Meanwhile, the biggest non-debt service allocation of government’s budget will go to education at P102.6 billion – the biggest chunk of the 2005 GAA among departments – which is a 4.5% decrease from last year’s P107.5 billion allocation. The scaled down education budget will go to the hiring of 10,000 more teachers to ease the shortage of teachers by 30% and the construction of 7,500 classrooms. The government has also allotted P153 million to increase textbook purchases to help maintain the 1:1 book-to-student ratio, P1.8 billion for the Government Assistance to Students and Teachers in Private Education (GASTPE) to benefit 457,389 grantees this year, and P928.04 million for scholarships to 58,083 students in tertiary and vocational education.
The four other agencies with the biggest budgets are the Department of National Defense (P46.04 billion), Department of Interior and Local Government (P42.47 billion), and the Department of Health (P9.83 billion). The other big-ticket items in the GAA are for infrastructure projects totaling P56.6 billion, and P214 million for the Department of Health’s Murang Gamot project. The Office of the Ombudsman’s allocation has increased by P170 million to help strengthen its fight against corruption. The 2005 budget also provides for the construction of 22 more police stations for increased police visibility.
The anticipated revenue to be generated by new tax measures already passed or pending approval by Congress such as the Sin Taxes law, Lateral Attrition law, and Value Added Tax revisions which may total more than P80 billion were not factored into the budget and would be the subject of a supplemental law to be submitted for approval by Congress.
President Reshuffles Cabinet
In a strategic move, President Gloria Macapagal-Arroyo transferred Trade Secretary Cesar A.V. Purisima to the Department of Finance and replaced him with former Nestle Philippines executive Juan B. Santos as Trade Secretary. Meanwhile, Power Sector Assets and Liabilities Management (PSALM) president and chief executive officer Raphael M. Lotilla replaced resigned Energy Secretary Vincent S. Perez. Public Works Secretary Florante M. Soriquez also relinquished his post to former Police Director General and National Security Adviser Hermogenes G. Ebdane, Jr. after corruption allegations.
The new appointees are not yet confirmed by the Commission on Appointments. As of end-March, the CA only confirmed the appointments of Education Secretary Florencio B. Abad, Tourism Secretary Joseph H. Durano, Land Reform Secretary Rene C. Villa, Executive Secretary Eduardo R. Ermita, Defense Secretary Avelino J. Cruz, Jr., Science and Technology Secretary Estrella F. Alabastro, and Press Secretary Ignacio R. Bunye.
In September last year, the members of the Senate Minority led by Sen. Aquilino Q. Pimentel, Jr. questioned the constitutionality of the appointments of Messrs. Ermita, Abad, Cruz, Villa, Durano, Environment and Natural Resources Secretary Michael T. Defensor, and Agriculture Secretary Arthur Yap. The opposition senators argued that the officials should have not taken their oath of office and assumed their duties without being confirmed by the CA. Malacañang, however, countered that the immediate assumption of office of the appointees was needed to prevent a hiatus in the discharge of official functions.
Under the Constitution, the Commission on Appointments shall act on all appointments submitted to it within 30 session days of Congress from their submission. The CA consists of the President of the Senate, as ex officio Chairman, 12 Senators, and 12 members of the House of Representatives. A member is elected by each chamber on the basis of proportional representation from the political parties and parties or organizations registered under the party-list system.
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