Thursday, February 15, 2007 Palace hopes to hasten debt payments
MALACANANG is confident that the government would be able to accelerate its debt payment with the continued improvement of the economy and sustained fiscal reforms.
Press Secretary Ignacio Bunye said the administration acknowledged that the country has a huge debt but "for the most part inherited."
"But we are denting it through hefty prepayments. With our highly laded fiscal reforms in place and the improvements in economy, we should be able to accelerate debt payments, strengthen our position and carry in more investments and jobs," said Bunye, who is also Presidential spokesman.
Bunye said revenue collection continues to be on target and they expect a sustained windfall that is backed by good governance and anti-corruption measures.
"Our credit outlook is solid and the bullish horizon for growth is fueled by more investments in mining and oil exploration this year," he added.
The Department of Finance (DOF) said they expect the National Government's debt to rise to P3.923 trillion this year from P3.914 billion in 2006.
As this developed, Bunye said President Gloria Macapagal-Arroyo wants a tighter, lean and mean 2007 budget that is focused on modernizing the economy, providing the infrastructure to boost investments and jobs, and bringing reliable basic services to every household.
Bunye said a tighter 2007 budget would enable the government to "target clear priorities, enforce discipline in spending, and increase confidence in the
Philippines".
"This is a people's budget that will be spent on the people's needs and nothing else," he said.
Arroyo earlier said there would be line vetoes in the P1.126 trillion General
Appropriations Act of 2007 but she has yet to receive the list of items to be vetoed from Budget Secretary Rolando Andaya Jr. who is still going over the budget.
Both Arroyo and Andaya said line vetoes are normal and done almost yearly. (JMR/Sunnex)
