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EXPORTERS lobbied Thursday to get a slice of the vaunted
P75-billion economic-stimulus package presented by
presidential adviser Joey Salceda, and Senate President
Manuel Villar Jr. advised its proponents to get
congressional fiat as the budget bill had already been
passed. In the end, however, concerned Cabinet members
decided that the whole problem of providing an economic
safety net for the impact of a recession in the United
States was simply a matter of tweaking and repackaging
the 2008 General Appropriations Bill.
Economic
managers meeting Thursday morning had “neither approved
nor rejected” the one-shot stimulus plan, according to
Budget Secretary Rolando Andaya Jr., a version that
Agriculture Secretary Arthur Yap confirmed separately.
“We
agreed that at least part of what he [Salceda] presented
can be sourced from the 2008 budget,” Andaya explained,
validating the view of Rep. Edcel Lagman, House
appropriations committee chief, that all of the items in
Salceda’s package to prime the Philippine economy in
case of a US recession are already found in the 2008
bicameral-panel report approved this week by both
chambers of Congress.
Lagman
had said that because of this, there was no need to
craft new programs and source new funding for them, as
such effort would be redundant and would drain state
coffers. Earlier, finance officials and Andaya had
expressed worry that a separate P75-billion package
would upset the fiscal balance that the government seeks
to attain this year.
As it
turned out after Thursday’s meeting of economic
managers, however, the “stimulus” could all be found in
items in the 2008 budget, and it was a matter of
“frontloading them.”
They
agreed that if the
US
economy worsens, then Salceda’s proposal can be a
“standby program.”
After
the first quarter, they will assess whether the US
situation has had a serious impact on the Philippine
economy, said Andaya.
Still,
he acknowledged Salceda’s point in increasing
expenditures in certain areas of the economy to avoid
its being dragged down by the US problems. Andaya said
the conscious decision in the 2007 budget to increase
funding for so-called key sectors—education,
agriculture, infrastructure and health—partly resulted
in the robust 7.3-percent growth.
Local
exporters are keen on seeking a share of the P75-billion
“package.” Philippine Exporters Confederation Inc.
president Sergio Ortiz-Luis Jr. said they will discuss
with the government the possibility of allocating a
portion of the amount to exporters—the hardest hit,
along with the families of overseas Filipino workers, by
the continuous appreciation of the peso.
“We will
still discuss among ourselves [exporters] in what form
it will be given to us,” said Ortiz-Luis at the
sidelines of the opening of the 2008 Food Expo organized
by the Philippine Food Processors and Exporters Inc. (Philfoodex).
Philfoodex president Roberto Amores said any state
assistance to help exporters cope with a
US
recession and a stronger peso will be most welcome.
Donald
Dee, chairman emeritus of the Philippine Chamber of
Commerce and Industry, said that business is likely to
support the economic-stimulus package even if it derails
the balanced budget bid this year—but only if the
government can show that it can manage the resulting
deficit.
“I think
that’s a step in the right direction,” Dee told
reporters at the First Biennial National Congress on
Education at the Manila Hotel.
He said
a balanced budget, which may be forgone if the full
proposal of Salceda is pursued by the government, “is
not an end-all or a solution to everything if you have
no deficit.”
“The
important thing is to show we are handling our finances
responsibly so if there are some deficits brought about
by shocks in the economy, principally the increase in
crude-oil prices, that is obviously acceptable,” Dee
said.
Salceda’s package includes P16 billion in tax rebates
for middle-class working families and P8 billion in
power-rate discounts for those consuming a maximum of
200 kilowatt-hours per month; and increased spending for
agriculture (P15 billion), food-for-school projects (P6
billion), education (P6 billion), health (P4 billion),
housing (P4 billion) and infrastructure (P16 billion).
He also proposed that the P75 billion be appropriated
through a supplemental budget—a move frowned on by the
other managers.
Agriculture Secretary Yap, who attended the economic
managers’ Thursday morning meeting, said the budget
department approved the “frontloading” of funds within
the 2008 General Appropriations Act to jump-start the
programs and projects of government agencies for this
year.
The
Department of Agriculture, for one, is set to initially
receive P5.9 billion to fund its programs and projects.
Of this amount, Yap said P1.5 billion cal already be
accessed by the department.
Earlier,
Senate President Manuel Villar asserted that funding for
the proposed stimulus plan must go through Congress
where lawmakers are expected to include clear provisions
and procedures “to avoid any room for corruption.”
Appearing at a Senate media forum, Villar said “I think
the President should first go to Congress because she
cannot just issue a check for P75 billion.
“The
Constitution says that money can only leave the treasury
if it’s appropriated by Congress.”
He
argued that if the P75-billion economic- stimulus plan
was inspired by the $150-billion antirecession package
the US government is putting together, “then it must
be pointed out that the White House is not doing it
alone but is asking the US Congress for money. [So]
Malacañang should send a supplemental budget to the
House and to the Senate,” Villar added. (With B.
Fernandez) |
