Today marks another display of the close collaboration of the executive and legislative branches to ensure the success of the structural reforms that we had started earlier.

Republic Acts 7660 and 7661 will facilitate our entry into that exclusive club of newly industrializing countries of Asia by providing us the additional funds that we need for our developmental efforts.

We appreciate the legislative’s recognition of the difficulties that we had to undergo in implementing our privatization program through the extension of the Asset Privatization trust’s (APT) life. The extension of the Asset Privatization Trust up to June 30, 1995, as provided for in RA 7661, is our main vehicle for the expeditious disposition of certain government corporations or components thereof in line with our policy to pursue a truly free market economy and enable the private sector to play its role as the primary engine of our economic growth.

Through this new law, we improve our investment climate and develop the capital formation environment so as to convince the private sector of this administration’s determination to interfere less and less in what should rightly be the private sector’s concern.

Also of great significance in this law is the legislature’s support for our agrarian reform program by generating more funds for CARP. For 1994 alone, this law could generate gross proceeds of some p13 billion, of which p8 billion will be remitted to the national treasury.

We are committed to a balanced combination of modernized agriculture and industrialization leading to an export-led economy. This necessitates the strengthening of our agricultural sector as a primary source of raw materials for export products, thus enabling us to fully implement strategies for our export industries. We must vigorously pursue agrarian reform to ensure that our agricultural workers are provided as much opportunity to join the mainstream of development we envision for our countrymen. Through this law, our cash-strapped land reform program is boosted towards our goal to join the Asian NICs by the end of the century.

On the other hand, RA 7660 which increases the tax on documentary stamps should raise incremental revenues estimated at p6.0 billion. We are most appreciative of our legislators’ creative efforts to improve the structure and administration of taxes without regressively burdening our countrymen. It enhances the equity and administration of the documentary stamp tax, which as we all know, is an excise tax levied, collected and paid on the privilege to enter into certain transactions for the acceptance, assignment and transfer of obligations, rights or property. Our collections from this tax had been unreasonably low compared to the volume of transactions because the rates of the tax on documentary stamps were last amended nine years ago.
The added importance we attach to RA 7660 is the estimated p1.5 billion it can raise to augment government’s Mass Socialized Housing Program. This amount, which comprises 25% of the expected documentary stamp tax collections for 1994, will provide decent affordable homes to more than 60,000 of the almost 2 million squatter families in Metro Manila under our Unified Home Lending Program. It will also enable non-members of the Social Security System, the Government Service Insurance System and the PAG-IBIG Fund to avail of government’s shelter program.
Republic Acts 7660 and 7661 go beyond merely increasing our revenues. They are basic tools to empower some of the neediest sectors of our society — our farmers and other agricultural workers and the urban poor.

These two new laws are part of the reform package that congress and the executive branch hammered out during the People’s Economic Summit in September 1993 to speed up the attainment of our twin goals of people empowerment and economic growth. If you recall, I had previously certified these bills as urgent administration measures. I am, therefore, most thankful for Congress’ speedy action.

As much as we are grateful, however, we still earnestly hope that the incremental revenues from future revenue measures will freely accrue to the general fund to support programmed activities. Earmarking renders the measures less capable of addressing our deficit problem. Also, there are inefficiencies and dysfunctions created when funds are immediately tied up to certain activities and programs independently of the comprehensive expenditure programming process.

I am, however, optimistic that we — Congress and the executive branch — can work things out together to achieve our common goals. There are several more proposed resource mobilization measures still to be enacted. I appeal to Congress to give these highest priority in 1994.

With these new laws, many more of our countrymen can look forward to a happier Christmas and a new year full of hope and prosperous years beyond.

My congratulations to the principal authors, the sponsors and all those involved in the speedy passage of these laws for recognizing the clamor of our people for more reforms.

In keeping with the Christmas season, I wish all the members of Congress the joy that emanates from knowing that we have all given our best for our country and countrymen.

Maraming salamat sa inyong lahat.