Press Release
September 17, 2009

Transcript: Ambush interview with Senator Angara
after DBCC budget hearing

Do you plan to change anything on the budget?

Sen. Angara : There are no adjustment and changes yet because we are still discussing the macro economic assumptions, anyway, I haven't gotten down to the nitty-gritty, to the specifics of each department's budget. When we get to the individual department budget, then that's the time that perhaps either we realign and/or increase other department's budgets like education and health as we keep emphasizing.

As far as I'm concerned, I will increase the deficit, although that's also problematical because we don't want to increase the debt stock, because the more you increase your debt, the more debt you have to incur to repay unless your economy grows, but in these bad times, in this financial crisis, we have to make a choice, between incurring more debt or letting our economy contract, this means that economy doesn't grow or expand, then our people will get impoverished and I think that will be more problematic and its not a good choice at all.

There are small signs of economic recovery for instance our export is growing, although it's still negative, at least the slump is smaller this second quarter than the first. That means that unemployment is smaller than the first quarter. But those are small signs of recovery. We are not still sure that recovery is already on the way. So we have to play it safe and cautious.

HOW MUCH YUNG INCREASE NA GUSTO NYO SA SOCIAL SERVICES?

Ang increase ng social services, means education, health, housing is about six (6) percent. That's about 27 billion. I think that's not enough because half of that will go to one single item - yun bang subsidy to the needy or the poor. That's alright. At least, that money when you give it to poor families, gagastusin nila yan. And that means it will create a demand. But I'd like to address specific problems sa ating bansa yung malnutrition. The malnutrition rate is so terribly high - 37 out of 100 five year-olds sa Pilipinas is malnourished.

HOW CRUCIAL THIS BUDGET IS (TO THE NEXT ADMIN)

Very crucial. It's very crucial. That's why I don't want to see at the very least a cut of this budget over 2009. It should be at par of what we provided or what we spent in 2009 because that is a survival mode budget. We just want to - not to drown and not be caught drowning. But if we reduce it and we are not yet sure that the flood is over, we might drown, especially that there's a transition to new administration next year. So the more reason that we should keep the level of disbursement and spending to the 2009 level.

I think our economic analysts are a little bit more optimistic. However the Central Bank is more cautious than the rest. NEDA, Finance and DBM seems to be more of the optimistic outlook, but I think it's also good for the mood, but ako, I'd rather play it safe, be skeptical because that's what everybody is saying--in the World Bank, the IMF -- recovery is not on its the way yet.

The DBCC (Development Budget Coordinating Council) is designing the budget according to that optimistic outlook. I'm not exactly that optimistic.

I think we have to add (to social services) at least 20 billion. That's about 12 percent.

We are suggesting extra tax revenue that comes from the levy on text. The levy on text is so - almost miniscule. Ten cents per text. Ang proposal kasi namin 10 and we can collect over 75 million and I am sure that the telcos will be patriotic enough to contribute 5 or 10 cents that they will collect from our texting because it will go to a very very good cause, extremely good cause. Health and education.

Thank You

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