MANILA, Philippines (3rd UPDATE) - President Benigno "Noynoy" Aquino III on Monday said the entire country must undergo a period of sacrifice to stamp out corruption and jumpstart new government programs to reduce poverty and want in the countryside.

Buoyed by record high trust ratings at the start of his term, Aquino pushed for belt-tightening measures after being left with a government hobbled by a yawning budget deficit and nearly emptied state coffers. 

"We must understand that now is a time for sacrifice. It is this sacrifice that will pave the way for a better future. With our freedom comes our responsibility to do good unto our fellows and to our country," he said in his first State of the Nation Address.

Aquino started his SONA on a familiar theme: uncovering at least 5 corruption scandals and bad management decisions committed by his predecessor, former President Gloria Macapagal Arroyo.

First on his list was how the Arroyo government had allegedly depleted the 2010 national budget, leaving him with little room to address the nation's problems.

"Sa unang anim na buwan ng taon, mas malaki ang ginastos ng gobyerno kaysa sa pumasok na kita. Lalong lumaki ang deficit natin, na umakyat na sa 196.7 billion pesos. Sa target na kuleksyon, kinapos tayo ng 23.8 billion pesos; ang tinataya namang gastos, nalagpasan natin ng 45.1 billion pesos," he said. "Ang budget po sa 2010 ay 1.54 trillion pesos."

Aquino said his new administration was left with P100 billion left to use in the remaining 6 months of the year.

"Nasa isandaang bilyong piso o anim at kalahating porsyento na lang ng kabuuan ang malaya nating magagamit para sa nalalabing anim na buwan ng taong ito. Halos isang porsyento na lang po ng kabuuang budget ang natitira para sa bawat buwan. Saan naman po dinala ang pera?"

Pampanga prioritized in calamity fund

Aquino also disclosed that the previous administration  had used up P1.4 billion or 70% of the calamity fund by the time it finished its term on June 30.

Of the amount released from the calamity fund, P108 million went to Arroyo's home province of Pampanga.

The northern Luzon province of Pangasinan, on the other hand, which was badly hit by tropical storm Pepeng, got a measly P5 million for the damages wrought by tropical storm Cosme in 2008.

"Naglaan ng dalawang bilyong piso na Calamity Fund bilang paghahanda para sa mga kalamidad na hindi pa nangyayari. Napakaliit na nga po ng pondong ito, ngunit kapapasok pa lang natin sa panahon ng baha at bagyo, 1.4 billion pesos o sitenta porsyento na ang nagastos. Sa kabuuan ng 108 million pesos para sa lalawigan ng Pampanga, 105 million pesos nito ay napunta sa iisang distrito lamang," he said.

"Samantala, ang lalawigan ng Pangasinan na sinalanta ng Pepeng ay nakatanggap ng limang milyong piso lamang para sa pinsalang idinulot ng bagyong Cosme, na nangyari noong 2008 pa," Aquino added.

He also disclosed that the funds that went to Pampanga were released during the election campaign or 7 months after Ondoy and Pepeng struck the Philippines.

As a result, Aquino said he would have difficulty addressing calamities that will hit the country the rest of the year.

"Ibinigay po ang pondo ng Pampanga sa buwan ng eleksyon, pitong buwan pagkatapos ng Ondoy at Pepeng. Paano kung bumagyo bukas? Inubos na ang pondo nito para sa bagyong nangyari noong isang taon pa. Pagbabayaran ng kinabukasan ang kasakiman ng nakaraan," he said.

Questionable storm rehab projects

Aquino also revealed that the Arroyo administration ordered the release of P3.5 billion for the rehabilitation of areas destroyed by Ondoy and Pepeng 5 days before the end of its term.

"Meron pa po tayong natuklasan. Limang araw bago matapos ang termino ng nakaraang administrasyon, nagpautos silang maglabas ng 3.5 billion pesos para sa rehabilitasyon ng mga nasalanta nina Ondoy at Pepeng," he said.

He said the funds were going to be used for 86 projects that would not go through public bidding. Funds for 19 projects worth P981 million or nearly P1 billion were nearly released even if the contracts had yet to be approved.

"Walumpu't anim na proyekto ang paglalaanan dapat nito na hindi na sana idadaan sa public bidding. Labingsiyam sa mga ito na nagkakahalaga ng 981 million pesos ang muntik nang makalusot. Hindi pa nailalabas ang Special Allotment Release Order ay pirmado na ang mga kontrata," Aquino said.

He said the questionable release of the funds was stopped after it was discovered by Public Works and Highways Secretary Rogelio Singson.
 
"Buti na lang po ay natuklasan at pinigilan ito ni Secretary Rogelio Singson ng DPWH. Ngayon po ay dadaan na ang kabuuan ng 3.5 billion pesos sa tapat na bidding, at magagamit na ang pondo na ito sa pagbibigay ng lingap sa mga nawalan ng tahanan dahil kina Ondoy at Pepeng," Aquino said.

He also mentioned in his SONA the generous cash bonuses to trustees of the Metropolitan Waterworks and Sewerage System (MWSS); misappropriation of funds for public works projects and typhoon reconstruction programs; and state subsidies for the government rice procurement projects and the Metro Rail Transit.

Early accomplishments

Aquino also listed several accomplishments of his 1-month administration including the formation of a Truth Commission that will investigate corruption scandals of the previous administration; filing of charges against big-time tax evaders; and, the resolution of half of extra-judicial killings that occurred since the start of the month.

Aquino said he will immediately convene the Legislative Executive Development Advisory Council (LEDAC) to discuss several priority measures on anti-trust, procurement, fiscal responsibility and national land use.

He said his government will also push for greater protection for whistleblowers anchored on a stronger government witness protection program.

The new president touched frequently on the need to fight corruption by reminding the public that it is also their responsibility to uplift their fellow countrymen.

He said that for too long, many people believe that they will only prosper if they think of themselves first before others. "But if we start thinking, 'I want to build up the capability of my fellow man', this will bear fruit and everyone will be given a chance," he said.