Philippine Senate Debates P8.2 Billion Slash from General Appropriations Bill

Strategic Insights -

The Philippine Senate is engaging in heated debate over the proposed General Appropriations Bill, which cuts P8.2 billion from the budget version presented by the House of Representatives. Senate Finance Committee Chairman Franklin Drilon expects a spirited discussion, particularly after he warned that the Presidential Office must intervene to prevent a deadlock between the two chambers. The country's first trillion-peso budget, worth P1.126 trillion, is scheduled for approval by December 4, and it remains uncertain whether the proposed cuts will be ratified.

Key Takeaways:

  • The Philippine Senate has proposed a P8.2 billion cut from the budget version presented by the House of Representatives, sparking a heated debate.
  • Senate Finance Committee Chairman Franklin Drilon expressed concerns that the Presidential Office must intervene to prevent a deadlock between the two chambers.
  • Drilon mentioned that the budget includes P22.450 billion in discretionary funds for the President to realign and fund projects she may wish to implement.
  • Part of the discretionary funds include the Miscellaneous Personal Fund (P5 billion), Calamity Fund (P1 billion), Contingent Fund (P800 million), Intelligence and Confidential Fund (P650 million), and Capital Outlay (P107 billion).
  • Drilon also mentioned a P30.5 billion one-line item in the unprogrammed funds portion of the budget, which can be realigned for any purpose.
  • President Arroyo, however, cannot exercise her discretion on interest debt service (P328 billion), internal revenue allotment (P183 billion), local government unit shares, salaries of the bureaucracy, and other specified items.
  • Senators have realigned funds to address resource gaps, such as allocating P4 billion for the purchase of rice to be distributed through the school system and hiring 6,390 additional teachers.
  • The proposed budget includes P3.5 billion for health cards, split into P1.5 billion for existing enrollees, P1.5 billion for new enrollees (limited to registration in July 1, 2007), and P0.5 billion for payment to the Philippine Charity Sweepstakes.

Statistics:

  • P8.2 billion - proposed cut from the budget version presented by the House of Representatives.
  • P1.126 trillion - country's first trillion-peso budget.
  • P22.450 billion - discretionary funds for the President to realign and fund projects she may wish to implement.
  • P5 billion - Miscellaneous Personal Fund.
  • P1 billion - Calamity Fund.
  • P800 million - Contingent Fund.
  • P650 million - Intelligence and Confidential Fund.
  • P107 billion - Capital Outlay.
  • P30.5 billion - one-line item in the unprogrammed funds portion of the budget.
  • P328 billion - interest debt service.
  • P183 billion - internal revenue allotment.
  • P3.5 billion - proposed budget for health cards.
  • P4 billion - realigned funds for the purchase of rice to be distributed through the school system.
  • 8,000 - classrooms still lacking.
  • 6,390 - additional teachers to be hired.
  • 16,390 - required teachers for the year.

Sources:

  • [Asia Pulse] Nov 29
  • [PNA] 29-11 1353