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  • Budget advocate calls for
    revision of 2009 budget
     
    By Cai Ordinario, Reporter &
    Jonathan Mayuga, Correspondent
     

    A NATIONWIDE consortium of nongovernment organizations is calling for a revision of the 2009 budget presented by the President for approval by the House of Representatives and the Senate.

    The Alternative Budget Initiative (ABI), which pioneered civil-society engagement in the national budget process, said several items in the President’s 2009 budget threatened the proper and honest delivery of social services.

    Rene Raya of Action for Economic Reforms said that while the government reported Overall Savings of P27.67 billion for 2008, many of the funds appropriated for social development have not yet been released.

    “ABI calls for the utilization of and release of funds for programs which have already been appropriated last year. This includes allocations for health, agriculture, environment and education which are critical in achieving government commitments to the Millennium Development Goals,” Raya said.

    The ABI also said the projected revenues in Budget Expenditures and Sources of Financing have been adjusted upward by P56 billion from the original projections in the budget call despite lowered growth projections.

    The gross domestic product (GDP) growth projections were recently revised downward to 5.5 percent to 6.4 percent in 2008 and 6.1 percent to 7.1 percent in 2009. The ABI also noted that the Asian Development Bank GDP projection for 2008 only hit the low end of the government’s target of 5.5 percent.

    Former national treasurer Prof. Leonor Magtolis-Briones, who is also the convenor of Social Watch Philippines that organized the ABI, said a balanced budget by 2010 is impossible to meet with a programmed deficit of P75 billion for 2008 and P40 billion for 2009. She also noted that borrowings are usually more than the deficit posted for the year.

    The ABI also opposed the allocation for Special Purpose Funds (SPF) which amount to P760 billion, or 56 percent of the 2009 proposed budget.

    Briones explained that SPF is not subject to the usual performance-based budgeting and that the lump-sum funds under SPF are subject to the President’s discretion and are prone to abuse.

    She said Congress usually concentrates on budgets for departments and agencies, but the bulk of the budget is actually in SPF.

    The item on Unprogrammed Funds (P75.97 billion) contained no details of how and where it will be used.

    In a presentation, Budget Secretary Rolando Andaya said the proposed P1.415-trillion budget for 2009 is a 15.4-percent increase over the 2008 budget of P1.227 trillion.

    The 2009 budget is divided into six major sectors. The sector with the biggest share in 2009 is social services, at P433.99 billion or 30.67 percent of the total; followed by economic services, P361.39 billion or 25.54 percent; debt service, P302.65 billion or 21.39 percent; general public services, P239.59 billion or 16.93 percent; defense, P65.22 billion or 4.61 percent; and net lending, P12.16 billion or 0.86 percent of the total.

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