P10-billion economic stimulus fund scrapped in 2010 budget

MANILA, Philippines – There is no more P10-billion economic stimulus fund in the proposed budget of P1.541 trillion for next year.

By not including a stimulus fund in next year’s spending program, the Arroyo administration apparently intends to keep the budget deficit in check.

The 2010 deficit is estimated at P233 billion.

Budget Secretary Rolando Andaya Jr. has told congressmen that this year’s funding gap, projected at a record level of P255 billion, is due mostly to economic pump priming.

“Although pump priming is good, it should be done in moderation and not for a long period of time,” he said.

This year’s P1.4-trillion budget includes a P10-billion stimulus fund.

Sen. Edgardo Angara, Senate finance committee chairman, introduced it during the bicameral conference on the spending bill.

Some congressmen have described it as part of the senatorial pork barrel.

Of the P10 billion, P3 billion has been earmarked for additional school building fund of the Department of Education and P500 million for loan assistance to college students. At least P1 billion is intended as aid to vocational education students.

The funds were to be administered by the Commission on Higher Education (CHED) and the Technical Education and Skills Development Authority (TESDA). Lawmakers are allowed access to the funds for favored students and constituents.

CHED and TESDA are conduits and dispensers of pork barrel funds. During budget hearings, they promised lawmakers tens of millions in scholarship and educational assistance money.

Another P1 billion of the supposed economic stimulus fund has been appropriated for the purchase of medicine, vaccines, and medical supplies; P1 billion for assistance to laid off workers; P100 million for food production; P750 million for Bantay Kalikasan environment program; and P70 million for recycling of agricultural and forest wastes.

These funds were on top of similar appropriations embedded in the budgets of concerned agencies.

It is not known how much of the various items in the economic stimulus fund has been released.

Meanwhile, Angara has expressed optimism that the 2010 budget will be passed on time as the Senate begins today its hearing on the measure.

Next year’s proposed budget is more than eight percent higher than this year’s national budget.

“By passing the 2010 budget on time, we are expected to provide a comprehensive stimulus package for our people and the economy as a whole,” Angara said.   –-Jess Diaz (The Philippine Star) with Christina Mendez