Private infra spending easing pressure on gov't budget - Arroyo

SAN FERNANDO CITY, La Union - President Gloria Macapagal Arroyo on Tuesday expressed confidence that the government will sustain headways in keeping the budget in check, as she maintained that keeping a balanced budget remains a top government priority. During the inauguration of the Philippine Long Distance Telephone Company's (PLDT) $550-million cable network in Bauang town in this province, President Arroyo said private infrastructure spending is crucial in keeping the government budget balanced. Mrs Arroyo also noted that even rating agencies including Moody's have taken notice of the country's fiscal progress. "I am confident we will be able to sustain progress on the budget front. Thanks to private infrastructure spending like this international gateway, for the first time in a generation our budget is under control. We are lowering our deficit and raising unprecedented amount of revenue," President Arroyo said. "Our commitment to economic has proven effective, we're both comfortable and confident that our discipline will allow us to continue on a balanced path of targeted investment and overall restraint. Balancing the budget as I said remains a very important priority that will not be abandoned. But we will do this while investing in much-needed infrastructure in social services," she added. President Arroyo also said private sector spending eases the pressure of having to impose new taxes. "With firms like PLDT taking a large burden of building vital infrastructure, there is no need for new taxes. We have plenty of room to increase revenue by enhancing tax administration - and tax administration can be enhanced because we have better internet services," the President said. During her speech, President Arroyo also disclosed plans by the PLDT to build a third cable fiber network in the southern Philippines, but did not elaborate. - GMANews.TV