Expand social protection programs

          The 2009 budget has a higher allocation for social protection since it was crafted during the height of the food and fuel crisis in 2008. Conditional cash transfers for the poorest of the poor were put in place to address high rice prices and rising hunger.

          The ERP hikes the allocation of the Department of Social Welfare and Development for conditional cash transfers, adding another PhP5.0 billion (US$106.4 million) to cover an additional 321,000 poor households. Each of them will be given a maximum cash grant of PhP9,000 (US$191.5) a year.

          The ERP adds PhP1 billion (US$21.3 million) to PhilHealth, representing the full contribution of the national government to the national insurance program.

          Under the ERP, the allocation for the Technical Education and Skills Development Authority increases by PhP2 billion to help equip more Filipinos with skills that can help them take advantage of opportunities for income generation.

          The ERP added PhP1.97 billion (US$42 million) to the Department of Health’s budget to improve the facilities and manpower of primary and secondary hospitals.

Expanding social protection also involves the following interventions:

• Matching grants to local government units
• Student loans

          Spending for social protection is a fiscal stimulus in itself. The money that goes to the poorest of the poor is not kept in savings but is fully spent, boosting personal consumption. Meanwhile, supporting technical education scholars entails funding teachers’ salaries, and upgrading health facilities ramps up public construction.

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