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October 13, 2009

Budget advocates support initiative of Congress to raise funds for calamities

The Alternative Budget Initiative (ABI), a consortium of 60 nongovernment organizations globally acknowledged for initiating legislature-civil society partnership on the budget, supported the House of Representatives’ joint resolution authorizing the use of unprogrammed funds for the proposed P12 billion calamity fund. The group also called on Congress to tap the balances of the 2009 budget and other non-budgetary sources to finance the calamity fund.

“The ABI and Social Watch Philippines will support any initiative of the legislature to identify additional sources of funds for disasters without having to resort to a supplemental budget and increasing the deficit” said former national treasurer Leonor Magtolis Briones, lead convenor of Social Watch Philippines (SWP) which organized the ABI.

“The proposal to access P12 billion from unprogrammed funds in the 2009 budget means there is no need for a supplemental budget. This will not increase the deficit because it is already in the 2009 budget. However, the Lower House has to consider the special provisions in the use of unprogrammed funds in the 2009 budget,” Briones added.

The ABI and SWP have been consistently calling for the realignment of unprogrammed funds to allocation for services to the most vulnerable sectors. “These are lump-sumps in nature, highly discretionary, have no clear mechanisms for accountability and have vague or redundant purpose,” Briones explained. “The President has been utilizing unprogrammed funds for various purposes in the past,” she added.

House Committee on Appropriations Chair Junie Cua said the P12-billion in Joint Resolution No. 48 was approved as calamity fund instead of a supplemental budget because the National Treasury said it did not have funds for a supplemental budget. Cua also said that there was no sure source yet for the proposed fund.

“If funds are not sufficient, the other Special Purpose Funds (SPF) can be opened to public scrutiny and accountability. Unspent balances in the SPF can be utilized as well. This is exemplified by the Overall Savings,” Briones said.

She explained that 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.

Briones also said that non-budgetary sources can be tapped to finance the calamity fund. This includes the Motor Vehicles Users’ Charge ( MVUC ) and funds from revenue earning corporations such as the Philippine Gaming Corporation (Pagcor) .

“The MVUC receives income from car registration three years in advance, while part of Pagcor’s income goes directly to the Presidential Social Fund. The law requires that half of the net income of Pagcor should be submitted to the national government. These are not included in the national budget and should be reviewed by Congress,” Briones said.

“ABI and SWP agree with Congress that there is no need for a supplemental budget. We can simply tap balances of the 2009 budget as well as non-budgetary sources to save millions of people from calamities,” Briones stressed.

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