FDC In The News: Debt service provisions in 2008 budget

BusinessMirror
11 March 2008, Page A10
http://www.businessmirror.com.ph/03112008/opinion01.html

EDITORIAL:
Torpedoing the cuts in debt-service budget

THE question raised over the weekend by Senate Minority Leader Aquilino Pimentel Jr. should jolt us anew to the realization that allowing too much political noise in the air—without truly intelligent, definite directions—comes with one danger: that of overlooking such basic issues as the national budget.

The senator wondered, quite rightly, why more than a month after the Senate and the House of Representatives approved the final version of the bill on January 28, the President’s signing of the appropriations measure was being unduly delayed.

Lawmakers have a reason to gripe: the Senate exerted extra efforts to pass the bill before the Christmas break last year.

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BusinessMirror
11 March 2008, Page 1
http://www.businessmirror.com.ph/03112008/headlines05.html

GMA will sign P1.23-T budget for 2008 today
By Mia M. Gonzalez and Fernan Marasigan
Reporters

AFTER an opposition senator worried why the 2008 budget bill had not been enacted and the country continues to operate under last year’s spending law, President Arroyo announced Monday she will sign Tuesday the P1.227-trillion national budget that had been transmitted to the Palace about two weeks ago.

The President, speaking at the fourth Mindanao Cooperative Summit in Cagayan de Oro City Monday, said, “Tomorrow, we will sign the budget….It is a budget that reflects the will of the government to invest in the people and keep the economy on a strong, stable path.”

Budget Secretary Rolando Andaya Jr. took exception to the allegation of Senate Minority Leader Aquilino Pimentel Jr. that Malacañang is deliberately delaying the signing of the 2008 national budget to suit its interests, and noted that Congress only transmitted the budget to Malacañang on February 27.

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GMANews.TV
http://www.gmanews.tv/story/84164/Defend-provisions-on-debt-service-FDC-urges-Congress#

Defend provisions on debt service, FDC urges Congress
Article posted March 10, 2008 – 07:24 PM

MANILA, Philippines – On the eve of the signing of the P1.227-trillion General Appropriations Act for 2008, a debt watchdog group urged Congress Monday to protect from presidential veto the provisions on debt service.

The Freedom from Debt Coalition (FDC) made the appeal in a letter to Congress, as it anticipated President Arroyo’s vetoing of the provision on debt service.

“Should Mrs. Arroyo veto specific stipulations on debt service reduction, we urge the leaderships of both Houses of Congress to once again rise to the occasion by defending the said special provisions by means of a Congressional Override,” stressed FDC secretary general Milo Tanchuling.

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FDC urges Congress to defend special provisions on debt service

PRESS RELEASE
Freedom from Debt Coalition
11 Matimpiin St., Brgy. Pinyahan, Quezon City, Philipines
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 campaigner, (+63) 920-9059856

FOR IMMEDIATE RELEASE
10 March 2008

In anticipation of possible Malacañang veto
FDC urges Congress to defend special provisions on debt service

A day before Mrs. Gloria Macapagal-Arroyo signs into law the 2008 general appropriations bill, the Freedom from Debt Coalition urged the House and the Senate leaders to defend the special provisions on debt service cuts in the national government budget.

In a letter, FDC secretary general Milo Tanchuling urged leaders of both Houses of Congress to override Malacañang’s decision should Mrs. Arroyo veto specific stipulations on debt service reduction in the P1.2267-trillion budget. The group also expressed appreciation “for supporting the passage of the special provisions” in the budget and “the reallocation of these funds to augment social spending for education and health.”

“Should Mrs. Arroyo veto specific stipulations on debt service reduction, we urge the leaderships of both Houses of Congress to once again rise to the occasion by defending the said special provisions by means of a Congressional Override,” stressed Tanchuling.

The P25-billion debt payment reduction came from: the suspension of P5 billion interest payments to loan agreements challenged as tainted with fraud; the suspension of P5 billion worth of premature payments to proposed loans still in the pipeline; and, P15.9 billion savings due to the peso appreciation.

“In a time when our nation is undergoing a painful political crisis brought about by an aborted anomalous loan agreement that could have led to the government’s acquisition of another unnecessary debt, the Congress’ firm stand on the said special provisions will be a welcome respite,” added Tanchuling.

“We believe Congress’ decision to suspend interest payments for questionable loans pending renegotiation/condonation is a step in the right direction. Increasing the measly budget for much needed social services and restoring their power of the purse or constitutional duty to plan and manage the people’s hard-earned resources are another steps toward that direction,” said Tanchuling.

On February 21, the 14th Congress transmitted the budget measure, P300 million less than the Arroyo’s original budget proposal, to Malacañang for final signing and approval. It was reported that Mrs. Arroyo will sign the budget bill on March 11 and that the Department of Budget and Management has already drafted the President’s veto message of certain provisions in the 2008 Budget. -30-