Malacanang today hailed the positive response by virtually all sectors of society to President Gloria Macapagal-Arroyo’s call for strict implementation of austerity measures to address the prevailing economic crisis and trim down the budget deficit.

Press Secretary and concurrent Presidential Spokesman Ignacio Bunye, in a radio interview, said the government eyes P20 billion in savings through cost-cutting schemes and P80 billion in revenue collections from new taxes.

To cushion the impact of these twin measures on the marginalized sectors of society, Bunye said safety nets are now being readied by the government.

In a separate radio interview, Deputy Presidential Spokesman Ricardo Saludo said the people have accepted the fact that the country is going through a financial crunch and have offered to help in any way they can.

Speaker Jose de Venecia Jr. set the tone for voluntary contributions to the government coffers by donating P1 million out of his own pocket. Other legislators in both chambers of Congress followed suit either by foregoing their pork barrels or part of it.

Certain business leaders, mostly Filipino-Chinese taipans, also chipped in large amounts, while religious leaders pledged to shell out their allowances.

Saludo noted that the unfolding events were reminiscent of the Korean and Thai experience during the height of the Asian financial crisis when wealthy Koreans and Thais donated even their precious jewelry to the government, thereby preventing a total collapse of their economy.

"Hopefully, our struggle and sacrifices to help the government, including paying the correct taxes, would spare us from the crisis encountered by those countries," Saludo added.

Quoting Congressman Joey Salceda, Saludo said the burgeoning consolidated public sector deficit was largely due to huge losses suffered by government-owned or controlled corporations, not because of a spendthrift national government.

He recalled that during a workshop at the Palace on Tuesday, President Macapagal-Arroyo impressed upon members of her Cabinet, as well as the undersecretaries, assistant secretaries, bureau directors and department heads, that their sworn duty is to serve the public, not enrich themselves in office.

"That is why our state workers are enjoined to strictly observe austerity and thriftiness," Saludo stressed.

To boost her austerity program, the President issued Administrative Order (AO) No. 103 mandating government officials to shun profligacy under pain of dismissal from the service and possible prosecution for criminal offenses.

AO 103 is in addition to the ongoing lifestyle check on government officials and employees believed to be living beyond their means.

The order bans the holding of extraneous sports festivals, and unnecessary local and foreign travels among government officials and employees.