Press Release
December 17, 2014

SENATE APPROVES 2014 SUPPLEMENTAL BUDGET

The supplemental appropriations for fiscal year 2014 amounting to P22, 467,608 billion have been approved on 3rd reading by the Senate body today.

Sen. Chiz Escudero, chairman of the senate finance committee, said "under the measure, three classifications of projects were identified, we adopted the same version of the House in as far as project identification is concerned," the senator said.

He however said they added a new provision on the use and release of funds. "Under Section 3 of the measure, we stipulated that a uniform formula or parameter be developed for the fair and equitable distribution of Emergency Shelter Assistance funds across typhoon-affected barangays, municipalities or provinces nationwide."

First among the identified projects are those that have remained unpaid and outstanding after being declared unconstitutional in the Supreme Court ruling on the Priority Development Assistance Fund (PDAF). These projects amounted to P1, 902,744,124 billion and were completed prior to the SC's ruling on PDAF. Such obligations are valid as incurred by the government, Escudero said.

Second are projects partially-implemented or unimplemented that were declared unconstitutional by the SC in its Disbursement Acceleration Program (DAP). Listed under these projects are the Coconut Scale Insect Emergency Action Plan for the coconut farmers amounting to P340,345,000 million, the rehabilitation of LRT Lines 1 and 2 with a total amount of P727,690,000 million and the construction of fish ports, lighthouses and seawalls with a total appropriation of P196,385,000 million.

Third identified projects are urgent infrastructure, socio-economic, rehabilitation and reconstruction projects which are not funded in any existing appropriations law. Among such projects are the MRT 3 Rehabilitation and Capacity Extension amounting to P1,207,163,000.00 billion, the updating of DSWD's National Household Targeting System for Poverty Reduction (NHTS-PR) amounting to P1,942,521,000 billion, and the Construction of 27, 313 Units of Permanent Housing For Victims Of Typhoon Yolanda which amounts to P7,999,978,000 billion.

Escudero reiterated that safeguards are in placed to deter abuse of lumps sums in the budget, as what other items are in the supplemental budget but he says this is different from having pork.

"Just like what we did in the 2014 budget, we require them to submit a special budget in accordance with the Revised Administrative Code.

Escudero said in Sec. 63 of the General Appropriations Act (GAA) of 2015, lump sum appropriations shall be released upon compliance with the requirements under special provisions which will be submitted to Congress. It shall include the complete details of the programs, activities and projects covering the lump sum appropriations. He says this applies to the Supplemental Appropriations too.

The senator said the proposed measure shall be funded by the excess dividend collections of the national treasury. He said before putting the measure to the floor for approval, he obtained from the state treasurer not only a certification of the excess collection but also of the actual availability of the said fund to back the proposed supplemental budget.

The Senate has elected conferees to the bicameral panel for the supplemental budget as the measure goes back to the Lower House for its approval.

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