Ochoa says OP more transparent and responsible in spending 2011 budget
Offices under the Office of the President (OP) will now have to work and live within their specific budgets, according to new policies being instituted by Executive Secretary Paquito N. Ochoa Jr. to ensure transparency and accountability.
In a departure from previous spending practices, offices directly under the Office of the Executive Secretary—referred to as OP Proper—have each been given fixed budgets for 2011 based on their personnel and operations requirements.
In the past, all OP Proper offices were allowed to request funds from the lump-sum appropriations of the OP subject to the discretion of the executive secretary, a practice that led to “lax fiscal discipline” because each office would ask for money as needed instead of learning to program their expenses within a specific budget, Ochoa explained.
“The problem with the previous set-up was that offices knew they could always request for funds when their funds dried up as long as they knew there were funds available,” he added. “That’s just not consistent with our policies regarding the prudent and judicious use of our resources.”
The 2011 OP budget is 4.07 billion pesos, almost 200 million pesos less than the 4.25 billion pesos appropriated last year. Its intelligence fund was cut down to 400 million pesos from 650 million pesos in 2010, upon the initiative of the Executive Secretary.
“The President made it clear in his budget message that all agencies would exercise transparency and prudence with regard to their budgets, and we will lead by example by doing the same,” he said. (PCOO)
LRT, MRT fare hike reasonable, says Aquino
SUBIC FREEPORT ZONE: President Benigno S. Aquino III on Thursday said fares of the Metro Railway Transit and the Light Railway Transit will be adjusted only to the level of airconditioned buses.
In an interview after he led the naming of two bulk carriers built by Hanjin Philippines, the President stressed that the cost of LRT and MRT services are still relatively lower considering the faster travel time on board light rail systems compared to buses plying traffic-congested roads.
The government will soon reduce its subsidy for the MRT and the LRT. The funds saved and revenues generated will benefit even those living outside Metro Manila.
The Department of Transportation and Communications said the much-needed fare hike will help the government improve operations and increase the capacity of the overcrowded train lines.
To get from one end of the MRT line to another currently costs P15, making the train one of the most efficient ways to travel in Metro Manila.
However, the real cost of transporting a passenger on the train may go as high as P60. The difference, the DOTC said, is shouldered by the national government, or taxpayers, including those who live outside Metro Manila.
In his first State of the Nation Address, President Aquino said ordinary tax payers have been forced to foot the bill of the rising costs of running the trains because of the previous administration’s refusal to hike fares. (PCOO)
Aquino assures inventors – friendly Philippines
SUBIC FREEPORT ZONE: President Benigno S. Aquino III on Thursday his administration is exerting all efforts to provide an investor-friendly environment to encourage more investments.
“Government agencies are providing incentives to investors to encourage more investments…,” the President said in his message at the blessing and naming of two bulk carriers built by Korean shipbuilder Hanjin Heavy Industries and Construction Co.-Philippines (HHIC-Phil.) for India’s Adani Shipping PTE.Ltd. The ceremony was held at the HHIC Shipyard at the Subic Freeport Zone (SFZ) in Zambales.
Among these incentives, he said, include the exemption from the value added tax any importation of equipment and machineries; income holiday and exemption of duties for selected equipment; and lowering of restrictions for use of consigned equipment, among others.
The President said he is also working hard at eliminating corruption and poverty, and creating more jobs.
The President expressed his gratitude to Korea for being the country’s leading foreign direct investor for the first semester of last year with a total of P24.2 billion or 40 percent of the total foreign direct investments.
He noted that Korea continues to funnel in more long-term investments in the country, particularly that of Korea’s largest shipbuilder—Hanjin Heavy Industry and Construction Co. Ltd- , which invested some $1.9 billion.
“I assure you that this confidence in the Philippines is not displaced,” he added.
Hanjin, since it started operations in the country in 2006, has built two ships a year resulting to $3.4 billion worth of shipping exports annually.
But more importantly, the President further noted, are the jobs created for the Filipino people.
“You have granted a lifeline to many Filipinos…which has a full effect to communities and their families,” he said.
The President, together with Adani Shipping PTE. Ltd. officials led by company managing director Rajesh Adani, HHIC Chairman N.H. Cho, SFZ Administrator and Chief Operating Officer Armand Areza and provincial officials joined the President in naming M/V “Rahi” and M/V “Vanshi.”
The Chief Executive also led the rope cutting ceremony of the two bulk carriers, signaling that it was ready to sail.
The vessels which were named after Adani’s two daughters--, both have a 175,000 dead-weight ton (DWT) and hulls made of steel with overall length of 289 meters and a registered length of 279.98 meters.
Gross tonnage of each bulk carrier is 91,829.0 tons while the net tonnage is 59.082 tons. (PCOO)
