A BILL seeking to temper the legislation of revenue-eroding measures has been submitted by the government to the House of Representatives, a Budget department official said.
“It is the executive-sponsored bill,” Budget Undersecretary Laura B. Pascua said in a text message, referring to House Bill (HB) 5245, or the proposed Fiscal Responsibility Act that has been sponsored by appropriations committee chairman Rep. Joseph Emilio A. Abaya (1st district, Cavite).
The proposal basically seeks to mandate that lawmakers come up with a corresponding revenue bill for every expenditure measure.
“The bill includes the pay-go provision being pushed by DoF (Department of Finance),” Ms. Pascua added.
Finance Undersecretary Gil S. Beltran, in a separate text message, said: “We have a desirable minimum which focuses on national government and [the] requirement that one cannot add to expenditures without a revenue source or a corresponding expenditure cut somewhere”.
The bill provides that all expenditure measures be accompanied by a Budget department financial impact estimate for the next three years and a sworn statement by the principal sponsor that a revenue generation measure would be included.
“This deficit-neutral measure is designed to prevent proliferation of unfunded laws,” it states.
HB 5245 also proposes:
• the formulation of a three-year Executive-Legislative Medium Term Fiscal Accord that details deficit, revenue and expenditure targets as well funding plans;
• the inclusion in the General Appropriations Bill of an Annual Budget Strategy containing the macro-economic policies and fiscal targets sought to be achieved by the government; and
• making government agencies practice responsible budgeting, especially with regard to personnel services allocations.
Mr. Abaya said the fiscal responsibility bill, one of the 31 priority measures of the Legislative Executive Development Advisory Council, should be approved “to send the message to the international community that we will impose fiscal discipline.”
Discussions on the measure will start in January, Ms. Abaya said.
Besides the Palace-backed fiscal responsibility bill, three similar measures — HBs 2263, 3639,4041 — are pending at the House. Counterpart versions — Senate Bills 2552 and 2177 — are currently pending at the chamber’s finance committee.
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Source: Business World, October 31, 2011
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