MANILA, 31 January 2007 — President Gloria Macapagal Arroyo yesterday said she expects more investments to be made and more jobs generated with the approval by Congress of a 1.126 trillion peso ($23 billion) budget.
Arroyo said the budget, passed by the House of Representatives and the Senate on Monday after months of acrimonious debate, is expected to boost economic growth.
A joint committee of the two houses of Congress will meet to reconcile differences in the two versions. A final version will then be submitted to the two houses for ratification, after which it will be sent to the president's office. Once signed by Arroyo, the 2007 budget will become the first to be approved since 2004.
“This time we won’t have to live on a re-enacted budget,” said an elated Budget Secretary Rolando Andaya after the Senate vote on Monday night.
Political bickering between the opposition-dominated Senate and the pro-Arroyo House has stalled key bills, including the budget, forcing the government to operate on a re-enacted 2005 budget for the last two years.
Even Senate Finance Committee chairman Franklin Drilon, who had been opposed to many of Arroyo’s policies, was all praises for the budget.
“We are certain this budget will not only facilitate government operations this year but more importantly ... make a difference in the lives of 85 million Filipinos,” he said.
Government economic planners have forecast growth at between 6.1 percent to 6.7 percent this year, with the budget in consideration.
Andaya said the budget increases spending on infrastructure such as roads and bridges by 75 billion pesos, up from P38.7 billion last year.
Spending on health and education will also be increased.
The budget set a 63-billion-peso ($1.2 billion) deficit ceiling — half of last year’s 125 billion peso ($2.5 billion) target.
“This budget helps put our fiscal house in order and signals to the world that the Philippines is raring and more than ready to do more business and bring the fruits of the economy down to every household,” Arroyo said.
“Every item in the budget is designed to push good governance to the limit, strengthen confidence and enterprise, drive up investments and jobs, deliver social dividends and fight terror and crime,” Arroyo said in a statement.
The budget has a parallel program to collect about 1.2 trillion pesos ($24 billion) in government revenue. The budget has a parallel program to collect about 1.2 trillion pesos ($24 billion) in government revenue. (With reports by agencies)
