BUDGET Secretary Rolando Andaya confirmed Tuesday that President Gloria Macapagal-Arroyo has signed the proposed P1.541 trillion budget for this year.
“It still follows the path of fiscal stimulus - more investments still investing in infrastructure, education and social services - but more on the moderate level based on the capability of departments to spend these amounts,” Andaya said, describing the 2010 national budget.
Arroyo did not veto anything on the amount of budget appropriation to a particular department but made some changes on the provision of the national budget.
Andaya disclosed that prior to the signing, the President directed to allot P64 billion from the pork barrel funds of Congress to debt service. This directive is under the anti-impoundment provision.
This directive bars government from spending the reserved funds until the Congress approved new revenue measures to support the additional P64-billion budget expenditure.
The P64-billion insertion will be allotted to pay for the debt of different government agencies.
Andaya said the Department of Public Works and Highways has the biggest share from the inserted budget. The Department of Education has the largest fund from the 2010 national budget.
The directive of Arroyo, according to the budget chief, serves as protection of the economy and will also help the next administration in balancing the budget this year.
Andaya said it is important to limit spending to be able to prevent deficit inflation in reaching 4.2 up to 4.3 percent of gross domestic product (GDP).
Instead, the target deficit will remain 3.5 percent of Gross Domestic Product particularly for this year.
If debt swells, Andaya said credit ratings of the country in the international financing agencies will continue to downgrade.
He, meanwhile, believed that with the status of the economy, it is not a right move for the next government to implement new tax measure. (Jill Beltran/Sunnex)