Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
First Regular Session

3056

House Bill No.

Introduced by Representatives EMMI A. DE JESUS, LUZVIMINDA C. ILAGAN,
FERNANDO L. HICAP, NERI J. COLMENARES, CARLOS ISAGANI T. ZARATE,
JAMES MARK TERRY L. RIDON, and ANTONIO L. TINIO

EXPLANATORY NOTE

The people's clamour for the abolition of the pork barrel system has exposed the fact
that besides the PDAF, the government through the Congress also allocates standby
fund known as the “unprogrammed funds” flowing through the Executive and
Legislative branches of government through the Office of the President and is
beyond the oversight, control or auditing of Congress and independent
Commissions

The Department of Budget and Management has justified the practice of setting
aside unprogrammed funds in the General Appropriations Act as a necessary
appropriation because the budget may not be able to cover unforeseen needs
programs and/or projects that needs to be implemented in urgent or crisis situations

Unprogrammed funds are now demonstrably shown to be a patronage fund and a
huge source of personal enrichment of government officials who can tap into the
intricate cash flows. The outlay of unprogrammed funds is concealed from the
public's knowledge especially when officials invoke executive privileges insulating
disbursements from generally accepted methods of accounting. The public, upon
learning that unprogrammed funds can reach up to half of each year's legislated
budget including billions of pesos in other revenues beyond the purview of Congress,
such as the Malampaya revenues, rose in indignation, marching in protest against all
forms of discretionary funds under the pork barrel system.

Unprogrammed funds by its sheer amount when compared to programmed aspects
of funding can sap the national patrimony, reinforce foreign-indebtedness, corrupt
the political fiber, inflict hardships upon the citizens constrained to pay up more
taxes, fees, mark-ups and penalties in order to increase and augment a burgeoning
budget deficit. Unprogrammed funds circumvent the fundamental principle that
Congress holds the power of the purse.

The government must practice what it preaches to the general public with entreaties
for belt tightening. As it beseeches its citizens “Live within your means,” the


government should also ensure a disciplined, efficient, and effective budgeting and
management system in its deployment of resources that belongs to the people,
Congress must regain its mandate of allowing justified taxation through pro-active
representation, by swearing to never again hand over a blank cheque or an unlimited
credit card to the executive that can spend however it pleases.

The setting aside and allocation of unprogrammed funds in the government's annual
budget must therefore be stopped.

In view of the foregoing, the immediate enactment of this measure is earnestly
sought.

Z EMMI A. DE JESUS

Gabriela Women’s Party

LUZVIMINDA Q. ILAGAN Rep. AN’ 10 L. TINIO

abyieta Women's Party ACT Teachers Party-list

Loach bs,
Rep. weer ¢ RES Rep. FERNANDO Ly HICAP
Bhyan Muna Pe et Anakpawis Party-list

f. JAMES MARK TERRY L. RIDON non SxRtbs is NUT. 2ARATE

Kabataan Party-list Bayan Muna Party-list



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS,
First Regular Session

House Bill No. 3056

Introduced by Representatives EMMI A. DE JESUS, LUZVIMINDA C. ILAGAN,
FERNANDO L. HICAP, NERI J. COLMENARES, CARLOS ISAGANI T. ZARATE,
JAMES MARK TERRY L. RIDON, and ANTONIO L. TINIO

AN ACT
DEFINING “UNPROGRAMMED FUNDS” AND PROHIBITING LEGISLATORS
FROM APPROPRIATING FUNDS THEREFORE, AND FOR OTHER PURPOSES.

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

SECTION 1. Short Title. - This Act shall be known as the “Unprogrammed Funds
Prohibition Act of 2013”.

SECTION 2. Declaration of Policy. — It is hereby declared the policy of the State to
formulate and implement a national budget that is within the framework of
accountability, transparency, stability, performance and participation and is an
instrument of national development, reflective of national objectives, strategies and
plans.

SECTION 3. Definition of Unprogrammed Funds. - For purposes of this Act,
"Unprogrammed Funds” shall refer to standby appropriations in the General
Appropriations Act that are not supported by a specific source of financing at the
time of the approval of the General Appropriations Act.

SECTION 4. Prohibition. - The Executive Department, through the Department of
Budget and Management, and any member of the Legislature shall be prohibited
from appropriating for "Unprogrammed Funds”. Any amount realized from higher-
than-expected revenue collection and additional foreign project loan proceeds during
the fiscal year shall only be spent upon submission of a supplemental budget to
Congress.

SECTION 5. Separability. - If, for any reason, any section or provision of this Act is
held unconstitutional or invalid, no other section or provision shall be affected

SECTION 6. Repealing Clause. - All laws, decrees, executive orders, rules and


regulations, issuances or any part thereof inconsistent with the provisions of this Act
are hereby repealed or amended accordingly.

SECTION 7. Effectivity. — This Act shall take effect fifteen (15) days after its
Publication in at least two (2) national newspapers of general circulation.

Approved