HOUSE OF REPRESENTATIVES
Republic of the Philippines
Quezon City, Metro Manila

SEVENTEENTH CONGRESS
First Regular Session

House si. no4652

Introduced by Gabriela Women’s Party
Representatives EMMI A. DE JESUS and ARLENE D. BROSAS,
Bayan Muna Partylist Rep. Carlos Isagani Zarate,
Anakpawis Partylist Rep. Ariel Casilao,

ACT Teachers Partylist Reps. Antonio Tinio and France Castro and
Kabataan Partylist Rep. Sarah Jane Elago

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, in the past, 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 need to be implemented in urgent or crisis situations, For 2017, the unprogrammed
appropriations amounted to Php 87.5 billion

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 executie 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 spend however it
pleases.

The setting aside and allocation of unprogrammed funds in the government's annual budget

must therefore be stopped.
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EMMI A. DE JESUS
Gabriela Women’s Party

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Gabriela Women’s Party Anakpawis Partylist
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cxtthcayoiiee SARAAELAGO

Bayan Muna Partylist Kabataan partylist

NTONIOG, TINI FRANCE LICASTRO

ACT Teachers Partylist AC)/feachpts Partylist


HOUSE OF REPRESENTATIVES
Republic of the Philippines
Quezon City, Metro Manila

SEVENTEENTH CONGRESS
First Regular Session

HOUSE BILL no 4652

Introduced by Gabriela Women’s Party
Representatives EMMI A. DE JESUS and ARLENE D, BROSAS,
Bayan Muna Partylist Rep. Carlos Isagani Zarate, Anakpawis Partylist Rep. Ariel
Casilao,
ACT Teachers Partylist Reps. Antonio Tinio and France Castro and
Kabataan Partylist Rep. Sarah Jane Elago

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 A ct,
“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.