Senate caps budget cuts to avert bicameral conference deadlock

REPORT FROM BUSINESSWORLD Senators have agreed to limit further amendments to the proposed P1.053-trillion 2006 General Appropriations Act, in order to minimize disagreeing provisions between the Senate and House versions that may cause further delays in the looming bicameral conference committee debates on the national budget. Senator Manuel B. Villar, Jr., Senate finance committee chairman, told reporters on Tuesday evening that senators have agreed to keep further cuts or paddings to the budget within "a few billions" of the Senate’s P31.11-billion proposed "net cut." He said the all-senators’ caucus on Tuesday evening failed to finalize further amendments to the government spending bill, as only "about a dozen" senators have submitted their individual amendments. He said he’d rather wait for all senators to have their individual amendments submitted in order to allow a comprehensive review of the budget’s provisions. He said senators will attempt to finalize individual amendments by Wednesday evening. This, in order to keep within their target of having the budget approved by tomorrow at the latest. Senator Edgardo J. Angara said in an interview on Wednesday that senators intend to nominally vote on the budget by this afternoon. If the Senate manages to approve its final version of the budget within the week, the bicameral conference committee will have a week starting Monday next week to iron out the differences of the Senate and the House versions. In previous years, the Senate and House versions of the budget differed by only around P2 billion to P5 billion. Hence, debates in the bicameral conference committee were usually resolved in a few days. Since this is the first time these versions differed by as much as P31.11 billion, there are fears of a deadlock during the conference. DELETED Proposed cuts include deletion of the following funds: P2.721 billion from appropriations for airports and navigational facilities under the Transportation department; P10 billion for incentive packages for employees availing of the rationalization program; P5 billion for the Kilos Asenso Support Fund and P3 billion for the Kalayaan Barangay Program Fund, which the senators have said are questionable; and the entire P65.534-million budget of the Presidential Commission on Good Government. The proposed "net cut" of the committee also includes the P13.1 billion for the P1,000 across-the-board pay hike of government employees. Supposedly, this portion has already been separated from the main budget and passed earlier as a supplemental budget to the reenacted 2005 budget, purportedly to let government employees get their pay hikes earlier. Instead of a P1,000 pay hike starting January, which requires P13.1 billion, the Senate has proposed a P2,000 pay hike starting July, which requires P19.5 billion in funding. But if both chambers still fail to meet on this supplemental budget, then the Senate has no other recourse but include this in the main 2006 budget. He said this means that the Senate’s "net cut" will be around P11 billion to P18 billion. TROUBLED BUDGETS On the plan of some senators to recall the P46.527-billion budget of the Defense department because of the abduction of five supporters of former president Joseph E. Estrada, Mr. Villar said there is a possibility this will just be reduced. "We are balancing that, because we know that while the Senate is furious at this incident we understand that the needs of AFP (Armed Forces of the Philippines) have to be addressed with this budget, because they really lack in equipment, and we can’t just reduce that," he said. Also, because of the tentativeness of data on classrooms shortage -- as shown by the confrontation last Tuesday between President Gloria Macapagal-Arroyo and Education officer-in-charge Fe Hidalgo -- Mr. Villar said the Senate wants to get the final data first before determining how much will be allocated to schoolbuildings. The Senate reduced the P2-billion proposed fund for schoolbuildings to P1 billion. As of press time on Wednesday, only the budgets of the Tourism department (P1.402 billion) and the National Security Council (P52.3 million) have been approved for the day. This brings the approved portion of the long-delayed general appropriations to P610.063 billion out of P702.927 billion in new appropriations, or 86.79%. Still to be approved are the budgets of the Agriculture (P3.043 billion), Energy (P340.906 million) and Transportation and Communication (P11.148 billion) departments, as well as budgetary support to several government corporations. Already, the Senate has "deemed submitted" the appropriations for the following departments: Office of the President (P3.353 billion), Office of the Vice-President (P129 million), Office of the Press Secretary (P760 million), Agrarian Reform (P1.987 billion), Budget (P681 million), Defense (P46.572 billion), Education (P109.766 billion), Environment (P5.878 billion), Finance (P6.052 billion), Foreign Affairs (P5.259 billion), Health (P10.483 billion), Interior (P45.396 billion), Justice (P4.847 billion), Labor (P4.459 billion), National Defense (P46.527 billion), Public Works (P54.154 billion), Science and Technology (P2.77 billion), Social Welfare (P2.781 billion), Trade (P1.973 billion) and the National Economic and Development Authority (P2.678 billion). It has also approved lump-sum appropriations like the Armed Forces of the Philippines Modernization Program (P5 billion), Agrarian Reform Fund (P8.421 billion), Calamity Fund (P700 million), and the President’s Contingent Fund (P800 million). -- Francis Y. Capistrano ...to focus on three other bills till June 9 With only a week to go before Congress adjourns sine die, the Senate has decided to focus on having three priority measures approved by next week. Senator Edgardo J. Angara told reporters senators agreed in a caucus on Tuesday night to pass at least three measures, apart from the budget: the proposed mandatory use of biofuels, the bill creating the credit information bureau, and proposed amendments to the elections automation law. He said they agreed to prioritize the biofuels bill, noting this is "really critical" with the recent spate of world oil price hikes. He also said they agreed to prioritize the elections automation law amendments, as this is a time-bound law, due to the senatorial elections next year. He also said the measure creating the credit information bureau will also be prioritized because this measure is seen to increase the lending of banks. He noted the measure is already in its final stages of interpellation. Aside from the three measures, the Senate determined the following as priority measures: the anti-terrorism bill; amendments to Republic Act 9136, or the Electric Power Industry Reform Act of 2001 (EPIRA); the proposed restructuring of individual income taxes; and the tourism reform bill. Senate Majority Leader Francis N. Pangilinan said the Senate will still attempt to have all seven measures passed, but said they will focus on approving the biofuels bill and the credit information bureau bill first. On the anti-terrorism bill, the poll automations bill and the EPIRA amendments, he said senators will exert their "best effort" to have these measures passed. He added that Senator Ralph G. Recto, Senate ways and means committee chairman, will sponsor Thursday the proposed individual income tax restructuring bill. Mr. Angara, however, admitted that the Senate might not be able to pass the anti-terrorism bill before the long break, as they will have to exert extra care in finalizing the measure in order to ensure protection for civil rights. "You can never leave any single word in this bill uncertain or undefined. That’s how pervasive and inclusive this law is," he said. Mr. Pangilinan said the Senate will continue with its full-day plenary sessions next week in order to fast-track the said measures. – FYC/BusinessWorld