Cherry Clemente, Anakpawis secretary general, said the P1-billion anti-insurgency fund should have been allotted instead to livelihood projects for the people.
"This (anti-insurgency fund) is not the answer to the root cause of the rebellion," she said. "It will only intensify the sentiments of the people to rise up in arms."
The administrations all-out war policy only justifies the extra-judicial killing of leaders and members of so-called progressive organizations, Clemente said.
The militant groups intend to present the one million signatures to the Armed Forces of the Philippines (AFP), the Philippine National Police (PNP), Commission on Human Rights and the United Nations Human Rights Committee.
Meanwhile, the Communist Party of the Philippines has instructed the NPA to defend the people against what it calls "AFP terrorism."
Gregorio "Ka Roger" Rosal, CPP spokesman, in an e-mail statement warned that Mrs. Arroyos order to intensify military operations against the NPA will heighten political killings, illegal arrest, detention and torture and other human rights abuses.
"The people in the revolutionary mass base and their New Peoples Army will prepare for this and not take things sitting down," he said.
"They will not allow the AFP to just carry out its fascist campaign of suppression with impunity.
"The NPA and the people will cooperate in planning and launching tactical offensives, especially against AFP units with the heaviest blood-debt and the most canine loyalty to the puppet and fascist Arroyo regime, and also take advantage of the vacuum created in the uneven deployment and movement of enemy troops.
"The NPA will launch big and small tactical offensives using proven advantage of guerrilla tactics and relying on the deep and wide mass base to punish the fascist forces wreaking terror and havoc on the people," Rosals statement read.
"The President is firm and decisive in her marching orders to run the NPA to the ground," he said. "For our part, we will hit-hard on the enemy to include their economic support system and fund sources that sustain their terrorist activities."
Lomibao said the NPA also derives revenue from legitimate business operations and unlawful activities like illegal logging, illegal fishing and illegal mining.
In many cases, the NPA is engaged in criminal activities like kidnapping, robbery, contract-killing and extortion to raise funds, he added.
Meanwhile, Metro Manila police commander Director Vidal Querol said military operations alone could not end the communist rebellion.
"The approach on insurgents should be multi-faceted, arrest these stationary bandits and address poverty, particularly in the countryside," he said.
Querol, who spent most of his almost 30 years in police service in rural areas, said rebels capitalize on peoples poverty to advance their recruitment.
"The NPA will say mahirap ka sama ka sa amin kasi pinababayan tayo ng gobyerno," he said. "Iisipin nung tao, mahirap nga siya, ayun sasama na. The government should think of ways to address poverty." Katherine Adraneda, Cesar Ramirez, Cecille Suerte Felipe