The Bureau of Internal Revenue (BIR) will continue to implement more stringent measures to increase its tax collections.

Finance Secretary Jose Isidro Camacho said the budget deficit requires the government to be merciless in the enforcement of tax laws.

"While the budget deficit remains a challenge, we are taking concrete steps to address it," he said.

Camacho said the BIR is cross checking the importation data of the Bureau of Customs (BOC) with its corresponding tax filings.

"In fact, this process has already helped the BIR identify such corporate tax delinquents and we have sent them demand letters with a payment deadline. If they fail to meet the deadline, they face closure and prosecution," he said.

Camacho said audit intensification for both corporate and individuals has also helped increase BIR’s tax collections.

The agency likewise will promote the wide availability now of online-payment option, he said.

Also, the passage of other revenue-generating reform measures that have been submitted to Congress is expected to enhance long-term revenues, Camacho added.

These include bills to create an excise tax, a tax on auto imports and sales, and a documentary stamp tax.

The finance chief said these measures are deemed necessary in meeting the revenue target for 2002. BIR’s tax collections account for 70 percent of the government’s revenue.

Camacho said government spending is on track, providing adequate stimulation to the economy while "remaining within the budget authorized by Congress."

"The economy is on track to achieve a 4 to 4.5 percent Gross Domestic Product (GDP) growth in 2002," he said.

GDP, the common measure of economic performance, already grew 4.1 percent for the first semester of this year.

Economic planners expected the domestic economy to have grown 3.9 percent to 4.4 percent in the third quarter.

President Gloria Macapagal-Arroyo has received a pledge of support from the Chamber of Real Estate and Builders’ Associations Inc. (CREBA) for her program to provide decent housing and basic services to homeless citizens.

In a statement issued last night by its national president Florentino Dulalia Jr., Creba acknowledged the President efforts to provide affordable housing to the masses, "synergizing the housing industry and its scores of allied industries, and creating more employment opportunities for thousands of workers and professionals, thereby promoting economic growth."

Dulalia said that responding to the call of the President, Creba is committed to build 325, 456 housing units within the next couple of years, as part of the effort to transform into reality the aspiration and dream of every Filipino to own a decent shelter for himself and his family.

"With this commitment, backed by our unity of purpose, vision, political will and conviction, all Creba developers throughout the country are ready to respond firmly and affirmatively to the challenges of a viable housing program for homeless Filipinos and thereby achieve the goal of enhancing the quality of life of every Filipino," Dulalia said.

Dulalia conveyed Creba’s support to the President during the signing of a memorandum of agreement (MOA) among the Department of Agrarian Reform, the Housing and Urban Development Coordinating Council, Creba, and other non-government organizations on equitable land access and the availability of at least 200, 000 hectares of land for housing and urban development for the next 20 years.

The National Anti-Poverty Commission and the Workers in the Informal Sectors (NAPC-WIS) today reported to President Gloria Macapagal-Arroyo that the organization of sidewalk vendors has undertaken a listing of "legitimate" members in their area and submitted this to the mayors in Metro Manila for relocation or integration to other forms of livelihood.

At the same time, Interior and Local Government Secretary Jose Lina, Jr. said the mayors have also conducted their own mapping to determine the number and location of sidewalk vendors, and identified alternative vending sites for them.

It was also reported to the President that the Development Bank of the Philippines has come up with P7-billion window program for 17 Metro Manila local government units, plus Angono, Rizal, that can be used for alternative livelihood plans for the street vendors.

The local executives will be encouraging the vendors to join existing cooperatives so that those who want to shift to other means of livelihood can be accommodated.

Workers in the Informal Sector (WIS) Representative Susanita Tesiorna recognized the efforts of the government in addressing the issues of the vulnerable sectors in Metro Manila, at the same time emphasizing support to the government efforts in clearing the sidewalks in the metropolis and giving back the streets to the citizenry.

Tesiorna reported to the President that a meeting between the Metropolitan Manila Development Authority (MMDA) board and the NAPC revealed the following:

• Quezon City, according to its survey, has 7,088 vendors, of which 2,588 vendors are located in critical areas;

• Muntinlupa has provided 186 vendors with free rental of stalls, allowing these vendors to pay only a market entrance fee;

• The city government of Mandaluyong has provided the amount of P5,000 each for vendors to help finance deposit payments for private market stalls while a private bank has allowed the use of its vacant lot to be converted into jeepney terminals with provisions for vendors;

• In Makati, the Office of the City Mayor facilitated the bidding of food ambulant stalls as a replacement for the previous jeepney stalls for informal sectors;

• In Pasay, the city government is requesting the assistance of the vendors themselves to establish an alternative vending site for 2,000 vendors, with the city government providing assistance in the negotiation for the purchase of the site;

• In San Juan, the Office of the Mayor has provided the amount of P7,500 to support the microfinance activities of the vulnerable street vendors who are willing to use vacant public market stalls;

• The Caloocan City government is undertaking several initiatives to help the vendors in their respective areas.

The Land Bank of the Philippines (LBP) today reported to President Gloria Macapagal-Arroyo that it will make the amount of P210 million available to Quedancor and/or farmers cooperatives and small coconut farmers organizations which will serve as loan conduits to qualified individual small coconut farmers.

The Land Bank said during the Fourth National Anti-Poverty Commission (NAPC) meeting in Malacaņang that under this program, small coconut farmers can avail themselves of a loan averaging P10,000 each within the next six months.

The LBP will also lend the amount of P90 million to accredited coconut farmers cooperatives that will serve as credit conduits to oil mills and other coconut processors.

Philippine Coconut Authority Administrator Danilo Coronacion said there are 1.6-million coconut farming families deserving of livelihood assistance. They include small farmers with landholdings of five hectares and below.

Livelihood projects may include direct copra marketing, farm diversification through high value crops, intercropping, livestock raising, aquaculture, and production of other coconut by-products.

President Gloria Macapagal-Arroyo will be the guest of honor and speaker at the celebration of the Urban Poor Week 2002 at the Quezon City Memorial Circle on December 7, 2002.

According to Presidential Commission for the Urban Poor (PCUP) Chairman Percival Chavez, this year’s celebration is a one-day fair and celebration in three major cities across the country. It will focus on two of the five cornerstones of the anti-poverty program of this government -- asset reform and livelihood.

"This focus is hinged on the growing recognition that security of land tenure and livelihood are at the core of the urban poor’s struggle towards a better life," Chavez said.

This year’s celebration aims at showcasing President Macapagal-Arroyo’s programs and accomplishments on security of land tenure and livelihood and the role the urban poor sector plays in bringing these issues to the government agenda, Chavez said.

To stress the role of the urban poor groups in these efforts, PCUP said it has invited urban poor leaders to share their perspectives on current developments concerning general programs and specific projects.

The country’s key economic indicators continued to show positive growth despite the shortfall in revenue collections that has resulted in a higher budget deficit, according to the Department of Budget and Management (DBM).

In a statement, DBM Secretary Emilia Boncodin said for the past 10 months of this year, the inflation and interest rates are at "all-time" lows, with inflation averaging 3.2 percent.

Boncodin said that the 3.2 percent average inflation rate is way below the target of 4.5 percent to 5.5 percent. The 91-day Treasury bill rate is averaging 5.5 percent, also below the estimated 7 percent to 8 percent, she added.

Boncodin said that the government is confident that it can meet its 2002 projection of 4 percent growth of the gross domestic product (GDP). The GDP growth for the first semester of 2002 was 4.1 percent.

The DBM chief, however, admitted that because of the shortfall in revenue collections, the national government is revising its budget deficit target for 2002 to 5.6 percent of GDP and its 2003 budget deficit target to 4.7 percent of GDP.

Boncodin expressed the belief that both these revised figures will allow the government to achieve its GDP growth target for 2002 and its 4.2 to 5.2 percent GDP growth target for next year.

"This strong level of economic growth will ensure that we are able to continue to create additional jobs, increase access to health care and education, and provide new opportunities for people throughout the country," she said.

Boncodin said that compared with the original estimate of zero growth, the export sector grew by 7.8 percent year-to-date while imports showed a 7 percent growth compared with an estimate of 6 percent.

She said that strong remittances from expatriate Filipino workers have continued to fuel domestic consumption.

According to Boncodin, the Macapagal-Arroyo administration is committed to fiscal discipline and "only our untiring determination to do better for the country over the medium term will justify our actions today."

"If the final decision is refund, I will make sure that one way or another the consumers -- you, the consumers – will get your refund."

This was the assurance given by President Gloria Macapagal-Arroyo to the people in connection with the Supreme Court decision on the overcharging case against the Manila Electric Company (Meralco).

In her speech during a dinner meeting with the Chamber of Real Estate and Builders Association (Creba) in Malacaņang last night, the President assured that nothing will stand in the way of her foresworn duty to serve the public interest.

Her assurance came as part of her disclosure of the administration ‘s policy on the Meralco issue:

"First, we are taking steps to ensure the financial viability of Meralco as an institution"

"Second, the decision of the Supreme Court regarding Meralco’s obligations shall be implemented."

"Third, I am duty bound to ensure that there will be no crisis in power services as a result of these financial problems."

The President said her mind is clear on how to deal with the Meralco issue. "It will be in the context of the larger power sector as the key reform area facing us today," she added.

The President said that through the Department of Energy, the government is shepherding a series of consultations that began the other day between Meralco and its creditors.

"We will see to it that a rehabilitation plan is set up that is fair to creditors, investors and, most of all, the public," she said.

She also said "we shall await the finality of the (Supreme Court) decision and then act accordingly."

Emerging from a meeting last night with President Gloria Macapagal-Arroyo, the Chamber of Real Estate and Builders’ Association (CREBA) and the Subdivision and Housing Developers’ Association (SHDA) have jointly pledged to build more than 500,000 housing units until 2004, in line with the Chief Executive’s thrust to provide decent and affordable housing to the homeless.

In a press briefing at Malacaņang this afternoon, Secretary Michael Defensor of the Housing and Urban Development Coordinating Council (HUDCC) said CREBA committed 325,425 housing units while SHDA pledged to build 236,076 units.

Defensor said CREBA national president Florentino Dulalia Jr. has assured that all CREBA developers throughout the country are ready to respond firmly and affirmatively to the challenge of a viable housing program for the homeless Filipinos.

Defensor said SHDA’s commitment of 236,076 housing units embodied in their program called SHDA Pledge 2002 are distributed as follows: 77,000 units of low-cost housing amounting to P28.9 billion, 33,084 socialized housing units worth an estimated P6.6 billion and 66,423 middle-income units worth P33.2 billion.

According to SHDA Chairman Teofisto Guingona III, SHDA Pledge 2002 is a showcase of what the government and private sector can accomplish together if they harmonize their objectives and work for a common goal.

"This is our way of returning the support of the housing sector given by the President, Secretary Defensor and the key shelter agencies," Guingona said.

Last night, the President also witnessed the signing of a Memorandum of Agreement among the Department of Agrarian Reform, HUDCC, CREBA, SHDA, the Builders Alliance Toward Action (BATA), National Real Estate Association (NREA), the Organization of Socialized Housing Developers’ Association (OSHDP) and the Women in Shelter and Environment (WISE).

The MOA would provide equitable land access and make available at least 200,000 hectares of land for housing and urban development for the next 20 years.

Defensor said the MOA is expected to reduce by at least 50 percent the current shortage of housing units estimated at 5 million by 2010.

Meanwhile, Defensor announced that the HUDCC has recently carried out a series of reforms to make housing more affordable for low-salaried employees.

He said PAG-IBIG has lowered interest rates as follows:

• For loans P150,000 and below, the interest rate will be 6 percent;

• For above P150, 000 but not more than P225,000, the interest rate will remain at 9 percent;

• For loans above P225,000 but not more than P500,000, the interest rate was reduced to 10 percent;

• For loans above P500,000 but not more than P2 million, the interest rate is pegged at 12 percent, provided the borrower pays on or before the due date.

"We have increased our loan to collateral value to 100 percent for loans below P150,000 to P500,000 which will further lower if not eliminate the equity requirement of home borrowers," Defensor said.

He added that PAG-IBIG has also extended the loan term from 20 to 25 years for loans over P500,000 to further reduce the monthly amortization of homebuyers.

"We have also allowed the refinancing of an existing mortgage loan with an institution acceptable to PAG-IBIG. This is to enable qualified members to benefit from the low interest rates," he said.

At the same time, the HUDCC chief said PAG-IBIG member-borrowers are no longer required to complete the 24 months membership to qualify for a housing loan. The amended guidelines now allow a member to make a lump sum payment equivalent to 24 monthly contributions to meet this requirement.