FDC In The News: On Sec. Andaya’s statement on the 2008 NG budget

Radio interview over dwAD
30 January 2008, 6:20 – 7:00 PM

FDC secretary general Milo Tanchuling was interviewed by university professor and The Daily Tribune columnist Ka Mentong Laurel in his radio program over dwAD. Sir Milo discussed FDC’s position regarding the statement issued by Budget Secretary Rolando Andaya Jr. on the debt service cuts in the 2008 national government budget made by both the House of Representatives and the Senate and realigned to various agencies and social services sector.

Our reaction to Sec. Andaya’s statement on the 2008 NG budget came out as part of the banner story of BusinessMirror today. Philippine Daily Inquirer also published our press release today (page 2).

Philippine Daily Inquirer
31 January 2008, Page A2
http://newsinfo.inquirer.net/breakingnews/nation/view/20080130-115810/Budget-chief-hit-over-debt-service

Budget chief hit over debt service
By Jerome Aning

MANILA, Philippines — The Freedom from Debt Coalition on Wednesday took budget secretary Rolando Andaya Jr. to task for saying that the debt service cuts made by lawmakers in the 2008 national budget was contrary to law and to the government’s bid for a balanced budget this year.

FDC secretary general Milo Tanchuling said that Andaya was “deceiving” the public when he said the entire P25.9-billion cut in the interest payment allocations was a violation of the automatic debt service provision in the Revised Administrative Code of 1987.

“Only P5 billion of this amount is covered by the automatic appropriations law on debt servicing. This P5 billion is embodied in the special provision in the ratified budget suspending interest payments on loans tainted with fraud and anomalies pending renegotiation or condonation,” Tanchuling said in a statement.

[READ MORE]

BusinessMirror
31 January 2008, Banner story
http://www.businessmirror.com.ph/01312008/headlines01.html

Economic-stimulus plan doubted
By Fernan Marasigan and Mia Gonzalez
Reporters

THE P75-billion, one-shot economic-stimulus package “approved in principle” by President Arroyo will come under further scrutiny Thursday, as her own allies in Congress and other advisers expressed increasing reservations over its wisdom.

While Budget Secretary Rolando Andaya Jr. was the first to point out its possible adverse impact on the goal to attain fiscal balance, lawmakers Wednesday said salient parts of the package were redundant while party-list representatives said it would use up so much money without substantially benefiting the poor.

After the Cabinet meeting on Tuesday, Albay Gov. Joey Salceda, the President’s trusted adviser, told reporters she had approved it in principle, subject to refinement in another Cabinet-level meeting to see how it fits into the fiscal framework. Salceda billed it as an “evacuation” plan from the “storm” expected to be spawned by a looming recession in the United States, the country’s top trading partner.

[READ MORE]

FDC In The News: On Philippine Energy Summit

In its full-page article, The Philippine Star today cited FDC’s statement regarding the summit’s objective, which it branded as “pathetically unclear.”

The Philippine Star
30 January 2008, Page 7
http://www.philstar.com/index.php?Headlines&p=49&type=2&sec=24&aid=20080129148

Headlines
Government not yet ready to commit to nuclear energy development
By Donnabelle Gatdula and Jess Diaz

The government has not made any commitment on nuclear energy development despite its invitation for officials of the International Atomic Energy Agency (IAEA) to evaluate the feasibility of commissioning the mothballed Bataan Nuclear Power Plant (BNPP), Energy Secretary Angelo Reyes said on Monday.

“I’m not ready to commit on anything other than studying it – which is vast and fast moving,” Reyes said.

He said the IAEA officials arrived in the country last Monday only to evaluate the government’s plan to revive its nuclear program, including rehabilitating the BNPP.

[READ MORE]

FDC on Sec. Andaya’s statement on the 2008 NG Budget

PRESS RELEASE
Freedom from Debt Coalition (FDC) – Philippines
11 Matimpiin St., Brgy. Pinyahan, Quezon City, Philippines
Tel. No.: (+632) 9211985 | Telefax: (+632) 9246399
Email: fdc_media@yahoo.com
Contact persons:
Milo Tanchuling, FDC secretary general, @ (+63) 920-9018711
Bobby Diciembre, FDC media bureau, @ (+63) 920-9059856

FOR IMMEDIATE RELEASE
30 January 2008

On 2008 National Government Budget
Andaya is deceiving the public—FDC

The Freedom from Debt Coalition today denounced the recent statement of Budget Secretary Rolando Andaya Jr. that the debt service cuts made by lawmakers in the 2008 national government budget and realigned to various government agencies and services is contrary to law and to the government’s bid for a balanced budget this year.

FDC Secretary General Milo Tanchuling said that Secretary Andaya is deceiving the public that the entire P25.9-billion cut in the interest payment allocations is a violation of the automatic debt service provision in the Revised Administrative Code of 1987.

“Only P5 billion of this amount is covered by the automatic appropriations law on debt servicing. This P5 billion is embodied in the special provision in the ratified budget suspending interest payments on loans tainted with fraud and anomalies pending renegotiation and/or condonation,” Tanchuling said.

P15.9 billion of the total debt service cut is a result of the weakening US dollar, while the other P5 billion is for still to be borrowed loans and issued bonds.

According to reports, Secretary Andaya said that “[i]t’s our policy to have a balanced budget this year so we will have to reckon that alignment with the existing policy. At the very least, we would have to control that kind of an expenditure. We will not spend it, even if it is provided for, for it will affect our fiscal position. . . . It’s as good as vetoing it.”

“It is lamentable that Secretary Andaya uses a deceitful information strategy all in the name of a ‘balanced budget’ while hiding the policy of underspending on much needed services just to appease credit-rating agencies as well as lending institutions,” said Tanchuling.

FDC said even some of Mrs. Gloria Macapagal Arroyo’s key economic managers do not agree on this policy. Last year, both Finance Secretary Margarito Teves and National Economic and Development Authority chief Romulo Neri recognized that underspending is a serious problem.

“We believe that debt service reduction in the 2008 budget is a strong political statement on the part of our lawmakers in reclaiming their constitutional right to the power of the purse. However, it is also a concrete victory for the social services sector as it tries to draw near the government’s backlog due to massive underspending and continuing prioritization of debt payments under the incumbency of Mrs. Arroyo,” Tanchuling said.

“If there is one thing the recent budget process has exposed, it is the automatic debt service provision in the Revised Administrative Code of 1987 that is anti-people and anti-development and therefore it must be repealed,” Tanchuling said. -30-