Philippine leader outlines 1.7 trln peso development plan for next 3 years

Philippine leader outlines 1.7 trln peso development plan for next 3 years

	Published : Mon, 23 Jul 2007 11:17 By : Agencies Print this Story

MANILA (Thomson Financial) - Philippine President Gloria Arroyo vowed Monday to channel within the next three years are cord levels' of funding into infrastructure, education and health, as well as into programs aimed at bringing peace to Mindanao, the country's troubled south.

In her annual address to Congress, Arroyo said it was her vision to see the Philippines transformed into a first world nation in 20 years as she outlined a 'blueprint for development' for 2007-2010 that would cost an estimated 1.7 trillion pesos.

'(In 20 years) poverty shall have been marginalized, and the marginalized raised to a robust middle class.

'By 2010, the Philippines should be well on its way to achieving that vision,' Arroyo told lawmakers, government officials and diplomats.

Arroyo's televised speech focused on a number of specific infrastructure projects involving roads, bridges and airports throughout the country, which she hopes will create one million new jobs every year.

'What I have outlined today is just a sampler of our 1.7-trillion-peso medium-term public investment program,' she said.

Funding sources for these projects have been identified, with about 1 trillion pesos to come from state revenues, to be generated 'with tax reforms and firm orders to the BIR (Bureau of Internal Revenue) and Customs to hit their targets,' Arroyo said.

She said about 300 billion pesos will come from state corporations and the balance from government financial institutions, private sector investments, funds from local governments and foreign loans.

But Finance Secretary Margarito Teves was quick to assure that the government will not push for new taxes 'at least until the end of the year.'

Arroyo also reported on the accomplishments of her administration, including eliminating graft and corruption in government and in strengthening the economy.

'We were able to strengthen our economy because of the fiscal reforms that we adopted at such great cost to me in public disapproval. But I would rather be right than popular,' she said.

She said her fiscal and social reforms have helped restore investor confidence in the Philippines, resulting in a stronger peso, lower inflation and the creation of six million jobs in the last six years 'mostly in sustainable enterprises.'

But she wants more reforms put in place.

Saying power rates in the country remain high, Arroyo urged lawmakers to amend the Electric Power Industry Reform Act (EPIRA) to encourage more competition among power producers and retailers in order to bring down the cost of power in the country.

'I ask Congress to amend the EPIRA for open access and more competition,' she said.

She also sought stronger laws against election-related violence and legislation that will reduce local prices of medicines.

(1 US dollar = 44.81 pesos)

enrico.delacruz@thomson.com

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