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Thursday, October 04, 2007

 

House starts debates on P1.227-T budget

By Maricel V. Cruz Reporter

THE House of Representatives on Wednesday began plenary debates on the Palace-proposed P1.227-trillion national budget for 2008, the biggest in the country’s history.

Albay Rep. Edcel Lagman, chairman of the House Committee on Appropriations, and other authors of the proposed General Appropriations Act of 2008 (House Bill 2454) defended the proposed expenditures for government agencies and offices in a succession of sponsorship speeches.

Lagman admitted that the budget bill is “[not perfect], like all legislative proposals.”

“Thus, your committee on appropriations welcomes perfecting amendments to augment, for example, the allocations for education, health, and agriculture, among others,” Lagman said.

“We hasten our word of caution, however, that more money does not always mean more service or better performance. An augmentation may instead buy more seminar or travels, rather than additional textbooks, better health care or more rice on the table,” he added.

Lagman underscored the need for government to review its policies on debt service and the proposed repeal of the law on automatic appropriation on debt service.

Lagman acknowledged that of the P1.227-trillion national budget, an amount equal to more than 50 percent of its total or P624.092 billion, will be spent only for debt servicing. Some P297.751 billion will go to interest payments and P328.341 billion to amortization of the principal.

“We must trust the innate responsibility of legislators to determine what debts must be paid. We must never allow our country to again suffer the inordinately expensive folly of the useless and fraudulent loan for the construction of the Bataan Nuclear Power Plant (BNPP),” Lagman pointed out.

He bared that the government has paid a total of P64.794 billion for the mothballed facility for more than two decades or from 1986 to the present. The total amount, he added, is more than the combined appropriations for several departments like health (P16.259 billion); agriculture (P23.756 billion); and transportation and communication (P23.339 billion) for 2008.

Lamentably, Lagman added, the BNPP folly is similar to a project where the government purchased “substandard” medical waste incinerators for 26 government hospitals with a P503.65 million loan from the Bank of Austria.

 The use of the incinerators had been banned under the Philippine Clean Air Act of 1999, but the government continues to pay for it.

“Unfortunately, we cannot stop these off-budget payments without first repealing the law on automatic [appropriations]… We cannot strike down automatic appropriation through the General Appropriations Act,” Lagman said.

“Nevertheless, we can express the strong sense of Congress against the payment of tainted and worthless loans through appropriate special provisions in the General Appropriations Act,” he pointed out.

Lagman called on colleagues to “expeditiously deliberate and approve” the budget bill to prevent the re-enactment next year of the 2007 GAA.

Speaker Jose de Venecia had earlier committed to have the 2008 budget bill and other priority measures, like the cheaper medicines bill, approved by October 12 before Congress goes on recess.

“We have our commitment to our people. There will be no re-enacted budget next year. We are all working doubly hard to pass the crucial social legislation [that makes] quality medicines affordable and accessible to our poor masses,” de Venecia said.

Meanwhile, Opposition Rep. Teofisto Guingona 3rd, together with the nongovernment organization Freedom from Debt Coalition (FDC), called on Congress to strike out some P1.3 billion worth of payments to “illegitimate debts.”

FDC, a debt watchdog, identified some of these “illegitimate debts” as: World Bank-funded textbook project; the Austrian Medical Waste Project; Chinese-funded North Luzon Railways Project; World Back Small Coconut Farmers Development Project; and the defunct Telepono sa Barangay Project.

   
 

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Severino O. Frayna Jr., Benjie Dela Rosa
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