MANILA, Philippines - The government is preparing a second economic stimulus package next year to ensure continuation of President Arroyo’s pump-priming program, a Cabinet official said.
Budget and Management Secretary Rolando Andaya said the government would likely include another Economic Resiliency Package (ERP) in next year’s budget worth at least P160 billion.
This would be used for fast-moving infrastructure projects that have a big impact on jobs and consumer spending, Andaya said.
“We want it included to ensure there’s a continuation of the stimulus program,” he told reporters.
The emerging budget for 2010 is roughly P1.5 trillion, higher than the current budget of P1.415 trillion.
He said the final size of the second ERP would largely depend on the capacity of government departments and agencies to utilize their budget allocations this year.
State agencies are having problems maximizing the amount of funds allotted for infrastructure projects.
They still have very low absorptive capacity which is retarding the speed of project implementation and, thus, delaying its direct impact on the economy.
The first government’s stimulus package amounted to P330 billion. This has been allotted to pump prime the economy and cushion the country from the impact of the global financial turmoil.
Economic managers claim that about 60 percent of the ERP has been unleashed into the economy during the first six months.
However, in the six-month budget report, government data revealed that the deficit hit P153.4 billion or below the P155-billion ceiling because of the failure of state agencies to spend their budget.