The government will pour up to P30 billion into infrastructure and education projects in the second quarter of the year, Malacañang officials said yesterday, belying opposition charges that the government is prioritizing spending for President Arroyo’s initiative to amend the Constitution.
Budget Secretary Rolando Andaya Jr. said the money has already been released to fund "pump-priming" programs aimed at revitalizing the economy.
"Not a single centavo was spent for the people’s initiative, but billions for the people’s welfare," he noted.
The funding includes P2.1 billion to address the public school classroom shortage, P1 billion for textbooks, P2.6 billion for irrigation systems, P1 billion for new airports, "among other activities that would erase backlogs in these sectors and spur local economies where these projects will be implemented."
Andaya said the "frontloading of a big bulk of infra funds" was resorted to so government agencies could take advantage of the "good weather window" brought by summer.
The early release of P6.4 billion for infrastructure and P5.3 billion for agriculture was ordered by Mrs. Arroyo "so these can be undertaken before the onset of the typhoon season."
"For example, even before classes had ended we released the amount for classroom construction so we can rush their completion in time for the opening of classes in early June," Andaya said.
This is in line with President Arroyo’s instructions to her Cabinet last month to launch a "second quarter storm" of capital investments beginning this month.
The funding releases follow last year’s program of expenditures, Andaya said. Under the Constitution, the 2005 national budget remains in effect until Congress passes the P1-trillion budget for 2006.
Other education expenditures include P500 million for scholarship vouchers to private high schools and P500 million for college scholarships.
The infrastructure menu includes the release of P500 million for the connection of the Metrorail 3 line to the Light Rail Transit’s line 1, or from West Avenue in Quezon City to Monumento in Caloocan; P500 million for water supply; and P500 million for flood control projects to mitigate the effects of La Niña.
"We are bringing electricity to hundreds of barangays and we are lighting streets, courtesy of the P500 million fund released for these," Andaya said.
Of the P3.1 billion released for housing, about P1.3 billion will be used to build communities for squatters that will be displaced by the government’s railway projects north and south of Metro Manila.
On the law and order front, the Philippine National Police will receive funding to hire 3,000 new officers and acquire 500 new patrol cars.
Andaya said the "pump-priming" programs "just represent the first installment" of the administration’s planned expenditures.
"We are hoping that our legislators pass the budget soon so we can also fund the new programs in it," he said.
Mrs. Arroyo wants the Constitution amended so the country can adopt a parliamentary system to replace the current US-style presidential form of government, which she says slows down the passage of legislation needed for the country’s economic recovery.
The constitutional amendment initiative is expected to cost from P1 billion to P3 billion.
However, Minority Leader Francis Escudero has said it would be "immoral" if not illegal for the administration to use taxpayer money for this purpose.
He pointed out that the Constitution provides that no government funding should be spent unless covered by an appropriation bill passed by Congress.
He disagreed with Palace officials’ view that the funds could come from savings or the so-called "contingent fund" in the government’s annual budget.
"How could there be savings when we are borrowing just to finance government operations? How could there be savings when we are in deficit, meaning we spend more than what we earn?" he asked. "As for the contingent fund, this is used in case of natural disasters or calamities, unless they are saying that Cha-cha is a disaster or calamity."