Malacañang signs P46.4-B 2006 supplemental budget into law

By JOSEFA L. CAGOCO, Reporter/BusinessWorld President Gloria Macapagal Arroyo finally signed Tuesday at 1:30 p.m. the P46.4-billion supplemental budget designed to augment government spending under the reenacted general appropriation of 2005. Budget Secretary Rolando G. Andaya, Jr. confirmed Tuesday that the supplemental budget, enacted into Republic Act (RA) 9358, was signed without ceremony, along with RA 9359, the P850-million standby fund for the clean-up of the oil spill in Guimaras, for the repatriation of migrant workers in Lebanon, and for support to the victims of Mayon Volcano’s recent restiveness. Malacañang submitted to Congress last July the P46.4-billion additional appropriation to augment spending under the reenacted P918.6-billion 2005 outlay, which falls short of the proposed P1.053-trillion national budget for 2006. The Senate passed the supplemental budget in mid-September, substantially preserving much of the allocations fixed by the House of Representatives the preceding month. Documents show the breakdown of the approved complementary budget of P46,426,524,000 is as follows: Department of Agrarian Reform (DAR -- P4.593 billion); Department of Education (DepEd -- P9.581 billion); Department of Interior and Local Government (DILG -- P1.375 billion); Depart-ment of Science and Technology (DoST -- P700 million); Depart-ment of Social Welfare and Development (DSWD -- P269.5 mil-lion); Department of Transportation and Communications (DoTC -- P1.608 billion); Commission on Elections (Comelec -- P730.236 million); miscellaneous personnel benefits fund (MPBF -- P4.923 billion); allocation to local government units (LGUs -- P1.82 billion); internal revenue allotment (IRA -- P14.844 billion); pension and gratuity fund (P4.865 billion); and calamity fund (P1.117 billion). With its budget, DAR will continue to implement the Comprehensive Agrarian Reform Program including P364.6 million for beneficiaries in the provinces of Guimaras, Iloilo and Negros Occidental. DepEd, meanwhile, will fill up vacant teaching posts, create new teaching and non-teaching positions, purchase textbooks and other instructional materials, rehabilitate new buildings, and fund a meal and milk feeding program for elementary education. The DILG will allocate its funds to hiring more jail guards and firemen, upgrading employee salaries, and paying pensions of injured and disabled police officers. The original proposed outlay for DoTC of P3.25 billion was slashed by P1.76 billion, the amount originally intended as equity rental payment for the Metro Rail Transit (MRT). Of the budget DoTC received, P1.49 billion is earmarked as subsidy to the MRT Line 3. Meanwhile, the Senate finance committee acceded to DoST’s request for P500 million for the development of a 22-hectare lot in the University of the Philippines Diliman campus intended to house national research institutes, in addition to its own P200 million. Comelec’s budget is for the preparation of next year’s polls. MPBF covers government deficiencies in premium contributions to the Government Service Insurance System (P3.3 billion), increase of the national government share in premium rate of the Employees Compensation Commission (P862 million), and arrears for the national government share in premium contributions to the Home Development Mutual Fund. Arrearages of pensions will be paid to Armed Forces retirees, war veterans, and uniformed personnel of the DILG. Some P867 million of the calamity fund was set aside for the Guimaras oil spill, particularly for livelihood projects, water disposal management, restoration of coastal resources, disease surveillance; while P250 million was reserved for relief operations and rehabilitation of affected areas in Legazpi, Albay. RA 9358 states that the Budget and Finance departments and the National Disaster Coordinating Council (NDCC) should seek reimbursement from the International Oil Pollution Compensation Fund 1992 and other appropriate sources for expenses accrued related to the oil spill in Guimaras. Likewise, a Joint Congressional Oversight Committee was formed to oversee the utilization of at least P2 billion appropriated from all sources for the Guimaras accident. NDCC was also ordered to submit to the committee a bimonthly report on fund use. Meanwhile, RA 9359 is divided for the Guimaras cleanup (P400 million), relief operations for the victims of the Mayon activity (P50 million), and emergency repatriation fund of Filipinos in Lebanon (P50 million). An additional P350 million for repatriation will be taken from the Overseas Workers Welfare Administration. In an interview, Mr. Andaya guaranteed that his department would promptly release the supplemental budget. "I’m waiting for the 15 days after it is published in a national daily so we can implement it immediately," he said in an interview. Funds to cover arrears for IRA, GSIS and other similar commitments are disbursements they will prioritize, he said. Other items, such as the milk and breakfast program, would have to be "harmonized with what we have now and what we need for the rest of the year." In the event the calamity fund would not be used up for its intended purpose, Mr. Andaya said the balance will be placed on standby for future calamities. The Budget chief is confident the release of the supplemental budget will boost government spending for the remainder of the year, as most of the items have short gestation periods. In a separate statement, Political Adviser Gabriel C. Claudio said fanfare was not necessary for the signing, since the Palace wanted the supplemental budget enacted into law without delay.