No more pork: Noy signs 2015 budget

MANILA, Philippines - A 2015 budget program bereft of pork barrel but containing a new definition of savings was signed into law yesterday by President Aquino.

In his speech, Aquino said his signing of the 2015 budget at the Rizal Hall of Malacañang was historic because it was the fifth time that the budget was passed on time and not reenacted.

He said the new budget program carries specific allocations to forestall corruption and other irregularities.

The President said the administration has kept its promise to remove the pork barrel allocation or Priority Development Assistance Fund (PDAF) from the budget, citing its being a magnet for corruption.

He said nothing about the Disbursement Acceleration Program (DAP), earlier struck down as unconstitutional by the Supreme Court along with PDAF.

The President said the budget is truly responsive to the people’s needs, noting that 1,590 cities and municipalities are now part of the Bottom-Up Budgeting (BUB) program.

Under the scheme, communities themselves determine the initiatives and programs needing funds.

“The money allocated for the Bottom-up Budgeting program: P20.9 billion,” Aquino said.

He also said that under the approved budget program, performance of agencies and departments would be easily tracked and monitored and concerned officials held accountable.

Aquino thanked Congress for the prompt passage of the 2015 budget program.

The President said he was also grateful for public support for his straight path advocacy and promised to make corrupt officials pay.

Budget Secretary Florencio Abad said that in restoring BUB, they intend to enable local government units to propose their own programs and projects.

“And hopefully the next administrations can continue with the program. At the end of the day, there are two objectives: One is empowerment with respect to the communities that the program seeks to serve. But the other objective is meaningful devolution,” he said.

“I think it’s a good exercise in developing the capacities of local government units in project development, design and implementation.

“And it’s a good way for us also to induce the LGUs to develop public finance management capability as a condition among other good governance conditions,” he added.

Abad said LGUs were expected to eventually become familiar with the system.

“Some of the items in the BUB program had to be lumped while we are waiting for some LGUs to submit their listings. But now that’s a whole complete listing that’s available for the public to see. In fact, there’s a website where you can see all the projects listed under BUB for 2015,” Abad said.

Explicit definition

On the definition of savings, Abad said the change really was to make it more explicit – “the instances where you generate savings.”

“For example… if the bid price is lower than approved budget for contract, that’s made very explicit,” Abad said.

He explained there would be a distinction between savings generated by force majeure or when a typhoon strikes and by one arising from a case filed but not settled.

“Then that’s really beyond the control of agency, in which case the savings as a result is allowed. But if the savings is generated because of the fault of agency – for example they did not finish completing the engineering design of an infrastructure project because of their own shortcoming, then Congress said we can’t allow that to be declared savings,” Abad said.

“The examples are more explicit in the GAA, in the special and general provisions of the GAA,” Abad said. GAA stands for General Appropriations Act.

He said declaration of major savings is also allowed for some cases. “For example, the inability to fill new items or fill up unfilled items. The day after that, you can’t fill them. That particular day is already savings,” he said.

“For example, today you have 20,000 items for teachers and they are supposed to start today. But you actually weren’t able to hire them the day after today. Then the salaries today would be savings,” Abad said.

DAP became controversial because of its definition of savings. DAP, as implemented by Aquino and Abad, allowed cross-border transfer of funds as well as the use of savings ahead of the end of a specific fiscal year.

The budget chief said there were ample safeguards in the GAA to prevent agencies from abusing the use of savings.

Abad also said the approved budget shows the Aquino administration’s priorities, which include improving the mass transport system in Metro Manila for P10.6 billion.

“We are at the doorstep of the administration’s penultimate year, and the GAA duly reflects President Aquino’s development priorities for 2015,” he said.

The budget chief described the GAA – 15 percent higher than in 2014 – as the government’s “spending program for rapid, long-term and inclusive development.”

Abad said the budget program “strengthens fiscal, development and governance reforms already instituted by the Aquino administration, besides supporting the country’s unique requirements for post-disaster rehabilitation and climate change.

“Economic services are still a major driver in the President’s inclusive growth campaign, as the administration devotes about four percent of the total budget to strategic infrastructure programs,” he said.

He cited the P185.8 billion for the development of national roads and bridges, as well as P10.6 billion for improving Metro Manila’s light railway system.

Social services enhanced

He stressed that social services are amply supported under the national budget, with major social welfare protection and development programs getting sizable allocations for next year.

The administration’s flagship anti-poverty program, the Pantawid Pamilyang Pilipino Program (4Ps), corners P62.3 billion of next year’s national budget. The program targets 4.3 million families in need.

Other major allocations include P53.9 billion for Basic Education Facilities, involving construction of 31,728 classrooms and repair of 9,500 classrooms, and the development of 13,586 water and sanitation facilities, and procurement of 1.3 million seats.

PhilHealth premium subsidies also got P37.1 billion of the total budget to benefit 15.4 million poor and near-poor families, while P11 billion will be directed to socialized housing for “in-need families,” particularly those living in danger zones or high-risk areas.

At the same time, P89.1 billion will go to agricultural production projects under the Department of Agriculture and its attached agencies and various government-owned or controlled corporations.

Various programs and projects for climate change adaptation and mitigation also have sizable allocations, as they are part of the administration’s development strategy, according to budget chief.

He said P14 billion has been set aside as Calamity Fund – now known as the National Disaster Risk Reduction and Management Fund – while another P6.7 billion has been appropriated as Quick Response Funds.