Economy needs fixing in order to reap benefits
DAET, Camarines Norte--In the unfinished social hall of Camarines Norte State College, Budget Secretary Rolando Andaya Jr. told hundreds in this province that the country was weathering the effects of the global economic recession because of efficient fiscal policies, including the restructuring of value added tax system.
Andaya, the designated cabinet officer for regional development (CORD) for Bikol and former Camarines Sur representative, was in this province on Thursday for an information campaign on the global economic crisis.
"Our country has experienced a 4.6 growth in gross domestic product (GDP) in 2008 while many of our Asian neighbors, including Japan, Singapore, South Korea, are slumping," said Andaya.
But he admitted that the global recession has affected the national economy because demands for exports from the country were lowered. He said demands for export especially from US declined.
He got back at critics of administration. "They are saying that the national debt has ballooned under the term of President Gloria Macapagal-Arroyo. Lahat naman ng latest 'yon yung pinakamalaking utang. (Hinting that national debt is always greater under the term of the latest administration, regardless of who is the President.)
Opposition Senator Francis "Chiz' Escudero earlier said that the national debt increased during the term of President Arroyo.
Andaya said that the best way to measure the strength of the economy was by comparing national debt to corresponding GDP figure.
He said in 2008 the ratio of national debt to gross domestic product was at all time low since the term of former President Corazon Aquino.
"The national debt to GDP ratio under President Arroyo is 56.3 percent, compared to 67 percent during the Aquino administration, 58.8 percent during the Ramos administration, and 59.7 percent during the term of ousted President Joseph Estrada."
He said contingent liability or debts incurred by government-owned and controlled corporations but guaranteed by the national government was lower under the current administration.
He said the restructuring of the value added tax system kept the country afloat despite the global recession.
"It enabled us to live within our means without resorting to borrowing. Although it has to ask for a sacrifice among the people, it brings in benefits."
He also explained during the information campaign important information with regard to the economic resiliency package pushed by the government.
He said the stimulus package was meant as a preemptive action to counter the probable effects of the global recession to the country as opposed to the economic package of the US government, which was meant to bail out financial institutions.
He said under the economic resiliency plan, more government funds would be channeled to government agencies concerned with infrastructures and economic undertakings, including the Department of Public Works and Highways (DPWH), Department of Transportation and Communication, and Department of Agriculture (DA).
He said bigger amount of funds was also allocated to the Department of Social Welfare and Development (DSWD) so the agency could implement more projects for the poor. He also revealed that the DSWD had the greatest increase in budget among all executive departments at 118 percent.
"We have to fix things; we have to fix the economy so by the time the recession is over, we will reap the benefits."
He also explained the "use it or lose it" government policy. He said before government agencies could save unused allocated funds but now agencies have to use their allocated funds for the given time period or it would be taken back.
Also present during the information campaign were seven regional directors of various executive agencies who reported on government efforts to counteract effects of global recession.
DA-Bikol regional director Jose Dayao said 9, 814 bags of seeds were distributed to farmers in Bikol in 2008 while the National Food Authority had procured 16, 763 bags of play from rice farmers. "The region also posted a high growth rate in rice production."
Department of Education-Bikol Celedonio Layon said P327 million was spent for construction of school buildings.
DPWH-Bikol regional director Alejandro Roces said DPWH was focusing in the full rehabilitation of Quirino-Andaya Highway.
Meanwhile, Andaya said works for the Bicol River Basin Development and Management Project were ongoing. He said there was no problem with regard to construction of necessary facilities, adding that the project is closely supervised by the President.
He said further that some infrastructure projects such as irrigation canals and farm to market roads were being done by DPWH although the projects remain under the DA.
"It was only being completed through the DPWH since it is the DPWH that has the necessary equipment.
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