With FY 2009 General Appropriations Act now signed
ANGARA EYES FASTER EXPENDITURE OF INFRA MONEY;
DEMANDS BUDGET OVERSIGHT

Senator Edgardo J. Angara today said that the country is now armed with the fiscal muscle to face the Global Financial crisis, however, he emphasized that we need to innovate and hasten up our expenditures especially on infrastructure projects which can produce jobs and stimulate the economy. This, he said, should be done with Congress exercising its oversight functions.

"Today, we face a global recession, which we are not ready for. It is a negative spiral of consumers not spending and deflating consumer prices, which will ultimately lead to production cuts, worker layoffs and to a sharper slack in demand. In a globalized world, there is no safe haven. In the Philippines, all of us will be affected. We are seeing this now as many of our people are being laid-off, if not, subjected to rotating schedules and shorter work periods. Closing our eyes to the new reality facing us is pointless," said Angara who chairs the Senate Committee on Finance.

He added, "Last week, the President has already signed the FY 2009 General Appropriations Act which includes new money for infrastructure projects. Having funds available is useless if they are not readily accessible. Thus, the Committee on Finance worked closely with the Department of Budget and Management and they gave their commitment to let projects for 2009 be bid on today, cutting down the time lag between the bidding process and the actual initiation of the project. This means we can start building those projects now when we need them, not six months into 2009."

Last week, President Gloria Macapagal -Arroyo has already signed into law the P1.414 trillion 2009 General Appropriations Act which Angara said provides the country enough fiscal strength to pump-prime the economy through infrastructure and social expenditure.

Angara added that the beauty of this approach on building infrastructures is that it addresses two of our problems at the same time. By building roads, school houses and bridges we prepare for the long-term health of the economy, especially that of the countryside, leading to opportunities for employment.

He added that looking at the short-term prospects is also good. Since roads and bridges don't build themselves, we offer a ready cushion for the crisis for our citizens by engaging in infrastructure spending.

Beyond economic concerns, infrastructure spending is also vital to poverty reduction. International economic data suggests a strong connection between agricultural development and poverty reduction. Since infrastructure fosters productivity in agriculture, it lifts tens of thousands of farmers out of poverty.

Angara strengthened his arguments saying, "Some observers may ask, what is the relevance of poverty reduction to efforts to strengthen an economy?" He responded in a statement rooted in fundamental economic principles. "The economic history of nations tells us that economic growth without a human face is short-lived. Destitution will, sooner or later, weigh down growth. Further, focusing on growth alone is incomplete and will only exacerbate inequities. The poor must be allowed to participate in the growth process. Redistributive reforms are needed. Put simply, poverty reduction is essential for sustained growth," he added.

Angara added that a Congressional Oversight Committee on Budget will be created to ensure that the allocations will be spent and was spent on its mandated projects.

He added that the Congressional Oversight Commission on the Expenditure Budget will be created in order to monitor and oversee the proper expenditure on projects and programs of the various departments of the government.