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April 7, 2008 Alternative Budget Initiative condemns veto on cut for anomalous incinerator project loan Social Watch Philippines supported the call of nongovernment organizations led by Freedom from Debt Coalition in condemning President Gloria Macapagal Arroyo's veto of the provision in the General Appropriations Act for 2008 which holds payment of interest for questionable loans, including the P503.65 million Austrian Medical Waste Project which involved the purchase of substandard medical waste incinerators for 26 government hospitals. SWP, through its Alternative Budget Initiative (ABI) campaign, lead 48 nongovernment organizations in urging Congress to strike out some P1.3 billion earmarked for anomalous projects from the proposed 2008 budget. This includes the controversial medical waste incinerators loan package which resulted, not only in a US$2 million per year debt burden, but also endangered the health of Filipinos. The waste incinerators emitted toxic dioxin which was 870 times the limit set by the Clean Air Act. This loan was incurred in 1997 when the Philippine and Austrian government signed a P503.65 million loan for the purchase of Austrian medical waste incinerators for 26 hospitals under the Department of Health. In 2003, there was an order to stop using the incinerators to comply with the Philippine Clean Air Act of 1999. Yet, the Philippines continue to pay US$2 million or P100 million a year to the Austrian government for the medical waste project and will continue to do so until 2014. For 2008, the government will pay P17.7 million for interest payment and P79.33 million for principal amortization of the Austrian incinerators. In a forum held at the Philippine Heart Center Today, Health Care Without Harm, Social Watch Philippines joined Freedom from Debt Coalition and the Eco Waste Coalition as they pointed out that the national budget passed by Congress reflected the proposals by the Alternative Budget Initiative, including the realignment of illegitimate debts to finance social services, thereby augmenting the budget of the DOH by P6.812 billion for a total of P19.8 billion. According to Professor Leonor Briones, SWP lead convenor, Social Watch Philippines has been very active in the campaign to end payments on questionable loans and channel more funds for health. It has worked closely with other organizations such as the Institute for Public Health Management in formulating alternative budget proposals for the 2008 national budget. The increases in the 2008 budget for the health care sector is one of the modest gains of the Alternative Budget Initiatives (ABI) including P120,132,000 for Epidemiology and Disease Surveillance, P80 million for Rabies Control Program, P680 billion for Tuberculosis Control Program, P3,019,111,000 for Family Health, P100 billion for Purchase of Autoclave, and P4.5 billion for Premium Subsidy for Indigents under the National Health Insurance Programs. The ABI campaign is a historic first in the Philippine national budget system as it is highly characterized by partnerships among legislators and civil society groups. "We recognize the support and cooperation of minority legislators from both Houses of Congress and progressive lawmakers from the administration led by Appropriations Committee Chair Edcel Lagman. Their willingness to work with civil society is a major step in the long journey towards a responsive and people-oriented legislature. The challenge now is for the President to swiftly approve the budget proposal for the realization of these gains," said Professor Briones, ## |