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BUDGET
Secretary Rolando Andaya Jr. said Tuesday that Congress
has preapproved the government’s P4-billion fund release
for subsidies to the poor and other sectors through the
2008 General Appropriations Act (GAA), which provides
for the use of P114 billion in unprogrammed funds.
This
developed as Social Welfare Secretary Esperanza Cabral
said more than P80 million so far has been actually
distributed to claimants under the power subsidy, which
gives a one-time dole of P500 to each household
consuming less than 100 kilowatt-hours (kWh) a month, or
the so-called lifeline users.
Andaya
said in an interview at the Palace Reception Hall that
the government subsidies funded by initial proceeds from
the value-added tax (Vat) on oil are “legal,” contrary
to the contention of some lawmakers.
“We are
just implementing the budget as approved by Congress.
Everything we have done is authorized by Congress. . . .
We are using unprogrammed funds which is provided for in
the budget passed by Congress, which gives the Executive
standby authority to spend, based on certain conditions;
among them, if there are extra revenues,” he said.
Andaya
said that it just so happened that the government has a
windfall from Vat on oil collections, which paved the
way for the use of unprogrammed funds to back up the
subsidies.
“We have
a certification from the [Department of Finance] that
this [P4 billion] is extra revenue. That is not part of
the programmed collections this year. This is extra;
bonus Vat from oil,” he said.
In a
statement, Andaya explained that the budget usually
provides for standby appropriation under “unprogrammed
funds” to give the government some flexibility, since
the budget is prepared as long as 18 months ahead of
time; and conditions at the time of preparation may be
vastly different from those at the time of
implementation.
The
budget chief said the 2008 GAA includes the amount of
P114 billion as unprogrammed fund, which is only to be
released “when revenues generated exceed the targeted
revenues as enunciated under the Budget of Expenditures
and Sources of Financing.”
With the
rise in oil prices, he added, “a consequent effect is a
corresponding rise in revenues for the national
government. Thus, with generated revenues exceeding the
targeted program, the unprogrammed fund may be tapped to
serve as appropriate source for the subsidies provided
to the low-end energy consumers,” Andaya said.
Referring to the government subsidies, he added that the
“government’s quick and immediate response to the plight
of the marginalized is precisely the argument for the
present budgeting approach where enough flexibility is
provided the Executive branch to provide proactive
measures as quickly as possible.”
Sen.
Francis Escudero, disputing Palace claims there was no
need for a specific law to legally spend VAT collections
for the subsidy, warned, however, that the President may
be held liable for technical malversation, but added he
would prefer to leave the matter to the court. “I think
some NGOs are preparing a petition, but I don’t have
direct knowledge of this.”
Escudero
eschewed a debate over the wisdom of granting financial
assistance to poor folks, but voiced misgivings over the
legality of dispensing public funds without authority
from Congress as provided for in the law.
“I don’t
agree with their tack. There’s an unprogrammed fund in
the budget that’s pegged to the level of increase in
collection for the government; but it’s also dependent
on the additional revenue they’ll get. It can’t be on
the windfall revenue earnings that result from wrong
assumptions,” he said in Filipino.
He cited
the Philippine Constitution, which clearly provides that
‘“no money shall be paid out from the National Treasury
except in pursuance of an appropriation provided for by
law.’ What is the problem with just going to Congress
and asking for a supplemental budget if only to ensure
the legality of this disbursement? I don’t think any
congressman or senator would block any program or public
service that will clearly benefit our people in these
hard times,” stressed Esceudero.
Escudero
explained that according to the estimates of the
Department of Finance, “at the price of P52 to P55 per
liter, where the value-added tax is more or less P6.12
per liter, there is a windfall for the government of
about P18.6 billion for the entire year.”
“The
reason for the excess VAT collection is simple:
government assumption is wrong; according to the budget,
their projected VAT collection from oil is only P54
billion, on an assumed per-barrel price of oil at only
$62 to $70; it’s now $134 per barrel,” he said. “And
now, from their estimate, the exchange to the dollar is
at P46 to P48. We started with P42, we’re now just over
P43; because the assumptions were so far, the government
revenue as a result of higher oil prices is so huge.”
He
deemed it unconscionable for the government to be
reaping so much money at the expense of the people.
Escudero said this was why the committee on ways and
means, which he chairs, is studying proposals to reduce,
remove or suspend the imposition of the 12-percent VAT
on oil.
Some
lawmakers, including Senate Minority Leader Aquilino
Pimentel Jr., have questioned the legality of the string
of subsidies given out by the government to help
hard-hit sectors cope with rising living costs, among
them the P2-billion subsidy for some 4 million families
consuming less than 100 kWh per month, the so-called
lifeline users.
Justice
Secretary Raul Gonzalez had earlier said that the Chief
Executive is allowed to transfer funds from government
savings for the “public interest.”
Social
Welfare Secretary Cabral said Tuesday that 161,016
lifeline users consuming 100 kWh or less of electricity
for May 2008 have so far claimed their subsidy payments
worth P500 each, through the Pantawid Kuryente: Katas
ng VAT program since the start of the program’s
implementation on June 6.
According to Cabral, P500 million has been transferred
to Land Bank of the Philippines by the social welfare
department, while P80.5 million has been actually
distributed to claimants in the Land Bank of the
Philippines branches and off-site venues for the period
June 6 to 16.
Claimants trooped to the 11 off-site venues on June 15
and 16 (Saturday and Sunday) and claimed their subsidy
payments worth P500 each.
The 11
off-site venues are in addition to the 62 Land Bank of
the Philippines branches which are operational on
weekdays during regular banking hours from
8 a.m. to 5
p.m.,” Secretary Cabral pointed out.
Cabral
said the weekend payments will continue on June 21, 22
28 and 29, at the identified off-site venues. (With
Butch Fernandez) |
