ALTERNATIVE BUDGET INITIATIVE NEWSLETTER

Vol. 2. No. 3  l  January-March 2011


 

The ALTERNATIVE BUDGET INITIATIVE Newsletter is published by SOCIAL WATCH PHILIPPINES through the support of the UNITED NATIONS MILLENNIUM CAMPAIGN (UNMC) and CHRISTIAN AID to keep stakeholders posted on issues on peoples' participation, transparency and accountability in the national budget process

For more information on the Alternative Budget Initiative, log on to www.socialwatchphilippines.org

Reclaim the People's Purse l Contact Us


THE QUEST FOR GENUINE DEMOCRACY IN BUDGETING


Reclaim the People's Purse (Foreword by Senator Teofisto Guingona III)

Study reveals scant Filipino people power over public funds

Senator TG puts forward bill on people's participation in budget deliberations

Special Report: Social Watch Asia conducts capacity-building workshop in Manila

Reclaiming the People's Purse

Foreword by Senator Teofisto Guingona III

 

Trillions of pesos in government coffers used to maintain the administration and to finance development come from the citizens. It is therefore but right for the people to have the biggest say in decisions on national priorities that must be addressed by government. These national priorities are best reflected in the General Appropriations Act, the document that guides the allocation of the national budget.
 

In a democracy, the legislature is the elected representative of the people, entrusted to wield the power of the purse. Sadly, being people’s representatives cannot be said of many Senators and Congressmen, who became so, not with the will to safeguard people’s interest, but that of their own or that of their political benefactors. Add to this the equally sad fact that the law in our country allows one person, the single handed power to formulate, approve or disapprove, and release the budget.


Even legislators oftentimes sigh and lose hope. Where is the legislature’s so called “Power of the Purse” when the Executive can veto the National Expenditure Program that Congress has approved? Where is the “Power of the Purse” when Congressional initiatives on the General Appropriations Act are being impounded as forced savings and can be used by the executive for whatever purpose it may deem necessary?
 

But amidst the darkness, the Alternative Budget Initiative (ABI) and Social Watch Philippines provides faith and hope. With the guidance of SWP lead convenor and former national treasurer Leonor Magtolis Briones, civil society has now begun to actively and directly engage in the national budget process through alternative budget proposals.
 

ABI’s budget proposals are results of hard work indeed. They are studied and formulated by the sectoral leaders and citizens groups who painstakingly generate data from the grassroots by working with and consulting the communities. Further, ABI studies the budget of the implementing agencies, consults the government personnel and thereafter, lobbies Congress for increases in the budget of pro-poor programs of the Departments of Health, Education, Agriculture, Environment and Natural Resources, and other government agencies.
 

In addition, ABI was instrumental in alerting Congressmen and Senators about the fact that they are reviewing less than half of the national budget; that there are invisible budgets or sources of public funds that are not within their reach; and that billions of pesos worth of funds which were allocated through Congressional initiatives were not released or were impounded for so many years.
 

By supporting civil society’s alternative budget proposals on critical socioeconomic programs, and by working in partnership with ABI/SWP, Congressmen and Senators can hope to be true to the claim of being genuine representatives of the people. Hopefully, the deterioration of Philippine democracy can be reversed.
With ABI and SWP, both Houses of Congress are now clamouring that the Legislature’s Power of the Purse be restored through bills on budget reforms and people’s participation in the national and local budget processes.
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Study reveals scant Filipino power over public funds

 

Real people power over public funds in the Philippines is still very limited. This was the main message of Prof. Leonor Magtolis Briones during her last official lecture as professor of the UP National College of Public Administration and Governance.

“The new administration still needs to prove that it is a democratic government by institutionalizing citizens’ participation in all phases of the public finance cycle,” said Briones during her public lecture titled “Pera ng Taumbayan, Para Sa Taumbayan”. .

“People should be directly involved in the determining fiscal policy, revenue, expenditures, borrowings and accountability; and not simply play the role of providing information to the public,” explained Briones who has been nominated by her College for the title of Professor Emeritus.

Briones’ stated that citizens’ participation is least palpable and least visible in the formulation of fiscal policy. “The Medium Term Development Plan (MTPDP) which is the basis for fiscal policy, mandates citizens’ participation largely in social development and not necessarily in public finance,” Briones said.

Briones’ lecture is based on a study grant from the United Nations Development Program on “Enhancing Citizens’ Participation in Public Finance”.

Meanwhile, the study showed the people’s groups’ are not really able to participate in crafting policies on revenue; but are actually just informing the public on issues such as sin taxes. The situation is the same in the accountability stage of public finance, where people’s engagement is not sustained as it depends on the issue and not on systemic government reforms.

On the other hand, the study revealed that there is sustained people’s participation in determining policies on borrowings, but the impact is limited. “It seems that civil society positions on debt are being ignored by the government because the policy on borrowings has not changed much even after many years of sustained campaigns by nongovernment organizations,” said Briones, who has been teaching public finance for already 50 years and has served as the Secretary to the Commission on Audit and Treasurer of the Philippines.

Briones said that the stage of public finance where Filipinos has shown great influence is on determining expenditures. “Social Watch Philippines led sustained people’s engagement in the entire budget cycle through the Alternative Budget Initiative (ABI). The impact on policies on expenditures is clearly seen in the increased budget for social development that SWP/API has been able to push for in the General Appropriations Act of the last four years,” Briones said.

The study showed that since 2006, civil society groups have been participating in determining expenditures through reforms in the legislature. It is only in the budget for 2012 that civil society groups will be able to actually participate in the preparation of the budget by the executive branch.

“It is a long way to go. There is very limited peoples’ power on Philippine public finance,” Briones said. “It is important to know if the government really listens to the people. The challenge is for the new administration to finally institutionalize people’s participation in all phases of public finance, not just in terms of providing information to the public, but in terms of actual participation in determining the policies,” she said.
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Senator TG puts forward Senate Bill on People's Participation in Budget Deliberations

 

Senator Teofisto Guingona III has sponsored a bill, known as "The People's Participation in Budget Deliberations Act". Guingona said that the bill will aid in achieving genuine democracy by enshrining the right of the people to direct participation in the budget process, thereby preserving people's power in influencing priorities underlying the budget for social development.

He added that sustainable and equitable development will be possible only if there is recognition of citizens' involvement in the budget process as an indispensable strategy towards improving delivery of social services and increasing investment for the most vulnerable sectors.

“It is high time the Philippine Congress recognize the importance of citizens groups' direct engagement in the budget process. We should now institutionalize the practice of legislature-civil society collaboration for a people-oriented budget and more participation, transparency and accountability in the budget process so that Congress may fully exercise its power of the purse for the people,” Guingona said.

The bill provides for certain privileges for non-governmental and people’s organizations that are accredited by the Senate, House of Representatives or Local Legislative Body to participate in budget deliberations.

This includes the privilege to (a) Participate thru its duly authorized representatives in any regular and consultative public meetings, hearings, conferences, dialogues, debates or deliberations sponsored by both Houses of Congress including District and other local body in relation to the government's annual budget; (b) Submit an alternative or proposed budget or position paper with regard to the sector or organization it represents; (c) access copies of the bills or budget proposals filed in both Houses and local government concerned; and (d) Present written proposals on projects and activities of the government entities which budget is under deliberations; and (e) access data coming from both Houses and concerned LGU.

A similar bill was already filed in the House of Representatives by the Committee on People’s Participation led by Congressmen Benjamin Asilo and Lorenzo Tanada III.

Social Watch Philippines and the Alternative Budget Initiative consortium has actively participated and provided inputs in drafting the bills on people’s participation in the budget process in both Houses.
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 SPECIAL REPORT: Social Watch Asia conducts capacity-building workshop in Manila

Fifty-eight social development activists and development workers attended the Social Watch Pan-Asia Capacity Building Workshop last November 25-27, 2010 in Manila, Philippines. Present were Social Watch networks and coalitions from Afghanistan, Azerbaijan, Bangladesh, Cambodia, China, India, Indonesia, Malaysia, Mongolia, Nepal, Pakistan and the Philippines.
 

Prof. Leonor Briones, Social Watch Philippines lead convenor, said that there is a need to establish alternative pathways for development in the Asian region where there are many leaders who talk about development and the MDGs.
 

“Social Watch coalitions and networks in Asia should exchange views to effectively engage their respective governments,” Briones said. “It is not enough to criticize ongoing state-led government programs; Social Watch coalitions must also present alternatives,” she added.
 

Roberto Bissio, chair of Social Watch International, said that though many international summits and UN conferences have passed, and commitments made, many peoples and countries are still fighting poverty, experiencing underdevelopment and environmental degradation.
 

“As recession is hitting the major economies in the North/First World, funding for Third World/South countries is diminishing. This affects the goal of reducing poverty of the “bottom billion” or the poorest of the world’s poor, not only in Asia but also in Africa and Latin America,” he said.
 

Social Watch member-countries must strengthen its partners at the local levels, as they are the ones directly engaged in development work. Another task of Social Watch is to make governments accountable to their mandate of delivering effective and efficient services to the poor and marginalized,” said Bissio.  Back to top

 



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Website: www.socialwatchphilippines.org

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