Press Release
October 6, 2008

ROXAS ON US FINANCIAL CRISIS: PREPARE FOR REAL LOCAL IMPACT 2009 BUDGET MUST BE REDESIGNED TO FOCUS ON AGRI, JOB CREATION

Liberal President Senator Mar Roxas today said the government must get real and be prepared for the impact of the United States financial crisis on the Philippine economy, warning that livelihoods of those in the export industry and in business process outsourcing (BPO) are at risk.

He said the 2009 budget must be redesigned to focus the country's resources towards creating jobs and incomes, especially in the agriculture sector, and providing social safety nets.

"Talagang dapat bantayan natin ang magiging epekto ng krisis-pinansyal ng Amerika sa lokal na ekonomiya. Kapag pumasok ang Amerika sa recession, depende na lang kung gaano kalalim at katagal, hihina ang kanilang 'aggregate demand' para sa mga produkto at serbisyo galing sa Pilipinas," he said.

"Ngayong nakikita na natin ito, dapat ngayon pa lang ay handa na ang gobyerno na saluhin ang domestic economy, lalo na ang export at outsourcing industries natin, kasama na ang mga pamilya rito na umaasa sa remittances ng mga kaanak nilang OFW sa Estados Unidos," Roxas said.

The Chairman of the Senate Committee on Trade and Commerce said the executive must consider major realignments in the present budget, taking into consideration the foreseen changes in the economic situation and focusing on basic needs of the people, particularly food self-sufficiency.

"Ngayon pa lang, unahin na natin ang mga bagay na tutulong sa atin na makaagapay sa parating na krisis. Una sa lahat, dapat siguruhin ang sapat na suplay ng pagkain sa murang halaga. Ito ang pinaka-epektibong safety net, na kahit may krisis sa panlabas, siguradong may makakain tayo," he said. "Dapat ding baguhin na rin ang pamamaraan ng paggastos ng pondo ng bayan. Halimbawa, nakita na natin na hindi talaga naging epektibo ang pamamaraan ng pagpondo natin sa sektor ng agrikultura, dahil nagkaroon na nga tayo ngayong taon ng food crisis," he said.

"Wala pang krisis sa Amerika noon, paano pa kaya ngayon? Kaya ngayon pa lang, tigilan na itong mga 'lump sum' na appropriation, dahil nakita na nating walang nagagawang mabuti ito at nasasayang lang ang pondo natin," he said.

He also reiterated his earlier proposal to put big-ticket infrastructure projects on hold as funds only tend to leak out of the economy. Instead, prioritize labor-intensive and job-creating maintenance spending, especially on irrigation systems and on classroom infrastructure and equipment.

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