By Mar-Vic Cagurangan
Variety News Staff

VICE Speaker Eddie Calvo, R-Maite, said yesterday the Legislature will focus on budget cuts to meet its goal of pegging the revised 2007 budget at $451 million.
“The governor’s proposed budget is $477 million, but we’re trying to be conservative. There will be no more restoration of original appropriations for agencies,” said Calvo, chairman of the finance, taxation and commerce committee.
“From now on, we will move forward with budget cuts as proposed in the administration’s revised budget submission,” he added.
Calvo was disappointed by his colleagues’ decision Saturday to reinstate the $20 million appropriation for the judiciary, which Gov. Felix P. Camacho proposed to cut down to $19.6 million.
Calvo voted against the motion to delete the funding cut provision for the judiciary. The amendment passed by an 8-6 vote.
Bill 74, the revised budget measure proposed by the administration, provides for a 2.5 percent funding cut for each department and agency.
“We can’t do any more restoration. We need to implement further spending cuts. We will invite agencies to determine the impact of the cuts proposed by the administration and to see if we need to make cuts in other areas as well,” Calvo told Variety.
One of the salient provisions of the governor’s revised budget plan is the proposal to raise the gross receipt tax from 4 percent to 5 percent, which Calvo said is out of the question.
“There’s no support for a GRT increase. We don’t need to raise taxes; we just need less appropriations,” he said.
As for the governor’s threat to implement retrenchment if the revised budget was not approved by April 1, Calvo said, “He is the governor and he has the authority to do whatever he wants to do to ensure the financial stability of the government.”
“I respect his power and authority. We received the budget last week and we will move ahead with deliberate action. But we don’t want to make any mistakes,” Calvo said.
Camacho, meanwhile, expressed confidence that the budget talks would be concluded soon despite disagreements between the Legislature and the administration on revenue projections and other issues.