I have submitted our budget for next year to Congress in the hope that this will be given utmost priority as a strategic weapon against the looming oil crisis and as a strategic tool to fight poverty by placing our resources squarely on the socio-economic imperatives facing our people.

The budget will be both a heat shield to protect them against the vagaries of the world economy, and a building block for greater business confidence, grassroots enterprise and investments that will continue to spur jobs.

The budget is our continuing signal of fiscal strength and responsibility, as it forges the commitment of this administration to serve the welfare and well-being and the better future of our people.

We already have enough legal gaming under the auspices of PCSO and Pagcor and there is no need for more.

What we need is a total stop to jueteng operations that have sucked dry the meager resources of our people and have become a counterproductive political distraction.

Malacaņang denied today it would introduce a new numbers game called "Bingo Combo" in lieu of jueteng.

"We already have enough legal gaming under the auspices of the Philippine Charity Sweepstakes Office (PCSO) and Philippine Amusement and Gaming Corporation (PAGCOR) and there is no need for more," Press Secretary Ignacio R. Bunye said in a statement this morning.

Bunye stressed that President Gloria Macapagal-Arroyo’s administration is determined to stop the operations of jueteng "that have sucked dry the meager resources of our people and have become a counter-productive political distraction."

The Presidential Spokesperson also said there may be some attempts to legalize jueteng but these do not have the support of the President.

President Arroyo on Monday reiterated her order to put a total stop to all jueteng operations in the country in the wake of reports that there is a slight resurgence of the activity in the illegal numbers game in certain areas.

The Chief Executive has given Puerto Princesa City Mayor and anti-jueteng czar Edward Hagedorn until Sept. 15 to eradicate jueteng operations in the country.

DUMAGUETE CITY – President Gloria Macapagal-Arroyo today invited power intensive industries to invest or relocate in Valencia, Negros Oriental and enjoy a 50 percent subsidy of their electricity costs.

The President made her invitation call when she visited this morning the 20-megawatt Palinpinon 2 Geothermal Optimization Project in Sitio Nasulo, Barangay Puhagan, Valencia town, some 35 kilometers from this city.

"Power intensive industries, please invest in Valencia (where) you have a 50 percent electric bill subsidy," the President intoned.

Funding for the P1.74-billion geothermal optimization (expansion) project was sourced from the Development Bank of the Philippines (DBP).

The expansion project forms part of the Philippine National Oil Company’s (PNOC) 192-MW Southern Negros Geothermal Production Field that supplies the power needs of the eight provinces in Negros, Panay, Guimaras and Cebu Islands.

Power supply to Panay, Guimaras and Cebu is conveyed through the submarine cables of the National Power Corporation (Napocor).

The 192-MW Palinpinon I and II geothermal field in Valencia town ranks fourth in the country in installed capacity. The three others are the 708-MW geothermal plant in Tongonon, Leyte; the 425.7-MW Mak-Ban plant in Laguna, and the 330-MW Tiwi plant in Albay.

The expansion project in Sitio Nasulo includes the development of a 20-MW geothermal field that involves the drilling of one production well and construction of the corresponding fluid collection and re-injection system.

To date, the plant site has already been prepared for the target commissioning of the 20-MW geothermal power plant in 2007.

It also forms part of the President’s agenda under the Philippine Energy Plan of 2005-2014 to find cheaper and alternative sources of clean and renewable energy such as wind, solar, and natural gas to drastically reduce the country’s dependence on imported fuel.

When commissioned to active service, it will help cushion the impact of the spiraling oil prices in the world market.

"It is important that we move away from oil-based fuel," the President stressed, adding that the Philippines is one of two major geothermal power users in the world today.

The Philippines today is the number one consumer and number two producer of geothermal power, next to the United States.

President Arroyo also thanked the town of Valencia for making its geothermal power available, and congratulated the Napocor-Palimpinon for being the most efficient Napocor plant in the country.

PNOC said the Palinpinon field has contributed $457.8 million in foreign exchange savings for 2004, and because of the increasing price of oil in the world market, it has also generated savings of $267 million from January to July so far this year.

Aside from providing power, the Palinpinon 2 geothermal expansion project will also take advantage of the incentives from the Kyodo Protocol that was signed by 155 countries including the Philippines in 1997 and ratified by Congress last year.

In response to the country’s desire to avoid harmful gases from oil, the Dutch government offered to buy credits equal to the Philippines’ estimated avoided carbon dioxide emission from the Nasulo project of 40,000 tons per year at $5.6 per ton or a total of $224,000 per year for 10 years.

Since Palinpinon is such a big source of geothermal energy, the President said it is also receiving some P250 million in royalty which is applied not only for livelihood, education and related projects, but also for the 50 percent subsidy on the electric bills of the consumers in Valencia.

The President flew to Valencia town on board her presidential helicopter at 11:00 a.m. from the Sibulan airport in this city.

She was accompanied by Energy Secretary Raphael Lotilla, Finance Secretary Gary Teves, Tourism Secretary Joseph Ace Durano, Negros Oriental 3rd District Rep. Herminio Teves, and Negros Oriental Governor George Arnaiz.

She and her party were welcomed by PNOC president Paul Aquino, PNOC chairman Ed Manalac, and local officials led by Valencia Mayor Rodolfo Gonzales Jr.

After lunch with the PNOC and local officials and farmers, the President flew to Tanjay City, some 30 kilometers from here, to inaugurate the P97-million Tanjay City public market, and witness the signing of the Negros Island Unified Sustainable Agricultural Development Project between Governor Arnaiz and Negros Occidental Governor Joseph Maranon.

DUMAGUETE CITY – The Philippines is now nearly self-sufficient in the power generation sector and about 90 percent of the country’s electricity supply is now generated using alternative sources of energy such as geothermal, hydroelectric and natural gas.

This means that only 10 percent of the country’s electricity supply is imported oil-based.

Earlier, National Power Corporation (Napocor) president Cyril del Callar told President Arroyo during her visit last Saturday to the Makiling-Banahaw geothermal plant in Bay, Laguna, that 99 percent of the electricity supplied to their Luzon power grid is now generated from indigenous and renewable energy resources.

Only one percent remains oil-based, Del Callar told President Arroyo, who in turn said she wants the figure to hit 100 percent by next year.

Recently, the President began visiting various power generation facilities across the country to promote the use of alternative sources of energy and lessen the country’s dependence on imported fossil fuels for power generation.

During her visit today to the Palimpinon geothermal plant in Valencia, Negros Oriental, the President noted that the country is now the world’s number one user of geothermal energy which saves it enormous amounts that otherwise would go to oil imports.

The Philippines now has a total generating capacity of 1,909 megawatts from geothermal energy, which makes it second only to the United States of America in geothermal power generation.

The Palinpinon geothermal power plant here currently generates 192 MW. An additional 20 MW would be generated upon the commissioning in 2007 of the Palinpinon II geothermal extension project in nearby Valencia town.

The project is the fourth largest geothermal plant in the country in installed capacity next to the 708-MW geothermal plant in Leyte, the 425.7-MW Mak-Ban plant in Laguna, and the 330-MW Tiwi plant in Albay.

PNOC president Paul Aquino said the expansion of the Palinpinon geothermal project would address the estimated 600 MW supply requirement of the Western and Central Visayas regions for the next eight to 10 years.

Describing it as a ‘heat shield’ that would protect the people from the vagaries of world economy, President Gloria Macapagal-Arroyo endorsed to Congress this afternoon the proposed P1.05-trillion 2006 budget that she hopes would be given utmost priority by the legislators.

It marks the first time in history that a proposed budget has passed the trillion-peso mark but the President is confident it will meet the scrutiny of Congress.

"It is our firm stand that the proposed budget for 2006 will move us several steps closer to the attainment of the 10-point agenda and closer to socioeconomic renewal and fiscal health for our country and people," she said.

Department of Budget and Management Secretary Romulo Neri and Undersecretary Mario Relampagos submitted the proposed 2006 budget to the House of Representatives today, a day ahead of the 30-day period given to the Executive branch from the time the President delivered her State-of-the-Nation Address last July 25.

The President is hopeful that Congress would give utmost priority to the proposed budget which she further described "as a strategic weapon against the looming oil crisis and as a strategic tool to fight poverty by placing our resources squarely on the socio-economic imperatives facing our people."

"I appeal to the legislature for its early consideration alongside the other equally urgent tasks facing Congress," the President said.

The Chief Executive said the proposed national budget, which is 14.7 percent or P134.6 billion higher than the previous year, is the government’s "continuing signal of fiscal strength and responsibility" as it is committed to improve the lives of the Filipino people.

Neri said next year’s budget is a "clear translation of the Arroyo administration’s 10-point agenda into doable actions and activities."

It heavily invests on education, transportation and digital infrastructure, and various economic and social projects that will stimulate more jobs, better access to education, electricity and potable water.

To realize this, the largest chunk of the budget was allocated to social services sector with P293.9 billion, half of which or P146.4 billion will go to education and manpower development.

The economic services sector gets the second largest chunk with P197.2 billion "to spur employment and spread economic progress to the countryside."

General services, which include public order and safety, account for 15 percent with P161.5 billion. The Defense department gets P52.4 billion or an increase of P8.33 billion from this year’s P44.17 billion. Five billion pesos has been allotted to the modernization of the Armed Forces of the Philippines (AFP).

Topping the list of departments having the biggest allocation is the Department of Education with P119.1 billion or P7.1 billion higher than this year’s budget.

Malacaņang today expressed confidence the government could fully finance the P1.05-trillion proposed national budget for next year and at the same time bring down the budget deficit to P124.9 billion from this year’s target of P180 billion.

President Gloria Macapagal-Arroyo said this optimism is partly borne by the 23.7 percent projected revenue expansion, the stronger economic growth of 6.1 percent, the expected inflation rate of 7.5 percent and the probable robust growth in imports of 11 percent in 2006.

The government’s projected revenue for 2006 is expected to reach P968.6 billion, 90.2 percent or P874.3 billion of which will come from taxes while the remaining P94.3 billion will be derived from non-tax sources such as fees and charges income, loan grants and privatization proceeds.

The expected income from the implementation of the Expanded Value Added Tax (EVAT), once the Supreme Court lifts the temporary restraining order it issued against it, is estimated at P82.6 billion to P105 billion.

The top three revenue-generating agencies of government -- the Bureaus of Internal Revenue, Bureau of Customs and the National Treasury -- are expected to generate some P675.4 billion, P190.4 billion and P51.9 billion, respectively.

The target deficit will be financed by P150 billion net borrowings, of which P102.4 billion or 68.3 percent will come from foreign loans while the remaining P47.6 billion will come from domestic borrowings.

The proposed P1.05-trillion national budget for 2006 includes P13.1 billion for the salary increase of state workers.

The allocation has been included in the Compensation Adjustment Fund, Department of Budget and Management Secretary Romulo Neri said in a press briefing in Malacaņang this afternoon.

Neri said the salary adjustment has long been overdue as the state workers received their last salary increase four years ago.

The proposed increase, which would be from 8 to 9 percent of the basic salary of a state worker, is a fulfillment of the President’s promise to augment the compensation of government workers, Neri said.

The Department of Energy (DOE) has projected a conservative 10 percent reduction or P80-million savings per month on energy and fuel consumption as the energy conservation program of President Gloria Macapagal-Arroyo shifts to high gear.

In a press conference this afternoon at Malacaņang, Energy Undersecretary Peter Anthony Abaya said the target is to reduce by 10 percent the average electricity bill for the first semester and by 10 percent the average fuel bill for all government agencies.

He cited the P80-million savings the government realized in its four-day work week program implemented in April and May this year.

Abaya enjoined the private sector to replicate some of the energy conservation measures or be more creative in initiating their own enercon programs.

Abaya disclosed that the energy audit team recently created to check the progress of the energy conservation program has already met with President Arroyo and come up with a checklist of the audit measures to be conducted in government agencies.

An energy conservation officer, he said, will be appointed in each bureaucracy with the rank of no less than an undersecretary.

The first level of checking is the 45 minutes spot check in and out of the agency. A second level of monitoring will be at the end of the set period wherein the monthly bills of electricity and fuel will be checked in relevance to the measure that they have done.

"Site inspection and monthly electric bills shall form the basis of a rating system for all agencies under the Executive Branch of Government. The agencies with high-energy consciousness will merit an "A" rating while those who flunk the audit would have to bear the shame of an "F" rating. Agencies with minimum compliance or a passing mark will be given a "C" rating," Executive Secretary Eduardo Ermita said.

Ermita warned that administrative sanctions will be given to violators of the enercon program and that the results of the energy audit as well as the names of agencies belonging to the honor and horror rolls will be announced through the media.

Road Board officials today dismissed claims by certain quarters that the Special Road Support Fund (SRSF) otherwise known as the Road User’s Tax (RUT) fund, has been used to "bribe" lawmakers into voting against the impeachment complaint filed against President Gloria Macapagal-Arroyo.

In a statement, the Board said allocations of the Special Road Support Fund are based on thorough technical studies by the Department of Public Works and Highways (DPWH) and definitely not on "political considerations."

The joint DPWH-Road Program Office Technical Committee, it added, was created to recommend the adoption of guidelines on the preparation, evaluation and approval of the 2005 annual program for the preventive maintenance component of the SRSF.

The committee takes into account vehicle density, vehicle load and length of roads of each region nationwide when determining how much a region should receive from the RUT fund.

The officials also belied claims that opposition solons did not receive anything from the P2.2 billion RUT fund.

Documents supplied by the Road Board showed that P399.395 million was appropriated for areas of opposition lawmakers with Davao City Rep. Ruy Elias Lopez getting the highest allocation at P33 million.

Also included in the list are: Cebu Rep. Clavel Martinez, P9 million; Nueva Vizcaya Rep. Rodolfo Agbayani, P30 million; Laguna Rep. Justin Chipeco, P15 million; South Cotabato Rep. Darlene Antonino-Custodio, P15 million; South Cotabato Rep. Arthur Pingoy, P15 million; House Minority Leader Francis Escudero, P10 million; Taguig-Pateros Rep. Alan Peter Cayetano, P10 million; Quezon Rep. Proceso Alcala, P10 million; Bukidnon Rep. Nereus Acosta, P7.6 million and Muntinlupa Rep. Rozzano Rufino Biazon, P10 million.

Under Republic Act No. 8794, the SRSF specifies fund shares for road maintenance, drainage improvement, traffic lights and other safety devices installation and pollution control.

It also mandates the Road Board, composed of the secretaries of Finance, Public Works and Highways, Budget and Management and Transportation and Communications, to manage the utilization of the fund.

In a related statement, the Department of Agriculture (DA) also debunked allegations that DA funds were used to fund Mrs. Arroyo’s presidential bid in 2004 and said the claims form "part of a black propaganda campaign" against the President.

In a statement, DA officials said the claims that DA funds were used in the 2004 elections were "actually recycled accusations from a complaint filed by a losing opposition senatorial candidate" with the Ombudsman.

"We do not understand why this issue, which has been referred to the proper forum, is now again being resurrected when, in the first place, all allegations made have already been effectively rebutted and debunked," DA Assistant Secretary for Finance and Administration Felix Jose Montes said.

Montes was referring to the complaint filed by lawyer Frank Chavez shortly after the May 2004 elections charging several DA officials of diverting DA funds during said electoral exercise.

In his complaint with the Ombudsman, Chavez alleged that the DA, in its Special Allotment Release Order (SARO) dated Feb. 11, 2004 for P1.1 billion had included an alleged list of congressmen to receive P3 million each in agricultural funds.

"The SARO did not need to have such a list of solons included because this funding request was for our operating expenses. What was submitted to the DBM did not include this alleged list and we have no idea where this list came from. As far as we are concerned, this is a spurious and manufactured document," Montes stressed.

The DA official also clarified that the release of funds for the DA’s Farm Inputs and Implements Program (FIIP) was done in accordance with approved rules and regulations.

He said DA’s FIIP released P728 million to local government units (LGU) last year, but stressed that this was not an election-related activity but part of the department’s regular programs to ensure agri-productivity and continued output for the nation’s food security needs.

The FIIP is a long standing and major DA program designed to provide support to LGUs. Requesting parties for the various agri-projects for approval include governors, mayors and congressmen.