Senator Cynthia Villar described as “extraordinary” on Wednesday the P39-billion increase in the proposed budget of the Department of Finance (DOF) next year.
Villar noted that from P16 billion this year, the proposed budget of the DOF jumped to P55 billion next year.
“And I asked Senator (Ralph) Recto if I’m reading it well because how can a budget increase from P16 billion to P55 billion?” She asked during the continuation of the hearing of the Senate committee on finance on the proposed 2016 national budget.
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“That’s extraordinary and he said that you’re giving P30 billion to Land Bank and DBP (Development Bank of the Philippines) with that P30 billion so I thought that we’re merging DBP and LandBank. Are we merging DBP and LandBank?” she further asked.
Responding to the queries, DOF Secretary Cesar Purisima said there was a proposal to merge the two banks but said discussions are still ongoing.
Finance Secretary Cesar Purisima. FILE PHOTO
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“We’re waiting for an executive order, if I believe, to make that happen,” Purisima said.
“The capital is needed because the BSP has implemented Basel 3, which requires a higher level of capitalization for banks,” he added, still explaining the proposed budget of his department.
But the senator reminded Purisima that government-owned and -controlled corporations (GOCCs) like DBP and LandBank are not only supposed to make money but they should also help the country solve its problems.
“And if they are not doing that, I don’t think they deserve our support. They have to prove that they are supporting agriculture because they are GOCCs and they are supposed to help the county solves its problems and now we’re giving them P30 billion so they have to explain what they are going to do to make them worth our P30 billion,” said Villar, who chairs the Senate committee agriculture. IDL