Republic of the Philippines &
HOUSE OF REPRESENTATIVES -° RECEIVED

Quezon City a ¢,SEP 11
18 CONGRESS Heid 7
First Regular Session
nouse piixo. 4523

Introduced by REP. EVELINA G. ESCUDERO

EXPLANATORY NOTE

It is the policy of the State to endeavor and pursue a debt management system that will be made
available to public scrutiny and subject to strict adherence to existing pertinent laws, rules and regulati

By the end of 2018, our national government's debt was reported at an estimate of Php 7.3 trillion.
Historically, it was at Php 6.603 trillion by the end of 2016, Php 5.267 trillion in 2010 and at Php4.645 trillion in
20042

‘The appalling increase of trillions of pesos per government administration assuming office calls for a
reassessment on the ways our government handles our country's debt management which undeniably resulted in
an unprecedented and unreasonable growth. Debt servicing has been getting the highest budgetary allocation of
25% at the average, more or less, of our national budget since the 1980s, leaving other sectors that require
funding continue to suffer and these include education, health, science and technology, and other government
programs on social progress and human development.

This bill therefore seeks to provide an effective check and balance on the executive power to cou
‘and guarantee loans. Such power if left unchecked and unbridled shall continue, as it has been, to be detrimeniai
to the economic and social interest of our country given its limited resources. That Congress, as an independe:
and a co-equal branch of government, must effectively pursue and insist on its power and presog.
approve, determine and allocate the national budget of the government.

In view of the foregoing, passage of this bill is sincerely sought.

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EVELINA G. ESCUDERO.

' See “Government debt reaches 27.3-T in 2018", CNN Philippines Staff © CNN Philippines, published on 30 January
2019,
2d.


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

18 CONGRESS
First Regular Session

4523

HOUSE BILL Nt

Introduced by REP. EVELINA G. ESCUDERO

AN ACT
CONSTITUTING A CONGRESSIONAL OVERSIGHT COMMITTEE ON DEBT MANAGEMENT 10.
LOOK INTO ALL FOREIGN AND DOMESTIC BORROWINGS NEGOTIATED, CONTRACTED OR
GUARANTEED BY THE PRESIDENT ON BEHALF OF THE PHILIPPINES AS WELL AS THOSE.
BY THE GOVERNMENT OR GOVERNMENT OWNED AND CONTROLLED CORPORATIONS
AND FOR OTHER PURPOSES

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

SECTION 1. Declaration of Policy. - In accordance with the constitutional prescription on transparency
and accountability, the State shall endeavor and pursue a debt management system that shall be made available
to public scrutiny and subject to strict adherence to existing pertinent laws and rules and regulations

The State shall likewise ensure the most appropriate use of its limited resources bearing in mind the
constitutional mandate of giving priority to education, health, science and technology, acceleration of social
progress and promotion of total human liberation and development.

SEC. 2. The Congressional Oversight Committee. - A Congressional Oversight Committee on Det
Management, hereinafter referred to as the Committee, is hereby constituted in accordance with the provision
of this Act. The Committee shall be composed of the Chairpersons of the Committee on Ways and Means of the
Senate and the House of Representatives and three (3) additional members from each chamber to be designated
by the Senate President and the House Speaker, respectively. One (1) of the said three (3) additional members
shall come from the minority members of each chamber. The Congressional Oversight Committee constitutes!
under Section 8, paragraph c) of Republic Act No. 8182 shall cease to exist and is hereby replaced by the
Committee.

SEC. 3. Functions and Duties of the Committee. - The Committee shall among others, in aid of

legislation:
a, Monitor and ensure the proper implementation of all laws, implementing rules and
regulations, and executive issuances relating to foreign and domestic borrowings such as, but
not limited to, Republic Act Nos. 4860 and 8182;
b. Review all documents relating to contracts, guarantees and negotiations on foreign and
domestic borrowings.
c. Review all subsisting contracts and guarantees on foreign and domestic borrowings; and
d. Determine that the power of the President of the Republic, the government and governmet
‘owned and controlled corporation to negotiate, contract and guarantee foreign and domestic
borrowings is reasonably and legally exercised.

The phrase foreign and domestic borrowings shall refer to such borrowings or loans negotiated,
1


contracted and/ or guaranteed by the President on behalf of the Philippines, the government or government
owned and controlled corporations.

SEC. 4. Requisite Authority of the Committee. - In furtherance of the above enumerated functions ar
duties of the Committee, the Committee is empowered to require all government agencies concerned, inclu
the Office of the President, the submission of all pertinent information and data on foreign and domestic
borrowings. Provided, however, that information or data that are privileged shall be furnished the Committee
only in Executive Session.

SEC. 5. Separability Clause. - If any provision of this Act or the application of such provision to any
person or circumstance is declared invalid, the remainder of the Act or the application of such provision to other
persons or circumstances shall not be affected thereby.

SEC. 6. Repealing Clause. - All laws, decrees and orders or parts thereof inconsistent herewith are
deemed repealed or modified accordingly.

SEC. 7. Effectivity. - This Act shall take effect after thirty (30) days following the completion of its
publication in the Official Gazette or in two (2) national newspapers of general circulation.

Approved,