July 24 2007

Statement of Secretary Ignacio R. Bunye Re: Post SONA Statement

We are gratified with the warm and positive response to President Arroyo's SONA, as exemplified in the deluge of congratulatory and supportive messages we have received and monitored in public fora.

There is recognition that the economic gains we enjoy today are due to the efforts and hard work of our President. Only those who want her to fail persist in the line that our country is in the doldrums.

While there are still many changes to achieve, there is surely just as much to be proud of and be thankful for. There should also be no doubt that the President wants to end her term in 2010 with a solid foundation that her successor can continue to build on.

Let us all continue to help her attain this.

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Malacañang elated over people's positive response to GMA's SONA

Malacanang expressed elation today over the positive response of the people to President Gloria Macapagal-Arroyo's State of the Nation Address (SONA) which she delivered before the joint session of the 14th Congress Monday.

In her much-applauded 7th SONA before a packed House of Representatives, the President enumerated her administration's accomplishments even as she laid out an overarching vision to blaze the path for the Philippines to join the elite circle of First World countries in 20 years.

In a press statement this morning, Press Secretary Ignacio R. Bunye said the SONA was well-received as shown by the favorable reaction of the people, including some of her critics.

"We are gratified with the warm and positive response to President Arroyo's SONA, as exemplified in the deluge of congratulatory and supportive messages we have received and monitored in public fora," Bunye said.

Bunye said the President's tax reforms, sound fiscal management, and good governance have generated more investments in infrastructure, education, healthcare, and other social services.

"There is recognition that the economic gains we enjoy today are due to the efforts and hard work of our President. Only those who want her to fail persist in the line that our country is in the doldrums," he said.

Tthe President is determined to leave a lasting legacy when she leaves office in 2010, Bunye said.

He pointed out that while many changes have yet to be made, a lot have already been achieved that will make Filipinos proud and be thankful for.

"There should also be no doubt that the President wants to end her term in 2010 with a solid foundation that her successor can continue to build on," Bunye said.

"Let us all continue to help her attain that goal," he added.

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Urgent bills PGMA wants 14th Congress to approve listed

President Gloria Macapagal-Arroyo will convene the Legislative-Executive Development Advisory Council (LEDAC) soon to discuss important major bills needed to be passed by the 14th Congress.

The President announced this as she presided over the 26th National Economic Development Authority (NEDA) meeting in Malacanang this morning, a day after her successful 7th State of the Nation Address (SONA) at the joint opening of the 14th Congress.

In a press briefing, Press Secretary and Presidential Spokesman Ignacio R. Bunye said there is no definite date on the LEDAC meeting but as soon as Presidential Adviser on Political Affairs Secretary Gabriel Claudio gives a go signal, the meeting would be set immediately.

"Very soon because we need to work on so many important bills. We do not want to run out of time," Bunye replied when asked by reporters on the date of the meeting.

Bunye strongly believes that the stalled Japan-Philippines Economic Partnership Agreement (JPEPA) would be tackled in the proposed LEDAC meeting.

Among the proposed laws that the President wanted Congress to enact are the following:

1) Amendment to the Electric Power Industry Reform Act (EPIRA) for open access and more competition;
2) Expediting the computerization of the Commission on Elections (COMELEC);
3) A legislation that would improve long term care for the senior citizens;
4) The cheaper medicines bill; and
5) Stronger laws against election related violence and to fund poll watchdogs.

In her SONA last Monday, the President said that a law to transform the state's response to political violence must be enacted by Congress in a four-pronged approach:
1. Protecting the witnesses from lawbreakers and law enforcers;
2. Guaranteeing swift justice from more empowered special courts;
3. Harsher penalties for political killings; and,
4. Reserving the harshest penalties for the rogue elements in the uniformed services who betray public trust and bring shame to the greater number of their colleagues who are patriotic.

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PGMA fetes RP culinary team in Malacañang

President Gloria Macapagal-Arroyo feted today in Malacañang the Philippine National Culinary Team (PNCT) that won the gold award for its entry in the Gourmet Team Challenge (GTC) of the recently- concluded Hong Kong International Culinary Classic (HKICC) tournament last May 14.

The world-class winning Filipino chefs who were met by the President were Virgilio Timola, Arnold Guevarra, Fernando Aracama, Andy Tabotabo, Marge Villena, Anatollo Bleza, Nana Nadal, Salvador Trinidad and team manager J. Gamboa at Malacañang's Music Room this afternoon.

Team Captain Arnel Manuel failed to join the courtesy call on the President due to illness.

"Congratulations," the President said as she shook the hands of each member of the team.

The PNCT bested five other countries -- Hong Kong, Singapore, Japan, South Korea and Malaysia -- in the highly competitive GTC whose theme this year was the "cold buffet spread."

The cold buffet spread requires contestants to prepare a buffet composed of 27 different food items such as tapas, soup, appetizers, desserts, cakes, seafood and poultry platters in 24 hours and set them up on the table within an hour.

Gamboa related to the President that despite the seemingly impossible odds, his crack-team of highly skilled Filipino chefs stuck it out with only one thing on their mind: Winning.

With the win, the PNCT is now setting it sights on next year's International Culinary Classic in Singapore.

Also during the meeting, Gamboa told the President that his team was preparing for the Culinary Olympics which will be held in Germany in 2012.

She asked Gamboa if the team needed any financial assistance to prepare for their next competition to which Gamboa replied, "yes."

The President then instructed Malacañang Executive Chef Babes Austria, who was also present during the call, to get in touch with the Philippine Amusement and Gaming Corporation (Pagcor) to find out if any financial assistance could be extended to the team.

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PGMA approves P1.227 trillion proposed budget for 2008

A day after she delivered her 7^th State of the Nation Address (SONA), President Gloria Macapagal-Arroyo approved today the proposed P1.227 trillion national budget for 2008.

Budget Secretary Rolando Andaya Jr. told a press briefing this afternoon that the President gave the green light for the budget proposal during the 26^th board meeting of the National Economic Development Authority (NEDA) this morning in Malacanang.

The proposed national allocation is P91 billion higher than this year’s general appropriations of P1.136 trillion. Of the P1.227 trillion allocation, P11.5 billion will fund projects mentioned by the President in her SONA, Andaya said.

He said that the budget proposal will be submitted to Congress on Aug. 22, two days ahead of the deadline as set law.

The budget proposal supports the funding requirements of the infrastructure projects enumerated by the President in her SONA, Andaya added.

Under the proposed 2008 budget, he said, the focus is on priority sectors like infrastructure, education, health, science and technology, including housing and salary adjustments for the state workers.

Under the 2007 budget, the economic services allocation was pegged at 21.7 percent of the general appropriations or P246.19 billion. This was increased to 23.6 percent in the 2008 budget, or equivalent to P289.94 billion.

Also under the 2007 budget, funding for social services accounted for 28.3 percent of the national allocation or P321.982 billion. In the 2008 budget this will be increased to 29.7 percent or P363.985 billion.

Hereunder is a comparison of the budgetary allocations of five executive departments in 2007 and 2008:

	2007	2008
Department of Education	P141.4 billion	P145
Public Works and Highways	79.6	93.5
National Defense	55	56
Interior and Local Gov’t	53.2	52.5
Agriculture	18.9	21.7

Andaya said that the allocations for the following government agencies and programs will also increase in 2008:

Department of Science and Technology (DOST) P5.522 billion from P3.646 billion in 2007 (up 51 percent); Department of Health, up by 22 percent or P2.715 billion ( inclusive of P1 billion fund for the government hospitals). Philippine Sports Commission (PSC), P220 million from P149 million in 2007 (up 47 percent).

The top gainers in terms of budgetary allocations under the 2008 proposed budget are the Department of Education P3.320 billion; DOST, 1.876 billion; Health, 2.715 billion; DOTC, 2.594; DSWD, 776 million;

DPWH, 13.830 billion; National Housing Authority (NHA), P4.43 billion; salary adjustments, an additional of P30 billion which will be fully implemented next year, and P11 billion for the implementation of the salary standardization law implementation next year.

He added that the allocation for the Commission on Elections (Comelec) was pegged at P2.63 billion for the full poll automation in time for the ARMM polls and the 2010 national election.

Andaya stressed that the Priority Development Assistance Fund (PDAF) remains the same under the proposed budget, while the Internal Revenue Allotment (IRA) was increased by 14 percent from 2007’s P183.9 million to P210.3 million.

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Finance chief says P63 billion budget deficit target attainable this year

Finance Secretary Margarito Teves expressed confidence today that the country would be able to meet its budget deficit target of P63 billion this year due to the government's privatization scheme.

Teves disclosed in a press briefing that the government aims to raise P1.12 trillion in revenues this year from both tax and non-tax sources while expenditures are expected to reach P1.18 trillion.

"Options of selling or privatizing the Philippine National Oil Company-Energy Development Corporation (PNOC-EDC) and San Miguel Corporation (SMC) shares are meant to meet revenue targets for the year," he said.

Teves disclosed that the government intends to sell a total of 60 percent of the assets set for privatization of which 20 percent or P17 billion has already been sold.

He said the government is expected to generate P50 billion each from the sale of government shares in PNOC-EDC and SMC.

The Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC), according to Teves, have joined forces to further boost revenue collections.

The BIR, he explained, hopes to recover P20 billion of its collection shortfall in the first half, while the BOC had pledged to wipe out its P13 billion revenue shortfall.

Teves noted that tax administration measures have been adopted by the two collecting agencies like the technology based-projects to be implemented in the coming months.

The BIR will soon implement its Revenue Watch Dashboard and LGU Revenue Assurance while the BOC will pilot the use of fuel-marking technology in Subic and Clark to curb oil smuggling, he added.

Teves cited other options to meet the P63-billion budget deficit target, which represents 0.9 percent of the gross domestic product (GDP), by pursuing the privatization of big-ticket government shares in PNOC-EDC and SMC.

He said there are other small items up for sale under the privatization program like the Philippine National Bank (PNB) shares and the Fujimi property in Japan.

The Finance chief assured that the recent fiscal slippage would not have an immediate impact on the country's creditworthiness.

The increase in the 2007 national government deficit is not sufficient to reverse the trend of declining government debt ratios, he said.

Teves stressed that the government aims to further reduce its debt to 58 percent of GDP this year from 64 percent in 2006.

"Strong GDP growth, a sizeable primary surplus and a stable or appreciating exchange rate will ensure that the government's debt and GDP ratio will continue to fall this year," he said.

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24 JULY 2007		.