Press Release
May 25, 2009

To review government services condition towards human development
ANGARA CALLS FOR THE ASSESSMENT OF GOCC BUDGETS

Recognizing the tight association of human development to government institutions' outputs, Sen. Edgardo J. Angara cites the urgent and necessary assessment and scrutiny of the budgets of government-owned and controlled corporations (GOCCs) in his reaction to the recently held 2008/2009 Philippine Human Development Report.

The Human Development Network informed that "budget rules, civil service rules and internal culture - were as important as the size of funds and tenure of political leadership" which are crucial factors in human development outcomes. Furthermore, the report stressed that progress capabilities is conditional to the amount and quality of both public and private services provided for the population.

"The national interest calls for the institutionalization of budgetary innovations. It is a declared policy of the State that the budgets of all components of the government shall be reflective of national objectives, strategies and plans. It must likewise be supportive of and consistent with the socio-economic development plans of the country", Angara said who chairs the Senate Committee on Finance.

He also stressed, "Taking to mind the volume and capacity of public resources and activities undertaken by government corporations, it is urgent, nay imperative, that a formal mechanism be institutionalized in the review and analysis of the budgets of these GOCCs to ensure that the same are consistent with the national development plan and also to assure transparency in the operations of said corporations."

In terms of public finance, the Philippine Human Development Report raised the ability or inability of the government to deliver appropriate and much-sought services to the people, especially quality education services. Moreover, judicial and/or quasi-judicial bodies were questioned as to how well is the implementation of public accountability because of the observation of failure in performing its duties.

Through SB 875, which Angara recently filed, the senator seeks to amend the Budget Reform Decree of 1977, Section 13 of Presidential Decree No. 1177 in order to include the proposed corporate operating budgets of government in the submission of the annual budget to the Congress.

Furthermore, "SB 875 will require these GOCCs to submit to Congress separate and yearly financial performance reports vis-à-vis their approved budgets as well as status reports on obligations they have entered into which are backed by government guarantees", Angara furthered.

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