Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
Second Regular Session

HOUSE BILL No. 6504

Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.

EXPLANATORY NOTE

The fiscal and monetary policies of the nation hold a great bearing to the
country's economy. For instance, state policy on the Peso’s value, exports, imports,
and tariffs affect market forces and the government's expenditures. The operations
of the private sector are heavily reliant on market forces in predicting its purchase of
resources and handling of transactions.

In view of this responsibility, the Department of Finance (DOF) and the
Bangko Sentral ng Pilipinas (BSP) deliver reports to Congress as part of the
Development Budget Coordination Committee during the regular deliberation of the
annual government budget. However, these reports do not offer a larger view of the
Philippine economy, seeing it as restricted to planning and analyzing the annual
budget. Hence, there is a gaping oversight in government towards proper fiscal
management not only for the state but also for the private economy. As highlighted in
Article !| Section 20 of the 1987 Constitution, “the State recognizes the indispensable
role of the private sector, encourages private enterprise, and provides incentives to
needed investments.”

Further accountability is also expected of the government in accordance with
Article |! Section 28 of the 1987 Constitution: “Subject to reasonable conditions
prescribed by law, the State adopts and implements a policy of full public disclosure
of al its transactions involving public interest.” In the interest of better monetary
policies, transparency and public interest, the DOF and BSP must be made
accountable beyond the government's budgetary needs. Hence, it is the intent of this
bill to rectify that.

This bill seeks to require secretaries of the DOF, Department of Budget and
Management (DBM), National Economic and Development Authority (NEDA), and
BSP to report to Congress bi-annually on the state and direction of the government's
fiscal and monetary policies, economic developments, and prospects for the future.

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

LUIS R JUND MURAY” F. VILLAFUERTE, JR.


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
Second Regular Session

HOUSE BILL No.6504

eS

Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.

————

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 BIANNUALLY
BEFORE A JOINT SESSION OF THE CONGRESS TO REPORT ON THE
STATUS AND DIRECTIONS OF THE FISCAL AND MONETARY POLICIES OF
THE STATE

SECTION 1. Short Title. - This Act shall be known as the “Fiscal and Monetary
Report Act of 2017".

SECTION 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 Article Il, Section 28 of the 1987 Constitution, and
recognize the significance of fiscal and monetary policies as factors affecting the
development directions of the country.

SECTION 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 biannually before a joint
session of Congress to be attended by 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, international trade and
payments, and prices.


SECTION 4. Reports. —

(a)

(b)

(c)

(a)

The Secretary of the DOF shall submit a written report to the
Committees specified in Section 3, a discussion of the conduct
of fiscal policy which shall include, but not limited to the
following:
i. Consolidated Public Sector Financial Position;
ii. National Government Debt Service Expenditures;
iii. 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;
The Secretary of the NEDA shall submit written reports to the
Committees specified in Section 3, regarding developments
and prospects in the macroeconomy and labor market which
shall include the following:
i Macroeconomy
1. Gross National Income
2. Net Primary Income
3. Gross Domestic Product and its components
ii. Labor Market
1. Unemployment
2. Youth Unemployment
3. Underemployment
4. Underemployment in Areas Outside of NCR
(AONCR)
ii, | Other information that may be requested by the
Committees specified in Section 3;
The Secretary of the DBM shall submit a written report to the
Comme specified in Section 3 on the following:
Status of the Expenditure Program;
ii, Status of Disbursement;
ii, Statement of Appropriations, Allotments, Obligations
and Balances; and
iv. Other information that may be requested by the
Committees specified in Section 3;
The Governor of the Bangko Sentral shall submit a written
report to the Committees as specified in Section 3, covering
dcr data on the following:
Monetary aggregates and their components;
i. 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;

vi Financial status of the Bangko Sentral and the banking
industry;

vii. 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 systems; and

viii. | Other related information that may be requested by the
Committees specified in Section 3 on matters pertaining
to the monetary policies of the government and/or the
‘economic development of the country

SECTION 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.

SECTION 6. Implementing Rules and Regulations. - The DOF, NEDA, DBM,
and BSP shall, individually or jointly, promulgate their respective implementing
rules and regulations and other issuances as may be necessary to ensure the
effective implementation of this Act within sixty (60) days from its effectivity.

SECTION 7. Separability Clause. — If any provision of this Act shall be held
unconstitutional, the remainder of the Act not otherwise affected shall remain in
full force and effect.

SECTION 8. 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.

SECTION 9. 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.

Approved,