Neri: GMA wants 2006 deficit kept at P125B - Malaya 10.02.2006

PLANNING Secretary Romulo Neri has said that President Arroyo wants to maintain the P125-billion budget deficit target for 2006 despite having surpluses for the past four months.

Budget Secretary Rolando Andaya Jr. has repeatedly said that the budget deficit for this year could reach P100 billion and that government could even accelerate its target to balance the budget by 2008.

"I don’t think so. The President wants to maintain it," Neri told reporters in an ambush interview in Malacañang.

Neri said government actually needs to catch up in terms of spending and that the passage of the P46.4-billion supplemental budget would boost spending.

Neri and Andaya have reiterated that there is excess liquidity in the system.

Andaya has complained that government has the excess funds but it doesn’t have the spending authority from Congress.

At the Senate, on the other hand, finance committee chair Franklin Drilon said all Andaya has to do is certify fund availability and they are willing to help him unload some of those excess funds, especially in the direction of the Philippine National Police.

Drilon criticized President Arroyo over the low budget earmarked for the PNP in 2007 despite the agency’s role in keeping the republic strong. "The proposed 11.82 percent increase in the 2007 budget of the PNP, which is placed at P39.36 billion will be enough only to cover inflation and bring the appropriation to its former level three years ago. The increase is just to cover inflation, which is less than six percent a year," Drilon said. "And yet, we are increasing the manpower complement of the PNP by 6,000 policemen. This year, we have already increased it by 3,000. Next year, they will hire an additional 3,000."

The PNP budget in 2005 was P35.19 billion. This was supposed to be increased to P35.53 billion this year but Congress failed to pass the 2006 outlay. – Regina Bengco and Dennis Gadil