MANILA - THE Philippines is planning more spending, including a 300 billion peso ($9.3 billion) stimulus, for 2009 to steer the country from recession, presidential aides said on Tuesday.

The government plans to execute the plan in the first half of the year to prevent the economy from contracting, which could force many Filipinos out of work, they added.

'We need fast-moving projects (and) we need to be able to implement these during the first six months of 2009. That's the time for us to recover. If we miss that train, it would be difficult,' Budget Secretary Rolando Andaya told reporters.

Economic Planning Secretary Ralph Recto said President Gloria Arroyo discussed the plan with her most senior economic aides on Tuesday. The stimulus plan is equivalent to four per cent of the 2009 national budget, he added.

The goal is to keep the gross domestic product (GDP) growth rate at the higher end of the 2.7-4.7 per cent target range, Mr Recto told reporters.

He said the government would use 'every peso' of savings from the national budget and use that to 'create as many jobs as possible.'

The economy grew 4.6 per cent in the nine months to September, down from the 7.2 per cent seen in 2007 as commodity exports suffered from the global financial meltdown that has also seen thousands of Filipinos laid off abroad.

Unemployment in the Philippines stood at 6.8 per cent in October.

The priority would be 'easy to implement projects, like repair and rehabilitation of roads, hospitals, school buildings, irrigation facilities,' which Mr Recto said would allow Manila to gear up when the world economy recovers.

Manila is also 'doubling' direct cash transfers and social protection programmes for the two in five Filipinos who are officially considered poor.

That will go along with a 300 billion peso stimulus that would go into tax rebates that could see corporations' tax rates drop to 20 percent from 30 per cent.

'The equivalent of that in effect is a stimulus of 20 billion pesos in corporate Philippines,' Mr Recto said.

Higher exemptions would be made for individual taxpayers, while state-run banks and corporations would be ordered to pay their share in the package, including in the form of health care benefits and pensions, he added.

'That will also improve personal consumption (and) help spur the growth of the economy.' Finance Secretary Margarito Teves said he understood Congress was open to raising the 2009 budget deficit to 162 billion pesos from the previous government proposal of 102 billion pesos. -- AFP