NEDA ensuring government stays on track in pump-priming economy

MANILA, Philippines – The government will continue to spend on vulnerable sectors and monitor developments related to the global financial crisis this year, the National Economic and Development Authority (NEDA) said.

NEDA deputy director-general Rolando Tungpalan said this is necessary to ensure that the government stays on track in pump-priming the economy.

Tungpalan said he believes the government response was appropriate as it did not spend beyond what was authorized in the budget.

“Our response was appropriate which is why we did not go into high spending that was beyond what was already authorized in the budget,” Tungpalan said in his speech at the recent Asian Development Bank (ADB) Regional Forum on the Impact of Global Economic and Financial Crisis at the ADB headquarters in Manila.

He said in stimulating the economy, the Philippines worked around the national budget as this has already been submitted to Congress.

Furthermore, Tungpalan said the government pushed for expenditure items that focused on quick, ready-to-go actions and measures, particularly infrastructure, that would not have to go through a tedious bidding process.

“These infrastructure projects were characterized by rehabilitation and repair, including small farm-to-market roads, irrigation ditches, and the like,” he said.

Tungpalan said at the same time, spending was also focused on shielding the vulnerable sectors through appropriate social protection programs including the Conditional Cash Transfer (CCT) program and the Comprehensive Emergency Employment Program (CLEEP).

The CCT is “an expanded social compensation program”, which is not a “dole-out” scheme, Tungpalan said. “Rather it is a response that provided quick incentives for school children to attend to school, and mothers and family members to attend to healthcare,” he explained.

Equally important, Tungpalan cited the importance of continuous monitoring of global events as they impact on local development. –Iris C. Gonzales (The Philippine Star)