DND denies it has lump sum budget

THE Department of National Defense on Thursday denied former Senator Panfilo Lacson’s claim that it has P66.4 billion lump sum in the budget.

Philippine Daily Inquirer reported early this week that the DND has P66.4 billion lump sump in the national budget for this year.

Lacson claimed that an amount of P424 billion of lump sum appropriations is included in this year’s budget.

“The DND does not have P66.4 billion as a lump sum as stated in the article, but rather, the said amount allocated for the DND is included in the lump sum appropriations under the General Appropriations Act,” Defense spokesperson Dr. Peter Paul Galvez said in a statement on Thursday.

Galvez said their budget is “clearly defined.”

“The said amount allocated for the DND is included in the Lump Sum Appropriations under the GAA (General Appropriations Act). This fund, amounting to P55.4-billion, is held by the DBM (Department of Budget and Management),” he said.

Galvez said most of the funds are for the pensions of veterans and retired personnel.

“Since the total number of veterans and retirees would be difficult to predict accurately because of personal discretion and individual preferences, the fund is designed to cover the gap in the allocated budget for pensions and benefits,” he said.

Out of the mentioned appropriations, Galvez said a total of P2.018 billion is for unfilled positions under the miscellaneous personnel benefit fund in the 2015 budget.

A total of P10 billion is for unprogrammed projects under the Armed Forces Modernization Program.

“This amount is meant for new modernization projects that are still awaiting approval,” Galvez said.

Also included in the DND budget is the pension gratuity fund worth P42.377-billion. Galvez said that P32.48-billion of this is for the General Headquarters while P9.897-billion is for the Philippine Veterans Affairs Office.

“An amount of P10-billion is also provided for in the GAA to fund the benefits of military and civilian personnel of the AFP, who will avail of optional retirement from the service, ” Galvez said.

He said that the DND is “transparent with all of its programs, most especially its budget appropriation.”