PRESIDENT GLORIA ARROYO on Tuesday cited the strong fiscal performance of the national government, particularly its strict implementation of programs on improving cash flow and revenue collection, for the lowering of the budget deficit which resulted in the "freeing up" of funds that can be used for priority projects nationwide.
The President extolled the Philippines’ "rosy economic outlook" during a round table discussion in Malacanang with some members of her economic team on "the strong performance of the national government as well as the improvement on operational efficiencies of government corporations and what they mean to the poor."
Among those present were Budget Secretary Rolando Andaya Jr., Presidential Chief of Staff Joey Salceda, Philippine Amusement and Gaming Corporation (PAGCOR) Head Efraim Genuino, and outgoing Government Corporate Counsel and incoming Solicitor General Agnes Devanadera, said a government statement.
"Maraming konkretong hakbang ang ating isinusulong upang makamit natin ang mas magandang estado ng ating ekonomiya ngayon. Kasama na dito ang patuloy na pagliit ng ating budget deficit," the President said at the beginning of the discussion.
According to Andaya, the amount of money the government was supposed to borrow to bridge the country's deficit was halved from P125 billion to roughly P62 billion for 2006 due to the "overachieving" performance of the government on its fiscal reform programs.
He said that because of the lowering of the budget deficit, the government is now able to deliver a strong social payback to the people, among which are:
* An additional P200 billion has been added to the 2007 national budget that will be used to fund priority projects concerning education, health and infrastructure;* P13 billion has been released to the more than 1.2 million government employees in the form of the P1,000 increase in their Cost of Living Allowance (COLA);* Additional teachers and policemen can now be hired; and* The 10 percent salary increase for all government employees will proceed as planned starting July 2007.
Salceda, meanwhile, said that aside from the lowering of the budget deficit, the economy grew by 5.4 percent last year, a record of sorts for the country.
He also said that the country's debt service had decreased considerably and this allowed for more funds to be used for the government's priority projects.
"Our debt service last year was pegged at P864 billion but due to Secretary Andaya's brilliant leadership at DBM and because of the strong overall fiscal performance of the government, it was lowered to just only P601 billion," Salceda said.
Genuino, on the other hand, said that under the leadership of President Gloria Macapagal-Arroyo, PAGCOR's profit had doubled and allowed more "social projects" to benefit more and more Filipinos.
Genuino said that a big chunk of the increasing PAGCOR income is being used to fund social payback projects for the people, including the administration’s "Patubig ni PGMA."
During the discussion, Tess Lumactud, chairperson of Barangay Baseco in Manila, and one of her constituents, Rosalie Cabinan, said the "Patubig ni PGMA" has at least 250 beneficiaries in their area.
Cabinan said that by being assigned as caretaker of the water project in Baseco, she is able to earn enough and send her children to school.
Devanadera, meanwhile, said that under the directive of President Arroyo, she was able to aim for "Zero Backlog" in the delivery of legal services to government corporations which need the services of the office of the Government Corporate Counsel.
Under the Zero Backlog scheme, all requests of corporations for legal opinions and contract reviews are undertaken with dispatch so that the requesting corporations will have no downtime in fulfilling their mandate.
Devanadera said she managed to double her agency's output of providing legal assistance and legal opinions and was able to reach 100 percent accomplishment in 2006.
The President reacted happily on the report of Devanadera, saying this would further help in eliminating red tape in government transactions.
The President has been extolling the strong cash flow and revenue collection of the government's revenue generating agencies due to her administration’s implementation of radical fiscal measures such as the Expanded Value Added Tax (EVAT) Law and the National Attrition Law.
The EVAT Law increases the VAT imposed on goods and services from 10 percent to 12 percent, while the National Attrition Law imposes fines and other penalties on the revenue collection agencies such as the Bureaus of Customs, Internal Revenue and Immigration if they fall short of meeting their specified collection targets.
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