Recto defends Economic Resiliency Plan

MANILA, Philippines- Socioeconomic Planning Secretary Ralph Recto on Monday defended the economic stimulus plan of the government from criticisms that it will be insufficient to cushion the local economy from impact of the global financial meltdown. Recto said the government will ensure that the P100-billion Economic Resiliency Plan will be spent efficiently to reach its intended purpose. “We can't max out the Philippine credit card. There's no need for more stimulus, just better spending," Recto said. Critics have said the government's ERP is just a “recycled stimulus package" as bulk of it will be used for government workers salaries, which the government had been paying regularly anyway. Recto earlier said he sees a slowdown in the country's economy but not a negative growth. One of the strategies of the ERP is to implement budget interventions which include the full and quick spending of the 2009 national government budget. Government agencies are expected to frontload resources by spending 60 to 80 percent or PhP84.3 to PhP112.3 billion of the productive portion of the 2009 budget during the first semester. To date, the following agencies have committed to spend at least 60 percent of their spending program: Department of Public Works and Highways (PhP60 billion in the first semester), Department of Agriculture (PhP16 billion in the first quarter), Department of Transportation and Communications (PhP13 billion in the first semester) and Department of Education (PhP2.8 billion in the first quarter). Recto said the Philippines' ERP is “a responsible fiscal stimulus which will not induce swelling of the national debt, worsening of inflation or crowding out of private initiatives." The measures under the ERP, the NEDA Director General said, also include programs assisting overseas Filipino workers (OFWs) and vulnerable domestic workers such as the seafarers and land-based OFWs. GMANews.TV