MANILA, Philippines - Amid the recent downgrading of the United States' credit rating, Senate finance committee chairman Franklin Drilon wants the Philippine government to spend more money in order to stimulate the economy.
 
Speaking to reporters after the initial deliberations on the proposed 2012 national budget, Drilon expressed concern over the government's "underspending."
 
He cited for example the P20 billion lump sum appropriation for the Department of Public Works and Highways for infrastructure projects, of which only P500 million was spent.
 
"It's just a question of funds not being released and the funds not being available in the hands of the agencies involved to be able to disburse these," Drilon said.
 
The senator said he understands the Aquino administration has been wary about disbursing funds to minimize corruption committed in the past, but "all of these measures and reforms being undertaken on the ground have taken their toll on the capacity of government to spend on infrastructure."
 
Drilon hopes to see more government spending in the next 6 months to cushion whatever impact the downgrading of the US credit rating would have on the Philippines. The US, he noted, is a major export market for the country.
 
Drilon said the Senate finance committee and the inter-agency Development Budget Coordination Committee will meet after two months to make a better assessment of the effects of the US credit rating downgrade on the Philippines.
 
"Is this going to change our budget assumptions? Because obviously the budget was crafted without the downgrading being known. Will this change our projection for our GDP growth? This is critical because of the effect on unemployment and underemployment," he said.