Despite Washington’s huge fiscal deficit, US aid to RP remains steady

WASHINGTON – The US government proposes to keep military and economic assistance to the Philippines in 2007 at virtually the same level as this year despite a burgeoning budget deficit.

Funds earmarked for the Philippines in the US federal budget for fiscal year 2007 which begins Oct. 1, 2006 and ends Sept. 30, 2007 include $17.6 million in Foreign Military Financing (FMF) and $20 million in Economic Support Funds (ESF).

About $12 million of the ESF for 2007 will support programs in Mindanao aimed at consolidating peace and isolating terrorist groups, according to preliminary budget figures released in Washington.

In addition, part of $135.6 million set aside for Anti-Terrorism Assistance (ATA) will support "new in-country programs in Iraq and the Philippines, participating countries critical to the US counter terrorism effort," the budget report said.

No specific amount was cited for the Philippines.

The Bush administration’s $2.77 trillion budget plan for 2007 forecasts a record deficit of $423 billion despite deep cuts in spending in many government departments.

In 2006, US President George W. Bush asked for $20 million in FMF and another $20 million in ESF for the Philippines.

However, the US Congress under intense lobbying by Filipino diplomats and community leaders increased the awards to $30 million in FMF and $25 million in ESF.

A State Department summary of the 2007 budget lists the FMF request for East Asia and the Pacific at $31.9 million –$17.6 million of it reserved for the Philippines to continue modernizing and reforming its Armed Forces and to reinforce counter-terrorism training.

In addition, $2 million has been set aside for regional maritime security focused on Indonesia, Malaysia, the Philippines and Thailand.

Philippine embassy and Filipino community officials said although US aid for 2007 was at a virtual standstill it was still a victory of sorts for the Philippines in the face of America’s huge fiscal deficits, the increasing costs of maintaining troops in Afghanistan and Iraq and the reconstruction of Louisiana battered by Hurricane Katrina.

They said they would lobby Congress intensely to boost the final aid figures.

Meanwhile, the Office of Management and Budget, in a separate report on State Department appropriations to enhance security in Asia under the 2007 budget, said the proposed FMF for the Philippines was $30 million out of a total of $39,250,000.

Other recipients of FMF in the region included Mongolia ($3 million), Thailand ($1.5 million) and $1 million each for Indonesia, Cambodia, Bangladesh and Sri Lanka.

There was no explanation for the discrepancy, but the administration’s budget proposal provides a starting point for negotiations with Congress, which has a final say over government expenditures.

The OMB’s budget version said in addition to the $30 million in FMF, an additional $10,000,000 would be made available to assist the Philippines in addressing critical deficiencies identified in the Joint Defense Assessment of 2003.

The JDA details execution plans and schedules over a seven-year period to address operational deficiencies in the Armed Forces of the Philippines, the weakest military force in Southeast Asia.

The budget makes clear that none of the funds appropriated for any country will be made available if its duly elected head of government is deposed by military coup or decree.

It reserves $7 million to help improve the record of the Philippines and others mired in a "watch list" category of countries that show no evidence of efforts to combat trafficking in persons, a modern form of slavery.

It also sets aside $7.4 million for international military education and training to strengthen alliances in the Philippines, Thailand and Indonesia in the fight against terrorism.