Philippine President Gloria Macapagal-Arroyo Thursday underscored the central focus on the economy for her new term with the introduction of the first in a series of economic reform packages.

"I ran on a platform of economic experience, political reform and a commitment to make the investments needed to raise our poor into a new middle class. I have a new mandate to carry out this agenda, and that process starts today," Arroyo said in a pre-State of the Nation Address (SONA) speech to the business community and media here.

"The economy is central to every aspiration we have for the Philippines and it is my first priority. The Job Creation and Economic Growth package addresses one of our most formidable challenges, which is consolidating our government budget," she said.

In general, the Philippine macroeconomic policies will be directed at achieving a balanced budget in six years, reducing theConsolidated Public Sector Deficit to 3 percent of Gross Domestic Product (GDP) also in six years, developing a self-sufficient, competitive power sector, creating a strong and stable financial/banking sector, and promoting and generating greater investments, entrepreneurship and trade.

The first package comprises a comprehensive set of revenue generation and spending reduction initiatives, both legislative and administrative, which will enable the government to eventuallybalance its budget and reduce the drain on government finances.

Eight new measures in the first Package are designed to increase revenues by broadening the tax base and improving collection efficiency, including the gross income tax system; the repeal of the Value Added Taxes to be replaced by a measure that is "simpler to administer and would increase compliance"; and the creation of performance-driven system for revenue agencies.

These measures, taken together, are estimated to generate additional annual revenues of over 100 billion pesos (1.79 billionUS dollars), and savings of approximately an additional 100 billion pesos, according to the government.

Heightening promotional efforts for trade and investments, and developing infrastructure by fast tracking the implementation and approval of ongoing or pipeline infrastructure projects are also included in the first package.

Other initiatives also include the revitalization of the miningsector, mobilization of capital to support Small and Medium Entrepreneur growth, conclusion of several regional trade agreements by next year and efforts to develop strategies to leverage the tremendous advantage of the Philippines in health care services, Information Technology services, including Business Process Outsourcing, as well as logistics and distribution.

In her speech, Arroyo also called for public-private sector partnership in achieving her Administration's economic policy imperatives for her new term.

The package is the draft of part of Arroyo's SONA which will be delivered on Monday

Source: Xinhua