PNoy may be taking too much credit for 2010 economy – Diokno

President Benigno Aquino III may be claiming too much responsibility for last year's high GDP growth rate of 7.6%, a former cabinet official said Wednesday. Benjamin Diokno, former Budget secretary during the administration of former President Joseph Estrada, said two factors contributed to the high growth rate last year: the low GDP rate in 2009 and increased spending during the elections. "Last year's growth rate was pretty good because the economy grew by only 1.1% in 2009. It's easy to grow when you're coming from a low rating," Diokno said during the release of the World Competitiveness Yearbook for 2011 at the Asian Institute of Management on Wednesday. He said the economy likewise benefited from the increased spending from the private and public sector during the elections. "The major TV networks made a lot of money last year, but now their revenues are both down significantly. That kind of growth is not sustainable," he added. Diokno, who is also a professor at the University of the Philippines School of Economics, said Aquino cannot claim full responsibility for the 7.6% GDP growth since public policy usually works with a lag. "What you do today won't make a difference tomorrow. There is at least a nine-month lag, or in some cases such as in monetary policies, a whole-year lag. That (growth) was [by former President Gloria Macapagal-Aroryo]," he said. Diokno cited the example of the significant drop in public capital formation during the second half of 2010, the period when Aquino assumed his seat as President. "In the first half, Arroyo spent all her money to complete all her projects. But by the second half, Aquino was busy checking on all of Arroyo's projects, so nothing moved," he claimed. Diokno's comments came after Aquino chided his critics who said that he was not doing anything for the country. "Sabi po ng ating mga kritiko, wala po tayong ginagawa, siguro hinulog na lang ng langit ang nangyayaring pagbabago na ito (Our critics keep on saying that we are not doing anything. Maybe this development fell like manna from heaven)," he earlier said. — VS, GMA News