Put an end to cycle of reenacted budgets, Palace urges Senate

Malacañang called on senators yesterday to put an end to the "cycle of reenacted budgets" and immediately act on the House-approved P1.126-trillion national budget for 2007 to allow the government to undertake massive public investment spending early next year.

President Arroyo, meanwhile, is set to sign this week the P46.6-billion supplemental budget that will allow the executive branch to fund expenditures not allowed under the present reenacted budget of P907 billion under which the government is currently operating, Budget Secretary Rolando Andaya Jr. said.

"We are now banking our hopes on the Senate to put an end to the cycle of re-enacted budgets," Press Secretary Ignacio Bunye said. "Twice, we have ended with a re-enacted budget and for 2006, it was only recently that both houses approved a supplemental budget."

For the past three years, the Senate and the House of Representatives have failed to pass proposed appropriations put forward by the Palace, resulting in the government operating on so-called "re-enacted budgets."

Opposition leaders alleged that re-enacted budgets allow Malacañang to divert allocated but previously-spent funds for other purposes, but budget officials said operating on an old appropriation law cramps spending on public investment and pro-poor programs.

He said the budget, considered by Congress as the single most important piece of legislation, "is in reality an instrument to empower our people and uplift their lives.

"As such, it should never be held hostage simply because of partisan politics," Bunye said, referring to reported threats of opposition senators to sit on the money measure.

He said with the economic and fiscal reform agenda in place, and the resulting huge improvements in the country’s monetary position, the government should now be able to sustain its pro-poor agenda with an approved and intact budget.

For the first time in a generation, he said, the country has enough funds to build the infrastructure needed to attract investments, stimulate commerce, generate jobs and expand social services to the poor.

"Certainly, the approval of next year’s budget would be a great boost in paying back to our people the fruits of their sacrifices," he said.

Andaya said the Palace is satisfied with the final version of the supplemental budget by the Senate, though there were some realignments.

The Palace sought the approval of the supplemental budget to pay for what it called "non-postponable items" — like salary increases, pension arrears and funding for the cleanup of the oil spill in Guimaras.