Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
FIFTEENTH CONGRESS
First Regular Session
HOUSE BILL. NO.
3071
Introduced
by AKBAYAN
Representatives
Walden
F. Bello and Kaka J. Bag-ao
EXPLANATORY
NOTE
The Budget Process as provided
in Book VI of The Revised Administrative
Code of 1987
(Executive
Order
No.
292)
is the
primary
implementing
law
on
the
powers
and
limitations of
both
the
executive
and
legislative
branches
in
the
preparation,
authorization
and implementation
of the General Appropriations
Act.
Unfortunately,
this law heavily borrows
from
Presidential
Decree No. 1177 which was passed at a time
when the power of the Executive was heavily favored
at the cost of the independence
and power
if the
Legislative
Branch of the Government.
At the same time,
current
provisions
of the Revised Administrative
Code expand on the limitations
of Congress in
the Budget Process, providing
for stricter
guidelines than that contemplated
under the
Constitution,
which
took
effect
after
the
Code.
While
the
Constitution
sees the
Congress as an active,
not
passive participant
in the
Budget
Process, the
Revised
Administrative
Code
unnecessarily
put
shackles
on
the
power
of
Congress
in
determining
the
priorities,
direction
and vision
of government
as expressed
in the
substance
of the
Annual
Budgetary
Appropriations,
contrary
to the
very
spirit
and
purpose of Congress as the bearer of the Power of the Purse as enshrined
in the 1987
Constitution.
This Act seeks and proposes
to amend or repeal certain
provisions
of Book VI of the
Revised Administrative
Code which reflects the Martial
Law predisposition
to favor the
Executive at the expense of the Legislative in the exercise of powers to determine
the
Budget Process. It seeks to reflect the spirit and noble intent of the 1987 Constitution
to
remove
all vestiges
of unmitigated
Executive
might
and restore
balance
among
the
three
branches
of
Government
by
restoring
Congress
as a viable,
reliable
and
independent
institution
it
is purported
to
be as, indeed,
the
"House
of
People's
Representatives",
their
voices
in
Congress
assembled,
the
people's
sanguine
and
ultimate
guard against the excesses of the Government,
constantly
reminding
it of its
social contract
with its most precious and principal component,
the People, constituting
the essence of democracy
and the end-all and be-all pf any State or Government
which
exists.
As the
people's
representatives
in Government,
Congress, as the
legislative,
must
reclaim
its old and sacred power
over the purse, its only
power
of check and
balance over government's
most powerful
arm, the Executive.
In so doing, this Act not only seeks to restore what was once was, but what was hoped
for
in the
dreams
of the
people's
march
to
freedom
and
democracy,
that
is,
a
government
of the people, for the people and by the people, constantly
reminded
that
no one man, or woman
for that matter,
bears exclusive power over the fate of millions,
and that at times, when the social contract
is violated,
the people have a multitude
of
recourses for remedy, including
an amendment
of the contract,
or gravely, but hopefully
remotely,
its absolute
rescission and abrogation.
We need not reach such a point if we


can
now
restore
what
was
once
rightfully
bestowed
upon
the
people
and
their
representatives
in Congress.
In general,
the
revised
Administrative
Code of 1987 limits,
in a manner
that
exceed
conditions
set forth
in the Constitution,
the powers that Congress ought to be able to
exercise in the course of budget
approval.
In general, the revised Administrative
Code
and the practice of budget execution
in recent years have been used by the Executive to
exercise resource allocation
powers that do not belong to it.
Specifically,
this
legislation
intends
to
achieve
the
following
reforms
in
budget
execution:
•
Ensure that the Executive branch of the Philippine
government
implements
the
budget
as specified
in the General Appropriations
Act, making the execution
of
the
budget
as approved
by Congress
mandatory
and
making
it
illegal
and
punishable
by law to do otherwise
without
Congressional authorization.
•
Ensure that permission
for budget deferral,
recision or impoundment
is secured
from
Congress in cases where
a fiscal crisis or other
contingencies
creates
a
situation
that makes it difficult
for the Executive to implement
the entire budget
as approved
in the
General
Appropriations
Act.
Where
fiscal difficulties
are
encountered,
the Executive will need to go to Congress with
a special message
from the President
requesting:
i) authorization
for new revenues or borrowings,
if
additional
authority
to
borrow
is
required,
ii)
authorization
for
the
impoundment,
recision or deferral of low priority
budget items.
•
Ensure that
savings generated
from
an unexpected
reduction
in the
costs of
achieving
project
and
program
objectives
supported
by
the
General
Appropriations
Act arre properly
accounted
for and reported
to Congress on a
quarterly
basis.
Ensure
further
that
unspent
amounts
from
lump
sum
appropriations
will be reverted to the general fund, and disbursed only following
fresh Congressional authorization.
•
Ensure that
in case of budget
re-enactment,
the budget
that
is re-enacted
is
identical to the budget of the previous year.
Thus, the budget that is re-enacted
is
not
a
lump
sum
that
can
be
disbursed
in
its
entirety
without
new
authorization.
The scope for disbursements
is only in as far as there
are still
unexpended
budgets,
and that the lump sum amounts
in the previous
budgets
can. be
allocated
only
based
on
duly
authorized
implementing
rules
and
regulations,
and
other
budgets
whose
expenditure
is specifically
authorized
through
other laws.
•
Ensure that,
in addition
to
receiving
reports
about
savings
generated
from
completed
projects,
programs
and activities.
Congress shall also be consulted
and fully
informed
by the
executive
regarding
the
implementing
rules
and
regulations
and guidelines
used by departments
and agencies in the allocation'
and disbursement
of lump sum budgets.
In this regard, no disbursement
of lump
sums shall be made until this process of consultation
is deemed
to have been
completed
through
a joint
resolution
by the two Houses of Congress.
Hence,approva~i~;7est'Y
sought.
WALDENPaeO