P10-B fund snagged
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Written by Butch Fernandez & Cai Ordinario / Reporters
THURSDAY, 08 OCTOBER 2009 01:54
SENATE leaders are not optimistic that the House of Representatives could still approve before next week’s congressional recess the initial P10-billion supplemental budget for immediate relief to thousands of Typhoon Ondoy flood victims.
But Majority Leader Miguel Zubiri held out hope that senators could rush approval of the counterpart funding bill “if the House submits its approved version by Monday.” And, he added, “if it is certified as urgent by Malacañang, we can approve the bill by Wednesday.”
The House, however, has yet to hold a committee hearing on the P10-billion budget on Monday before the bill could be brought to the floor for plenary approval, hopefully on the same day.
It was learned from congressional sources that backroom haggling in the House is hobbling early passage of the supplemental budget bill, with some congressmen lobbying for a bigger share (from P2 billion to P4 billion) from the supplemental fund for the rehabilitation of Panay towns damaged by typhoon Frank last year.
“That is the problem with the supplemental budget,” Sen. Miriam Santiago said, noting that “the deadline for our break is already upcoming. Wednesday would be our last working day before our next break. So we would not be able to accomplish a supplemental budget in the limited period that we’ve got left. That’s why we have to think how we could raise a billion or even more by other means.”
State of calamity debate
Meanwhile, Executive Secretary Eduardo Ermita, commenting on demands to lift the declaration of a state of calamity in certain areas, said Defense Secretary Gilbert Teodoro’s recommendation is being awaited as chairman of the National Disaster Coordinating Council (NDCC). The options are “either to lift altogether all over the country or lift it in some places that are obviously [no longer] threatened by any forthcoming typhoon such as Pepeng and Quedan, and this can very well be the areas of the entire Visayas and Mindanao.”
He expects a decision on the selective lifting of the state of calamity declaration in the next 24 hours. As NDCC chairman, Teodoro can recommend to the President the “selective lifting of the state of calamity. He specifically mentioned, probably, Visayas and Mindanao.”
Ermita sees a 90-percent chance that a selective lifting will be approved, “in the same manner that during our meeting last week, he [Teodoro] said that the state of national calamity be declared, the President made a decision, and indeed such was announced. [So a similar announcement on the] lifting in other places [can be made].”
Justice Secretary Agnes Devanadera explained, “We advocated that a state of calamity be initially declared because we have to spend for some measures that will mitigate the effects of typhoons and calamity—so that’s the first phase. And the second component is we have the rescue operations where the calamity actually happened and then we have the relief and then we have the rehabilitation.”
She clarified that it’s the long period of rehabilitation that requires an extended declaration of calamity. “So, the one year may not even be enough to restore the infrastructure damaged by the typhoons.”
‘Immoral’ supplemental budget
Meanwhile, civil-society groups are pressing the proposal to have the Executive dip into an estimated P140 billion in impounded funds, instead of scrambling to source money for a P10-billion supplemental budget.
Health Care Without Harm-Southeast Asia (HCWH-SEA) describes the proposed additional P10 billion to supplement this year’s calamity fund as “immoral.”
According to Merci Ferrer, executive director of HCWH-SEA and member of the Health Cluster of the Alternative Budget Initiative (ABI), “to date, allocated budget of various government agencies in 2008 amounting to P140 billion remains unreleased and at the mercy of the President. It is at her discretion to reallocate portion of this to the calamity fund.”
“However, the government should be stringent in disbursing the fund and must not forget the original purpose of the impounded budget [from where the calamity fund will be coming from],” Ferrer warns.
“The P140 billion in 2008 were allocated to government agencies to provide for basic social services such as health, education, food…We have to remember that beyond disaster preparedness, there are other mouths to be fed, social services to be provided,” said Ferrer.
“While portion of the impounded budget is reallocated to the calamity fund, the government must proceed to releasing the remaining amount to its original intention,” added Ferrer.
The group is calling for release of the impounded health budget—P100 million for purchase of 16 medical waste-treatment autoclaves for government-controlled hospitals, P400 million for TB program intended for treatment of 100,000 children with primary complex and 133 patients with multidrug-resistant TB, and P1.82 billion for maternal health program.
Health budget at risk
Responding to the Department of Health’s (DOH) call to likewise tap the calamity fund, HCWH-SEA through ABI has proposed in the 2010 budget an allocation of P28.05 million for purchase of mercury-free sphygmomanometers and thermometers in 66 DOH-run hospitals.
The DOH reported P670 million worth of damage in the 16 major government hospitals.
2 storms’ damage to farms nears P8 billion
The Department of Agriculture (DA) disclosed that damage to agriculture caused by Typhoons Ondoy and Pepeng has climbed to a total of P7.94 billion,
The DA Central Action Center Situationer Report released on Wednesday showed the consolidated damage in the Ilocos, Cagayan Valley, Central Luzon, Calabarzon, Mimaropa and Bicol regions, as well as the Cordillera Autonomous Region (CAR), due to Typhoon Ondoy has reached around P6.8 billion; farm damage from Pepeng has risen to around P1.14 billion.
The impact of the damage to rice and corn production targets in the fourth quarter include 375,036 metric tons (MT) of rice. This is composed of 313,427 MT palay lost due to Ondoy which is 4.84 percent of national target of 6,478,960 MT, and 61,609 MT lost due to Pepeng which is 0.95 percent of the national target.
The DA said provinces which lost target rice production are La Union, Pangasinan, Cagayan, Isabela, Nueva Vizcaya, Quirino, Aurora, Bataan, Nueva Ecija, Pampanga, Tarlac, Zambales, Batangas, Cavite, Laguna, Quezon, Rizal, Mindoro Occidental, Albay, Camarines Norte, Camarines Sur, Masbate, and Sorsogon.
For corn, the total volume loss is estimated at 4,381 MT. Ondoy caused a total volume loss of 2,939 MT, which is 0.21 percent of the national target production of 1,396,394 MT while Pepeng caused a loss of 1,442 MT which is 0.10 percent of the target for the fourth quarter.
Monday, October 12, 2009
Civil society calls for release of other impounded funds to save people from disasters
SOCIAL WATCH PHILIPPINES
MEDIA RELEASE
October 9, 2009
Refer to: Leonor Magtolis Briones
Contact Nos. (+63 02) 4265626 / 4265632
DBM source of data on impounded funds
Civil society calls for release of other impounded funds to save people from disasters
The data on the P140 billion Overall Savings from impounded funds is based on documents supplied by the Department of Budget and Management (DBM) to Congress and the report of the Commission on Audit (COA) on the 2008 Appropriations.
Members of the Alternative Budget Initiative (ABI) reminded Malacanang officials about this when they expressed ignorance on the whereabouts of the P140 billion funds impounded by President Gloria Arroyo which can be partially used to increase the calamity fund instead of releasing a supplemental budget.
“The details on the overall savings are on pages 714 to 723 of the NEP 2010,” said former national treasurer Leonor Magtolis Briones, lead convenor of Social Watch Philippines (SWP) which organized the ABI. “In 2008, President Arroyo transferred P178 billion from different agencies to overall savings. On the other hand, a total of P38 billion was transferred from Overall Savings to different agencies. This resulted to a net transfer of P140 billion which are recorded as Unreleased Appropriations. Presumably, this amount is carried over to 2009,” Briones added.
Briones also said that, instead of a supplemental budget that would only increase the country’s deficit, Malacanang can use the remaining balances in the Special Purpose Funds (SPFs) and accumulated savings which are handled by the Office of the President through the DBM. “We can look at the calamity fund and contingency fund, which are under SPF, to be able to respond to the disasters. Details on the calamity fund are on pages 669 to 671 of the NEP, while contingency fund details are on pages 672 to 673,” Briones said.
Meanwhile, Isagani Serrano, vice president of the Philippine Rural Reconstruction Movement (PRRM) and one of the heads of the ABI-Environment Group, said that they are horrified by the response of Budget Chief Rolando Andaya that the said amount is an “amount only in paper”.
“We are talking about people’s hard-earned money here. They cannot just allocate public funds, impound it, and say that the amount is non-existent and just in paper,” Serrano said. “While it is true that the amounts are listed in paper, they are translated into cash once the President authorize the release of these budget items and the DBM process its release,” he said.
“Millions of Filipinos are already in harm’s way due to the impacts of climate change and environmental degradation. Government should immediately use these impounded funds to save and protect our communities from extreme weather conditions,” Serrano added.
The ABI presented a list of impounded funds during the House Committee on Appropriations’ special hearing on ABI’s alternative budget proposals. This includes funds for health and agriculture programs in the 2008 budget such as P1.8 billion for family health, P400 million for the tuberculosis program, P100 million for purchase of autoclaves, P100 million for the promotion of organic agriculture and P2 million for training for system of rice intensification (SRI) small farmers; and funds in the 2009 General Appropriations Act (GAA) including P95 million for Protected Areas and Wildlife Management and P1 billion for reforestation.
Committee on Appropriations Vice Chair Edcel Lagman echoed the ABI’s call in his sponsorship speech during the plenary debates on the 2010 national budget. “Once impounded as “forced savings” congressional initiative allocations may never see the light of day or the impounded amounts constitute an off-budget new lump sum which can be used by the Executive to fund projects which may not even find anchorage in the General Appropriations Act,” Lagman said.
The ABI also called Congress to advise the Executive to be transparent and report any transfer of funds to calamity funds. “The Commission on Audit (COA) reported lack of information on budget documents such as the pooled savings in 2007 amounting to P106.11 billion from net of transfer from one agency to another and from one SPF to another which cannot be verified due to lack of supporting documents,” Briones said. “The COA also reported realignment of Funds without Authority such as savings on electricity and fuel which were used to pay transportation and rice subsidy without request for realignment,” Briones said.
The ABI, a consortium of 60 nongovernment organizations led by Social Watch Philippines, is globally acknowledged for initiating civil society-legislature partnership for alternative budget proposals for increased allocation for health, agriculture, environment and education.
MEDIA RELEASE
October 9, 2009
Refer to: Leonor Magtolis Briones
Contact Nos. (+63 02) 4265626 / 4265632
DBM source of data on impounded funds
Civil society calls for release of other impounded funds to save people from disasters
The data on the P140 billion Overall Savings from impounded funds is based on documents supplied by the Department of Budget and Management (DBM) to Congress and the report of the Commission on Audit (COA) on the 2008 Appropriations.
Members of the Alternative Budget Initiative (ABI) reminded Malacanang officials about this when they expressed ignorance on the whereabouts of the P140 billion funds impounded by President Gloria Arroyo which can be partially used to increase the calamity fund instead of releasing a supplemental budget.
“The details on the overall savings are on pages 714 to 723 of the NEP 2010,” said former national treasurer Leonor Magtolis Briones, lead convenor of Social Watch Philippines (SWP) which organized the ABI. “In 2008, President Arroyo transferred P178 billion from different agencies to overall savings. On the other hand, a total of P38 billion was transferred from Overall Savings to different agencies. This resulted to a net transfer of P140 billion which are recorded as Unreleased Appropriations. Presumably, this amount is carried over to 2009,” Briones added.
Briones also said that, instead of a supplemental budget that would only increase the country’s deficit, Malacanang can use the remaining balances in the Special Purpose Funds (SPFs) and accumulated savings which are handled by the Office of the President through the DBM. “We can look at the calamity fund and contingency fund, which are under SPF, to be able to respond to the disasters. Details on the calamity fund are on pages 669 to 671 of the NEP, while contingency fund details are on pages 672 to 673,” Briones said.
Meanwhile, Isagani Serrano, vice president of the Philippine Rural Reconstruction Movement (PRRM) and one of the heads of the ABI-Environment Group, said that they are horrified by the response of Budget Chief Rolando Andaya that the said amount is an “amount only in paper”.
“We are talking about people’s hard-earned money here. They cannot just allocate public funds, impound it, and say that the amount is non-existent and just in paper,” Serrano said. “While it is true that the amounts are listed in paper, they are translated into cash once the President authorize the release of these budget items and the DBM process its release,” he said.
“Millions of Filipinos are already in harm’s way due to the impacts of climate change and environmental degradation. Government should immediately use these impounded funds to save and protect our communities from extreme weather conditions,” Serrano added.
The ABI presented a list of impounded funds during the House Committee on Appropriations’ special hearing on ABI’s alternative budget proposals. This includes funds for health and agriculture programs in the 2008 budget such as P1.8 billion for family health, P400 million for the tuberculosis program, P100 million for purchase of autoclaves, P100 million for the promotion of organic agriculture and P2 million for training for system of rice intensification (SRI) small farmers; and funds in the 2009 General Appropriations Act (GAA) including P95 million for Protected Areas and Wildlife Management and P1 billion for reforestation.
Committee on Appropriations Vice Chair Edcel Lagman echoed the ABI’s call in his sponsorship speech during the plenary debates on the 2010 national budget. “Once impounded as “forced savings” congressional initiative allocations may never see the light of day or the impounded amounts constitute an off-budget new lump sum which can be used by the Executive to fund projects which may not even find anchorage in the General Appropriations Act,” Lagman said.
The ABI also called Congress to advise the Executive to be transparent and report any transfer of funds to calamity funds. “The Commission on Audit (COA) reported lack of information on budget documents such as the pooled savings in 2007 amounting to P106.11 billion from net of transfer from one agency to another and from one SPF to another which cannot be verified due to lack of supporting documents,” Briones said. “The COA also reported realignment of Funds without Authority such as savings on electricity and fuel which were used to pay transportation and rice subsidy without request for realignment,” Briones said.
The ABI, a consortium of 60 nongovernment organizations led by Social Watch Philippines, is globally acknowledged for initiating civil society-legislature partnership for alternative budget proposals for increased allocation for health, agriculture, environment and education.
‘Come clean on P140-B funds’
BUSINESS MIRROR
http://businessmirror.com.ph/home/top-news/16969-come-clean-on-p140-b-funds.html
‘Come clean on P140-B funds’
Top News
Wednesday, 07 October 2009 03:26
PALACE officials were urged on Tuesday to “come clean” on the reason behind the impounding of P140 billion in funds from the 2008 budget, and the failure of the Executive to inform Congress that Mrs. Arroyo had such huge amount at her disposal.
The call from Makati Mayor Jejomar Binay followed revelations from alternative-budget activists, led by former national treasurer Leonor Briones, for the Executive to tap into these funds, instead of looking at other means to raise money, for post-calamity rehabilitation, but which will burden people even more and swell the deficit.
“Malacañang needs to come clean on Mrs. Arroyo’s purpose for impounding such a huge amount. And it also needs to explain not only to Congress but to the public why it kept silent on the existence of P140 billion in impounded funds,” Binay said.
Besides replenishing the calamity fund, the P140 billion impounded by Malacañang through transfer from various government agencies could provide help to the agriculture sector, added the mayor.
“Mrs. Arroyo can apparently provide the funds needed to ensure stable food supply by next year, in view of the admission by government officials that there could be a shortage in the supply of rice by nearly next year,” he said.
Binay said Congress has been prompted by the extensive damage caused by Typhoon Ondoy to provide the Office of the President with a P10- billion supplemental budget for the depleted calamity fund.
“Malacañang did not object to the proposal, but neither did it inform Congress that Mrs. Arroyo has more than enough funds at her disposal,” he said.
‘Disturbing’ findings
Binay said the findings of Professor Briones that Mrs. Arroyo had impounded P140 billion in funds from the 2008 budget is disturbing in the light of the national government’s precarious fiscal situation.
“The national government is already in a deficit, and it would have to resort to more borrowings if Congress would approve the P10-billion supplemental fund,” he said. He added that Malacañang could easily allay the concern of Congress and the public about its ability to respond to the calamity by saying that Mrs. Arroyo has more than enough money at her disposal.
Palace’s reaction
AT the Palace, deputy presidential spokesman Anthony Golez sidestepped the issue, telling reporters, “We’re not saying that [the P140 billion] actually exists, I don’t even know what they’re talking about; I think whether or not that figure exists, I think it would be better if the budget secretary or any budget official can answer that question.”
He noted that all sectors are pitching in to help the victims of Typhoons Ondoy and Pepeng, and the President had even opened Malacañang Palace to serve as an evacuation and relief center. The “P10-billion supplemental budget is Congress’s way of helping our citizens especially in Metro Manila and nearby provinces.”
http://businessmirror.com.ph/home/top-news/16969-come-clean-on-p140-b-funds.html
‘Come clean on P140-B funds’
Top News
Wednesday, 07 October 2009 03:26
PALACE officials were urged on Tuesday to “come clean” on the reason behind the impounding of P140 billion in funds from the 2008 budget, and the failure of the Executive to inform Congress that Mrs. Arroyo had such huge amount at her disposal.
The call from Makati Mayor Jejomar Binay followed revelations from alternative-budget activists, led by former national treasurer Leonor Briones, for the Executive to tap into these funds, instead of looking at other means to raise money, for post-calamity rehabilitation, but which will burden people even more and swell the deficit.
“Malacañang needs to come clean on Mrs. Arroyo’s purpose for impounding such a huge amount. And it also needs to explain not only to Congress but to the public why it kept silent on the existence of P140 billion in impounded funds,” Binay said.
Besides replenishing the calamity fund, the P140 billion impounded by Malacañang through transfer from various government agencies could provide help to the agriculture sector, added the mayor.
“Mrs. Arroyo can apparently provide the funds needed to ensure stable food supply by next year, in view of the admission by government officials that there could be a shortage in the supply of rice by nearly next year,” he said.
Binay said Congress has been prompted by the extensive damage caused by Typhoon Ondoy to provide the Office of the President with a P10- billion supplemental budget for the depleted calamity fund.
“Malacañang did not object to the proposal, but neither did it inform Congress that Mrs. Arroyo has more than enough funds at her disposal,” he said.
‘Disturbing’ findings
Binay said the findings of Professor Briones that Mrs. Arroyo had impounded P140 billion in funds from the 2008 budget is disturbing in the light of the national government’s precarious fiscal situation.
“The national government is already in a deficit, and it would have to resort to more borrowings if Congress would approve the P10-billion supplemental fund,” he said. He added that Malacañang could easily allay the concern of Congress and the public about its ability to respond to the calamity by saying that Mrs. Arroyo has more than enough money at her disposal.
Palace’s reaction
AT the Palace, deputy presidential spokesman Anthony Golez sidestepped the issue, telling reporters, “We’re not saying that [the P140 billion] actually exists, I don’t even know what they’re talking about; I think whether or not that figure exists, I think it would be better if the budget secretary or any budget official can answer that question.”
He noted that all sectors are pitching in to help the victims of Typhoons Ondoy and Pepeng, and the President had even opened Malacañang Palace to serve as an evacuation and relief center. The “P10-billion supplemental budget is Congress’s way of helping our citizens especially in Metro Manila and nearby provinces.”
Palace: No P140-B fund
THE DAILY TRIBUNE
http://www.tribune.net.ph/headlines/20091007hed3.html
Palace: No P140-B fund
By Aytch de la Cruz
10/07/2009
Malacañang officials yesterday appeared to have been at a loss for words when asked to provide an explanation or at least give a categorical statement behind reports over the alleged P140-billion fund impounded by President Arroyo that could have instead been utilized to increase the dwindling calamity fund rather than wait for the P10-billion supplemental budget currently pending at Congress.
Former National Treasurer Leonor Briones, who knows whereof she speaks on these matters, the other day stated that President Arroyo has P140 billion in available funds which was impounded through transfers from the budget of the various government agencies last year, an amount which Briones said
should be more than enough to augment the depleted calamity fund being used for government relief efforts.
Briones said Arroyo’s propensity to juggle the yearly budget allocations has resulted in P140 billion in disposable funds in the hands of the President.
"While the Constitution allows the president to reallocate funds of government agencies, this President had done this excessively," Briones said.
For last year, some P178 billion of such fund was reallocated with P140 billion still unreleased and would save the goverment from the sound and fury of going through the congressional process for a supplemental budget.
Briones added that using the impounded funds for the government’s relief efforts would also save the government from further borrowing which it would have to resort to in the plan for a P10-billion budget supplement.
Briones also pointed out that most of the funds that Arroyo has the discretion to release is also not subject to examination by the Commission on Audit (CoA).
The presidential spokesmen all claimed to be unaware of the impoundment of the P140 billion that Briones said was available for release, at the discretion of Arroyo.
Presidential Economic Spokesman Gary Olivar implied that the assertions being put forward right now by Briones and Rep. Teofisto Guingona III (2nd District, Bukidnon) were relatively unsound and unclear as the existence of that P140-B impounded fund itself was not substantially confirmed.
"Based on what I habe read, the P140-billion, I think, is simply the difference between what may have been originally requested in the budget submission and what was eventually approved or perhaps what was eventually spent based on the discretion of the executive. It doesn’t mean there is real cash hanging and waiting around there," Olivar said.
Press Undersecretary Anthony Golez, Jr., for his part, theorized that the additional P10-B supplemental budget proposed by the Congress should not be confused with that of the alleged P140 billion impounded fund because there is a stark difference between the two.
Golez implied that the P10 billion supplemental budget was something that is supposed to be carried out of charity as this was Congress’ way of helping our citizens especially those affected Metro Manila and the provinces nearby.
Deputy Presidential Spokesperson Lorelei Fajardo also claimed she was not aware where the idea of P140 billion impounded fund came from; reiterating previous hints by Golez and Olivar that the best agency to clarify such questions is the Department of Budget and Management (DBM).
"That has to be answered by the DBM because I am not exactly sure if that P140 billion she (Briones) is saying exists. I am not aware of that P140 billion, (therefore) it is better to be clear on what exactly does that P140 billion impounded funds mean," Fajardo said.
But the Budget chief, Secretary Rolando Andaya, in a radio interview over dzRH, also manifested the same ignorance when asked to provide a statement on the issue at hand.
"These funds from last year that were not being used, this fund that they say was impounded last year and not used was used because the extra revenues were not enough since the quota of the Bureau of Internal Revenue was not met. So we decided not to bring this out in the open, if such are the funds. That was last year’s. This year is a different matter. There really are no funds, just funds on paper," Andaya said.
http://www.tribune.net.ph/headlines/20091007hed3.html
Palace: No P140-B fund
By Aytch de la Cruz
10/07/2009
Malacañang officials yesterday appeared to have been at a loss for words when asked to provide an explanation or at least give a categorical statement behind reports over the alleged P140-billion fund impounded by President Arroyo that could have instead been utilized to increase the dwindling calamity fund rather than wait for the P10-billion supplemental budget currently pending at Congress.
Former National Treasurer Leonor Briones, who knows whereof she speaks on these matters, the other day stated that President Arroyo has P140 billion in available funds which was impounded through transfers from the budget of the various government agencies last year, an amount which Briones said
should be more than enough to augment the depleted calamity fund being used for government relief efforts.
Briones said Arroyo’s propensity to juggle the yearly budget allocations has resulted in P140 billion in disposable funds in the hands of the President.
"While the Constitution allows the president to reallocate funds of government agencies, this President had done this excessively," Briones said.
For last year, some P178 billion of such fund was reallocated with P140 billion still unreleased and would save the goverment from the sound and fury of going through the congressional process for a supplemental budget.
Briones added that using the impounded funds for the government’s relief efforts would also save the government from further borrowing which it would have to resort to in the plan for a P10-billion budget supplement.
Briones also pointed out that most of the funds that Arroyo has the discretion to release is also not subject to examination by the Commission on Audit (CoA).
The presidential spokesmen all claimed to be unaware of the impoundment of the P140 billion that Briones said was available for release, at the discretion of Arroyo.
Presidential Economic Spokesman Gary Olivar implied that the assertions being put forward right now by Briones and Rep. Teofisto Guingona III (2nd District, Bukidnon) were relatively unsound and unclear as the existence of that P140-B impounded fund itself was not substantially confirmed.
"Based on what I habe read, the P140-billion, I think, is simply the difference between what may have been originally requested in the budget submission and what was eventually approved or perhaps what was eventually spent based on the discretion of the executive. It doesn’t mean there is real cash hanging and waiting around there," Olivar said.
Press Undersecretary Anthony Golez, Jr., for his part, theorized that the additional P10-B supplemental budget proposed by the Congress should not be confused with that of the alleged P140 billion impounded fund because there is a stark difference between the two.
Golez implied that the P10 billion supplemental budget was something that is supposed to be carried out of charity as this was Congress’ way of helping our citizens especially those affected Metro Manila and the provinces nearby.
Deputy Presidential Spokesperson Lorelei Fajardo also claimed she was not aware where the idea of P140 billion impounded fund came from; reiterating previous hints by Golez and Olivar that the best agency to clarify such questions is the Department of Budget and Management (DBM).
"That has to be answered by the DBM because I am not exactly sure if that P140 billion she (Briones) is saying exists. I am not aware of that P140 billion, (therefore) it is better to be clear on what exactly does that P140 billion impounded funds mean," Fajardo said.
But the Budget chief, Secretary Rolando Andaya, in a radio interview over dzRH, also manifested the same ignorance when asked to provide a statement on the issue at hand.
"These funds from last year that were not being used, this fund that they say was impounded last year and not used was used because the extra revenues were not enough since the quota of the Bureau of Internal Revenue was not met. So we decided not to bring this out in the open, if such are the funds. That was last year’s. This year is a different matter. There really are no funds, just funds on paper," Andaya said.
Free P140 billion impounded by GMA
THE DAILY TRIBUNE
http://www.tribune.net.ph/headlines/20091006hed1.html
Free P140 billion impounded by GMA
10/06/2009
President Arroyo has P140 billion in available funds which were impounded through transfers from the budget of the various government agencies last year which should be more than enough to augment the depleted calamity fund being used for government relief efforts, former National Treasurer Leonor Briones said yesterday.
Congress is currently reviewing a proposed P10 billion supplement for this year’s budget that will be used to fill up the calamity fund that had ran out with only P29 million left in it.
Briones said Arroyo’s propensity to juggle the yearly budget allocations has resulted in P140 billion in disposable funds in the hands of the President.
"While the Constitution allows the president to reallocate funds of government agencies, this President had done this excessively," Briones said.
For last year, some P178 billion of such fund was reallocated with P140 billion still unreleased and would save the goverment from the sound and fury of going through the congressional process for a supplemental budget.
Briones added that using the impounded funds for the government’s relief efforts would also save the government from further borrowing which it would have to resort to in the plan for a P10-billion budget supplement.
Briones said most of the funds that Arroyo has the discretion to release is also not subjected to examination by the Commission on Audit (CoA).
She said legislators should question the impoundment of funds in the yearly budget that rarely happens, she said, under the term of Arroyo.
Briones cited Bukidnon Representative Teofisto "TG" Guingona III who had criticized the practice of forced savings in the budget that allowed President Arroyo access to billions of pesos of funds
"While the Constitution states that those authorized (persons) may only augment items under their respective budgets from their respective savings, we have on record several transfers made to and from items clearly under other offices," Guingona said.
The practice of impoundment happens through the refusal of the President to spend funds that actually have been appropriated.
Briones added there are other means to build up the calamity fund without going to Congress for a budget supplement, which Briones said is the usual knee-jerk measure under the Arroyo administration.
She said the Motor Vehicle User’s Charge (MVUC) which is a special purpose fund under the Department of Public Works and Highways and is paid by every vehicle registrant is not part of the budget and can be tapped for the rehabilitation of flood-damaged infrastructure.
Using the fund, which is estimated to have from P40 billion to P50 billion in it, will prevent inflationary effect on raising the amount for rehabilitation work since it has been collected from motorists, she said.
She noted that the fund was already used in the recent Asean Summit held in Cebu to build facilities for the meeting.
Nearly a half of this year’s budget of P1.5 trillion is classified as special purpose fund that Arroyo is at liberty to appropriate.
She said the CoA has already questioned its inability to audit these funds.
Briones’ proposal got the support of various organizations who said the impounded funds use is more appropriate instead of hastily approving the proposed P10 billion supplemental budget.The Palace should release the funds it impounded by and realign this to the country’s calamity fund," Roland Cabigas, Managing Director of the La Liga Policy Institute (LLPI) said.
Senate Majority Leader Juan Miguel Zubiri, meanwhile, urged congressmen to approve with dispatch the proposed disaster preparedness and prevention bill to avert a repeat of tragedy brought by Typhoon Ondoy.
"I call on our counterparts from the House of Representatives to immediately pass the Disaster Risk Management and Preparedness bill. We need to draw a comprehensive disaster preparedness and response mechanism.
"I am certain that with climate change, this would not be the last of its kind. More powerful typhoons and devastating floods, landslides and other natural calamities are expected to hit us sooner than we think. By then, we should have a good disaster risk management and preparedness mechanism and climate change mitigation and adaptation policies in place," Zubiri said.
While the lower house is yet to act on bill, the proposed Philippine Disaster Preparedness and Prevention Act of 2007, the Senate has approved the said measure last Sept. 2.
The measure seeks to lay down the groundwork for a more responsive and effective disaster monitoring, coordination and response program at all levels of the government. It also proposes the provision of benefits for volunteers who may experience casualties in line of their duty.
It likewise aims to create a more self-reliant and more effective Disaster Management Council to lessen the dependence of local governments to the national government for rescue and relief operations.
It also proposes the participation of non-government organizations to the government disaster preparedness and prevention program to strengthen the delivery mechanism of emergency services and encourage volunteerism and "bayanihan" among the citizenry.
A National Disaster Management Center (NDMC) will be established to advise the president on the status of disaster preparedness, prevention, mitigation, response and rehabilitation organizations being undertaken by concerned government and private organizations.
It will likewise ensure that adequate measures are taken by government agencies to mitigate, prepare for and respond to disasters and assist in the recovery from the effects of a disaster. It will also make certain that all safety rules issued by concerned agencies are properly synchronized.
LLPI, which serves as the secretariat of the Environment Cluster of the Alternative Budget Initiative (ABI), believes that the quickest route to finance government’s disaster response is not via a supplemental budget but by simply releasing already available funds but have been impounded since 2008. It is estimated that impounded funds since 2008 amount to as much as P140 billion.
The group explained that such impounded funds would be enough to cover or finance climate change actions that will prepare the government to respond to disaster beyond rescue and relief, or rehabilitation, but more importantly, for disaster preparedness and risk reduction.
According to Cabigas, apart from immediately releasing the impounded funds mechanism for calamity fund disbursement must be reviewed. A process must be defined where affected local government units (LGUs) directly receive the funds and are able to prioritize its expenditure based on their actual needs including spending for disaster preparedness and risk reduction programs and activities.
http://www.tribune.net.ph/headlines/20091006hed1.html
Free P140 billion impounded by GMA
10/06/2009
President Arroyo has P140 billion in available funds which were impounded through transfers from the budget of the various government agencies last year which should be more than enough to augment the depleted calamity fund being used for government relief efforts, former National Treasurer Leonor Briones said yesterday.
Congress is currently reviewing a proposed P10 billion supplement for this year’s budget that will be used to fill up the calamity fund that had ran out with only P29 million left in it.
Briones said Arroyo’s propensity to juggle the yearly budget allocations has resulted in P140 billion in disposable funds in the hands of the President.
"While the Constitution allows the president to reallocate funds of government agencies, this President had done this excessively," Briones said.
For last year, some P178 billion of such fund was reallocated with P140 billion still unreleased and would save the goverment from the sound and fury of going through the congressional process for a supplemental budget.
Briones added that using the impounded funds for the government’s relief efforts would also save the government from further borrowing which it would have to resort to in the plan for a P10-billion budget supplement.
Briones said most of the funds that Arroyo has the discretion to release is also not subjected to examination by the Commission on Audit (CoA).
She said legislators should question the impoundment of funds in the yearly budget that rarely happens, she said, under the term of Arroyo.
Briones cited Bukidnon Representative Teofisto "TG" Guingona III who had criticized the practice of forced savings in the budget that allowed President Arroyo access to billions of pesos of funds
"While the Constitution states that those authorized (persons) may only augment items under their respective budgets from their respective savings, we have on record several transfers made to and from items clearly under other offices," Guingona said.
The practice of impoundment happens through the refusal of the President to spend funds that actually have been appropriated.
Briones added there are other means to build up the calamity fund without going to Congress for a budget supplement, which Briones said is the usual knee-jerk measure under the Arroyo administration.
She said the Motor Vehicle User’s Charge (MVUC) which is a special purpose fund under the Department of Public Works and Highways and is paid by every vehicle registrant is not part of the budget and can be tapped for the rehabilitation of flood-damaged infrastructure.
Using the fund, which is estimated to have from P40 billion to P50 billion in it, will prevent inflationary effect on raising the amount for rehabilitation work since it has been collected from motorists, she said.
She noted that the fund was already used in the recent Asean Summit held in Cebu to build facilities for the meeting.
Nearly a half of this year’s budget of P1.5 trillion is classified as special purpose fund that Arroyo is at liberty to appropriate.
She said the CoA has already questioned its inability to audit these funds.
Briones’ proposal got the support of various organizations who said the impounded funds use is more appropriate instead of hastily approving the proposed P10 billion supplemental budget.The Palace should release the funds it impounded by and realign this to the country’s calamity fund," Roland Cabigas, Managing Director of the La Liga Policy Institute (LLPI) said.
Senate Majority Leader Juan Miguel Zubiri, meanwhile, urged congressmen to approve with dispatch the proposed disaster preparedness and prevention bill to avert a repeat of tragedy brought by Typhoon Ondoy.
"I call on our counterparts from the House of Representatives to immediately pass the Disaster Risk Management and Preparedness bill. We need to draw a comprehensive disaster preparedness and response mechanism.
"I am certain that with climate change, this would not be the last of its kind. More powerful typhoons and devastating floods, landslides and other natural calamities are expected to hit us sooner than we think. By then, we should have a good disaster risk management and preparedness mechanism and climate change mitigation and adaptation policies in place," Zubiri said.
While the lower house is yet to act on bill, the proposed Philippine Disaster Preparedness and Prevention Act of 2007, the Senate has approved the said measure last Sept. 2.
The measure seeks to lay down the groundwork for a more responsive and effective disaster monitoring, coordination and response program at all levels of the government. It also proposes the provision of benefits for volunteers who may experience casualties in line of their duty.
It likewise aims to create a more self-reliant and more effective Disaster Management Council to lessen the dependence of local governments to the national government for rescue and relief operations.
It also proposes the participation of non-government organizations to the government disaster preparedness and prevention program to strengthen the delivery mechanism of emergency services and encourage volunteerism and "bayanihan" among the citizenry.
A National Disaster Management Center (NDMC) will be established to advise the president on the status of disaster preparedness, prevention, mitigation, response and rehabilitation organizations being undertaken by concerned government and private organizations.
It will likewise ensure that adequate measures are taken by government agencies to mitigate, prepare for and respond to disasters and assist in the recovery from the effects of a disaster. It will also make certain that all safety rules issued by concerned agencies are properly synchronized.
LLPI, which serves as the secretariat of the Environment Cluster of the Alternative Budget Initiative (ABI), believes that the quickest route to finance government’s disaster response is not via a supplemental budget but by simply releasing already available funds but have been impounded since 2008. It is estimated that impounded funds since 2008 amount to as much as P140 billion.
The group explained that such impounded funds would be enough to cover or finance climate change actions that will prepare the government to respond to disaster beyond rescue and relief, or rehabilitation, but more importantly, for disaster preparedness and risk reduction.
According to Cabigas, apart from immediately releasing the impounded funds mechanism for calamity fund disbursement must be reviewed. A process must be defined where affected local government units (LGUs) directly receive the funds and are able to prioritize its expenditure based on their actual needs including spending for disaster preparedness and risk reduction programs and activities.
ith P140-billion savings, why seek P10-billion more?
THE Philippine Star
http://www.philstar.com/Article.aspx?articleId=511528&publicationSubCategoryId=64
Opinion
With P140-billion savings, why seek P10-billion more?
POSTSCRIPT By Federico D. Pascual Jr. (The Philippine Star) Updated October 06, 2009 12:00 AM
HIDDEN SAVINGS: Instead of the P10-billion supplemental calamity budget that the Congress wants to pass, President Gloria Arroyo should just use the P140 billion in savings accumulated from programs that were phased down in 2008.
Many reasonable people find the above calamity-mitigation funding proposal of the private sector Alternative Budget Initiative logical and pragmatic.
Tapping accumulated savings is simpler and faster fund mobilization than enacting a supplemental budget that is prone to the usual legislative horse-trading and sure to bloat the deficit.
Using the impounded billions now to cushion the depredation of typhoons and future disasters will also dispel suspicion that the “war chest” is being packed and preserved for partisan spending in the 2010 elections.
* * *
BULGING DEFICIT: The ABI said the P140-billion savings piled up after the President stopped the fund releases for programs of different agencies in 2008 and transferred the billions to overall savings.
Former national treasurer Leonor Magtolis Briones, lead convenor of Social Watch Philippines that organized the ABI, said: “The proposed P10-billion supplemental budget for a calamity fund will cause more hardships for millions of hungry Filipinos because this will add to the country’s ballooning deficit.”
Briones said the deficit starts at P210 billion as of end of August and is expected to breach P300 billion by the end of the year.
“Meanwhile, life has been a calamity for 3.7 million Filipino families with no food, no education, and no healthcare, because funds for social development programs had been impounded and transformed to savings,” she added.
* * *
OTHER OPTIONS: Even without a supplemental budget, Malacañang is not that helpless in mitigating the effects of disasters, Briones said.
Another option, she pointed out, is for the Congress to advise the President to use Special Purpose Funds that may be validly spent during disasters. The entire country has been declared in a state of calamity.
With the lump sums classified as Special Purpose Funds are billions under the Allocations for Local Government Units that include the Kilos Asenso Fund and Financial Subsidy to LGUs.
The President simply has to inform the Congress, which holds the purse strings of government, that she would transfer certain budget items to the calamity fund.
* * *
AUDIT NEEDED: In yesterday’s Senate inquiry into the government’s handling of the Ondoy disaster, the La Liga Policy Institute supported the ABI proposal.
Roland Cabigas, LLPI managing director, said the quickest way to finance government’s response to disasters is “not by enacting a supplemental budget but by simply releasing already available funds but have been impounded since 2008.”
He added that calamity fund disbursement must be reviewed. A process must be defined, he said, where local governments directly receive the money and prioritize spending based on actual needs.”
Calamity funds are often treated as highly discretionary and not audited. For 2009 so far, Cabigas said, the calamity fund releases that have reached P6 billion must be audited.
http://www.philstar.com/Article.aspx?articleId=511528&publicationSubCategoryId=64
Opinion
With P140-billion savings, why seek P10-billion more?
POSTSCRIPT By Federico D. Pascual Jr. (The Philippine Star) Updated October 06, 2009 12:00 AM
HIDDEN SAVINGS: Instead of the P10-billion supplemental calamity budget that the Congress wants to pass, President Gloria Arroyo should just use the P140 billion in savings accumulated from programs that were phased down in 2008.
Many reasonable people find the above calamity-mitigation funding proposal of the private sector Alternative Budget Initiative logical and pragmatic.
Tapping accumulated savings is simpler and faster fund mobilization than enacting a supplemental budget that is prone to the usual legislative horse-trading and sure to bloat the deficit.
Using the impounded billions now to cushion the depredation of typhoons and future disasters will also dispel suspicion that the “war chest” is being packed and preserved for partisan spending in the 2010 elections.
* * *
BULGING DEFICIT: The ABI said the P140-billion savings piled up after the President stopped the fund releases for programs of different agencies in 2008 and transferred the billions to overall savings.
Former national treasurer Leonor Magtolis Briones, lead convenor of Social Watch Philippines that organized the ABI, said: “The proposed P10-billion supplemental budget for a calamity fund will cause more hardships for millions of hungry Filipinos because this will add to the country’s ballooning deficit.”
Briones said the deficit starts at P210 billion as of end of August and is expected to breach P300 billion by the end of the year.
“Meanwhile, life has been a calamity for 3.7 million Filipino families with no food, no education, and no healthcare, because funds for social development programs had been impounded and transformed to savings,” she added.
* * *
OTHER OPTIONS: Even without a supplemental budget, Malacañang is not that helpless in mitigating the effects of disasters, Briones said.
Another option, she pointed out, is for the Congress to advise the President to use Special Purpose Funds that may be validly spent during disasters. The entire country has been declared in a state of calamity.
With the lump sums classified as Special Purpose Funds are billions under the Allocations for Local Government Units that include the Kilos Asenso Fund and Financial Subsidy to LGUs.
The President simply has to inform the Congress, which holds the purse strings of government, that she would transfer certain budget items to the calamity fund.
* * *
AUDIT NEEDED: In yesterday’s Senate inquiry into the government’s handling of the Ondoy disaster, the La Liga Policy Institute supported the ABI proposal.
Roland Cabigas, LLPI managing director, said the quickest way to finance government’s response to disasters is “not by enacting a supplemental budget but by simply releasing already available funds but have been impounded since 2008.”
He added that calamity fund disbursement must be reviewed. A process must be defined, he said, where local governments directly receive the money and prioritize spending based on actual needs.”
Calamity funds are often treated as highly discretionary and not audited. For 2009 so far, Cabigas said, the calamity fund releases that have reached P6 billion must be audited.
Is there a need for a supplemental budget?
Is there a need for a supplemental budget?
Opinion
Written by Liling Magtolis Briones / Boiled Green Bananas
Sunday, 04 October 2009 22:33
No. There is no need for both houses of Congress to pass a supplemental budget.
This is the position of the Alternative Budget Initiative (ABI), led by Social Watch Philippines, which was presented to the appropriations committee of the House of Representatives, led by chairman Junie Cua and cochaired by Edcel Lagman.
Earlier, the same position was presented to the members of the opposition, led by Reps. Ronaldo Zamora, TG Guingona, Darlene Custodio, Erin Tañada and Bayan party-list representatives led by Teddy Casino.
While ABI/Social Watch agreed with the House and the Senate that the Calamity Fund balance of P29 million was itself in a state of calamity, there is no need to pass a supplemental budget.
Other funds can be transferred to the Calamity Fund, as has been done in the past. However, Congress has to be informed and consulted since the Appropriations Act is passed by the legislature.
The 2009 budget is already operational. ABI/Social Watch noted that Congress could advise the Executive to use the remaining balances in the Special Purpose Funds (SPFs), as well as in accumulated savings. The national budget is generally divided into two main classifications: the SPFs and the budgets of departments and agencies.
The SPFs are handled directly by the Office of the President through the Department of Budget and Management (DBM). Usually, the SPFs are not examined in great detail. The budgets of the departments and agencies are subjected to exhaustive and, oftentimes, stressful hearings by both houses of Congress.
In the 2009 budget, SPFs totaled P715.698 billion against P710.304 billion for departments and agencies. Obviously, SPFs are larger than the regular budgets. Unspent balances in the big-ticket items can be utilized to augment the Calamity Fund. Items which can be deferred can be pooled to give priority to urgent needs.
Unprogrammed Fund. The Unprogrammed Fund for 2009 is P75.070 billion. Unspent balances of this account can be utilized for urgent disaster-response operations.
Overall Savings. One of the most important items in the budget is Overall Savings. During the year, the President, through the DBM, transfers budget allocations from budgets or regular departments and agencies to Overall Savings. In turn, these funds are transferred to other units of government. The magnitude of transfers to and from agencies has been unusually large under the present administration.
In 2008, a total of P178 billion was transferred from different agencies to Overall Savings. On the other hand a total of P38 billion was transferred from Overall Savings to different agencies, resulting in a net transfer P140 billion. This is reported as Unreleased Appropriation. Presumably, the balance was carried over to 2009. A mere one-tenth of this amount, or P14 billion, will already cover the P10 billion which Congress wants to raise via a supplemental budget.
Why not a supplemental budget?
Funds are desperately needed to help the country recover from the devastation wreaked by successive calamities. While both houses of Congress mean well when they propose a supplemental budget, the immediate implication is that it will raise the deficit levels. As of end-August, the accumulated deficit is already P210 billion. Already, the Department of Finance has stated it will borrow for the proposed supplemental budget.
How about the 2010 budget?
Both houses of Congress are rushing to conclude the hearings on the 2010 budget. It is to the credit of current appropriations committee chairman Junie Cua and cochairman Edcel Lagman that they gave ABI/Social Watch the opportunity to present an alternative climate-change sensitive budget for education, health, agriculture and the environment.
The hearing took on the atmosphere of a workshop instead of the usual interrogation sessions. Each proposal was carefully considered by the committee. The issues were clear: how to generate funds for disaster recovery and growth without raising the spectre of a fiscal deficit. On the revenue side, ABI/Social Watch proposed a moratorium on the passage of laws which decrease government revenues, as well as deferment of full-year implementation of revenue-eroding laws. It also proposed increased efficiency and vigor in the collection of direct taxes.
On the expenditure side, the appropriations committee and ABI/Social Watch went through the exercise of examining all the items in the SPFs which now total P881.880 billion, or 57 percent of the total budget.
For starters, the Miscellaneous Personnel Benefits Fund is P76.496 billion. It is estimated that about P60 billion will go to the increases for salary standardization. This leaves more than P10 billion which can be realigned.
Good budgeting is not just about knee-jerk borrowing. It is also a careful examination of proposed expenditures and their responsiveness to the current crisis.
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _
Views and Analysis
Calamity fund in a state of calamity
THE BUSINESS OF GOVERNANCE | LEONOR MAGTOLIS BRIONES ABS-CBN Interactive 10/05/2009 12:43 AM
The devastation wreaked by typhoons Ondoy and Pepeng has triggered a frenzied search for funds to finance the necessary rehabilitation of destroyed facilities as well as assistance for typhoon victims. The two houses of Congress were informed by NDCC Chair Gilberto Teodoro that the P2 billion Calamity Fund managed by the Office of the President through the Department of Budget and Management is down to a measly P29 million.
Both the Senate and the House are seriously contemplating the passage of a supplemental budget of P10 billion to augment the depleted fund. The Alternative Budget Initiative, a network of more than 60 civil society organizations convened by Social Watch Philippines has stated that a supplemental budget is not necessary. What is needed is to tap the unspent balances of the Special Purpose Funds and Overall Savings account to augment the Calamity Fund. However, both houses of Congress need to be informed about these transfers since the appropriations act was passed by them.
The calamitous state of the Calamity Fund
Even during the pre-Ondoy and pre-Pepeng periods, the Calamity Fund has a history of being depleted and augmented from various funds. The practice is for the Office of the President to transfer funds from various sources to operating departments purportedly in charge of overseeing disaster relief and rehabilitation.
In 2008 for example, the Department of Budget and Management reported that the new general appropriations stood at P2.152 billion which included P152 million from the previous year’s reenacted budget. This amount was augmented by continuing appropriations for capital outlays and unreleased MOOE, also from the reenacted budget, in the amount of P2.484 billion. Thus, available appropriations in 2008 totaled P4.636 billion.
Furthermore, this amount was augmented by transfers to the Calamity Fund from the Overall Savings account in the amount of P1.856 billion. Theoretically, more than P6 billion was available for the Calamity Fund.
To whom were the funds of the Calamity fund transferred in 2008? Eleven departments received transfers from the Calamity fund. The big ticket items among the recipients include the Department of National Defense at Ph1.469 billion plus P120 million for the Office of the Secretary; Department of Public Works and Highways at P1.773 billion; Department of Agriculture for P836.4 million; Department of Social Welfare and Development, P614.5 million; and “special financial assistance to local government units” for P620.6 million.
Other departments which have received transfers from the Calamity Fund are the Departments of Education , Health, Interior and Local Governments, Labor, Science and Technology, and two state colleges in Leyte.
In addition to the regular departments, the National Housing Authority received P250 million while the Philippine National Railways P375 million. Until I saw this transfer, I was not aware that the PNR was in a state of calamity in 2008!
There are smaller but curious transfers like P120 million for the Philippine Veterans Affairs Office and P1 million for the Military Shrines Service. Were they also victims of calamities?
Now, it is said that the 2009 Calamity Fund is down to P29 million from a starting balance of P2 billion. This starting balance does not include transfers and augmentations which were made during the course of the year.
Accounting for the Calamity Fund
Before dashing off another supplemental budget Congress, with the support of media and civil society, must demand for an accounting of the 2009 Calamity Funds as of end September. How much in new appropriations and continuing appropriations were pooled in the Calamity Fund? How much was transferred to the Calamity Fund?
Equally important, who were the recipients of transfers from the Calamity Fund? Are these agencies directly involved in relief and rehabilitation from calamities?
Financing the Calamity Fund
A supplemental budget, while seemingly heroic on the part of Congress, will only increase the level of the deficit which is already at dangerous levels.
Mention has already been made of existing funds like the SPFs and Overall Savings account.
While Congress is in a hurry to pass the 2010 budget, it must take time to review the status of the 2009 Calamity Fund, as well as the proposed expenditure items in 2010. The latter is proposed to
ensure that duplication, waste and double charging of expenditures will not go unnoticed.
How about the MVUC funds?
Sen. Miriam Defensor Santiago has proposed that the MVUC funds should be tapped. This is the Motor Vehicles Users’ Charge. MVUC funds are not included in the national budget. It is managed by a board headed by the DPWH secretary. Unlike other revenue raising agencies, it does not have to chase its clientele to raise revenue. Every day of the year, MVUC receives income from car registration. Registration for new cars are collected three years in advance.
MVUC income is supposed to fund the maintenance of roads, etc. It would be the understatement of the year to say that all the roads destroyed by calamities need maintenance!
Is a supplemental budget the answer to the state of calamity in the Calamity Fund? Obviously not.
as of 10/05/2009 12:43 AM
Opinion
Written by Liling Magtolis Briones / Boiled Green Bananas
Sunday, 04 October 2009 22:33
No. There is no need for both houses of Congress to pass a supplemental budget.
This is the position of the Alternative Budget Initiative (ABI), led by Social Watch Philippines, which was presented to the appropriations committee of the House of Representatives, led by chairman Junie Cua and cochaired by Edcel Lagman.
Earlier, the same position was presented to the members of the opposition, led by Reps. Ronaldo Zamora, TG Guingona, Darlene Custodio, Erin Tañada and Bayan party-list representatives led by Teddy Casino.
While ABI/Social Watch agreed with the House and the Senate that the Calamity Fund balance of P29 million was itself in a state of calamity, there is no need to pass a supplemental budget.
Other funds can be transferred to the Calamity Fund, as has been done in the past. However, Congress has to be informed and consulted since the Appropriations Act is passed by the legislature.
The 2009 budget is already operational. ABI/Social Watch noted that Congress could advise the Executive to use the remaining balances in the Special Purpose Funds (SPFs), as well as in accumulated savings. The national budget is generally divided into two main classifications: the SPFs and the budgets of departments and agencies.
The SPFs are handled directly by the Office of the President through the Department of Budget and Management (DBM). Usually, the SPFs are not examined in great detail. The budgets of the departments and agencies are subjected to exhaustive and, oftentimes, stressful hearings by both houses of Congress.
In the 2009 budget, SPFs totaled P715.698 billion against P710.304 billion for departments and agencies. Obviously, SPFs are larger than the regular budgets. Unspent balances in the big-ticket items can be utilized to augment the Calamity Fund. Items which can be deferred can be pooled to give priority to urgent needs.
Unprogrammed Fund. The Unprogrammed Fund for 2009 is P75.070 billion. Unspent balances of this account can be utilized for urgent disaster-response operations.
Overall Savings. One of the most important items in the budget is Overall Savings. During the year, the President, through the DBM, transfers budget allocations from budgets or regular departments and agencies to Overall Savings. In turn, these funds are transferred to other units of government. The magnitude of transfers to and from agencies has been unusually large under the present administration.
In 2008, a total of P178 billion was transferred from different agencies to Overall Savings. On the other hand a total of P38 billion was transferred from Overall Savings to different agencies, resulting in a net transfer P140 billion. This is reported as Unreleased Appropriation. Presumably, the balance was carried over to 2009. A mere one-tenth of this amount, or P14 billion, will already cover the P10 billion which Congress wants to raise via a supplemental budget.
Why not a supplemental budget?
Funds are desperately needed to help the country recover from the devastation wreaked by successive calamities. While both houses of Congress mean well when they propose a supplemental budget, the immediate implication is that it will raise the deficit levels. As of end-August, the accumulated deficit is already P210 billion. Already, the Department of Finance has stated it will borrow for the proposed supplemental budget.
How about the 2010 budget?
Both houses of Congress are rushing to conclude the hearings on the 2010 budget. It is to the credit of current appropriations committee chairman Junie Cua and cochairman Edcel Lagman that they gave ABI/Social Watch the opportunity to present an alternative climate-change sensitive budget for education, health, agriculture and the environment.
The hearing took on the atmosphere of a workshop instead of the usual interrogation sessions. Each proposal was carefully considered by the committee. The issues were clear: how to generate funds for disaster recovery and growth without raising the spectre of a fiscal deficit. On the revenue side, ABI/Social Watch proposed a moratorium on the passage of laws which decrease government revenues, as well as deferment of full-year implementation of revenue-eroding laws. It also proposed increased efficiency and vigor in the collection of direct taxes.
On the expenditure side, the appropriations committee and ABI/Social Watch went through the exercise of examining all the items in the SPFs which now total P881.880 billion, or 57 percent of the total budget.
For starters, the Miscellaneous Personnel Benefits Fund is P76.496 billion. It is estimated that about P60 billion will go to the increases for salary standardization. This leaves more than P10 billion which can be realigned.
Good budgeting is not just about knee-jerk borrowing. It is also a careful examination of proposed expenditures and their responsiveness to the current crisis.
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _
Views and Analysis
Calamity fund in a state of calamity
THE BUSINESS OF GOVERNANCE | LEONOR MAGTOLIS BRIONES ABS-CBN Interactive 10/05/2009 12:43 AM
The devastation wreaked by typhoons Ondoy and Pepeng has triggered a frenzied search for funds to finance the necessary rehabilitation of destroyed facilities as well as assistance for typhoon victims. The two houses of Congress were informed by NDCC Chair Gilberto Teodoro that the P2 billion Calamity Fund managed by the Office of the President through the Department of Budget and Management is down to a measly P29 million.
Both the Senate and the House are seriously contemplating the passage of a supplemental budget of P10 billion to augment the depleted fund. The Alternative Budget Initiative, a network of more than 60 civil society organizations convened by Social Watch Philippines has stated that a supplemental budget is not necessary. What is needed is to tap the unspent balances of the Special Purpose Funds and Overall Savings account to augment the Calamity Fund. However, both houses of Congress need to be informed about these transfers since the appropriations act was passed by them.
The calamitous state of the Calamity Fund
Even during the pre-Ondoy and pre-Pepeng periods, the Calamity Fund has a history of being depleted and augmented from various funds. The practice is for the Office of the President to transfer funds from various sources to operating departments purportedly in charge of overseeing disaster relief and rehabilitation.
In 2008 for example, the Department of Budget and Management reported that the new general appropriations stood at P2.152 billion which included P152 million from the previous year’s reenacted budget. This amount was augmented by continuing appropriations for capital outlays and unreleased MOOE, also from the reenacted budget, in the amount of P2.484 billion. Thus, available appropriations in 2008 totaled P4.636 billion.
Furthermore, this amount was augmented by transfers to the Calamity Fund from the Overall Savings account in the amount of P1.856 billion. Theoretically, more than P6 billion was available for the Calamity Fund.
To whom were the funds of the Calamity fund transferred in 2008? Eleven departments received transfers from the Calamity fund. The big ticket items among the recipients include the Department of National Defense at Ph1.469 billion plus P120 million for the Office of the Secretary; Department of Public Works and Highways at P1.773 billion; Department of Agriculture for P836.4 million; Department of Social Welfare and Development, P614.5 million; and “special financial assistance to local government units” for P620.6 million.
Other departments which have received transfers from the Calamity Fund are the Departments of Education , Health, Interior and Local Governments, Labor, Science and Technology, and two state colleges in Leyte.
In addition to the regular departments, the National Housing Authority received P250 million while the Philippine National Railways P375 million. Until I saw this transfer, I was not aware that the PNR was in a state of calamity in 2008!
There are smaller but curious transfers like P120 million for the Philippine Veterans Affairs Office and P1 million for the Military Shrines Service. Were they also victims of calamities?
Now, it is said that the 2009 Calamity Fund is down to P29 million from a starting balance of P2 billion. This starting balance does not include transfers and augmentations which were made during the course of the year.
Accounting for the Calamity Fund
Before dashing off another supplemental budget Congress, with the support of media and civil society, must demand for an accounting of the 2009 Calamity Funds as of end September. How much in new appropriations and continuing appropriations were pooled in the Calamity Fund? How much was transferred to the Calamity Fund?
Equally important, who were the recipients of transfers from the Calamity Fund? Are these agencies directly involved in relief and rehabilitation from calamities?
Financing the Calamity Fund
A supplemental budget, while seemingly heroic on the part of Congress, will only increase the level of the deficit which is already at dangerous levels.
Mention has already been made of existing funds like the SPFs and Overall Savings account.
While Congress is in a hurry to pass the 2010 budget, it must take time to review the status of the 2009 Calamity Fund, as well as the proposed expenditure items in 2010. The latter is proposed to
ensure that duplication, waste and double charging of expenditures will not go unnoticed.
How about the MVUC funds?
Sen. Miriam Defensor Santiago has proposed that the MVUC funds should be tapped. This is the Motor Vehicles Users’ Charge. MVUC funds are not included in the national budget. It is managed by a board headed by the DPWH secretary. Unlike other revenue raising agencies, it does not have to chase its clientele to raise revenue. Every day of the year, MVUC receives income from car registration. Registration for new cars are collected three years in advance.
MVUC income is supposed to fund the maintenance of roads, etc. It would be the understatement of the year to say that all the roads destroyed by calamities need maintenance!
Is a supplemental budget the answer to the state of calamity in the Calamity Fund? Obviously not.
as of 10/05/2009 12:43 AM
Use govt savings for disaster relief efforts: group
http://www.abs-cbnnews.com/business/10/05/09/use-govt-savings-disaster-relief-efforts-group
Use govt savings for disaster relief efforts: group
abs-cbnNEWS.com | 10/05/2009 5:02 PM
MANILA - Instead of the proposed P10-billion supplemental budget, the Arroyo government should just use part of its P140-billion "savings" last year for the rescue, relief and rehabilitation efforts in the wake of tropical storm "Ondoy" and typhoon "Pepeng" which battered Luzon over the past 2 weeks, a budget advocacy group said on Monday.
In a statement, La Liga Policy Institute (LLPI), which serves as the secretariat of the Environment Cluster of the Alternative Budget Initiative, said that the quickest way to finance the government's disaster response is not via a supplemental budget but by simply using the savings incurred by the government since 2008.
These savings came from appropriations in the national budget that were impounded and not released by Malacañang, according to the group.
"The government should release [these] funds and re-align them to the calamity fund," said LLPI Managing Director Roland Cabigas.
Cabigas explained that such funds would also be enough to cover the government's disaster preparedness and risk reduction programs in relation to climate change.
However, before releasing the impounded funds, Cabigas said a mechanism for disbursement should be put in place first.
He said local government units (LGUs) should be able to prioritize their expenditures based on their actual needs, and that any release of funds should be audited.
"Greater accountability [of LGUs] will allow for [the funds'] more judicious use. In the past, releases from the calamity fund have been highly discretionary and were not subjected to any auditing. A parallel process that reviews releases from the calamity fund which are estimated to have reached as much as P6 billion for 2009 must be undertaken,” Cabigas said.
Both houses of Congress have proposed a supplemental budget that would help the country recover from the devastation caused by recent calamities.
But some lawmakers expressed concern that this would increase the budget deficit, which is estimated to reach, and even exceed, P250 billion this year.
as of 10/05/2009 5:08 PM
Use govt savings for disaster relief efforts: group
abs-cbnNEWS.com | 10/05/2009 5:02 PM
MANILA - Instead of the proposed P10-billion supplemental budget, the Arroyo government should just use part of its P140-billion "savings" last year for the rescue, relief and rehabilitation efforts in the wake of tropical storm "Ondoy" and typhoon "Pepeng" which battered Luzon over the past 2 weeks, a budget advocacy group said on Monday.
In a statement, La Liga Policy Institute (LLPI), which serves as the secretariat of the Environment Cluster of the Alternative Budget Initiative, said that the quickest way to finance the government's disaster response is not via a supplemental budget but by simply using the savings incurred by the government since 2008.
These savings came from appropriations in the national budget that were impounded and not released by Malacañang, according to the group.
"The government should release [these] funds and re-align them to the calamity fund," said LLPI Managing Director Roland Cabigas.
Cabigas explained that such funds would also be enough to cover the government's disaster preparedness and risk reduction programs in relation to climate change.
However, before releasing the impounded funds, Cabigas said a mechanism for disbursement should be put in place first.
He said local government units (LGUs) should be able to prioritize their expenditures based on their actual needs, and that any release of funds should be audited.
"Greater accountability [of LGUs] will allow for [the funds'] more judicious use. In the past, releases from the calamity fund have been highly discretionary and were not subjected to any auditing. A parallel process that reviews releases from the calamity fund which are estimated to have reached as much as P6 billion for 2009 must be undertaken,” Cabigas said.
Both houses of Congress have proposed a supplemental budget that would help the country recover from the devastation caused by recent calamities.
But some lawmakers expressed concern that this would increase the budget deficit, which is estimated to reach, and even exceed, P250 billion this year.
as of 10/05/2009 5:08 PM
P11-B needed to protect Pinoys from floods, storms
http://www.bloggen.be/philippinenews/archief.php?ID=481956
P11-B needed to protect Pinoys from floods, storms
IN LIGHT of the millions of pesos in damages to infrastructures and agriculture brought about by Typhoon Ondoy, billions of pesos are needed for protection against similar calamities.
In a statement, the Alternative Budget Initiative (ABI) said a total of P11.4 billion additional funding for climate change actions is needed in the 2010 national budget to protect Filipinos from the impact of extreme weather conditions caused by climate change such as the Typhoon Ondoy.
"The Philippines is naturally prone to climate change and the safety of many people can be summarized in three words: ‘Climate Change Financing’," said former national treasurer Leonor Magtolis Briones, lead convenor of Social Watch Philippines (SWP) which organized the ABI.
"The wrath of Ondoy should serve as a wake-up call for government to be climate-change sensitive and to finally adopt the budget for climate change mitigation and adaptation proposed by the ABI’s environment group," she added.
The ABI, a consortium of 60 non government organizations (NGOs) globally acknowledged for initiating legislator-civil society partnerships for more allocation for environment, education, agriculture and health, has been calling for more funding for climate change adaptation and mitigation measures since 2006.
The ABI environment group, led by the La Liga Policy Institute (LLPI) and Philippine Rural Reconstruction Movement (PRRM), proposed that Philippine government should add a total of P11.4 billion in certain items in the 2010 budget in order to become climate change sensitive.
This includes budget for (1) Climate Change Commission for the finalization of the Philippine climate change action framework and plan; and, for piloting of climate change initiatives in the top ten high risk provinces; (2) harmonization of existing programs to a national climate change action framework and plan; (3) climate change actions within the agriculture sector; (4) orientation of DENR programs, operations and activities towards climate change actions.; and (5) pro-active, not just reactive, programs responding to climate related disasters.
"Changing climate may have caused the recent unusual flood in the capital region but government has big responsibility for its devastating impacts on people especially the poor. We are in harm's way already considering our poverty situation, the unmanaged wastes that clog waterways, silted rivers due to severe land degradation of the National Capital Region’s watersheds, pollution of Manila Bay etc. Our vulnerability to extreme weather events like abnormal rains increases with government failure to enforce policies that protect our communities and make them more resilient," said Isagani Serrano, PRRM vice president and SWP convenor.
The ABI's alternative budget proposal for the environment referred to the Philippine Climate and Weather-Related Risk Map of the Manila Observatory and Department of Environment and Natural Resources.
According to the map on provincial-level risks to typhoons, drought caused by El Niño, projected rainfall change and projected temperature increase, the top ten provinces in terms of risk are: Albay, Pampanga, Ifugao, Sorsogon, Biliran, Rizal, Northern Samar, Cavite, Masbate, and Laguna. In general, the regions of Central Luzon and Bicol rank high to very-high on the risk scale.
"Data from the Emergency Events Database (EM-DAT) shows that in the past ten years (1999-2009), a total of 32.6 million Filipinos have already been affected by environment-related disasters with an economic damage cost estimated at P131.2 billion. We urge government to think of sustainability instead of short term gains and consider budget increase for environment as an urgent matter," Serrano said.
The Department of Interior and Local Government (DILG) had also directed all LGUs to create their local task force climate change to help in mitigating the effects of global warming.
P11-B needed to protect Pinoys from floods, storms
IN LIGHT of the millions of pesos in damages to infrastructures and agriculture brought about by Typhoon Ondoy, billions of pesos are needed for protection against similar calamities.
In a statement, the Alternative Budget Initiative (ABI) said a total of P11.4 billion additional funding for climate change actions is needed in the 2010 national budget to protect Filipinos from the impact of extreme weather conditions caused by climate change such as the Typhoon Ondoy.
"The Philippines is naturally prone to climate change and the safety of many people can be summarized in three words: ‘Climate Change Financing’," said former national treasurer Leonor Magtolis Briones, lead convenor of Social Watch Philippines (SWP) which organized the ABI.
"The wrath of Ondoy should serve as a wake-up call for government to be climate-change sensitive and to finally adopt the budget for climate change mitigation and adaptation proposed by the ABI’s environment group," she added.
The ABI, a consortium of 60 non government organizations (NGOs) globally acknowledged for initiating legislator-civil society partnerships for more allocation for environment, education, agriculture and health, has been calling for more funding for climate change adaptation and mitigation measures since 2006.
The ABI environment group, led by the La Liga Policy Institute (LLPI) and Philippine Rural Reconstruction Movement (PRRM), proposed that Philippine government should add a total of P11.4 billion in certain items in the 2010 budget in order to become climate change sensitive.
This includes budget for (1) Climate Change Commission for the finalization of the Philippine climate change action framework and plan; and, for piloting of climate change initiatives in the top ten high risk provinces; (2) harmonization of existing programs to a national climate change action framework and plan; (3) climate change actions within the agriculture sector; (4) orientation of DENR programs, operations and activities towards climate change actions.; and (5) pro-active, not just reactive, programs responding to climate related disasters.
"Changing climate may have caused the recent unusual flood in the capital region but government has big responsibility for its devastating impacts on people especially the poor. We are in harm's way already considering our poverty situation, the unmanaged wastes that clog waterways, silted rivers due to severe land degradation of the National Capital Region’s watersheds, pollution of Manila Bay etc. Our vulnerability to extreme weather events like abnormal rains increases with government failure to enforce policies that protect our communities and make them more resilient," said Isagani Serrano, PRRM vice president and SWP convenor.
The ABI's alternative budget proposal for the environment referred to the Philippine Climate and Weather-Related Risk Map of the Manila Observatory and Department of Environment and Natural Resources.
According to the map on provincial-level risks to typhoons, drought caused by El Niño, projected rainfall change and projected temperature increase, the top ten provinces in terms of risk are: Albay, Pampanga, Ifugao, Sorsogon, Biliran, Rizal, Northern Samar, Cavite, Masbate, and Laguna. In general, the regions of Central Luzon and Bicol rank high to very-high on the risk scale.
"Data from the Emergency Events Database (EM-DAT) shows that in the past ten years (1999-2009), a total of 32.6 million Filipinos have already been affected by environment-related disasters with an economic damage cost estimated at P131.2 billion. We urge government to think of sustainability instead of short term gains and consider budget increase for environment as an urgent matter," Serrano said.
The Department of Interior and Local Government (DILG) had also directed all LGUs to create their local task force climate change to help in mitigating the effects of global warming.
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