During
the early hours of March 5, the Senate approved House Bill
5715, entitled “Supplemental Appropriations for an Automated
Election System and for other purposes.” The President
announced she would immediately sign the bill into law.
There is general agreement that it is high time the Philippines
finally joins the modern world of automation. Nonetheless,
questions have been raised about pricing, security, vulnerability
to manipulation and other technical matters.
There are equally important questions related to constitutional
requirements. In their hurry to go into recess, the senators
did not take time to debate extensively on these matters.
Those who had strong reservations were wary of being accused
of obstructionism if approval would be delayed.
What is the supplemental budget supplementing?
Is the supplemental budget supplementing the 2009 budget?
How can this happen when the President has not yet approved
the 2009 budget?
Even as the 2009 budget has not yet been approved, the Department
of Budget and Management (DBM) is already projecting a P177-billion
budget deficit for the year. So how will the additional P11.4
billion be financed? This is the
question which Sen. Ping Lacson raised.
One can argue that in the absence of a 2009 budget, the supplemental
budget is supplementing the reenacted 2008 budget. However,
the latter is also on deficit! Again, the same question is
raised: Where are the funds coming from?
What does the Constitution say?
Article VI, Section 25 (4) states, “A special appropriations
bill shall specify the purpose for which it is intended, and
shall be supported by funds actually available as certified
by the National Treasurer, or to be raised by a corresponding
revenue proposal therein” (italicization ours).
What does the certification of the Treasurer of the
Philippines state?
The exact wording of the certification of the Treasurer of
the Philippines is: “This is to certify that the sum
of ELEVEN BILLION THREE HUNDRED ONE MILLION SEVEN HUNDRED
NINETY THOUSAND PESOS [P11,301,790,000] or so much thereof
as may be necessary is available in the National Treasury
to fund the appropriations for the proposed House Bill 5715
as Supplemental Appropriations for an Automated Election System
and for other purposes” (underscoring ours).
There are three items in the certification which arouse curiosity.
First, the Treasurer’s statement is just entitled “certification.”
Such are usually entitled “Certification of Availability
of Funds.” Why is the National Treasurer not certifying
to availability of funds?
Second, the certification uses the word “sum”,
and not “funds.” Besides the difference in spelling,
the two words don’t mean the same. “Sum”
generally means cash while “funds” in the budgetary
sense means that there is a legal authorization involved;
in this case it is an appropriation. A fund has a legal mandate
for its existence. How can a certification to funds have a
legal basis when there is no 2009 budget yet? If the 2008
budget is the legal basis, can a fund be set up under a deficit
without an accompanying revenue proposal?
I have no doubt that the National Treasurer is telling the
truth when he says the sum of P11.4 billion is in the Treasury.
But can a fund exist when there is no budget? Or when there
is a budget but there is a deficit? Is the certification complying
with the requirements of the Constitution?
Third, the phrase “or so much thereof as may be necessary
is available in the National Treasury…” is open-ended.
Does this mean that the P11.4 billion can be exceeded by any
amount “as necessary”? Does it mean that whatever
amount is needed is “available”? Is cash in the
Treasury inexhaustible?
Why all the questions about detail?
The certification consists of only one sentence of 57 words.
Why all the fuss about a few words? This is because this sentence
is supposed to satisfy the requirements of the Constitution
on supplemental budgets. Every word matters. Any word which
leads to ambiguity, vagueness and lack of precision is dangerous.
This is the most expensive sentence ever. It will cost the
Filipino people P11.4 billion; perhaps even more.
Coming soon: a P50-billion veto
The DBM is hinting that a P50-billion veto in the 2009 appropriations
bill is forthcoming. The House and the Senate deducted P50
billion from the debt service and increased allocations for
various expenditures.
The senators are warning against the impending veto. Presidents
usually veto the debt-service reduction but allow the increases
in expenditures. If this happens once more, the deficit will
rise by P50 billion.
