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June 20, 2008 Government asked to adhere to GAA provisions on Unprogrammed Fund Former national treasurer Leonor Briones called on the Office of the President and Congress to review the provisions of the General Appropriations Act (GAA) FY 2008 on Unprogrammed Fund to verify the legality of its cash subsidy program. “If you look at the Special Provisions on Unprogrammed Fund of the GAA, item 5 is very specific that savings generated in excess of Twenty Five Billion Nine Hundred Four Million Pesos (P25,904,000,000.00) from interest on foreign loans shall be used to fund priority requirements of the health and education sector. It does not include a P500 subsidy for Meralco users,” Briones said. Based on the Special Provisions on Support to Priority Social Programs, the priority programs are the Department of Education’s school health and nutrition program, alternative learning program and additional operational requirements of the National Book Development Board; and the Department of Health’s programs on family health including family planning, deworming for children and additional operating requirements for Tropical Medicine. Briones, who is the lead convenor of Social Watch Philippines which pioneered civil society engagement in the national budget process, also called on the Executive and Legislative Branch of Government to look into the Special Provisions on Use of Income (8) and Use of Excess Income (item 9). “The special provisions on Unprogrammed Funds are also very specific that there has to be a showing that there is excess income. How can they prove at this point in time that there is no shortfall in income? There could be an excess in Value Added Tax collection but there could be shortfalls in other sources of revenue,” Briones said. “Moreover, this would require that they pass a special budget for the new appropriations pursuant to Section 35, Chapter 5, Book 6 of Executive Order No. 292,” she added. She also reminded Government that the GAA does not allow the payments for Personal Services. “They would have to employ personnel to manage the cash transfers and pay overtime since this is an additional activity. Yet, the GAA on Unprogrammed Funds for Support to Infrastructure Projects and Social Programs does not provide for payment for personnel,” the former national treasurer said. She reiterated the call by Social Watch Philippines that, as proven after long years of providing cash transfers in Latin American countries, improving the economy, providing social services and creating job opportunities are the real solutions. Cash transfers only helped in attaining political objectives; but it was never proven that it can help solve the problem of poverty. #
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