Bicam’s comeuppance

Several portions of the budget that President Ferdinand Marcos Jr. vetoed were suspected pork inserted by the bicameral conference committee that produced the version transmitted to the Palace.

In his veto message, the President cited the need for prudent debt management that would support “the high-rating affirmations by different global credit rating agencies that will enable us to borrow at lower cost, providing more fiscal space to support infrastructure development and other growth-enhancing programs and projects.”

The country may soon acquire its first A-credit rating that would affirm its journey towards developed nation status.

Mr. Marcos reminded the legislators that fiscal discipline would be enforced to ensure optimal budget utilization to achieve prosperity “despite the limitations.”

Subjected to a direct veto was P168.24 billion in unprogrammed appropriations (UA) that became a subject of scrutiny by budget watchdogs as these were considered as giving way to the return of the pork barrel which the Supreme Court declared unconstitutional in 2013.

Unprogrammed appropriations are a conditional authority to spend for priority programs and projects, subject to the availability of revenue sources that are yet to be realized.

The inclusion of the UA and its purposes in the FY 2025 NEP resulted from meticulous consideration of the priorities and the agencies’ capacity for implementation, balanced with the judicious programming of existing and anticipated resources.

Another usual source of pork insertions, the Department of Public Works and Highways (DPWH) had P26 billion worth of projects vetoed.

“The programs, projects and activities that we have programmed in the FY (fiscal year) 2025 NEP (National Expenditure Program) under the budget of the DPWH are consistent with the Build Better More infrastructure program of our government and were carefully considered taking into account urgency of need, implementation-readiness, and agency absorptive capacity,” the President in his message pregnant with meaning said.

Moreover, Mr. Marcos imposed strict conditions on the implementation of the Ayuda sa Kapos ang Kita Program (AKAP) which was widely assailed for being suspiciously geared toward the coming elections.

“To ensure that the government assistance is not merely a provisional solution to a persistent issue, I am compelled to subject the implementation thereof to the convergence of efforts by the DSWD (Department of Social Welfare and Development), Department of Labor and Employment, and National Economic and Development Authority, geared towards more strategic interventions leading to the long-term improvement of the lives of qualified beneficiaries, while guarding against misuse, and duplicative and fragmented benefits,” the President said.

A peace process program was similarly subjected to stricter regulations.

Mr. Marcos’s veto message was also full of reminders. He said the prudent stewardship of public funds is mere rhetoric if the same is not translated into effective and responsive public services.

“It is the shared fiscal responsibility of the whole government to ensure that the people’s funds are utilized in accordance with their authorized purposes, and that the programs, projects, and activities are implemented in compliance with laws, policies, rules and regulations,” he stated.

The President emphasized the conscientious utilization of the budget to sustain the high-growth trajectory of the economy and manage inflation “while accelerating the implementation of well-targeted social services and structural reforms geared towards achieving our medium-term goals of reducing poverty incidence, decreasing unemployment rates and achieving upper middle-income status.”

A significant part of the message was the recognition by the President of “the final version of the national budget” having significant distinctions from his proposed budget.

Thus, in explaining the veto, the President said his administration “remains determined to pursue the continued implementation and innovation of reforms in public financial management, procurement, and digitalization through a whole-of-government and a whole-of-society approach for a more efficient and transparent public service.”

Transparency and efficiency fly out the window in a bicam dissection of the budget which should, going forward, stop being held behind closed doors.