The executive-legislative partnership remains just as strong and determined to put our fiscal house in order.

The bills in the pipeline have been consolidated and sharpened to meet our specific revenue target of P80 billion in the earliest time possible.

Our lawmakers are keenly aware of the urgency of the full span of economic reform measures.

Political stability and economic buoyancy drive the optimism of the majority of the Filipino people for the new year.

President Gloria Macapagal-Arroyo’s ten-point agenda is being carried in full span and we are raising the revenues and the budget to make it happen.

Malacaņang today expressed elation over the pace of the transformation of what used to be Metro Manila’s two biggest garbage dumps into modernizing urban communities under the government’s housing program for the poor.

Press Secretary and Presidential Spokesman Ignacio R. Bunye said President Gloria Macapagal-Arroyo was satisfied that the development of the former Smokey Mountain and Payatas, as well as the Baseco Compound, is on track.

Baseco compound, a teeming squatters’ colony in Port Area, Manila, was hit by fire twice last year.

The President, accompanied by Vice President Noli de Castro and Social Welfare Secretary Corazon Soliman, visited Baseco, Smokey Mountain in Tondo, Manila and Payatas in Quezon City yesterday to personally assess the progress of the government’s development plans for the three areas.

The upgrading of Payatas is expected to gain further momentum in the next few weeks following the release yesterday of P27 million for the housing project.

The amount was contained in four checks and certificates of payments that the President handed over to representatives of the four homeowners’ organizations in Barangay Payatas – the Don Carlos Heights Homeowners Association, Family Ten Homeowners Association, Kalsag Homeowners Association, and Group 3 Homeowners Association.

Celso de los Angeles, president of the National Home Mortgage and Finance Corporation (NHMFC), said the P27 million represents the total loan approved by NHMFC for residents of Barangay Payatas under the government’s Community Mortgage Program (CMP).

The President said the amount would bring to more than 900 the total number of families that have acquired ownership of the land they have been occupying for years.

The government’s budget deficit could be wiped out way ahead of the end of President Gloria Macapagal-Arroyo’s term if the revenue-generating measures being pushed by Malacaņang are passed by Congress this year.

This was the assessment of Finance Secretary Juanita Amatong as she expressed confidence that the government’s goal of fiscal consolidation could happen earlier than the 2010 target.

In a meeting with newly appointed Japanese Finance Minister Sadakazu Tanigaki, Amatong said the budget deficit for 2004 was likely to slow down to only P192 - P193 billion, lower than the P197.8 billion target due to the higher than expected revenue collection.

"We have very good results in 2004," Amatong said, "We are expected to post a deficit in 2004 that is lower than what was programmed.

Amatong made the revelation after Japan indicated its interest in knowing how the government planned to solve its fiscal problems.

Japan is the biggest provider of official development assistance (ODA) of the Philippines.

Amatong said the government’s ability to achieve a zero deficit earlier than scheduled largely hinges on the approval and implementation of revenue-raising measures.

In a statement released today, Press Secretary and Presidential Spokesman Ignacio R. Bunye said that the revenue bills pending in Congress have been consolidated to meet the specific target of P80 billion at the earliest time possible.

The newly enacted "sin tax" law alone is estimated to generate P15 billion in additional revenue a year for the government.

Construction of the $400 million North Rail Phase 1 Project (Caloocan to Malolos), including the Philippine National Railways right of way clearing, is now in full blast.

This was contained in a status report of President Gloria Macapagal-Arroyo’s 10-point agenda released over the yearend as part of government efforts to decongest Metro Manila by developing new centers for government, business and housing nationwide.

The report said bidding for consultancy services for construction supervisions is ongoing and is scheduled to be completed by April this year.

All 626 families affected along the Caloocan alignment have been relocated to Towerville as of October 2004, according to the report.

For the Malabon-Valenzuela alignment, the Housing and Urban Development Coordinating Council (HUDCC) has completed the consultation process, issued the notices of demolition and established processing centers.

Of the total 7,505 censused-families, a total of 5,118 families have already submitted their applications for relocation.

Of the total applicants, 2,202 families have been relocated to Barangay Bignay Relocation Site in Valenzuela City and 385 families to the NHA Resettlement Project in Towerville, San Jose del Monte, Bulacan.

A total of 2,531 families have availed of housing financial assistance ranging from P40,000 to P50,000 each.

Meanwhile, feasibility study on the $126.76 million Korean-funded South Rail Project is now under review and evaluation by the National Economic and Development Authority (NEDA).

Rehabilitation of Phase I from Magallanes in Makati City to Legaspi, Albay shall commence this year and is targeted for completion by 2009.

Phase II, which involves the construction of the Sorsogon Railroad extension shall commence in 2010 and is expected to be completed by 2011.

Malacanang expressed confidence today that former President Joseph Estrada would keep his promise not take any action that would disrupt the stability of the government.

In a phone-patched interview, Secretary Silvestre Afable head of the Office of the Communications Director (OCD) said that Estrada still has a lot of influence but has promised not to engage in any destabilization plot against the Macapagal-Arroyo government.

"We do not know the plans of President Estrada and we take his words that he is not going to engage in any destabilization," he said.

Afable was reacting to a report that Estrada was not discounting the possibility of another people power move to topple the government.

In the interview with ANC, Estrada, however thanks President Gloria Macapagal-Arroyo for "being compassionate" last year for allowing him to stay in his Tanay (Rizal) rest house and giving him permission to undergo a knee surgery in Hong Kong.

Afable said it is clear from Estrada’s earlier statement that what he only wanted to do upon his return from his knee surgery in Hong Kong is to unite the opposition that had been divided during the campaign period.

Afable stressed that that there is no reason for any sector to resort to destabilize the government.

"Nanatiling matatag ang sistema ng pulitika sa bansa at ang economic atmosphere ay patuloy na lumalakas dahil sa mga inilatag na programang pangkabuhayan ng administrasyong Arroyo, (The political system in the country is very stable and the economic atmosphere has greatly improved with the livelihood programs laid down by the Arroyo government)," he said.

Afable said that President Arroyo welcomed the move to unify the opposition and this is important for the democracy in the country and will be an effective alternative plan for the opposition.

He said the opposition is important for the system of in order for the people to understand the efforts and struggle of the government to uplift their lives.

"Kahit kailan hindi umiral sa administrasyong Arroyo ang anumang uri ng political harassment," Afable said.