Come again, Mr. President?

It is better to under-spend and put projects on  hold than waste taxpayers’ money to corruption or poor planning?

We thought the business of government is to source and use funds for public service and national development.

It’s called fiscal stimulation, stupid! That is, priming the economy essentially by pumping money into the system. Money that would generate purchasing power, boost demand for goods and services, and increase production.  

You just don’t grow cash in the vault. But since the guy is an economist, maybe he knows something we don’t.

“Sabi nila underspending daw. Pabigat daw sa ekonomiya ito, pero sa totoo lang daw ho, kung merong katiwalian, ibinulsa ang pera ng bayan, umikot ba sa ekonomiya, o lumobo ang bulsa ng iilan?” President Aquino was quoted by a major broadsheet as saying.

The President also defended Public Works Secretary Rogelio Singson’s move to review government projects.

“Palagay ko mas mabuti nang i-delay ang proyekto, pag-aralan na matiyak at talagang  kapaki-pakinabang po sa ating bayan,” he said.

Aquino was reacting to criticism that his administration’s underspending was hampering growth.

“We’re being criticized for underspending, but if you were in our position you would understand,” he said in Filipino.

He noted that 70 percent of infrastructure projects with allocated funds have turned out to be already completed. He said this made Singson decide to review the projects to avoid double-payment.

Under next year’s budget, agencies have to fill their vacancies before requesting for the release of funds.

This year and in previous years, funds for vacancies were automatically released to agencies, many of which diverted the money to more allowances, bonuses, and incentives.

House Minority Leader Edcel Lagman said he found it questionable that the President would include Congress, the Judiciary, and other independent institutions like the Commission on Audit in the pooling of funds for job vacancies.