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VETO MESSAGE IN 2017 BUDGET

Duterte bars gov't agencies from directly spending income


President Rodrigo Duterte has barred government agencies from directly using their income next year, according to his veto message attached to the General Appropriations Act (GAA) or the national budget for 2017.

In his his message that was sent to the House of Representatives on December 22, Duterte said the GAA for 2017 will be reduced if he will allow government agencies to directly spend their income.

"In keeping with the powers vested in me by the Constitution, I am compelled to directly veto the new special provisions which allow agencies to directly use their income," Duterte said.

"Under existing budgeting laws, rules and regulations, all income of agencies shall accrue to the General Fund of the National Government, unless authorized by a separate substantive law," he added.

Duterte pointed out that "all income constitute an integral and intrinsic part of the revenue and financing sources of the National Government previously submitted to the Congress. Hence, including  new special provisions in this Act which authorize agencies to use their income will effectively reduce the financing sources of this year's GAA and at the same time, unjustifiably increase the appropriations of these agencies."

Duterte vetoed the use of income as stated in the following provisions:

  • Other Executive Offices (OEO)-Energy Regulatory Commission (ERC), Special Provision No.1, "Use of Income", Volume I-B, page 295
  • Commission on Elections (COMELEC), Special Provision No.3, "Use of Income", Volume I-B, page 497
  • Department of Labor and Employment (DOLE)-Professional Regulatory Commission (PRC), Special Provision NO.1, "Use of Income", Volume I-A, page 1319

Duterte said there is no substantive law for the following:

  • Earmarking of proceeds from tariff on rice importation by the Department of Agriculture, stated under DA-Office of the Secretary (OSEC), Special Provision No. 13, "Proceeds from Tariff on Rice Importation", Volume lA, page 90
  • Use of collections from immigration fees by the Bureau of Immigration (BI) under Department of Justice (DOJ)-BI, Special Provision No.2, "Collection from Immigration Fees", Volume I-A, page 1252.

"Allowing these agencies to set aside and earmark said proceeds and collections will, in effect, result to double programming and increase our expenditure program without the corresponding revenue sources," Duterte said.

The President also said that he vetoed the use of express lane charges collected by the BI under DOJ-BI, Special Provision No.3, "Express Lane Charges", Volume I-A, page 1252 for payment of salaries of casual and contractual personnel, confidential agents and job employees, augmentation of salaries of personnel who render services beyond office hours, and payment of health insurance premium.

"It is important to note that said agency [has] been provided appropriations for overtime pay for FY 2017 and that, a total of seven hundred (700) positions have been created to address the issue on shortage of personnel of the agency. Without a separate substantive law as legal basis, the collected fees from the express lane charges should now be deposited as income of the General Fund," Duterte said.

In the same message, Duterte put the P8 billion allocated for the free tuition in state universities and colleges under conditional implementation to prioritize poor yet deserving students. —KBK, GMA News
 

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