Villar optimistic on budget passage this July

Sen. Manuel Villar Jr. has expressed optimism that the 2006 national budget will be passed when Congress resumes session in July.

"We are not closing our doors on reopening bicameral discussions on the budget, although the differences between the two conferring parties seem to be irreconcilable," he said.

"Both sides did their best to hammer out a compromise and talk to hardliners to reach an agreement. There are still windows of opportunities to continue doing so."

Villar, Senate committee on finance chairman, said that continuing the bicameral conference discussions during the congressional break is possible as long as both parties would agree to it.

The bicameral conference failed to come up with an agreement on the conflicting versions of the proposed P1.053 trillion budget before Congress adjourned sine die.

A total of P64 billion was cut by the Senate from the proposed budget, while the House of Representative demanded the restoration of all cuts.

The hard-line stance taken by the two chambers resulted in an impasse during the second meeting of the bicameral conference committee.

Senate Minority Leader Aquilino Pimentel Jr. has also called for the continuation of discussions between the two houses to pave the way for passage of the budget in July or August.

Pimentel said a reenacted budget is unacceptable to the opposition because without a new budget, no new projects could be implemented.

The huge revenues generated with the passage of the revised expanded value-added tax law could not be utilized under a reenacted budget, he added.

Villar said a possible remedy, "if worse comes to worst," is to create a supplemental budget.

"We are exploring the possibility of creating a supplemental budget," he said.

"Our committee is reviewing the budget to identify departments or agencies that would be adversely hit with a reenacted budget such as PhilHealth and additional classrooms. We don’t want the people to suffer unnecessarily."

"For six months now, the country is already running on a reenacted budget. While I have always been vocal about my aversion to a reenacted budget, it has some good points as well. With a reenacted budget, we would have a very small deficit, which would result in lower borrowing. Of course, a new budget is still the best option." — Marvin Sy