House denies adopting Palace definition of savings

MANILA, Philippines - The chairman of the House appropriations committee denied yesterday the claim of militant lawmakers that the chamber has adopted the Palace-proposed definition of savings.

Davao City Rep. Isidro Ungab said there were news reports quoting some members of the Makabayan bloc as saying that the House-approved definition of savings includes funding for projects that have been discontinued by Malacañang “for justifiable causes at any given time.”

“This is another false and absolutely erroneous claim, just like the supposed P423-billion DBM (Department of Budget and Management) errata previously challenged, as the correct, true and actual amount of such amendment/errata was only P4.7 billion,” he said.

He was referring to the joint statement last Monday of Bayan Muna Representatives Neri Colmenares and Carlos Zarate on the supposed DBM-proposed errata of P423-billion funding for the Department of the Interior and Local Government (DILG).

The two have admitted their error, saying the P423 billion was not for DILG but for national government assistance to local government units (LGUs) and internal revenue allotment. The latter represents LGUs’ share from national taxes.      

“Again, for the record and in order to clarify this false information being disseminated about the 2015 GAB (General Appropriations Bill), the actual definition of savings as contained in the GAB does not include the phrase ‘for justifiable causes at any given time’,” Ungab said.

“Nowhere in the 2015 GAB does it state such phrase or provision and this fact could easily be verified and confirmed if checked with the approved GAB, Section 67 thereof,” he said.

“Please note that the use and definition of savings as provided in the approved 2015 GAB was amended in consideration of the constitutional provisions and latest SC (Supreme Court) rulings on the matter and ensured that the same will be effective and practical for the operations of government departments/offices,” he said.

Ungab was referring in particular to the SC ruling on the controversial Disbursement Acceleration Program, under which the tribunal prescribed that savings could only be declared and used at the end of each budget year.

The Palace-proposed definition of savings sought to allow President Aquino to discontinue projects, activities and programs “for justifiable causes at any time,” declare the funds as savings and use them to augment other appropriations in the budget within the executive department.

Makabayan bloc members said this would run counter to the SC ruling on DAP, as it would have empowered Aquino to suspend appropriations even during the first quarter of 2015 and classify the funds as savings.

The proposed 2015 budget approved on third and final reading by the House on Wednesday night also complies with the prohibition in the SC ruling on DAP against “cross border” fund transfers – movement of funds from one branch of government to another, like from the executive to the legislature or judiciary.