We are already geared to win the war against corruption because more people are helping by bringing these dastardly acts out into the open.

The challenge here is for others to come out and for media to help expose them. . We recognize media and civil society as our strong partners in this.

CAMP CASTANEDA, Silang, Cavite – President Gloria Macapagal-Arroyo announced here today that the political noise has been bypassed by the investment community as the Filipino people have now entered "the frontier of peace, development, solidarity and prosperity."

The President made the announcement in her address at the 28^th Graduation Rites of the Philippine National Police Academy (PNPA) Sansiriningan Class 2007 at Camp Gen. Mariano Castaneda in Silang, Cavite.

"The din of political noise has largely been bypassed by the investment community. We have crossed the sound barrier; we have entered the frontier of peace, development, solidarity and prosperity," the President said as she expressed elation over the big surge of investments in the country in the past two months.

She said "the surge of investments is coming from all points of the compass, doubling in the first two months of 2007," in contrast to pronouncements of the administration critics that no investments, from both local and foreign, would be coming in due to the political noise.

"The trend is now clear that political stability and democratic continuity is a given for the Philippines and investors are putting their stake in our vision for the future," she said, adding that the government and all its institutions including the police, the fire departments, and the jail management bureau are closing ranks to clean up the mess of the past.

The Chief Executive explained that because of the successful implementation of her administration’s strict reform and fiscal measures, the foreign community now views the Philippines as the next country in the Asian region to become a developed nation in the near future.

The President also said that the government’s focus in the economy is paying off in terms of a strong peso, low inflation rate, a robust stock market, rapid inflow of foreign investments and creation of over five million new jobs in the last six years.

"Our unemployment rate is the lowest in a long time and our poverty rate is at the lowest as well," she stressed.

"This is most of all a tribute to Filipinos here and abroad who have kept faith in the great potentials of our nation, a faith that has spread far and wide and across the Asia-Pacific," President Arroyo said.

The President’s speech hailing the brisk inflow of investments came on the heels of the report by the Department of Trade and Industry that investments in the Philippines increased by 125 percent to reach P26.8 billion in January-February 2007 compared with just P11.9 billion in the same period of last year.

DTI Secretary Peter Favila said that of the total amount, the Philippine Economic Zone Authority (PEZA) approved 80 projects worth P19.97 billion.

The Board of Investments (BOI), on the other hand, approved 49 projects with a total value of P6.81 billion.

President Gloria Macapagal-Arroyo signed today Republic Act No. 9401, or the 2007 national budget which allocates P1.126 trillion "as social payback to the people for the fiscal turnaround of their government," Budget Secretary Rolando Andaya Jr. said.

He said the President eschewed the traditional signing rites in Malacanang usually graced by members of Congress and instead signed the 1,162-page law in her Study sans fanfare.

"The budget will cure underspending, spur growth, fund infrastructure and finance human development in a manner that will be transparent," Andaya said.

To reflect the increase in revenues on expenditures, Andaya said all departments would get an increase on their allocations this year.

The Department of Education leads the list of recipients with a budget of P128.6 billion, P15.4 billion bigger than last year’s budget.

Included in the DepEd’s budget is P2.05 billion for the hiring of 16,390 teachers and P5.37 billion to build 7,326 classrooms.

Next is the Department of Public Works with P71.2-billion allocation, P28.7 billion bigger than what it had last year. "This will enable it to construct or upgrade 3,251 kilometers of roads and 1,312 flood control systems among others," Andaya said.

By sectoral allocation, economic services including agriculture, trade and natural resource will get 21.8 percent of the budget pie, while social services, consisting of health and education spending, corner 28.1 percent.

"The figures don’t lie: Tax dividends are heading towards the nation’s schools, day care centers, and hospitals," Andaya said.

General public services, on the other hand, account for 16.2 percent of this year’s spending; defense, 4.8 percent; and debt service, 28.3 percent.

The amount for interest payment is, however, on the decline to P303 billion this year from the 2006 level of P309 billion, "a trend that will be sustained in the years to come."

Interest payments this year could further dip if the peso continues to strengthen or stabilize below the 50 to a US dollar exchange rate," a development that would free more resources for social spending," Andaya said.

By object of expenditure, MOOE or maintenance and other operating expenses, make up the bulk of the budget, requiring P659.2 billion, or 58.5 percent of total programmed expenditures.

The amount already includes the debt service fund. The other big-ticket item in this cluster is the Internal Revenue Allotment, or local government share from national taxes of P183.9 billion.

Personal services, or the amount for payroll and pension contributions of active government employees and pension of veterans and retirees, will eat up 29.78 percent of the budget or P335.3 billion.

On the other hand, capital outlay spending this year is pegged at P131.4 billion, representing 11.68 percent of the spending ceiling.

In addition to roads and flood control, government will spend P8.3 billion to improve airports, and P193 million for new lighthouses and ports.

Andaya described the 2007 national budget "as catalogue of reimbursements for the taxes paid by the people, a redemption of our pledge to issue tax rebates in kind."

"The new initiatives are diverse as they will be felt on the ground. This budget will enable us to provide free meals to 1.5 million youngsters as incentive for attending class, recruit 3,000 policemen, send about 7,000 scholars to schools and colleges, immunize two million children, establish 2,400 outlets of Botika ng Barangay, and provide medical insurance to 4.4million poor persons, among others," the budget chief said.

"We are also setting aside P10 billion to repair storm-damaged areas," he said, referring to the Calamity Assistance and Relief Efforts or CARE funds.

Andaya said purchase of goods and services will be compliant with the Procurement Reform Act, which installs safeguards and civil society monitors in government bidding communities.

"In the budget execution phase, we will see to it that government will only spend for the right things, at the right price, for the right purpose, and by the right agency," he added.

This year’s P1.126 trillion budget is premised on total revenues of P1.118 trillion, resulting in a deficit of P63 billion, the last one to be incurred before government achieves a balanced budget in 2008.