Measures to ensure that pump-priming funds are disbursed in a timely manner and channeled to quality projects are being implemented, the government yesterday said in response to concerns that efforts to prop up the economy could end up being wasted.

The government, Budget Undersecretary Laura B. Pascua yesterday claimed, has so far managed to fast-track the release of funds to various agencies, enabling them to implement projects, despite having to deal with a reenacted budget for the first two months of the year.

"January to February disbursements grew by 12% with infrastructure spending growing by 60%," she said in a text message.

"We had released P78 billion of the P100-billion frontloaded additional expenses of DPWH (Department of Public Works and Highways), DoTC (Department of Transportation and Communication), DepEd (Department of Education) and DA (Department of Agriculture) even under [the] reenacted budget."

The Asian Development Bank (ADB) on Tuesday called on the Arroyo administration to ensure that its P330-billion stimulus package was spent on infrastructure and on programs that would help the country’s most vulnerable sectors.

The bank also expressed concerns about the impact of the 2009 budget’s late approval, warning that it would affect the stimulus and could dent the country’s growth prospects.

This year’s P1.415-trillion outlay was signed just last month, forcing the government to operate under a reenacted budget for the first quarter. Budget officials, however, have insisted that priority projects would not be affected. Among others, they said some agencies had yet to completely use last year’s funds due to limited absorptive capacity.

Ms. Pascua sought to assuage the concerns, saying "We are taking measures to speed up the [disbursement] and [ensure] spending quality."

Augusto B. Santos, deputy-director general of the National Economic and Development Authority (NEDA), said the inter-agency Development Budget Coordination Committee (DBCC) was monitoring fund releases.

"These are carefully monitored by the DBCC through the Budget department. The funds will not be released if they are not yet needed. The [agency] budget is in accordance with the [national] budget, which is itemized," he said in a telephone interview.

Transparency, he added, is being implemented via the participation of civil society groups.

"Procurement is done in accordance with our Procurement Law. We are after prudent spending," Mr. Santos said.

He also claimed the components of the stimulus package, particularly additional funding for conditional cash transfers (CCT), were effective in promoting growth while at the same time helping the poor.

"The CCT is quality spending and it is praised by countries around the world," he said.

"The budget also invests on infrastructure. These items are meant to address our long-term and short-term needs. Capital expenditures also lead to job creation."

Jude Esguerra, an economist and executive director of the Institute for Popular Democracy, said transparency was paramount as stimulus funds could end up being diverted to 2010 election campaigns.

"The money may go to electioneering," he said. "If you look at the 2009 budget, it is filled with lump sums that are not specific. What we need are more transparency rules and less discretion from Malacañang."

Mr. Esguerra said the government should provide more support to socialized housing programs, CCTs, and labor-intensive projects since these would help provide employment while supporting the economy.