Recto questions ‘over-appropriations, underspending’ in budget

MANILA, Philippines -  Senate President Pro Tempore Ralph Recto yesterday warned of the “disturbing trend of over-appropriations and underspending” in the national budget.

He noted the national budget for 2018 jumped to P3.767 trillion, or more than P700 billion over its 2016 level of P3.002 trillion as he expressed doubts if agencies have the capacity “to spend their allocations, which essentially are taxes collected from the people.” 

“Can the agencies spend the money in full, for the right things and on time?” Recto asked economic managers in their maiden Senate appearance to pitch the 2018 spending program.

He cited the budget for “Personal Services,” of which P746 billion was spent in 2016 out of a budget of P794 billion, “or an underspending or over-appropriation of P48 billion.” 

Personal Services (PS) is the official budget-speak for payroll and other compensation expenditures for employees and pensioners. 

Recto said the same is true in the case of Maintenance and Other Operating Expenses (MOOE), whose disbursements reached P1.011 trillion out of the P1.127 trillion provided for in the 2016 budget, “or a slippage of P116 billion.”

The MOOE covers non-salary operating expenses like utilities, supplies, rent and grants. 

“Even in public debt, you have over-requested. The previous administration has asked P392 billion to service this but only P304 billion was used,” he said. 

But the worst manifestation of underspending is in Capital Outlays, largely infrastructure, he said.  

In 2016, the executive asked for P1.175 trillion, but managed to obligate P823 billion, or a shortfall of P352 billion, he said.

All in all, unreleased appropriations reached P63.43 billion in 2016, on top of the unobligated allotments of P544.53 billion. 

“The utilization rate is low,” Recto said. “We betray the people when we are slow, or if we fail, in returning the taxes they have paid, through the national budget.”

He added that the results “penalize the people who have the right to expect the things promised in the budget.”