Thursday, January 08, 2009 [ manilatimes.net ]
THE Philippine government has set aside a multibillion-peso stimulus package that could help it meet the higher end economic goals this year amid the global economic downturn, the National Economic and Development Authority (NEDA) said Wednesday.
In a statement, Socioeconomic Planning Secretary Ralph Recto said the P300-billion Economic Resiliency Plan would ensure sustainable growth and help attain the higher end of the growth targets for the year. The Development Budget Coordination Committee has pegged growth for 2009 at 3.7 percent to 4.7 percent.
The stimulus package was borne out of President Arroyo’s desire for the country “to hit the ground running in 2009” in response to the global economic crisis.
“What we intend to do is upgrade infrastructure and capital stock and expand social protection at the same time,” Recto said.
The Plan particularly aims to save and create jobs, protect the poorest of the poor, returning OFWs and workers in export industries, ensure low and stable prices to support consumer spending and enhance competitiveness in preparation for the global rebound.
Recto said that one of the components of the Plan involves spending 60 percent to 80 percent of the productive portion of the implementing agencies’ 2009 budget during the first semester, focusing on the infrastructure sector.
He said that in the first semester of 2008, the government— which accounts for 20 percent of the country’s gross domestic product—spent only 30 percent of its budget.
The planned frontloading and expenditures for the first half of 2009 is expected to boost private sector confidence in the economy.
The NEDA chief added that the government is accelerating spending for fast, off-the-shelf infrastructure that has simple engineering requirements and no right-of-way problems.
“We are encouraging the government financial institutions [GFIs], government-owned and controlled corporations [GOCCs], local government units [LGUs] and the private sector to participate in these infrastructure projects,” Recto said.
“The government should also improve revenue collection through better tax administration,” he added.
To stimulate the exports sector, the NEDA chief said that the government has implemented various programs to encourage exporting firms to diversify, innovate and upgrade their products.
“So far, we have provided tax relief for the private sector by reducing corporate income tax from 35 percent to 30 percent and exempting minimum wage earners from personal income tax and increasing in personal exemption of non-minimum wage earners,” Recto said.--Darwin G. Amojelar
