Bicam committee raises 2009 economic stimulus fund to P50 billion

The bicameral conference committee has agreed to increase to P50 billion the P10-billion Economic Stimulus Fund proposed by the Senate in the 2009 budget, Sen. Edgardo Angara said Monday.

He said the 50-billion stimulus fund would be sourced from the cut in debt servicing and not from cuts in the individual budget of government agencies.

Angara, chairman of the Senate Committee on Finance and of the Senate panel to the bicameral conference, told The Manila Times the fund is meant to enable the country to cope with the global economic crunch.

He laughed off reports that describe the Economic Stimulus Fund as the biggest insertion by the Senate in the budget, and that it is causing the main hurdle in the reconciliation of the House and Senate versions of the P1.415-trillion budget bill.

“The agreement by the House to even increase the P10 billion proposed by the Senate to P50 billion is proof that there is no such problem,” Angara said, as he expressed confidence that the 2009 budget would be approved when the Fourteenth Congress resumes its Second Regular Session later this month.

He allayed fears that the Economic Stimulus Fund would constitute a huge pork barrel for President Gloria Arroyo, which she could use as she pleases, and said “the use of the P50 billion will be sufficiently described although not to the minutest detail because that is not our job,” Angara said.

The Fund includes Reintegration Assistance for Returning Overseas Workers, a Rural Micro Enterprise Program, Livelihood Projects, environmental protection, Skills Development Training and an Agricultural Support Fund.

“We will break down the P50 billion to specific projects but with broad criteria to keep it from being used at the sole discretion of the executive department,” Angara said.

He cited environmental protection as one concern that the Economic Stimulus Fund would propagate.

“This involves protection of watersheds and coastal resources. To do this, we must hire more forest guards and Bantay Dagat, provide patrol boats for a cluster of coastal towns, and enhance the use of sea cases,” he said.

Angara cited a study by the Bureau of Fisheries and Aquatic Resources that a 200-square meter sea case can produce more bangus (milkfish) than a hectare of fishpond.

He said: “The Fund will allocate P1 billion for vocational training vouchers. Vocational graduates are in great demand abroad. P2 billion more will be for college degree program with standard to be set by the Commission on Higher Education and with the fund to be disbursed by rural banks.”

Another key component of the Fund, according to Angara, is the allocation of P5 billion for the building of classrooms.

“This is on top of the extra P6 billion we gave to the Department of Education [DepEd] for the building of more classrooms and science laboratories for both elementary and secondary education and recruitment and training of science teachers,” he said.

The bicameral conference committee has agreed on the adoption of a budget provision authorizing DepEd to contract private contractors for the construction of classrooms.

“Classrooms built by the Department of Public Works and Highways cost 30 percent more,” he decried.

Other items to be included in the Fund coverage are two new research institutes on Renewal Energy and an Industrial Research Corporation that would act as incubator for new industries.
–Efren L. Danao, Manila Times