Making Good Governance Work (by Prof. Leonor Briones )

7/27/2019 Making Good Governance Work (by Prof. Leonor Briones )

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BY: Professor Emeritus Leonor Magtolis Briones

U.P. National College of Public Administration and

Governance

Lead Convenor, Social Watch Philippines

Chair, Peoples Public Finance Institute

October, 2013

Making Good

Governance work inGovernment

(lump sums, off budget items, unprogrammedfunds etc.)


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Importance of the Budget inNational Development The Philippines is facing many challenges, the

most serious of which are poverty, climatechange, health and education, andunemployment.

The budget is the most powerful instrument of the

government in responding to these problems. It can be an instrument for the redistribution of

income groups to fund services and create jobs forthe poor.

The budget can be used to provide education andhealth services, as well as training and capacitybuilding and fund projects to create employment.

The budget can be used to stabilize the economyand control inflation.


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Importance of the Role of theCongress in the Budget The need to ask questions on the analysis

of the government on the performance ofthe economy, its policies, thrusts andpriorities

The need to ask questions on what isexplicitly stated, and also the moreimplicit or what is not there

The need to engage the executive on

longstanding issues on citizensparticipation, special purpose funds, etc.

The need to demand accountability fromthe government


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Importance of the Role of theCongress in the Budget

The Budget is an instrument of fiscalpolicy which includes policies on revenues,expenditures and borrowing

The Budget as part of fiscal policy hasthree functions: Allocation function

Distribution function

Stabilization function

To these three functions, I add theDevelopment function


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Basic Facts about the Budget

National Expenditure Program- the total amount of projected expenditures

for 2014 PhP 2.268 trillion

the General Appropriations Act

which will be approved by Congress -PhP 1.472 trillion

the above amount is composed of

the budget of departments and agencies - PhP 1.162 trillion

Special Purpose Funds -PhP 310 billion

1.472 trillion

the Special Purpose Funds includes the PDAF OR pork barrel

-PhP 25.2 billion

Automatic Appropriations which is composed of -PhP 796 billion

Debt Service-interest payments -Ph352.7 billion

internal revenue allotment -PhP 341.5 billion

net lending -PhP 24.9 billion

retirement life insurance premiums -PhP 28.9 biliion

special accounts in the general fund -PhP21.1 billion


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In addition to the National ExpenditureProgram, there is the UnprogrammedFund---------------------PhP 139.9 billion

Furthermore, there are the Off Budgetfunds" which are direct remittances.

Examples : PAGCOR remittances to the Office of thePresident (ph 2.6b)

Malampaya Funds (ph 26b)

Motor Vehicles Users Charge(ph12 b)

(Members of Congress are alloted 10M each from MVUC)


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of pork and lump sumappropriations...

lump sum for Congress--------------------------25.2 billion

lump sums under the control of the PresidentSpecial Purpose Fund ---------------310 billion

Direct Remittances-------------------------------40.6 billion

Unprogrammed Funds---------------------------139.9 billionIntelligence Funds-------------------------------846 million


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Campaign Advocacy of Social Watch

1. Abolition of Special Purpose Funds which

includes Pork Barrel

2. Abolition of all Lump Sum funds

3. Transfer these amounts to the differentfrontline agencies; consider the ABI Proposals

4. Revisit the interpretation of the constitutionalprovision which allows the President to transferfunds in the General Appropriations Act. Thephrase his Office is interpreted as the entire

government system.5. Integrate Off Budget items with the General

Appropriations Act

6. Give details of Automatic Appropriations


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Under the constitution as currentlyinterpreted, the President cancreate savings, transfer expenditures fromone agency to another. thus he can move

items in the PhP 2.268 trillion expenditureprogram if he wishes. All presidents havedone this. It is, of course, vulnerable toabuse.


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POSTSCRIPT: THE DISBURSEMENT ACCELERATIONPROGRAM-- NEW WINE IN OLD SKIN BOTTLES

1. WHEN WAS THE DISBURSEMENT ACCELERATION PROGRAMLAUNCHED?

The Executive announced the creation of DAP on October 12, 2011.

2. WHERE DID THE FUNDS COME FROM?

A. unreleased appropriation for personal services - Ph30 billion

B. unreleased appropriation for discontinued and slow-movingprojects in 2011 -ph482 million

C. realignment of 2011 budgetary items within agencies in favor

of fast disbursing projection - ph7.75 billion

D. 2010 unprogrammed funds - ph12.34 billion

E. unreleased appro for discontinued and slow moving projectsin 2010 carried over as pooled savings in 2011- 21.54 billion


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3. Constitutional Questions

A. What is the basis of the president's power toaccumulate and transfer savings-? Article VI

B. Do the amounts given to the senators and

congressmen constitute pork? Yes, under the internationaland local definitions, these funds given to legislatorsconstitute pork.

C. Can regular appropriations be converted intosavings and then converted again to pork?


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4. public management questions

A. When should savings be declared? Isn't it at the endof the year?

Who declares savings? Why were savings declared inoctober?

B. If the purpose of the funds is to acceleratedevelopment, why was it released in 2012, at a time when twomajor events were taking place:

The corona impeachment and the build-up of fundsand expenditures for

The 2013 elections?

C. What is the status of DAP? AFTER 2011, was itincreased further?

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Making Good Governance Work (by Prof. Leonor Briones )