"If we have to go by our re-enacted budget, we’ll go by our re-enacted budget," Executive Secretary Eduardo Ermita said yesterday.
"Now, meanwhile, as practiced every year, the budget for 2007 is being prepared by the national government, on time for submission so this can be deliberated upon when the 14th Congress opens.
"We just have to await the final action by both houses of Congress, especially the Senate, on the 2006 budget. But the fact is right now, we are living on our re-enacted budget."
Earlier, President Arroyo said she would veto the bill if the P64 billion slashed by the Senate from the proposed P1.053-trillion budget would not be restored during the bicameral conference.
The new budget would not serve any purpose if revenues for various projects, particularly for the local government units, would not be appropriated and utilized, she added.
On the other hand, Budget Secretary Rolando Andaya Jr. called on the Senate and the House of Representatives yesterday to resolve their differences over the proposed P1.053-trillion national budget and for the Senate to restore the P8-billion allocation for local governments.
"It is a legislative matter," he said.
"Our position remains the same: We are still hopeful that the two chambers can reconcile their differences so the people can enjoy the benefits of a higher spending ceiling as provided for in the 2006 budget."
Andaya said the fate of the 2006 national budget, which has been "marooned" in the bicameral conference, is entirely up to the House and the Senate.
"But the parties can only arrive at that so-called common ground if they leave their respective trenches and be receptive to compromise," he said.
Andaya welcomed calls by some senators for a "common ground" on the deadlocked, proposed P1.053-trillion national budget for this year.
"I guess that on the part of the Senate that would mean entirely restoring P8 billion worth of funds intended for local governments," he said, referring to the P5-billion Kilos Asenso fund and the P3-billion Kalayaan Barangay allocation.
Andaya said the "powerful LGU lobby" has exerted pressure on the House to insist on the restoration of the two items deleted in the Senate version of the national budget.
"From what I have gathered, this ‘Deal or No Deal’ standoff falls on these two items and congressmen are saying they can’t abandon the LGUs," he said. — Aurea Calica, Paolo Romero