President Gloria Macapagal-Arroyo today served notice that the government’s campaign to cut expenses and raise revenues to bring down the budget deficit will spare no one.

"Our cost-cutting and austerity measures have already started and there will be no sacred cows," the President said in a statement from Beijing on the second day of her state visit to China.

On the eve of her departure for China Tuesday, the President warned government officials to live within their means and forego lavish lifestyles in the midst of the country’s economic crunch or face possible dismissal and prosecution.

She enjoined the new members of the Cabinet and other presidential appointees, as well as the heads of government-owned or controlled corporations, to take the lead in cutting cost and to live simply.

At the same time, the President enjoined all government officials and employees to adopt austerity measures and step up revenue collections as part of overall efforts to reduce the budget deficit.

The President pointed out that her administration’s "tax reform measures are on deck in Congress and a new drive against graft and corruption and tax evaders has rolled out."

The Chief Executive also lauded exemplary gesture of members of Congress as well as private individuals in offering to "chip in from their own pockets to meet the crisis."

"This reflects the right spirit and attitude that will pull us through the steep challenges we face, even as we work on the detailed and concrete action plans to steer the economy away from the critical point on the road ahead," she said.

Speaker Jose de Venecia, Jr. has offered to donate P1 million out of his own pocket to the government’s efforts to reduce the budget deficit.

"I am grateful for every deed and gesture from our lawmakers, from the business community or from the ordinary people, to sacrifice and chip in from their own pockets to meet the crisis," she said.

The President pointed out that the country would gain international confidence "as we put our house in order, gaining credibility and support through our collective spirit of discipline and enterprise.

"This reflects the right spirit and attitude that will pull us through the steep challenges we face, even as we work on detailed and concrete action plans to steer the economy away from the critical point on the road ahead," the President said.

"We will drive international confidence as we put our house in order, gaining credibility and support through our collective spirit of discipline and enterprise," she added.