P-Noy vows to turn around fiscal mess
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President Benigno S. Aquino III, delivering his first State of the Nation Address, today said that misuse of the
national budget and funds abuse by state-run firms and agencies during the Arroyo administration will weigh
heavily against his fledgling administration, but he vowed to reverse the situation while opening windows of
opportunity for all.
“I could almost feel the weight of my responsibility” said the President, as he lamented over initial findings that
only about P100 billion or 6.5 percent of the P1.54 trillion national budget for 2010 has been left for the
remaining six months of the year. This means, he said, that roughly one (l) percent is left for each remaining
month.
He said that in the first half of this year, government expenditures have already exceeded the revenues boosting
the first semester national deficit to Pl96.7 billion. Earlier projections placed the yearend figure to reach about
P319 billion.
The President also rued over the abuse of funds by certain government-owned and-controlled corporations
(GOCCs), which his people have unearthed barely a month into his six-year term.
The President said billions have been lost in still unexplained and questionable deals entered into by many
GOCCs whose incumbent officials are mostly last-hour or midnight appointees of former President Arroyo.
Among state agencies he mentioned were the Metropolitan Waterworks and Sewerage System (MWSS),
National Food Authority (NFA), National Power Corporation (NAPOCOR), the Metro Rail Transit (MRT),
Department of Public Works and Highways to include its use of the road users tax, and the calamity funds.
The President said it was revolting to know that money was there only to be wasted.
“Your have heard how the public coffers were squandered, this is what is clear to me now: change can only
come from our determination to stamp out this extravagance and corruption.
The President singled out the MWSS as an example of how state funds are misused with top officials
themselves enjoying millions in cash perks and even housing privileges in MWSS properties.
He also cited the misuse of the P2 billion calamity funds where 70 percent has now been spent even as the
country enters into the critical typhoon season of the year. He said distribution was found uneven, with bigger
funds going into the one district of Pampanga, home-province of former President Gloria Arroyo, now
congresswoman in the province’s second district.
The President also cited the critical funding situation of the National Food Authority, now debt-ridden by about
Pl77 billion due to over-importation.
But as he gave the public a glimpse of the initial fiscal situation uncovered early in his term, the President said “
we will open windows of opportunities.”
He said: “If we change all this, if we prioritize enabling others we will open windows of opportunities not just for
ourselves but for those who direly need it.”
“We have already begun the process of change and we are now able to dream of better things for our country.
Let us not forget that there are those who wish us to fail so that they will once again reclaim power to do as they
please at the expense of our people,” he said.
Among the legislative proposals he laid out in his first SONA at the joint opening session of the 15th Congress
at the Batasang Pambansa Complex in Quezon City are:
a. Fiscal Responsibility bill
b. Amendment to the Procurement Law
c. Anti-trust bill
d. National Land Use bill
e. Amendment to the National Defense Act, and
f. Whistleblower’s bill.
g. Strengthening the witness protection program
The President bared that he would convene the Legislative Executive Development Advisory Council (LEDAC) at
the soonest possible time to discuss the bills that need to be addressed He assured legislators that he would
keep an open mind and treat the legislators honorably.
The fiscal responsibility bill, he said, would limit spending bills only for appropriations that have identified
funding sources. The government, according to him, needs P104.1 billion to fund laws that have been passed
but have yet to be implemented.
“We will re-evaluate fiscal incentives given in the past,” President Aquino said in the vernacular. “Now that we are
tightening our purse strings, we need to identify those incentives that will remain and those that need to be done
away with.”
Emphasizing that his administration will not allow another NBN-ZTE scandal to happen again, the President
asked help from legislators to amend the country’s Procurement law. He pointed out that all proposed contracts,
whether from local or foreign sources must undergo the scrutiny of correct procedures.
Stressing that it is the government’s duty to ensure that the market is fair for all, President Aquino said his
administration will not tolerate monopolies nor cartels that kill competition.
“We need an Anti-Trust Law that will give life to these principles, to afford small- and medium-scale enterprises
the opportunity to participate in the growth of our economy,” he said.
While asking for the passage of the National Land Use bill, the President also cited the need to amend the
National Defense Act to make it more responsive to the current needs of national security. He mentioned that the
law was passed during the Commonwealth period in 1935.
He appealed to legislators to pass the Whistleblower’s bill “to eradicate the prevalent culture of fear and silence
that has hounded our system.”
“We will strengthen the Witness Protection program,” he said. “We must remember that from 2009 to 2010
alone, cases which involve the participation of witnesses under the program resulted in a ninety-five percent
conviction.”
Pointing out that there is a need to review the country’s laws, President Aquino called on lawmakers to begin a
re-codification of such laws “to ensure harmony in legislation and eliminate contradictions.”
Earlier in his speech, the President also appealed to lawmakers to go easy on the confirmation of his chosen
cabinet men as he said they are all competent and have proven up to their task.
“It is but just that they not be forced to go through the eye of a needle to be confirmed by the Commission on
Appointments,” he said. “Should this happen, competent Filipinos will be encouraged to help our country by
becoming public servants.”
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