Press Release
October 21, 2008

ANGARA ASKS GOV'T TO STEP UP ECONOMIC PUMP PRIMING
To offset slowdown in economic growth

Senator Edgardo J. Angara today said that the government should step up its economic pump priming activities by increasing its infrastructure expenditures in order to offset the expected slowdown in economic growth due to the global financial meltdown.

"Public infrastructure that has died by negative 8 percent during the first half of this year and it is not my belief being remedied in the second half. We have to look into that, especially in the context of a looming economic slow down brought about by the Global Financial Turbulence," said Angara who chairs the Senate Committee on Banks, Financial Institutions and Currencies.

He added, "Economic growth and our efforts to attain global competitiveness have been stifled due to our failure to spend on much needed infrastructure projects. Also, employment rate might be slowing down because of the poor public infrastructure accomplishments of government."

NEDA data showed that budget allocations for major infrastructure projects during the first half of 2008 were measly spent.

Only Php 629 million of the total Php 4.6 billion allocated for railway projects have been spent during the first six months of the year..

For seaport and airport projects, on the other hand, only Php 310 million out of Php 4.7 billion was disbursed.

On waterworks projects, a miserable twenty percent (20%) - or Php 965 million out of the total Php 609 billion - was spent.

Out of the total Php 13.8 billion for foreign-assisted projects only Php 1 billion has been spent.

"These projects are mostly vital infrastructure which could help us mitigate the impacts of economic slow down. And the multiplier effects of these infrastructure projects are boundless, think about jobs potentially generated, boosting of agriculture production and tourism impacts, among others," Angara added.

Angara also suggested sustaining various financial reforms in the country. Some of these reforms are already in place, like the Personal Equity and Retirement Account (PERA) and Credit Information System Act (CISA) which is due for signing by the President late October. While others like the amendments of the Central Bank charter, Bankruptcy Law, Mutual fund and instituting RP's Real Estate Investments Trusts are still being pushed by the Senator..

He recently filed a bill, also part of continued financial reforms, which seeks to double the maximum deposit insurance coverage from Php 250,000 to Php 500,000.

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