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THE
Senate started floor debates Monday on the
Palace-proposed P1.227-trillion budget bill for next
year, scrambling to meet a self-imposed deadline to pass
the money measure in plenary within two weeks, or just
before Congress adjourns for Christmas recess.
In his
sponsorship speech on the budget bill, Sen. Juan Ponce
Enrile, finance committee chairman, reported that the
government was able to significantly reduce the budget
deficit to P64.8 billion last year from a high of P210.8
billion in 2002.
He added
that the government aims to further reduce the deficit
this year to P63 billion, “paving the way for a zero
budget deficit, with assurances that revenues to be
collected shall sufficiently support the P1.227-trillion
budget for 2008.”
Enrile
recalled that in the President’s budget message to
Congress, Mrs. Arroyo proposed a P1.227-trillion budget
for fiscal year 2008 based on a projected real GDP
growth of 6.1 percent to 6.8 percent, an inflation rate
of 3 percent to 4 percent, and an exchange rate of P46
to P48 to US $1.
“In view
of the balanced-budget scenario next year, revenues and
disbursements are both targeted at P1.236 trillion,” he
said, adding that “revenues are expected to grow in 2008
by P117.467 billion, or 10.5 percent, from a projected
P1.119 trillion this year while disbursements are
targeted to increase by P54.5 billion, or 4.6 percent
from P1.182 trillion in the current year.
According to Enrile, total new appropriations which are
proposed for enactment amount to P770.729 billion,
including P114.492 billion in unprogrammed
appropriations that can only be spent if revenue
collections exceed targets, or other additional sources
of receipts are realized.
He added
that automatic appropriations for debt payments, on the
other hand, will increase to P570.763 billion, inclusive
of P210.730 billion for Internal Revenue Allotment and
P295.751 billion for debt-service interest payments
which, he said, constituted the largest share.
Under
the House-approved version of the 2008 budget bill,
total new appropriations stood at P1,066,479,857,000,
which registered a net increase of P295.751 billion from
the President’s budget proposal.
The
House also reduced by P17.8 billion the debt-service
interest payments, from P295.751 billion to P277.951
billion in their version where this amount was
transferred from automatic to new appropriations.
Enrile
noted that other significant increases in the House
version include a P1.82-billion increase for family
health, including family planning under the Department
of Health budget; a P1-billion additional outlay for the
National Health Insurance Program (Philhealth); a
P1.060-billion increase for the creation of new teaching
and nonteaching positions in 2008; P1.72 billion for
construction of school buildings under the Department of
Education budget; and additional funds for scholarships,
fire trucks and fire-fighting equipment.
At the
same time, Enrile confirmed that the House imposed huge
cuts in the following items: P500 million in the
Executive’s Kalayaan Barangay program under the defense
department; deletion of P2.042-billion funding for LRT
Line 1 South Extension Project under the Department of
Transportation and Communications budget; a P2.6-billion
cut in budgetary support to government housing agencies;
and a P9.618-billion cut in various foreign-assisted
projects under the public works budget.
In
endorsing the Senate version of the budget for plenary
approval, Enrile reported that the finance committee
“concurred with the House initiative to transfer the
debt-service fund from automatic to new appropriations,
although we have restored P12.1 billion of the House cut
to provide more legroom for the payment of interest on
so-called tainted or fraudulent loans.”
“We have
also reverted various allocations back to the level of
the President’s budget, noting that it is the Executive
branch which has the authority and is in the best
position to know how much the respective budgetary
allocations of each department and agency should be, at
the same time taking into consideration the ability of
these agencies to utilize additional funds,” the senator
said.
Enrile
also presented for adoption in plenary the finance
committee’s proposed amendments in the House bill,
including a reversion of House cuts in the education
budget to the original amount proposed in the
President’s budget, providing P2 billion for repair of
school buildings and P760 million to cover the classroom
backlog, another P420 million for school desks, plus
P330 million for hiring new teachers.
He said
the Senate finance committee also recommended
restoration of House cuts in the following items: for
disease prevention program under the health department;
the increase in subsistence allowance for 76,306
prisoners to P60 a day, plus medical allowance amounting
to P83.555 million under the Bureau of Jail Management;
the increase in the budget of the Office of the
Solicitor-General by P81 million; and an additional
P163.573 million for state universities and colleges,
among others. |
