Scheming and Scamming in National Budget (2009)

Summary:

In January, Ping Lacson warned of a possible violation of the 1987 Constitution in the P1.415-trillion budget for 2009, involving a presidential veto on cuts in debt service payments.  Lacson said a similar violation of the Constitution marred the 2008 budget, effectively increasing it by P50 billion - a violation of the Charter’s provision that Congress may not increase the national budget.

He said that in 2008, Congress transferred P25.904 billion from debt service interest payments, an off-budget item, to the special purpose funds, a line budget item. Congress then re-appropriated the amount to some agencies of government. But when Mrs. Arroyo vetoed the entire item of the debt service slash, the increases to some agencies that benefited from the slash in the debt payments remained. "The resulting effect is an increase of P25.904 billion in the 2008 General Appropriations Act," he said.

Worse, he said a similar increase of P50.1 billion for this year's budget may induce inflation, at a time the country faces the effects of a global economic meltdown.

Lacson also scored the "scheming and scamming" that marred this year's budget despite efforts to ensure transparency at the bicameral conference committee level, noting the insertion of a provision that required the concurrence of local lawmakers for the building of schools - effectively holding the construction of schools hostage to the wishes of lawmakers.

Effect:

By making public the "scheming and scamming" in the budget process, Lacson raised public consciousness and vigilance in the process.  Lacson also filed remedial legislation allowing people’s organizations to monitor and take part in the crafting of the budget.