Philippine Congress Approves USD 28.081 Billion 2008 Budget As Promised

October 12, 2007 6:21 a.m. EST

Manila, Philippines (AHN) - On a day that began in tension and ended with a rare show of unity, the Philippine House of Representatives approved on second reading at past midnight Friday, the proposed 2008 USD 28.081 billion General Appropriations Act (GAA) contained in House Bill 2454, capping two weeks of often heated marathon debates before Congress went on a three-week recess.

The approval came at 1:48 in the morning following a viva voce vote with 200 members present.

Members affirmed their firm support of Speaker Jose de Venecia's leadership upon manifestation by Majority Leader Arthur Defensor, just hours after the five-time Speaker, citing conflict of interest, inhibited himself from participation in the disposal of the impeachment complaint filed last week against President Arroyo.

De Venecia's announcement doused speculations on the fate of his leadership-and the affirmation of support hours later showed his decision meant his hold remained firm on the leadership he won uncontested on July 23.

De Venecia said the passage of the 1100-page bill is the equivalent of the passage of 50 conventional, ordinary bills. We will not have a re-enacted budget in 2008; we kept our commitment to our people," said de Venecia.

The spending measure was approved in the first two weeks of October, rare in the recent history of the House of Representatives, with quorum averaging just under 200, an attendance record Defensor described as "fantastic."

The House also approved on third and final reading HB 2845, an Act to strengthen the charter of the University of the Philippines as the country's premier university.

Education and Public Works got the biggest outlay in the spending measure, which seeks to achieve a balanced budget by 2008, two years ahead of projections made in the Medium-Term Philippine Development Plan.

The Department of Education (including DepEd-School Building Program) received USD3.332 billion, which includes the Dep-Ed School Building Program, and Public Works and Highways USD2.156 billion.

De Venecia expressed confidence the GAA will be approved on third and final reading by the second or third week of November, after which the bill will be transmitted to the Senate for approval possibly before the Christmas break.

Appropriations Committee Chairman Edcel Lagman said the proposed (balanced) budget would require raising the country's revenue effort to 17 percent of GDP from 16.9 percent this year.

The senior vice chairman of the Appropriations panel, Rep. Junie Cua, called the money measure "an equitable developmental tool that can help solve problems in our countryside...and at the same time respond to the needs of the nation in these globalized and competitive times."

De Venecia said the bill reflects the government's commitment to sustain the growth momentum towards full economic takeoff.