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Requiem for Congress’ lost “Power of the Purse”

Social Watch Philippines’ Statement on the Pera Ibalik Sa taO (PISO) Campaign (Originally published in The Manila Times on October 14, 2014) The 2015 budget was passed on second reading by the House with the following issues remaining unresolved: First: Even as the 2015 National Budget will reach a staggering P2.6 trillion the House was only able to scrutinize in detail 23% of the total amount. The General Appropriations Act is only P1.7 trillion. This is because P888 billion is automatically appropriated. Out of the P1.7trillion proposed GAA, P382 billion is in lump sum appropriations and P120 billion is in unprogrammed funds. Considering the fact that P761 billion is in personnel expenditures which Congress does not touch, it is left with P599 billion for detailed scrutiny. This is equivalent to 23% of the total P2.6 trillion national budget. The first person to call attention to this reality is former Cong. Edcel Lagman. Second: The lump sum appropriations were not examined in detail. A few intrepid congressman raised questions about stratospheric increases in miscellaneous personnel benefits fund to P118 billion; budgetary support to government corporations to P61 billion and assistance to local government units to P33 billion. These questions were not answered satisfactorily. The same thing happened to Unprogrammed funds. Third: Automatic appropriations amounting to P888 billion were glossed over. This account includes interest payments of P372.8 billion, P389.8 billion in internal revenue allotments for local governments, employees’ retirement and insurance premiums at P30.1 billion and P21.2billion for Malampaya fund expenditures and the motor vehicles users charge. Interest expense is rising even as the Bureau of the Treasury announced that it will go down in 2014 and 2015. Overstatement is possible. Fourth: The proposed GAA was submitted with over 100 pages of errata–an appalling and unacceptable precedent. Nonetheless it was approved docilely on second reading by the House. Fifth, and most dangerous: The Special Provisions in the General Appropriation Act contain a redefinition of “savings” which will make it possible for the President to declare savings at any time of the year. The new definition will be retroactive. This provision will erase the historic decision of the Supreme Court on the Development Acceleration Program or DAP.

Congressmen who know the implications of these unresolved issues, along with civil society organizations, media and concerned citizens are hoping that the 2015 Budget will be substantially amended. But, considering the fact that the 2015 budget is an election budget, and considering the fact that it was passed with alacrity by majority of the members of the House, it is very possible that the 2015 budget will be passed on third and final reading with all its overstatements, errors, lumps, and sly redefinition of “savings.” Social Watch Philippines and the Alternative Budget Initiative network joins the Scrap Pork Network, Freedom from Debt Coalition, SANLAKAS and Abolish Pork Movement in Pera Ibalik Sa taO (PISO) Coalition and we challenge the Congress to truly represent the Filipino people in addressing the salient issues in the 2015 budget. If Congress rejects the contentious provisions in the proposed GAA, it will have regained a portion of its “Power of the Purse” and won back its honor. We should celebrate it as a co-equal and independent branch of government. If it passes the GAA, as proposed seven years ago by Cong. Edcel Lagman, Congress should hold a Requiem for its lost “Power of the Purse.” #