PNoy signs P2.6-trillion 2015 national budget

(Updated 1:14 p.m.) President Benigno Aquino III on Tuesday signed the P2.606-trillion national budget, which contained a modified definition of savings after the Supreme Court (SC) ruled the administration’s Disbursement Acceleration Program (DAP) as partly unconstitutional.

 

Aquino approved the 2015 national spending plan, formally known as Republic Act (R.A.) 10651, during a ceremony at the Malacañang Palace attended by Cabinet officials, Congress members and private sector representatives.

 

R.A 10651 allows the executive branch to declare certain portions or balances in the 2015 budget that have not been obligated as savings, following conditions set by Congress. 

 

For instance, the budget for next year allows allocations for discontinued or abandoned projects to be declared as savings as long as the abandonment was not caused by the negligence or fault of a government agency.

 

The budget was signed months after the SC struck down certain acts under the DAP as unconstitutional, particularly those concerning government savings. 

 

In its DAP ruling, the SC said the executive erred in declaring unreleased and unobligated  funds as savings, since funds pooled under the DAP are for projects that have not yet been completed or discontinued with finality.

 

The General Appropriations Acts from 2011 to 2013, when the DAP was implemented, defined savings as funds that are "still available after the completion, or final discontinuance, or abandonment of the work, activity or purpose for which the appropriation is authorized.”

 

The executive branch initially wanted authority to declare certain budget allocations as savings “at any time.”  However, the Senate removed this phrase, following criticism from Senator Miriam Defensor Santiago, who said it may undermine Congress’ power of the purse.