Abad to ask Congress to clarify definition of savings

By: Matikas Santos - 10 years ago

Sec. Butch Abad INQUIRER PHOTO/ ALANAH TORRALBA

MANILA, Philippines – Budget Secretary Florencio “Butch” Abad said that they intend to file a draft joint resolution for Congress to clarify the definition of “savings” following the Supreme Court’s (SC) ruling against the Disbursement Allocation Program (DAP) and allow the funds to be utilized again.

“Three out of the four issues that were raised in the SC decision are not really constitutional questions but can be addressed by Congress and the executive working together,” Abad said in an ambush interview after President Benigno Aquino III expressed his intent during the State of the Nation Address (Sona).

“Essentially we will address those statutory construction differences, for example the definition of savings, the timing of the declaration of savings, what unprogrammed appropriations mean, when can you effect the use of unprogrammed appropriations, what is the definition of item of appropriation,” he said.

The DAP, a savings-impounding program of the Department of Budget and Management (DBM), was ruled as unconstitutional by the SC because it pooled together unspent funds and allocated it to projects not included in the budget even before the fiscal year was over.

Abad said that they intend to submit a draft resolution to the Speaker of the House of Representatives by Wednesday.

“[The statutory construction differences] can be addressed by the joint resolution or a bill in Congress. It will not just clarify, but sharpen the definition so there will be no mistakes [about them],” Abad said.

“[The joint resolution] can have a retroactive effect so the funds in 2014 can be utilized to continue what the development program started,” he said.

Abad said that they expect the SC to take a long time before it decides on their motion for reconsideration and many projects are sitting idle.