Andaya calls for closer bicam scrutiny of proposed R3.757-T nat’l budget

House Majority Leader and Camarines Sur Rep. Rolando Andaya Jr. yesterday called for a closer scrutiny of the proposed 2019 national budget during the bicameral conference committee proceedings in order for the government to meet its deficit target this year.

Andaya, who served as budget secretary during the Arroyo administration, said President Rodrigo Duterte’s decision to sign Joint Resolution 3 that extended the life of 2018 national budget through 2019 may help address the issue.

Duterte’s decision to ignore the advice of his economic managers showed he possesses better economic savvy than his advisers.

“Luckily, the President is a much better economist than his economic managers. He signed Joint Resolution 3, against the advice of his economic managers who recommended its veto,” said Andaya, who also used to head the powerful House Committee on Appropriations.

The veteran administration lawmaker said the 2018 fiscal deficit numbers “do not look so good.”

“Government disbursements continue to outpace the increase in revenues. Both government spending and revenues are growing beyond their respective targets. As a result, the government may fail to meet its deficit ceiling for the year,“he explained.

According to him, even Budget Secretary Benjamin Diokno had admitted that government’s fiscal deficit for 2018 “may fall behind the R523.7 billion target” or about three percent of the gross domestic product.

“In 2017, fiscal deficit was only 2.2 percent of the GDP,” Andaya pointed out.

He noted that with this development, it can be surmised that the proposed 2019 national budget that was prepared by the Department of Budget and Management is “out of touch with reality.”

Thus, Andaya said it may be necessary for the bicameral conference committee to re-examine the proposed R3.757 trillion national budget passed by the Senate and the House of Representatives.

“We are walking on tightrope and we need a really good balancing act. The DBCC insists on a smaller contractionary spending program, yet the government needs to spend more just to catch up with inflation,” he said.

In signing Joint Resolution No. 3, President Duterte extended the effectivity of the 2018 budget until the end of 2019. This will allow government more “spending room for social programs.”

“It also throws away the ambitious cash budgeting system of Sec. Diokno,” said Andaya.

Lawmakers have assailed the cash budgeting system endorsed by Diokno, preferring instead to stick to the obligation-based procedure.

According to Andaya, the extension of the 2018 budget “means foregoing the DBM proposal of having only one expenditure program for 2019.”

“In effect, we will now have two sources of spending for Fiscal Year 2019: the 2019 budget and the savings of 2018, which could reach to about P200 billion,” he said.

The House official added: “No matter how you spin it, the people on the ground are already feeling the economic pinch and an unresponsive economic plan can lead to people's unrest.”