We are hopeful that the credit rating agencies will appreciate and take into consideration the positive gains we have achieved on our tax reform measures.

Malacaņang reiterated today its assurance that the proposed two percent increase in the Value Added Tax (VAT) hike on selected goods and services will not unduly affect prices of prime commodities.

In a radio interview this morning, Press Secretary Ignacio R. Bunye reiterated anew that prime commodities which constitute nearly 70 percent of what ordinary Filipinos buy in the market, will be exempt from the increased VAT.

Congress is now working on the proposed VAT hike law which forms part of the package of measures Malacaņang has endorsed for enactment to help shore up the government’s fiscal position and reverse the credit rating downgrade certain credit rating agencies have recently given the Philippines.

Bunye said the prime commodities excluded from the proposed VAT rate hike include rice, corn, vegetables, fish, chicken, pork and many others.

He said that during the Legislative-Executive Development Advisory Council (LEDAC) caucus held in Malacaņang yesterday, the council members agreed to further expand the list of exempted items.

"What are these additional products to be exempted from VAT? They include noodles, bread, sardines and certain other basic commodities being bought by ordinary people. The additional list for exemption from VAT forms part of the safety nets as mentioned by the President to protect our less privileged consumers," Bunye answered his own question.

On reports that prices of agricultural products like vegetables coming from Baguio City and Mountain Province have suddenly soared, he said VAT has nothing to do with such price increases. He suggested they may have been occasioned by natural causes, including the cold weather.

We are confident that General Calimlim is prepared to back up his statements with proof and he must be given a chance to perform given the fact that he has just started in his post.

The President’s order is to spare no sacred cows in the anti-smuggling campaign and General Calimlim is assured of full backing on this score.

At least 273 members of the Presidential Security Group (PSG) and their dependents were listed as the newest beneficiaries of First Gentleman Jose Miguel T. Arroyo’s free prosthetic denture project dubbed as "Bagong Ngiti sa Dating Ngebu."

What was initially conceived by Attorney Arroyo for edentate or toothless indigent market vendors when it was launched in October 2004 at the Quinta Market, in Manila, has now been expanded to include and benefit other toothless needy patients.

To date, the First Gentleman’s free denture project has already benefited at least 912 persons. The project beneficiaries now include police personnel from the National Capital Region, poor residents of Santiago City in Isabela, low-income employees of the Philippine General Hospital (PGH), media men and other poor client groups.

The project for the PSG members was launched Wednesday by Mr. Arroyo, before he left for China. PSG group commander, Col. Delfin Bangit, and other officials joined and welcomed the First Gentleman.

The examination and fitting of the dentures of the beneficiaries were conducted by staff members of the PSG dental service, led by Maj. Arnel Romero.

In thanking Mr. Arroyo, Romero said the project is a big help for the PSG personnel and their dependents.

"Some (PSG men) who have other pressing family requirements often neglect their oral health needs and their personal appearance concern," he said, noting that toothless people often do not realize the importance of having a confident smile by having dentures that contribute to their sense of self confidence.

In behalf of his PSG members, Romero expressed his profound thanks to the First Gentleman for his generosity, support and concern for the overall welfare of his men and their dependents.

In a brief remarks, the First Gentleman told the PSG members the project is his way of expressing his appreciation for the good work the PSG men have been doing for the President and the First Family.

Through the project, he said, those needing dentures need not spend for them anymore as "these are already being taken cared of by somebody who loves them, the President."

Earlier, the First Gentleman had also donated P3 million for the repairs and upgrading of the PSG barracks.

He likewise announced the inclusion of PSG personnel and their dependents in his free cataract surgery project that was started at the PSG hospital.

A scion of the Tuason family, Mr. Arroyo provides the funds for these projects from his personal resources.

The First Gentleman left today for Beijing, China where he, together with Gen. Victor Corpuz, Anti-Illegal Logging Czar, will procure 100 million seedlings of paulonia trees to be used in the reforestation initiative of President Gloria Macapagal Arroyo’s administration.

While in China, Mr. Arroyo will also met with Chinese sports officials and discuss the training of Filipino athletes in wushu, in preparation for the Southeast Asian Games in Manila on November 27 to December 5 this year.

The First Gentleman also announced that the funds he raised for the training of Filipino athletes for the 2005 SEAG has now reached P160 million and counting as many groups have expressed their support for the country’s gold medal campaign in the games.

The amount has surpassed his P120 million original target.

President Gloria Macapagal-Arroyo announces today changes in her Cabinet with the appointment of the following: Former Trade and Industry Secretary Cesar V. Purisima as secretary of the Department of Finance; Mr. Juan Santos as new secretary of the Department of Trade and Industry; Mr. Raphael Lotilla as secretary of the Department of Energy, and Mr. Alberto Lina as new commissioner of the Bureau of Customs.

Commissioner Guillermo Parayno was prevailed upon by the President to continue as head of the Bureau of Internal Revenue (BIR).

Secretary Purisima moves from the DTI to DOF to replace Secretary Juanita Amatong. Prior to his joining the government, he was chairman and managing partner of SGV & Co.

Prior to his appointment, Santos was a member of the Governance Advisory Council, and private sector representative for the Public-Private Sector Task Force for the Development of Globally Competitive Philippine Service Industries.

Lotilla was president and chief executive officer of the Power Sector Assets and Liabilities Management Corporation (PSALM), the government corporation tasked to manage the privatization of generation assets.

The Holy Bible is the most beautifully written book in the world. God’s love lives in its pages.

As we celebrate National Bible Week, let God’s words be our sanctuary, especially in this year of urgent change and fervent hope.

Let’s work for national solidarity through prayer and hard work.

Two recent positive developments continue to support our confidence that things are looking up for the country’s economic recovery.

The first was the appreciation of the peso at a one-year high of 55.40 against the US dollar. It was the lowest close since ending at the same level on January 13, 2004. This strong performance was attributed to the bullish stock market activity, mostly due to the strong influx of foreign funds.

The second was the drop in poverty among Filipino families by almost three percentage points from the 27.5 percent revised estimate for 2000 to 24.7 percent in 2003.

The new estimates released by the National Statistical Coordination Board (NSCB) indicate a decrease from the 2000 levels of 4.1 million families or 25.4 million Filipinos living below the poverty line to about 4 million families or more than 23.5 million Filipinos in 2003.

These developments, combined with the revenues that our new tax measures will generate and our intensified fight against corruption, affirm our belief about the prospects of our economy getting ever brighter.

The expected passage soon of the VAT bill further sends the single collective heave of political will that will free us from the albatross of a huge budget deficit that stands in the way of our stability and growth.