House hits DBM in reso as ‘threat’ to fiscal autonomy

MANILA, Philippines—After the Supreme Court junked as unconstitutional the congressional pork barrel funds at the height of a corruption scandal, the House of Representatives wanted more fiscal autonomy in formulating its own budget and using its funds for its operation.

This was the spirit of House Concurrent Resolution No. 10 adopted by the chamber and authored by Speaker Feliciano Belmonte Jr., Majority Leader Neptali Gonzales II and committee on accounts chair Eleandro Jesus Madrona.

The Senate also has its counterpart resolution.

According to the resolution, the Department of Budget and Management (DBM) imposed policies formulated by the executive that “threaten its (Congress) independence, encroach on its exclusive domain, and violate the principle of separation of powers, upon which the entire fabric of our constitutional system is based.”

The resolution aims “to affirm that inherent in the legislative power of the Congress … is its freedom to manage and control its financial affairs, which includes the flexibility to formulate its own budget and utilize the funds appropriated for its operations.”

The resolution, however, was silent on what exactly are the restrictive policies of the DBM.

In a statement by Representative Madrona forwarded to Representative Gonzales, Madrona said Congress seemed to be under the mercy of the DBM in terms of its financial transactions and funds release.

“DBM controls the Congress in its financial transactions and release of funds. Congress is accountable for its funds which should only be disbursed in accordance with accounting and auditing rules and regulations,” Madrona said.

The resolution said despite its constitutional power in appropriations or its “power of the purse,” Congress in the past 15 years was only allocated with an average of half of one percent of the national budget.

“It is indispensable and appropriate that Congress… enjoy unimpeded freedom and optimum flexibility in fixing its budget and utilizing its funds for activities…” the resolution read.

The resolution listed the following as policies and procedures that Congress wants adopted for stronger fiscal independence:

According to the resolution, both Houses of Congress will have full autonomy in appropriations for their operations. The budget proposal will be submitted to the President through the DBM and will not be subject to the same process of evaluation, budgetary guidelines and standards imposed on other government agencies.

The proposed appropriation will be included in the annual budget without reduction, alteration or modification, the resolution said.

The appropriations for Senate and the House under the budget law will also be fully and automatically released with the corresponding Notices of Cash Allocation by the DBM at the start of the year without condition, limitation or restriction.

Congress will also enjoy flexibility in the utilizations of the funds.

The Senate President and Speaker of the House are also allowed to use their savings for the incurrence of obligations to enhance the operations and services of respective offices.

Congress leaders may also fix the salaries, allowances and benefits of their officials and employees, as well as address the budgetary requirements of their personnel, committees and service units.

Unexpended year-end balances of approved appropriations for Congress will also become valid and continue to be available for expenditure until fully spent.

Congress will be accountable and empowered to control cash allocations subject to accounting and auditing rules and regulations.

The fees, receipts and income received by Congress from other sources will also be deposited in an authorized local bank that will be made available for any function, project and activity.

Congress may also adopt rules and regulations over allocations, expenditure and utilization of funds for its operations, subject to accounting and auditing laws and rules.

Congress filed the resolution after the Supreme Court scrapped the discretionary Priority Development Assistance Funds (PDAF) at the height of a corruption scandal in the scheme of Janet Lim-Napoles.

It also declared as unconstitutional parts of the executive’s savings-impounding mechanism, the Disbursement Acceleration Program (DAP), that served as a source of funds for some congressional projects.