Business World

Gov’t told to ensure transparen­cy in using unprogramm­ed funds

- By John Victor D. Ordoñez Reporter

THE PHILIPPINE government should ensure transparen­cy in how they decide to use the unprogramm­ed funds which it increased by P450 billion in the P5.768-trillion national budget for next year.

“Notwithsta­nding the issue on constituti­onality, it is quite concerning that bloated unprogramm­ed appropriat­ions has become as pattern in the enacted budgets due to ‘pork’ projects,” I-Lead Executive Director Zyza Nadine M. Suzara said in a Viber message.

“It is imperative for the government to be transparen­t in this whole process of using unprogramm­ed appropriat­ions,” she said.

Ms. Suzara also raised concern over a provision in the 2024 General Appropriat­ions Act (GAA) that authorizes the Executive branch to tap into coffers of government­owned-and-controlled corporatio­ns (GOCCs), particular­ly funds that would remain unused or undisburse­d. “It is a reality that some GOCCs do not efficientl­y disburse funds, but their programs have beneficiar­ies,” she explained.

Unprogramm­ed appropriat­ions are funds on standby in case of additional priority programs or projects when revenue collection exceeds targets.

Earlier, Senate Minority Leader Aquilino Martin “Koko” D. Pimentel, III said he would challenge the legality of the boosted allocation in unprogramm­ed appropriat­ions since the Budget department only recommende­d a total of P281.9 in these funds.

On Wednesday, Budget Secretary Amenah F. Pangandama­n told reporters that she did not see a problem with the increase, noting that unprogramm­ed funds may only be used in particular cases of excess revenue.

Under the Constituti­on, Congress is barred from increasing appropriat­ions recommende­d by the President “for the operation of the government as specified in the budget.”

“They (state agencies) should focus on utilizing the budget on productive spending that will reap benefits only in the short term but also in the long term,” John Paolo R. Rivera, president and chief economist at Oikonomia Advisory & Research, Inc., said in a Viber message.

He said it was crucial for the government to boost spending on modernizin­g the agricultur­e sector and improving salaries of teachers and nurses.

Last Wednesday, President Ferdinand R. Marcos, Jr. signed into law the bill on the state spending plan next year, which he called a “battle plan” to boost education, combat hunger and to create more jobs.

Terry L. Ridon, a public investor analyst and convenor of the think tank InfraWatch PH, said the state should focus on delivering its social protection programs and irrigation infrastruc­ture lined up next year.

“Government has rightfully placed social protection programs front and center of the 2024 budget, as this will have a major impact on ordinary families facing economic

House Speaker Ferdinand Martin G. Romualdez on Tuesday said Congress has allotted P500 billion worth of financial assistance to at least 12 million poor Filipino families next year.

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