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Saturday, October 13, 2007

 

House adds P30B to social services

By Maricel Cruz, Reporter

The House of Representatives added P30 billion to social services, when it passed on second reading the proposed P1.227-trillion national budget for 2008.

Meanwhile, the Senate is eyeing to pass its budget bill by December 2. After that, differences between the House and Senate versions will be reconciled in a bicameral committee before going to the President for approval.

House representatives worked until dawn to rush the approval of the budget bill, following a viva voce vote with 200 members present. The House augmented the appropriations for social services, including health and education and infrastructure, in effect reducing allocation for debt servicing.

Under the original draft of the Palace budget, “social services” would get the highest share at 30.06 percent or P368.878 billion. The budget bill states the amount will principally address the demands of education and manpower development (P181.856 billion); health-care services (P22.896 billion); social security, welfare and employment (P69.181 billion) and housing and community development (P7.620 billion), among others.

The chairman of the House Committee on Appropriations, Albay Rep. Edcel Lagman, said the Lower House maintained the total expenditure level proposed by President Gloria Arroyo, since Congress is prohibited by the Constitution from increasing the totality of the appropriations recommended by the President.

“To slash the budget for reduction’s sake is to stunt growth and perpetuate poverty,” Lagman said.

Meanwhile, Speaker Jose de Venecia said the passage of the 1,100-page bill is equivalent to the passage of 50 conventional bills. “We will not have a reenacted budget in 2008. We kept our commitment to our people.”

Slashed items

Lagman said debt servicing for foreign loans was reduced by P17.8 billion, of which P6.8 billion corresponds to reduction of debt payments as a result of the continuing appreciation of the peso. Similarly, the P11.0 billion represents the proposed suspension of interest payments for loans initially identified as “challenged to be tainted or wasteful pending their renegotiation and/or condonation.”

The other items slashed or deleted appropriations include the following:

(1) LRT Line 1 South Extension Project amounting to P2.2 billion under the budget of the Department of Transportation and Communication which could not be implemented within the next three years;

(2) P5-billion worth of slow-moving projects under the Department of Public Works and Highways;

(3) Budgetary support to government corporations was reduced by P2.1-billion corresponding to the Home Guaranty Corp. (P700 million), National Home Mortgage Finance Corp. (P400 million) and National Housing Authority (P1 billion), of which the said amounts could not be utilized in 2008 due to the lack of absorptive capacity of the said agencies;

(4) The Miscellaneous Personnel Benefits Fund of P43.7 billion was reduced by P2.7 billion;

(5) The P1-billion budget for a Department of Defense program for the barangay was also cut by half since there are infrastructure projects already earmarked for 200 barangay units identified as conflict areas.

The collated reduction of P30.1 billion was reallocated to increase the budgets for:

 (1) Teaching personnel, textbooks, school furniture, scholarships and school buildings;

(2) Reproductive health, family planning, operating expenses of hospitals, hospital equipment and requirements for health-care services/disease prevention and control;

(3) Meal allowance for prisoners;

(4) Firearms, ammunition, patrol cars and fire trucks;

(5) Assistance to OFWs and Filipino nationals abroad in distress; and

(6) Infrastructure projects

De Venecia said he confident that the General Appropriations Act will be approved on third and final reading by the second or third week of November, after which the bill will be transmitted to the Senate for approval, possibly before the Christmas break.

Senate sets December 2 deadline

Meanwhile, the Senate expects to pass the P1.227-trillion national budget in December, Sen. Juan Ponce Enrile said Friday.

“The prompt submission by the House will give us ample time for plenary debates and we are confident that the Senate will approve the 2008 budget by December,” said Enrile, the chairman of the Senate Committee on Finance.

If the Senate does so, then this will mark the first time in eight years that the national budget will be approved ahead of the fiscal year.

The Senate Committee on Finance had been conducting budget hearings almost simultaneously with the House Committee on Appropriations. Enrile said only the budgets of the Department of Budget and Management, National Economic and Development Authority, Office of the Press Secretary and the Office of the Vice-President have not been examined by his committee.

With Efren Danao

   

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