President Arroyo has already approved the proposed 2008 General Appropriations Act, amounting to P1.227 trillion, P91 billion higher than this year’s appropriation. The allocations for nfrastructure, education, health, science and technology as well as housing and salary hikes were increased. This was revealed by Budget Secretary Rolando Andaya Jr. after the National Economic and Development Authority (NEDA)-Cabinet meeting at the Palace yesterday.

Andaya said that the proposed General Appropriations bill is scheduled to be submitted to the House of Representatives on Aug. 22. The Priority Development Assistance Fund or "pork barrel" allocation of lawmakers remains unchanged at P4 billion while the Internal Revenue Allotment (IRA) of local governments was increased by 14 percent from 2007’s P183.9 million to P210.3 million.

In terms of percentage increases in allocations, the National Housing Authority (NHA) posted the biggest gain of 1,847 percent or from P257 million this year to P5 billion in 2008. NHA is followed by the Department of Science and Technology with a 51 percent increase, from P3.646 billion to P5.522 billion or a growth of P1.876 billion. The Department of Health came in third with a 22 percent increase to P15.667 billion from P12.292 billion this year, including P1 billion allocation for the upgrading of government hospitals.

Among the assumptions for the 2008 proposed budget is a gross domestic product of 6.1 percent to 6.8 percent; inflation of three to four percent; foreign exchange rate of P47 to P49 to a dollar; export growth of 11 percent as well as import increase of 11 percent; and Dubai oil price of $62 to $70 per barrel.