Noy to SC: Return unused funds to treasury

MANILA, Philippines - President Aquino has reminded the Supreme Court (SC) that unused public funds, including those appropriated for the judiciary, must revert to the national treasury.

The reminder is contained in Aquino’s veto message on certain portions of the 2016 national budget, which he signed last Dec. 22. The message is posted on the website of the Department of Budget and Management (DBM).

The President placed under “conditional implementation” 10 special provisions in the Congress-approved budget allowing the judiciary, Senate, House of Representatives, Civil Service Commission, Commission on Audit, Commission on Elections and Office of the Ombudsman to retain unexpended balances of appropriations and to continue using them.

Special Provision No. 10 under the Supreme Court and lower courts read: “Unexpended quarterly and year-end balances of approved appropriations and cash allocations for the Supreme Court shall remain valid appropriations and shall continue to be available for expenditure until fully spent and shall remain under their control and accountability, subject to accounting and auditing rules and regulations.”

There are similar provisions in the budgets of the Sandiganbayan, Court of Appeals, Court of Tax Appeals, Congress, Ombudsman and constitutional commissions.

In his veto message, Aquino said public funds “are meant to be disbursed for their purposes as authorized in the annual budget law and during the validity of such appropriations.”

“Unexpended balances of appropriations must revert back to the treasury in order that they may be authorized anew by a subsequent appropriations law. The reversion of funds likewise complements our drive for an open and transparent government: one which allows greater public scrutiny of government transactions, especially in the use of public funds,” he said.

“This policy of fund reversion is not only based upon sound, prudent and transparent fiscal management, but also rooted in the constitutional provision that ‘no money shall be paid out of the treasury except in pursuance of an appropriation made by law,’” he said.

He stressed that allowing agencies to retain public funds for future use “not only distorts the equal application of public accountability standards but also runs counter to the legal mandate to revert all unexpended balances of appropriations to the treasury.”

During congressional hearings, budget officials often complain of the judiciary’s practice of not using funds intended for the hiring of personnel to fill vacancies, and diverting the money to other uses, such as the grant of additional allowances, incentives and benefits.

The judiciary has billions in such funds, since it has almost 10,000 vacancies, including positions for judges.

Another budget provision under the Supreme Court Aquino placed on conditional implementation would have authorized the tribunal to allocate funds for maintenance and operating expenses (MOOE) to lower courts “based on standards” the High Court is mandated to prescribe.

Aquino said he has proposed in the budget he submitted to Congress in July a P2.4-billion appropriation “exclusively for the MOOE of, and to be directly released to, all lower courts in the country.”

“No less than the chief magistrate has advanced the need to fortify judicial independence by allocating sufficient amounts for the operating requirements of all lower courts, thereby discounting the need for any kind of assistance from local government units,” he said.