‘Economy to suffer from reenacted budget’

MANILA, Philippines — Malacañang expressed hope yesterday that Congress would make good on its promise to pass the 2019 national budget, saying failure to do so due to alleged pork barrel insertions of lawmakers would be disastrous to the economy.

“They’ve already decided not to have a reenacted budget because they said they will pass it,” presidential spokesman Salvador Panelo said, apparently referring to the commitment made by some members of the bicameral conference committee on the General Appropriations Bill.

Congress came close to a deadlock on Wednesday after Senate President Vicente Sotto III suggested pulling out the chamber’s version of the measure due to repeated allegations of “pork” insertions.

Sotto said he would just let the government operate on a reenacted budget, which it has been doing since the start of the year after Congress failed to pass the executive department’s proposed P3.757-trillion national budget for 2019.?“This (lack of a new budget) would translate to lost opportunities for higher growth as our economic managers are estimating a loss of 1 to 2.3 percentage points in the full-year gross domestic product in the event that the 2019 budget will not be passed,” Panelo said.

Panelo said the government’s Build, Build, Build program would be most affected by the lack of a new budget, along with ordinary Filipinos who may not be able to find employment because of delays in the completion of infrastructure projects which are in various stages of implementation.

“Programs of various departments this year intended for poverty reduction, health promotion and peace and security advancement, to mention a few, would be inevitably affected as well,” the spokesman added.

Panelo stressed the “honorable” members of Congress know the dire consequences of a reenacted budget.

“And we are appreciative of the statement made by some members of the bicameral committee that it will endeavor to pass the General Appropriations Bill next week,” Panelo said. 

Congress is set to adjourn on Feb. 9 for the midterm elections. The campaign period is set to begin on Feb. 12.

“The executive branch has already done its part in the budgeting process, we eagerly await Congress to complete the process, so are the Filipino people,” Panelo said.

 Exempt infrastructure projects

As this developed, Sen. Ralph Recto expressed support for Budget Secretary Benjamin Diokno’s proposal to exempt infrastructure projects from the election period ban on certain activities.

With the delay in the enactment of 2019 national budget, Recto said the exemption provision is needed for the government to catch up with the timetable of its Build, Build, Build program.

“Most infrastructure projects are already behind schedule. And instead of alleviating the delay, we aggravate it by suspending work simply on account that it is the season for candidates to shake hands and kiss babies,” Recto said.

Recto said the Senate version of this year’s budget contains the general provision that infrastructure projects funded under the measure shall be exempt from the prohibitions against release, disbursement or expenditure of public funds and against construction of public works and delivery of materials for public works.

“How can a beneficial enterprise that is the construction of schools and hospitals be placed in the same category as the carrying of firearms and other prohibited activities?” he asked.

Recto pointed out that both people and progress lose if the building of facilities that they need will stop during the campaign period, more so if the latter coincides with summer – which is the best time, weather-wise, for construction.

“We should take advantage of this so-called good weather window before the typhoon season kicks in,” Recto said.

“That this forced work interruption happens every 36 months speaks of how elections delay the delivery of vital projects. We should be working on projects round the clock. But we stop the clock during the elections,” he added.

At present, Recto said election laws allow work on projects to continue provided these commenced before the start of the campaign period and no funds are disbursed while the ban is in effect.

He added that 45 days before the election, the delivery of materials for public works is prohibited, except on exempted projects like those built with foreign assistance.

“The effect is that it is almost impossible to roll out projects one and a half months before the elections. And even when projects qualify for the exemption, government employees would rather err on the side of caution, fearful of being hauled to court, which is a possibility in a highly charged political atmosphere,” he said. – With Christina Mendez, Cecille Suerte Felipe