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REPUBLIC
ACT NO. 9401 - GENERAL APPROPRIATIONS ACT, FY 2007 JANUARY 1-
DECEMBER 31, 2007
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NEWS:
PGMA signs into law P1.126-T 'Social Payback' '07 budget - March 22,
2007
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. Other macroeconomic assumptions of the budget include real GDP growth rate of 6.1–6.7 percent and foreign exchange rate of P48-P50 to US$1.
nhad
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