If there is one fact that the president’s detractors could not probably argue with, it is her determination to bring fiscal stability to the country to enliven the economy, even at the expense of her popularity. It has also been her intention to leave a legacy of fiscal prudence and order.

It may be recalled that when she assumed office in 2001, the president faced fiscal concerns such as declining revenues, increasing deficit, expanding outstanding national government debt, and large share of short term national government debt.

To address these concerns, the president adopted prudent government spending and pursued various key fiscal and economic reforms, such as: (1) Increasing Administrative Efficiency (BIR Computerization, Third Party Information, stronger audit process, and improved operational system); (2) Improvement of Tax Administration (increased tax compliance, strengthened governance, and improved taxpayer customer service); and (4) Implementation of Governance Measures such as the RATE (Run After Tax Evaders), RAT (Run After Smugglers), and RIPS (Revenue Integrity Protection Service).

The president also worked for the passage of important legislative reforms, such as R.A. 9334, the Rationalization of the Excise Tax on Alcohol, Cigarettes, and Tobacco Products, which increased the excise tax rates for tobacco/cigarettes, alcohol and fermented liquor; R.A. 9335, the Lateral Attrition Law, which established a system of rewards and incentives covering revenue and customs officials and employees; and R.A. 9337, the Reformed Value Added Tax Law, which expanded the VAT base by removing unnecessary exemptions and increased rate from 10 percent to 12 percent.

These helped the Arroyo administration to almost reach its balanced budget position in 2007, ahead of its 2010 target, when it substantially reduced its budget deficit to P12.4 billion from P147 billion in 2001. The P12.4-billion budget deficit in 2007 was the lowest since 1998.

The fiscal deficit for the first five months of this year effectively held in check at P123.2 billion, or only 79.4 percent of programmed ceiling of P155.1 billion for the first half of 2009.

The president intended to balance the budget before her term ends in 2010. This goal, however, proved unattainable when the country had to pump-prime the economy in the face of the global economic meltdown that drove its major trading partners such as the United States and Japan into recession last year.

Also, the huge amount needed to embark on the reconstruction program in the aftermath of three consecutive typhoons since September this year will aggravate the situation.

However, the president, with the help of her economic team, is doing everything to put the fiscal position in order and squelch speculations that the next president will inherit a bankrupt government.

In fact, based on the briefing given the president every week, the economy is improving and global recession easing up. This year, the World Bank projects the Philippines’ Gross Domestic Product or total domestic output will grow by one percent.

As you can see, the future is not as bleak as some of our detractors paint it. Together, we can definitely make it much brighter.