• PNoy has stranglehold on P500B special funds

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    Palace: President has full control of 2015 SPF

    MALACAñANG on Thursday admitted that President Benigno Aquino 3rd will have full control of the P501-billion special purpose funds (SPF) contained in the P2.26 trillion proposed national budget for next year, a stranglehold that could spark fresh criticism of the Aquino government.

    In fact, Presidential Communications Secretary Herminio Coloma Jr. said the Cabinet Cluster that has supervision over a particular agency may scrutinize the SPF allotted to it prior to seeking the President’s approval.

    “Availment of special purpose funds also involves close, or also requires close, adherence to financial control and accountability measures. This must be fully justified by the concerned head of department or agency and may involve vetting by the appropriate Cabinet cluster before being recommended for approval by the President,” Coloma said in a news briefing.

    But he quickly added that by “financial control and accountability,” he also meant that “actual disbursement is subject to regular auditing rules and regulations.”

    Of the P2.26 trillion proposed budget, the SPF represents 19 percent while 81 percent are covered by line item appropriations for programs, activities and projects.

    The 81 percent is classified into three expense classes: personnel services for employee salaries and benefits, miscellaneous and other operating expenses and capital expenditures.

    Coloma maintained that the SPF is a form of standby outlay that is ready to be drawn when the need arises. This, he explained, is “based on established management practice.”

    “It is customary that a certain portion of the annual budget is set aside for contingency expenditures that are essentially variable and not amenable to precise determination at the time of budget preparation,” Coloma said.

    Being “the largest corporation in the Philippines,” he noted,  the government “follows such best practice in establishing the [SPF],” which is divided into: P378 billion in programmed appropriations and P123 billion in unprogrammed appropriations.

    “What do we mean by programmed appropriations? These are appropriations for which the availability of funds has already been determined and assured. Those that are unprogrammed will be appropriated only if there are additional sources of revenue or excess of revenues over projected revenues, new loans, new loan proceeds and other new sources of revenue,’ Coloma said.

    The programmed appropriations include Calamity Funds, P14 billion; Contingency Funds, P2 billion; International Commitment Funds or those the country uses to pay its obligations to the United Nations and other international organizations, P7.4 billion; Pension and Gratuity Funds, P140.6 billion; Miscellaneous Personnel and Benefit Funds for vacant and unfilled positions and for  performance-based bonus, bonuses and other incentives, P118 billion; E-Government, P1 billion; Rehabilitation and Reconstruction, P1 billion; Budgetary Support to Government-Owned and -Controlled Corporations (GOCCs) such as PhilHealth, Napocor and others, P62.7 billion; and Allocation to Local Government Units, P33 billion

    On the other hand, the unprogrammed funds under the SPF have the following major components: Budgetary support to GOCCs, P5 billion; Armed Forces of the Philippines modernization, P10 billion; and Equity buyout of the Metro Rail Transit Corp., P53.9 billion.

    Coloma said he will release a more detailed list of programs under unprogrammed funds.

    He also noted that there is an allocation of P10 billion for the AFP Modernization Fund and this is considered under the unprogrammed appropriation, which is over and above the P5 billion for modernization already found in the Department of National Defense (DND) budget.

    “So P5 [billion]would be in the DND proper and P10 [billion]is in the special purpose funds under unprogrammed. This is to fulfill the government’s commitment of allocating P15 billion a year at the minimum for the AFP modernization program. But since only P5 billion can be covered by available funds, the P10 billion was placed in the unprogrammed portion of the special purpose funds,” Coloma pointed out.

    “So, as you can see, that is a specific appropriation for a specific purpose. The only reason why it is under special purpose funds is it will have to be drawn from unprogrammed funds or revenues that will still be realized,” he said.

    In the same manner, programmed appropriations of SPF include an allocation of P62.7 billion as budgetary support to GOCCs, and in the unprogrammed portion there is a further provision for P5 billion.

    “So we will not be spending the P5 billion [for GOCCs]unless there are new revenues that are realized,” the Palace official said.

    Coloma assured that in the proposed General Appropriations Act, “there are very specific notes and provisions on how these appropriations may be drawn or the criteria for drawing upon these appropriations.”

    On Wednesday, President Aquino submitted to Congress the proposed 2015 National Expenditure Program contained in his 41-page budget message.

    The President said the proposed budget expands with the economy and supports further economic expansion; focuses on the imperatives of inclusive development; prioritizes the needs of the poor and vulnerable localities; increases the people’s voice in the use of their taxes and government’s accountability for the results of public spending; supports the rapid and effective delivery of public services; and enhances the health of government’s finances.

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    10 Comments

    1. popularity contest brought Pnoy to malacanang by virtue of the filipinos’ uneducated votes. nobody to blame but us.
      now, we see the real picture and here we are struggling to impeach him. when are we going to learn?

    2. Do you have a record on how many government employees are there and the number of pensioner to justify the allocation for “Pension and Gratuity Funds, P140.6 billion; Miscellaneous Personnel and Benefit Funds for vacant and unfilled positions and for performance-based bonus, bonuses and other incentives, P118 billion;”? Actually I have queries for every budget appropriations and until they showed us what it’ll support and their priorities, I think Filipinos will have fitful focus on where we’re actually heading. We all want to see a proper project management not just an allocation for predicted projects. Like this “Allocation to Local Government Units, P33 billion”, how do they arrive with this? Is this base on the requested budget for already planned projects or they’ve studied what are lacking in every city and they would divide this amount to provide what they needed? Before the “Calamity Funds, P14 billion”, I don’t think reports has been properly made on where all the donations for Yolanda victims went. PEOPLE AREN’T INFORMED so our way is to think visually where we weigh the government’s performance base on what we see around us and what we experience, from our minimum salary that pay continued rising prices of goods and fare to the mouse-trap infrastructures to the government assistance for health-care, rescue and relief services that’s not available on some areas or some Filipinos aren’t aware of because there’s no information dissemination, and more. Since the government is bleeding with records of corruption, it is but right that they give a report to the people on where our taxes will be spend. Make us feel the progress that these billions and billions of pesos could have served already by long-term programs that could cure poverty and make our country self-sufficient and stable, and that would result to solidity in structure that spells preparedness and security for anything that will threaten or strike our country.

    3. jason bourne on

      Kawatan talaga itong si Aquino the 3urd. Kawatan ang pamilyang aquino-Cojuangco from Hacienda Luista to 2 Presidencies puro nakaw lang.

      Kawatan ang Liberal Party. Liberal magnakawa sa kaban ng Bansang Pilipinas.

      Mga Kawatan…..

    4. Will they ever stop looking for ways to get complete control over billions of pesos. Why cant they look at how countries like japan, america the uk use tax payers money & copy that. We know these countries arnt anywhere near corrupt as these mongrels & even when they are its only small ammounts they try to steal. If they tried to steal huge ammounts like here they would instantly be caught. The reason they dont want to do that is they still want to find ways to steal money. It can only be that.

    5. The 19% portion of the budget given to the president is a continuing gift from congress. Naturally the bought and paid for congress know that the president without his pork barrel will not be able to feed them. How can we stop this corruption?

    6. Gloria M. Kuizon on

      That means the Liberal Party candidate will become the next president of the Philippines. We will have 8 more years of Inang Filipinas being raped by its own officials!!!! God Almighty please have mercy on us Filipinos and turn these scoundrels into pillars of salt./

    7. Another name for a dog food SDF simion dog food and he got more than a hundred of them all hungry to name a few one is “frankie” the other is “niel”

    8. Samuel Santos on

      It looks like PNoy – with the blessing of Congress – is on his straight path to becoming a modern-day Midas.

    9. Billions of billions of Pesos are with the President, pero walang platform si Aquino para sa mahihirap, nasalanta ng bagyo at education. Gagamitin lang sa 2016 election at ibubulsa nila. Wala namang nagbago, baha parin ang paligid, last year ng SONA 2013 bibili ng maraming helicopter rescue, ni isang helicopter wala. Sa Leyte dami paring gutom, homeless at walang trabaho.
      Kawawang Pinas, !!

      • good day mam, i have nothinjg against your opinion, but i just want to clear some things in your post with regards to Helis acquisitions, just for your info mam, the AFP Modernization in on the right track, here are some: 21 units refurbish UH-1H Helicopters (4 delivered this month) 17 units before the end of the year, 2 units WHEC’s frigates from US (brp gregorio del pilar and brp ramon alcaraz, 3 units Augusta westland AW-109 power helis for Phil navy(brand new), delivered. 2 more units in 2016 (armed), 8 units combat utility helis from Bell Canada brand new by next year, contract awarded., 2 units strategic sealift vessel ship contract awarded (brand new) from PT pal indonesia, 3 units semi lift planes awarded to CASA- Italy or spain (brand new), and there are lots more to come….to many to mention….what’s my point? hindi naman lahat eh ninakaw…marami rin magandang nangyari….sa gov’t lang ang laki ng pinagbago, maaring hindi pa malinis lahat ng gov’t agency pero nabawasan at may takot na sila….saksi ako, from a gov’t employee.