Philippines Faces Budget Impasse as Congress Fails to Pass 2006 Budget

Strategic Insights -

The Philippine Congress has ended its second regular session without approving a budget for 2006, instead opting to reenact the 2005 budget of P907.6 billion (US$17.1 billion). The failure to pass a new budget has been attributed to a lack of agreement between the bicameral committee conference panels from the House and Senate. Senator Manuel Villar expressed disappointment over the ongoing deadlock, stating that the reenacted budget will lead to a loss of funding for the Executive Office. The Senate is now exploring options for a supplemental budget, while the Department of Budget and Management is preparing to submit a proposed budget for 2007.

Key Takeaways:

  • The Philippine Congress has reenacted the 2005 budget of P907.6 billion (US$17.1 billion) for 2006 due to a failure to pass a new budget.
  • The bicameral committee conference panels from the House and Senate were unable to reach an agreement on the 2006 General Appropriations Bill.
  • Senator Manuel Villar stated that the reenacted budget will result in a loss of funding for the Executive Office, specifically the P10 billion Compensation Adjustment Fund.
  • Senate President Franklin Drilon explained that there will be no government reorganization without an enabling law, citing the P10 billion fund as a major cut.
  • The Senate is exploring options for a supplemental budget to fill the gap left by the reenacted budget.
  • Albay Representative Joey Salceda confirmed that deliberation on the 2006 budget is terminated due to a lack of results in the bicameral conference.
  • Sen. Edgardo Angara noted that the failure to pass a new budget is a "very bad record" for the institution, highlighting that there has only been one year in the past five where a budget was passed on time.
  • The Department of Budget and Management is prepared to submit a proposed budget for 2007 in time for the President's State of the Nation Address in July.

Statistics:

  • P907.6 billion (US$17.1 billion): The 2005 national budget reenacted for 2006.
  • P1.053 billion: The proposed 2006 budget for the Philippines, which was not approved.
  • P1.026 trillion: The Senate's version of the 2006 budget, which cuts funding for the Executive department and other unprogrammed budgets by P64 billion.
  • P10 billion: The amount allocated for the Compensation Adjustment Fund, which will not receive funding due to the reenacted budget.
  • P64 billion: The amount cut from unprogrammed budgets in the Senate's version of the 2006 budget.

Sources:

  • (PNA) 09-06 1454