Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

3912

HOUSE BILL No.

Introduced by BAYAN MUNA Representative CARLOS ISAGANI T. ZARATE

AN ACT
CREATING THE CONGRESSIONAL OVERSIGHT COMMITTEE ON THE
NATIONAL BUDGET

EXPLANATORY NOTE

‘The delineation of powers of the legislative and executive branches of the government in the
national budget is clearly defined in the different provisions of the 1987 Constitution. Section 22,
Article VII said that the President shall submit to the Congress the proposed budget, Section 24
Article VI gave to Congress the power of the purse with “all appropriation, revenue or tariff bills
bills authorizing increase of the public debt, bills of local application, and private bills to originate
exclusively in the House of Representatives” and “the Senate may propose or concur with
amendments.”

Further, the Executive Branch is tasked with the implementation of the appropriation law passed by
Congress, through Section 17, Article VII that said, “The President shall have control of all the
executive departments, bureaus, and offices. He shall ensure that the laws be faithfully executed.”

Aside from these, several provisions for checks and balances for the three branches of the
government are in place in the Constitution. Rules for national government budgeting were further
provided in Book VI of the Administrative Code of 1987 or Executive Order No 292.

RA 10155 or the General Appropriations Act of 2012, Section 94 provided for the creation of Joint
Congressional Oversight Committee on Public Expenditures “which shall primarily monitor that
the government funds are spent in accordance with the law”. The Committee which shall be co-
chaired by the Senate Chairperson of Finance and the House of Representatives Committee on

Appropriations was last chaired by Senator Francis Escudero”,

President Aquino’s veto message for RA 10155 dated December 15, 2011, citing the Supreme Court
ruling in the case ABAKADA Guro Party List et, Al. vs. Cesar V. Purisima et. al (562 SCRA 287) said
that the post enactment measures such as the Committee formation shall be confined to: “()
scrutiny based primarily on Congress' power of appropriation, its power to ask heads of
departments to appear before and be heard by either of its Houses and in any matter pertaining to
their departments, and its power of confirmation; and (ji) investigation and monitoring of the
implementation of laws pursuant to the power of the Congress to conduct inquiries in aid of
legislation.”*

* Section 94, General Provisions, Republic Act No 10155 GAA 2012, Oficial Gazete, Vol 107. No 1, p.159.
= Congressional Oversight, Ad hoc Committees, 16th Cangress (as of May 2015), htt://wnrw.senate gov.ph/committee/oversight. mem
+ President's Veto Message, December 15, 2011, Republic ct No 10155 GAA 2012, Offical Gazette, Vol 107. No 1, p. 1612


Despite all these, the issues of pork barrel, priority development assistance fund, and Disbursement
Acceleration Program (DAP) exposed the problems and weaknesses in the actual budget process.
PDAF, DAP and other similar discretionary funds did not only contravened the law but more
importantly took away huge amount of public funds intended for social services for the people and
realigned to projects, programs, activities and areas upon the individual discretion of selected
government officials.

‘The Supreme Court not only declared DAP and PDAF as against the constitution but pointed out
the excesses of the executive branch in realigning the budget for DAP, Budget Secretary Benjamin
Diokno in 2012 said that “Congress has surrendered its power of the purse, allowing the President
to slowly but steadily expand executive

While the executive reports to Congress during the budget deliberations and before the budget
approval, information on how they implement the budget approved by Congress is difficult to come
by once the budget is approved.

Congress needs to strengthen its oversight function in the budget process to enhance the
effectiveness of the national budget towards the country’s development goals and people's well-
being: Instead of an Ad Hoc Committee created in every GAA we need a strong, permanent,
Congressional oversight committee with defined powers.

‘This bill proposes the creation of the permanent Congressional Oversight Committee on the
National Budget and defines the functions of the Committee to help stamp out corruption and
ensure effective delivery of services to the people. Congress has all the right to perform its oversight
function on laws it has passed including the appropriation law it passes every year.

In view of the forgoing, the immediate passage of this bill is earnestly sought.

Approve,

J

ney EaROSTASATZapare
Bayan Mina Party Lt

* Diokno, Benjamin E: Giving back to Congress the power ofthe Purse Sep 29, 2012, http://uwnw.econupd.eduph/perse/p=1605


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

3912

HOUSE BILL No.

Introduced by BAYAN MUNA Representative CARLOS ISAGANI T. ZARATE

AN ACT
CREATING THE CONGRESSIONAL OVERSIGHT COMMITTEE ON THE
NATIONAL BUDGET

Be it enacted by the Senate and the House of Representatives of the Philippines in Congress assembled:

SECTION 1. Declaration of Policy. It is hereby declared the policy of the State to formulate and
implement a National Budget that is an instrument of national development, reflective of national
objectives, strategies and plans. Public funds must be effectively and efficiently allocated for the
actual needs of the people. The Congress which approves the budget must exercise its mandate to
ensure that the appropriation law it passed shall be effectively implemented and faithfully executed
according to the General Appropriations Act it approved

SECTION 2. Creation of the Congressional Oversight Committee on the National Budget.
‘There is hereby created a Congressional Oversight Committee on the National Budget. The
committee will replace the Joint Congressional Oversight Committee on Public Expenditures.

SECTION 3. Composition. ‘The Congressional Oversight Committee on the National Budget
shall be co-chaired by the Chairperson of the Committee on Finance of the Senate and the
Chairperson of the Committee on Appropriations of the House of Representatives. The President
of the Senate and the Speaker of the House of Representatives shall each designate seven (7)
Senators and seven (7) Members of the House of Representatives as members of the Congressional
Oversight Committee on the National Budget.

Provided, that the minority shall have one (1) seat each from the Senate and the House of
Representatives.

SECTION 4. Functions. ‘The Congressional Oversight Committee on the National Budget shall
have the following functions:

Conduct hearing and investigations in aid of legislation on post budget enactment ma

pertaining to the national budget;

b. Require reports from government agencies on budget implementation;

Summon implementors of the programs, activities and projects (PAPs) included in the
general appropriation acts;
Recommend prosecution of erring government officials;

¢. Come out with studies to improve the budget process; and

£ Subpoena and contempt powers.

ers



SECTION 5. Repealing Clause. — All laws, executive and administrative orders or parts thereof,
inconsistent with any provision of this Act, including Section 94 of Republic Act no 10155, are
hereby repealed or modified accordingly.

SECTION 6. Effectivity. ‘This Act shall take effect after fifteen (15) days following the completion
of its publication in the Official Gazette.

Approved,