EIGHTEENTH CONGRESS OF THE )

REPUBLIC OF THE PHILIPPINES )
First Regular Session )
HOUSE OF REPRESENTATIVES
H.B.No,_4358

Introduced by Rep. Vilma Santos-Recto
6" District of Batangas

AN ACT
MANDATING THE SECRETARIES OF THE DEPARTMENT OF FINANCE,
NATIONAL ECONOMIC AND DEVELOPMENT AUTHORITY, AND
DEPARTMENT OF BUDGET AND MANAGEMENT, AND THE GOVERNOR OF
THE BANGKO SENTRAL NG PILIPINAS, TO APPEAR SEMI-ANNUALLY
BEFORE CONGRESS TO REPORT ON THE STATUS AND DIRECTIONS OF THE
FISCAL AND MONETARY POLICIES OF THE STATE

EXPLANATORY NOTE

The volatile nature of the global economy demands prompt and decisive actions from
the fiscal managers of the government. In this regard, the fiscal and monetary policies of the
government are subjected to periodic changes, in accordance with the prevailing economic
climate.

The fiscal and monetary policies of the country have a great bearing on the state and
direction of the country’s economy as these policies directly relate to the government’s goals
for employment and economic development, among other factors. For instance, the state
policy on the valuation of the Peso directly affects the borrowings, savings and expenditures
of the government. Equally affected are the operations of the private sector, particularly those
in the export and business process outsourcing industries which impacts on employment and
foreign exchange reserves.

There is also a great need to closely monitor the accumulating public debt. Not fully
included in the debt picture are contingent liabilities arising from sovereign loans or
guaranteed obligations in PPP projects, and those embedded in various joint ventures. There
is a need to have a reliable running estimate on how much these costs, otherwise we may be
blindsided.

Currently, the Department of Finance (DOF), the National Economic and
Development Authority (NEDA), the Department of Budget and Management (DBM), and
the Bangko Sentral ng Pilipinas (BSP) report to Congress as part of the Development Budget
Coordination Committee (DBCC) during the legislative deliberation of the annual
government budget. However, their respective reports are usually limited to the inputs


required for the budget analysis. Hence, Congressional oversight of government fiscal
management has been limited at the expense of fiscal discipline and accountability.

This bill provides for a transparency measure for the fiscal, monetary and economic
agencies of the government by requiring their heads to appear before both houses of Congress
semi-annually, to report on the state and the directions of the fiscal and monetary policies of
the government. It also requires these agencies to submit a written report to the Committees
‘on Appropriations, Ways and Means, Economic Affairs, and Banks and Financial
Intermediaries of the House of Representatives, and the Committees on Finance, Ways and
Means, Economic Affairs, and Banks, Financial Institutions and Currencies of the Senate,
which shall include a discussion of the formulation and implementation of their respective
policies. The reports submitted to Congress shall also be made available to the public by
means of downloadable copies in their respective official websites.

Hence, the immediate approval of this bill is earnestly sou,



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EIGHTEENTH CONGRESS OF THE )

REPUBLIC OF THE PHILIPPINES )
First Regular Session D
HOUSE OF REPRESENTATIVES
435
H.B. No. J

Introduced by Rep. Vilma Santos-Recto
6" District of Batangas

AN ACT
MANDATING THE SECRETARIES OF THE DEPARTMENT OF FINANCE,
NATIONAL ECONOMIC AND DEVELOPMENT AUTHORITY, AND
DEPARTMENT OF BUDGET AND MANAGEMENT, AND THE GOVERNOR OF
THE BANGKO SENTRAL NG PILIPINAS, TO APPEAR SEMI-ANNUALLY
BEFORE CONGRESS TO REPORT ON THE STATUS AND DIRECTIONS OF THE
FISCAL AND MONETARY POLICIES OF THE STATE

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

Section 1. Short Title. - This Act shall be known as the “Fiscal and Monetary Report
Act”.

Sec. 2. Declaration of Policy. — It is hereby declared the policy of the State to submit
to full public disclosure all its transactions involving public interest, as provided for under
Section 28, Article II of the 1987 Constitution; and recognize the significance of fiscal and
‘monetary policies as factors affecting the development directions of the country.

Sec. 3. Appearance before Congress. ~ The Secretaries of the Department of Finance
(DOF), National Economic and Development Authority (NEDA), Department of Budget and
Management (DBM), and the Governor of the Bangko Sentral ng Pilipinas (BSP) shall
appear before the Committees on Appropriations, Ways and Means, Economic Affairs, and
Banks and Financial Intermediaries of the House of Representatives, and the Committees on
Finance, Ways and Means, Economic Affairs, and Banks, Financial Institutions and
Currencies of the Senate, on or before the last Tuesday of March and September of each
year, to report on the status and directions of the fiscal and monetary policies of the

government, economic developments and prospects for the future, taking into account past
and prospective developments in employment, unemployment, production, investment, real
income, productivity, exchange rates, debt, international trade and payments, and prices.

Sec. 4. Reports, —



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(a) The Secretary of DOF shall submit to the Committees specified in Section
3 of this Act a written report, on the conduct of fiscal policy, which shall
include, but shall not be limited to the following:

i, Consolidated Public Sector Financial Position;
ii, National Government Debt Service Expenditures;

Foreign and Domestic Borrowings;

iv. National Government Revenues;

v. National Government Financing Program and Outstanding
Debt, and;

vi. Other information that may be requested by the Committees
specified in Section 3 of this Act.

(b) The Secretary of the NEDA shall submit to the Committees specified in
Section 3 of this Act written reports regarding developments and prospects
in the macroeconomy and labor market which shall include, but shall not
be limited to the following:

i. Gross Domestic Product and its components;

Labor and Employment;

Poverty statistics;

iv. Family Income and Expenditure; and
v. Other information that may be requested by the Committees
specified in Section 3 of this Act.

(©) The Secretary of the DBM shall submit to the Committees specified in
Section 3 of this Act a written report, which shall include, but shall not be
limited to the following:

Status of Expenditure Program;

Status of Disbursement;

Debt Service Expenditures;

iv. Outstanding Domestic and Foreign Debt from Regular and

‘Assumed Liabilities of the National Government; and
v. Other information that may be requested by the Committees

specified in Section 3 of this Act.
(d) The Governor of the BSP shall submit to the Committees specified in
Section 3 of this Act a written report, which shall include, but shall not be
limited to the following:


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i. Monetary aggregates and their components;

ii, Purchases and sales of foreign exchange and of the
international reserves of the Bangko Sentral;
iii. Balance of payments of the Philippines;
iv. Indices of consumer prices and of import and export prices;
v. Volume and value of exports and imports;
Accounts of the Bangko Sentral and of other banks;
Government receipts and expenditures and on the status of
the public debt, both domestic and foreign;
viii. Major legal and administrative measures adopted by the
Government and the Monetary Board during the year which

relate to the functions or operations of the Bangko Sentral or
of the financial system; and

ix. Other related information that may be requested by the
Committees specified in Section 3 of this Act.

Sec. 5. Public Access to Information. ~ The DOF, NEDA, DBM, and BSP shall make
available copies of the reports submitted to Congress in their official websites within seven
(7) working days following the submission of their respective reports.

Sec. 6. Separability Clause. - If any provision of this Act shall be held
unconstitutional, the remainder of the Act not otherwise affected shall rem
and effect.

Sec. 7. Repealing Clause. ~ All existing laws, presidential decrees, executive orders,
proclamations or administrative regulations that are inconsistent with the provisions of this
Act are hereby amended, modified, superseded, or repealed accordingly.

Sec. 8. Effectivity. - This Act shall take effect fifteen (15) days after its publication in
the Official Gazette or in at least two (2) newspapers of general circulation.

in full force

Approved,