"The P72-billion will have its own multiplier effect and this pump primes the economy to that extent," President Aquino said during an open forum with the officers and members of the Foreign Correspondents Association of the Philippines (FOCAP) on Wednesday at the Mandarin Oriental Hotel, Makati City.
In a bid to boost economic growth in the country, Aquino approved the P72-billion stimulus package for various infrastructure and reconstruction plans, including a support fund for local government units (LGUs).
The President pointed out that the stimulus package aims to help reach the growth targets for 2011 and 2012.
However, Aquino acknowledged the fact that the country may be affected by the global economic meltdown.
"The global economic situation is changing practically daily. And one is not isolated from the world economy. Therefore, things that we do here domestically would impact on economy positively. But, at the same time, we are not sure exactly what the negative effects of the world’s economic turmoil will have on us since it is still a developing story," the President said.
President Aquino said the LGU support fund amounting to P6.5 billion is part of the stimulus package. He said it will give an additional P10 billion to resettle and relocate informal settlers and families in danger zones.
The President said the government will be allotting P5.5 billion on various infrastructure projects under the Department of Public Works and Highways (DPWH), and P4.5 billion and P1.868 billion will go to the improvement of the Metro Rail Transit (MRT) and Light Rail Transit (LRT), respectively.The package will be spent on projects that will have high macroeconomic impact and will help the poor.