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Thursday, June 26, 2008

 

SPECIAL REPORT: UNFUNDED LAWS

Why good laws remain unfunded

By Efren L. Danao, Senior Reporter

Editor’s note: The first part reported that nearly 50 well-crafted laws cannot be fully implemented for lack of funding.

Last of two parts

Senator Pia Cayetano was ecstatic with the enactment of Republic Act 9337 or the Reformed Value-Added Tax Law. It contained her pet amendments earmarking 50 percent of the share of local government units from the incremental revenue from the Reformed-VAT to education, health insurance premiums, environmental conservation and agricultural modernization.

This provision is similar to her earlier contribution to Republic Act 9334 or Sin Tax Law, earmarking a percentage of the incremental revenues to the Department of Health for its disease-prevention program and to the Philippine Health Insurance Corp. (PhilHealth) to sustain the goal of universal health insurance coverage.

When a fund is earmarked, it could not be used for other purposes. Yet, the supposed beneficiaries of the earmarked funds received a mere pittance.

Cayetano sought an explanation from Budget Secretary Rolando Andaya Jr. why the earmarking stated in the two laws was not followed. His answer was simple: “Because it was not in the General Appropriations Act.”

Andaya explained that there may be laws needing funds, but as long as these funds are not contained in the annual budget, then they are not assured of getting funded.

Who to blame

Senator Juan Ponce Enrile, the chairman of the Senate Committee on Finance, said lawmakers are to blame for failing to identify their funding sources.

“Government cannot allocate funds for programs provided for in laws that do not identify their funding source. Congress has to get the Bureau of Treasury to identify the source of funds to support statutory grants. But if there are no funds available, they shall remain unfunded until the executive department provides otherwise,” he explained.

He added that different people have varying notions about what things that need priority.

“While the authors of the statutes considered them as important projects for the government, the administration might decide things according to its perception of what society needs during its watch, given the limited resources of government and the need to prioritize and allocate funds for projects,” Enrile said.

The problem with this situation is that it gives the executive department complete leeway to determine which law should be funded and by how much—assuming the government has money to spare.

More laws needed

Senator Loren Legarda, principal author of the Ecological Solid Waste Management Act of 2000, said there should be specific criteria for laws to qualify for funding. She wondered why there is lack of urgency or compelling reason to fund important pieces of legislation.

Senator Francis Escudero said that although Congress has the power of the purse, the executive department enjoys a wide latitude and discretion to spend even on projects and programs not included in the budget. This presidential power stems from a martial law decree, Presidential Decree 1177, ironically called the Budget Reform Decree of 1977. This decree grants the executive the power to realign or augment budgets of the various executive departments, besides providing for the automatic appropriation of foreign debts.

There are now bills seeking to amend this law to give Congress the absolute and exclusive power of the purse. Among the proponents of the amendatory bills are Senators Edgardo Angara, Aquilino Pimentel Jr., Jinggoy Estrada, Pia Cayetano and Escudero. But until this law is repealed or amended, Congress could only assure the full implementation of the 46 unfunded laws by including them in the next national budget.

Legarda said she would sit down with Andaya to determine which of the 46 laws could get the needed funds in the 2009 budget. This, however, did not stop her from expressing concern over the way the executive department has set its priorities which ignored the efforts of Congress that enacted the laws with good intentions.

Her concern was echoed by a resource person at a hearing on the implementation of the Ecological Solid Waste Management Act when it was learned that the law had never received the P20 million it was supposed to get each year, said Odette Alcantara of Earthday Network Philippines.

She lashed out at the lack of priority given by government to the law. “The desire to implement the law is not there, otherwise the budget would have been there. It is not funded so it cannot be prioritized, much less institutionalized.”

   

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