It’s not a reform budget yet

THE MOST important legislative issue that both chambers of Congress will tackle after a long break is the 2011 budget.

While the House of Representatives has already passed the proposed Appropriations Act, members of the House are engrossed with negotiating for additional allocations for their pet concerns.

Media have been reporting compromises which have been forged among members of the House, to the disappointment of the public.

On the other hand, the Senate has to wind up its committee hearings and come out with its version of the proposed General Appropriations Act. It is expected that intense bargaining will also ensue.

Wheeling, dealing

The House and Senate versions of the budget will then be reconciled by the bicameral committee which has been described as the third chamber. Traditionally, the wheeling and dealing in the committee is closed to the public. No minutes are taken.

During the past administration, the committee did not meet en banc. Members of the House and senators who had budgetary concerns negotiated directly with their panel chairs.

The reconciled version of the proposed General Appropriations Act will be submitted to the President who can either veto it partially or totally.

The previous President initiated the practice of the “conditional veto” in which she approved a particular item of expenditure but actual release was subject to her approval.

At this point, can the claim be made that we have a 2011 reform budget? I don’t think so. Many changes—good or bad—can still happen until President Aquino signs the General Appropriations bill into law.

Four stages

Firstly, we must remember that there are four stages in the budget process: preparation, authorization or legislation, implementation and accountability. The budget authorization stage has not even been completed yet.

Secondly, we must likewise remember that the 2011 budget was originally crafted by the Arroyo administration. When the Aquino administration took over in July, the macroeconomic assumptions, the budget call and the agency budgets had already been consolidated.

The Department of Budget under Secretary Butch Abad had just over a month to put in changes. It can therefore be said that this budget is partially a GMA budget.

Thirdly, past budgets were characterized by lump-sum appropriations. These are allocations which don’t have details and are vulnerable to abuse. This practice used to be severely criticized by former opposition legislators.

Huge lump-sum items

Social Watch Philippines/Alternative Budget Initiative has identified more than P94 billion in lump-sum appropriations.

The large amount of lump-sum appropriations in the proposed 2011 budget prompted one senator to comment, “it is like asking us to marry a girl we have not seen!”

Fourthly, during the budget-preparation phase, serious efforts were made to revise the presentation of proposals and partially implement the zero-based budgeting approach.

During the legislation phase, compromises were made to ensure passage of the budget. Past practices which were abhorred in the past are continued in the present.

The 201l budget is still in process. The content of the signed General Appropriations Act will reveal whether it is a reform budget or not.

In the meantime, media and the public, especially civil society organizations, must continue to monitor and engage the budget as it takes shape. After all, it is our money.

(Leonor Magtolis Briones is a retired professor [UP National College of Public Administration and Governance] and a convenor of Social Watch Philippines/Alternative Budget Initiative.) –Leonor Magtolis Briones, Philippine Daily Inquirer