vI would like to acknowledge the people present here in this podium.

The members

of the Executives, Board of Directors and those who have the heart to step in this four-corner

Malacañang palace to hear my State of the Nation Address.

To start with, I would want to extend my hand in appreciation to everyone who has

maintained their trust in me even during our worst moments. They say that a number is worth a

thousand words and a hundred stories. My disapproval rating, however, is just three percent,

according to the most recent poll data and the landslide win that the candidates for the

Administration won. I have high hopes that the members of Congress will infuse me with the

will to continue with unrelenting zeal what we have begun at the beginning of my administration.

Salamat sa tiwala, at sa makatuwid ako’y ganap na nagagalak sap ag-upo bilang inyong

Presidente. Di ko maisip na ako’y pipiliin ng Sambayanang Pilipino para maging pinuno sa

lahat ng antas ng systema.

As a participant in something very historic, I'm honored to be here before Congress

today. Congress, on the other hand, has been referred to as the "seat of reason." Without each

other, we would be unable to carry out our duties. When a person's will is unsupported by

reason, reason loses its effectiveness, and will becomes nothing more than brute force.

Consequently, we are reliant on one other, and our dependence becomes stronger in times of

struggle. And we're in the midst of a crisis. It is my honest intention that I will always represent

myself as President of the United States of America, and I do not come to you in that role. Net

borrowings totaled P200 million in the preceding six months, from July to December 1965. This

was utilized to pay for the extra expenditure that was taking place because of a lack of earnings.

The total amount of budgetary loans taken out by the government on December 31st, 1965, was

1,018.1 million pesos. When I said during my inaugural address on December 30th of last year
that we are in a crisis, I was met with a great deal of skepticism. For the rest of the day, I'll be

describing the harrowing details of an emergency scenario. Historically, the federal government's

budget has been out of balance. P6 million is the government's daily expenditures, while P8

million is the government's daily earnings. A daily shortage of two million pesos is the result of

this. At the end of December of 1965, the government had a deficit of P231 million. If we're

going to get out of debt, we need to do something about it since we're now in debt of 23%. Rice

and corn loans held by the Philippine National Bank, national railway loans held by

NAMARCO, national development bank loans held by Agricultural Credit Administration loans

total P408 million. It's possible that the Philippine National Bank will be forced to pay back

these loans if it doesn't do so to our government's benefit first. The second and most probable

scenario is that the cost will be borne by our government. A consequence of these events, the

Philippine National Bank is currently seeking financing from other sources. The Philippine

National Bank (PNB) has piled up a P35 million deficit in the GSIS's account. Development

Bank of the Philippines, which has a one-billion-peso-capitalization (P), had its first loss since it

was created, losing more than five million pesos. The Social Security System has a substantial

debt load. The following picture paints a clear picture of where we are financially. Even if our

recent election campaign almost bankrupted the nation's finances if nothing was done, let us not

forget that. After considering all of these factors, I have come up with a proposal to ban all forms

of campaign activity before the time period set by law has expired; I believe that the Commission

on Elections should be given more investigative and regulatory powers as part of election

reforms. Our Supreme Court, the last arbiter of the law, has given jurisdiction to cancel votes

that appear in election results that are manifestly fraudulent. With this in mind, I'd like to

propose a new law that would allow the Commission on Elections to apply injunctions against
any candidate who breaches spending or campaign time limitations and threatens to take their

name from the ballots.

The execution of the new registration law must continue since flying voters and other

malpractices mess with the popular will. To that end, I ask Congress to reinstate the death

penalty for individuals convicted of narcotics smuggling and plunder offenses. That we are

unable to distinguish between our necessities and our desires, as well as between our principles

and our prejudices, is a sad judgment on our society as a whole. Due to the fact that the majority

of us place a high value on our own self-worth, this is why. It exemplifies selfishness at its worst,

with little regard for anybody save one's own self-interest. Rather, we've stayed inside the

confines of regional concerns. Irreconcilable loyalty to our family, friends and tribal kin

continues to undermine our efforts to alleviate poverty, reassure both local and foreign investors,

and to support the business sector in our country.

According to the Bureau of Customs two weeks ago, 63 people were facing criminal

charges, and another 61 were under investigation. If we can't get rid of their status, I'm hoping

for Congress' help. And if I can't get rid of them because of their tenure, I'll just let them

maintain their existing jobs, but they'll have to come to Congress every day to help me with the

paperwork that we have to do every day.

They'll all be on their way out of Customs. This time, though, I do not want them to come

back. A few times throughout the congressional hearing, I made this point. To show how little

has changed, I repeat this. There's a lot of talk, but not much action. Congress or the Executive

branch may or may not be involved. As a result, I'm here to make amends for my own

transgression. The agricultural productivity of our lands has hardly climbed beyond ordinary

levels in recent years. It's going to be challenging to get our industry back on track. As a result,
they haven't grown as much as they might have. We've lost hundreds of jobs and tens of

thousands of dollars in potential income as a consequence of the closing of our operations. Most

of the growth in our economy has come from industry. Too much debt, too many accounts

receivables and not enough credit, and a reduced earnings base make it impossible for them to

grow. Until the end of 1965, the country was limited by a lack of port facilities and prohibitively

expensive port fees. Water supply facilities are only available to a fraction of the population.

There are few places in the country that have dependable electricity.

Only 7 percent of rice crops in our nation are irrigated. It is difficult to meet our needs for

public works since our demand for public services and physical infrastructure is enormous. As

our school population grows, the quality of instruction at all levels, and the appropriate

utilization of college and university output continue to be major problems for our educational

system. " To spend so much of our limited resources on education while witnessing such high

dropout and unemployed rates among recent college graduates is an irony that is difficult to

ignore. Despite recent advances in public health, TB, intestinal and communicable diseases

continue to wreak havoc on the lives of our inhabitants. I'd also want the Congress to pay

attention to what I have to say. It's time to take an honest look in the mirror. Taking your time is

essential here. Their projects and efforts may be completed more quickly because of the shorter

term of sitting barangays. Congress should, in my view, also enact the Magna Carta for

Barangays. Depending on how often they occur, certain crimes have a greater influence on the

community, while others have a greater impact on the country's economic health. I'm referring to

smuggling as the cancerous tumor that has wreaked havoc on our economy and destroyed the

moral fiber of our people. Our military and law enforcement organizations are severely

underprepared to cope with these threats. An all-encompassing threat comes from a militarily
ambitious power that has never considered the devastation that a global conflict might cause.

Near our borders, a small but protracted conflict is raging. Concerns about safety and security

have been raised in Malaysia and South Vietnam. There are a variety of problems and realities

that we must deal with in the United States. In light of the severity of the situation, we must face

these challenges head-on. In order to achieve these objectives, I must first get Congress's full

cooperation. I officially seek their assistance in that regard. Change the government's purchase

price floor for rice and maize to more realistic and rewarding levels through passing legislation;

Make it legal to borrow money from abroad to fund irrigation projects; By reorganizing

agricultural agencies to lower operational costs, government planning and implementation may

be improved at all levels. Entrepreneurs should take note: we must embrace the consequences of

this hazardous investment if we really believe in free capitalism. However, the government

would not shy away from acting to help faltering industries if doing so does not contradict with

the public interest. On the other hand, we expect to witness the emergence of new industries and

the restoration of previously ailing ones. We believe in short-term aid, rather than long-term

subsidies.

When it comes to business or any other venture, we think only those who know how to

put their freedom to use deserve to be free. Until we improve our tax collection system, we

cannot claim any grandeur or nobility. A public reluctance to pay taxes based on claims that the

money is being squandered must be dispelled by showing that the money is being used wisely

and effectively. We support lifting the debt limitations for domestic borrowing set forth in R.A.

No. 1000 and international borrowing set out in R.A. No. 16 to higher levels in order to give

policy flexibility in times of financial distress. For current expenditures, we must maintain a

balanced budget, but if possible we should generate a surplus that may be utilized to support
economic growth capital expenditures. Even if we can't generate a surplus big enough to meet

our demands, we won't be restricted by its mere size. Due to our responsibilities as a country, we

must make sure that our citizens have access to adequate economic growth and employment

possibilities to suit their demands. Anxiety arises from the presence of institutionalized

corruption. Frustrating. Even though it's annoying, I wonder whether blood may be used to

remove the dirt and sludge that cling to the skin like leeches.

A notion at that moment in time. To be clear, I'm only sharing my own opinions. To

avoid any misconceptions, I'd want to clarify a few points I made in a previous post.

Traditionally, government programs requiring novel techniques have been entrusted to a new

agency that is as new to the public service as the program itself. Bring in new blood is more than

a political strategy; it's desired and vital, as we must accept. In order for the civil service system

to flourish, it is necessary for me to make it obvious how much I regard it. To hide inefficiency

and mediocrity, the "closed" nature of the public service should not be employed.

Achieving our aspirational ambitions in the twenty-first century will need a national

effort that draws on the best resources from both the private and public sectors. In order for our

public service to meet the difficulties we confront, we need more "fresh blood" to join our ranks

at all levels of national government. The public and private sectors, as well as government

agencies themselves, may benefit from supporting talent exchange. A increasing population

necessitates modernizing our administrative systems. Our government's corruption must be

uncovered and eliminated. A delicate balance must be struck in the West Philippine Sea

(Philippines) issue to avoid armed conflict and protect our nation's territorial waters and

resources. The misery and loss are multiplied tenfold in a gun battle. Widows and orphans are

among the many casualties of war. At the first sign of violence, I will not be prepared or glad to
bear more devastation, other widows and children. Working things out in private is preferable

than publicly disputing over them. Because our national pride and territorial integrity are at

stake, I shall proceed in a non-violent manner.

Foreign policy in the future will be guided by our national interests and those of other

countries with comparable aspirations. The United States' long-term interests must be served by

strengthening the country's economic well-being, national security, and individual freedoms. We

must work hard and cooperate with other nations in order to secure our country from invasion

and subversion, as well as to expand our economy. We shall be friends with any country that

either shares our beliefs or wishes us no harm. For as long as there is mutual respect, equality of

dignity, and a common purpose, we shall be committed to our allies' cause.

In this region, the communist menace is ever-present. As long as this danger exists, we

will do all in our power to stop it from spreading. We will continue to aid the United Nations in

every manner we can. It was only with our help that ASEAN, MAPHILINDO, and the Southeast

Asian Treaty Organization were founded. In the future, we believe that these organisations will

be able to assist us defend ourselves against foreign invasion and subversion as our economy and

culture flourish. If you'd want to talk about how these groups can better serve the community,

please feel free to do so. We intend to begin the process of mending our relations with Malaysia

without risking our claim to North Borneo or jeopardizing the friendships of other states. We

extend our hand of friendship and goodwill to the Indonesian people. That they will emerge from

their present difficulties with a bigger capability for international involvement and domination

than they now have is something we hope and pray for. The United States and the Republic of

China have a long-standing friendship, and we wish to maintain it. The long-standing problem of

Chinese overstayers calls for a re-examination of the entry procedures for persons of Chinese
descent. Because we value our ties to Japan, we'll seek to enhance the country's political and

economic climate. Keeping the Republic of Vietnam afloat depends on the Philippines. We shall

continue to help this nation to the best of our ability. Our support for a peaceful resolution in

Vietnam, however, will not waver. An investigation team will go to South Vietnam to gather

information for the Security Council and our own leadership. The mutual respect,

thoughtfulness, and shared goals and interests that underpin our partnership with the United

States will remain a cornerstone of that relationship. They would want nothing more than to see

our country develop in dignity and freedom, we are assured of our great nation

As long as our commerce with the United States is fair and advantageous to both

countries, we will continue it. We want to expand our trade with other countries while

simultaneously safeguarding our fundamental interests. As a country, we need to quit putting

things off and remember Rizal's saying, "a humble present for a splendid future." There is no

tolerance for petty conduct in our workplace even if we are known for our impatience. There is

no room for partisan rivalry in our government. Our people look to Congress and the Executive

for effective and decisive leadership in order to achieve greater liberty for everyone. Since we

can't do it alone, I'm asking you and the rest of the country for your help in a coordinated effort.

The key to our continued progress and, finally, our survival is in our hands. Our options are

limited to one person: none other than you. It's not like we're relying on anybody else for help.

We need to examine ourselves. The grandeur of our country can only be gauged by the amount

to which we, as individuals, are willing to sacrifice. Consequently, I beg you to search inside

yourselves, and I pray that God will help us all in this essential endeavor.