Finding the truth behind alleged irregularities in the Arroyo government, preparations for the State of the Nation Address, and status of government contractual employees dominated Wednesday discussions in the first cabinet meeting held by President Aquino in Malacanang.

Presidential Spokesman Edwin Lacierda said a memorandum order creating the truth commission would be issued so it could start its daunting task soon.

Cabinet officials were given two weeks to submit a status report on their departments in preparation for the first SONA of President Aquino, according to Lacierda.

Aquino, who took his oath as the country's 15th President, has convened his cabinet for the first time in the Palace and plans to meet them in clusters apparently every week. The entire cabinet, on the other hand, will meet once a month.

Lacierda, speaking to reporters after the cabinet assembly, said the commission headed by former Chief Justice Hilario Davide will be assisted by Justice Secretary Leila de Lima in fulfilling its mandate, including preparing a list of alleged anomalies during the Arroyo government.

"The form of the truth commission is not yet final. It will be up to Chief Justice Davide and the operational arms of the government, for instance,  DOJ and NBI as well as other prosecutorial agencies will be provided to Chief Justice Davide and the truth commission," he said.

"We will be creating a memorandum order for the creation of the truth commission," he added.

If former President Arroyo is implicated in any charges, De Lima said she has to answer those charges, adding she no longer enjoys any immunity from lawsuits. The justice chief however assured that the former leader will given due process in case of prosecution.

In the same cabinet meeting, President Aquino also started to prepare for his SONA next month by seeking reports from all cabinet secretaries, according to Lacierda.

Finance Secretary Cesar Purisima said the departments were asked to determine the existing budget, programs, and assets to help the government fulfill the social programs of Aquino.

Purisima said the cabinet also discussed its resolve to improve tax administration and plug leaks in revenue generation, rather than propose new tax measures.

With the help of the justice department, he said they also intend to run after tax evaders and smugglers who rob the government of much needed resources.

He likewise appealed to the public including business to comply with their tax obligations to avoid trouble from the government.

"This administration means businees in improving tax efficiency," he said, adding a successful campaign in tax administration and collection may even lead to eventual reduction of taxes in five to six years.

He said President Aquino also ordered the Department of Budget and Management to focus on "zero-waste budgeting" for 2011. Purisima said they will not simply increase the existing budget, adding they would review all individual programs and "watch out for leakages."

"I'd like to appeal to fellow citizens, businessmen if we want aquino to succeed, if we want to have a better country, pay what is due government," Purisima said.

"You have the assurance of administration, quality of governance will be much better than in past. The money of public is spent wisely," he added.

Another directive of Aquino was for the Department of Finance and Department of Education to resolve the backlog on construction of classroooms across the country.

With Aquino's presidential campaign driven by volunteers, Presidential adviser on the peace process Teresita Deles was also assigned to work on how to institutionalize volunteerism in government.