Press Release
December 16, 2008

Pia warns against huge lump-sum funds in 2009 budget

Senate opposition member Pia S. Cayetano today said the inclusion of huge lump-sum appropriations in the proposed 2009 national budget will give President Gloria Macapagal-Arroyo "virtually unchecked powers" in determining the government's spending priorities next year.

Cayetano, who along with Senate Minority Leader Aquilino Pimentel Jr. cast the negative votes in plenary last night, warned that the wide discretion given to the President went against the Constitutional mandate of Congress to be the guardian of the public treasury.

"There are several items under the headings of General Fund Adjustments, Unprogrammed Funds and the budgets of some departments which don't have special provisions for their use and administration. These funds thus become subject to the discretion of the President."

"Details on how the amount will be allocated and who will be the beneficiaries are unclear. There are no guidelines given to ensure that Congress is guided on the wisdom and purpose of the proposed allocations. This runs counter to Congress' Constitutional mandate to hold the power of the purse," she stressed.

She said among the main responsibilities of Congress is to ensure a balanced budget that would contain clear provisions on the disbursement of the funds allocated therein.

"A balanced budget means that although there will be provisions for the payment of our international commitments, there will be a corresponding equal, if not greater, amount for pro-poor programs, such as for programs which seek to achieve the eight Millennium Development Goals by 2015."

While Cayetano welcomed the P10-billion cut made by the finance committee on debt interest payments, she found the realigned funds to education, health and environment grossly insufficient to meet the country's commitments to the Millennium Development Goals (MDGs).

In her interpellation on the general provisions of the budget, Cayetano urged the finance committee to consider alternative measures like a moratorium on illegitimate loans and those tainted with irregularities. She also urged the committee to lead a congressional audit of loans granted to different agencies.

She said the executive department should also look for strategic approa ches to debt payments, such as looking into debt-to-MDG conversions or debt reduction measures to ensure that we comply with our international obligations.

"Cutting debts is just one step. This should be complemented by other measures such as debt audit and debt moratorium."

"I am all for honoring our debts, but I also want to ensure that the debts that we will be paying are legitimate, that the money that we will be allotting for these debts will redound to the benefit of our countrymen."

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