Heated budget debates seen as Congress resumes session

Congress resumes this morning its arduous task of finalizing the 2000 budget that is compliant with the P62.5-billion deficit determined as tolerable by the International Monetary Fund, and furious debates are on the horizon.

The bicameral conference committee will meet today in a renewed bid to break the impasse that has persisted since last month. Even a special session of Congress called by President Estrada last week failed to produce the needed breakthrough.

Newly appointed Finance Secretary Jose Pardo, assisted by Customs Commissioner Ramon Farolan and Revenue Commissioner Dakila Fonacier, will meet with the bicameral conference committee at 9 a.m. today at the Batasan to present what they consider are achievable revenue targets for the year.

Sen. Francisco Tatad had earlier proposed that Pardo and his new team should put their posts on the line in making their revenue projections.

Deputy Speaker Eduardo Gullas predicted that the bicameral body would approve a P37-billion cut from the Malacañang-proposed P651-billion budget.

He said this would comprise of P7-billion effective cuts and P30-billion contingent cuts, including P10 billion from the internal revenue allotment (IRA) of local government units (LGUs).

The technical panel of the Senate committee on finance had earlier recommended the pruning of P30 billion from the budget but Senate President Pro Tempore John Osmeña, the committee chairman, rejected it for being too deep and not well-distributed among government agencies.

Osmeña and Senate Majority Leader Franklin Drilon said that the impasse in the budget would give Malacañang officials time to validate their revenue projections on the sale of some assets.

Budget Secretary Benjamin Diokno had earlier assured doubting senators that the government could earn billions this month from the sale of government shares in the stocks of the Philippine National Construction Corp. and the Philippine National Bank.

Osmeña, however, stressed that the budget deficit would remain pegged at P62.5 billion even if more revenues come in.

"We will merely increase the expenditure level but the deficit level will remain at P62.5 billion," Osmeña said.

Gullas said government would be borrowing funds to cover the P62.5 billion budget deficit. He estimated the interest payments on the P62.5 billion at P4.8 billion.

He added that the interest payments on the P113.6-billion budget deficit last year would total P8.8 billion.

Meanwhile, Speaker Manuel Villar said the House is set to tackle vital measures other than the budget with the resumption of the regular session today.

Among the priorities of the House, according to Villar, are the Omnibus Power Bill, the Securities Act of 2000, and the lifting of the political ad ban.

President Estrada will also push for the passage of these priority bills, Malacañang said yesterday.

"He (the President) will give priority bills his most preferential attention. In fact, one of the principal reasons he gave less priority to Concord (Constitutional Correction for Development) is because he will give preference to priority bills," Presidential Spokesman Fernando Barican said in a telephone interview.

Villar said the passage of the Omnibus Power Bill would bring down power rates.

Osmeña had filed five separate bills on power in the Senate instead of an omnibus measure to make sure other facets of power reform could proceed even if some contentious issues arise in one or more aspects.

Barican clarified that Mr. Estrada was not blaming Congress for its slow action on priority bills when he said the scrapping of the pork barrel funds was the reason lawmakers were sitting on pending measures.

He also said the delay in the passage of the General Appropriations Act "is not unusual" as this has happened in past administrations.

"In the Cabinet, we expect and hope, after consultation with members of Congress, the budget will be passed this month, and of course other equally important bills," Barican said.

In another development, the President also expressed confidence the Commission on Appointments will confirm his newly appointed Cabinet secretaries.

Mr. Estrada said with the new appointees, the government can successfully carry out its policies on economy and peace and order.

"We are busy mapping out plans with the Cabinet to improve the lives of our people," he said. -- With Paolo Romero