Press Release
September 17, 2011


Senator Edgardo J. Angara lamented the low spending of government funds, saying that the Department of Budget and Management (DBM) should doubly invest in human capital services for the remainder of the year.

"We are seeing cuts in education, health and infrastructure--areas economists call productivity enhancing investments. However, the overwhelming emphasis in the proposed budget is on welfare," he said.

According to Angara, vice-chair of the Senate Committee on Finance, allocations for human capital development such as education and health, combined with infrastructure projects such as access roads and bridges, are crucial long-term investments that the government is compelled to make.

"Such investments will have tremendous impact on our country's development. Then we would have taken good care of our people, equipped them with the necessary knowledge and skills. They will be in good health and have good roads on which to travel and commerce can be undertaken," he said.

Angara further suggested that the government capitalize on this unprecedented liquidity--around P1.8 trillion parked in the Bangko Sentral ng Pilipinas (BSP)--for financing infrastructure like school buildings and classrooms, as well as government clinics and hospitals.

"Instead of just letting this huge amount of money lie around and grow at a measly 1 percent or 2 percent in the bank, we should borrow this--right now the loan rates are very low because there is more supply than demand for borrowing--and build more public hospital and public schools. These will have a more profound effect on people's income and livelihood than welfare."

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