Gov't to continue stimulus package until 2012

The Philippines will continue its stimulus program in the next three years to keep the economy strong, Acting Planning Secretary Augusto Santos said on Tuesday. Santos said the advice of the World Bank for countries to keep their stimulus packages until 2012 applies also to the Philippines. “The Philippines has taken a conscious decision to continue its stimulus spending but at a reduced scale. The stimulus is still there, but the Philippines is still worried about fiscal stability," he pointed out. Santos noted that at the rate the economy is growing, the government expects to balance the budget by 2013. The government is keeping its target growth of 0.8 to 1.8 percent this year despite damages sustained by the agriculture sector from typhoons. Santos said increased spending and higher remittances from Filipino workers abroad would offset a projected cut in the gross domestic product. He also said government would maintain its deficit target of P250 billion this year despite the shortfall. He further noted that the Dubai debt crisis was unlikely to escalate after its government committed to rescue its investment arm, which had defaulted on a $60-billion loan. — GMANews.TV