MANILA – The Philippine government is now operating under a “reenacted†budget due to the failure of President Gloria Macapagal-Arroyo to sign the 2010 national budget equivalent to $300 million, according to a Malacanang official.
Gary Olivar, the deputy presidential spokesman for economic affairs, explained that under this setup, the government is using the 2009 national budget, as mandated by law, to maintain operations like paying the salaries of the estimated 1.2 million civil servants as well as continue providing basic services to the people.
However, Olivar pointed out President Arroyo is not to blame for her failure to sign the new budget for 2010 which was already approved by the Senate and the House of Representatives.
Lawmakers noted this was the first time that the House and the Senate have approved the national budget before the December 30 deadline set by law.
However, House Speaker Prospero Nograles admitted that the bill is still being printed, thus resulting in the delay in its transmission to Malacanang.
Olivar said the President has assured lawmakers that she would review and act on the national budget as soon as she receives a copy of the bill. He said: “If it’s acceptable, she will sign it.â€
Some legislators have again expressed concern that, under a reenacted budget, the administration would have a lot of leeway in spending funds for its own purposes, especially with the national elections just five months away in May this year.
Legislators explained many of the projects, especially for infrastructure under the old or 2009 budget, have already been implemented or completed. As such, these can no longer be used for the same purposes under a reenacted budget.
But, at the same time, legislators said the President now has the authority to “realign†these funds for other purposes without seeking the approval of Congress.
In particular, the opposition expressed fears that President Arroyo might use these funds to boost the candidacy of administration candidates running in the coming May polls, like former defense secretary Gilberto Teodoro, the presidential standard bearer of the ruling Lakas-Kampi Christian Muslim Democrats.
It is also possible, the opposition said, that the President herself would use these funds to promote her own bid to run for Congress and represent her home province of Pampanga in Central Luzon.
For instance, Congressman Teofisto Guingona 3rd of Misamis Oriental province in Mindanao, pointed out that, in effect, the President has “impounded†by budget. In doing so, he said the government is playing havoc on the proper budgeting procedures as set by Congress.
Guingona said this resulted in the scrapping of an allocation totaling $8 million for a nationwide campaign against the resurgence of the dreaded ailment tuberculosis scheduled for this year.
However, Olivar belied these fears and concerns as he explained the reenacted budget would merely serve to keep the government running due to the failure to have the 2010 national budget enacted on time.
Olivar also assured the government would be operating under a reenacted budget only for the month of January this year.





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