Macroeconomic Policy News

House approves P1.816-T 2012 budget

DESPITE questions on the legality of some of the provisions in the proposed General Appropriations Act, the House of Representatives, in plenary session approved before midnight on Friday the P1.816-trillion 2012 budget.

Voting viva voce, the House passed on second reading House Bill 5023, which Speaker Feliciano Belmonte Jr. described as a budget “grounded on the realities” of the national and global economy.

“It is a budget assembled with great pragmatism, and with as much foresight as is humanly possible,” said Belmonte.

But in his turno en contra speech, Party-list Rep. Teodoro Casiño of Bayan Muna said the proposed budget does not address the fundamental problems of chronic poverty and underdevelopment and instead reduces the national budget into an instrument of dole outs and the privatization of basic social services.

Casiño said it was rushed using a process that is both undemocratic, “untransparent” and which undermines Congress’s power of the purse, “exactly the way that it was during the previous administration.”

Among others, the opposition, the progressive bloc and even some members of the majority are questioning the budget of the controversial conditional cash-transfer (CCT) program, which was increased to P39 billion from P21 billion this year; the P500-million budget cut in the proposed P1.816-trillion budget that will affect 50 state universities and colleges across the country; and the special provision giving unprecedented full control to the Executive branch of P101-billion funding for unfilled positions even for non-Executive branch agencies, including independent constitutional bodies and coequal branches of Congress.

The minority said the special provision, labeled as the Miscellaneous Personnel Benefits Fund, violates the fiscal independence of the judiciary and other constitutional agencies.

House Deputy Minority Leader Rep. Danilo Suarez even threatened to question the proposed budget before the Supreme Court.

Legislators are also questioning the slash in the budget of the Department of Health by P38 billion.

Party-list Rep. Raymond Palatino of Kabataan said the hasty passage of the national budget was an “utter disregard to the funding needs of basic sectors such as education and health.”

“The hasty passage of the 2012 national budget in the House reveals the skewed funding priorities of the government with its utter disregard to the funding needs of basic sectors such as education and health. One finds it hard to stomach such haste in light of budget cuts to basic social services and the bloated funding for inadequate programs like the CCTs and PPPs [public-private partnerships]. How can we, as supposed servants of the people, approve such disproportionate budget?” Palatino asked.

“More than the quick passage of the national budget, what we should ultimately consider is its content. Whom does it serve? Does it properly address the funding needs of our people?” he added.

Meanwhile, Casiño scored the House leadership for not allowing the amendments on the floor and instead leaving them in the bicameral conference committee.

The militant legislator also lamented that the House surrendered the power of the purse to Malacañang by approving it almost in the entirety of the President’s proposal.

“Our task is to improve on their proposal. That precisely, the budget is being heard here so that we, the people’s representatives, may do with it as we please [to] amend it, reduce, add or realign funds in order for our bosses, the people to be served better. Pero ano po ang nangyari? I’m sorry to say, but it is apparent the Executive branch and the appropriations committee have taken it upon themselves to defend the Palace proposal at all cost. At all cost. Eh kung ayaw pala nilang ma-amyendahan ang budget na ito, bakit dinala pa dito?” said Casino in his speech.

House leaders expect the final approval of the budget next month, after which it will be transmitted to the Senate. It is expected to be ratified in November and signed into law by President Aquino before the Christmas break.
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By: Fernan Marasigan
Source: Business Mirror, Sept. 17, 2011
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