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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 errataan 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. #