Pia slams 'tokenomic' stimulus fund in 2009 budget

The much-hyped about 'economic stimulus' fund in the recently approved national government budget for 2009 has turned out to be a 'tokenomic' stimulus that will only serve to boost administration candidates in the coming 2010 elections, instead of preparing the economy for the onslaught of the global financial crisis.

Thus warned Senator Pia S. Cayetano, who was a member of the Senate minority panel to the bicameral conference committee on the P1.415-trillion national budget.

The lady senator welcomed the P35-billion cut in interest payments under the approved budget, adding that the challenge is now for Pres. Gloria Macapagal-Arroyo to take a strong stand against fraudulous debts by not vetoing any of these items.

But she questioned the lack of transparency of the bicameral committee leaders in determining how the realigned funds from debt servicing were distributed for various agencies and purposes.

Cayetano said the approved budget failed to incorporate specific guidelines on how huge portions of the realigned funds should be spent by the Executive Branch.

She said the biggest realignments include the creation of a P10.07-billion "economic stimulus" fund, the P9.36-billion additional "pork" for the Department of Public Works and Highways (DPWH) and the additional P3.43-billion "pork" under the Priority Development Assistance Fund (PDAF).

"I support the concept of providing an economic stimulus provided that proper guidelines for spending are in place," the leady senator stressed.

"But what I think is misleading is how regular programs on health, education and the environment were made part of the so-called 'economic stimulus' package. I totally agree that the budget for these items should be increased because they are basic social services, but what's the basis for their inclusion under the heading, economic stimulus?"

"Economic stimulus is meant to boost spending. Putting money on education, health and environment is not economic stimulus per se. The heading appears to be more of a token. It's a 'tokenomic stimulus,' in my opinion."

She pointed out that under the P10.07-billion fund, P2.5 billion was allocated for food production, but the special provision governing it did not even specify which agencies will be tasked to handle the money.

"This is like a blank check that Congress has given to Malacanang to dole out to its political allies as we enter the year leading to the 2010 elections. Where does the accountability lie here? This has the makings of another fertilizer fund scam which was committed at the height of the 2004 electoral campaign."