Mrs. Arroyo said her government would continue reforms aimed at keeping the budget deficit and inflation under control.
"What we need most are fiscal reforms, macroeconomic reforms... if we keep on spending without anything being added to our revenue collection, things will become harder for the government," Mrs. Arroyo told a political forum at the Ateneo de Manila University.
She made no direct reference to Camacho, her most senior economic adviser who resigned on Friday, citing "a combination of many, many reasons."
Camacho, a respected banker, was credited with having kept the budget deficit under control this year after it exceeded official ceilings last year, alarming international creditors.
Camacho’s abrupt departure raised concerns that his reforms would not be followed through. In reaction to his resignation Friday, the peso fell to 55.58 against the dollar from Thursday’s close of 55.29.
Speculations of mass exodus by officials from the Arroyo administration were heightened after National Treasurer Sergio Edeza also announced his resignation to join the private sector.
Malacañang brushed aside speculations of "exodus," saying the resignations were earlier relayed before it was announced.
"Perhaps some might feel that they were in those positions because of a close relationship with Secretary Camacho. So perhaps that’s the possible reason of some of them. But I don’t think ‘exodus’ is a correct term," Presidential Spokesman Ignacio Bunye said.
After a meeting with Camacho at the Palace Friday noon, Mrs. Arroyo accepted with "deep regrets" his resignation, which takes effect on Nov. 30.
The President immediately designated Finance Undersecretary Juanita Amatong to take over as officer-in-charge "to ensure continuity in policies and operations" at the Department of Finance (DOF).
Mrs. Arroyo, however, did not say on how soon she would appoint a permanent replacement for Camacho who was among the "Harvard" members of her Cabinet and one of its original appointees.
"Advancing the President’s good governance and reform agenda, Secretary Camacho has also pushed major reforms in public finance, while lending his formidable experience and insight to deliberations in the Cabinet, economic and fiscal planning bodies and government corporate boards," Bunye said.
As early as two weeks ago, Mrs. Arroyo already disclosed her plans to implement changes in her official family since some Cabinet members are planning to run for elective posts or go back to the private sector.
Bunye said Camacho intimated his desire to leave government service as early as July this year wanting to return to the private sector as an investment banker.
"His (Camacho) becoming a Cabinet (member) was a great financial sacrifice for him... At that time, that was one of the reasons why he said it was really financially difficult for him," Bunye said.
"It was natural, especially for those who think it was a rush decision, they thought there was a deeper reason why Secretary Camacho quit. But it is not that. It was a well thought out act by Secretary Camacho," he said.
Bunye pointed out that under the law, a former Cabinet official is disallowed for one year to accept a new position that will directly transact with his or her previous office in the government.
"And if (Camacho) wants to get employed one year from now he has to do this now. So this is the reason he mentioned, which is a very honest reason, why he really wanted to quit the Cabinet at that time," he said.
Bunye said Mrs. Arroyo respected the decision of Camacho to resign in citing "physical, emotional and financial" reasons.
Bunye said Camacho agreed to stay on until the end of the month after he was prevailed upon by the President.
Bunye also took an optimistic note on the fall of the peso against the greenback following Camacho’s announcement to quit.
"This only shows the respect of the international community, not only locally but also internationally," he said.
Camacho’s resignation caught almost everyone by surprise with several sectors expressing their deep regret over his leaving government service.
Some lawmakers like Surigao del Norte Rep. Robert Ace Barbers, chairman of the House accounts committee, lamented the resignation of Camacho but expressed hope the Arroyo administration will continue to implement the economic reforms by the outgoing finance secretary.
"President Arroyo’s economic thrusts and policies would ultimately overcome the present challenges attacking recovery efforts. Finance Secretary Camacho would be a great loss," he said.
According to Barbers, the outgoing DOF chief "was a victim of venomous politics" which apparently forced him to resign.
He said Camacho’s resignation was "definitely not an expression of loss of confidence in the Arroyo presidency" but more of a frustration over the "unrelenting efforts of unseen forces of doom trying to out the Arroyo leadership down."
"His resignation should serve as a wake up call for all," Barbers said. "Let us now unite and try to overcome the present negative political climate that becloud the country." — With AFP