"This is unacceptable," he said.
"The budget is the most important piece of legislation that Congress is duty bound to enact. But for two straight years, Congress, that is, the Senate and the House failed to do so."
Arroyo said he laments that the government would be working under a re-enacted 2005 budget for the second straight year because of a gridlock over the P4.4-billion for the governments school feeding program.
"For 2007, the Philippines would be operating, strictly speaking, on the basis of the 2005 budget or the budget which Congress enacted two years ago," he said.
"Why? Because Congress failed to pass the 2006 budget in the same manner that it failed to pass the 2007 budget."
Arroyo said a deadlock in the bicameral conference committee over P4-million budget for the governments school feeding program has derailed talks for the passage of the 2007 national budget.
"Unfortunately, the Senate and the House cannot agree on the P4-billion food feeding program and the P400-million intelligence fund of the President or a total P4.4-billion," he said.
"More specifically, it is a fraction of one percent. P1.122- trillion is uncontested."
Arroyo said he was dismayed that it has become a habit for Congress to fail to pass the national budget on time.
"This is not fair to the country," he said.
"The government has a lot of excess monies which can be funneled for the common good but which cannot be expended. What will we do with that? It is mind-boggling." Christina Mendez