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    House panel okays changes
    to social-service outlays
     
    By Fernan Marasigan
    Reporter

    THE chairman of the House Committee on Appropriations gave notice it would accept amendments to the budget bill for 2008 and suggested to those interested to look closer at the allocations for education, health and agriculture for any perfecting amendments they may have in mind.

    Lakas Rep. Edcel Lagman of Albay, committee chairman, made the announcement as the House began plenary debate on Wednesday on the proposed 2008 budget. “All bills are not perfect; that is why we welcome perfecting amendments.”

    In his sponsorship speech, Lagman said, “We hasten a word of caution, however. More money does not always mean more service or better performance. An augmentation may instead buy more seminars or travels rather than additional textbooks, better health care or more rice on the table.”

    He urged his colleagues to immediately approve the budget to prevent the reenactment of this year’s budget, as had happened last year.

    But he is optimistic that by October 11, the House would be able to complete discussions on the 2008 budget and approve it.

    Just as lawmakers were debating on the floor, leaders of the Freedom from Debt Coalition (FDC) with some opposition congressmen held a news conference nearby, challenging House members to claim their full constitutional power of the purse.

    FDC secretary general Milo Tanchuling said lawmakers should be at the top of the budget process by exercising responsible and prudent planning. “If there is one thing Congress should be claiming, it is not the miserable sense of duty of paying debts and ‘obligations’ which are obviously anomalous and illegitimate in nature, but rather their constitutional authority and power over the development of a people-oriented budget.”

    The debt watchdog identified an initial P1.3 billion worth of payments to illegitimate debts that must be stricken out in the 2008 budget pending further investigation. Some of these are the World Bank-funded textbook project, the Austrian Medical Waste project, the Chinese funded North Luzon Railways project, the World Bank Small Coconut Farmers Development project and the already defunct Telepono sa Barangay project.

    “We cannot say the budget was crafted responsibly by Congress supposedly exercising the power of the purse if the same Congress cannot purge the budget of numerous line- item payments allotted for debts that are clearly illegitimate,” he added.

    “Congress must stop acting as the conveyor belt of the executive department on the budget. It must develop its own perspectives, identity and political initiative in crafting a better and healthier fiscal plan for the people.”

    The group also urged Congress to conduct an audit of the country’s debt as a significant first step in addressing the debt problem.

    Leonor Briones, an economics professor at the University of the Philippines and coconvenor of Social Watch Philippines, said government should forego useless expenditures but instead realign them to more productive endeavors that would uplift the lot of the millions of poor Filipinos.

    Briones said the “pork barrel” or the unprogrammed funds under the P715-billion Special Purpose Funds of the President should be given to health, education and environmental protection.

    Briones, with Nacionalista Party-United Opposition Rep. Teofisto Guingona III of Bukidnon and Liberal Party Rep. Lorenzo Tañada III of Quezon, and the FDC said there is around P61billion in unprogrammed funds that could be realigned for social development.

    “It’s difficult to justify the purchase of two helicopters when the fund could be used to help the poor people,” said Briones, referring to the P1.68-billion helicopter purchase government is planning.

    Briones, a former national treasurer, also took exception to the P3-billion Kilos Asenso Support Fund under Mrs. Arroyo’s budget that she said was not properly defined.

    Lagman, probably inadvertently, virtually supported the contention of the FDC and other critics against the continued automatic payment of debts when he mentioned what he described as “crippling constraints of an enormous debt service,” with interest payments reaching P295.75 billion next year and principal amortization to P328.34 billion, or a total debt service of P624.09 billion, which is a little over 50 percent of the proposed National Expenditure Program.

    “A P1.227-trillion budget for 2008 appears to be huge at face value. However, stripped of the virtually mandatory personal services amounting to 384.829 billion and automatic appropriations totaling P555.556 billion consisting of Internal Revenue Allotment of P210.730 billion; interest payment of P295.751 billion and other automatic appropriations of P49.075 billion, the remaining discretionary items amounting to P286.615 billion or 23.36 percent of the total budget is the only amount subject to the disposition of Congress,” said Lagman.

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