President Gloria Macapagal-Arroyo opened the Council of State meeting this morning on a hopeful note that the gathering would lead to greater reforms and build on what is right, not on what is wrong with the Philippines.

In her opening message to the distinguished audience at Malacaņang’s Rizal Hall, the President called on the attendees to focus on issues of abiding concern to the people, notably the "strengthening of the economy, providing social justice and forging ahead with reforms that make the government work for the people."

"I hope that the work of the distinguished gathering is to unite, not divide the nation. To focus on real issues of concern to the people. Let us not go down the path of petty politics, for the people are weary of politics. Rather, they will be energized by reform," she said.

More than 75 well-known personalities from various sectors of society, including the youth, church, business, women, non-government organizations (NGOs) and government, accepted Malacaņang’s invitation to the meeting.

Aside from Vice President Noli de Castro, the other attendees included former President Fidel V. Ramos, Speaker Jose de Venecia Jr., senators, congressmen and business leaders.

The Chief Executive said the Council of State meeting would focus on the economy, governance, electoral process, the fight against terrorism, the fight for political stability, the struggle against poverty and the country’s right to engage in global affairs.

"Each of these matters is essential to our nation and form the core of my work everyday," she said.

She said that "much is right about the nation" such as the creation of a million jobs a year since she became president, more investments, a strong peso, the darling of Asian currencies in 2005; the best performing stock market in Asia in 2005, and a deficit that is P30 billion lower than earlier projected.

The President said she was "humbled and feel blessed that some of the nations most vibrant and forceful leaders have chosen to come to this meeting. I deeply respect your willingness to come forward and speak with strength, courage and conviction about the issues that matter most to you."

She said she expected disagreements during the discussions but assumed that the attendees were one and united with her in her goal of improving the nation and any differences in opinion would be "based on principle and love for country."

"In this room, I believe there are no disagreements based on malice that would undermine the nation," she said.

"Democracy is about choice, and that means that people must decide when and how to participate in the direction of the nation."

In a slight reference to opposition leaders who snubbed her invitation to the council meeting, the President said, "I’m mindful that some individuals and groups have chosen to exercise their democratic right not to be here today. I respect their decision. I thank them for their commitment to our nation."

Former President Fidel V. Ramos, Vice President Noli de Castro and House Speaker Jose de Venecia Jr. called today on Filipino leaders to unite and work together to steer their country to progress.

The three leaders made their call during the Council of State meeting held at the Rizal Hall in Malacaņang. They urged other leaders to set aside their differences and put an end to the protracted and debilitating political divisiveness that has hamstrung the country’s development.

"The real threat to our democracy is our loss of common purpose and our lack of unity and teamwork," former President Ramos said.

He said that in his 52 years of public service, the national welfare, the well-being of the people and the security of the nation have always been his abiding concern.

Ramos said "no nation is built from square one nor simply rebuilds every time there is a change in government" as he stressed the need to continue, build on and strengthen the foundation already laid by former leaders.

Vice President de Castro, on the other hand, urged attendees of the Council of State meeting to work with an open mind and a willingness to "sacrifice for the greater good of the country."

He cited boxing champion Manny Pacquiao’s call for humility, unity and sincerity among all Filipinos for a better and progressive Philippines.

Speaker de Venecia, for his part, called on everyone to put an end to divisive politics, even as he noted that the diverse representation of the various sectors of society in the meeting constituted "a show of unity among Filipinos."

It is not only Manny Pacquiao’s devastating victory over Mexican Eric Morales that the Filipino nation should celebrate, according to President Gloria Macapagal-Arroyo.

Equally scintillating and worth rejoicing is the country’s triumph over its debilitating budget deficit which has gone down from P180 billion to P146.5 billion last year, she said.

The President announced the good news during a roundtable discussion with Finance Secretary Margarito Teves, Budget Undersecretary Lora Pascua, Customs Commissioner Napoleon Morales, Revenue Commissioner Jojo Bunag and National Treasurer Omar Cruz in Malacanang Monday afternoon.

"Our budget deficit has gone down from P180 billion to P146.5 billion or P33 billion less than expected," she said.

With this development, the President said she expects a more favorable view of the country’s finances.

She pointed out that with lower interest charges on the country’s borrowings as a result of improved government finances, more funds will be available for basic services, infrastructure projects and wage increases for teachers, soldiers, policemen and other government employes.

Improved treasury operations, the President explained, resulted in higher revenue collections while strict cost-cutting guidelines generated significant savings, paving the way for a lower-than-projected budget deficit.

"They overachieved," she said in reference to the P33 billion over-performance of the National Treasury, which handles the government’s cash collections and investment program.

Cruz said the Bureau of Revenue (BIR) and the Bureau of Customs likewise did their share by improving their operations. BIR tax collection was up 14.7 percent over that of the previous year, while BoC’s tax take was 15 percent higher in 2005 compared to that of the previous year.

For her part, Pascua said the government saved P13 billion in interest payments because of the lower interest rates and lesser borrowing. Another P6 billion was saved in maintenance costs because of the austerity measures implemented by the government.

"That’s why we can do away with half of the accounts payable this year," Pascua explained.

Teves said he expects a higher economic gross this year with the continued enforcement of fiscal discipline in government operations.

Malacanang released today Executive Order No. 495 creating a Charter Change Advocacy Commission to promote the shift from the present presidential to a parliamentary form of government.

President Gloria Macapagal-Arroyo signed the EO Monday on the eve of Council of State meeting in Malacanang this morning.

Under E.O. 495, the Advocacy Commission shall be composed of not more than 15 members that include former members of the Consultative Commission (ConCom) and representatives from the academe and private sector organizations to articulate issues involving constitutional reforms.

Copies of the Executive Order were distributed at the conclusion of the Council of State meeting this afternoon at the Rizal Hall of Malacanang.

In attendance, aside from the President, were Vice President Noli de Castro, former President Fidel V. Ramos, Cabinet members, members of both Houses of Congress, and representatives from the business and other sectors.

Three very important areas of concern in governance--Charter change, electoral reforms, and social development were discussed at the meeting.

The President said discussions on Charter change underscored the need for a full public discussion of the proposed Charter change.

"In charter change there were very animated discussions. What we see is that there is a need for information (on the proposed charter change). We are proposing the convening of a Charter Change information group made up of non-politicians, with members of the Consultative Commission (ConCom) and representatives of the basic sectors," the President said.

Under E.O.495, the Office of the Press Secretary (OPS) and the Philippine Information Agency (PIA) were likewise tasked to conduct an information and education campaign on the proposed constitutional change.

The shift from the present unitary structure of government to autonomous territories/federal states is embodied in the Consultative Commission (ConCom) proposal to amend the 1987 Constitution that was submitted last Dec. 16 to Malacanang. In turn, the President forwarded the proposal to the House of Representatives.

The President said that in their discussions, attendees of the Council of State meeting had a great deal of consensus on electoral reforms on top of a significant number of recommendations on social development.

The President also thanked the commitment and valuable efforts of everybody who attended the meeting.

President Gloria Macapagal-Arroyo announced today the appointment of former Chief Justice Hilario Davide as Presidential Adviser on Electoral Reforms.

The President disclosed Davide’s appointment in her closing remarks at the Council of State meeting this afternoon at Malacanang’s Rizal Hall.

Under the Executive Order creating the Office of the Presidential Adviser on Electoral Reforms, Davide is mandated to "examine the electoral process and system, and make the appropriate recommendations to the President towards the establishment of greater efficiency, modernization and credibility of the said electoral system."

The President noted that during the council meeting, there was a there was a "great deal of consensus on the need for electoral reforms. In order to shepherd electoral reforms I am very proud that former Chief Justice Hilario Davide has consented to be my Presidential Adviser for Electoral Reforms."

"Whereas, it is important to maintain the sanctity and credibility of the electoral process as well as institution(s) that is/are conferred by the Constitution with the exclusive charge of the enforcement and administration of all laws relevant to the conduct of elections for the purpose of insuring free, orderly, honest, peaceful and credible elections," the EO said.

Electoral reforms, especially the computerization of the electoral process, is included in the ten-point agenda of the President.

Under the EO, the Office of the President will provide technical and administrative support to the PA on electoral reforms. The OPAER will be allotted P5 million for its operations.

The President also authorized the Executive Secretary to detail any personnel from any government office to assist the PA for electoral reforms.

Davide, a former chairman of the Commission on Elections (Comelec), will submit his report and recommendations to the President not later than 60 days from the commencement of his duty.

Executive Secretary Eduardo Ermita said that among Davide’s duties as PA for electoral reforms is to see what reforms should be instituted in the Commission on Elections (Comelec). "But most importantly, he will help the search committee look for new nominees to the Comelec," he added.