New ‘savings’ definition alarms KMP, former solon

LUCENA CITY—The new definition of “savings” in the proposed 2015 national budget has elicited more criticisms against the Aquino administration’s campaign against corruption.

According to a left-wing farmers’ group, it would simply open the door to more corruption and plunder. For the head of a nongovernment organization advocating good governance, it would simply be usurpation of the Congress’ so-called power of the purse.

In a statement, Kilusang Magbubukid ng Pilipinas (KMP) said that under the new definition of savings, President Aquino could allow agencies to withhold funds and declare these savings “to fund their whims and caprices.”

Congress was advised to reject the new definition by the group Bayan Mamamayan Abante Movement (BMAM), which said in a separate statement that allowing the executive department to play around with public funds was “tantamount to surrendering the power of the purse.”

More lump sums

Rafael Mariano, KMP chair, said the new definition of savings would allow more lump-sum allocations  to be susceptible to corruption.

The Department of Budget and Management has proposed a P2.6-trillion national budget next year. In a letter to Speaker Feliciano Belmonte Jr. on Aug. 1, Budget Secretary Butch Abad said savings should be defined as “portions or balances of any programmed items of appropriations… which have not been released or obligated.”

The General Appropriations Acts from 2011 to 2013 defined savings as funds “still available after the completion, or final discontinuance, or abandonment of the work, activity or purpose for which the appropriation is authorized.”

In the BMAM statement, former House appropriations committee vice chair Bienvenido Abante said the new definition “would give the President or the budget secretary full discretion to stop any project after the budget has been approved and realign it somewhere else as they see fit.”

Mariano said Malacañang and its allies in Congress were pushing to redefine savings “to suit their own fiscal agenda.” The redefinition was apparently made following the Supreme Court decision that declared unconstitutional the Disbursement Acceleration Program, a creation of Abad.

Irrigation in Manila

Mariano said the redefinition of savings would make the national budget open to abuse. He cited two allocations—P6 billion for the Department of Agrarian Reform’s land acquisition and distribution program, and P9.8 billion for the office of de facto Agriculture Secretary Kiko Pangilinan for irrigation projects in Metro Manila.

BMAM said next year’s budget was critical “for those seeking elective posts in 2016.”

With the redefinition of savings, BMAM said “the administration can shift funds to areas controlled by its allies and choke funding to areas whose incumbent officials are members of the opposition.”

KMP said that with the law on agrarian reform expiring, it wondered where the P6.3 billion for land purchase and distribution would go.