THE Senate finance panel approved on Wednesday the P8.2-billion proposed budget of the Office of the President (OP) for 2022.
In a virtual hearing presided by Senator Sonny Angara, the billions-worth budget of the OP has gone through further inquiries due to the delayed release of funds for agency projects, particularly those that belong to the Department of Public Works and Highways (DPWH).
Nearly an hour-long discussion was made as legislators pointed out the funds deemed “for later release” (FLR) to manifest projects of the DPWH.
Senator Nancy Binay has first raised the issue, emphasizing the Development Budget Coordination Committee (DBCC) and the Department of Budget and Management (DBM) hearings, which tackled that approximately P100 billion budget in 2021 for the DPWH projects have not yet been released to date.
“During the DBCC briefing and in fact, during the budget hearing of DBM yesterday, it was discussed na parang… 30 percent pa lang out of the DPWH projects ang nare-release pa lang. E ‘di ba ang sinabing explanation ng DBM kasi wala pa raw clearance from OP. I think the amount was P100 billion-worth of projects,” Binay said.
“Itong mga proyekto na ‘to na dapat sana patapos na e hanggang ngayon hindi pa nasisimulan. Actually, hindi pa nga siya nabi-bid out,” she added.
Binay underscored that there are only 3 months remaining before the year ends for the budget to be used, otherwise, it would be reverted to “constitute unused obligation,” like how the DBM explained.
“Binigyan natin ng allocation ito last year as part of Build, Build, Build program, but you know… nakakagulat kasi nga mag-o-October na in a few days and then, may maririnig tayo na P100 billion-worth of projects na alam natin can generate a lot of jobs na kailangan na kailangan natin ngayon pero hanggang ngayon hindi nga nai-implement ang mga programa na ito and siguro, magandang malaman [kung] ano bang plano nila? Are they planning to release this or wala na talagang plano na ituloy ang mga ganitong projects for whatever reason,” Binay said.
DBM Undersecretary Tina Rose Marie Canda has earlier told senators that DPWH projects classified as FLR are those that “we really don’t want, especially because it’s now September.”
Senior deputy executive secretary Michael Ong, in response to Binay’s question, said that FLR projects “warrant the imposition of special conditions” to be released and utilized.
“The FLR are limited to the new budgetary items that are not in the National Expenditure Program (NEP) and many of these—because they are not in the NEP—have not gone through fully the usual vetting process of the agencies,” Ong elaborated.
“We acknowledge and we recognize the collective wisdom of Congress for putting these budgetary items in the General Appropriations Act for 2021 but we have to—as these are not part of the original plan—we have to make sure that they are vetted fully by the agencies and by the DBM before they are released. And that is why they are being subject to the approval of the president as well,” he added.
Binay, however, noted programs which are affected by the FLR, citing the bill that they recently approved and enacted as a law, which seeks to provide an additional fund for scholarship of aspiring doctors.
“For this coming school year, imbes na madagdagan yung scholarship natin for incoming medical students, hindi maka-avail kasi nga kasama siya doon sa hindi nare-release na pondo,” she said.
Angara backed Binay and agreed that there is a need to immediately release the budget to prevent reverting it back to the treasury.
“If they are not obligated by December 31, 2021 they will lapse, we follow the cash budgeting so gano’n ho ‘yon,” Angara stated.
Executive Secretary Salvador Medialdea said that the panel can be assured as they will delve into and address the concerns raised involving the FLR funds.