PGMA to continue economic reforms

By Maricar M. Calubiran, correspondent

Inspite of the controversy haunting her administration, President Gloria Macapagal-Arroyo is determined in moving up the country from the state of political and economic deterioration from the era of renewal and change.

In yesterday's Filipino-Spanish Friendship Day, Mrs. Arroyo expressed his gratitude to the members of the Senate and Congress for giving her the authority to execute economic reforms. With the new tax law, the government is expected to raise P100 billion in forms of taxes. The additional taxes will be used to finance more projects to benefit the people. “We can have these things without relying on foreign loans but relying on ourselves.”

Mrs. Arroyo said the government has only collected P700 billion taxes prior to the approval of the new tax law. Out of the P700 billion, P300 billion is allocated to service old loan, P250 billion for salaries and P150 billion for the Internal Revenue Allotment (IRA) of local government units. The government has to borrow to finance the construction of hospitals and schools, energy independence and add more to the debt service. “We have to get out of this vicious cycle.”

The President also said the Filipino-Spanish celebration must not only be about an interwoven past. The country's relationship with Spain today is part of the continuing search of exciting opportunities that stems from a strategic alliance connecting two major continents and two very, very old friends.

Mrs. Arroyo said it is providential that Spain is helping Philippines to become more independent of imported oil for our energy power. “The challenge for the Philippines is greater each passing day as we are facing the rising cost of fuel at the time we need to boost the acceleration of our economy.”

Spain is known for the production and distribution of alternative sources of energy, such as wind and solar energy. With the help of the Spanish government, several solar projects have been put up in different parts of the country. “I have gone to the different parts of the Philippines to inaugurate the solar project of Spain.”

The President said it is an important step in spreading solar power in the Philippines. It is crucial in our economy today as the country is facing a looming crisis in the surge in the price of crude oil in the world market. The increase in crude oil is unabated. “Imagine the price of oil today is 61$ per barrel, 18 months ago it was only 30$ per barrel and 36 months ago it was only 10$ per barrel, imagine how much the price of oil has gone up in the world market and bring a very big shock to the economy.”

In the same gathering, Mrs. Arroyo said the celebration is already about soldiers giving to other soldiers, it is already about love, kinship, friendship and brotherhood. “That is what Iloilo represents in the Filipino-Spanish celebration,” she said.

Meanwhile, the media were not given the opportunity to have a press conferences with the President. Only selected few were even allowed to enter the Iloilo provincial capitol. Though, some of the media were lucky enough to see the President inside the capitol yet they were not allowed to bring with them any communication equipment to have an ambush interview with Mrs. Arroyo.