preceding 1970-71, current spending had risen by an average rate of over 16 percent per annum and had been a major factor responsible for the serious imbalance in the budgetary position. - 5 - Government Current Account, 1965/66-1971/72 (In million pesos) 1965/66 1966/67 1967/68 1968/69 1969/70 1970/71- 1971/72Lb- /C Tax Revenue 1,775 2,202 2,491 2,848 3,214 4,024 4,720-- Non-Tax Revenue 306 423 395 403 399 471 477 Total 2,081 2,625 2,886 3,251 3,613 4,495 5,197 Less Transfers to Local Governments 213 286 333 389 502 564 637 Net Central Government Revenue 1,868 2,339 2,553 2,862 3,111 3,931 4,560 Current Expendi- ture (including capital transfers) 2,003 2,210 2,475 3,056 3,328 3,474 3,811 Revenue Surplus/ Deficit -135 +129 +79 -194 -218 +457 +749 /a Rev-ised-estimates. 7T Budget estimates. /c Including collection from additional tax measures of P 269 million yet to be approved by Congress. 9. Despite the impressive gain in revenues and limited rise in current spending, the capital outlays (spending on infrastructure and non-infra- structure capital formation) had to be cut back during 1970-71 in order to eliminate almost entirely the reliance on the banking system for financing the budget deficits. The sharp curtailment in credit creation for the public sector was no doubt essential in order to relieve the pressure on the balance of payments, but the net effect of the stabilization measures on public investment cannot be viewed without concern. Capital expenditure 1/ of the National Government, which had risen steadily from P 347 million in FY 1966 to P 975 million in FY 1970, is expected to decline to P 816 million in FY 1971. Admittedly a part of the increased spending on infrastructure program during FY 1970 occurred under various community projects (P 163 mil- lion) which do not rate as high priority investment. But still, allowing for the sharp increase in the prices of investment goods which has occurred particularly during 1970, the current levels of government capital spending 1/ Including foreign loans. - 6 - compare very unfavorably with the level either in FY 1968 or FY 1969. The lost ground in public investment would have to be recovered quickly during 1971-72 if the Four-Year Plan is to have even a moderate change of success. Trends in Government Spending 1965/66 1966/67 1967/68 1968/69 1969/70 1970/71 1971/72 Percentage growth of: Total expenditure 7.2 13.7 16.3 22.7 12.3 0.8 12.0 Current expenditure /a 8.6 10.3 12.0 23.5 8.9 4.4 9.7 Capital expenditure 7 -3.4 42.7 46.1 18.3 30.8 -16.0 25.1 Revenue /c -0.6 26.1 9.9 12.6 11.1 24.4 15.6 Capital expenditure as % of total expenditure /b 10.1 12.7 15.9 15.4 17.9 14.9 16.9 /a Including capital transfers (- amortization payments). 7b- Excluding capital transfers. 7c National government revenue plus transfers to local governments. 10. The Infrastructure Investment Program for FY 1971 has already been scaled down from the Plan projections of P 976 million to P 775 million. Moreover the price increases of capital goods have been substantially larger than envisaged in the Plan and actual implementation during the year may fall short of the present target of P 775 million. Thus the shortfall in infra- structure in the first year of the Plan may be as large as one-third in real terms. 11. The budget for FY 1972 as submitted to Congress proposes an infra- structure investment of P 1,260 million (local currency spending of p 744 million and foreign loans or reparation of $86 million). While this level represents a small decline of 7 percent over Plan projections, it constitutes a most ambitious goal in the light of current !.mplementation of public develop- ment outlays. As far as can be seen, the success of the Administration's efforts to bring about a rapid recovery in the infrastructure investment level would depend crucially on the additional taxation effort during FY 1972. The President's budget message indicates a budget deficit which is to be met from additional taxation proposals of P 269 million. In case and to the extent that Congress does not approve the taxation proposals, the downward adjustment would be perhaps made mainly in proposed public investment. The current expenditures for FY 1972 which, excluding debt service, are planned to be increased by 8.5 percent, may also bear some pruning. But considering that salary increases of 5 percent are given automatically to public servants - 7 - every year and that the Administrative Reorganization 1/ proposals might not be acted upon by Congress during the current session, prospects for major economies in current spending appear limited. 12. The absolutely vital need in the Philippine context of raising the level of tax revenues has been discussed frequently in previous Bank reports. Notwithstanding the impressive gain of 26 percent in tax revenues during 1970-71, the issue of mobilizing larger tax revenue remains as alive as ever. Firstly, as mentioned above, despite the jump in taxation receipts during the current year, the public investment effort was clearly inadequate. Moreover, the export tax imposed last year to mop up part of the windfall gains accruing to the exporters from the devaluation was approved by Congress for four years only and at gradually decreasing rates. Thus the apparently large gain in revenue of P 440 million from this source is not permanent and would dis- appear entirely by FY 1975. Furthermore, and this has particularly great relevance for the longer run, the tax system appears to be rather inelastic so that production and income increases do not often result in proportionate increases in tax revenues. The tax revenues of the National Government 2/ showed an increase of 60.percent between 1967-68 and 1970-71 but about half of this increase came from additional taxation measures. The normal growth in tax revenue over this period including effects of improvement in tax collection, estimated at 9 percent per annum compared with an annual increase of 13 percent in GNP in current prices. Thus the ratio of tax revenues to GNP would have dropped but for the additional tax effort. As it is, the tax ratio improved from 9 percent in 1967-68 to an estimated 10 percent in 1970-71. 13. In judging the total revenue effort of the government, however, it is necessary to take account of non-tax revenue of the national government, revenues of local government, and mobilization of resources through the Social Security System (SSS) and the Government Service Insurance System (GSIS). The calculation on this basis suggests that total revenues of national and local governments are currently around 14 percent of GNP and are lower than in most developing countries. I/ A Government Reorganization Commission was constituted in 1968, composed of three members from the Administration and three members each of the Houses of Congress, with the specific task of preparing recommendations for economies in government expenditures and policies for a more efficient pursuit of economic development. The findings of the Commission have been finalized and would be submitted to Congress in May 1971. 2/ Before transfers to local governments. - 8- - Revenue Effort, FY 1966-71 (In million pesos) 1966, 1967 1968, 1969 19,Q 197/1 National government revenue 1,868 2,339 2,553 2,862 3,111 ,931. Transfers to local governments 213 286 333 389 5Qz 564 Local governments revenue 360 382 340 385 431 483 Sub-total 2,441 3,007 3,226 3,636 4,Q44 4,978 SSS 107 119 132 146 147 17Q GSIS 111 130 148 254 288 319 Sub-total 218 249 280 400 435 489 Total Revenue 2,659 3,256 3,506 4,036 4,479 5,467 GNP (in current prices) 22,158 24,635 26,830 29,687 34,644 39766 /a Revenue Effort (% of GNP) 12.0 13.2 13.1 13.6 12.9 14.0 /a Estimate. 14. But in the final analysis, it is not so much the level of tax revenues as the outlook for growth which is relevant for Judging the adequacy of a tax system. It is in this context that the Philippines' rather inelastic tax system and dependence on a temporary source of reyeque, vix. the export tax, cause concern. A meaningful tax reform must aim at not only tapping new sources of revenue but also improving the responsiveness of the tax structure to income changes. A comprehensive analysis of the causes of the lag in revenues in recent years would help to pinpQipt the weaknesses of the present system. Generally speaking, the tax program approved in FY 1969, while raising additional revenue eroded the tax basis further by granting liberal tax exemptions 'under personal income tax, lso, these exemptions were regressive as benefits went mainly to higher income groups, The Investment Incentives Act :passed in 1967 with its imporjtant tariff exemptions 'for capital goods imports has also caused a lp_s of rgep. ,In'FY .1971 'Congress approved the Export Incentives Act provding tax ;rjdits, tax exemption fon imported capital -equipment,, and exemption from lexpgrt ax for exporters. 'This 'law would further affect revenue yield. Thw appropr:iate- ness 'of special export incentives at this stage is Ves a g Lg P Ae Tacto fdevaluat'lon 'of the peso by 40 percent since February 1:970 in itself has 'ensured sufficient initial incentives for potential exporters, A xypie of the Export 1ncentives Act so soon after its app.rova ma?j y, however, be :dff.`ifcult. But ,a review of the 'Investment incent-ives Act and sexemptions avaiL4bl;e 'under in,come tax and -other 'legislation appears highly -des:irable,. - 9 - 15. The mission was impressed with the determination on the part of the Executive to close tax loopholes and to improve collections generally. A Tax Census Law passed two years ago would be enforced from this year. It requires all citizens with property (above P 3,000) to file an assets return. These returns would be processed by the Bureau of Internal Revenue (BIR) and used for building up a tax roll. Key personnel have been re- shuffled in BIR and the names of tax delinquents are being published. A Standing Committee, consisting of members from the Joing Legislative Executive Tax Commissionand BIR, has been created to simplify the tax code and to make recommendations on closing the loopholes. The test of the efficacy of these administrative measures would be in achieving the projected growth of 12 percent in normal tax revenues during FY 1972. 16. The immediate and pressing need in the taxation field remains, however, for additional taxation during FY 1972. About P 100million additional taxation would be necessary merely to offset the automatic reduction in export duties which will go into effect from July 1, 1971. The tax proposals totalling P 269 million to Congress do include amendment of the Stabilization Tax Law, as well as taxes on luxury consumption, inheri- tance tax, tax on idle lands, revision or repeal of certain tax exemption laws, and imposition of fees and taxes on certain forms of gambling after legalizing the activity. The tax proposals are generally well conceived but are likely to meet with considerable resistance from Congress in an election year. 17. From the viewpoint of both equity and revenue, the maintenance of export taxes on most products at least at the 1970-71 level (a range of 8-10 percent) deserves a high priority. Considering the large windfall gains becoming available to agricultural exporters through the floating exchange rate, the initial export levies certainly did not impose a heavy burden. For most of the export products which were moving through official channels, the export duties were aimed at best at mopping up about one-third of the increase in export incomes. In fact, the depreciation of the peso through the floating exchange rate went further than was perhaps originally envisaged and thus even a smaller portion of the total increase in export income has been captured through export taxes. The improvement in the incomes of the agricultural exporters has probably further increased income disparities in the Philippines as real wages have fallen due to a steep rise in the price level. This in itself is a strong argument for maintaining the level of export taxation. But even more important should be the long-term con- sideration of using export taxes as a more permanent device to tax agricul- tural incomes which are difficult to tax otherwise. Furthermore, export taxes may be an effective instrument of siphoning off large gains resulting from sudden increases in international prices of primary products like copper, logs and copra. There are certain measures other than taxation which would also have an important bearing on the availability of public sector resources for development in the near future. The payments for gratuities, etc. have been rising as Congress has enacted laws increasing pension and retirement benefits while premiums were kept constant. It is important that these actuarial deficiencies be remedied through legislation. It may also be stressed that in the past, substantial amounts of government - 10 - funds have been.channelled to the private sector, thus reducing the avail- ability for public investment. It is encouraging to note that the Govern- ment financial institutions, notably GSIS and SSS which were engaged in commercial and industrial lending to the private sector in.the past, will concentrate their new loans on housing as well as on self-liquidating infra- structure projects (NWSA, NPC, etc.). GSIS and SSS together will agke p 300 million available for housing purposes in FY 1972 and will take up p. 130 million in Government bonds. National Government support torDevelopment Bank of the Philippines for payments, abroad on loans guaranteed by DB? has taken place in the form of depesits witb, DBP. Thus, DP is required tq repay, eventually tothe Government the amounts made available to it through ear- marking of 25 percent of export duties. C. Balance of Payments. Export 18. The major factor in the favorable shift in the balance of paymepts during 1970 was the improvement in the trade balance resulting mainly from a large expansion in exports. Merchandise exports, which had virtually stagnated between 1966 and 1969, showed an increase of $188 million or 22 percent to $1,043 million in 1970. The rise in total exports, notwithstanding a decline in logs (the largest single export), was attributable entirely to the impressive increases in coconut products, copper concentrate, sugar, fruits and vegetables, and other exports. Though the exchange rate adjust- ment and the rise in export prices contributed significantly to the expapsign in exports, the most important factor was the rise in production of export products notably sugar, copper and bananas. Merchandise Exports Unit Price Index (1966 = 100) 1966 1967 1968 1969 1970 1970 Copra 157 129 123 87 97 110 Coconut oil 75 59 77 51 101 119 Other coconut products 35 28 36 25 37 101 Sugar (centrifugal) 132 142 144. 149 178 113 Abaca 22 17 13 16 17 113 Logs 197 207 208 215 208 112 Wood products 42 42 54 44 47 98 Copper concentrates 75 75 89 133 190 128 Tobacco 12 11 16 17 15 74 Others 81 111 97 118 153 Total 828 821 857 855 1,043 - Annual Increase -0.9 4.4 -0.2 22.0 - 11 - 19. Exports of coconut products increased by 41 percent to $235 million during 1970, reflecting mainly the doubling of coconut oil exports to $101 million. Coconut oil prices showed an average increase over 1969 of 14 per- cent, while copra prices improved by 8 percent. It is noteworthy that exports of copra plus the copra equivalent of oil showed an increase of 28 percent between 1969 and 1970. Only a part of this increase can be explained by the modest rise in domestic production of copra. It would appear that perhaps as much as 150,000-200,000 tons of copra exports (valued at $30-- 35 million) were reverted from unofficial channels to recorded earnings following the devaluation. Earlier estimates of the value of unrecorded exports appear to have been exaggerated, however. 20. Earnings from copper increased by over 40 percent due mainly to increased volume reflecting the full effect on output of increased invest- ments in mining during the last few years. Copper prices, though very high during the early part of 1970, continued to fall throughout the year. The average unit value of copper exports during 1970 showed only a slight improve- ment over 1969. 21. The expansion in sugar exports from 980,000 tons in 1969 to 1,165,000 tons in 1970 was made possible by the commissioning of nine new sugar mills - first since World War II - in 1969 and 1970 and a parallel expansion in sugar acreage and was strongly motivated by attempts at fuller utilization of quotas under U.S. Sugar Act of 1965, in view of its renewal this year. 22. Other exports showed an increase of 30 percent during 1970. While minor manufactured goods rose following the exchange rate adjustment, the full impact of the exchange reform and Export Incentives Act on these exports will probably be felt in 1971 and succeeding years. 23. The export performance of forest products was somewhat disappoint- ing. The output and export of logs were adversely affected by typhoons and subsequent power failures, and slackness of international demand. Meanwhile, the plywood and wood product exports continued to be hampered by high costs. Imports 24. According to preliminary estimates, imports recorded a decline of nearly 4 percent during 1970. Though the breakdown of imports given below is not precise, it does seem that the reduction in imports was confined mainly to capital goods and consumer goods imports, and intermediate goods imports did!not decline. Imports (In US dollars, calendar years) 1966 1967 1968 1969 1970 Consumption 161 204 185 172 144 Capital 297 407 444 444 401 Intermediate 397 450 521 515 545 Total 855 1,061 1,150 1,131 1,090 - 12 - 25. On the whole, it seems that availability of raw materials was not a serious constraint on industrial growth during 1970 and that import liberalization in respect of most intermediate products had proceeded smoothly. Import restrictions on certain 1/ categories of goods, however, continued and it was significant that despite some quantitative restrictions, the decline in imports of 10 percent during 1969/70 projected by the Plan had not materialized. This further confirms the belief expressed in the last Economic Report that the Plan projection visualizing only a 5 percent annual growth in imports between 1969/70 and 1973/74 was unrealistic. Invisibles 26. The invisibles balance on account of services and transfer pay- ments deteriorated from a surplus of $22 million in 1969 to a deficit of the same order in 1970. The deterioration was attributable almost entirely to higher interest payments on foreign debt which jumped by $57 million, from $38 million in 1969 to $95 million in 1970. The receipts on account of Japanese reparations during 1970 were also $20 million smaller than in the previous year. On the other hand, receipts from travel improved very considerably due to the exchange rate adjustment, which attracted back into official channels a large part of tourist expenditures. At the same time, travel expenditures abroad were cut back sharply as restrictions.twere tightened on travel. Foreign Debts 27. Despite the current account deficit, international reserves 2/ increased by $111 million during 1970 to $236.6 million. The increase in foreign exchange reserves and the financing of.the current account was made possible mainly by an estimated net increase in total foreign debt (excluding dues to IMF and short-term liabilities except those of the Central Bank) of $228 million. The first allotment of SDRs, and net IMF assistance amounted to $18 million and $14 million respectively during 1970. The overall net increase in foreign debt during 1970 obscures the very high debt repayments of $373 million effected during the year. As shown by the table below, availabilities of $601 million were necessary in order to bring about the net increase of $228 million in debt. The short-term availments of the Central Bank were largely offset by short-term repayments (excluding debt restructuring); $80 million of short-term debt was contracted and repaid within the year. But the medium- and long-term gross private borrowing at $332 million far exceeded the corresponding repayments of $187 million. Nearly three-fourths of the net increase in outstanding debt was thus attributable to the private sector. The details of this debt are now known, but a large part of it is in the form of suppliers' credit. 1/ The opening of letters of credit for three categories of imports is not permitted. These categories accounted for about 5 percent of total imports in 1068. It is not readily possible to estimate the relative share of other imports which are subject to restrictions. 2/ As defined by the Philippine Authorities: gross reserves of the Central Bank plus net reserves of commercial banks. The IMF definition of net reserves normally includes the foreign exchange liabilities;of Central Bank of less than 12 months' original maturity. - 13 - Availabilities and Repayments of/a Foreign Credits and Loans in 1970-- Availabilities Repayments Net Availabilities Short Term 140 109 31 Public 140 109 31 Of which: Central Bank 140 109 31 Other - - - Medium Term 209 179 30 Public 52 56 _4 Of which: Central Bank 40 13 27 Other 12 43 -31 Private 157 123 34 Long Term 252 85 167 Public 78 21 60 Of which: Central Bank - - - Other 78 21 60 Private 175 64 108 TOTAL 601 373 228 /a These exclude debt rescheduling in 1970: short term -- $143 million US bank credits (into long-term.debt) and $22 million European banks credits (into medium-term debt); and medium term -- $58 million US bank credits (into long-term debt). The foreign debt excludes amounts due to the IMF and short-term liabilities other than that of the Central Bank. 28. The total debt outstanding increased from $1,344 million at the end of 1969 to $1,573 million at the end of 1970. Despite a substantial increase in total debt, the short-term debt with a maturity of up to one year dropped sharply from $196.4 million from the end of 1969 to $62.8 million at the end of 1970. This reduction in short-term liabilities was made possible by the refunding of over $220 million of Central Bank obligations into longer-term loans. Nevertheless, the structure of Philippines' debt continues to be a matter of serious concern. While the total volume of external debt is not much higher than one year's gross foreign exchange earnings, 23 percent of the debt is payable in 1971 and nearly two-thirds must be paid within the next four years. The amortization payments of $362 million along with the estimated interest payments of $141 million would mean a total debt service of $503 million during 1971, which would be larger than the debt service of $468 million in 1970. The ratio of debt service to total foreign exchange earnings during 1971 will remain unchanged at 32.8 percent, the 1970 level. - 14 - la Debt Outstanding- as of December 31, 1970 and Amortization Payments in 1971-74 and Beyond Debt Amorti zation Outstanding 1971 1972 1973 1974 Beyond Short Term 63 63 - - - - Public 63 63 of which: Central Bank 63 63 Other - - Private - - Medium Term 417 169 106 78 47 15 Public 101 58 25 12 5 - of which: Central Bank 64 42 14 4 4 - Other 37 16 11 8 1 - Private 316 111 81 66 42 15 Long Term 1,093 130 128 139 155 544 Public 503 46 53 64 78 263 of which Central Bank 205 10 21 31 55 86 Other 298 36 33 34 23 177 Private 591 84 75 75 77 281 TOTAL l 1,573 362 234 217 200 558 Percentage of total debt 23% 15% 14% 13% 35% /a Excluding amounts due to the MF and short-term liabilities, other than that of the Central Bank. Note: Figures may not add up due to rounding. Source: Statistical Appendix Table 4.7. 29. That the Philippines has a much more complex debt problem than was originally believed is brought out by the balance of payments projections up to 1974, which are presented in detail in Chapter III. It is clear from these estimates that debt service would impose a heavy burden on the foreign exchange position, at least up to the mid-1970's, and that 90 percent of the gross capital inflow during 1971-74 would go to fipance total debt payments (amortization and interest). It also means that net capital inflows would make little contribution to capital formation in the Philippines during 1971-74, the period of the current Four-Year Plan, and investment levels would be determined almost entirely by the domestic savings effort. Con- sequently, the ratio of gross fixed investment to GNP is expected to recover little during the next four years from the relatively low level touched in 1970. A net repayment of debt from Philippine resources cannot be undertaken - 15 - without further reducing the level of investment and economic activity, which would in turn seriously jeopardize the prospects of long-term growth of out- put and exports. To stress the point that the large demand on resources to service external debt may hamper the pace of development activity in the near future, is merely to emphasize that gross capital requirements projected by the Mission are in a sense a minimum. 30. The terms on which external capital becomes available to the Philippines during the next four years will also be crucial. Unless the Philippines obtains a larger inflow of longer-term capital on more favorable terms and with adequate grace periods, she will not be able to substitute long term for medium and short term debt, and the debt service ratio will remain very high. With an average maturity of new debt of eight years but with no grace periods, the debt service will stay close to 30 percent even by 1974. Such a position, though not inconsistent with the creditworthiness of the Philippines, would pose an immense foreign exchange management prob- lem. It might also force the Philippine planners and financial leadership to take a very short-term view of both balance of payments and growth. This underlines the need for long term more liberal assistance to the public sector, particularly in the form of commodity loans or quickly disbursing project aid. D. Money and Credit 31. As a result of stringent fiscal and monetary policies, the monetary authorities managed to contain the rate of growth of money supply in 1970 to 6.2 percent, compared with the unprecedented increase of 19.4 percent in 1969. Particularly sharp was the curtailment of advances to the public sector, which rose by a net P 46 million, or 1 percent, in great contrast to P 1,244 million, or 40 percent, in the preceding year. Credit to the private sector Factors Affecting Changes in Money Supply (In million pesos) 1967 1968 1969 1970 Credit to Private Sector +904 +718 +310 +1,173 Credit to Public Sector, Net +793 +283 +1,244 + 46 Private Time and Savings Deposits -752 -690 -123 - 811 Foreign Sector -390 - 98 -497 + 321 Miscellaneous Accounts of Private and Government Banks -145 - 13 -162 - 436 Net Change in Money Supply +410 +200 +772 + 293 In Percent 12.2 5.0 19.4 6.2 Source: Statistical Appendix, Table 6.1 - 16 - and the transactions of the foreign sector were the main sourceh of monetary expansion. On the other hand, the substantial increase in time!and savings deposits by P'811 million, or by 18.5 percent, and in the non-d;eposit liabilities of the banking ,system 1/by another P 436 million., exerted a sig- nificant ,contractive .effect, and reduced the net increase in money supply to P 293 million. 32. Although credit to the private ,sector rose by 16 percent, the increase in the manufacturing sector was only 3.4 percent .and was not suffi- cient to satisfy the increased needs of business firms for working capital arising from the upward adjustment of the prices of all inputs,, including labor., and the higher peso requirements to service foreign obligations in foreign currencies and to meet increased margin deposits on opening import letters of cr'edit. Though exact figures are not available, most of the increase in credit was probably directed towards financing increased peso requirement in foreign trade sector. 33. To mobilize a greater volume of savings through the banking system, a bill has been introduced to raise maximum rates of interest.. 'The present interest rate structure certainly .does not reflect the relative':'scarcity of capital; .the real yield was actually negative during 1970. Commercial banks were able to attract floating savings through non-deposit instruments of indebtedness at interest rates much higher than the official deposit rates, and to relend at a premium through the method of compensating balances. Also, the sale of foreign exchange to the Central Bank by the commercial banks under swap arrangements to improve their liquidity was an -important contributory factor to the sexpansion .of private credit. 34. The-Philippines entered into a new Standby arrangement with the IMF for another year and in the amount of .$45 million.. The main objectives of the arrangement for 1971 are to continue the policy of monetary and fiscal restraint, to curb the rate of price increases and to maintain-the improvement in the balance of payments.. In the domain of fiscal policy, cash expenditures will continue to be limited to the available resources. In the monetary sphere, the net domestic assets of the Central Bank will not be allowed to increase by more than P 175 million through August'1971. This margin is subject to adjustment by,the peso equivalent of the changes in the net foreign assets of the commercial banks. To increase the 'liquidity of the commercial banks, it is intended to reduce the reserve requirement by 2 percentage points, although by no more than 1 percent prior to August. The measures outlined are expected ro permit bank ,credit to expand by 10-12 percent, which is viewed as consistent with a 5.5 percent growth of GNP and a modezt increase in prices. 1/ They include margin deposits against letters of credit, trust certi- ficates, trading accounts of the Central Bank and the Government banks, inter-bank transactions, and other accounts. - 17 - Prices and Wages 35. In the year ending December 1970, consumer and wholesale prices rose by 21 percent. The food shortage following the damage caused by the typhoons in the latter part of 1970 reinforced the upward price movement. A minimum wage law was enacted raising the minimum for non-agricultural workers from P 6 to P 8 per day, and for farm workers from P 3.50 to P 4.75. However, only a fraction of the labor force is covered by the law while in many instances the law, cannot be enforced. As a result, real wages of skilled and unskilled workers declined by about 9 and 6 percent, respectively, during the first 9 months of 1970. E. Growth Prospects 36. The discussion in the preceding sections of the debt problem and shortage of resources for public sector development suggests that the major constraints on Philippine growth in the near future are likely to be finan- cial. The major limitations on development activity would arise from in- sufficient availability of foreign assistance on more liberal terms and inadequate mobilization of tax revenues, though lags in project preparation might also serve to restrict,the absorptive capacity of long term assistance in the public sector. 37. Assuming that the gross capital inflow requirements of $560 million per annum during 1971-74 can be met by assistance at suitable terms which gives reasonable relief from short-term debt burden, the deficit on goods and non-factor services account would remain during 1974 at less than one percent of GNP, about the same level as in 1970. Assuming a marginal saving rate of 20 percent during 1970-74, substantially higher than the present average of 17 percent, the investment ratio would improve only slightly over the period. For the period 1971-74 as a whole, fixed invest- ment as a ratio of GNP may average around 17.5 percent compared with the Plan projection of 19.5 percent. 38. This rather disappointing prospect for investment causes concern for the long term growth of the Philippines, particularly so because the average growth rate of 5.5 percent per annum during 1963-70 cannot be considered high in the light of the country's resources and economic poten- tial. The Philippines has large resources in the form of agricultural land, mineral deposits, and above all, a level of literacy and general education almost unique in South East Asia, which partly accounts for, and certainly made possible, a dynamic native enterpreneurial class. Awareness of business opportunities and willingness to take risk for profit is widespread among the population, and material advancement ranks high among personal and social values. 39. Fortunately the impact of slow rise in investment on growth in the immediate future would be cushioned by a set of favorable factors and thus it might be possible to keep the overall growth rate above 5 percent - 18 - per annum during 1970-74 as against the Plan target of 5.6 percent. Firstly, the output trends will continue to benefit from the relatively high rate of investment during FY 1965-69. Secondly, closely related'to past investment in key sectors such as mining, the outlook for exports remains good. The export sector, which currently accounts for nearly 18 percent of GNP, should grow by about 8 percent per annum after allowing for some reduction in export prices. Thirdly, the possibilities of spreading technological change in agriculture are by no means exhausted. Despite the damage from typhoons during 1970, the agricultural growth has averaged over 6.1 percent per annum during 1967-70, and current signs augur well for continued vigorous growth in agriculture provided a realistic policy framework is established, the right financial support and priorities are chosen and poli- tical goodwill is forthcoming from Congress. Finally, even though industrial growth continues to suffer from excess capacity and overcrowding in many industries, the exchange rate adjustment has created a favorable climate for rationalization efforts by opening up possibilities of exports. Meanwhile, because of the financial squeeze on industries, the leverage of the Devel- opment Bank of the Philippines over the private sector has increased. The Board of Investments, which controls and supervises all new investments, is cognizant of the shortcomings of past policies and appears determined to reorient industrial policies specially towards export promotion and to this end a basic reform of the existing tariff system is planned. The major problems in agriculture, industry and other key sectors are discussed in somewhat greater detail in the next chapter. The National Economic Council is now engaged in preparing a 20-year Perspective Plan for the Philippines. This exercise would be useful in highlighting the long term possibilities of.growth. It .is clear, however, that if the Philippines is to achieve a sustained growth rate of around 6 percent per annum, it cannot go on very long with a low investment level, which is all that it is possible to afford with resources currently available or in prospect in the near future. Before long, -the fixed investment rate will have to be raised to 20 percent or more as a prerequisite to a more rapid growth pattern and a larger measure of social development, which should be possible in the second half of the seventies. This will require a major resource effort both domestic and foreign. The growth outlook beyond 1974 would also depend much on how satisfactorily the approach towards the elimination in 1974 of special U.S. privileges in the Philippines will be handled;by both parties. - 19 - CHAPTER II Sectoral Developments and Issues A. Agriculture 40. During the last few years, the agricultural sector has grown, on average, more rapidly than the GNP. The Four-Year Development Plan (FY 1971-74) expects this trend to continue; with an average annual agricul- ture growth rate of 6.1 percent, the share of agriculture in Net Domestic Product would increase further to 35.1 percent by FY 1974. The present emphasis on agricultural development is well placed since yields per hectare are still quite low and the possibilities of spreading technological change are by no means exhausted. It would seem, however, that in order to faci- litate high agricultural growth rates, there is a need at this juncture to change the emphasis of agricultural policy away from rice to other crops and livestock enterprises. The most remarkable feature of Philippine agriculture at this stage is the fact that the country has achieved self-sufficiency in rice ahead of the Plan despite adverse weather conditions in 1969 and 1970 1/. The very rapid expansion in high-yielding varieties of rice, the greater use of fertilizer and irrigation water accounts for the sharp in- crease in paddy 2/ production from 4.0 million tons in 1967 to 5.3 million tons in 1970, despite adverse weather conditions. The breakthrough in rice has given a new impetus to the development and expansion of the agricultural sector. The farmers have gained confidence in the efforts of the government and have enjoyed the profits of expanded production. However, it is at this crucial juncture that appropriate measures are needed to avoid market disequilibrium, to maintain stable prices for rice, and shift to resources as necessary from rice to other crops through price incentives and thus provide new opportunities for the farmers. 41. Prima facie, it appears doubtful that further expansion of rice production for exports would be in the best economic interest of the country. Over-all yields per hectare are still quite low by international standards and the quality of rice does not seem to be suitable for export. The further increases in rice production might, thus, have to be limited to the rate of population growth since the income elasticity of demand for rice in the Philippines is reportedly very low. This would mean a growth rate of rice production of 3.5-4.0 percent per annum compared with 6.5 percent growth in the Plan. 1/ Typhoons in 1970 were the worst on record. They reduced the value of agricultural output a hundred million pesos and the two crops hardest hit were palay and coconuts, though the immediate production of coconut rose due to falling of unripe nuts. 2/ Palay. - 20 - 42. A new and young group of technocrats now heading the agricultural secretariat is fully aware of the need to bring about a shift in Agricultural strategy. The specific objectives of the agricultural program are being reviewed and the targets and implementation plans for 197174 are likely to undergo considerable change. While maintaining self-sufficiency in fice, priorities ate to be given to (1) expansion of livestock and poultry as import substitution, (2) crop diversification to feedgrains, suh as yellow corn, sotghum and soya beans, to support the production of livestock and poultry, and (3) the development of fisheries both for meeting dodlestic demabd and exports. 43. fho h&w prioriti6s appear to be reasonable. But the tepercussions of a thange in Agricultural policy have not been fully worked out not are their implications fully understood at present. For etample the irrigatift policy stillbeOs to be too tibsely tied to an expansioh i rice production. The Governielt is, heWever, cohdidering the use of some of the itrigation water from the Upper -fpang Project for crops other thAn rice. If, A sefs probable, inrased emphasis will be give6 to sorghum and btht feed grains in th future, thd need fot ittigAti6n for these rops it 1es@ ald a moti aggressive water development poliy to reduce the t6st of sugst Pto= duction mAy well be more televat over the nekt five years thaftih the paddy areas. At :ptebent only 5-7 percent of area undetr sugar is iftigated aid a substantial Iiidrease it yields could be realized by further itfigati6. Tht need for inct0asing productivity and 16V#ting dostn of sugatchr Alto aribi froi the unctainties 4bout the V8 sugar quota for the hilippii Ad it is impdrative that the sugak industry reduces its vulnerability. 44. The p,ossiblity of agridultUrai retional speciAliatih it 4io worth exaininttg. Yor Inta&t, it hat bten 6taed that h th weni paft of the PhilipPIhes is less suscdpt-ible to typhbn as 6p-i-rd tb the tentral and Northern sketions. Thttffot, epasion of coconut pihtAtf6nM in the South would Veduce the risk of typban damage considerably. biftili p6ai- bilities of dgional specialization &rk worth ifooking idt6 fot 'th'd dbiAlp meat of liittAck and feedgrains, based upon tegional compaattI# advatags This assumes, however, that tht6iih legislative changes or dhafes in the interpretatod of law, it would'b6dot possible to estAblish the 1siting of slaughterhou§es Jn a b6fe tatibha 'basis. 4. A great deal more atteltii is required in the fil- 16f export crops. Cotbdt produti and tfotot ptoducts, which togethef Atduit -to? heatly half of tbtal expobts, have siffteted ftm hiedglet and a laek of clear directib in Government 'pbltis. There is no natidnal 'Pr6gram for expansion abld Ykhibilitation bf tobOut production. The yields have been declining be ckuse of insufficient fertilizer use and inadequate rejuvenat1ng of old plantations (except in the South in the early sixties). Furtherm6te, the existing 'tdit is mainly short term, while coconut growerd heed medium and long-tetm Itedit. Since the Philippines enjoys about 48 percent of the wotld's toconut market and 1i1te domestic prices of cocfut oil may come under pt&sure due to interMtional competition from palm oIl and su'cce§- sive increasa in rates of the U.S. bhport duty on supply f6m 'the Philip- pihes, greabtr efforts inciuding CIhd& for research are requif@4 ,t6 imp6%k - 21 - productivity. Also urger.t in the rationalization of the forestry and wood industries beginning with a redefinition of the whole forestry management policies of the Government in the context of a land-natural resource conser- vation and development strategy and the need to find a balance exporting logs and processed wood products. The latter should include a re-examination of the Government's pricing and tax policies for the use of natural resources in the light of the need to induce greater utilization of major and minor forest products, minimization of forest wastes and greater processing of forest materials prior to export sale. 46. The two closely related problem areas, which continue to hinder progress in agriculture especially towards more even income distribution, are agricultural credit and land reform. The Philippines land reform which was initiated under the Agricultural Land Reform Code of 1963 has made very little headway. The intent was to replace sharecropping with a leaseholding system in the first stage and to fix lease rent at 25 percent of the average normal harvest during the prpceding three crop years, after subtracting costs. The second stage was to convert leaseholders into landowners by paying the owners of the land full compensation through the Land Bank. After several years, only 30 percent of the area involved has been transferred to leaseholders as against the target of 75 percent; actual acquisition of land and transfer of ownership rights to tenants has been negligible. Even the sharecropping tenants who became leaseholders have been forced to rely heavily on the landlords for their credit needs because of inadequate alter- native facilities. Thus the effective rents may not have changed at all. Meanwhile the spread of improved technology specially in rice has greatly increased absolute rents and, therefore, enhanced the value of land which the tenants would ultimately have to pay. Indeed the interest of landlords in increasing the productivity and thus the value of land has been reportedly an important factor in the rapid spread of the green revolution in the Philippines. But as a consequence, income or at least wealth disparities in agriculture have certainly increased. A large number of cases of eviction of tenants have also been reported as landlords have been able to make use of the self-cultivation clauses of the Land Reform Code. There is general agreement that there is need to increase allocations for the land reform program and to simplify procedures in meaningful progress is to be made. A bill proposing amendments to the Land Reform Act is now before Congress and is likely to be passed. This provides for the elimination of the provision for evictions for self-cultivation and also proposes to reduce the ceiling of landholdings, to be tackled on priority basis, from 75 acres to 25 acres. Also, it proposes to extend the first stage of leaseholding to the whole country. The financial requirements of land reform, as presently visualized, however, remain very large and, therefore, real progress is likely to be slow. B. Manufacturing 47. A major weakness of the Philippine economy during the sixties has been the slow growth of the manufacturing sector; the share of manu- facturing in the NDP fell from 18.9 percent in 1960 to 16.7 percent in 1970. - 22 - The limited expansion of industry during the last several years is attributed to the excessive reliance on import substitution during the 1950's Histo- rically, the maintenance of an overvalued exchange rate in combinatioh with a control program which permitted cheap imports of cApitAl gbods, restricted the imports of finished goods and therefore ensured a shAlttred domestic market and high profits for Philippine manufactures. This resulted in spectacular gains in industrial output for some time, but th6 p6§§ibilite@ for easy import substitution were soon exhausted. The tariff system whith replaced direct controls in early 1960's established low rates fo machinery, moderate rates for intermediate goods and raw materials and high rates for finished consumer goods, and thus again encouraged ftishing stage activities which were heavily dependent on imported supplies. Backwad ihtegratioi add export-oriented undertakings remained less profitable because 6f the dis- incentives the protective system set against them. Given the liiited siid of the domestic market, many industries had to operate Ata sub;6pitfad Rcale following the Government's attempt to ensure competitioh &ffrfhaving established high tariffs, by granting incentives to sevei ptddudefi Cheap capital and easy Availment of foreign exchange further promoted excess capacity. Protection also enabled inefficient tndertakIdiia o Uft= economic size to survive. In short, the end result of the pf6tbativ6 p6lieie§ of the past, reinforced by unrealistically low intetest rates, hsa boan tha development of excess capacity, inefficient productiod and a dioV-doUf in industrial growth. 48. Cognizant of the shortcomings of past polidi&sj thd 9iift@it appears determined to reorient its industrial policy. the exehdhge fate adjustment has indeed created a favorable climate fo the etksieturtig 6f industry by improving the prospects of manufactured goods 6kp6rta. 49. The Board of Investments (bOi) is f0e6ndible f6f 0-iififig thai available financial resources and foreign exchange are allocated fi accord- ance with set development priorities. The Foith Investment Mdfitied ian (IPP) for the Fiscal Years 1912-75 gives distinct priority to ifidUsti# with export orientation, producing capitai godda and resu1ting iii backward linkages and further procesding of Orimary productsi 50. Major projects include a eopper smeltef, a niekei profectj ad aluminum smelter and a blast futhacet. A study is under way by the 90i td determine the profitability of the copper smelteri while hgotiations are going on to ensure the equity participation of all steel prdducdts in the construction of the blast furnace and to tesoive the qtidaioi df itd location. The idea of promoting a petro-chemical complek i@ A UO undef P6i- sideration. However, the heavy depeidence df such an industry o impottd inputs, the fast growing capacitieg in the region- and, in Adv9Hed contrideg the rapid technological changes, and the heavy capital require4imits are factors that appear to militate against the adoption 6f thid pfdJett at present. In the light of the preponderant told of Government 06ficy in determining the pattern of investkrtf the Government shoild give some thought to the, relative priorities of a copper smelter, an ald"dan& smelter, and a blast furiace because 6vailability of foreign excafnge ffight be a constraint on undertaking all thoed thee ptojecte at the gatia ffif Id df case, bunching of heavy inddtti&l efdid be *Wided & f&& @ possible. - 23 - 51. Other measures whic h have been instituted or are under consideration include tariff reform and special export incentives. A bill will be intro- duced shortly in Congress to reform the existing tariff system. A uniform across the board rate of 15 percent is proposed for revenue purposes, topped by three protective rates rising at 15 percent ad valorem steps. The restructuring of the tariff system, if adopted, is expected to improve customs efficiency, minimize "technical smuggling", and give more limited protection thus forcing less efficient firms to rationalize production, amalgamate, or go under. 52. To stimulate exports, the Government introduced a package of incentives in the form of tax credits and exemptions late in 1970, which were further linked to the existing investment incentives. The aim was to provide a stimulus of a more lasting character to sustain the initial momentum deriving from the recent devaluation, to bring about a change in attitudes, and to ensure local producers a cost structure comparable to that of the competing countries in the region. The incentives are also extended to traders. To implement the law, the BOI prepared an Export Priorities Plan, which includes the industries with export potential and qualifying for registration. The incentives appear quite generous, parti- cularly the income tax credits. 53. A bill before Congress seeks to establish guidelines for Government policies to alleviate some of the problems of small-scale enterprises and to ensure their development. The creation of an administrative agency - the "Small Enterprises Board" I/ - is proposed with two operating arms: the "Small Enterprises Development Center", by reconstituting the Institute for Small-Scale Industries of the University of the Philippines, and the "Small Enterprises Development Fund". The object would be to provide the overall planning, administrative supervision, direct financing, and technical assist- ance in the form of preparation of feasibility studies and project evaluation, management and technical training, research, production and marketing. The initial capitalization of the Fund will be P 50 million and will be contri- buted equally by the Central Bank, DBP, PNB, GSIS and SSS in the form of long-term, interest-bearing loans. The Board would be empowered to borrow from foreign sources to increase its lending operations and to purchase capital equipment abroad. Such loans would be guaranteed by the Philippine Government. 54. Although the Government stresses the need for direct private investment and its desire to attract it, legislative action is being sought by members of the House for the filipinization of a wide range of economic activities, which would clearly tend to alienate non-ethnic elements and foreign-owned enterprises from the economic life of the country. Bills are now before Congress to filipinize the forestry, lumber, copra, fishing, 1/ This is to replace upon enactment the National Council for Small and Medium Industries instituted in June 1970 as an ad interim body. - 24 - newspaper., teélecommunications, furniture, bakery, private :educatlional institu- tions, motion pictures, embroidery, cottage, pawnshops,, 'bròkerage land'ware- housing industries. ,he impact of such policies of ,econoniirc ,nattionalsm, If adopted,, may :adversely affect the -investment climate in 'the'tRh.imldppines, already commanding a less ,attractive position ýthan othier «count-r±es tin !the region, and nàay,,even.speed up the ongoing process -df disinvestm#»nt. 55. The coveraT11 expansion ,of the manufacturing secgor ýdur;ing "l971-7 ts ,estimated -at 5-6 percent :per ·annum. The expansi.on durIng 1971 ;wonid 7larggy depend on the .resumpt.ion of Npùbtl(ic Works and ,constructIon ,actvity-, rand con zthe ;poss&b1&ty zof ýeas-,ing tqp ýcned-ikt.. -Shoild %these <ex ct-atons xæaterIltze,, sproduction .would be sit-lmullated I-n tthe ,cement,, ýoo:d ^products, iguass .and :steel industr&ies.. The -seIectlve cr.edit 4expans-on by the GC-etral Bank Ifor ,small-scale 4n^dustries, ýfood ýprocessng cndust-rMes iand -.ndus:tes ,cat-erng the low-cost thousing tould ýatlso Ihelp.. Exporte of iew nu'factuned goods ,sudh :as -cemaent )leading to a -fwler ,utPfmzatlon of icapa:itty irouLd oir de -additiona,l 4mpetus ito -ndustr&a,1 Igrowth,. It twas ýencourikgng Ithat .dustrEa4 ,investment, wh-ch had Mhown a <deciine of .9 'percent In l9,69., Ancreased An ireal tterms by ,2 ¿pncent during -1970. C. Infrasttructure ?Program 56. In tcontras.t tto naosýt deveqp&ng kcountmes,, de irole ef T Whe spub 1c ,sector in ýthe IPhtllpp'ne ,economy 1s at present temaIlA. fAfithogh &nder tthe Ifirst Marcos /Adm.nistration -i,p:bc 4nvesýtment was kmtre ýthan Job)ed,. jprivate ±investment st.1>01 accounts Tfor mearly 9D percent (df miotal Xnvszment. 4he REour-Year fDeveNLqpment ýPilan, Ihoever,, ca'lls £.ør ta mgi-ff1-cant lncrease in the leve-l oT piVLkc 4nvestment zand iproects ian Ancrnease In -T" thare lin ýthe 4total from .IM.7 percent :4in FiY Ml9ý69 mto k18,.8 jpercent 'in W Æ9744. *There is mo doub:t that :-idfrast-ructure Invesktments n the Mhlpp&nes C-oritýinue sto be :extreme!%y Tnadequat,e and kact ias za 'sterious constra-int mon irapl,, zagrl- kcuilturai :and : adustr-al edeveIqpment,. Roeover,, ,goyernment keaptME,l oUtl3ays Ior ýsoc-ial ser,vces, :notåb,y ,urb.an deveiopment and heakth,, thae (been very ,smati-. Both Mor ,soela'l and <economa-,c deeqpment., ,the (Government ýimustt tpMay an Increasnglky 4mportant molle in itke RhDlpp,-nes,. ]As dJlstcussiei ýeusweheeý, kthe -rate 'of Ancxease iof ýpub:Ic ngesitment twould ýprôb:åby å aso ditermne ýt'he bbiity 'of the )Phi1ippines -to absotb ithe ,much neede~d econcesslonary :assist- ance from bàbnoad,. 57. ,Moire than !85 ,percent (of piblL&c mnves*ment As ^in ithe Æform ýof zspending :on %dfrasttructure. 2he -i,'frastructue .p.rpgram 4ncuded iln (the sour-Year PLan (FY 197!l-74N) pro,ided for an inmestment .of P (6,..2 Mb,,'Ilton in kcurrent price's and represented an Éncnease in real kterms of (over )150 ,percent above ithe .'eveL ,of .the sprevious 1,our ýyears (FY T996f-7,).. -En itih'e »ktght 'of ,the ~financial s:tr~ixggency and ýthe 14key p.ertformance <during The :férst year '(FY 11971') , the ýprp,gram 'has aready hbeen >rev&-sed doawards.. Me lpwram mnow adopted is -Ebo~t ýL8 ;prcent ýsmalier (tban the ocgèna1, bat is1ace price -inc-reas.es have (exceeded ,earlier empectatlons tihe meat 'nedugt&on .s Yarger. slIt zis snot.ewor:tby,, Ihowemer,, tt,haýt <desýpIt-e isùbsktantiaL radiustment tw4o ards,, - 25 - the present program is at least 50 percent larger in real terms than the actual implementation during the last Plan. Furthermore, if the program can be implemented, it would mean doubling the ratio of public investment to GNP to over 4 percent by 1974. Annual Phasing of Infrastructure Program Original Program Revised Program FY 1971-74 FY 1971-75 la la Fiscal Year Domestic Foreign Total-- Domestic Foreign Total-- (Million (Million (Million (Million (Million Pesos) US$) Pesos) Pesos) US$) Pesos) 1971 600 71 1,026 535 40 775 1972 780 94 1,344 744 86 1,260 1973 900 151 1,806 831 117 1,533 1974 1,080 152 1,992 957 145 1,827 Total 3,360 470 6,180 3,067 388 5,395 /a Conversion rate used: US$1 - P6. 58. An examination of the phasing of the program suggests, however, that the effort to raise the spending from P 775 million in FY 1971 to P 1.827 million in FY 1974 would encounter the familiar bottlenecks 1/ of inadequately prepared projects for foreign financing and insufficient local currency availability. The absorption of foreign loans in the infrastructure program is projected to increase from $40 million in FY 1971 to $117 million in FY 1974. While this might not be impossible, the present indications in terms of project preparation certainly do not give cause for optimism. For instance, the absorption of foreign loans is expected to increase to $52 million in FY 1972 but more than half of the disbursements are assumed to be under projects which have yet to be negotiated. The amount of committed but not yet disbursed long-term official loans at $118 million at the end of 1971 was rather small and of that, two-thirds relate to IBRD loans. Special efforts, possibly the establishment of a highly staffed Central Projects Bureau, are needed if the Philippines is to overcome the lack of a sufficient number of aid-worthy projects. 1/ Both these constraints often overlap and it is difficult to predict which one may be overriding at a particular moment. - 26 - 59. The need for mobilizing larger resources in the public sector for supporting the infrastructure program has already been discussed in some detail. Mention should also be made of the need for strengthening project management by attracting highly qualified and competent professionals to the public sector. 60. The sectoral composition of the revised program is given in the following table: Sectoral Composition of Revised Infrastructure Program FY 1971-74 Domestic Foreign o t a 1 (Million (Million (Million Pesos) us.- Pesos) Percent Highways 1,350 61 1,716 31.8 Airports 136 44 399 7.4 Portworks 123 22 254 4.7 Railroad 20 24 164 .3.0 Telecommunications 79 44 342 6.3 Irrigation 393 54 714 13.2 Waterworks 245 .36 461 :8.5 Power 315 70 .737 13.7 Rural electrification 76 10 136 2.5 School buildings 83 19 194 3.6 Flood control 60 2 71 1.3 Shore protection 13 - 13 0.2 Buildings/fHospitals 51 - 51 0.9 Miscellaneous public works i80 - 80 1.5 Preliminary engineering 43 3 :62 1.1 Total 3,067 388 5,394 100.0 61. Transportation accounts for 46 percent of the total investient proposed in the Government's Infrastructure Program. The bulk of investment in the transport sector (70 percent) would be for highways with aviation (15 percent), ports (10 percent), and railroads (5 percent) accounting for the balance. This is generally in line with the recommendations of the UNDP-financed Transport Survey - for which the 1BRD served as Eiecuting Agency. The equipment required for the reconstruction of two high priority roads in Luzon will be financed from the proceeds of a loan contracted with the Ex-IM Bank of Japan; construction financing of two high priority roads in Mindanao has been obtained from the ADB and the IBRD. Both institutions plan further investments in highway projects. The importance of port development is also stressed in the Transport Survey but the Government's investment decisions in this respect should take into account the relative development priorities of the ports identified by the Transport Survey as needing reconstruction including, in particular. their relevance to highway projects planned and underway. - 27 - 62. The power sector, including rural electrification, ranks second in relation to total infiastructure investment accounting for 16 percent of the program. While this is consistent with the expanding power requirements of the Philippines, there is a real need for a well--developed generation and transmission program in which investments by bilateral and multilateral agencies should be carefully coordinated. In view of its inadequate domestic resources, the Government should also ensure that the state-owned National Power Corpor4tion (NPC) - the major supplier of power - should meet a reasonable proportion of the domestic financing requirements of the program from its earnings. Among the specific issues to which the Government should give serious consideration are: adequate tariff increases which would enable NPC to finance part of its capital requirements; the need for joint planning between NPC and the privately owned utility in the Manila area as to the most economic development of generation and transmission facilities; and the selection of investments in rural electrification in accordance with economic criteria and the phasing of such investments to coincide, where applicable, with planned new transmission. D. Family Planning 63. The 1970 Census results imply an average annual growth rate in population in the Philippines of 3.1 percent during the sixties. This rate of growth is lower than the previous estimate of 3.5 percent, but in view of the probable acceleration during the decade, present growth rate must still be very high. So far, no family planning program has received financial support from the national budget, though a bill has been introduced in Congress proposing a P 15 million appropriation for operating funds of the Population Commission. The Population Commission is a new agency directly under the President, in which the Departments of Health, Education, and Welfare, as well as other public and private organizations are represented. USAID has been the only large foreign donor so far. The total amount obligated in FY 1970 was'$5 million; of $2.8 million dollar funded peso costs 48 percent was for service and administration, 22 percent for train- ing and education, 27 percent for information and communication, and about 4 percent for research and evaluation. The USAID program is essentially a flexible program and has been gathering momentum. 64. The overall progress in providing family planning services in 1970 was encouraging. Mainly thanks to the expansion clinics (about 600 clinics in January 1971 as against 270 in Januaryl970), the monthly number of new acceptors (all methods combined) rose from less than 10,000 in January 1970 to nearly 25,000 in November 1970. -, 28 - Number of ác.eptots per yeat 1961 23,,500 1968 41,806 1969 85,-200 1970 200,0Öó a. PreMminary. Ntaber of e11ig~1 bIë öÉan -a4 eåt-fted at 4. Mi1tion io Ä 65., II " &as ehöe* by 48 pérceft 6f äeteéptdës bëtwéeW 1464 ff 196; 24 gérent acceptdL the' t" , MW p-eta éiUt chose thythM Wfik 1a 3 PeTceëft toök öthé- dthödS. The piIl te.a"e. iWctéaåi!ngly populär, fub, äteeptahcé, dealfña'xid thr-dghö't tå-eäe YM'räo the, thytfäläetköd ä,!,'E gåwirrd- #6opuify0 if -1969. e CM-Må öf fthiWWs 6ppars tö M, fäft.& ätIOY' y e- préiéäé prefÉf7te- of 6-t i pd1ö ätidait ? ativation 6fT evtiäL lbri HefItii neits fUr kåb»- 014äg i-eävLc , f pfögeIfi but M6Y fäff C-ilm biWtg-, the- pC£iä'te lbtMcs st-fII föri the bacöike ot -% åeftf'Cé pfiögffe 66. the fdoplåtiof C'ä'äfft w åtv- tárget ff 191 & 6 efft lf ý5&0,ipW -fiW a€ept-tr a- töfftft WhIeW ~6d Cbféé.jdffi tod & tKUMU2` öt CdIMUfÏtfW ateptorsr o£ avündd 1.$ milion 6at f a totäär df närffëf ~ffi kl tkw MWäfteW måb: gry-wý of''~vt. 5- MIPIIMVät Iftl- fpy€wfo c6 ht ms Emw£~f' IfhÖUOg -föt iapasf&ä tkrgét; Mtk tfie grop öf fflfW 4~ti wüIfew häi- beff aröHiedyö pré my båä IMYbet~ tioeiå diff. 67, At 'é['é p-etat t&gé, at dfek dtffi6w 6f töléä" Qmak. äf,ght kÉ åpétif.ieiy W-ftöd t PMfff mt 6f puietnoi rgaf«fftk~j MW, Köt- 7öét UM r&fi'It,éa"i. ä@ pt -4Mn thW e- M mglrå ffö-t öv fow- döo'åwc-iu om ~-€ Mfäw bt the é*Iit-ft, å-ttft 61t dtiV-itfén». &éWI, eteittlög gÉbi'r Ofé: töfimät-šidå da, tov.!äti."if o~tä,f Ptötfigiä. gidffig gd6fú w f óideäf tf ammyä't:lc Y-årkläg- äffd pr6ft:ftj ffit- é4~'£0ä'r df cffteetf éff4t e-#b %éiies daénWge most' ät'ätftoi W62* umifTg tht fiöig ffi täw 'toåtu'ú tö Ut *ecr ft - ffŠk Z-i - 29 - CHAPTER III Balance of Payments Prospects and Foreign Capital Requirements A. Introduction 68. The last Bank Mission Report had prepared detailed balance of payments projections for the years 1970 to 1974 and estimated gross capital inflow requirements on the basis of these projections. These estimates were, however, highly tentative because the impact of the exchange rate ad- justment on current account balance of payments could not be predicted with any great certainty. An attempt has, therefore, been made to review and revise the payments forecasts for the years 1971 to 1974 in the light of actual developments in 1970. The revised forecasts also take account of the more complete and up-to-date information on outstanding external debts in estimating debt service payments. Nevertheless, substantial information gaps still exist in respect of certain key areas such as coconut production and exports and while unrecorded exports and other foreign exchange transac- tions have apparently been substantially reduced following the adoption of a more realistic exchange rate, they have perhaps not been eliminated. Thus the estimates should be regarded essentially as indicative of the broad trends in the balance of payments. Furthermore, these forecasts are rather crucially dependent on the assumption that the official exchange rate would not greatly differ from the free market rate in the foreseeable future and that the relative attractiveness of official channels for exports and in- visible transactions would not suffer. 69. The detailed forecasts of exports, imports, invisible transac- tions and debt service are discussed in the subsequent sections. A summary of the estimates, is, however, given in the following table: - 30 - Summary Balance of Payments Projections (Million US$; Calendar Years) 197 1971 f972 1973 1974 Exports 1,064 1,127 1,234 1,322 1,427 Imports 1,090 1,175 1,295 1,425 1,565 Trade Balanceý - 26 - 48 - 61 -103 -138 Net invi,±bles & transférä /å + 73 + 93 + 94 + 79 + 68 Debt sétvice -468 -503 -387 -383 -372 Iñtéât st (95) (125) (88) (71) (53) fåtét'eåt än fek débt (16) (64) (95) (118) Amortizetion (373) (362) (235) (217) (201) ResefVe inätease -110 - 45 - 45 - 45 - 45 Eriöt & O.iifönÉ8é9 - - Capitái ite4ififéäieité 620 /b 503 399 452 487 Net i iw åtc 247 141 164 235 286 Net tftfåffårId 152 - 12 69 115 lä Efclùditf i:ttîéét Påytåéfitå lb-. te Šé $80 mimi loans åoätracted and repaid within the year. Jt, toåss iIöw 6f tåp-ttä- lésas amörtizatin,. jd Gtoss Läklöw less -ainttization and interest payments. 7. Ää -hê åböve table din at'eä, the gros !capital inflow require- mnits för tåhå :etfod té4 åöv pliaced åt -$21II'4 million or $460 million A year and Åte subshtaitti;ay ;higher than the eariler estimate of ,about $350 iill±on a yeAr Rut -it is signif.itant :thaft '90 percent 'of total jgross inflow Vould be äofŠät by débt 4sévåce »åyåents. and that net transfer -of foreign 'funds to thé åhaiippines ln thie ft"- of def,ci'ts ion goods and on-factor ser-i;ceå accöut öild fndeed -be Péatirely .små-. 71. 1t.ïäg also be streäe -thåt the increase of '$451 miion In ;gross inkhw r.u täéiniëtå duttig 197 1.i-74 :cotpared to the earlier les,timate stems largely tmoin 4hi upwad rev-ia:n .int the estimates Aof amorttization ipayments '(from $846 tmiiälbii to '$1,5 miiitS) and interest )paymetits 9from 1$3272 kmil- lo tö $60hiel i).. !h rtäevd ittade and invisible accounts 4estimates 'taken togethkäf åat-ually shi- imptovement 'over (earier forecasits idue -to more f aotable exle~t ;and nv;is4blé 'eåthings -projettions vhidh are only partly 'offiset by -bomåeKh'at larger -assessment of impor:t irequirements. 724 ;n fortant Emitaiò 'of tie ýestimates of g.ross %capital inflow presented ,ab»k 4s that the debt seritce åtatsitItcs do Cot include an estimate 'or emorè¥zät.itein 'pkymeats 'o irebit- intútred af-ter December 31,, 2970,. The gros~ 'scapiThai îñftftow rqufrênen'tsa ithus unders;tated. /A -wonghestimate InUrcatfes 'tWt if 'the :i'ew :rdtb't diSt:n'g 1974-44 ihas ;an average maturitsy of reli.ht year4, rådåttönal grö' s Amp¶taa. sequtiire~nWt-s would Ibe about '$380 mil- ÄkL<c,. 'of t hl trional äåïnÖunt,a .'$W mion- vould Ibe required 1n 19,3 and Š20 Winaitoh sutåcng t9'4. - 31 - B. Exports 73. In rather sharp contrast to the slow average growth of less than 5 percent in merchandise exports during 1959-69, the exports prospects for the next several years appear good. The Mission estimates indicate an an- nual growth rate of 10 percent between 1969 and 1974. Growth of Exports Earnings (In million US dollars) Average Annual Growth Rates Percent 1969 1970 1971 1972 1973 1974 1969-74 Coconut products 163 230 201 217 229 241 8 Sugar 158 184 211 221 232 232 8 Logs 215 208 228 252 264 276 5 Wood products 44 47 56 62 70 78 12 Copper concentrates 133 190 178 186 180 187 7 Other minerals 27 34 34 37 49 91 27 Miscellaneous 115 148 197 237 276 300 21 Total 855 1,043 1,105 1,212 1,300 1,405 10 74. As mentioned earlier, the very satisfactory export performance during 1970 was attributable partly to a reduction in unrecorded exports and partly to improvement in export prices. However, the entire increase in earnings during the next four years is expected to come from the increase in the volume of exports. Between 1969 and 1974, the volume of copper ex- ports is expected to nearly double, while sugar exports would increase by 45 percent, log exports advance by 28 percent, and nickel would be added to the export list in 1973. While prices of most export commodities are pro- jected during 1971-74 to remain at about the 1969 level, copper prices are assumed, on average, to be 25 percent lower. But notwithstanding the down- ward revision of copper price forecasts compared to last year, the latest export estimates are somewhat higher than the last Mission's projections and are more optimistic on the whole than the Plan forecasts. 75. The Mission projections assume a much higher growth rate for the non-traditional exports, which comprise mainly minor agricultural products and manufactured goods. These exports are expected to double between 1970 and 1974. Their relative share in total exports would improve from 15 percent in 1970 to 21 percent in 1974, reflecting mainly reduced dependence on coconut products and sugar. 76. Coconut products, which at present account for 22 percent of total exports, are expected to grow rather slowly during 1970-74 showing an aver- age annual growth of 1 percent per annum. This is mainly because it is felt that production and exports during 1970 were unusually high as typhoons caused the unripe nuts, which would have normally been harvested during - 32 - 1971, to fall. The exports of coconut products are expected to; decline by over 12 percent during 1971 and rise 6. percent per annum thereafter. But as mentionedearlier, the unreliability. of production and export data in. respect of coconuts leaves a rather large margin of errorin. any estimates. The share of' coconut oil exports' in the group,- which showedz a remarkable increase during 1970., is expected to increase further and by 1i974 nearly half of the coconut product earnings would come from thisi source, compared to barely 30i percent in 1969. It may be, mentioned that the Philippine ex-' ports of coconut oil to the U..S. will. face rising import duty up to, T974. when the preferential margin will be completely eliminated. 77. Sugar exports, which after having., beei stagnant im the past six years increasedt by 18 percent during 1970, are expected to. improve further by 45 percent during, 1970-74, reflecting. mainly the. expansion im sugar mills capacity which has already taken place,,, and no; further increase In the number of sugar mills is being, planned. The production of` sugmcane wouldi increase, however,, due to increased irrigation, and fertilizer use and improved varieties.. The projjections assume that the revisiot in U(.. Sugar Act of V965 due this year- would not greatly affect the leve, ofF total sugar quotas for the Philippines. 78'. From T960f to 1969, export of ogs, grew at 11 percent per year., Between 1969 andi 1'9,7'4,, it is estimated to grow at an. annual average of 5 percent per year. In spite of the Governmentsi policy to promotei exports of processed woods, export of forest products ist dominated by, logs and will continue through 1974, although some marginal improvement In the, export of plywood isi expected. Ialegal cutting,, smugg-ling, and under-reporting, however, continue to. make accurate estimates of forest products experts very difficult. 79., Exports of mineral products; are estimatedl to grow little between 1970 and 1973 because the.copper price has tended to stabilize at low. level and wouldi offset the further large gain in productfon expected durng the current year and next year. It is only with the starting of commexcIal production. of the nickel plant probably in late 1973 that a mader increase in this group can be expected. 80. All other exports together are expected to show an, average annual growth of 2 percent (from T969-74), rising to $300 million in 194., A more optimistic forecast of other exports is based partly on the 30 percent: growth during 1970', when. the full effect of the exchange' rate adjusitment and the Export Incentives Act on manufactured goods exports was 'yet to. bel felt. Simultaneously, a sharp growth in exports of' bananast and pineapples is expected. There. are export possibilities in a variety of canned fruits: and vegetables and meat. preparations. However, exportation is hampered by inadequate' and irregular supply of raw materials. - 33 - C. Imports 81. As mentioned earlier, the decline in imports during 1970 of 4 percent, even though fixed investment dropped, suggests that the expecta- tion in the Plan (1971-74) to keep import growth at 5 percent per annum is unrealistic. Indeed after making allowance for some increase in import prices, the last economic mission's projection of 8 percent growth in im- ports during 1970-74 also appears to be on the low side. The revised import projections are summarized below: Imports (In US dollars, calendar years) Goods 1970 1971 1972 1973 1974 Consumption 144 147 154 162 170 Capital 401 420 458 500 545 Intermediate 545 608 683 763 850 Total 1,090 1,175 1,295 1,425 1,565 82. The increase in import requirements during 1971 is estimated at $85 million. Of this amount, nearly half will be necessary to accommodate the rise in the prices of oil and other imports; the hike in oil prices alone, according to an estimate of the Philippine authorities, is likely to cost $20 million. The real increase provided in import volume during 1971 is thus only 4 percent. It would be possible to keep the imports at this level only because investment would rise slowly from the low level reached during 1970. 83. For the years 1972-74, a 10 percent increase in imports has been projected, including a 2 percent per annum price increase. Even this as- sumes that investment will grow during this period at only a slightly faster rate than GNP and that the total investment goods imports in 1974 in real terms would be only 11 percent higher than in 1969. A more rapid increase in the availability of imported intermediate goods is assumed partly be- cause manufactured goods exports involving imported raw materials are ex- pected to increase substantially over the next few years. Before allowing for price increases, the overall increase in imports provided between 1970 and 1974 is about 30 percent, indicating a growth rate of 6.8 percent per annum, compared with probable GNP growth of 5.0-5.5 percent per annum for this period. 84. It may also be mentioned that the import projections have been made on the basic assumption that availability of more liberal assistance will be a limiting factor and thus no major increase in the imports of investment goods has been provided for. - 34 - D. Invisibles 85. The estimates of invisibles (including interest payments on exist- ing and new debt) are presented in the following table. Invisibles & Transfers /a (Million of US$; Calendar Years) Receipts 1970 1971 --- 1972 Lb 1973--- 1974 - Freight & Insurance 18 20 22 24 26 Travel & Other Transportation 101 105 111 117 125 Investment Income 11 11 11 11 11 Government n.i.e. 67 75 75 75 75 Other Services 44 55 60 66 73 Private Transfers 94 102 105 108 111 (US Veterans Adm. Pensions) (65) (70) (72) (74) (76) Reparations 15 25 35 35 35 Other Government Transfer 13 13 13 13 13 Total 363 406 432 449 469 Payments Freight & Insurance 90 104 113 128 141 Travel & Other Transportation 49 50 57 64 71 Direct Investment Income 42 47 52 57 62 Government n.i.e. 16 16 18 20 22 Other Services 91 93 95 98 102 Transfer Payments 2 3 3 3 3 Total 290 313 338 370 401 Net invisibles & transfers +73 +93 +94 +79 +68 /a Excluding interest payments. /b Bank mission estimates. Excluding interest, the invisibles and transfers account showed ra surplus of $73 million during 1970 compared to a surplus of $60 million in 1969. As mentioned earlier. the improvement resulted mainly from a shift in travel and other transportation account from a deficit of $28 million to a surplus of $52 million. On the one hand, the tightening of restrictions 'reduced travel expenditures and on the other the depreciation of the Peso -attracted back into official channels a large part of tourist expenditures. The im- provement in travel account was partly offset by the decline in Japanese reparation, private transfers, and Government outlays reflecting mainly a reduction in U.S. military spending in terms of dollars. - 35 - 86. The projections indicate that the net invisibles balance would improve further to $94 million by 1972 and then decline in the next two years to stand at $68 million in 1974. The improvement would come mainly from larger reparations, while the reduction in surplus in the final years of the Plan reflects the assumption that travel expenditure would have to be in- creased at least to the 1968 level. 87. It may be mentioned that the above projections are considerably more optimistic than contained in the last mission report. On a cumulative basis, net invisibles (exclusive of interest payments) are expected, accord- ing to latest projections, to contribute $334 million to the balance of payments, nearly $200 million more than in the previous estimate. The shift is based mainly on net income from the travel account. E. Debt Service 88. The estimates of debt service presented in the Summary Table (para 69) indicate that debt service payments will come down from $503 mil- lion in 1971 to $371 million in 1974. However, as pointed out earlier, these estimates do not make allowances for any amortization payments on new debt which may become due during the next four years. Assuming that the average maturity of the new debt is eight years, the substantial additional debt service burden is indicated for 1973-74. According to a rough estimates, this will raise the total amount of debt service for 1974 to $564 million, indicating a debt ratio of 30 percent to gross foreign exchange earnings. Thus it is clear that unless the Philippines is able to obtain long-term more liberal assistance, particularly in the form of long grace periods, the ratio of debt service will remain high for several years. 89. The need for effective management of the external debt has recent- ly received legislative recognition with the incorporation in Republic Act No. 6142 of a debt limitation clause. This stipulates that in contracting external debt the Government should ensure that the resulting debt service on both public and private debt should not exceed 20 percent of the average of the foreign exchange receipts for the three years preceding the year in which the debt is incurred. The foreign exchange receipts are defined, however, to include gross capital inflows and therefore the ceiling of 20 percent corresponds to a much higher ceiling (about 29 percent) 1/ in terms of our calculations. Moreover, the legal requirements are in terms of fiscal years and, therefore, not directly comparable with calendar year data. 1/ Based on the relationship of exports of goods and services to gross capital inflow during 1972-74. - 36 - 90. The debt service requirements for 1971 on existing debt-are, how- ever, so high that in order for the Philippines to accommodate fhe required capital inflow of $503 million, the terms would have to be such that there is little or no addition to debt burden during FY 1972. This V61d imply grace periods of at least one year even on private debt and possibly a cap- italization of interest. In addition, it may be desirable to k&duce the burden by not building up international reserves during 1971. 16 terms of the legislation, more room for new debt service is available fi. FY 1973 and, therefore, financing the gap in 1972 and beyond should present 1es diffi- culty. The Mission's view is that while in the next one or tWo years, the debt limitation ciause in Republic Act 6142 may limit the ft-iility of Government policies in financing the gap, consistent with an adbquate develop- ment effort, for the longer run the overall debt ceiling provid8d in the law would prove to be fairly liberal and might help in preventing & tecutence of a debt crisis. F. Financing Capital Requitements 91. Ad discussed in the previous sectioh, the financhig bt the gap would, relatively speaking, present the most chalinge 1h 1971. This is not because of the size of the gap ($503 million) As such. in 10 I'Atbss avail- ment already ecdd $520 millii6h 6ven etluding debt bott?attd and paid within the yekr. Rather, the need for reducing debt of short d 'tiedlium- term matuity,geherally and the *Yifstence of the debt limitatir6h tbue spe- cifically, require that the terifi of assistafce be su-h that th- problem is just not carried fo?ward to the hext yeC 16r twon. 92. The donciusion wai teached earlier (Chaptet , Sett-b C) that if the Philippines is to make a majb dent in its -debt ptbbieh -hi the near future, it n&dA quick disbursing more liberal assistance, "s-tially -in the form of lbhg grace periods. Obviously, this type of assits,@he can come mainly ifrm official sources. The ReVisled drntfductfre ftgtam im- plies a drastic increase in absbrptioh of long-tetm 'iCternal tpltal 1? from $40 million in FY 1970 to $145 million in PY 974. U_'fbtuWAtely, the ambuht of c6mmitted but not yet disbursed, long-term pblic asfiatakee at $118 million at the end of 1970 was hot too large. Long-term lbts from bilateral tobifces for financing tomodity imports into Philippia rdtfting 1971 and 1972 would help greatly to Alleviate the balance of pVYMWntb ptessures. 93. In 19711, the Philippines is entitled to draw $35 milish out o'f the $45 millioh atcokded by MF under the new Standby Agreement-, Vhich was concluded in March 1971. After makihg repurchases of '$14 millibrr, net 1/ These figures include Japanese reparation of '$15 million -Ahtd$28 mil- lion respectively, which are excluded from gross capitAl iltew having been treated as part of transfet payments. - 37 - availability from IMF would be $21 million. A further allocation of $16.6 million of Special Drawing Rights has already been availed of. These trans- actions would also help to bridge the gap in foreign exchange requirements. 94. In the long run, however, a sharp increase in official assistance to the Philippines, hopefully on easier terms, must be pre-conditioned by increased absorptive capacity of the public sector and a sustained increase in availability of local currency funds for development. The success in improving project preparation and increasing government revenue would not only help raise the level of public investment but might also make a signif- icant contribution to resolving the balance of payments problem in the next few years. STATISTICAL APPENDIX Title Table No. Population and Employment Population Projections, 1965-1985 1.1 Labor Force, Employment, Underemployment and Unemploymen), May 1956-1969 1.2 Employment by Industry during 1967 and 1974 1.3 Sectoral Growth, Investment and Employment Targets 1.4 The Structure of Unemployment, May 1969 1.5 National Accounts National Income and GNP, CY1967-CY1971 (At current prices) 2.1 GNP by Expenditure Shares, C1967-CY1971 (At constant prices) 2.2 Total Investments FY 1960-FY 1970 2.3 Balance of Payments Balance of Payments of the Philippines, 1960-1970 3.1 Gold and Foreign Exchange Reserves and Foreign Exchange Liabilities of the Central Bank and Commercial Banks, 1960-1970 3.2 Value of Exports, 1960-1970 3.3 Export Projections, 1971-1974 3.4 Volume and Unit Values of Principal Exports, 1960-1970 3.5 Imports by Commodity Group, 1963-1970 3.6 Imports Classified by Use of Goods, 1960-1970 3.7 Origin and Distribution of Foreign Trade 3.8 Indices of Quantity, Prices, and Terms of Trade, 1960-1970 3.9 Average Level of Philippine Tariff, 1961-1970 3.10 External Debt External Public Debt 4.1 Service Payments on External Public Debt 4.2 Foreign Debts of the Philippines, Br Maturities, 1963-1970 4.3 Foreign Debts of the Philippines, 1963-1970 4.4 Amortization of Foreign Debts Oatatanding December 31, 1970 4.5 Changes in Central Bank Foreign Credit Liabilities during 1970 for Periods Indicated 4.6 Philippine External Debt - Maturity and Amortization As of December 31, 1970 4.7 Philippine External Debt - Repayments During 1970 4.8 STATISTICAL APPENDIX ,(Continued) Itle Table No. Public Pinance Conåolidated Fiscal Operations 5.1 National Government Revénue 5.2 |Nationa1 Government Expenditure 5.3 Annuait 'Expenditures on Infrastruoturve Jy ¥ap -Sectora Rpjed Infrastructurne JPrgram, FY 19,71-tpy A.95 .hysical Accomplishmente of Infraiortrpirse 9Engesients 5.6 Reenue and Expendiýtures of lpc ukth l,t&es 07y mqnckqg 54 Suitstanding Internal Public 0eb 5.8 iHolders of G.mrmenit Securitit 95.'9 |Sourities Issued by National äoyerimet and G;ernment Corporations f5Ao -Eolders of Different Types of Governm t ;gpoytritie 5,.1I one andcredit. 3actors MIßepting Koney Suppn -9i9@ %qpu._e of Savinga .and Time :D.peft, A9454192170 fNet Momestic Credits of the 'Comecja~, k 1965-1970 -6. Lans ,and Investments -ustkdfing of nancha Insati-tu,tions,,, k-967-197706 ,Composition -of :Credit Gatstannä 9 ihe ?Prtyate ecto, 1961-1970 A65 Loans and Inveatment- of the iGpyiqrgmen 42¥rzip. nuance System and Spcial Secpruly ý ptpIke, 99796 ýStructre of Interest Rates ,on gayviångs caxd fmp posits ,,f Banks and (Other ;Financi. gsilikQ , 9 0 . ,Actual Broductipn gor 1968, 1949 1a - #9j/»,, ~ I Pyacal . Ta-getp of the ,Agricultural P 7 419t49i ¿7l ,Aigrage :Growth -Rates of %M.ajqr i :oLgrij. IP duc0s 2 yLoans Grantegd and ·N-tstndimg 4o ,Agriculture y F9nanckg1 Institutions., 1965 -197 17?3 ia e rng and niiiming -Net _aVM:ue tAdded in SManufacturig bby T-pe ,pf i o c6 ,.962-1970 ;VaIu Added Jn _cning pand pPerce$gs gMpit4on, 1964-1970 A82 STATISTICAL APPENDIX (Continued) Title Table No. ManOfacturing and Mining (contd.) Mining Production, 1966-1970 8.3 Indices of the Physical Volume of Manufacturing Production, 1962-1970 8.4 Capacity Utilization in Selected Manufacturing Industries, 1966 to 1970 8.5 Indices of Employment in Manufacturing and Mining, 1962-1970 8.6 Actual and Projected Value Added in Manufacturing, 1968 and 1974 8.7 Estimated Import Dependency of Manufacturing Supplies, 1963-1968 8.8 Investment Requirements of Projects Approved by the Board of Investments from July 1, 1968 to December 31, 1969 8.9 Fourth Investment Priorities Plan of the Board of Investments - Investment Requirements, Value of Output, and Employment 8.10 Financing of Manufacturing Industry (Source of finance and working capital) 8.11 Paid-in Capital of Newly Registered Business Organizations Classified by Nationality and Kind of Business, 1966-1970 8.12 Comparison of Estimated Prices of Selected Industrial Products in the Philippines and the United States, 1970 8.13 Average Effective Rates of Protection by Sector and Manufacturing Branches, 1965 8.14 Average Effective Rates of Protection for Selected Projects Proposed by Board of Investments 8.15 Prices and Wages Price Indices, 1962-1970 9.1 Wholesale Price Indices, 1957-1970 9.2 Wage Indices, 1961-1970 9.3 Index of Average Monthly Earnings of Salaried Employees and Wage Earners in Selected Non-Agricultural Industries in the Philippines, by Industry Division, 1956-1970 9.4 Education Department of Education Expenditures 10.1 School Enrollment at All Levels of Education 10.2 Table 1.1 Population Projections - 1965-1985 (Figures in thousands. As of July 1=) 1965 1970 1975 1980 1985 All Ages 31,915 37,179 43,312 50,657 58,780 0 - 4 6.,071 6,996 8,426 9,888 11,605 5 - 9 4,740 5,734 6,7o0 7,915 9,294 10 - 14 4,O85 4,6o8 5,487 6,422 7,553 15 - 19 3,362 3,966 4,406 5,252 6,124 20 - 24 2,733 3,243 3,772 4,196 4,988 25 - 29 2,238 2,627 3,074 3,583 3,976 30 - 34 1,847 2,149 2,487 2,916 3,392 35 - 39 1,528 1,769 2,031 2,356 2,756 40 - k 1,291 1,458 1,665 1,917 2,218 45 - 49 1,097 1,221 1,361 1,559 1,792 50 - 5k 906 1,024 1,125 1,260 1,41 55 - 59 692 828 925 1,021 1,143 60 - 64 499 612 725 815 901 65 - 69 349 418 509 608 685 70 - + 477 526 615 749 912 %/ These projected totals were computed on a 3.1% rate of growth using the May 6, 1970 preliminary figure. Age distributions as projected by the "Component Method" using the 1960 Census figures were adjusted to arrive at the projected totals. Source: Bureau of the Census & Statistics Table 1.2 Labor Force Eloynt,. Underempalopnt and Unemploynt May 1956-1969 (In thousands Underemployed Unenployed Percent Percent Labor / of Lkor of Labor year Frce ployed Total Forc Total Force 1956 9,#497 8,.314 n.a.1 . ,182 12.5 1957 8,922 8,149 n.a. n. 773, 8.7 1958 9,659 8,782 709 7.3 878 9.1 1959 9,575 8,836 602 6,3 739 7.7 196Q - - - 1961 1,277 9,395 629 6. 883 8.6 1962 (Apr1) 10,692 9,680 658 6.2 1,012 9.5 1963 11,187 10,315 869 7.8 871 7.8 1944 11,296 10,572 6h7 5k7 724 6.4 1965 11,491 10,.543, 815 T4 947 8.2 1966 11,886, 11,032 673 5.7 8% 7.2 1967t 13.4274. 12,189 905 6.8 1,089ý 8.2 1968 13,534 12,481 1,087 81 >053, 7.8 1969 12,06 1,235 657 5.5 .812 6.7 Fully and partial,y, 2/ Wantng additional work and worked less thani 30, hours, per week. n,., a.: Not available. j;rce: BUreau. of Census and Statisties0. Table 1.3 fploant by Industry during 1967 ani 1974 Change over the 7 year Percent Planned rate for mid- period (including 4 years Increase ployment in October 1967 year 17 of the Development Plan) In Each In thousands 5 ototal Of total T I thousands Number Sector 1. Agriculture, forestzy, hunting, fishing, etc. 6,330 58.3 55.0 7,838 -3.3 +1,508 23.8 2. MiniLg and quarrying 45 0.4 0.5 72 +0.1 + 27 60.0 3. Construction 276 2.5 3.0 428 +0.5 + 152 55.1 4. Manuf acl z 1,223 11.3 12.5 1,781 +1.2 + 558 45.6 5. Bectricity, gas, water and samLtazy services 3D 0.3 0.5 71 +0.2 + 41 136.7 6. Comerce 1,078 9.9 10.4 1,482 +0.5 + 40G 37.5 7. Transport, storage and conmicatiom 375 3.4 3.8 542 +0.4 + 167 44.5 6. Government, comunity, business and recreational services 769 7.1 7.5 1,069 +0.4 + 300 39.0 9. Damestic and personal services and industry not rqported 741 6.8 6.8 969 - + 228 30.8 T 0 TAL 10,867 100.0 100.0 14,250 381 SOURCE: Four-Year Development Plan, 1970-74, Table VI-1-2. ТаЬ�в �c�i .3ëcioral Г�wirth . Iпvёstmënt ai��� -"'1�°"„nt.�" . `" ёta 9ma�ita iт► Ifi111on рввов at 3 7 pa�icёs яnкiиаl -Яв'rëënt Pгivatё Ptiiilic Iпс�ёавё.�iп IiдiёвfiiьёдiL Iii6ёataaпt .3ëctor"а1__Рётоепtаяеs_.cf, .(�ox�,�h �N. 1v �� .Атрия`t �ёгсёцt A�ouл�t�rcёat То'ta1 .Iaёëstmёnt .Лiëiг.2nv�вtлвat Aiev 1а �� i.t �]: �i-e'ctFi'гв S:5 �u1t 22;961 -�.00:0 11;1�6l� 100:0 27;4Э5 100:0 100:0 Agr�cй�tiiтzë б: 25 3.2 2; 096 9.-1 - - 2; 09fi 7:6 42:6 �натл��t� � б:г5 ь: э ) ) ) ) 17.5 a;�.t�) з5.з) - _ ) в;�i�i) 29:ь �n�вg ie:5 8:5 ) ) ) ) о.8 ott�� i�i�:ts Аа����вв nra: п:а. i2;7бi �55:b - - 12;fFд1 lуб:5) ) 39.1 ) Pi�116 Сbаыtiцс= � �о�а 3J го.; 8:i - = 4;4ь1i �Ёо:о 4,46i, 15.э � _. _ _ ,� _, . �_ . .. 1/ Iпcladiгg iгаtёг "rёsoй�'с�.s дёда].opmQnt; tгat5"врап�tа't3:on� р`aяei�q 'të3ëoo�dë$iiяns"; восi;,а1 1л€гastitiëfйгё а'п"д pгёlit�лaiy enginв ёг`1ig : 2/ 61�. Eonstгoation: SOURЁEi Faпii�=�ëa`r Dёvë'lортвпt Р1ап; 1970=74: T~ 1.5 The ~tu^ ar Un~lEmnt. Nay 1969 (in thommds) Tat al 6-7% 812 Ihwal U~ 5-7% 9.2% 2 %ENIG 3.5% 140.1% 8.6% 20b 2-0 igf D91 Old Yolmg 01d 1b69 åd Young åd läulng -7-.,7% 14.7% 1.5% 7.0% 6.8% 14,3% 4,8% 1993%, :123 156 1h9 82 9 B99 4.9% 7.3% 1.3% 3.0% 3 t 33W 3.5% 5.4% 47 6 85 8 17 F8 60 26 61 18 24 -.98 89 28 1ý k9 53M m -4 uff V77 Total y~ .. ~ rienced loyed - 324 Motest Young - 10-211 vears Old - all 0t6r8 Source: Ta~tions of the May 1969.9 BCS Labor Force Survey* Table 2.1 National Income and Gross National Product, CI 1967 to CY 1971 (At current prices) Value in MLllion Pesos Percent Distribution 1967 1968 1969 1970 1971 1967 1968 1969. 1970 1971 Expenditure on Gross National Product 26024 28837 31737 37549 41981 100.0 100.0 100.0 100.0 100.0 Personal Consmption Expenditures 20318 22019 24202 29207 31303 78.1 76.4 76.2 77.8 74.6 General Government Consumption Rkpenctures 2378 2690 3075 3333 4005 9.1 9.3 9.7 8.9 9.5 Gross Domestic Capital Formation 5975 6306 6307 8174 8954 23.0 21.9 19.9 21.8 21.3 Erports of Goods and Services a003 4484 4372 7259 8221 18.1 15.5 13.8 19.3 19.6 Less: Imparts of Goods and Services 5273 5656 5608 8092 9074 (20.3) (19.6) (17.7) (21.6) (21.6) Expenditures on Gross Domestic Product 28101 29843 323B 39881 43409 108.0 lo3.5 101.9 106.2 103.4 Net factor income from abroad (298) (384) (304) (457) (175) (1.2) (1.3) (0.9) (1.2) (1.1) Statistical discrepanmy (1770) (622) (307) (1875) (953) (6.8) (2.2) (1.0) (5.0) (2.3) Per Capita GNP (in pesos) 788 838 894 1025 1113 Annual Chhnge in GNP (percent) 9.3 10.8 10.0 18.3 11.8 Net Domestic Product at Factor Cost 22006 24433 26714 31219 34606 100.0 100.0 100.0 100.0 100.0 Agriculture, fishery and forestry 7447 8654 9730 11002 12512 33.8 35.4 36.4 35.2 36.2 IfinIg and quarr7ing 346 419 533 900 1146 1.6 1.7 2.0 2.9 3.3 knaufacturing 3832 4251 4648 5001 5408 17.4 17.4 17.4 16.0 15.6 Construction 832 811 755 901 982 3.8 3.3 2.8 2.9 2.8 Transportatlon, storage ani communication 925 995 1071 1265 1371 4,2 4.1 4.0 4.1 4.o cammerce 3281 3467 3615 4560 4940 14.9 14.2 13.6 14.6 14.3 Services 5343 5836 6362 7590 8249 24.3 23.9 23.8 24.3 23.8 Per Capita NDP (in pesos) 667 710 752 853 918 Annual Change in NDP (percent) 11.6 11.0 9.3 16.8 10.8 Net National Product or National Incom 21708 24049 26410 30762 34133 98.6 98.4 98.9 98.5 98.6 Indirect Taxes net of subsidies 2016 2148 2332 3017 3322 MDTE: This series revises previous estimates. 1. Figures for 1967-69 are based on The Statistical Reporter, April-June 1970. 2. Figures for 1970 are based on the advance estimates of 16 December 1970. 3. Figures far 1971 are projections. OSCAS /1C. 03/02/71 Table 2.2 Gross National Product by &xpenditure Sharest CY 1967 to CY 1971 (At constant 1967 prices) Value in Million Pesos Percent Distribution 1967 1968 1969 1970 1971 1967 1( 1969 1970 19 Expenditure on Gross NationalProduct 26024 27635 29359 30657 32541 100.0 100.0 100.0 100.0 100.0 Personal Consumption Expenditures 20318 21851 23630 25122 26092 78.1 79.1 80.5 81.9 80.2 General Government Consumption Expenditares 2378 2664 3002 2876 3126 9.1 9.6 10.2 9.4 9.6 r-ross Domestic Capital Formation 5975 6171 6040 5856 6177 23.0 22.3 20.6 19.1 19.0 &xports of Goods and Services 4703 3989 4052 5300 5661 18.1 14.4 13.8 17.3 17.4 Less: Imports of Goods and Services 5273 5620 5461 6356 6967 (20.3) (20.3) (18.6) (gQA7! (21.4) Expenditures on Gross Domestic Prodwct 28101 29055 31263 32798 34089 108.0 105.1 106.5 107.0 104.7 Net Factor income from abroad (298) (38L) (296) (359) (364) (1.2) (1.4) (1.0) (1.2) (1.1) Statistical discrepancy (1779) (1039) (1608) (1782) (U184) (6.8) (3.7) (5.5) (5.8) (3.6) Per Capita GNP (in pesos) 788 803 827 838 863. Annual Change in GNP (percent) 9.3 6.2 6.2 4.4 6.1 Net Domestic Product at Factor Cost 22006 23292 24508 25606 26971 100.0 100.0 100.0 100.0 100.0 Agriculture, fishery and forestry 7447 8019 8563 8901 9453 33.8 34.4 34.9 34.8 35.1 Mining and quarrying 346 498 478 579 696 1.6 1.8 1.9 2.3 2.6 Manfacturi rg 3832 4039 4186 4271 4485 17.4 17.3 17.1 16.7 16.6 Construction 832 792 725 735 772 3.8 3.4 3.0 2.9 2.9 Transportation, starage and communication 925 967 1007 1065 1108 4.2 4.2 4.1 4.1 4.1 Commerce 3281 3410 3544 3674 3810 14.9 14.6 16.5, 14.3 14.1 Services 5343 5657 6005 6381 6647 24.3 24.3 24.5 24.9 24.6 Net National Prod rt t National Incoe 21708 22911 24212 25247 26607 98.6 98.4 98.8 98.6 98.7 Indirect taxes net of subsidies 2016 214D 2290 2318 2418 Capital consumption allowance 2300 2584 2857 3092 3516 Per Capita NDP (in pesos) 667 677 690 700 715 Annual Change in NDP (percent) 11.6 5.8 5.2 4.5 5.3 NOTE: This series revises previous estimates. 1.. Figures for 1967-69 are based on The Statistical Reporter, April-June 1970. 2., Figures for 1970 are based on the advance estimates of 16 December 1970. 3. Figures for 1971 are projections. Sourc OSCAS, NEC. Table 2.3 Total Investments, F1196:11970 (In million Pesos, at current pices) 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 Total Investments 1,754 2,214 2,885 3,424 4,o96 4,542 4,845 5,503 6,141 6,307 7,241 Public Investments 161/ 250 178 255 192 207 182 420 581 596 552 Economic Services Agriculture and Natural Resources 49 21 13 37 15 13 29 25 36 57 Transport & Communication 90 112 86 147 119 159 86 234 324 307 Commerce and Industry 1 3 5 2 3 2 2 60 60 37 Other economic development 24 23 3 6 5 8 9 5 7 6 Others - 9k 71 63 50 25 56 96 154 189 Private Investments 1 5 3,169 3,904 4,335 4,663 &,8 5,560 5,711 1/ Ercludes items included under other services (General Administration, Social Services) but includes capital transfers and direct lending. Public investments exclude local government investment. Note: FY60-66 data exclude foreign-financed capital expenditures. Source: Presidential Economic Staff. Table 3.1 Balance of Payments of the Philippines 1960-1970 (US S millions) Goods, Services and Transfer 2/ tas 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 Receipts 1- Merchandise Erp., 560 500 556 727 742 768 828 821 855 1,03 2 Non-Monetary Gold 1h 15 15 13 15 15 16 17 IV 20. 21 3 Freight & Insurance 4 7 9 12 12 1 16 17 17 18 18 5 Travel & Otber Transportation 3 4 4 11 17 28 70 95 56 5b 101 6 Investment'Income 6 8 9 9 12 19 18 15 15 7 11 7 Government n.A.e. 1/ 22 32 32 35 43 68 81 106 126 89 67 8 Other Services 34 68 93 86 101 179 158 151 76 80 44 9 Private Transfers 81 77 83 70 97 77 70 124 93 108 94 (US Veterans kid Pen.) (ma) (na) (rn) (na) (na) (na) (bs) (87) (59) (62) (63) 10 Reparations 39 10 8 9 11 22 33 60 27 35 15 10 Other Government Transfers 21 10 6 5 6 5 12 13 17 15 13 Total 3 - 10 205 196 246 237 299 412 458 581 6363 Total 1 - 10784 711 815 977 L!Z56 119 132 i2q9 8 1J Disbursements 1 Merchandise Ian. 604 611 587 618 750 808 853 1,062 1,150 1,131 1,090 3 Freight & Inurance 56 51 56 53 69 66 71 95 104 96 90 4,5 Travel & Other Transportation T4 26 47 35 33 59 57 66 69 82 4 6,1 Direct Investment Incom 73 36 16 17 13 17 26 55 79 7 42 6,2 Other 8 2 10 9 25 33 29 36 33 38 95 7 Government n.i.e. 7 5 7 7 12 8 7 13 16 15 16 8 Other Services 26 10 57 50 34 63 79 106 100 103 91 9,10 Transfer Payments 1 1 5 6 5 5 19 11 3 3 2 Total 3 -10 _8_ i&M M2§ JA . in1 z 288 M12 404 1& 332 Total 1 -10 2. _ 21r, LU- I_Zz ~1 11 1.444 ia_ws1.7 Net 1 - -6 -66 +30 182 85 137 161 -25 -2-1 -234 -48 Capital account, not U Direct Investment 29 -56 -3 -4 -4 -10 -1' -9 -3 +8 -23 12 Other Private Long-Term Capi- $u5 66 3 -26 +38 -11 +3 +12 +105 +82 +h2 tal 13 Private Shart-Term Capital -1 -33 -27 +29 -109 -118 -17 +12 +176 +58 -10 1k,15 Government -7 -21 *21 5 -2 44" -23 -4i +3 +12 -3 Total 11 - 15, net 67 -+k7- -2 -26 +31D + +145 Total 1- 15, not - 186 8 7 9 - +9 Net brrors and Omissions -35 -30 +19 -159 -51 -75 -56 -21 -08 -62 16 - 19 Monetary Movements -28 141 -43 -27 43 28 -53 75 49 136 -38 (rinus - Incrose of reserve) 1/ Including pArt of US militav ex'anditure in tie Philipin.e- 2/ Preliminary Source: IMF Balance of Payments Yearbook. Table 3.2 Gold' and Foreign Exchange Rtaerves and 7oreign Ekchange Liabilities of the Central Bank and Conmercial Banks, 1960-70 (In Million U.S. Dollars) Gross Reserves Foreign Exchange Inter- Liablities national et End of Period Cent Comm=1. Total Central O . Rarvea/ Reserves 1960' 120.0 76.0 196.0 5.0 4.0 192.0 187.0 1961 54.0 63`0 117.0 61.0 4.0 113.0 52.0 1962' 75.0 76.0 151.0 43.0 11.0 140.0 97.0 1963 109.0 88.0 197.0 10.7 50.0 147.0 136.3 196w, 123.3 7L.3- 197.6 29.4 159.1 36.5 9.1 1965 1 193.0 91.7 284.7, 110.7' 18&.6 96.1 -1J.6 1966 193.6 120.7 314.3 128.1' 135.5 178.8 50.7 1967 179.8 146.1. 325.9 234.6 104.4. 222.5 -13.1 1-968 161.4 152;2 313.6 120.1 118.5 195.1 75.0 1969 jaArXY 144.1 139.2 283.3 125.6 101.2 182.1' 56.5 Febrp y 147.3 145.3 292.6 135.1 106.9 165.6 50.5 March 174.9 144.9 319.8 172.6 101,.6 218.2 45.6 April 153.4 142.2 295.6 166.8 95.9 199.7 32.9 May: 132.2 129.8 262.0 164.2 86.9 175.P 10.9 June 138.0 144.2 282.2 173.8 105.1 176.3 2.5 July 134.1 144.9 279.0 172.8 122;3 156.7 -16.1 August 126.5 135.5 262.0 182.8 116.8 145.2 -37-6 September 129.2 131.9 261.1 190.8 1n5.6 145.6- -45.2 October 130.0 143.7 27347 195'.2 125.9 147.8 -47.4 November 125.3: 143.9' 269.2 205.3' 139.0 130.3 -75.0 December 120.6 135-5 256.1 196.4 130.2 125.9- -70.5 19.70 January 125.2 131.9 257fr.1 189.0 119.2 137.9 -51.1 February 158.8 129.3 288.1 246.3 111.9 176.2 -70.1V Maroh 192.0 125.8 317.8 261.9 120.8 197.0 -64.9, April 195.7 117.2 312,.9 281.2 119.4 1935 -8T.7 May 202.6 139.5 342.1 279.7 104.0 238.1 -41.6 June 196.5 118.8' 315.3 275.-9 104.7 210.6. -65.4 July 197.6- 120.3 31-7..9 271.7 116.1! 201.9 -69;9 August- 207.9 121.8- 329..T 26,3.6 17-.3s 212.4 -51.2 september 199.3 129.4 328..7 253.5 123.0 205.6 -47.9 October, 204.8' 128.9 333.7 256.7 117.3 216.2 -40.5 November 213.1- 137.2 350.3' 253,6 118.6 231'.6 -22.1 December 251.0 12-7.8 378.8 258.3 142.1 236.6 -21.7 1 Inoludes, IM gold tranche position and excludes foreign balances- of the Money Order Fund and the- Fiscal Agency Fund. 2/ Consista- of short-term loans -from U. S. commercial banks, Exim Bank and the Federal Rbserve-Bank-of New York. 3- f defined by the Philippite authorities, i.e., grose reserves ol the Central Bank plus-net reserves of commeroial-banke. / Revi'sed. as of November 22, 1966 to- include deferred pa'yments liabilities previously unreported by commercial bahks,. These revisions supersede those previously made nn end' of 1964.datae S' EkcLuse- oil loan of. $40 million of MArch 1970; includes ohanges in Central Bank's long-term liabilities,. for stand-by,puros.. 6" Cbmput-edas'defined- in the 1-970 IM' atand--byragreement. S6urce: Central Bank of the Philippihes. Table 3.3 Vau fExports, 90-7 (F.O.Sn MIIIIo-n of..$ Couppdty im Il_ 1& 2å1 im2 112 jäk Itz im imM. Coco procta1 168 216 Copra , m m ¥W- 9 m 9k » Cocont oil 16 16 31 47 60 68 75 59 77 51 101 Dessicated coco~t 19 14 15 18 20 20 18 17 25 16 20 Copra meal or a~ 5 4 9 1l u 12 17 u 1l 9 17 sugar18 S~ 14 22 160 1Ul 141 in~ 3251 J15818 Kolasseg .5 4 5 8 12 10 6 7 7 7 8 Others 5 5 5 5 u 5 3 2 -- 2 - Abaca an manufacture + 12 16-e Abaca rpe 1 3 3 3 6 3 2 3 2 2 2 2 Forest prodwta 10 128 2b9 262 211 Logs 14 t _ L0ber 7 7 5 7 8 8 7 6 9 11 13 Plyrood 6 8 21 16 23 18 18 18 21 19 20 Others 4 5 5 10 12 114 18 18 24 14 14 Minral producta 60 I 66 61 107 d 114 160 2 Copper concentrates n 27 gi r 9 a 4 90 Iron ore 9 8 9 n 11 7 6 4 2 2 3 Ctr~ite ore 17 17 9 9 10 11 8 4 3 5 9 Izon conoenrate n.a. n.a. 1 1 2 2 5 7 10 9 10 Otbers 5 4 4 4 4 10 13 14 10 fl 12 Fråts and tab + 1/ 10 k 11 20 Pi p e aned) -y 7 9 9 10 -9 Pi ~ e Ca(jioe) i 2 2 3 3 3 1 1 1 1 1 hr 2 2 1 1 2 3 2 3 2 2 12 Tobacco r 9 la 163 1?- 16 12 1 16 17. Is Rot 7 8 fl 12 16 15 n 11 15 16 14 Cigare and athers - 1 1 i 1 1 1 - 1 1 1 Alother ~orte 22 16 22 6i 82 Total F8por221 - - Peroentage change over pr~-ios year -10.7 11.2 30.8 2.1 3.5 7.8 -0.9 3.2 -0.2 22 l/ Exports of cocont prodicts are known to be untretated in the period prior to 1963 and arter 1966. 2/ Includes mata and other minor abaca prodacte. 3/ Excluding coconut prodacta. Differ from exports in the balance of paymnts principally by the amount of non-moetary gold exported. af Preliminary. Source: IBRD Mission Estimate, February, 1971. Table 3.4 Export Projections, 1271-7 (In million U. S. dollars) Actual Projected** (Calendar Year) 1 1972 1973 974 Coconut Products 22 201 217 229 241 Coconut Oil 101 101 106 '113 119 Volume (1000 tons) 353 352 375 401 425 Price (US $/ton) 286 287 283 282 280 Copra 92 72 i5 78 82 Volume (1000 tons) 500 394 412 '433 458 Price (US $/ton) 185 184 182 180 179 Dessicated coconut 20 20 21 22 23 Copra meal and cake 17 14 15 16 17 Sa 186 211 221 232 23? Centrifugal sugar 178 199 209 220 220 Volume (1000.tons) 1,165' 1,294 1,359 1,427 1,427 Price (US $/ton) 153 154 15- 154 154 Molasses and others 8 12 12 12 12 Forest Products 25 28, U1 334 Log 208 228 252 264 276 Volume (million,,board feet,) 3,381 3,707 4.,200 2,k00 ,600 Price (US $/1000. bf) 62 62, 60 60 60 Luniber 13) 11 11 11 11 Plywood 20. 27 30 35 40 Others 14, 18 21. 24 27 Lnerals 224 212 2?3 227 278 Copper (metal equivalent) 190 178 186 188 187 Volume (thousand metric tons) 179 229 245 2750 Price (US. $/ton) 1,060 780 760 760 748 Nickel (metal equivalent) - - -10 50 Volume (thousand metric tons) - - - 7 27 Price (US.$/ton) - - 2,860 2,860 Others 34 34 37 349 1 All other products 17 3 2718 300 TLIAL EXPORT 1,043 19,105 1,212 1,300 1,4o5 Preliminary.Estimate, IBRDMission February,;, 1971. IBRD Mission, 197f1. Table 3.5 Volume and Unit Values of Principal Exportst 1960-1970a Average 1955-57 120 1961 1962 196L 1965 1966 1967 1968 1969 1970 / Volume (thousand metric tons) Copra 1/ 905 804 627 778 1,033 -910 883 940 775 640 509 500 Coconut Oil 94 60 74 148 195 229 236 314 230 256 202 353 Dessicated Coconut 51 59 59 63 70 69 68 67 61 62 54 67 Copra meal or cake. 98 81 89 1164 168 193 182 239 185 189 177 231 Sugar, centrifugal 843 1,090 1,071 961 1,027 1,094 1,017 980 974 964 980 1,165 Abaca, unmanufactured 117 101 8k 92 113 104 89 79 67 57 62 55 Logs 2/ 758 1,455 1,543 1,760 2,309 2,319 2,963 3,624 3,503 3,517 3,586 3,381 Lumbxe7 2/ 60 60 80 54 62 50 53. 48 62 78 93 Copper concentrates 78 223 209 207 327 277 279 329 368 412 470 632 Iron ore 1,351 1,008 960 1,009 1,333 1,345 838 674 438 234 199 363 Chromite ore 705 746 613 364 480 558 592 558 228 174 279 w42 Pineapple, canned 26 45 .43 40 32 34 144 4 57 55 109 100 Pineapple, juice 3/ 31 12 24 22 28 28 17 14 15 10 12 14 Tobacco, raw 10 8 18 23 24 23 18 23 20 43 22 39 Value (US$ per metric ton) Copra 142 173 141 145 163 172 192 167 167 192 172 185 Coconut oil 221 267 216 214 239 261 289 239 252 302 250 286 Dessicated coconut 269 322 246 240 262 281 302 269 280 397 298 284 Copra meal or cake 49 62 48 63 70 57 65 71 59 59 51 61 Sugar, centrifugal 115 122 126 127 142 135 130 135 145 119 152 153 Abaca, unmanfaated 291 416 345 267 280 291 271 241 218 197 232 273 Logs / 50 58 55 61 70 58 52 55 59 59 60 62 Lumber 117 117 87 116 123 133 143 142 133 139 141 140 Copper concentrates 154 133 129 140 125 123 168 228 203 216 283 293 Iron ore 8 9 9 9 8 8 8 9 8 8 9 8 Chromite ore 19 23 28 20 19 19 19 14 19 19 18 20 Pineapple, canned 146 156 233 288 219 225 197 200 179 170 156 210 Pineapple, juice J/ 99 110 83 97 100 100 160 71 100 100 99 71 Tobacco, raw 47 500 444 493 500 428 482 479 455 355 40o 359 1/ Excludes substantial amounts of unrecorded exports prior to 1962. 4/ Per thousand board feet. 2 In million board feet. / Per thousand liters. / In rilion liters. aj Preliminary Source: Statistical Bulletin, Central Bank of the Philippines. Table 3.6 Imports by Commodity Group, 1963-T0 (Value in million US$ Gommodity 1963 1964 1965 1966 1967 1968 1969 1970 Consumer Goods 132.7 159.2 192.6 160.7 204.5 185.2 .172.2 143.6 Live animals chiefly for food 0.2 0.4 0.7 0.1 0.1 0.1 - - Meat and meat preparations 4.0 6.0 5.5 8.6 5.7 9.6 8.9 5.1 Dairy products, eggs and honey 18.7 23.9 26.0 28.6 29.4 34.9 37.4 32.14 Fish and fish preparations 12.2 12.7 13.9 15.7 19.5 22.7 18.3 16.6 Cereals and cereal preparations 58.9 66.4 94.8 52.8 84.7 40.7 38.1 32.5 Fruits and Vegetables 5.5 6.7 7.6 9.9 9.2 10.9 7.6 414 Sugar and sugar preparations 0.3 0.3 0.3 9.2 0.2 0.2 0.1 0,3 Coffee, Tea, Cocoa, Spices & Manufactures Thereof 2.3 3.4 3.6 3.3 4.0 4.5 3.3 2.5 Feeding stuffs for animals 2.3 2.6 2.6 3.1 5.2 7.2 7.2 8.1 Miscellaneous food preparations 0.2 0.2 0.3 0.5 2.0 1.9 3.4 1.8 Beverages 0.8 0.9 1.4 1.1 1.5 1.6 1. 0.8 Tobacco 1.3 0.7 1.0 2.8 4.5 7.1 9.8 7.8 Prefabricated bldg., sanitary plumbing, heating and lighting fixtures and fittings 2.1 2.0 1. 1.5 2.3 2.1 1.7 1.4 Furniture and fixtures 0.2 0.3 0.1 0.2 0.3 1.1 0.3 0.3 Travel goods, Handbags, similar articles - - - - - - - - Clothing 2.1 3.9 2.6 2.5 1.0 0.9 0.3 0.2 Footwear 0.1 0.1 0.1 0.1 - - 0.1 - Prof. Scientific and controlling instruments 6.0 7.4 7.7 7.6 9.4 11.9 12.0 13.2 Misc. Manufactured articles 8.3 9.9 8.7 10.9 13.2 15.7 16.1 12.0 Returned goods and sp. transactions 7.2 11.4 14.3 11.2 12.3 12.1 5.9 4.5 Capital Goods 209.0 274.3 275.8 297.4 406.8 443.8 444.4 401.0 Machinery and parts, other than electric 113.6 140.0 141.3 151.3 229.0 238.5 258.5 235.2 Electric mach. apparatus and appliances 28.7 42.2 47.5 36.0 47.1 60.6 60.2 59.2 Transport equipment 66.7 92.0 86.9 109.9 130.3 143.9 124.9 106.1 Live animals, not for food 0.2 0.1 0.1 0.2 0.4 0.8 0.8 0.5 Intermediates 276.1 346.8 339.9 394.8 450.5 520.7 5114.7 545.6 Hides, skins and fur skins, undressed 0.1 0.5 0.4 0.6 0.7 0.7 0.6 0.6 Oil seeds, oil nuts and oil kernels 0.4 0.6 0.9 0.6 0.2 1.8 - - Crude rubber incl. synthetic and reclaimed 5.1 6.3 4.6 5.7 4.5 4.0 3.7 347 Wood, Lumber and Cork 0.4 0.7 0.7 0.6 0.5 0.4 0.2 0.2 Pulp and waste paper 3.8 3.0 2.0 3.1 14.14 4.6 4. 7.5 Textile fibers, not mftd. into thread or yarn 25.6 23.2 21.7 34.9 29.1 49.5 41.8 10.2 Crude fertilizer, minerals except coal and precious stones 2.0 2.8 3.6 3.2 4.6 5.3 5.1 5.5 Metallic ferrous ores and metal scrap 0.1 0.2 0.5 0.4 0.1 0.3 1.7 0.1 Animal and vegetable crude materials, inedible 0.6 4.0 0.9 1.6 1.1 1.1 1.3 1.9 Mineral fuels, lubricants & related materials 61.8 77.0 76.6 84.1 93.7 105.8 106.7 118.9 Chemical elements and compounds 15.1 19.3 20.1 22.3 26.2 33.9 34.5 36.7 Mineral tar and crude chemicals from coal, petroleum and natural gas 0.2 0.2 0.2 0.1 0.2 0.1 0.1 0.1 Dyeing, tanning and' coloring materials 6.0 6.3 6.6 8.1 7.6 8.5 7.1 8.8 Medicinal and pharmaceutical products 8.0 7.9 6.6 7.6 12.2 15.1 15.5 16.5 Essential oils, perfume materials, toilet, polishing and cleaning preparations 2.7 2.8 3.4 4.3 3.7 4.6 6.0 4.9 Fertilizers, manufactured 4.0 11.6 11.9 4.9 10.5 8.6 8.7 9.0 Explosives and misc. chemical products 18.9 22.2 24.4 30.7 36.1 38.4 41.7 49.8 Animal and vegetable oils (not essential) 3.5 4.8 4.1 4.1 1.2 4.6 5.1 5.5 Leather manufactures nec. and dressed furs 0.5 0.7 0.7 0.5 0.5 0.5 0.1 0.3 Rubber manufactures 3.5 4.8 5.5 6.4 6.8 7.1 6.6 5.4 Wood and cork manufactures 0.3 0.5 0.5 0.5 0.6 0. 0.5 0 Paper and paper board manufactures 16.0 23.2 21.9 24.4 27.0 27.3 28.7 29.3 Textile yarns, fabrics and made-up articles 20.8 19.0 16.8 30.6 31.8 13.6 33.6 23.9 Non-.metallic mineral manufactures 7.5 11.0 9.4 10.9 12.4 11.9 10.6 10.1 Gold, silver, platinum gems and jewelry - - - - - 0.1 - - Base metals 53.4 74.2 78.0 84.0 105.9 109.7 116.3 1144.4 Manufactures of metals 15.8 20.0 17.9 20.3 25.9 32.5 33.8 21.8 Note: There is a certain extent of overlapping of the three categories of comodities (consumer, capital goods and intermediates). Because of lack of time, no attempt was made to segregate each commodity group (e.g., dairy products, transport equipment, etc.) into the three categories. Source: Foreign Sector, Department of Economic Research, Central Bank of the Philippines. Tab 3.7 Imarte Classified by Use of Gwods 1961k29 kF.0.B. in Aillon US dollars) Camodity 1960. _ 16 12 199 Y70 Prodacer Goods Maehiney, eqzint 152 12 94 101 133 151 160 216 234 243 2(1 Unprocesed rav =teriala 60 73 101 105 120 110 130 139 163 156 159 Semi-rocessed raw mterials 252 287 265 289 367 353 399 502 574 574 595 Splieg 56 43 44 29 40 44 56 51 51 49 58 TOTAL 520 515 504 524 660 658 745 908 1,022 1,022 1,016 Conser Gooda Derables 5 5 5 5 9 8 15 13 12 10 6 Nan-durables 79 91 78 89 111 142 93 141 116 99 68 TOTLL 84 86 83 94 120 150 108 154 128 109 74 GRAND TOTAL 604 621 587 618 780 808 853 1,062 1,150 1,131 1,090 Source: Statisftical Bullatin, Central Bank of the Philippineg. Table 3.8 Origin and Distribution of Foreign Trade Valu in Millions of U.S. Dollars P e r c e n t a g e s United United w Total staten ja Bur Otkr Total staten S Emrp Other Exporte 1955-1957 (average) 428 236 73 80 39 100 56 17 18 9 1960 560 284 132 100 h4 1o0 51 23 18 8 1961 500 269 125 12 34 100 54 25 i 7 1962 556 281 137 90 48 100 51 25 16 8 1963 727 331 198 152 46 100 46 27 21 6 1964 742 354 188 145 55 100 48 25 20 7 1965 168 349 218 146 55 100 45 28 19 8 1966 828 346 264 147 89 100 42 32 18 8 1967 821 353 279 97 92 100 43 34 12 n 1968 858 391 284 87 96 100 46 33 10 n1 1969 855 360 329 68 97 100 42 39 8 n 1 85m 370 335 56 93 100 43 39 7 n 1955-1957 (average) 556 331 56 65 104 100 60 10 n 19 1960 6a4 255 159 75 115 100 42 26 13 19 1961 621 289 108 92 122 100 47 18 15 20 1962 587 253 106 103 125 100 43 18 18 21 1963 618 254 105 103 156 100 41 17 17 25 1964 780 312 159 124 185 100 40 20 16 24 1965 808 274 195 12 215 100 34 24 15 27 1966 853 285 244 135 189 100 33 29 16 22 1967 1,062 363 307 160 232 100 31 29 15 22 1968 1,150 372 327 200 251 100 32 28 17 23 1969 1,131 320 337 219 255 100 28 30 19 23 197å. 918 269- 323 150' 176 -100 29 35 ~16 2Ö Sources Statistical Bulietin, Central Bank of the Philippines af January-October. Table 3.9 Indices of Qwntity. Prices and Terms of Trades 1960-70 (1955 100) Terms Index Price Index of period zre S 1960 965123.2- LU*5 114.1 102.3 1961 99.0 119.2 113.2 105.0 92.6 1962 93.7 130.6 115.4 106.2 92.0 1963 92.1 162.3 123.0 111.8 91.0 1964 113.9 166.3 124.1 110.9 89A6 1965 117.1 170.7 126.2 112.8 89.4 1966 124.6 187.7 128.2 11M.1 89.0 1967 19.5 174.6 129.3 115.9 89.6 1968 162.0 177.2 130.4 121.7 93.3 1969 155.0 171.4 133.6 123.8 92.5 1970W 131.8 187.0 163.2 133.9 82.5 Source: Gentral Bank of the Philippines. a/ Jamary-September. Table 3.10 Avea--Level of Phillipne Tariff, 1961-1970 Average letoentage Rate of Duty-1 Non-8. -'T'otal Year 1556 - 60 .3 16.5 8.0 1961 7i6 10.0 89 1962 6.0 13.0 8.8 1963 1.0 109 10.9 1964 9,9 9.8 gå8 1965 10.8 7.9 869 1966 10.7 11,8 1L4 1967 10,8 12.0 11.6 1968 1.9 11,5 12-3 1969 14.8 10.7 11.9 1970 10.5 104 10.3 1 Ratio of dutiée <611eoted to a.i.f. valie 6f i-fta (Iniporta exlditue's repaiatid" for Jafat)'e a/ January to Oot6ber. Si4toa: bentral Bank of the Philipiñes. Table 4.1 External Public Debt Outstanding as of December 31, 19701 Debt Repayable in Foreign Currency (In thousands of U.S. dollars) Debt Outstanding December 31, 1970 Disbursed Including only undisbursed TOTAL EXTERNAL PUBLIC DEBT 2/ 6,21,506 754,589 Privately held debt S13,479 320,906 Publicly issued bonds 10,813 10,813 Suppliers 52,274 52,917 Australia 869 869 Belgium 833 833 Canada 2,498 2,498 France 1,362 1,362 Germany (Fed. Rep. of) 676 676 Japan 16,722 16,865 United States 29,315 29,815 Financial institutions 250,392 257,176 Germany (Fed. Rep. of) 5,481 6,421 Italy 1,600 1,600 Netherlands 2,919 8,107 Sweden 546 546 Switzerland 9,283 9,283 United Kingdom 13,000 13,000 United States 3/ 217,563 218,219 Loans from international organizations 122,859 197,921 ADB 2,500 4,992 IBRD 120,359 192,929 Loans from governments 185,168 235,761 Canada 7,135 7,135 Germany (Fed. Rep. of) 10,929 10,929 Japan 1 16,765 28,008 United States 150,338 189,690 1/ Debt with an original or extended maturity of over one year. 2/ Does not include private debts guaranteed by the Development Bank of the Philippines and the Philippine National Bank amounting to approximately $600 million. 3/ An amount of $200.66 million represents reorganized debt of previously short-term maturity. Source: External Debt Section, IBRD. March 22, 1971 ТвЫв 4.2 Eetlmeted Fиtигв 8esvlce Раутеп[в оп ЕаСегпвl РиЫ1с DвЬ[ , Outetaadlnя, Iпсlидlая UпдlвЪигаед ав of Decamber 31, 1970 Dвbt IiepeqaЫe 1п Forelgп Сиггепсу (In thoueande of U.9. dollare) Deb[ Oйtet (Beg1n of Perlod) ' Including Рвутеа[е dŭтing Регlод Уевг (1пдlвЬитвдд , Amortlтatlon . intвraat Tote1 ТоС81 Еаtвгвдl РиЫ 1с DebC 1971 754,589 83,'442 Э9,984 123,427 1972 671,147 102,642 40,465 143,1,07 197Э 568,305 84,600 ЭЭ,402 118,ОП2 1974 48Э,905 100,088 27,857 127,9�45 1975 Э83,817 8),549 20,485 108;033 1976 296,268 60,4U3 15,Э06 75,710 1977 2Э5,864 29,555 12,156 41,7,11 1978 206,309 26,877 11,274 Э8,151 1979 179,4Э3 24,06Э 4,911 ЭЗ,Ч74 1980 155,Э70 22,355 8,547 30,902 � 1981 1ЭЭ,014 20,546 ' 7,322 �27,86В 1982 112,46В 18,989 6,170 25,159 1983 9Э,479 16,952 5,129 22,080 1984 76,528 14,186 4,186 18,372 1985 62,342 11,794 3,464 15;238 1986 50,548 11,813 2,80В 14,622 . 19В7 Э9,7Э4 8,Эб4 2,196 L0;561 1998 Э0,Э70 7,Э10 1,756 9,066 1989 23,060 5,00Э 1,378 Ь,ЭВ2 1990 18,057 Э,218 1,109 4,Э27 1991 • 14,8Э9 3,41Э 902 4,315 Notв: Inclйdëe ввтvlсв оп а11 debt 1lвеед 1а ТаЫв .1. ' � , Loane from Iпternatloaal Organliatlone , 2 1971 197,921 10,714 7;110 17,824 1972 187,207 9,606 7,662 17,268 1979 177,601 11,Э75 8,325 ' 19,700 1974 166,226 12,004 8,237 20,241 1975 154;222 12,375 7,931 20,306 1976 141,847 12,712 7;490 20,2U2 1977 129,1Э5 13,026 6;91Э 19,939 1978 116,109 12,353 6,928 19,281 1979 103,756 11,642 6,315 17,957 1980 92,114 11,470 5,596 17,066 1981 80,644 10,708 4,902 15,610 1982 69,936 9,961 4,244 14,205 1983 59,975 8,384 Э,653 12,0Э7 1984 • 51,591 7,851 Э,154 11,005 1985 43.740 7,692 2,682 10,Э74 1986 36,048 7,69Э 2;219 9,906 1997 28,355 4,225 • 1,789 ' 6,014 1988 2б,130 3,920 1,5Э7 5,457 1989 20,210 4,165 1,286 5,45r1 1990 16,045 2,750 1,04Э Э.79Э 1991 13,295 2,945 852 Э,797 Loaпs from Govвrnmente 1971 235,762 Э7,558 8,972 46,5Э0 1972 196,204 37,2Э4 7.820 45.054 . 1973 160,970 24,638 6,406 Э1,045 1974 .136,332 14,445 5,720 20,165 1975 121,887 13,562 5,430 18;992 1976 108,925 �1Э,813 5,231 19,044. 1977 94,519 12,623 4,518 17,142 1978 81,889 ' 12,109 3,865 ,• 15,974 1979 69,780 10,450 3,255 13,705 1980 59,330 • 9,610 �2,7Э8 12,348 1981 49,720 9,257 2,267 11,524 1982 40,463 В,762 1,806 10,588 1983 31,681 8,Э07 •1,370 9,677 1986 23,374 6,058 • 94Э 7,001 1985 17,316 Э,В09 709 4.518 1986 13,507 3,809 541 4,Э49 1987 9,698 3,809 Э72 4,181, 1988 5,890 3,040 203 Э,243 1989 2,850 838 92 • 930 1990 2,012 468 бб 5Эб 1991 1,544 468 50 519 с Table 4.3 V 'Foreign Debts of the Philippines, BY Maturities, 1963 1970 (In Willion U.S. Dollars- Had of Period 1963 1964 1965 1966 1967 1968 1969 1 9 7 0 J-- Sept. Dec. Short-term- 41.2 82.4 in.1 139.o 346.9 3o8.1 453-3 484-9 355-7 287.3 328.9 Public Sector 10.7 29. 73.3 -102-.5 -0 .O -rF5-.7 -3-r. 4 -grF 2. Central Bank 10.7 29.4 73.3 102.8 209.0 120.1 196.4 225.8 110.4 55.6 62.8 Private Sector 3D.5 53.0 47.8 36.2 137.9 188.0 257.0 259.1 245-3 231.7 266a Commercial banks 3o.5 53.0 47.8 36.2 63.7 61-3 97.0 73-3 46.1, 40.6 54.8 Others 74.2 126.7 159.9 185.8 199.2 191.1 211.3 Nedi=m-tem 172, 2DO.2 231, 124J 22h, 456. 503-2 580-0 476.9 Public sector 126.4 129.0 135.9 10-W 524.6 113.7 113-0 244.4 223.2 276-3 199.1 233.7 208.3 Central Bank 97.8 105.6 51.8 25-3 53.0 l68.6 155.1 212.8 W.6 174-4 in. 5 Others 28.6 23.4 84.1 88.4 6o.o 75.8 68.1 63.5 56.5 49-3 -36 8 Private Sector 46.1 n.2 96.0 81.2 111-3 212.1 280.0 3D3.7 277.8 278.6 316:3 5/ 4/ jeng-term 145.9 151.6 230.9 258.6 426.6 97.4 710.1 797.3 IM. 1054.2 1111.1 Public Sector 49. -V2 7 -13IT--0 162--l 184-0- 2333 2M. 2 450.3 4W.2 W - Central. Bank - - 1.6 4.6 4.4 4.6 2o4-l 204.6 2o5.o Others 49.1 62.7 -149.6 154.0 160.5 179-4 209.2 239.6 246.2 255.6 315 6 Private Sector 96.8 88.9 81.3 104.6 264.5 333-4 496.5 553-1 597.8 V4.0 590: 5 Total 359.6 434-2 583.9 592.5 997.8 1282.0 1666.6 1862.2 1880.7 1843.8 1964.6 l/ Excluding undisbursed. Payable within one year, originally contracted; commercial banks include PNB and NIDC. Payable from one to five years, originally contracted. Payable over five years and beyond, originally contracted. Tnr-1 iirl a Q t'? - 6 mi I I J 0T) 'p?-PNrj rm Q1 -vr I-n'c--!U-des il4-.O"mi11ion-pr*-----" eviously lanrecorded debt. SOURCE: Data provided by the Philippine authorities. Table 4.4 Foreign Debts of the.piipines, 1963-70 (In Millions of U.S. dol]Ars) Central Commercial Other Total Classif ied by Sector End of Period Bank banks' Trade forei, (1 + 2 + 3 + 4) liabilities liabilitles- redits debts& r (5 + 6) Private (Outatanding Balance) 1963 December 108.5 30.5 60.0 160.6 359.6 186.2 173.4 1964 Decenber 135.0 53.0 69.4 176.8 434.2 221.1 213,1 196e December 125.1 47.8 105.8 305.2 583.9 358.7 225.2 1966 December 128.1 36.2 97.9 330.3 592.5 370.5 222.0 1967 December 263.7 63.7 318.6 351.8 997.8 538.0 459.8 1968 December 288.7 61.3 418.8 513.2 1,282.0 592.1 689.9 1969 December 351.5 97.0. 519.2 698.9 1,666.6 690.9 975.7 1970 March 438.6 73.3 639.8 710.5 1,862.2 791.0 1,071.2 June 487.1 166.1 619.5 758.0 1,880.7 786.8 1,093.9 September 434.6 40.6 687.2 731. 4843.8 766.1 1s077.7 December 439.4 54.8 749.3 72.1 1,964.6 7. 1,07. (Change from preceding period) 1964 December +26.5 +22.5 + 9.4 +16.1 +74.6 +34.9 +39.7 1965 December - 909 -5.2 +36.4 +128.A +149.7 +137.6 +12.1 1966 December + 3.0 -11.6 - 7.9 +25.2 + 8.6 +1.8 - 3.2 1967 December +99.4 +27.5 +225.4 +37.1 +405.3 +146.o +237.8 1968 December +25.0 * 2.4 +100.2 +161.4 284.2 +54.1 +20.1 1969 December -10.6 +11.5 +72.0 +121.4 +194.3 +16.0 +184.3 1970 March 487.1 -23.7 +120.6, +U.6, +195.6 +100.1 +95.5 June +18.5 -27.2 -20.3 +47.5 +18.5 - 4.2 +22.7 September- .-22.5 - 5.5, +17.7 -26.6 *-36.9 .40r.7 -16.2 December + 4.8 +14.2 +62.1 -10.3 +120.8 +60.9 +59.9 Includes shortweediun-and long-tera-(beginning June '70) foreign liabilities and purchases from INF. Includes short-medium-and long-term suppliers' credit and D/A, D/I and open accounts, public and private sectas. Includes DBP medium-term borrowings and other medium- and long-term borrovings, public and private. Includes PNB-U.S. Commercial Banks Swap. Includes $16.6 million previously unrecorded debt. Source: Data provided by the Philippine authorities. Table 4.5 Amortization of Foreign Debts Outstandiig, December 31, 1970 (In Million U.S. Dollars) Beyond I t e m 1971 1972 17 1978 1980 Short-Term 328.87 Public Sector 62.83 Central Bank 62.83 Private Sector 266.0 Commercial Banks 5678 Trade Credits 193.46 Others 17.80 Medium-Term 188.92 152.13 42.82 Public Sector 8 0. 27.04 2 . Central Bank -62.05 59.19 19.05 3.71 27.50 Trade Credits 9.55 6.83 6.41 .24 - Others 6.23 4.86 1.58 1.04 .05 Private Sector 11109 81.25 66.21 4 15.27 Trade Credits 49.28 38.91 25.80 14.37 1.95 Others 61.81 42.34 40.41 28.12 13.32 Long-Term 130.22 127.87 138.56 153.30 108.4 68.08 11790 Public Sector 4 53-10 14.18 13.15 92.25 Central Bank 10.49 20.51 30.97 55.57 56.86 30.01 .62 - - - - Trade Credits 10.85 6.98 5.62 4.53 1.92 1.73 1.24 .20 .20 .20 2.00 Others 25.08 25.61 26.96 17.09 17.65 17.53 17.25 15.74 13.98 12.95 90.25 Private Sector 83280 74-77 75.01 76.11 65.11 li 47 3. 27.97 17.32 25.65 Trade Credits 48.82 53.25 54.37 51.80 45.66 40.77 32.02 20.82 14.23 5.31 - Others 34.98 21.52 20.64 24.31 19.45 18.36 16.95 15-83 13-74 12.01 25.65 Total Debts Payable 648.01 280.00 231.81 8 I84.36 108.40 68.08 5 4 30-47 SOURCE: Central Bank of the Philippines. - Ъ е .б , Cheлgee 1а Ceatral'Hank Forelgn Credlt•L1aЫ11t1ee Durlлg 197о � Fb r1 в ад1 t д- - ' М1111оа II.B. Dоllвтв � Oйtвtdg' ав- оУ� Jaдиааг ... .Н'ë�rua,ry Млгоh nr11 Маи Juns 2 L е ш 12 -' б Ао�с . D1вn. �'дq.- Аос • А�. D1ep. Ао�. D1�. Aog. D1en. А�,• D1en. г - гоТАь �'. -- У.7о- � .85 8.2z 2.зб .оо го.�е, -е.оо 9.70 .К� .го , ® �� ® �sв �в ®Ч ает� � �а�те А. Gorelgri сотФвтсlд].'•Hso1[в' 26�8�"'•`9�9'� r� � �� � 0 00 ��б_ оо г�9. `8 о� �.18� � .го 1 1. 9hort-Term 196�37 - - �:�' - _.В5 - 2• Ь о•00 9.14� " .S:1�8 . �0 3.86 u.s. 162.9д -- 3.6� - .о3 - .86 4о.оо 9.14 - (В.оо а/ .5о 3.аь (1•48 ь,'uropean 33�47� - 3•68 - .ег - 1.5о - - - - - - Ja��adëee' = - - - - - - - - - - - - '�. Ми81ит-Ре� 7г:б2 - - �.� - 1 6 8 Оо - У ❑.н. �-9-gg - _�.ЭS - - �оо - - 11. �.оо J__ _ .___34 L�игч�роаn 2.'16' _ •з$ .- - - - - - - - - .3�i з. г,o��a-Tezv� -- -- -- - - - - - - - - - o�.s. - - - - - - - - - - - - - ы. Inti � i моnвtiагу F1�пд" .82' 0 - - - - 18.00 - - - - - - - СГ. i В R ll . L: �7• - . �� - - .гг - - - - .22' - - D'. r н В N У - , �... �� �о.00� - �� �,�. -- - - - - - Ontstdg. - ве of t._. Se ет.. Octo er ovemb г Decembeп ь.�� � - � •� -�• �• ��: �---�. ��. тотАL '`�. ь Ь�гг io: ' о.оо в��i.г� � 1о. 67�.гг .1о 2гг. zг . 11�. ь � А. b'отеiцп Соштегаlаl Вепkв 32� `' б.�о' io.2 �о: о 8.21 i.� 1о ь.г2 .1о ггг. гг . 11.у6 �l.80 1. Sliort=Tezm 62.8'3 6_Оо 10.2 30•50 _8.21 1.00 1о. 76.г2 6.8В - 2г5•q; 11.96 4•45 и.:,. 1.5о 2.оо 1о.25 •5о 8.21 - 1C.g4 66.22а� - 2оо.6ы ', - 4.45 3•01 J lьliгt,р©ап 1L.33 - - - - - - .82 - 22.28 6.96 . ,Japanвee $о.00 4.00 - 30.00 - 1.00 - 10.00' - - - у.оо - 2. PludtdID-Pe1m б�.оо ! = -- - - - - 66.2г 2z.28 - - .35 в u.s. 4о.оо - - - - - - - бб.2г f - J - - - н.ч�го�ап 24.оо -- - - - - - - - гг.ге - - •35 �. i.ong-Тект 2оо.66 _ � - - _ _ _ - 200.66 - _ - гг.s. гоо.бб - - - - - - - - 2оо.ЬЕ� � - - i5. In1;'1 Monыtary F'ипд ' 10 . ! - �.r0 - - � �� - - - - 2. о �:. г в н п ! r�' �2а - - - � � - - - - - .гг 3f: F н В N У - - - - 4о.0о - - - - - - - � невсhедиllпg. �и�цоё: Cëntral Bank of the Ph111pp1nee. Ые Рh111рр1пв �cternal Debt - XвLurlLy епд Amortlъatlon Еоlидцlе , t � M1111an dmount 1971 1972 1$74 1975 Веуопд ' I L е т Оиtвtвпдlпд 1вt 9ет. 2p�L 3ет. х.с sвт. 2д4 9вт. 1et Евт. . 1вt Ввт. 2�д 9ет• 1et Sem. 2пд Sem. 1975 ТаЛАL 1 6 2Э7•7 7уб� 1 2 � � 111 �� 102•7 1�1" � 80.9 419."! А. ShorL-Tвan � ,j�8: Q 75.1 5.5 __ _ __ _ _ _ __ _ _ PuЫ1o 98.1 5ы•4 _f�.1 _ _ - - _ - -- _ - Central Ввпk 62.ы 5ы.4 4•4 - - - - - - - - - Ргц1. Bas. вапк (вивр) э5•3 J - - - - - - - - - - - � Prlvwte 230•8 16•7 1.1 - - - - - - __ _ _ Supf11вгв' Credlt (В/А. D/Р дг (i�A) 1э4•ы J - - - - - - - - - - - Other Биррllегв' CпdtL 5б.7 - - - - - - - - - - - caen i,овпв 17.8 16.7 1.1 - - - - - - - - - Соттегаlаl Baake (биар) 19•5 в� - - - - - - - - - - � В. Мвдlит-Тект 524.6 101•2 87•7 71•7 •�ц l�.б_ J13,�, �yl ` 22.6 27.1 15.! _ РиЫ1а го . Э4.Э 4Э.5 �0.5 40.4 16.1 11.о 2.6 • 2.Э iы_i 9.5 = Fою1� Сотт'1 Hвnks CentLS1 Ввпk 64•0 20.э 22.2 2.2 11.5 2.2 1.9 1.ы 1.9 - - - Dev. ВвгJс of the Ph11. 12.0 .4 5.1 0.6 3S 0•7 О.ы .7 .г - - - гпь�1 мопвtвrу twm го7.5 ы.5 11.о 24•о ц.5 1о.о 5.0 - - 1ы.о 9•5 - sиррцвгв' Crodlt 23.о 4.е 4.ы э•k 3•4 3•2 э•2 о.1 о.1 - - - 5inger 3виing Maoh. -llBP 1.э 0.3 0.3 0.3 0.4 - - - - - - - Marubenl-I1da - Dept. оТ Соттвюе .5 - 0.1 - 0.1 - 0.1 - 0.1 о.1 - Prlvate Э16.3 66.9 LL.2 L1.2 о.1 ЭЭ•7 � гг.z 20.3 9.о ь.г =_ ЕкрогЕ Doduotlon 2ы.ь 3.о 3.г э•7 3•е э•7 3•ы 3.7 э.е - - - sиррllогв' сгвдlt 13о.3 гб.4 z2.9 2о•ы 1е.1 14.ь 11.2 7.е ь.ь �.ь о.� - савЬ Lовпв 157•4 э7•5 1ы.2 16.7 18.2 15•4 17.5 1о.7 9•9 1•4 5•Ч - с. Lопа-тотт 11. 11.1 61•I+ 68•7 4.5 �3.s3 Le3 6ы.3 73.2 ыо.1 �ь.�1 Ь�•? и1.е РиЫ1о 20.6 15.9 зо.5 25.� 27.8 70.5 ЭЭ.О 29.6 47•Ь Э'�.7 � 1�ё. U.S. Agonay for Iat'1 Development эз•4 1.1 1.z о.4 о.5 0•4 0.5 о.б о.7 о.В о.е гь.4 Int'1 Вап1с for ВооопвLгио- tlon & Dev. 115•7 J Э•5 3.6 4.4 4.4 5•1 5•о 4.2 4•2 4•э 4.э '12.'! Export-Import Ввпk ot Wвeh. 1ы.6 1.2 1.2 1.4 1.5 1.4 1.5 1.4 1.S 1.2 1.2 5.1 Export-Import Hвt�k of Jврап 16.8 - - - - - - 0.7 U.7 0.7 14•! O.S.-Ph11. Ввпkв 11.7 0.7 0.ы 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6 5•4 U.S. СоттодlСу Lовп - Ph11. Covt. 54.2 5.4 5.5 5.6 5.6 5.6 5.6 о.9 о.9 0.9 о.9 17•3 Чавt Сеппаг�у - DBP 14.г о.4 о.5 о.3 о.4 о.5 о.7 о.б о.б о.б о.ь е.у Suppliero' Credlt э5•5 3•4 � 7.5 2•4 4•6 1.7 3.9 1.1 3.4 •Ь 1.э '�•Ь п•tP - sдВ 18.5 - - - - - - - - - - - лВв-ВРwс а гдсг 1.4 о.г о.2 о.г о.г о.г о.2 о.г - - - - свпtгаl Ввпк (ао Reet�цctured) гоо.� - 1о.о 1о.о 1о.о 15•о г5•о 2о.о э5.о 3о.о 2ь.э 29•4 Prlvate 590.5 �;� Э8•2 Э9.2 Э5.5 Э9.ы Э5.; 4Э.Ь э2.5 ЭЕ�•7 2ы.5 21 .' U.3. Ago»оу for Int'1 Dov. 5•4 - - - - - - - - - - - Int'1 Flnanoe Corp.- Рlвгвlао 7.4 о.3 о.3 о.3 о.3 0.3 0•Э о•3 о•э 0•3 о•э 4•1, Export-Tmport Ввпk о! Wввh. 78.6 8.1 8.1 4•о 4•1 2.ы г.9 г.8 2.9 г.е z.y 3г.г sиррцо,го' credlt эб7.о 25•2 23.ь гы.9 24.э з0•э 24.1 эо.2 z1.ь г7.г гы.5 « з•� своЬ впд оспог r4впо 13z.г 11.у ь.z Ь.о ь.е ь.4 е.о 1о.э г.•г ь.L ь.в 55.ь LNTE1t�1' f'AYABLE ОН DEB7` _ ll_eoomber э1, 1970 69.ы Gd.6 56.2 56.'! 4ы.б 47.0 Э7•9 Э9•/ ЭЭ.G 29.9 lD (� �Ф '� 2Л са т. зьогt-тект J '16.3 • 1г'.9 1г.4 i2.4 1z.4 12.4 12.4 1z.4 12.4 1z.4 мвдlцт-те� 15.9 13.7 9.5 1о.7 5.9 5.г г.е г.5 1.е 1.а wng-meтm Э7.б 42.0 э4.3 э3.б 3о.3 29.4 22.7 24.ы 19.4 16.5 � Nevolving oredlte. � fпоlиг]1ng 54•4 т1111оп Central Bank lоапв from IBED relent to nual Ъвпkв. � 1ao1uding lnteraвt оп revalving aredltв fгnm 1971-1975• �O4RCEt CenLral Bank of the Ph111pp1гtee. Table -4.8 Phil-iiPPILue Exterwa -Debt Repayments During 1970 millio.0 1 9 7 0 First Semester Second Semester I t e m Total Princip'aI Interest Sub-T'tal Principal Interest _ub-Total Principal Interest T4-+7) (54 8)_ (6 + 9) 5 + - C8-+ 9 (1) (2) a/ (3) (5) (6) (7) (8) (9) TOTAL 0 2 1. C e-i- tral Bank 150.2 121.4 28.8 46.6 37.2 9-4 103-6 84.2 19.4 Short-Term 130.4 lo8.7 21.7 27-3 24.9 2-4 103-1 83-8 19-3 Medium-Term 19.8 12.7 7.1 19-3 12 7.0 0-5 0.4 0.1 -3 2. Others 386.8 321.0 65.8 141-7 112.9 28.8 245.1 208.1 37.0 Short-Term 78.8 66.2 12.6 21.2 17.2 4.0 57.6 49.0 8.6 Medium-Term 191.0 1§7.8 23.2 71.4 60.6 10.8 119.6 107.2 12.4 Long-Term 117.0 87.Q 30.0 49.1 35.1 14.0 67.9 51.9 16.o a Exclusive of commercial banks' swap arrangement and DA, D/P and OA; includes PNB short-term credit repayments. b / Including'IBRD loan relent-to rural banks. SOURCE: Central Bank of the Philippines. Table 5.1 Consolit4ted Fiscal Operations In Mllion Pesos) 1963/64 1964/65 1965/66 1966/67 1967/68 1968/69 1969/70 A. Summar of Government Accounts 1. Revenue 1,931 1,865 1,868 2,339 2,553 2,862 3,110 2. Current Expenditure I L= JL 2.002 9A912 Z" JLQ5k a-UL 3. Current Surplus/Deficit (1-2) 83 22 -13 12 79 -194 -218 h. Capital Expenditure /1 -60 .Aq 992 -2 _ _6 J75 9. Deficit of National Government (3-4) 167 334 399 229 525 855 1,193 6. Deficit of Government Corporations 3/ 99 317 88 101 184 265 25 7. Overall Deficit (5 + 6) 266 651 487 330 709 1,120 1,218 8. Adjustment (leads and Lags) -19 -193 -100 -133 -366 -480 -261 9. Net Cash Operating Deficit (7 + 8) 2A7 == _J17 m -- -64o 957 B. Financing of Deficit 1. Borrowing Abroad (net) -10 138 2 -li 126 96 149 National Government -3 115 24 - 107 73 -138 Government Corporations -7 23 18 -18 19 23 11 2. Domestic Non-Bank Borrowing 72 -2 7 82 93 _&1 National Government 79 29 -21 -22 65 -L1 -288 Government Corporations -7 11 19 29 17 -52 56 3. Sub-total (1 + 2) 62 178 40 -11 208 189 493 4. Borrowing from the Banking System 71 269 313 324 23 650 638 National Government 23 56 234 I 239V 75 352 635 Government Corporations 48 213 79 85 161 298 3 5. Change in Cash Balances 114 11 J -116 -101 -199 -174 National Government 49 -59 62 -121 -88 -91 -329 Government Corporations (Increase -) 65 70 -28 5 -13 -108 -h5 6. Sub-total (4 + 5) 185 280 347 208 135 451 1460 7. Total Financing (6 + 3) 387 19786140 957 Includes capital transfers. Includes foreign loans. Excludes Central Bank and Development Bank of the Philippines. Includes availment of P184 million in FY 1966 and P7 million in FY 1967 by Philippine Government of deposits of the International Mnetary Fund with Central Bank through substitution of Philippine Government non-negotiable and non- interest bearing notes pursuant to Art.3, Sec. 5 of the IMF Articles of Agreement. NOTE: Some of the historical figures have been revised and do not correspond to data given in earlier IBRD Reports. SOURCE: Central Bank of the Philippines. Table 5.2 National Governt Rereu (In illion Pesos) Revised Actual Estimate Proposed RVENM .LY SOURCE: 1964/65 1965/66 1966/67 1967/68 1968/69 1969/0 1970/1 1971o Tax Revenue 1,561- 1.52 1.562 1.916 2.158 2 272l46 Income Taxes 424 477 467 565 668 836 944 1,095 1,246 Excise Taxes 372 361 349 410 378 449 547 577 575 License and Business Taxes 440 444 468 604 761 822 868 1,015 1,118 Import Duties 419 381 363 497 542 584 613 708 866 Export Tax - - - - - - 80 443 359 Others 95 - 1 108 126 142 157 236 287 Transfers to local governments -189 -229 -213 -286 -333 -389 -502 -564 -637 Other Revenue _U0 .306 Margin Fee 19 - - - - - . - Operating and Service Income 191 217 232 251 267 267 298 358 353 Income from government enterprises 12 10 5 - - 21 7 1 1 Miscellaneous Income 117 59 32 67 55 79 58 81 91 Repayment of Advances 18 2 4 3 3 1 2 3 4 Rebarations 9 5 3 9 9 13 17 11 11 Others 4 47 30 93 61 22 17 17 17 New Tax Proposals - - - - - - - - 269 TOTAL REM 1T1865 _._86 2.L862 3.1119, AW&aUg~ BY FUND) General Fund 1.608 i 1 .552 1,928 2 2.492 3,06 3918 Bureau of Internal Revenue (let) 168 753 831 905 1,039 1,235 1,327 1,559 1,786 Bureau of Customs (Net) 614 596 589 804 843 948 958 1,100 1,290 Others 198 146 132 219 224 182 207 647 843 Special Fund M 180 36 Q ll 666 1.,109 1.062 Fiduciary Fund _4 25 _60 _Raations Fund 3 9 9 13 18 11 11 Less: Interfund Transfers -64 -61 -72 -77 -84 -109 -128 -524 -458 TOTAL EVENUE 16 1&868 2.862 3,931 Total Revenue including transfers to local governments as a percentage of GNP 11.3 10.3 9.2 10.7 10.8 10.9 10.4 11.3 11.8 Excludes borrowing. Source: Budget Commission, February 1971 Table 5.3 National Goverment Expenditure (in million pesos) Fr 196 165962 197o 1971 1972 ALML HEV. EBOM. ORIG. ESTIM. Current Expenditures General Administration 182 a60 1 08 coneral Governmen 193 230 240 2 264 292 390 387 Justice & Police 99 110 122 137 161 197 223 223 332 National Defense 183 178 192 214 302 293 351 355 366 Social Services 922 73 16 8 1 .127 _1_ IL4 Edcto-6 9 8 770 19 939 1, 6 1,122 1,226 Health 109 113 120 117 135 167 204 196 213 Labor & Welfare 28 26 30 29 31 21 53 105 62 Economic services 121 3. 61 1o2 487 Ai L20 Agriculture & Natural Resources 113 118 114 123 191 254 Transport & Cnenications 153 124 182 206 259 282 241 243 .250 Comerce & Industry 27 27 25 27 29 68 41 50 62 other Boonantc Develoments 35 37 46 46 61 61 149 108 121 Transfer Payments 1.2 111 86 1u265 178 118 112 Subsidies 102 64 44 53 170 57 1 10 other transfers 47 47 68 79 45 95 121 104 102 National 4efene 43 45 55 62 27 74 99 82 81 Others 4 2 13 181k 18 21 22 22 21 Debt Service18 f26 Intereat Payments 62 55 2'f 17 92 101 Capital Transfers 133 64 84 104 85 183 95 196 266 TOTAL CUREZU NIUE 1,848 1,843 2.002 2.210 2.47 & 3,328 3,810 Capital Erpenditure GeaMnl AAmnistration 18 2 6 General Government 13 11 19 15 20 11 14 7 Justice & Police 2 1 1 3 7 7 2 0 1 National Defense 3 2 2 10 16 16 8 8 8 Social Servicese 11 IL U§14 Education 1 25 3 35 53 Health 7 4 8 6 7 15 22 3 11 Labor & welfare 6 1 1 0 1 0 7 7 3 MO M 1762 251 612 561 anmm .,w.15o 9 .53 58 9L9 5il ill 142 Agriculture & Natural Resources 15 15 53 38 66 99 57 111 12 Transport & C unications 138 279 90 200 262 271 445 331 413 Camroe & Industry 10 2 2 2 6 9 17 15 32 Other Economic Development 8 12 23 11 40 78 93 105 111 oeexrR PEDTRE22 23 11 460 68931016 TOTAL CAPITAL ETm nm Af L2 25 121Pa16 610 TOTAL PENDITURE 2A067 2.076 2.227 2,IL1 29I 3.611 4.054 1/ Expenditure of Goverment Corporations financed by sources other than the national budget ire excluded. Also excluded are all foreign-financed expenditure 2/ Loan revayments and s,nkinr fund contributions SOURCE: P.E.S. Table 5.4 Annual ExpendHnres an Infrastrucire by Major Sector. (in silian Pesos) Target Execution of Four-Year Infrastcture Investment Program 1966/67 Total Dam&Ue Total Foreign Total to July 1 - June 30 1962/63 1963/64 1964/65 1965/66 1966/67 1967/68 1968/69 1969/70 Exp Eenditre Expenditure 1969/70 % Realization Highways 50 91 139 89 179 260 230 218 765 122 887 960 92 Airparts 13 10 10 5 10 11 33 48 84 20 1o4 135 77 Bko-vorks 35 6h 32 39 29 35 20 21 84 22 106 119 89 Railways n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Telecommunications 8 9 7 4 16 18 _22 46 35 66 101 123 82 Power- 36 44 54 6h 60 60 36 52 163 6 209 285 73 Irrigation 6 5 3 11 22 32 43 h6 100 h2 142 286 2/ 5 Water Supply 11 8 7 34 61 63 79 43 178 68 246 299 / 82 Flood Control 19 7 3 5 1 3 11 5 20 - 20 60 33 Building Constmction 14 25 17 17 32 1/ 88 1/ 104 1/ 47 189 71 260 267 2/ 97 Community Projects n.a. n.a. n.a. n.a. 10 1/ 8 1/ 15 V 163 208 - 208 196 g 106 Preliminary Engineering n.a. n.a. n.a. n.a. 1 3 2 2 8 - 8 14 57 Total Expenditure 189 263 272 267 421 581 596 691 - - 2,290 2,745 83 of which Domestic Funds n.a. n.a. n.a. n.a. 360 469 480 523 1,833 - 1,833 2,099 87 Foreign Sources n.a. n.a. n.a. n.a. 61 112 116 168 - 458 4 646 71 / Building Construction includes P 11 million to be classified under Community Projects. / LTsub-targets were reduced to accommodate a P56 million excess in ComauniW Projects. The total target was not chaged. Source: Infrastrmcture Operations Center. Table 5.5 Annual Investment Requirements Revised Infrastructure Program, FY 1971 - FY 1975 Domestic and Foreign Fund Sources (In Millions) Five-Year Five-Year * Five-Year PRDJECT CATEGORY Total DMETIC Fu SOUMM -(P) .Total 1FREIGN SOURCES (5) Total Domestic and Foreign F 1971 ! 1972 !297 F! 1974 FY 1975 Damestic FY 1971 F! 1972 F!r 1973 F! 1974 FT Foreign 1. EMhways 2,303.32 239.10 297.70 365.80 447.50 450.00 1,800.10 12.47 14.01 15.63 19.06 22.70 83.87 2. Airports 286.42 10.10 17.30 22.80 30.00 30.00 110.20 - 5.49 8.92 10.23 4.73 29.37 3. Air Nay. Facilities 183.14 5.00 30.00 11.40 9.90 12.00 68.30 4.15 6.77 4.98 3.24 - 19.14 4. Portworks 312.30 32.80 32.90 27.10 30.00 35.00 157.80 1.10 4.55 8.20 7.90 4.00 25.75 5. Railroad 183.48 - - 10.00 10.00 10.00 30.00 - 7.20 9.27 7.52 1.59 25.58 6. Telecommunications 478.38 12.50 10.20 26.00 30.00 35.00 113.70 1.87 9.94 16.10 15.87 17.00 60.78 7. Irrigation 923.76 69.00 110.0 118.70 99.80 69.00 462.00 10.82 12.60 16.10 14.00 23.44 76.96 8. Watervorke 645.54 52.20 49.00 61.90 81.50 86.00 330.60 0.56 3.77 8.60 23.00 16.56 52.49 9. Power 982.48 35.00 90.50 90.10 99.10 100.00 414.70 4.07 13.52 22.54 30.13 24.37 94.63 10. Rural Elect. 165.80 11.80 20.00 19.00 25.00 30.00 105.80 3.00 2.00 - 5.00 - 10.00 11. Schools 224.62 15.00 21.80 22.90 23.50 30.00 113.20 2.20 5.34 5.46 5.57 - 18.57 12. Flood Control 100.40 12.00 15.00 15.00 18.20 18.00 78.20 - - - 1.90 1.80 3.70 13. Shore Protection 17.00 2.00 4.00 2.00 5.00 4.00 17.00 - - - - - - 14. Rldge/Hospitals 66.10 11.10 13.00 12.00 15.00 15.00 66.10 - - - - - - 15. Misc. Public Works 99.50 20.00 20.00 19.50 20.00 20.00 99.50 - - - - - - 16. rml. Engineering 86.60 7.40 12.00 12.00 12.00 15.00 58.40 0.20 0.50 1.00 1.50 1.50 4.70 TOTAL 7058.8 535.00 T 831.20 9 9 4,025.6o 40.44 85.69 116.80 1 117A9 5 Excludes grants and other aids. SOURCE: PES, February 16, 1971. -Table -5.6 :PhysicalAccomplishments of IAfrastructure Investants .' 4 -Tear -Target 1%.Accom- u y.1-- June :30 Units 1962/63 1963/66 1966/65 1965/66 1966/67 11967/68 1968/69 -1969/76 Total;/ -1966/67-1969/70 plm 1. .Highways Ooncrete -Kas. 60 '76 79 138 ,l62 1625 566 438 :1,791 2,350 76 .sphalt Kas. .630 612 66L 553 .240 963 760 '813 2,7.7 2139 Gravel/Feeder EKms. 2,100 2,539 :2,021 ,115 1557 976 '855 3,826 5,812/ 3;900 119 .PermanentgBriges L.M. <2,637 i2,609 1,835 ;2,7367 ,oo7 6,31 26,131 30,000 '80 2. Irrigation -Hectares .26.492 :19,113 I= 3 51,514 95.386 -8574 i .3a Q 5 Rehabilitation Hectares n.a. 'n.a. nJa. .n.a. 11,000 16,500 2,000 500 .28,000 3>,000 93 Nat. Gravity Hectares 'n.a. n.a. n.a. n.,a. 11,620 29,130 -25,800 2-1,150 -87,700 -307,050 -29 'ommunal Hectares n.a. n.a. n.a. n.a. 7,671 7,606 9,191 16;751 38,819 19,000 206 Pump Units Hectares n.a. n.a. n.a. n.a. 21,623 .44,350 48,756 8;962 123,669 102,000 121 3. Airports Airports No. 3 11 9 5 2 6 2 -6 12 68 25 Air Navigation Facil. No. -8 - 3 4 3 .2 2 9 16 '181 9 L. River Control -Sarth Dikes Kas. -n.a. n.a. ,n.a. .n.a. 2 12 .9 4 -26 '237 11 Revetments L.'M. n.a. n.a. n.a. n.a. 1,626 268' 2,262 -566 6,680 6,100 77 -Drainage 'Mains L. M. n.a.. n.a. n.a. n.a. 208 465 - - 673 600 168 Dredging Cu.m. n.a. n.a. n.a. n.a. 12 1,965 819 971 3,767 2,006 188 5. Waterworks Manila,& Stburbs -% n.a. n.a. n.a. n.a. 39 13 26 '5 81 89 91 Provircial No. 10 5 5 69 26 115 29 75 -245 808 30 Artesian Wells No. 616 665 228 '293 206 269 168 36 o679 6,800 Th 6. Buildngs Schools Rooms 1,00 3,003 1,60w 1,500 1,361 18;583 20,556 37,963 78,663 88,445 National Buildings Sq. M. n.a. "n.a. n.a. n.a. 13,625 z6,965 32,343 31,981 86,896 216,700 Hospitals Sq. M. n.a. n.a. n.a. -n.a. 2,620 2,230 16,600 18,516 39,766 151,200 26 7. Portworks Foreign Berths :No. 2 1 3 1 9 .8 1 - .18 38 48 Domestic Berths No. -6 -L 18 15 3D -12 -18 18 .78 -66 118 Recalimed-Port Area Hectares -n.a. n.-a. n.a. n.a. 0.6 .0:2 7 63.7 51.'3 108 68 Warehouses Sq. eters n.a. n.a. .h.a.-- n.a. 5,708 . -16,626 8,650 2,990 31,976 38,960 ..82 causeway -Bulkheads L. M. nea. n.a. n.a. n.a. 1,672 2,950 6,526 7,3. 16,192 13,175 123 Dredging Million -u.M. 3 5 . 3 *13 17 11 7 -55.5 88 Seaialls L. M. n.'a. n.a. n.a. n.=a. 679 629 2,136 ,44t 7,658 6,120 186 8. Power Power Generation M.W. n.a. n.a. n.a. n.a. 12 250 - - 262 '387 68 Power Distribution Kms. 163 68 187 317 283 353 365 193 983 2,100 67 1/ Telecommunications. Sc,ruce: Infrastructure Operations Center. Table 5.7 Revenue and Evenditures of Local Authoritieg By Function (In Million Pesos) 1963/64 1964/65 1965/66 1966/67 1267/68 1968/69 Revenues - Total Local Government 02 81 634 674 741 849 Internal Revenue Allotment 189 229 213 2491/ 333 389 Real Property Tax 82 89 98 111 120 112 Municipal Licenses 64 71 76 82 98 105 Fees and Charges 65 81 91 98 105 113 National Aid 35 47 61 43 68 75 All Others 67 64 95 91 17 55 Expenditures - Total Local Government 50638 586 756 817 General Administration 224 250 086 308 340 262 Economic Development 90 102 118 118 142 153 Social I:mproveftent 86 75 85 102 112 109 Debt Service 6 7 11 9 11 14 All Others 104 1 137 49 151 279 Provincial U6 161 186 1 0 21 General Administration 54, 58 63 61 69 50 Economic Development 42 48 54 55 65 80 Social Improvement 23 25 30 29 33 35 Debt Service 1 1 2 3 4 4 All Others 26 29 37 27 29 72 9m 214 ?.9 W 251 3 332 General Administration 93 104 123 145 155 129 Economic Development 23 30 36 38 36 Social Improvement 54 41 44 61 64 58 Debt Service 3 4 7 4 5 7 All Others 41 35 49 5 74 102 Municipal 150 171 l 9 160 22 24 General Administration 77 88 100 102 116 83 Economic Development 25 29 34 27 39 37 Social Improvement 9 9 12 12 15 16 Debt Service 2 2 2 2 2 3 All Others 37 43 51 17 48 105 Surplus (+) / Deficit (-) -.8 +M0 +88 +32 1/ Budget Document, FY 1971 shows 1286 million. Source: Report of the Auditor General on Local Government, FY 1968. Table 58 Outatanding Internal Public Debt as of December 31. 1970 (In million,pebos) Outetanding Outetanding 1 E M as of Additional Repay- as of 12/11/69 Borrömings men 12/11/70 Total 1.584.8 1.192.7 6,230.5 National Goveñíment .8 1.356.0 1.048.2 3»849.6 CBP provisiofal loans and advances 3 100.0. 99.0 325.9 FW and ä Bonde 983.1 20.0' 20.0 983.1 Treasury Bilia 379.1 1,097.5 895.3 581.3 Treasu y Notes 1,263.8 44.1 - 1,307.9 Natiònål Collateral Bonde 0.7 - 0.7 - mlI) Bondi 1.0 - - 1.0 LTA - Négötiable Land Cäi•tificatsa 16.2 - - 16.3 Måtioal It1,i6 Improein~t Bonda 2.5 - - 2.5 Land B~äk Capital Bönds 5.0 - - 5.0 IftåPhiliWpines loana 5.5 - 2.0 3.5 COrtificates of Indebtedn's 15.0 15.0 15.0 15.0 Bori.oings from CBP tö fihnnco dubsciptions to interational financial institutions 49.9 73.1 12.6 110.4 Socid-Ecañomic Bondé 50.0 - - 50.0 P keplåcement Bonds 180.2 - - 180.2 Loan to lokdrgVts. àsiumed by thå National åöverient 0.9 - - 0.9 ä,åékpay Obligatione - RA 304 104.9 3.8' 3.6 105.1 Bäckta Obligatiåna - RA 897 85.8 2.5 - 88.3 Pý'-wàr obligätiina of the National Government 9.5 - - 9.5 e4és and póat-surrender isMues - &mergecy Uûrréncy Nåteå 63.7 - - 63.7 Local Goir~miütå 121.0 10.8' ..0 108.8 gBP pròvisiònal loané and advances M. 1 n.9 ~~6.1 Éåckpay obiatidns -- RA 304 15.0 0.6 0.5 15.1 DIP loan 65.1 4.0 6.6 62.5 MSS loans 22.6 - - 22.6 kanila Pûbicå Imroeiaent Bndo 2.5 - - 2.5 doténment Corprations (guaranteed by National doierhmèt) .8 181.0 121.1 1,847. -NC Bond» 248.3 2.Öb 265.0 NAWASA Bonde 224.0 26.0 - 250.0 NIA Bond - 62.0 34.0 - 96.0 DBP Bondå Payable 727.6 92.2 -84.1 735.7 TåP Poiig^eas Bonds 498.4 3.4 31.8 470.0 '.and B'änk Bondå 2.9 3.2 - 6.1 MWD Bonds 2.0 - - 2.0 ACA Notés 17.0 - - 17.0 Backpay öbligatidfa - RA 304 6.6 0.2 0.2 6.6 Government Corporatian's (not guaranteed by Natidnal Gövöfitnent) -386.8 37-0 0.4 423.4 CBP loans to DBP 37.0 37.0 · 0.7 77. CBP loåäs to PYTA 231.3 - - 231.3 ,CBP -löans to ACA 118.5 - - 118.1 Monetary Institutiän- 68.1 ,CBP Cettif±atés of Indebtednesm - . ~ - 1/ Nåv. 30, 1970 Sdìrcle: Philippife aVthorities Table 5.9 Holders of Government Securities (In million pesos) E nd of. Period Item June 1962 June 1963 June 196J 1 June 1965 June JnJune 19 9 June 1970 Dec. 1970 Banking System 1,464.4 1,415.5 1,405.1 1,426.3 1,532.7 2,114.1 21h98.9 2v894.2 3,652.8 3,526.3 Central Bank 1,194.2 965.7 1,010.9 1,009.6 1,034.4 1,371.5 1,612.2 1,828.3 2,362.8 2,384.9 Commercial Banks 270.2 149.8 394.2 416.7 198.3 742.6 886.7 1,065.9 1,290.0 1,141.4 Government Financial Institutions 163.0 186.0 252.0 282.6 305.5 227.9 231.2 282.8 29 . GSIS, SSS 128.4 14h.4 213.8 239.5 261.1 193.1 205.6 229.6 280.1 232.0 Others 34.6 41.6 38.2 43.1 14.4 34.8 28.6 53.2 15.1 14.7 Government Trust Funds 228.6 266.0 312.0 389.1 3582 416.6 `481*3 193.0 6117.5 Private Sector 27-3 k. 2. 298 13.2 112.5 207.1 233.8 310.5 jq 2 7711.8 2/ Total 1,883.3 1,907.7 2,008.? 2,141.2 2,308.9 2,965.7 3,448.2 3,980.5 5,101.7 5,233.0 1/ Includes bond issues of the Development Bank of the Philippines (DBP) and Land Bank of the Philippines. 2/ Preliminary. Commercial banks' holdings in Treasury bills unavailable. Sources: Securities Market Department, Central Bank of the Philippines; Development Bank of the Philippines; and Land Bank of the Philippines. -Securities ed lu y Kagtional iGovernment .and Governannt Corporations jary lo Deceier 1965 to 1970 - in·.. I.. o ppo µpe of Security 1965 1966 1967 1968 11,9§69 1970 5 94 28.4 1 OM..0 1.99.2 1720.6 National Government 172.3 69L.3-3 1.64.3 1,5.2 PW.and ED Bonde 29.1.93 ~20#0 So,io-Econonc Bonds 6.5 - - - - Treamury Notes 289.3 569.2 165.0 .,8 730.9 94.1 Negoabl1e land CertificQate8 - - ,0.3 3.3 0.1 C,ertif-icates of Indebtedness 115.0 -- - - 15.0 2Bis - 82.5 1o.0 690.7 809,8 1,377.0 P tBonds ,RP 2teni Loan Bonds 9- anR ital onds - - 0 - - Govrnment Corporatians 39.9 2 2.388.9 146. ýNIA Bons 39 0 3 10, 11.3 .0 MPC Bonop 2L0 - . 14 15.2 22.0 SA nns L 33,3 53.0 25.9 OAP Bonda 1.2 29..0 -90.9 90.0 61.2 åBP Pr,gr, Bonds 93.9 43..f8 83.2 217.5 - Land Bak 2 B,onis - 0.3 k0.7 1.9 3.2 Monetary Intitutins -- _ 68.1 CBP Certl'categ,of Indqb,tdnaa - as - 1/ $l~ = .5 Sources: ä ce tP MgrIkot Prmn, Central Bank of he ri:pm; p Devgopment Bank of the -Philippines; and Land Bank pk the Ph-lippines. Table 5..11 Holders of Different Types of Government Securities As of December 31. 1970 (in million pesos) Out- Commer- Local standing CBP cial Trust Semi-Gort. Private Foreign 12/31/70 Banks Funds htities Sector Holders Total 5,3. g38A.9 L.hlU.Y685.2 246.7 73. 41. h2 National Government 3.200.8 1,5096 272.8 120.5 0.3 .2 PW and ED Bonds 1,001.1 220.9 512.7 141.1 91.6 3h.8 - Socio-Economic Bonds 50.0 4.1 30.9 5.3 - 9.7 - Treasury Notes 1,307.9 1,10h.0 162.8 12.0 23.9 5.2 - Negotiable Land Certificates 16.3 - - 14.4 - 1.9 - Certificate of Indebtedness 15.0 15.0 - - - Treasury Bills 581.3 2.7 n.a.2/ 79.9 - 498.7 - RP Replacement Bonds 180.2 160.1 - 20.1 - - - RP Ebternal Bonds 44.0 2.8 - - - - 41.2 Land Bank Capital Bonds 5.0 - - - 5.0 - - Government Corporations 1,960.1 873? 312.1 412.1 125.4 176.8 NIA 95.9 3.2 36.6 56.0 - 0.1 - NPC 265.3 67.9 21.4 166.1 6.8 3.1 - MWD and KAWASA 252.0 78.0 42.0 119.0 13.0 - - ACA 135.1 118.1 - 17.0 - - - DBP 1,205.7 606.5 272.1 5h.0 104.9 168.2 - Land Bank 6.1 - - - 0.7 5.4 - IPM Bonds .0 1.6 1.2 0. 0.8 0.1 Monetary Institutions 68.1 - .7 - -6_.7 6- CBP Cert. of Indebtedness 68.1 - 61.7 - - 6.4 1/ Inclusive of security issues by the Central Bank of the Philippines. 2/ Inclusive of the DBP Progress Bonds. I/ Preliminary. Commercial banks' holdings in Treasury Bills unavailable. Sources: Securities Market Department, Central Bank of the Philippines; Development Bank of the Philippines; and Land Bank of the Philippines Table 6.1 Factors Affectin Man S l 191-10 (i illion Peace) 196 1962 11 1 19e 1966 1QA7 1QAR 1969 1970 Public Sector O.ank edil to the National Government Gross Credit Central Bank 767 826 811 882 831 956 1,252a 1,256 1,773 1,976 Commercial Banks 6_0 1 6L 1.032 900 12 1,27 1S 1r7 r ,13 ,1 2,876 Cash Balances and Deposits 521 627 - - Z - 67 - 827 - 79 - 9 TOTAL 642 525 640 715 548 826 1,065 1,235 2,040 1,920 2. Bank Credit to Local Government and Semi-Government Ehtities Gross Credit Central Bank 658 702 750 70 754 871 1,05h 1,045 1,149 1,18h Commercial Banks5 125 _ 1 2 652 594 iI.2 1.098 1.458 1.578 TOTAL 783 796 937 1,037 1,046 1,465 2,066 2,143 2,607 2,762 Time and Savings Deposits 352 -90 2 - 2 - 281 NetCrdi - 11Ii 347~ f 116 ~20 1,763 I18?7 2, 315 2,1 3. Net Credit to the Public Sector 1,136 969 1,187 1,1426 1,716 2,035 2,828 3,111 4,355 4,401 Private Sector 4. Gross Bank Credit Loans, Discounts, Overdrafts 6 Customers Liability Acceptances 2,502 3,003 3,937 h,518 4,729 5,360 6,26h 6,983 7,250 /8,30b Corporate 8ecurities 2 -4 * 3 2 5 - 4 7 140 TOTAL . 2,504 3,007 3,91h 14,521 4,731 5,365 6,269 6,987 7,297 8,470 Time and Savings Deposits -1.1 - -!A60 - -125 i2 5. Net Credit to Private Sector 1,396 1,640 2,174 2,499 2,521 2,541 2,694 2,722 2,909 3,271 6. Net Domestic Credit (3 + 5) 2,532 2,609 3,361 3,925 14,237 h,h98 5,437 5,833 7,264 7,672 Net Miscellaneous Account of Banks 7. Not Miscellaneous Account of Cmtral Bmk and PNB 314 220 207 182 629 41 594&/ 501 555 790 8. Net Miscellaneous Accounts of Private Commercial Banks 188 172 3 5 6 7 861 96 1.170 TOTAL 502 392 552 7144 1,078 1,204 1,349 1,362 1,524 1,960 Erternal Sector 9. Foreign Assets (a) Central Bank 159 184 328 4314 735 6148 701 629 470 1,181 (b) Commercial Banks (net) 133 234 94 - 109 42 268 314 258 174 414 (c) Foreign fkohange Differentials - - - - - - 148 TOTAL 292 418 422 325 777 916 1,016 887 64 1,373 10.0freoto a_ ntral Bank Foreign Liabilities8165 212 88 166 342 401 903 1,108 1,371 1,778 (b) Revaluation of Foreign Assets (-Loss) - 62 8 189 45 5 516 _*. 268 259 260 TOTAL 103 130 277 622 869 917 1,06 1,376 1,630 2,038 11.Net Eternal Sector (9-10) 189 288 145 - 297 - 92 - 1 - 391 - 489 - 986 - 665 Money Supply (6+11-7-8) 2,219 2,505 2,954 2,881 3,067 3,371 3,783 3,982 14,754 5,047 Percentage rate of change 17 13 18 - 3 7 10 12 5 19 6 NOTE: Individual figures may not exactly add up to the totals because of rounding. Central Bank loans plus securities held by Central Bank. ~/Securities held by commercial banks and loans by comrcial banks. oIncludes cash in Treasury values deposits with commercial banks and with the Central Bank and Trust Funds with the Central Bank. Same as in footnote 1. Same as in footnote 2. Y/includes unused overdrafts. SDenoted as International Reserves in the corresponding tables in the Annual Reports of the Central Bank of the Philippines. ~/Spjci.ql loans and advances abroad. a 1 The folloing figures in this table differ from the corresponding figures given by the Central Bank of the Philippines: the gross Central Bank credit is higher in this table by ?134 million; the miscellaneous account of the Central Bank is low- by P100 million and the Revaluation account is higher by p234 million. These adjust- ments have been made by us because the decrease of ?2314 million in the Revaluation account is merely a bookkeeping adjustment and should not be treated as if it were related to transactions in the external sector. b/ Including Central Bank emergency loans to savings banks. Sor i Central Bank of the Philippines. Table 6.2 Volume of Savings and Time Deposits 1965-70 (In million pesos) Savings and Comercial Rural Savings Development Loan End of Period Banks Banks Banks Banks Associations 1965 2,456.4 75.2 168.6 34.1 - 1966 3,140.6 96.5 257.2 82.3 7.0 1967 3,872.3 135.5 350.4 173.2 10.2 1968 4,072.2 163.5 343.2 263.9 18.3 1969 4o,386.6 196.0 425.0 316.5 26.5 1970 5,226.8 231.11/ 557.8 324.61/ 40.51 Note: Data on insurance policies (net income and gross rates are not available.) 1/ Tentative ao reb: Central Bank of the Philippines. Table 6.3 Net Domestic Credits of the Commercial Banking System. 1965-1970 (In millian pesos) PNB- .Other Banks 1/ Other Other Grand End of Period Central Public Private Central Public Private Total Govt. Inat. Sector Total Govt. Inst. Sector Total (4+8) (1) (2) (3) (4) (5) (6) (7) (F): 1965 -374.1 201.6 756.7 584.2 157.3 -60.0 1,125.6 1,222.9 1,807.1 1966 -270.4 102.8 800.5 632.9 324.4 6.1 862.7 1,193.2 1,826.1 1967 -316.5 418.6 1,016.5 1,148.6 317.1 - 5.0 799.4 1,111.5 2,260.1 168 -300.4 48.9 992.2 T160F.7 TW4.6 747.3 ro,161.6- I,685.5 2,8462 1969 - March -250.1 617.9 872.9 1,240.5 491.6 70.4 1,136.6 1,698.6 2,939.1 June -344.8 612.9 850.2 1,118.3 487.1 76.2 1,247.0 1,810.3 2,928.6 SepteMbrV -285.7 636.3 888.9 1,239.5 528.4 92.0 1,171.1 1,791.5 3,031.0 December -312.3 754.3 957.4 1,399.4 708.5 131.9 707.5 1,547.9 2,947.3 1970 - March -504.1 783.5 967.6 1,247.0 779.5 141.7 735.6 1,656.8 2,903.8 June -577.5 712.3 941.4 1,076.2 633.0 192.2 993.7 1,818.9 2,895.1 September -613.0 698.8 842.5 928.3 660.0 162.0 1,249.0 2,071.0 2,999.3 December -532.4 791.1 953.2 1,217.9 701.9 232.7 1,239.8 2,174.4 3,392.3 1/ Includes rural banks accepting demand positions. Source: Central Bank of the Philippines. Table ,6.4 I1ans and Investaientaof Fiancial:Institutions, 1967.970 on peso Change Chan e Ch~nan 1 5'7 0 1 9 7 0 Change Institutions 16, 1967-66 1 -9. 1969 19 8 F e b D D e c * 1979 To BanteSo ... ............ 5, .2 6,29.9 566.7 9. 2 288'0 679 7, 8,23.6 322.8 To Puiac ctar ........... . .2 ,9 7 9.9 33. 22 3 2 . 27 9. To Pbivate~Sector ..................- Couaercial Banke .................... 2 1 .0 92. - 82 9670.8 .63.9 To Public Sector .................. 13.7 21.11 7 . To Private Sector ... ... 62.4 6,290.9 5.7 6,970.8 679.9 7,099.9 8,293.6 1,322.8 Avel nt Bank. . . .............. 1 %28U 2. .6 .74 To Public Secr .................-3 5 2- To Private sector 1,562 3i9.2 1,969.9 347.1 2,297.4 387.5 2,337.8 2,788.3 490.9 Rmaal B~ 339.,8 f l 2 a 34d ý8 .o~ ý:Yý 26 ::4'2i _:j 56.2 To Public Sece. .................. 6.3 -0.1 17.6 . 1 72 -21. 17.1 9.1 1.9 ToSS Privac......................... 333.0 72.0 390.0 57.0 46.5 26.5 416.5 470.8 54.3 Sa~ Ba ..... .................. 96.& 10. 1 227.6 34 To .............................. 124.8 -4.o 135 175 137.8 &.3 12 1 1.7 To Irit. S .................. 223.6 51.0 277.1 53.5 27.7 20.6 272.1 293.1 15.4 All. nsi ? ....................... 2 1 6 2 1.-9 l 3 3 .14 4 . 5 0,4 16.893.3 __2.6 To publio setituion . ............. 3.3 68.3 3,.784- 436.3 5,022.3 1,2375 5,145-.0 5,047.5 25.2 To private serate3.6 1,00.6 8,867.9 1,000.6 9,962.and t,68.- 9 D,926.4 11,845.8 1,883.4 GS................. 1,379.3 198.1 1,1477.6 98.3 1,749.2 271.6 1,766.1 1 858-6!/ '109.4 SSS596.6 60.9 780.8 184.2 824,9 44.1 8a4..6 110W0.We 255.1 96.7 8.5 106.7 r0r u 106.6 -0.1 106.4 118.8 12.2 NIDC 1..0.00 -J4.o 137.5 17.5 137.8 0.3 128.9 109.1 -28.7 PrivatI,u±atinclu s b esl g hh a 40.1 231.1 51.3 251.9 20.8 215.9 233.1 -18.8 All1 Nin-ania Inatitutioms........ 1354.32lm 1,W 02..9 2,929 2 x cith the e eptitn ol reditn granted by th C ntral Bank to the A Tc= Creit Anstratun, fLguræ In this table a=ludending to each athor by the financial institatians. e d a setor is defn,d to c ist a the catp Govermnt, laai gonnsh and wer rmt-od enterprites aad corparatirna. E xcluds Central Bank sc and advane to cercial bank rural banks and sa~in. banks; DB? bmmiqp and Z5 hal~ af DBP bonds. Includes ail pri"at development banks azkd tbe DBP (incl"sive af trust Punde). Holdng of sec' iu,t s~d to be all govgt isAIfs .dl a ~ a Istnig 1~n 1~ aemmd to be grue~ to private entities. As ofI - - 3.1 19g b Include all sain bk _p t.e Pot Sai Exclide e secnrity holin ~K 4hic »koslailt aU data.omle aala l e P As of April 1970. Se Cento n private ilititnes "B r. v Un the ew canoept, private iua ccu~ ann pa~ops W8r" eroluded while Pr,ivae.eeo"tCop'ta ttsPhlpte,Enæ eeoætad Saigsad LonAssociations ~ær added to H~tif. Building and Ian Association. e/ AoJ 3l969~ b/ Exclig ruål ba~k. c/ As af Cctober 31, 1970. - As of April 1970. 5~re: Central Bank of tbe Phil.ippinwa. Table 6.5 Composition of Credit Outstanding to the Private Sector-', 1961 - 1970 (in million pesos) I tPms 1961 1962 1963 1964 1965 1966 1967 19686/ 1969 1970 a/ Agriculture, Forestry and Fisheries 837.7 951.0 1,172.5 1,382.3 1,585.0 1,696.2 1,947.8 2,322.8 2,525.0 2,560.7 Percentage rate of change 13.5 23.3 17.9 114.7 7.0 114.8 19.3 8.7 1.h4 Industry 2/ 1,255.5 1,504.6 1,759.8 2,014.2 2,099.5 2,331.1 2,593.h 2,854.14 3,083.5 3,233.6 Percentage rate of change 19.8 17.0 14.5 h.2 11.0 11.3 10.1 8.0 4.9 Commerce 635.5 826.6 1,248.5 1,528.3 1,858.2 1,805.3 2,319.6 2,091.2 2.329.5 2,501.7 Percentage rate of change 30.1 51.0 22.4 21.6 97.2 28.5 -9.8 11.4 7.14 Foreign Trade Y" 368.6 485.3 735.3 929.2 1,139.8 1,056.5 1,273.6 h83.3-7/ h38.2 650.2 Percentage rate of change 31.7 51.5 26.4 22.7 -7.3 20.5 -62.2 -9.3 48.1 Export 133.4 192.9 278.2 327.5 336.1 341.1 347.8 218.7 185.4 278.7 Percentage rate of change 44.6 44.2 17.7 2.6 1.5 2.0 -37.1 -13.h b7.1 Import Z35.2 292.4 457.1 601.7 803.7 715.4 925.8 264.6 2h8.8 371.5 Percentage rate of change 24.3 56.3 31.6 33.6 -11.0 29.4 -71.4 -6.0 49.3 8/ Domestic Trade 201.8 269.2 388.9 456.5 526.3 562.0 773.6 1,389.1,57M.9 1,533.1 Percentage rate of change 33.4 44.5 17.h 15.3 6.8 37.7 79.6 13. -2.7 Others W 65.1 72.1 124.3 142.6 192.1 186.8 272.4 218.7 316.1 318.4 Percentage rate of change 10.8 72.4 14.7 34.7 -2.8 45.8 -19.7 44.7 0.6 Public Utilities 61.4 74.7 97.2 115.4 128.2 171.7 214.6 244.5 217.9 230.8 Percentage rate of change 21.7 30.1 18.7 11.1 33.9 25.0 13.9 -10.9 5.9 Services 43.4 57.4 74.0 81.4 82.7 99.0 143.7 180.6 181.3 251.3 Percentage rate of change 32.3 28.9 10.0 1.6 19.7 45.2 25.7 0.4 38.6 Real Estate 1463.6 513.4 579.3 747.2 977.0 1,186.7 1,466.3 1,758.0 2,094.1 2,137.7 Percentage rate of change 10.7 12.8 29,0 30.7 21.5 23.6 19.9 19.1 2.1 Consumption 222.3 241.8 281.0 351.6 407.3 519.0 673.9 746.3 879.1 903.6 Percentage rate of change 8.8 16.2 25.1 15.8 27.4 29.8 10.7 17.8 2.8 Others / 15.8 27.9 37.9 57.5 6.8 23.2 22.2 29.4 30.0 121.2 Percentage rate of change 76.6 35.8 51.5 -88.2 241.2 -4.3 32.4 2.0 301.0 TOTAL 4A197.4 5,250.2 60277.8 *1. 7,832.2 9a381. 10.2r?.2 11.340.k I. Percentage rate of change T'7 15T '--T7 1 ---w:9 -W7 9.0 77 -.9 1/ The financial institutions included in this table are the same as in the preceding table. The values of the total credit outstanding to the private sector given in this table will differ from the values of total loans and invest- ments outstanding to the private aector in the preceding table for the following reasonsi (i) credit to each other by the financial institutions is included in this table; (ii) the data in this table do not include those invest-. ments by financial institutions for which no breakdown by industry is available. Also, a revision in the composi- tion of the financial institutions which granted these loans was made. The revision pertained onjr to the change. in concept in the composition of the non-bank financial institutions. Additional revision was also made to include "other" loans and to exclude inter-bank transactions of development banks. These include also credits outstanding of private development banks which were classified in the various industry items starting 1965. 2 Includes manufacturing, mining and construction. Including credits to some semi-government institutions which could not be segregated. V Loans to banks and other financial institutions. Also commercial loans by non-bank financial institutions. Loans by non-bank financial institutions which do not fall under the above classification. Starting January 1, 1968, data for commercial banks are based on DER Form No. 1 (Revised January 1, 1968) which ex- cludes credits to public sector under the industry classification. Z/ Starting 1968, data excludes loans, advances, discounts and overdrafts. d/ Includes advances to exports and imports trade which cannot be separated due to revision of form. j/ As of June 30, 1970. Source: Presidential Economic Staff Table6.6 Loans and Investments f the Government Service Insurance §Stem and Social Security System, 1965-1970 (In million pesos) Loans Investments Items Grand Real 1/Lt/ Total Total Estate Consumption Total Government Private 1965 1.1,80.6 936.9 688 248.6 5. 4.0 128.7 Government Service Ins. System 1,060.0 744.9 . 229.5 315. 293.8 21.3 Social Security System 420.6 192.0 172.9 19.1 228.6 121.2 107.4 1966 1 1,133.8 821. 2. 1. 367.9 193. tovernment Service Ins. System 1, j. 879.0 603.0 276.0 2 3r. 275.4 8.i Social Security System 532.7 254.8 218.5 36.3 277.9 92.5 185.4 1967 1,969.4 1,0.1 1.006.5 33.6 529.3 329.9 199.4 Government Service Ins. System 1,371.7 1,0808 702.5 378. 290.9 277.0 13.9 Social Security System 597.7 359.3 304.o 55.3 238.4 52.9 185.5 1968 2,239.2 1.599.9 1152.2 47.7 639.3 376.8 262. Government Service Ins. System 1,V70.5 1,153.3 7714.5 378. 317.2 301.6 15.6 Social Security System 768.7 446.6 377.7 68.9 322.1 75.2 246.9 1969 2,662.1 1. 75.7 1358.5 7.2 786.4 69.9 316. Government Service In. System 1,742.4 1,373.2 946.0 .: 3W2 353.7 . Social Security System 919.7 502.5 411.9 90.6 417.2 116.2 301.0 1970 October 2 938.6 2.141.3 1.465.4 6.9 797.3 8.3 313.0 Government Service Ins. System 18586 1'77.7 1,09.3 . .9 .0 . Social Security System 1,080.0 663.6 45.1 207.5 4 616.4 118.3 298.1 Note: Data for private Insurance companies are not available 1/ Mostly housing loans granted to members; hence all these loans fall under private credits. 2) Mostly salary and policy loans to respective members. 4/ Includes the -110 million 2-year Promissory Notes at 10% interest issued by the Development Bank of the Philippines for matured time deposits and accrued interest with the Social Security System. Source: Central Bank of the Philippines. Table 6.7 Structure of Interest Rates on Savings and Time Deposits of Banks and Other Financial Institutions, 1970 (In percent per anrmm) : Savings ,s Time DepositS Banking Institutions : Deositsw: 180 days 3/_360 days / 3 540 days 2/ Commercial Banks ................ 6% 61) 7% 8% Savings Banks ............. .0.. 6% 6 6 7% 8% Rural Banks .............. . 6% 6 0 7% 8% Development Banks ............... 6% 6 6 7% 8% Savings & Loan Asens. ........... 6% 6 % 7% 8% Cooperative Banks .............. 6% 61A 7% 8% In effect starting April 1969 pursuant to CE Cir. No. 272. In effect starting February 1970 pursuant to CB Ciro No. 292. Structure of Lending Rates of Banks & Other Financial Institutions, 1270 i olanding Rates Financial Institutions (In percent per annum) Commercial banks - Unsecured loans .............................***********, 13-1 Secured loans ,, ..........,,..................... 12 Documentary Import bills or drafts .........************.. 11-12 Savings banks ..................... ..************ 9-12 Rtural banks ..........,...,,......... 12 g Development Bank of the Philippines (DBP) Agricultural loant RA Nos. 1480 & 1085 .................. 4 Others ..........o........ 12 Industrial, real estate & refinancing loans .............. 12 Private Development Banks ................................. 12 Savings & Loan Associations ...., **..................... 12-14b/ Government fervice Insurance System (GSIS) Salary loan 5..*** *****************. Policy loan ** ****** *** ************************ 6 Real estate loan: For members or retirees - 1st 130s000 .............................******* 6 In excess of Y30,000 ........................... 9 For non-embere - Housing, cosmercial & industrial loans .......... 10 Social Security System (SSS) - Real Estate loan - HFC ..................*******7 Direct loan - Y30,000 and below ................ . 6 130,000 and over ................... 8-9 Commercial loan *******************************.. 6-9 Industrial loan ..................................... 10 Salary & Educational loans ........................ 5 Agricultural Credit Administration (ACA) .................... 8 Private Development Corporation of the Philippines (PDCP) ...........o.....e,................. 12 National Investment & Development Corp. (NIDC) o........o... Short-medium and long-term .......................... 11 Demand ...*********............12 Building and Loan Associations - Real Estate loans *................................ 12 Stock loans ............................ 11 Prtrate Insurance Companies Real Estate loans o o...,* ......................... 12 Policy loans .....................7 !/ Per R.A. No. 720. As provided for by Sec. 39 of CB Cir. No. 157 implementing R.A. No. 3779 otherwise known as the Savings & Loan Associations Act (RA No. 3644). Table 7.1 Actual Production for 1968, 1969 and 1970 and Physical Targets of the Agricultural Program FY 1971-1974 (In 000 MT) Commodity 1968 1969 1970 1971 17 19 Food Crops 9,235 9,303 10,667 10,950 11,620 12,342 13,127 Palay 4,561 4,445 5,203 5,510 5,868 6,249 6,655 Corn 1,619 1,733 2,008 2,039 2,202 2,378 2,568 Fruits & nuts 1,372 1373 1,569 1,531 1,618 1,715 1,818 Rootorops 1,305 1,338 1,313 1,392 1,413 1,434 1,456 Vegetables 251 283 294 328 348 369 391 Coffee 43 44 49 52 55 59 63 Sorghum - - - 4 9 15 30 Soybean - - - 2 5 16 34 Others 84 87 84 97 102 107 112 Commerci4 Crops 3,946 3,917 3,843 4,406 4,583 4,718 4,910 Copr 1,542 1,515 1,446 1,286 1,379 1,483 1,590 Desiccated Coconut 56 49 102 100 104 108 112 Sugar (Centrifugal - & Musoovado) 1,658 1,662 2,300 2,398 2,520 2,570 2,610 Molasses 503 504 - 151 550 566 583 600 Abaca 103 106 124 141 143 145 147 Tobaooo-Virginia 17 20 22 24 24 25 25 Tobacco-Native 48 37 39 54 56 58 60 Rubber 14 18 19 17 18 19 20 Others 5 6 7 6 6 6 6 Total Crops 13,181 13,220 14,510 15,356 16,203 17,060 18,037 Forestry (logse)A 4,535 4,976 4,649 4,847 4,944 5,043 5,144 Fishery 1,300 1,034 1,141 1,511 1,599 1,691 1,789 Commercial 559 468 539 645 682 722 764 Fishpond 137 88 89 183 223 268 301 Municipal & Sustenance 611 478 513 684 693 701 725 Livestock on Farm & Non-Fars Population (no. in 000) Cattle 1,990 1,971 2,032 2,210 2,290 2,380 2,470 Carabao 4,580 4,806 4,875 4,920 5,100 5,280 5,470 Poultry (Chicken) 93,310 85,038 77,519 102,500 108,500 113,600 120,760 Hogs 8,820 8,826 8,974 12,440 13,960 15,600 17,470 Slaughtered (no. in 000) Cattle 235 262 271 300 318 Carabao 481 535 554 631 675 Poultry (Chicken) 73,640 82,900 89,200 93,500 101,167 Hogs 7,440 9,380 10,130 10,940 11,817 Dressed Weight (in NT) Cattle 34,720 38,610 40,000 -44,320 46,980 Carabao 85,050 94,560 97,980 111,500 119,190 Poultry (Chicken) 88,370 99,530 107,040 112,150 121,350 Hogs 335,530 422,670 456,480 493,000 532,440 Fresh Milk 9.41/ 145.4 225.1 311.5 Poultry Eggs 95. 112.6 123.9 128.1 137.4 1/ Bank mission estimate. 2/ In million board feet. j/ Program of Production of Animal Protein prepared by the Bureau of Animal Industry, April 1970. SOURCES: Bureau of Agrioultural Economics Four Year Agricultural Development Program Philippine Fishery Commission Table 7.2 Avrage Gr h Rae of Nor idoultural Prodats ( Percentage) Four-Year Actual Growth Rates Projections Development ____ __I_____ ____ ___ Plan FodCos0.6 66.2 'M.," addy) -!1 Corn 4.2 7.2 7.0 8.8 8.0 Fruits and Mite. 10.0 4.2 0.3 5.8 6.0 Rootorops -1.5 -5.3 2.5 1.2 1.5 Vegetables 4.5 2.8 8.7 6.1 6.0 Coffee 4.5 -0.1 7.3 6.4 6.6 Sorgham - - - - 72.2 Soybeans - - - - 127.5 Swort. Crop& 3.9 1.6 5o 51 3.7 epra rIT 17. SO T T1T Desiccated Coconut -0.7 -3.6 -11.7 4.2 3.9 Sugar (centriagal and IbecovadO 3.0 0.8 0.4 7.6 3.8 Molassees 5.1 6.7 0.4 2.7 3.0 Abaca -1.6 -8.3 1.5 1.6 1.14 Tobacco - Virginia -6.7 0.4 14.4 0.8- 1.4 Tobacco - Native 6.0 18.5 -2t.3 14.3 3.6 Fihery (Total) 10.9 12.0 1005 7.6 8.0 Forestry- Lgo 7.7 22.0 4.2 (5.0 2.0 Lamber -0.3 -6.6 - n.d &- n.d. Plywood 15.1 5.2 - f/ nd. n.d. Veneer 26.0 17.1 - n.d. n.d. IUestook Population Cale 3.8 3.5 Carabao 3.9 3.6 Poultry 11.0 9.0 Hogs 10.5 8.5 Other- 1.0 1.0 a/ Bureau of Agricultural Eoonada. S' Presidential. onomic Staff. ; The-Revised Agricultural Development Program F! 1969-73, Presidential &onomic Staff, Agricultura;lPiogram Office, Jan. 1969. 4/ Four-Year Development Plan for the period FY 1971-74. Prepared by IntAftgency ,Comdtthe, March 1970. e/ Timber cut to decelerate by 5.0 percent yearly from a high attained in 1968 and domestic processing of- logs to accelerate from 40 percent in 1969 to 80 percent in 1973. f/ Forestry Statistics show an increase of lumber production from 432,921,000 bd. ft. in 1967/68' to - 620,975,000 bd,. ft. in 1968/69, decline of plywood from 695,034 to 523,8'66 sq. ft. and, of vender a decline froll,205,910 sq. ft. to 627,271 sq. ft. in the same period. n.d. * no data. Table 7.3 Loans Granted and Outstanding to Agriculture by Financial Institutions, 1965-70 (In million Pesos) Gr a-n ted O u.t tan ding Develop- Other Develop- Other End of Rurall/ ment Cowmergl Rura ment 2/ Commerql Periad Total AGLF ACA Banks- Banks Banks- Total AGIF ACA Banks- Banks Banks- 1965 1,429.5 - 10.2 215.5 62.2 619.2 522.h 1,575.1 - 86.6 -167.4 293.3 569.4 458.4 1966 1,615.6 - 16.3 247.4 91.0 665.4 595.5 1,681.h - 88.2 198.5 316.6 630.1 648.0 1967 2,065.1 16.6 31.6 318.3 147.6 815.7 735.3 1,932.6 n.a. 96.7 259.4 374.5 751.8 450.2 1968 2,216.8 15.3 29.6 362.8 158.9 858.2 792.0 2,317.5 15.2 106.7 302.8 430.2 857.7 6ok.9 1969 2,261.1 8.3 23.6 408.5 115.0 903.1 802.6 2,501.8 16.7 106.6 325.6 474.9 923.1 654.9 1970 1,653.3 5.92/ 41.4 370.32/ 59.5-Y 579.2/ 596.89/ 2,588.2 17.5/118.8 380.8 / 481,.04/ 897.87/ 689.3f/ 1/ Mcluding loans granted and outstanding under AGLF. 2/ Data from 1965 to 1967 include credits to semi-government institutions. Starting January 1, 1968 data are based on DER Form No. 1 (Revised January 1, 1968) and exclude credits to public sector. a/ Tentative (January - September 1970). b/ As of September 1970, tentative. c/ January to October 1970. d/ October 31, 1970. e/ January to September 1970. T/ January to June 30, 1970. Source: Presidential Economic Staff, Table 8.1 Met Value Added in Manufacturing by Type of Products 1965 to 1970 (In million pesos at current prices and 1955 constant prices) SIC 1965 1966 1967 1968 1/ 1969V 1970 Major Type of Product Current Constant Current Constant Current Constant Current Constant Current Constant Current Constant Group Prices Prices Prices Prices Prices Prices Prices Prices Prices Prices Prices Prices TDTAL OET VALUE ADDED 3.213 2,209.3 3,4~72 2,318.2 3,832 21.461 4~.251 2,595 4,64.8 2,690 4~.784 2,74~3 Consumer Goods 1,853 1,312.1 1.942 1,311.7 2.296 1.475 2.589 1.580 2,857 1.653 2.831 1,623 20 Food, except beverages 875 582.2 897 541.0 1,123 721 1,262 770 383 8oo 1,356 778 21 Beverages 264 214.6 301 242.7 261 168 274 167 305 177 353 202 22 Tobacco 150 122.0 159 128.2 172 111 204 124 227 131 224 128 23 Textiles 152 105.9 156 106.6 186 119 224 137 251 145 237 136 24 Footwear, other wearing apparel and made-up textile goods 226 157.6 245 167.5 318 204 385 235 415 240 385 221 26 Furniture and fixtures 45 31.4 55 37.6 54 35 55 34 62 36 67 38 28 Printing, publishing and allied products 131 91.4 119 81.3 170 109 172 105 20% 118 195 112 29 Leather, leather pro- ducts and fur products except footwear and other wearing apparel 10 7.0 10 6.8 12 8 13 8 10 6 14 8 Intermediate Goods 1.118 768.9 1.258 863-9 1,212 778 1,330 812 1,423 824 1.575 903 25 Wood, cane and cork products 149 103.9 160 109. 4 175 112 182 111 197 114 214 123 27 Paper and paper products 66 46.0 77 52.6 56 36 75 46 88 51 90 52 30 Robber products 94 65.5 114 79.5 112 72 112 68 126 73 138 79 31 Chemicals and chemical products 292 20.0 349 247.2 305 196 370 226 379 220 420 21 33 Non-metallic mineral products, except products of petro- leum and coal 142 73.6 148 81.5 149 96 162 99 188 19 196 112 35 Metal products except machinery and -ans- part equipmentV 209 145.7 211 164.7 234 150 249 152 251 145 295 169 39 MiscWllaneous mamac- tured productsX 166 129.2 169 129.0 181 116 180 110 196 112 222 127 Mechanical Goods 242 128.3 272 142.6 324 208 332 203 36 213 378 217 36 Machinery, except elec- trical machinery 36 19.1 14 23.1 27 17 23 1L 42 24 4 25 37 Electrical machinery, apparatus, appliances and supplies 117 62.0 125 65.5 155 100 154 9h 165 96 176 101 38 Transport equipment 89 47.2 103 54.0 12 91 155 95 161 93 158 91 1/ Revised estimates as of April 15, 1970. E/ Preliminary estimatis as of A,ril !5, 1970. 3/ Advance estimates as of December 16, 1970 based on trends established by available figures tp to the end of third quarter 1970. E/ Includes basic metal products (SIC 34). T/ Includes products of petroleum and coal (SIC 32). Table 8.2 Value Agdded in. Mining, and. Percentage. Distribution, 1964-70 QIn- million Pesos, at current prices and percentages) Net Value.Added Percentage Distribution (At current. prices in,milliinmpesos). 1964 1965 1966 1967' 19681 1969? 19703 1964 1965 1966 1967 1968 1969 1970 TOTAL NET VAUE ADDED 188 235 311 346 419 533 900 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Coal Mining 2.4 1.8 1 1 1 1 1 1.2 0.8 0.3 0.3 0.2 0.2 0.1 Iron Ore Mining 22.6 29.1 31 31 26 29 34 12.0 12.4 10.0 8.9 6.2 5.4 3.8 Chromium. Ore K-ning 16.8 20.6 23 17 17 19 30 8.9 8.8 7.4 4.9 4.1 3.6 3.3 Copper Mining. 80.2 101.9 174 192 258 361 676 42.7 43.3 55.9 55.5 61.6 67.7 75.1 Gold Mining 44.9 45.5 49 57 59 65 70 23.9 19.4 15.8 16.5 14.1 12.2 7.8 Other Metal Mining, n.e.c. 6.3 10.4 10 12 16 13 19 3.4 4.4 3.2 3.5 3.8 2.4 2.1 Stone Quarrying, Clay and Sand Pits 12.0 16.2 17 27 33 36 6.4 6.9 5.5 7.8 7.9 6.8 ) Other Non-Metallic Mining 70 7.8 & Quarrying, n.e.c. 2.8 9.5 6 9 9 9 ) 1.5 4.0 1.9 2.6 2.1 1.7 ) 1/ Revised estimates as of April 15, 1970, 2/ Preliminary estimates asi of' April 15, 1970. 3/ Advance estimates as of December 16, 1970. based on trends established by available figures, up to the end of third quarter 1970. Source: OSCAS, NEC. Table 8.3 Mining Production, 1966-70 (Value in thousarxi pesos at current prices) 1/ Unit of 1966 1967 1968 1969 1970/ Item Measure Quantity Value Quantity Value QuaValue Quantity Value Quantity Value Total 43 5148 301 9,0 ,5 2,0 7,4 9144 366 l' 491,56 Gold Fine ounce 653,546 6:257 490,557 9O i5h1 527,355 1i292 571,5 1 240 582,177 123,-14U Silver I n 1,162,889 5,771 1,368,976 7,533 1,574,782 13,256 1,561,312 10,502 1,648,444 15,011 Base Metals: Iron ore Metric ton 1,475,187 56,258 1,477,751 56,209 1,353,218 47,18 1,561,466 53,684 1,837,126 80,679 Chromite ore l n 560,120 462,-6h5 419,823 31,467 439,177 31,876 469,431 34,186 567,432 62,347 Copper (metal) 73,758 316,996 85,846 349,533 110,275 469,639 131,426 657,504 162,696 1,165,443 Manganese ore f t 56,093 3,987 80,189 5,652 66,043 4,644 20,002 1,499 6,671 859 Lead (metal) n n 92 121 89 108 84 105 67 79 14 24 Zinc (metal) it it 1,648 2,087 1,485 1,792 2,242 1,894 3,286 4,080 3,308 4,652 Quicksilver (metal) Flask 2,443 3,958 2,611 4,803 3,544 7,178 3,478 6,586 4,289 9,909 Non-metallics: Coal Metric ton 89,610 1,757 69,753 1,616 32,150 898 53,341 1,157 48,007 1,140 Sand and gravel Cubic meter 1,267,694 6,527 2,683,917 12,920 3,323,870 18,234 4,307,832 22,571 n.a. n.a. Salt Cavan 3,653,700 16,021 2,311,760 12,531 4,338,300 17,453 4,623,740 28,684 4,438,800 27,946 Silica Metric ton 234,872 2,925 311,440 3,478 429,226 4,190 637,816 5,595 n.a. n.a. 1/ Preliminary estimates Source: Bureau of Mines Table 8.4 Indices of the Physical Volume of Manufacturing Production, 1962-70 (1955 = 100) January - June Percent item 1962 1963 1964 1965 1966 1967 1968 1969 1969 :970 Change Manufactures 169.7 180.5 195.5 200.9 218.6 226.6 247.7 256.3 256.8 254.0 -1.1 Non-durable manufactures 165.6 174.9 186.8 193.3 211.6 217.7 237.9 246.0 245.5 247.6 0.9 - Manufactured food products, except beverages 172.14 177.4 184.9 201.1 209.7 224.3 227.1 236.5 240.0 232.2 -3.2 Slaughtering, preparation and preservation of meat 284.8 519.0 573.9 727.3 71h.2 91.8 1,234.8 1,048.3 1,032.3 1,031.8 -0.1 Dairy products 168.3 184.3 210.6 175.7 174.5 178.2 213.2 257.5 268.9 295.3 9.8 Processed fruits and vegetables 184.8 169.9 172.7 252.1 227.6 237.1 242.6 262.7 241.0 251.2 4.6 Processed fish products 192.2 197.6 196.1 193.5 257.4 281.9 269.6 241.3 223.8 202.4 -9.6 Bakery products 141.3 166.6 161.8 154.5 151.9 165.9 172.3 197.7 197.7 145.7 -26.3 Cocoa chocolate, coffee, sugar and confectionery 118.4 131.6 151.0 179.3 188.9 201.1 192.3 203.3 230.5 231.6 0.5 Miscellaneous food preparations 195.2 188.5 191.0 194.9 212.2 220.4 217.8 225.2 224.3 214.0 -4.6 - Beverages 177.4 205.0 217.9 226.6 249.14 251.2 323.3 340.2 339.9 362.0 6.5 Distilled spirits 174.3 221.1 267.9 315.0 398.3 421.4 490.7 5314.6 523.8 626.o 19.5 Wine 125.4 133.8 153.6 104.3 104.0 101.5 131.7 149.9 154.2 183.2 18.8 Beer 246.8 323.9 346.1 380.2 384.6 385.6 525.4 528.4 531.1 483.5 -9.0 Soft drinks 133.7 124.7 123.4 110.2 133.4 131.3 160.5 181.1 180.6 232.6 28.8 - Tobacco ppducts 123.5 120.9 146.2 159.6 187.1 181.1 210.3 193.3 207.4 194.1 -6.4 - Textiles / 296.2 321.7 338.0 328.9 343.4 3144.0 332.4 332.6 323.9 323.2 -0.2 - Footwear, wearing apparel and other made-up textile goods 50.14 51.0 49.5 51.0 51.1 51.2 50.9 49.3 40.9 51.8 26.6 Footwear, except rubber 58.1 76.4 64.9 65.1 68.14 73.9 72.0 75.2 47.8 85.0 77.8 Wearing apparel 32.7 37.3 314.8 40.2 40.1 37.8 38.0 314.3 33.0 34.9 5.8 Other made-up textile goods 443.5 159.3 285.5 197.9 167.5 180.7 182.5 187.14 184.1 166.8 -9.4 - Paper products 211.0 250.7 2514.1 254.4 263.7 269.2 227.3 226.4 228.6 210.9 -7.7 Pulp paper and paper board 209.9 301.8 239.2 270.0 253.2 272.1 247.8 244.2 260.1 196.4 -24.5 Manufactured articles of paper and paper board 211.4 232.5 259.5 248.8 267.5 268.2 220.1 220.1 217.4 216.1 -0.6 Printing, publishing and allied industries 103.6 83.4 77.7 75.9 80.6 78.8 72.3 78.5 72.0 94.7 31.5 Leather products except footwear 154.5 159.0 158.9 147.2 131.5 127.9 122.9 1145.1 106.6 156.6 46.9 Rubber pro cts 9 222.3 229.5 254.6 268.1 265.2 323.6 392.0 407.5 441.2 373.2 -15.14 Chemicalsop 155.4 167.9 173.8 187.9 196.1 199.4 197.0 207.9 198.14 213.0 7.3 Manufacture of miscellaneous products of petroleum and coal 175.8 173.0 181.8 161.0 208.14 231.5 282.7 328.14 3114.7 327.0 3.9 Miscellaneous non-durable manufactures 133.4 75.6 1014.1 84.0 102.2 103.6 117.4 114.8 136.3 82.9 -39.? Durable manufactures 189.3 207.5 237.3 237.14 251.9 269.1 294.7 305.1 310.8 284.3 -8.5 - Wood and cork manufactures, except furniture and fixtures 121.7 167.9 142.1 151.2 188.3 ?14.1 277.1 234.1 273.8 224.7 -17.9 Furniture and fixtures 120.3 131.7 170.8 1514.1 1114.1 1145.6 1214.3 100.8 122.3 64.6 -47.2 - Non-metallic mineral products 204.8 210.0 238.8 269.2 287.9 297.3 326.4 329.9 329.2 3140.3 3.4 Clay and cement products 267.2 284.9 297.9 340.4 1414.8 1427.0 469.9 496.2 1475.0 531.2 11.8 Concrete products 340.7 385.5 429.5 436.9 789.6 725.9 740.9 718.1 733.8 750.3 2.2 Glasswares and glass containers 195.2 180.4 194.9 253.6 231.14 252.0 326.0 298.8 278.8 3140.9 22.3 Plate and sheet glass products 28.1 27.5 27.0 19.0 23.8 19.7 144.9 58.6 35.9 15.3 -57.14 Cement 205.2 214.8 249.8 271.8 281.9 289.8 299.9 314.1 318.0 313.9 -1.3 Asbestos products 107.9 120.2 166.7 161.5 131.5 194.1 20)4.9 295 .3 h05.2 ?.i: -1i2 Limestone products 92.3 122.2 101.4 263.2 572.3 635.3 1,224.8 704.7 751.2 842.2 12.1 - Metal products, except machinery 272.5 269.7 304.2 330.2 347.2 347.5 335.9 371.5 354.7 314.3 -11.4 - Manufacture of machinery, except electrical machinery 122.5 121.8 178.0 97.3 151.1 181.9 175.2 103.2 98.7 100.7 2.0 - Electrical machinery, apparatus appliances and supplies 273.4 316.9 356.7 323.6 340.14 1412.5 437.5 501.1 507.14 522.5 3.0 - Manufacture of transport equipment 97.3 142.7 196.1 145.0 154.8 173.4 234.1 229.2 251.7 188.0 -25.3 - Miscellaneous durable manufactures 119.5 92.3 57.1 50.9 42.6 59.1 54.3 83.0 78.5 83.9 6.9 1/ Includes floor covering. 2/ Includes rubber shoes. I/ Includes fertilizers. Source: Cooperating government agencies and private firms. Table 8.5 Capacity Utilization in Selected Manufacturing Industries 1966 to 1970 1966 1967 1968 1969 1970 FERTILIZERS (Metric tons) Production Capacity 727,000 816,600 816,600 816,600 816,600 Actual Production 140,769 286,7751 225,72h3/ 266,025 203,5394 CEMENT TMIlion bags of 50 kilos each) Production Capacity 60.72 73.92 91.92 126.72 110.5 Actual Production 39.36 49.75 61.63 101.16 57.77/ IRCN & STEEL (Metric tons) Production Capacity 759,200 847,200 1,302,760 1,339,000 n.a. Actual Production 329,668 356,863 366,416 672,479 n.a. GLASS & GLASS CCNTAINERS (MeT c tons)-- Production Capacity - - - 199,509 n.a. Actual Production 122,366 129,000 137,500 146,000 n.a. SUGAR TIT short tons) Production Capacity - - - 1.760 3.029 Actual Production 1.538 1.724 1.750 1.900 2.124 PAINT (Thousand Gallons) Production Capacity - - . - - Actual Production 6,674.638 8,464.724 8,251.850 6,362.000 3,793.0- BASIC CHEMICALS (Metric tons) Production Capacity 1,028,900 1,028,900 1,028,900 n.a. n.a Actual ProductionL 447,387 545,998 192,074 186,670 204,059 TEXTILES TThousand yards) Production Capacity 400,900 n.a. n.a. 482,680 n.a. 5 Actual Production/ 159,704 185,146 216,415 226,529 192,006- 1/ Excluding ESFAC f/ Excluding General 3/ Includes only caustic soda and sulfuric acid 1968-1970 5/ January-Feptember only 9/ January-November only 6/ Includes only rayon and cotton fabrics 7/ Million bags of 94 lbs. each SOuces Presidential Economic Staff. Table 8.6 Indices of aployment in Manufacturing and Mining 1962-1970 MANU FA C TUR ING 1/ 1962 1963 1964 1965 1966 1967 1968 1969 1970 Food 104.4 110.2 115.8 124.1 121.9 120.8 125.6 125.6 128.6 Beverages 114.8 114.8 118.9 121.8 128.5 136.6 138.8 143.4 149.2 Tobacco Manufactures 126.3 124.8 135.5 140.9 141.8 158.5 168.1 186.4 181.2 Textiles 198.7 211.3 211.0 213.5 211.4 214.9 222.5 235.4 236.4 Footwear & Wearing 97.0 102.5 104.4 98.9 94.3 95.1 104.7 111.8 119.3 Wood and Cork 96.0 97.4 100.4 103.2 105.4 107.1 106.6 103.5 94.1 Furniture & Fixtures 90.4 96.1 96.3 94.1 99.4 100.3 96.5 98.4 100.2 Paper & Paper Products 103.4 103.3 98.6 95.5 92.2 93.5 94.9 99.0 100.5 Printing and Publishing 131.8 128.0 129.2 126.7 121.3 121.7 121.7 118.4 117.5 Leather & Products 14-1.7 132.0 131.4 135.0 127.1 129.8 129.7 147.8 154.1 Rubber Products 137.3 131.2 125.6 130.6 134.3 135.6 121.5 111.4 114.6 Chemical & Products 119.8 122.6 119.6 122.6 125.4 126.0 122.1 123.1 118.0 Non-Metallic Mineral Products 111.0 106.7 104.8 104.5 97.2 102.7 102.0 103.0 104.3 Metal Products 215.6 215.0 184.4 185.9 179.1 152.5 156.1 153.0 154.4 Machinery 95.6 98.8 102.4 103.0 92.1 107.9 127.6 108.8 112.6 Electrical Machinery 382.4 354.0 250.0 192.1 177.9 159.2 101.4 80.9 87..8 Transportation Equipment 86.6 86.9 89.4 88.2 84.5 85.3 97.7 94.8 94.2 Others 137.7 127.3 125.1 127.1 120.6 111.1 117.,6 127.6 130.7 118.8 121.3 123.3 127.0 125.6 127.2 130.6 132.5 132.7 MINING Coal 58.8 59.9 58.4 42.3 38.5 44.? 47.0 42.1 43.3 Chromite 145.8 150.5 144.3 133.4 155.2 169.5 206.5 180.0 219..4 Gold 75.6 75.2 77.4 83.3 83.3 83.1 82.5 80.7 78.1 Iron Ore 68.2 79.9 75.4 87.5 84.8 82.2 7.2.5 72.2 70.2 Copper 106.0 109.2 113.4 116.1 120.2 129.0 144.9 148.4 163.1 Manganese 61.9 18.2 22.7 13.8 6.3 2.9 ?.9 2.9 2.9 Crude Petrol & Natural Gas .71.4 91.7 94.3 25.0 17.1 17.1 17.1 17.1 17.1 Non-Metallic 56.7 31.3 30.2 47.2 60.0 61.2 62.7 63.6 59.2 76.5 77.4 77.6 83.6 84.7 85.3 85.4 83.5 83.8 1/ Jnuary to.September average ;urce: Central Bank of the Philippines. Table 8.7 Actual and Projected Value Added in Manufacturin%, 1968 and 1974 (In million pesos aT 1968 prices) ProJected Projected rate Projected value Value Estimated of annual value added added elas- growth 2/ added 1974 at Category 1968 ticity 1/ percent 1974 1967 prices Total Manufacturiny 4,147 5.13 5,6o 59443 Consumer Goods 2309 5.19 3,136 39048 Food, except beverages 1,072 0.89 5.28 1,460 1,419 Beverages 377 1.1.5 5.80 529 514 Tobacco 200 1.17 5.84 281 273 Textiles 180 0.70 4.90 240 233 Footwear, other wearing apparel and made-up textile goods 268 0.43 4.36 346 336 Furniture and fixtures 60 0.41 4.32 77 75 Printing, publishing & allied products 142 0.88 5.26 193 188 leather, leather prod. and fur products, except footwear & other wearing apparel 10 0.00 0 10 10 Intermediate oods 1524 5.06 21043 1,985 Wood, cane and cork, & products 208 1.36 6.22 298 290 Paper and paper prod. 95 1.06, 5.62 131 127 Rubber products 135 0.84 5.18 183 178 Chemicals & chem. Prod. 419 0.91 5.32 572 556 Non-nmtallic mineral prod. except products of petroleum & coal 188 1.23 5.96 214 208 Metal prod., except machi- nery & transport equip. 265 0.45 4.40 343 333 Miscellaneous manu. prods. 214 1.21 5.92 302 293 Capital Goods 314 5.05 422 410 Machinery, except electri- cal machinery 54 1.14 5.78 76 74 Electrical machinery, apparatus, appliances and supplies 132 0.25 4.00 167 162 Transport equipent 128 1.10 5.70 179. 171 { Proportionate change in value added divided by propertionate change in gross national product during 1966-68. 2/ Calculated by the formulas d-p+ir , where d - projected annual growth rate; p - expc3ted rate of population growth (3.5 percent); i - expected annual rate of increase in per capita gross national product (2 percent); f - elasticity in relation to gross national product. Sources Calculations based on available data. Table 8.8 Estimated IMport.Dependency of Manufacturing Suppliesq 1963 - 1968 ( I*orts as percent of total supplies ) 19631 614 19 1966 1967 1 .Total Manufacturing 4. 4 51.9 Consumer Goods 25.9 27.4 29.6 28.4 31.4 28.9 Food 30.2 34.4 0.9 34.8 39.1 32.6 Beverages 1.5 1.7 2.2 1.3 i.8 1.6 Tobacco 4.3 2.2 2.6 6.5 9.4 i2.3 Textiles 52.9 51.4 49.8 62.1 58.5 66.9 Footwear, lothbr wearing apparel and madi-p textile gbods 4.2 6.9 4.6 3.9 1.5 1.5 Furniture and fi2tures 17.3 17.3 11.8 11.3 -14.5 17.8 Printing.,publishing and allied products 0 0 0 0 0 0 Leather,,leather products and fur products 20.0 35.7 28.6 28.6 31.3 33.3 Intermediate (Goodi 50.0 55.0 53.6 52.5 514.6 54.3 Wood,cane and cork 2.0 3.2 3.2 2.4 i.7 1.4 Papet and paper pioducts 56.2 61.8 58.2 58.4 59.4 56.6 Rubber products 27.9 32.1 29.3 29.2 26.2 24.2 Chemicals and cheidcal products 68.8 70.9 68.0 65.7 67.2 68.0 Non-metallic iineral ;products 21.5 25.6 20.7 22.5 22.9 19.7 e&tal products, except mdachinMi;y and transpoft V'fipmefftn 6i.o 66.0 64.0 62.9 66.2 67.4 kiel,1nbon-s manufactuked :ye'o7ucts 28.2 37.2 42.0 40.7 0.4 42.0 oG!t OR.Go8ds 714.0 80.1 81.6 81.0 4.3 81.6 khfehinery except electrical iachinery 92.1 93.7 93.9 93.1 95;0 94.5 -EIctrical machinery,apparatu,s :pliances and suplies 48.7 58.3 61.3 52.8 57.5 64.1 TFansport equipinht 66.7 76.5 79.2 80.6 8i19 81.4 NAo': Total su.ply rer6sebts domestic value added plus imports of corresponding category. 1/ Includes products of pdtoleum and coal. Soikr&6: Calculated ffom information submitted by the National EconobMic Council, and Central Bank of the Philippines. ТаЫе 8•9 Investп�ent Re9ulremeлts of Proiecta Approved Ьу 1he Воагд of Investments from Ju1y 1, 19Ь8 to Dec. Э1, 1969 Imported Fдulpment Im.estment 'Pota1 Tota1 Imported ав ретсепt of ТоЬа1 рег- lerson inveвtmaлt �gilnmertt �qulpment Tota1 Invaat. Totn1 Еаи1д. �i1_oyment �elг�loYSгSI.. Tota1 ManuTactur]п 2 1 2. 1,77ь.Эы 1 Ь .б �.�}1 Q�} 2 721 "'� Сопеитв г ооодв 22и.ЬЧ 1�! 3 12 .1о '� 1.2 1о ы2 г� .1 г� Llvestocк о.7о U.)7 о.37 52.Ч �oU.o 3ы 1ы.1г вапапав 4•зз 1.7ь о.9ь 2г.г 54•5 езz s: г я]се 10.ЧЧ 10.В6 10.86 98.8 100.0 j11 ?5•: Магlпе producLs 1Э0•44 10Э•5Э Ь8.Ь4 52•Ь ЬЬ•Э 4,2Э6 Эи•ы Саега va etaroh 1.71 0.81 0.6Э ЭЬ•8 77•8 б84 I•'% Processed coconut 14.13 8.81 5•17 ЭЬ•Ь 58•7 г,275 6•г соглвсагсn Эь.4о Э1.94 ц.чб би.з Ье.е ь1и ыы.ы Procesaed food 12.05 9.38 Ч.15 75•9 97•5 410 2�•1� 71г C1oLhing & Footнear Footнear 9.Ч4 6.86 6.36 64•0 92•7 1,U86 у.:' Intermedlste Goode 1 В. 78.74 1'> U. 1 22.2 81� �Т 1 76 L27.'t 25 Wood, Cane & Cark, excepL furnlture яатlе (1nte�raLed) 18.чз 17.ыы 17.88 ч4•5 1ои.о ги5 чг.+ Fпrest products (plywod, veneer, etc•) 134•91 ].1ы.86 102.U8 76.7 85•Ч ��.556 27•7 27 Yapor апд Рарвт Producte Ри1р апд Рарег 308.и7 256.71 256.71 8Э.Э 10и.и 1,21(! ?5Э.г1 Э1 Chemlcala Industrlal сhетlсаlв 7Ч•72 74•Э7 70.1о ы7.9 93•3 ыЭ7 95.г F1ne chemicalв 1U.14 8.В0 8.8U 86.8 100.U 5 2,028.и Actlvated сагЬол 1.ЭЬ 1.17 1.17 86.0 100.0 29 4Ч.�i Coconut oi1 22•U9 19.11 17.24 78.0 90.2 г03 .�оы.б Ant]ьlotlcs Ь.Эо 5.оо 5.оо 79•4 1ао.о гг2 ze.1, Synthetlc bags 22.89 19•58 19.44 84•9 99•Э ],и1о гг.7 32 Petroleum Products l.ubricating о11 99•Ь2 99•Ь2 99•Ь2 10o.U 1o0.U 1ыи S53•L 33 Non-meta111c Мlпнгаlв Сеrатlсв 12.40 11.62 11.19 90.4 9Ь•3 486 2.6 C1aes ргодисt;з 41.54 28.95 28.22 67•9 97•5 764 5L•L D]мегнаге •SS •55 •37 Ь7•Э Ь7•Э 32 17.2 34 Meta1 ManufacWres Aluminum, атеlLвд 77.Ы 58.89 44•85 57•8 76.5 Э7г 207•5 Рг]mary aLee1 486.Оо 414.9о 41L.90 85.4 1оо.о 615 ;г�о.г Сп1д-гоllад etrlpe елд co11s 322.о8 241.29 241.29 74•9 1оо.о 917 з51.2 иlckot ]85.86 17U.67 141.12 75•9 82.7 1,45Ь i.г2.7 Э5 MeLu1 Рrпдгюtе oxcept тnаМlплгу Mor.a1 prnduot@ k елкlпоог�г�� 4ы.ь7 4z.4ь 1,z.z5 86.ы 99.s l,ы�� 9ч.�, l г1 nпп гидrе Capltal боодв 4J.50 1� 11. 1 26.U 'J�.2 2,4G8 1�Ь ЭЬ Mach]nery k Cap.ltal Equlpment 8.56 7.11 7.07 В2.Ь 9Ч.4 546 1Э._Э Э'Г Electrlcal Equlpment Communlcatlona equlpmant •4U .40 .4о 100.U 100.0 Ь79 .б кlеоtiгlсаl equlpmeпt 8.о4 4.1z з•е4 47•8 9Э.2 !4з 5ь.г Э8 Tranaport Byulpment 2Ь•SU - - - - 1,000 26.� 9аигсег Elaborated Лкr�т data submltted by the Воагд о1 Iлveatments. Table 8.10 Fourth Investment Priorities Plan of the Board of Investments- Investment Requirements, Value of Output, and Employment (In million pesos) MANU FACTURING Investment Investment Requirements Per Person Capital Value of Ehploy- Employed Total Equipment Others Output ment 1/ (thou. pesos) TOTAL MANUFACTURING 4,560.71 3,390.07 1,170.64 2,561.15 19 288 236.5 CONSUMER GOODS 69.75 36.92 32.83 52.70 1,115 62.6 Food 69.75 36.92 32.83 52.70 1,115 62.6 Fruit & vegetables 7.65 6.09 1.36 3.00 46 161.9 Tomato paste .67 .46 .21 .21 10 67.0 Processed fish 1.45 .75 .70 4.42 50 29.0 Dairy products 1.61 .96 .65 2.41 20 80.5 Agar-agar 4.30 2.89 1.41 2.76 19 226.3 Dextrose 3.16 1.77 1.39 .99 10 316.0 Cattle 3.05 .19 2.85 .53 8 381.2 Fish (deep sea) 3.26 2.83 .43 1.78 76 42.9 Fish (inland) 1.67 .99 .68 1.30 33 50.6 Hogs 2.16 .12 2.04 2.30 11 196. Poultry: Meat .13 .02 .11 .34 7 18.6 Eggs .19 .02 .17 .51 9 21.1 Chicks .63 .13 .50 .79 13 48.5 Shrimps: Deep sea 3.99 3.14 .85 2.46 109 36.6 Inland 1.67 .99 .68 1.33 33 5.1 Processed grain 4.90 3.90 1.00 8.42 66 74.2 Rice 13.90 7.48 6.42 11.05 186 74.7 Corn 2.90 .46 2.45 1.10 109 26.6 Soybeans 4.03 1.14 2.89 2.32 112 36.0 Peanuts 4.60 1.45 3.15 3.29 112 41.1 Sorghum 4.03 1.14 2.89 1.39 112 36.0 INTERMEDIATE GOODS 4,352.26 3,266.06 1,086.20 2,292.01 11,700 372.0 Wood, cane and cork furniture 132.05 106.72 25.33 125.91 2,208 59.8 Ramie 30.00 27.00 3.00 31.00 1,316 22.8 Wood chips 1.71 .88 .83 1.08 47 36.4 Plywood 15.46 11.57 3.89 25.14 299 51.7 Veneer 7.37 5.73 1.64 11,93 133 55.4 Tree farming 3.91 3.08 .83 1.76 94 41.6 Coated board 63.75 50.73 13.02 43.20 125 510.0 Particle board 4.61 3.70 .91 4.69 40 115.2 Lumber products 5.24 4.03 1.21 7.11 154 34.0 Table 8.10 Page 2 (contI d) MANU FAC TURING Investment Investment Requirements Per Person Capital Value of Employ1/ Employed Total Equipnt Others Output ment -(thou. pesos) Paper and paper products 466.48 353.80 112.68 171.06 1,334 349.7 Pulp and paper 156.00 112.00 44.00 60.00 570 273.7 Long-fiber pulp 254.00 198.00 56.00 84.15' 640 396.9 Fiber board 56.48 43.80 12.68 26.91 124 455.5 Chemicals 1,704.86 1,326.58 378.28 1,153.35 3,642 468.1 Palm oil 6.17 2.70 3.47 6.99 82 75.2 Lumbang oil 6.31 4.20 2.11 10.52 76 83.0 Activated carbon 5.48 3.66 1.82 3.17 70 78.3 Coconut oil 12.81 7.89 4.92 45.34 24 533.8 Rice bran oil 7.74 5.39 2.35 2.h9 33 234.5 Polystyrene resins 28.27 21.04 7.23 33.04 160 176.7 Polyvinyl alcohol resins 11.00 7.50 3.50 18.oo 70 157.1 Polyvinyl chloride resins 14.97 9.65 5.32 28.18 101 148.2 Nylon fibers 43.56 34.29 9.27 28.36 165 264.0 Rayon fibers 345.57 283.55 62.02 123.68 1,072 322.4 Benzene hexachloride (6%) 9.00 7.40 1.60 7.92 88 102.3 Chemical gypsum .46 .29 .17 1.50 29 15.9 Tetracyclines 8.50 3.60 4.90 8.40 82 103.6 Streptomycins 8.07 3.17 4.90 8.40 82 98.4 Penicillins 8.07 3.17 4.90 8.40 82 98.4 Petrochemical complex 1,177.00 922.27 254.73 787.24 1,240 949.2 fiberglass-reinforced plastic pipes and fittings 2.32 .25 2.07 4.72 34 68.2 Industrial salt 4.50 3.00 1.50 6.00 76 59.2 Edible salt 5.06 3.56 1.50 21.00 76 66.6 Non-metallic mineral products, except products of petroleum and coal 15.70 10.39 5.31 13.86 176 89.2 Asbestos .75 .55 .20 2.16 65 11.5 Refractories 14.95 9.84 5.11 11.70 111 134.7 Metal manufacture 1,901.72 1,370.36 531.36 683.06 3,916 485.6 Primary steel 783.00 384.00 399.00 363.19 2,000 391.5 Ferro-alloy 8.50 8.20 .30 6.90 119 71.4 Copper metal 126.80 123.36 3.44 30.00 488 389.7 Nickel, metal & alloy 977.40 852.00 125.40 274.48 1,200 814.5 Special & alloy steel 1.87 .82 1.05 3.00 63 29.7 API pipes 4.15 1.98 2.17 5.49 46 90.2 Table 8.10 Page 3 (cont'd) Investment Investment Requirements Per Person Capital Value of Employ-, Eployed Total Equipment Others Output ment (thou. pesos Metal products, except machinery & transport equipment 30.45 18.21 12.24 39.77 174 17..0 Dinnerware 3.20 2.80 .40 4.50 67 47.8 High-carbon steel wire 6.82 3.37 3.45 13.52 41 166.3 Copper tubes 16.28 10.06 6.22 21.75 66 246.7 Metallurgical coke 101.00 80.00 21.00 105.00 250 404.0 CAPITAL GOODS 138.70 87.09 51.61 216.44 6,473 21. Machinery, except electrical 49.43 31.10 18.33 62.38 1,484 33.3 Pliers and wrenches 3.05 2.09 .96 4.90 60 50.8 Shapers 3.78 2.48 1.30 4.33 63 60.o Lathes 5.00 3.06 1.94 6.00 130 38.5 Drill presses 1.87 .96 .91 1.80 51 36.7 Fishing winches 1.57 .49 1.08 4.50 50 31.4 Band saws 2.13 1.31 .82 3.24 95 22.4 Carbide-tipped tools 1.18 .66 .52 1.95 36 32.8 Platform scales .95 .44 .51 .82 18 52.8 Pumps .87 .44 .43 .99 37 23.5 Palay threshers .75 .20 .55 1.00 54 13.9 Steam boilers 2.34 .92 1.42 4.20 51 47.8 Diesel engine 1.63 .99 .64 3.80 183 19.6 High HP diesel engine 8.29 6.36 1.93 4.45 147 56.4 Shaft bearing products 1.61 .75 .86 1.08 31 51L.9 Disc plows, -disc harrows & rotb tillers .80 .49 .31 1.51 34 23.5 Grain dryers 1.53 .36 1.17 3.50 58 26.4 Small gasoline engines 9.86 7.35 2.51 12.27 286 34.5 Files 2.22 1.75 .47 2.0 100 22.2 Electrical machinery, apparatus, appliances and supplies 34.19 24.71-. 9.48 46.31 907 37.7 Electric drill 2.07 1.04 1.03 3.00 50 41.4 Electric grinders 2.22 1.04 1.18 3.93 32 69.4 Porcelain insulators 6.96 6.61 .35 3.30 75 92.8 Electric motors 7.70 5.10 2.60 3.00 250 30.8 Kilowatt hour meters .50 .29 .21 1.46 25 20.0 Power transformers 2.39 2.04 .35 1.53 75 15.6 Stalpeth 6.50 4.12 2.38 17.24 119 54.6 Flashlights 3.59 3.00 .59 6.60 97 37.0 Circuit breaker 1.09 .69 .40 2.33 134 8.1 Magnetic starters 1.17 .78 .39 3.92 50 23.4 Table 8.10 Page 4 (cont'd) Investment Investment Requirements Per Person Capital Value of Employ Employed Total Equipment Others Output ment (thou. pesos) .MANU FACTURI NG Transport equipment 55.08 31.28 23.80 107.75 4,082 13.5 Barges & tugboats) Fishing boats )- 5.30 3.00 2.30 7.50 250 21.2 Inter-island ships 14.00 6.90 7.10 22.25 1,550 9.0 Ocean-going ships 24.00 18.00 6.00 40.00 2,150 11.2 Motorcycles 11.78 3.38 8.40 38.00 132 178.4 MINI NG TOTAL MINING 143.53 122.47 21.06 80.39 2,838 .50.6 Coal 4.83 4.32 .50 5.75 405, 11.9 Natural gas 8.00 6.00 2.00 2.60 200 40.0 Sulphur 82.20 76.20 6.00 27.00 500 165.6 Rock asphalt .77 .52 .25 .60 60 12.8 Perlite 2.15 1.17 .98 4.20 71 30.3 Clay .22 .92 .30 3'.00 35 34.8 Iron ore 6.00 1.81 4.19 10.00 500 12.0 Chromite ore 12.44 11.44 1.00 5.76 341 35.8 Copper ore 24.49 19.02 5.47 17.16 620 39.5 Mercury 1.44 1.07 .37 4.32 100 14.4 TOTAL MANUFACTURING AND MINING 4l704.24 3512.54 1,191.70 2, 126 212.6 Employment figures,include professional and supervisory emp16y es, skilled, semi-skilled, and unskilled workers. Source:. Elaborated from data in the Third Investment Priorities P!anf of the Board of Investments. Table 8.11 Financing of Manufacturing Industry (Source of finance for fixed and working capital) (In rllion pesos) Preliminary category 1963/64 1964/65 1965/66 1966/67 1967/68 1968/69 Public Institutions DBP Loans approved - FY /1 170.31 85.43 33.86 182.92 228.88 154.43 Guarantees approved 72 - FY n.a. 433.97 244.49 251.08 792.79 1,083.41 Guarantees availed of - FY n.a. 37.22 107.63 30.42 443.67 392.46 Investments in preferred shares 3- FY 0 0 0 158.78 18.80 23.23 N.I.D.C. Loans approved CY 1964-69 16.49 45.75 0 0.08 5.05 3.96 Equity CY 0.80 17.25 11.00 3.39 2.64 17.62 Guarantees approved CY - 8.26 4.89 60.56 50.62 24.88 Guarantees availed of n.a. n.a. n.a. n.a. n.a. n.a. G.S.I.S. Loans n.a. n.a. n.a. n.a. n.a. n.a. Stocks & bonds CY 1964-69 9.62 7.5o 5.92 5.18 10.69 21.25 S.S.S. Loans n.a. n.a. n.a. n.a. n.a. n.a. Stocks & bonds n.a. n.a. n.a. n.a. n.a. n.a. Commercial Banks , CY 1964-69 Loans outstanding /4 1,226.8 1,26.4 1,339.8 1,394.4 1,473.3 1,481.3 /6 Loans granted /5 2,092.9 2,238.3 2,287.8 2,615.4 2,963.6 979.7 /7 /1 Loans approved are loans that can be availed of 7 About 70% went to manufacturing industries 7 97% of these investments went to the manufacturing sector Loans outstanding represent the unpaid balances of the loans granted SLoans-are-granted.when-an-actual availment-or release .of a loan has-been made to.the borrower As of Jine 0 , 196 /7 January to March. Source: Presidential Economic ftlff. Table 8.12 Paid in Capital of Newly Re ard Lnsa Oraiz (Thousand Pesos) Total Fill2inos Chinese Americans Other 1966 387,967 354,292 27.99 -4L66 L.61 Agriculture 6,668 6,483 11 150 2L Forestry, fishing and livestock 12,878 12,585 287 3 3 Metal mining 70 70 - - - Non-metallic mining & quarrying 2,161 2,130 - 31 - Manufacturing 95,9h4 85,325 9,319 815 485 Construction 21,119 21,059 60 - - Electricity, gas arxt water service 690 558 132 - - Wholesale and retail trade 118,748 100,832 16,276 1,752 889 Banks & other financial institutions 18,807 18,272 279 200 56 Insurarce ,004 3,94h 40 - 20 Real estate 42,845 41,893 449 k7 57 Transoortation, storage & communication 21,473 21,320 8 115 30 Community and busiass services 22,h37 21,139 847 409 42 Recreatidn and personal services 20,122 18,682 1,287 lh 9 1967 41,182 381,802 n8a96 2,599 5,B19 Agriculture 17,198 16,924 235 35 L Forestry, fishing and livestock lh,8hh 14,503 150 191 - Metal mining 215 165 20 30 - Nort-metallic mining and quarrying 5,16 b,799 16 331 - Manufacturing 85,620 70,603 10,00 597 4,416 Construction 14,610 1h,184 263 107 56 Electricity, gas and water services 626 626 - - - Wholesale and retail trade 130,182 113,242 15,455 576 909 Banks & other finarrial institutions 32,560 32,233 215 110 2 Insurance 675 618 57 - Real estate 48,849 48,250 300 13 286 Transportation, storage & communication 27,164 27,1)41 18 5 - Community and busEness servicee 27,910 26,01 1,173 604 92 Recreation and personal services 13,583 12,473 1,056 - 54 1968 470A15 26,691 69211 1 8,192 Agriculture 9,11l 9,006 - 122 13 Forestry, fishing and livestock 24,267 23,537 267 43 L20 Metal mining 50 50 - - Non-metallic mining and quarrying 8,360 7,793 286 281 - Manufacturing 82,279 70,121 10,617 912 629 Constrpetion 28,108 26,331 617 899 261 Electricity, gas and water services 672 624 8 40 - Wholesale and retail trade 159,413 136,868 lj,999 1,560 1,985 Banks & other firancial institutions 26,926 26,664 262 - - Insurance 2,840 2,820 5 1 1L Real estate 57,503 55,283 434 1,786 - Transportation, storage & communication 20,916 20,545 150 26 195 Community and busiress services 37,666 35,816 89k 28k 672 Recreation and personal services 12,674 11,233 1,272 167 2 1969 1,024 391,272 1.115 41539 L098 Agriculture 12,02;' 11,872 .46 107 - Forestry, fishing and livestock 10,277 10,221 6 30 20 Metal mining 110 110 - - - Non-metallic mining and quarrying 30,434 29,729 20 530 155 Manufacturing 48,262 45,38 2,159 390 329 Construction 16,192 15,864 296 32 - Electricity, gas and water services 1,090 1,090 - - - Wholesale and retail trade 132,063 122,548 8,874 56 585 Banks & other financial institutions 14,120 1,116 - 4 - Insurance 622 612 - 10 - Real estate 48,893 45,629 164 3,100 - Transportation, storage & communication 41,841 41,641 42 158 - Community and business services 40,037 39,003 906 119 9 Recreation and personal services 14,058 -13,453 602 3 - 1970 .13.967 25,018 9,576 1,928 1,4h5 Agriculture 5,794 5,771 8 15 - Forestry, fishing and livestock 9,601 9,546 50 - Metal mining 4,126 4,126 - - - Non-metallic mining and quarrying 50,738 48,949 209 743 837 Manufacturing 52,690 50,295 2,171 115 109 Construction 21,847 21,813 3k - - Electricity, gas and water services 1,506 1,506 - - - Wholesale and retail trade 137,953 131,313 5,890 298 h52 Banks & other 1f1nncial institutions 19,797 19,664 133 - - Insurance k11 390 21 - - Real estate 64,225 63,561 23k 400 30 Transportation, storage & communication 15,482 15,396 71 - 15 Community and business services 33,528 33,109 265 152 2 Recreation and personal services 20,269 19,579 190 200 - Source: Central Bank of the Philippines 7аЫа 8.1Э Сотрегlеап о1 ЕвСlтвЕед liацц Ргlоев of 9eleated InduoWlal Рмдиоtв 1n tЬв Рh111рр1дев тд Lhe Ue1Led 9ццв. 1970 (2п U.9. доцагв) Ph111pp1nee Percmt Rвt1o ot tатцlв 11 в и chвnge U.9.A. Ph111pp1nee to percmt IEem U�1t 1-1 _�0 196В Lo 1970 1970 U.9.A.. 1970 Аа Уаlогет Cumxnt metrlc Еап 28 1G -Цэ Э7 •4э 1 Uaaallnr (regulnr) 11Еег .Otl - - .ОЧ - 2В итоа твЕпа Еоп 1гв ез -з5 9Э .в9 5 9ulphurlc аг:1д " " - - Ээ - Э4 •у7 Алпопlип eulplate " ' S7 - э8 1.5U Cauatlc водв 1Ц1 В7 -56 - - above 60 j/ Ря.с. " э54 - - - - 60 Chlorlne ° " 90 87 -} 8Э 1.05 ви g�E " " 26 г7.5 Ь 2Ч .95 1ос S111ce " - 2•7 - Э4 Оурвит и " - 12 - - - Llmeetone 0•7 - - - zэ�lпв�. 505 ЦЭЬ -14 эоо г.45 1ии 1у 1п. 44z Зов -зи 2ио 1.5L 1ои Кg,[гlят' гв ч сиЫс гt. Эб5 Эе5 5 21и 1.в7 15о 11 cubic tL. 41о 5э8 Э1 ?2и 2.44 15о 1i аиЫ о ft. ЦЬО 769 67 2aU ?.65 l?и Fraece 1 wЫ с fnoL 4Э5 56Ц эи 225 2.51 1S0 !7 cublo fооь 51Э 897 75 2Цо 2.64 1ги А �г Со d�1t1o пг 12.иг-� - 4зи 1в5 -1о г7о 1.Цз 14о 21,,иии вти 525 Т1В Э7 ЦЦу -1.Ьо 1Ци _S� �Е 0�1 _в(einglo sErengEh) (10и в�. Yt.) � п7т 810 - - - - 7и �.у т/т 1,з30 - - - - 7о 5 т/т 2.600 - - - - 70 Т eto в ог 2UW, Э!� 4,076 - - - - 1о InEarnatlonal 42Э, Ци НР Ц,575 - - - - 1о Ford Эии<1, 46 НР 4,5Ь4 - - - - 10 Dav1d Вгот ууи, 55 Ч1' S,0э0 - - - - 10 J. Deere 251и, 55 !� 6�6�U _ _ _ _ 10 Iпtегмllппвl B-O1L, 62.5НУ Fакд SUU. 67НУ Ь,ВЬО - - - - 1о 1�'ЧС1[9 н Tnterпatlonal FЭerveater Моде1 18ои 7,950 8,1иэ 2 Ь,ЬЦЦа 1.22 15 F210D (far logging lлдш try) 2y,75U 25,114 -16 17,ВЭ1в 1.Ц1 20 Auto оЫ1вв / 'iat о n СС " 2,17Ч 2,2у5 5 1.75о �/ 1.з1 � Reneult 4Е 2,2Ч5 2,295 о 1,795 �1 1.2В Simaa 1(КN г.$26 Э,и26 20 1,875 1.Ы lиии ОС Ео 15и0 сс " tara согЕlпа 2,уЬ2 2,Ч4ч -.L 2,20и 1.Э4 ОаЕвип Р1-Ц11 2,56'1 э.71В 45 2,1UU 1.77 '�1м1 каапtЕ, z п-9ваап эдц> з,?Э7 Ц г,эои t.Ьи ТауаЕв Спrппа, Ц fТ-:)еди 2r7ЬЧ 3,uW в 2,эЧ1 1.25 l�ltU lpU С' ' �гсоМв пг сю, 4 U-9оаи 5,гхх� 5,76Ч 15 4,96о �/ 1.16 Тvуог.а nrrnn, h Р-иедвn Э,17г Ц,.157 гЧ 2,)Ы 1.В5 Pпuget 1iuh. h П-Jпди !,718 э,tSЦб ) 3,hy4 '�/ 1.7п •' ио Г ги� �iс н obnvY .� г�' ьашi h,7'!7 h,)iв7 -Ь Э.бгю 1.25 Мвгвп�lаи �1bn'.. ?.u-r, ЦD•:Мди, ч,1и1 у,г)7 1.Ц G,'пХ1 1.74 гоvв а tьв, ti1>•:мди Ь,и2[, 6,154 г 2.вии г.?о �г 51 „�i� н lнмЕи ивг� г•го 5.'�и7 •г,17у го з.1ио г.эг И'аМ ииlатlп, 5и0 6,24Ц , 7,692 2э э.Jск1 2.ЭЭ НмЫnг Ам,гlоап, 4 D-9еди 4,821 б,у2э 44 4.1Ц2 1.67 УЕее1 F'годивЕв � твСгlп ten веЬегв " ' 1Э3 119 1.12 7S MerchиL Ьане ' ' • 172 147 1.17 Э5 Т1п рlвtов '' " Э1Ц 181 1.7Э Ци Со1д rallad eheetв " " 186 17Э 1.Uв 15 9kalpa ' 147 - - 7•5 Hot гаllод eheeE апд рlаЕев ' 155 165 •у4 15 B111ata " В4 1l9 i/ .71 nona Y1g Iгоп " " ЬЬ ЬЧ Н/ :96 none + Fetlmete trnm 15'Ь8 ртlсе 1п Ph111pp1nee ид U.S. � L Рh111рр1гю retall ргlсее ивге огlglпвцу glven 1п U.S. dollere, свlсиlаtл.д вЕ thв о1д ea�olnnge гац. 2/ Таrц'f гм cromиt (а) вЕидагд portlиd g.v. 1UU Rrsa. Р. Э•50 (Ь) оЕмг е.У. 1оо кев. Р. 1.5о � Тhв duty 1в У. 2U рвт 1uD 1IQe. g.V. l1/ The Ear1Sf диЕlвв агег евотЫод UпввеетЫед и1Еh noL тоти thи Ц суllгдеrв ЦОх 25� rlth 6 ауlцдеrе 80>< 60¢ иlth тоге thи 6 оуllпдеге 100¢ 100х dteeel ог ветl-дlевв] э5� 20¢ �/ F1at GW D 1е net воlд вnу логв 1л the U.9. 74ю ргlое ehoen 1в !ог Р1аЕ $о Aenault 4 F. " " ' ' " ' " " Renault 10 1Sercedee Ввпв 200 " " " " " ' ' " " н Мегоадев Вепв 220 Yeugot 4W, п п н н н и и и н и " п и Peugot 5UЦ 6/ 'Chn lпfоав ehnrn вго ек fвotлry ртlсое for Lhe 11.9. �/ 9'ha ип11. ehпvn for U.Y. prtoo 1Ч70 1е 1п net tппв. в/ �i н н и н и п н п 8ГООО Ет. 904гМвг �I nn �l .q Арг11 гэ, 197U, р. 158i 1 ! д �t�вст цт, June 8, 1970{ Jou ! 1 о С June S 197о. i'гfыв -of ваге 1л U.9. �bEalnsd Ьу ц ер оп�} 1�аДопаме�геаЕiтв rTSh деQегв 1n Мвв г� ол,�.G.1 � о k, Mqy 11, 1970. Ph111pp1ne ргlаее мго еЪцlпед lrom даЕв suЬmltted by 1ho В02 апд ttиm lпцлlеие иlth pLnt тивgете евде by the Чог1д Bank М1аеlоп Table 8.14 Average Effective..Rates of Protection Z SeptOr and Manufacturing BrAnc e_s, 1965 Percent, Agri pixlture 17 Mining -17 Forestry -26 Export (e.-kdluding sugar) -20' Manufacturing 50 Sugar 186 Capital goods (rriachiner7 only) 35 Truck s- and bu se s 77 Intermediate goods 67 Inputointo construction 67 Consumption goods 87 Source:' J.R. Power, and G.P. Sicdt.,. Industrialization in.thel Philippines, published- by the Wdord. University Fre'sil§ 1971- No other estimates available. Table 8.15 Average Effective Rate of Protection for Selected Projects Proposed by the Board of Investments Ex-factory CIF import Nominal Nominal 1/ Effec,ive domestic price price tariff Protection Protection P P t t C d w j j j Product (in pesos) (in U.S. $) () () (%) Polystyrene resins GPS 1,835,00 MT 222.00 MT HPS 2,706,00 MT 333.00 MT 25 32 56 Nylon fibers 8.50/Kg 1.57/Kg 15 20 20 Polyacrylic sheets 6.20/Kg 1.20/Kg 20 27 38 Benzene hexachloride 1,200.00 MT 175.50/MT 15 20 10 Antibiotics 158.00/kilo 27.00/kilo 5 7 12 Edible salt 50.00/MT 10.00/MT 50 S 71 Special & alloy steel 3,600.00/MT 728.72/T 10 13 l High carbon steel wire 1,150.00/MT 231.73/T 10 l 6 Copper tubes 8.00/kilo 1.73/kilo 10 17 49 Pliers and wrenches Pliers 2.00/unit .50/unit) 10, 14 23 Wrenches 3.50/unit .80/unit) Shapers 6,500,00/unit 1,092.00/unit 10 19 19 Electric drills 140,00/unit 28.h6/unit 10 17 19 Electric grinders 300.00/unit 60.60/unit 10 15 11 Lathes 12,000.00/unit 2,4"t.00/unit 10 14 16 Drill presses 1,200.00/unit 21.00/unit 10 14 5 Fishing winches 25,000.00/unit 5,060.00/unit 10 19 19 Band saws 20,000.00/unit 4,200.'00/unit 10 15 8 Carbide-tipped tools 4.95/unit3 1.00/uniti/ 10 13 11 Platform scales 550.00/unit lU2.00/unit 30 40 70 Pumps h60.00/unit 96.7 /unit 5 10 8 Palay threshers 3,300.00/unit 668.00/unit 10 l 11 Steam boilers 65,000.00/unit 13,150,00/unit 10 14 12 High-HP diesel engines (100 HP and above) 35,000.00/unit 7,083.00/unit 10 11 12 Note: Prices are based on $1 = Ph except those for polystyrene resins and benzene hexachloride which are based on $ 1 = P6. 1/ Includes effects of advanced sales tax on imports and domestic sales tax. T/ GPS means general purpose polystyrene resin: HPS, high powered polystyrene resins. 7/ Price of standard brazed tools of sizes 1/4", 5/16", 3/8", 7/16". Source: Board of Investments. Table 9.1 Price Indices, 1962-70 (Twelve monthly averages) I t e m 1962 1963 1964 1965 1966 1967 1968 1969 1970 General wholesale price index for Manila (1955 = 100) 129.4 142.0 148.6 151.9 158.5 165.9 170.7 171.9 205.4 Percentage rate of change 5.0 9.7 4.6 2.2 4.3 4.7 2.9 0.7 19.5 Sectoral components: Locally produced for home consumption 119.6 130.1 139.2 142.8 151.2 158.4 161.2 163.3 190.5 Import products 158.2 167.8 169.4 170.2 172.3 173.5 174.6 178.2 220.9 Ecport products 167.1 200.0 194.2 199.6 197.7 216.2 243.0 233.3 304.8 Consumer price index for the - Philippines (1957 = 100) 1/ 113.6 122,6 133.5 137.6 144.5 153.0 154.1 156.7 180.7 Percentage rate of change 3.0 7.9 8.9 3.1 5.0 5.9 0.7 1.7 15.3 Individual components: Foodstuffs 116.6 132.5 151.2 156.3 167.0 180.8 179.9 181.0 207.3 Clothing 121.4 125.3 129.6 136.1 142.1 150.3 155.7 160.2 187.0 Rent and repairs 103.2 104.8 105.7 107.1 109.0 111.1 114.3 115.3 120.9 Fuel, etc. 108.8 111.2 116.9 121.7 123.0 123.1 123.1 124.2 144.8 Miscellaneous 2/ 109.4 111.6 114.5 117.0 120.0 122.7 125.7 130.4 154.2 GNP price deflator (1955=100) 3/ (calendar years) 123.8 133.0 139.3 143.0 148.7 157.0 163.9±/ 169.81/ 185.42 Percentage rate of change 7.4 4.7 2.7 4.0 5.6 4.4 3.6 9.2 1/ Constructed from the consumers price indices for Manila and for regions -outside Manila. . The weighing pattern was - developed on the basis of surveys conducted in 1953-54. This index is intended to reflect changes in the retail prices (including indirect taxes) of a "fixed basket of goods and services" purchased by an average household. This can be interpreted as a cost-of-living index. This is also regarded as .an indicator of price stability by the monetary authorities. 2/ Consists mostly of various services (such as education and medical care), transportation, beverages and tobacco, etc. 3/ Ratio of gross national product in current prices to the same in constant 1955 prices multiplied by 100. r/ Revised. p/ Preliminary. Source: Department of Economic Research, Central Bank of the Philippines. OSCAS, NEC. Table 9.2 Wholesale Price Indikes, 1957-70 A. General Wholesale Price Indices in Manila (1955 = 100) 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 Food 107.5 110.6 103.7 110.8 119.5 122.7 139.0 148.3 150.3 165.8 174.5 175.9 178.3 208.3 Beverages and Tobacco 105.7 106.4 107.0 108.3 111.3 113.0 118.2 120.1 123.0 124.0 133.5 133.2 138.8 149.2 Crude Materials (inedible) 109.2 117.4 138.1 137.1 135.2 131.5 168.9 179.0 192.3 181.3 197.1 222.8 218.9 274.9 Mineral Fuels 110.4 110.5 112.3 114.8 127.5 135.4 140.5 140.5 142.2 146.9 147.6 147.6 149.2 175.7 Animal and vegetable oils and fats 99.2 134.6 164.6 145.3 138.1 163.7 183.0 197.2 230.0 201.3 225.3 267.0 234.4 347.9 Cheicals 105.5 109.7 113.6 110.9 115.4 131.4 138.5 141.0 142.4 141.2 143.8 147.0 147.8 183.9 Manufactured Goods 112.8 112.9 119.6 123.0 126.6 130.9 135.3 1h0.0 143.4 146.3 146.7 147.3 151.2 192.3 Machinery and Transportation Equipment 106.7 115.4 128.3 147.6 163.5 174.7 189.2 188.5 188.7 190.8 193.0 196.0 202.1 248.8 Miscellaneous Manufactured Art. Nec. 101.8 103.9 110.8 116.5 116.2 123.4 130.6 131.7 128.5 131.0 132.2 132.6 133.5 151.4 All Items 107.6 111.2 112.7 117.4 123.2 129.4 1h2.0 148.6 151.9 158.5 165.9 170.7 171.9 205.4 B. Wholesale Price Index of Dome stic Products in Manila Food 107.1 110.2 102.1 109.0 117.7 119.6 136.4 146.0 147.8 163.9 173.1 174.5 176.6 20.2 Beverages and Tobacco 103.4 103.1 103.0 10.0 107.0 107.9 113.1 114.7 117.5 120.1 129.4 134.5 134.5 143.0 Crude Materials (inedible) 109.5 118.0 138.8 137.4 134.8 151.5 169.2 179.5 193.0 181.7 197.7 224.0 219.9 276.6 Mineral Fuels 109.2 109.3 111.0 113.4 122.6 129.4 133.9 134.0 136.5 139.6 140.5 140.5 141.4 164.2 Animal and Vegetable oils and fats 98.8 135.4 166.5 145.8 138.4 164.6 184.5 199.0 232.8 202.7 227.1 270.1 236.3 350.7 Chemicals 101.0 102.8 10.1 103.9 112.1 126.8 131.7 135.3 138.0 135.9 139.0 143.3 143.6 176.9 Manufactured Goods 110.3 109.6 114.3 116.9 120.4 120.6 122.7 .128.8 134.6 138.0 138.4 138.2 143.4 190.8 Machinery and Transportation Equipment 106.9 113.9 121.8 1[4.1 171.5 181.4 194.4 196.1 200.1 202.2 207.4 212.6 227.9 298.6 Miscellaneous Manufactured Art. Nec. 100.4 102.2 108.4 114.2 113.5 120.0 127.4 128.8 125.4 127.9 129.1 129.6 130.2 144.8 All Items 106.4 109.9 109.9 114.1 119.7 124.7 137.7 145.2 1h9.0 156.3 164.6 170.0 170.8 .202.8 Source: Central Bank of the Philippines Table 9.3 WaRe IndicesY 19 70 (1955-100) (Averages of twelve monthly figures) Sept. Sept. Sept. Iten 1961 1962 1963 1964 1-965 1966 1967- 1968 1969 1968 1969 1970 1970-2/ Nominal yages Skilled labor 104.8 106.1 109.3 111.2 114.4 120.1 125.7 135.8 143.0 138.2 143.4 155.6 150.3 Unskilled labor 10.4 107.5 113.4 114.4 122.5 131.4 137.6 153.1 160.3 157.9 162.9 190.0 173.9 Real wages Skilled labor 92.6 88.6 86.4 81.2 81.5 80.6 79.8 86.0 89.2 85.7 87.1 80.0 82.3 Unskilled labor 92.2 89.7 89.6 83.6 87.3 88.2 87.3 96.9 100.0 98.0 99.0 97.7 95.1 Y Applies to laborers in industrial establishments in Manila and suburbs. 2/ January to September average. 3/ This series has been revised by deflating money wage rate index by the consumer price index (1955-100) in Manila. Sources Central Bank of the Philippines Table 9.4 Index of Average Monthly Earnings of Salaried Employees and Wage Earners in Selected Non-Agricultural Industries in the Philippines, by Industry Division, 1956-1970 (1955 = 1.00) Item 1956 1962 1963 1964 1965 1966 1967 1968 1969 1970 All Workers Salaried employees 101.2 127.1 131.4 134.2 135.7 142.6 145.1 152.2 159.4 163.6 Wage earners 101.4 119.0 120.2 125.6 133.0 146.8 155.4 156.2 162.6 173.2 Mining and Quarrying 7alaried employees 92.9 137.4 137.6 138.4 143.9 141.8 133.0 140.5 150.1 144.8 Wage earners 105.4 139.6 145.7 155.9 158.2 171.5 196.7 201.4 213.3 214.4 Manufacturina Salaried employees 105.0 119.7 127.5 133.5 136.8 143.8 152.8 157.9 167.5 178.2 Wage earners 96.7 11:6.3 121.4 125.7 129.2 139.8 147.1 149.5 155.6 168.6 Electricity, Gas and Heat, Water and Sanitary Services Salaried employees 100.0 113.7 119.4 121.2 111.1 136.0 148.7 160.8 163.4 163.5 Wage earners 93.1 110.8 112.7 119.7 134.0 151.8 160.5 158.8 171.6 183.4 Commerce Salaried enployees 106.3 127.8 132.5 136.7 138.8 144.5 144.7 148.9 156.2 169.8 Wage earners 105.1 121.8 116.6 122.1 128.3 139.1 146.3 142.8 142.5 154.0 Transport and Communication Salaried employees 104.4 131.2 136.2 139.1 144.1 147.1 153.5 159.6 165.5 170.0 Wage earners 105.8 110.9 111.8 112.7 119.4 135.2 133.9 138.0 140.0 148.1 Number of Workers: 165,538 187,029 190,341 194,84 ?09,97 197,901 199,31 205,258 207,440 207,979 1/ January to September average (preliminary) Source: Central Bank of the Philippines Table 10.1 Department of Education EMMeditures -(In millan pesos) 1936 ,613 1963/64 1%/5 16/661967 16/8 1968/69 % 76* Burean of Vocational Education) 31 35 20 32 37 39 45 70 Bureau of Public Schoola ) 378 412 477 504 62o 667 718 827 911 Bureau of Private Schools 1 1 1 1 1 2 1 2 2 Office of the Secretary 1 1 1 1 1 1 1 2 2 Other Officeev 2 1 2 2 2 2 2 3 3 Tota 1 382 445 516 537 656 709 762 878 988 Including Institute of National Language, National Library and National Museum y Source: Annual Report FY 1969/1970, Department of Education Sources Budget Documents FY 1964-FY 1971. Table 10.2 School Enrolment at i Levels of Education 1967-1968 1968-1969 1969-1970!/ Bureau of Public Schools 6,577,852 7,248,938 Z16341202 Pre-School 881 919 bJ 1,078 Elementary 6,116,200 6,720,420 / 7,011,280 Secondary 452,771 521,041 8 584,916 Collegiate Undergraduate 8,000 7,047 W 6,928 Graduate -- - Bureau of Private Schools 1,61,255 1,825288 it942,633 Pre-school 37,760 44,994 46,874 Elementary 287,111 330,640 348,367 Secondary 812,906 8814,764 938,439 Collegiate Undergraduate 531,302 553,371 596,367 Graduate 8,176 11,519 12,586 State Colleges and Unyersities 219 597 65,81 Pre-School 334 286 466 Elementary 3, 295 2,681 3,904 Secondary 14,527 11,258 16,749 Collegiate Undergraduate 41,925 38,445 42,259 Graduate 2,.058 2',327 2,1436 Bureau of Vocational Education 9221, 97,0o34 97,560 Pre-School - - Elementary 220. 312 416 Secondary 82,925 87,315 87,963 Collegiate Undergraduate 9,070 9,407 9,181 Graduate - - - Total Enrolment Pre-School 38,975 46,199 48,418 Elementary 6,1406,826 7,0514,053 7,393,967 Secondary 1,363,,.129 1,5004,378 1,628,067 Collegiate Undergraduate 590,297 4608,270 654,735 Graduate 10,234 13,846 15,022 Grand Total 8,4o9,461 9226,746 9,7140,209 a, Projected b/ For normal schools only 1/ Data for 1968-1969, do not include enrolment reports from five state colleges and one state university. SOArce: Annial Report. 1969-1970 Denartment of Eb-nation