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Friday, March 23, 2007
Arroyo signs into law P1.126T budget
MANILA -- President Gloria Macapagal-Arroyo on Thursday signed the P1.126 trillion 2007 national budget (Republic Act 9401), which Malacañang called "social payback budget."
Budget Secretary Rolando Andaya Jr. said Arroyo skipped the traditional signing rites in Malacañang usually graced by members of Congress and instead signed the 1,162-page law in her study because every one else is busy in their provinces.
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He said the budget will "cure under-spending, spur growth, fund infrastructure and finance human development in a manner that will be transparent."
"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 new policemen, send about 700,000 scholars to schools and colleges, immunize two million children, establish 2,400 outlets of Botika ng Barangay, and provide medical insurance to 4.4 million poor persons, among others," he said.
Arroyo, in an interview after a roundtable discussion on education and social services, said she only vetoed items that are "very technical in nature."
She said the budget for education was increased by P16 billion, health by P16 billion, social welfare by P1 billion, and public works by 50 percent to remedy the backlog in infrastructure.
Arroyo also said she expects more investors now "because of the investors say that that is the biggest disincentive, lack of infrastructure."
Andaya said the vetoed items include:
* The "double counting" for the Bureau of Food and Drugs, National Labor Relations Commission, Energy Regulatory Commission, and National Bureau of Investigation (NBI);
* The creation of positions under the education department's Literacy Coordinating Council. The personnel under the Council should be detailed from the Department of Education (DepEd);
* The hiring of civilian personnel by the Armed Forces and defense department;
* The repair of a hotel, which is not a property of the tourism department but of a Provincial Government.
* Also the repair of the Department of Tourism (DOT)-Bicol region building, which should come from the calamity fund;
* The use of the service fees of teachers for purposes other than for provident fund;
* The Philippine Health Insurance Corporations (PHIC) getting a share from the tobacco taxes even if it has been all accounted for; and
* The provision, which prohibits confidentiality in the use of funds for the Witness Protection Program (WPP). Under the law, the WPP is funded by intelligence funds.
The P1.126 trillion budget is based on assumptions of a P1.11-trillion revenue, a P63 billion deficit, real gross domestic product (GDP) growth rate of 6.1 percent to 6.7 percent, and foreign exchange rate of P48 to P50 to a US dollar.
By sectoral allocation, economic services (including agriculture, trade and natural resources) will get 21.8 percent of the budget pie, while social services (health and education spending) are allocated 28.1 percent.
General public services account for 16.2 percent, defense 4.8 percent; and debt service, 28.3 percent.
Andaya said the interest payment declined to P303 billion this year, from P309 billion in 2006 and the trend will be sustained in the coming years. He also said the interest payment in 2007 could further dip if the peso continues to strengthen, freeing up more resources for social spending.
By object of expenditure, maintenance and other operating expenses (MOOE) made up bulk of the budget at P659.2 billion (58.5 percent), including the debt service fund and the Internal Revenue Allotment (IRA) of P183.9 billion.
Personal services or salaries and other benefits ate up P335.29 or 78 percent while capital outlay was earmarked P131.4 billion or 11.68 percent.
Government will also spend P8.3 billion to improve airports, P193 million for new lighthouses and ports, and P10 billion to repair storm-damaged areas.
As mandated by the Constitution, the DepEd has the biggest budget of P128.6 billion, or P15.4 billion bigger than last year. This includes 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 and Highways (DPWH) with P71.2-billion allocation, P28.7 billion bigger than last year, for the construction or upgrade of 3,251 kilometers of roads and 1,312 flood control systems.
Others in the top ten are: DND, P54.3 billion; DILG, P51.3 billion; State Universities and Colleges, P17.3 billion; DA, including the Agriculture and Fisheries Modernization Fund, P17.3 billion; DOTC, P16.9 billion; DOH, P11.5 billion; Judiciary, P9.3 billion; and Commission on Elections, P9.17 billion.
The May elections got P5.13 billion budget. (Sunnex)
For more Philippine news, visit Sun.Star Davao. (March 23, 2007 issue)
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