Press Release
November 24, 2014

MIRIAM HITS "MINEFIELDS" IN SAVINGS, PORK BARREL

Sen. Miriam Defensor Santiago said that the 2015 budget suffers from two "dangerous minefields": the redefinition of "savings;" and the retention of pork barrel funds.

Santiago delivered a privilege speech on Monday urging a return to the old definition of savings; and a provision under Section 91 of the general provisions to compel the DBM to submit a compliance with reportorial requirements on lump sums.

Santiago also urged that the P2.69 B for the socio-economic component of the Bangsamoro normalization process should be placed under Unprogrammed Appropriations because Congress has not yet passed the Bangsamoro Basic Law.

Santiago quoted the Constitution, Article 6, Section 25 para. (5) which states: "No law shall be passed authorizing any transfer of appropriations; however, (certain government officials) may, by law, be authorized to augment any item in the general appropriations law for their respective offices from savings in other items of their respective appropriations."

"The old definition of savings was better. It allowed savings only after final discontinuance or abandonment of the work, activity, or purpose. The new broader definition allows savings during discontinuance or abandonment at any time," the senator said.

Santiago said that under the 2015 budget, an agency that fails to obligate any allotment loses it.

"What happens to the commitment to Congress of the agency head that the agency will deliver a specified level of outputs, such as number of school buildings, completion date, kilometers of roads, linear meters of bridges, and so on? What if certain projects that were funded out of 'savings' were later submitted for Congress-authorized but DBM-discontinued projects? These are scenarios for corruption," the senator said.

Santiago went on to attack lump sums worth P37.3 B appropriated for five government agencies: Department of Health, Department of Social Welfare and Development, Department of Labor and Employment, Department of Public Works and Highways, and the Commission on Higher Education. The senator said that while legislative lump sum are huge, the presidential lump sum is even bigger, amounting to over P500 B for 2015 alone.

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