Php 30 B EXTRA SPENDING FOR FY 2009 NEEDED - ANGARA
Budget Oversight Committee to be formed

Sen. Edgardo J. Angara today said that the government needs to spend more on FY 2009 to pump prime the economy taking into consideration the perceived negative impacts of the global financial crisis to the Philippine economy.

"This is one time, one instance, one occasion, when there is consensus even among tax collectors and economies that we need to spend more even to the point of sacrificing your goal of balancing the budget. Because spending more and incurring additional deficit is not going to harm the economy. In fact, in the end, it will be, it will push up the economy," said Angara who chairs the Senate Committee on Finance.

He added, "The thing is that we should prevent a sharp contraction of our economy because one percent contraction of our GDP, one percent loss of GDP means 20 million Filipinos will drop below the poverty line. Let's think about that."

For FY 2009, the country's budget introduces 3 Innovations to cope with the global economic slowdown:

First, it is a Growth Budget finely calibrated to effect reforms in policies and institutions to maintain the momentum for growth and sustained development even as current global economic difficulties weigh down on short-term prospects.

Second, it prioritizes massive and coordinated infrastructure spending on roads, schools, housing, irrigation and other public works.

Finally, in anticipation of the recovery, it provides stepped up training of the workforce and increased R&D work.

Tomorrow, December 15, all agencies with R&D budgets will convene in an unprecedented meeting to pool limited R&D resources and identify key research thrusts for 2009 - something that has never been accomplished before. R&D agencies have agreed to hold the Conference at the University of the Philippines to fix the Research Agenda for 2009.

"We are considering about Php 30 B extra spending for 2009 and we will focus on Health, Education and Training, Environment and Infrastructure spending," added Angara.

Angara also announced that an Oversight Committee will be formed to monthly monitor government expenditures and revenue generation. This is an innovation, he said, that the country needs to ensure that the limited resources are spent wisely and prudently especially during these tough times.