MANILA, Philippines - Government spending growth was zero in October as the pork barrel controversy entered its third month. Coupled with the effects of typhoon "Yolanda", that raised the possibility of a significant economic growth slowdown in the fourth quarter Spending was little changed in October from a year before. It grew as much as 22% in July when the controversy broke out, following a Philippine Daily Inquirer series. The controversy has led to the Supreme Court declaring the Priority Development Assistance Fund unconstitutional, while deciding on the constitutionality of the Disbursement Acceleration Program. For the first 10 months, spending is now up just 11%. The squeeze on government spending, plus the losses from Yolanda may deepen the slowdown in economic growth, which already weakened to 7% in the third quarter, the slowest pace in a year. - ANC
