Oct. 13--He said that the economic assumptions in the 2009 General Appropriations Act approved by the House at 3:34 a.m. Saturday were based on global conditions before the financial crisis hit the United States and other Western markets.

The 2009 budget assumes a growth rate of 6.9 percent to 7.8 percent in the gross national product or GNP, an inflation rate of 6.1 to 7.1 percent, foreign exchange rate of P42 to P45 to a dollar and Dubai crude at $115 to $125 a barrel. It predicts a budget deficit of P40 billion or just one-half of 1 percent of the gross domestic product or GDP.

The economic growth rate is expected to be lower and the inflation rate, higher because of the global financial crisis. A dollar is now worth more than P47, while Dubai crude is below $80 a barrel.

"It's very clear that we are now facing [a] very different situation. Since the House has already approved the budget, it's up to the Senate to do the changes," he said.

He said he would convey to his colleagues the importance of shifting the budget priorities.

"We can't accept the inadequate funds for agriculture, education and other programs," he stressed.

Roxas earlier urged President Gloria Arroyo to call a multi-party summit, so that leaders of administration and opposition parties could sit down and agree to a recasting of the proposed 2009 national budget so that funds can be reallocated to programs that will soften the impact of the global financial crisis.

The House, however, is convinced that the approved budget would soften the impact of the glaobal crisis on the Philippine economy. Speaker Prospero Nograles had described the 2009 budget as an "antidote to economic stagnation."

Nograles said the proposed outlay supports the government's priority programs and projects for the year 2009, and designed to meet any and all contingencies that may arise as a result of the current global economic slowdown spawned by the U.S. financial crisis.

"Despite the U.S. government's $700-billion bailout package, we cannot be complacent but should anticipate any possible ill-effects the crisis may have on the Philippine economy," Nograles said.

Budget support for migrant workers

A significant budget increase for the Foreign Affairs and Labor and Employment department, two government agencies heavily involved in assisting overseas Filipino workers, has been sought by the Blas Ople center on Sunday.