[PHOTO -
That's how it is! President Aquino converses with Senate President Juan
Ponce Enrile and Speaker Feliciano Belmonte Jr. during the signing of
the 2012 budget at Malacañan Palace.]
MANILA,
DECEMBER 18, 2011 (MALAYA) BY JOCELYN MONTEMAYOR -
PRESIDENT Aquino signed into law Republic Act 10155 or the 2012 General
Appropriations Act but vetoed five provisions including a 60 percent cap
on the public sector debt.
Aquino said while he recognizes the "noble intent" of Congress in
imposing the debt cap, the GAA is not the proper venue to amend
Presidential Decree No. 1961 which authorized the President of the
Philippines to enter into foreign currency loan, deposit and guarantee
agreements and arrangements, as well as the Republic Act No. 4860 or
Foreign Borrowings Act.
"A change in our borrowing policy ought to be more deliberately
discussed and embodied in a separate substantive law. For the foregoing
reasons, I am constrained to veto General Provisions, Section 14,
"Government Indebtedness and Guaranty." Besides, no fiscal rule can take
the place of government's unwavering commitment to fiscal prudence and
discipline," he said.
The President also vetoed provisions under the grant of special
allowances, the Metro Rail Transit fare subsidy, the legislative
coordination during program or project implementation, and the quick
response fund under Priority Development Assistance Fund (PDAF).
Budget Secretary Florencio Abad said imposing a ceiling on the public
sector debt would force the government to constrict spending,
especially on critical social services and infrastructure.
He said public sector debt as of 2010 already stood at 73.3 percent
of gross domestic product (GDP), which is well beyond the 60-percent
debt cap provision included by Congress in the General Appropriations
Bill.
With this, he said, a debt cap would tie the hands of the Executive.
"The Executive should be given flexibility in managing its finances
and in borrowing responsibly in order to stimulate economic growth and
provide ample social services to the poor," he said.
The budget secretary assured the government is committed to reduce
the fiscal deficit and public sector debt stock in the medium-term.
He said the fiscal consolidation efforts have so far gained ground,
leading to increased investor and creditor confidence in the country,
while the prudent and efficient liability management efforts of
government, including debt swaps, have improved the quality of
government debt through lower interest costs and extended maturities
from an average of 7.9 years as of June 2010 to 9.2 years as of July
2011.
The President said he removed a provision on the grant of special
allowances because he is duty bound to adhere to the provisions of laws
on the grant of special allowances as advances of future salary
increases.
The provision pertains to the Department of Justice-Office of the
Secretary (DOJ-OSEC) Special Provision No. 1 on the use of income, and
the item on commissioners under Department of Labor and
Employment-National Labor Relations Commission (NLRC).
"In the case of the DOJ, the vetoed special provision authorizes the
continued grant of special allowance to all members of the National
Prosecution Service and Office of the Chief State Counsel, and
Undersecretaries over and above their respective salaries, regardless of
any subsequent salary increases that may be provided by law. This is in
direct contravention to Section 4 of R.A. No. 9279 (An Act Granting
Special Allowances for the Members of the National Prosecution Service
and the State Counsels in the DOJ)," Aquino said.
The special provision under the NLRC was also vetoed because the
special allowance of Commissioners had already been fully integrated
into their basic salary.
Aquino said he vetoed the Department of Transportation and
Communications (DOTC)-OSEC, Special Provision No. 4 on MRT Subsidy which
he said restricts his constitutional authority to use and realign
savings to more critical projects of the National Government.
"This provision earmarks any excess or savings due to peso
appreciation in national government support to the Metro Rail Transit
(MRT) for additional subsidy to the MRT fare. It is interesting to note,
however, that government subsidy of P48 to the MRT fare had already
been fully provided in the DOTC budget. We, therefore, find no cogent
reason to prepare for such a contingency unless Congress, contrary to
existing policy, intends to increase the existing government subsidy to
the MRT fare," he said.
Aquino also vetoed the provisions on the Department of Education
(DepEd)-Office of the Secretary (OSEC), special provision for basic
educational facilities" and the general provision on the realignment and
relocation of capital outlays.
"Such realignment or relocation of capital outlays shall be done only
upon prior consultation with the representative of the legislative
district concerned. Notwithstanding these vetoes, I direct all agencies
to inform and apprise legislators on the implementation of projects
within their respective legislative districts. Collaboration between the
Executive and Legislative Departments is productive, as long as it does
not infringe upon agencies' independence in determining the manner by
which to properly execute their which programs and projects," he said.
The President also vetoed a special provision under PDAF that
pertains to the relief and rehabilitation assistance program for victims
of calamities.
He said the assistance program for the calamity victims are
sufficiently provided under the Quick Response Fund of the Departments
of Social Welfare and Development, Public Works and Highways, National
Defense, and DepEd which are promptly released when needed.
Aquino described the budget signing as historic.
"Nasaksihan ninyo ang pinaka-maagang pagsasabatas sa taunang budget mula ng mabawi natin ang demokrasya nuong 1986," he said.
During the term of President Corazon Aquino the budget was signed
December 18, 1986; Fidel Ramos, January 6, 1993; Joseph Estrada,
December 30, 1998 and Gloria Arroyo, January 21, 2002.
Abad said the early signing of the budget meant that government could
immediately implement its programs and key infrastructure projects even
on the first day of the new year.
"In contrast to 2011 when infrastructure spending was delayed, we
intend to begin 2012 on a very strong note. The swiftness of the budget
signing also means that the government can hit the ground running with
its programs, starting with key infrastructure projects. It also
reinforces the President's commitment to his Social Contract with the
Filipino people and underscores our mission to ensure economic
development and transparent government spending," he said.
The Department of Education still gets the biggest allocation with
P238.8 billion which is 15.2 percent higher than its budget in 2011 of
P207.3 billion.
Sen. Joker Arroyo said by vetoing the provision placing a ceiling on
public debt, President Aquino is following the footsteps of former
President Gloria Arroyo.
He said when the previous administration was in power it left
hundreds of billions in public funds open to "shady deals and anomalous
transactions."
He said Congress has always put a ceiling on the government's total
borrowings in the annual budget but were struck down by the former
president.
He explained that Congress leaders, in adopting the debt cap, wanted
to spare the Philippines from the predicament of some European
governments on the brink of bankruptcy "because they over-borrowed."
"Kung walang debt ceiling, we will likely end up like some EU
economies that are on the verge of collapsing because they have no debt
cap. That is why we included the debt cap provision in the budget," Sen.
Arroyo said.
"During our deliberations, we were told by Finance Secretary Cesar
Purisima and Budget Secretary Butch Abad that the national debt stood at
50 percent of GDP. But it turned out in the Palace veto message that it
is now 73 percent of GDP. Bakit sinabi sa amin 50 percent lang, yun
pala 73 percent," Arroyo complained. "When we deliberated, they all
agreed on the debt cap, now the President vetoes it." – With JP Lopez
Chief News Editor: Sol Jose Vanzi
© Copyright, 2011 by
PHILIPPINE HEADLINE NEWS ONLINE
All rights reserved
PHILIPPINE HEADLINE NEWS ONLINE [PHNO] WEBSITE
[Non-text portions of this message have been removed]
------------------------------------
-------------------------------------------------------------
Follow us on Twitter: http://twitter.com/phnotweet
This is the PHILIPPINE HEADLINE NEWS ONLINE (PHNO) Mailing List.
To stop receiving our news items, please send a blank e-mail addressed to: phno-unsubscribe@yahoogroups.com
Please visit our homepage at: http://www.newsflash.org/
(c) Copyright 2009. All rights reserved.
-------------------------------------------------------------Yahoo! Groups Links
<*> To visit your group on the web, go to:
http://groups.yahoo.com/group/phno/
<*> Your email settings:
Individual Email | Traditional
<*> To change settings online go to:
http://groups.yahoo.com/group/phno/join
(Yahoo! ID required)
<*> To change settings via email:
phno-digest@yahoogroups.com
phno-fullfeatured@yahoogroups.com
<*> To unsubscribe from this group, send an email to:
phno-unsubscribe@yahoogroups.com
<*> Your use of Yahoo! Groups is subject to:
http://docs.yahoo.com/info/terms/
