(UPDATED – 7:12 p.m.) MANILA – Malacañan Palace on Wednesday released the President’s Veto Message on parts of the 2018 General Appropriations Act, with President Rodrigo Duterte thumbing down four items under the General Appropriations Act for 2018, which lays out a P3.767 trillion expenditure plan for next year to “strengthen the foundation for the matatag, maginhawa, at panatag na buhay (stable, comfortable, and secure life) that Filipinos aspire for.”
Saying the 2018 budget will “foster the golden age of infrastructure, secure peace and order, and accelerate human capital development for sustained and inclusive growth,” Duterte in his message to Senate President Koko Pimentel and House Speaker Pantaleon Alvarez listed the items below for direct veto.
1. The “grant of monitoring expenses in Other Executive Offices-Movie and Television Review and Classification Board (MTRCB), Special Provision No. 2, ‘Monitoring Expenses of Board Members’,” because under the Salary Standardization Law, board members are already authorized to receive honoraria or per diems in the performance of their official functions.
2. The prohibition of the imposition and collections of fees under “General Provisions, Section 87, ‘Collection of Fees in Relation to the Retention or Reacquisition of Philippine Citizenship’,” because government agencies “cannot be deprived of their inherent authority to assess reasonable fees in the provision of services.”
3. The authorization of the Department of Education to use appropriations for Maintenance and Other Operating Requirements for its Capital Outlay requirements under “Department of Education-Office of the Secretary, Special Provision No. 14, ‘Use of School Maintenance and Other Operating Expenses for Payment of Items That May Be Classified as Capital Outlay’,” because “agencies ought to spend what is programmed in their appropriations and any modification shall first comply with the requirements provided under the General Provisions” in the GAA.
4. The use of income provided in Other Executive Offices-Energy Regulatory Commission, Special Provision No. 1, “Use of Income,” to augment the operational requirements of the ERC, because “sources of income enumerated here have already been included in the Non-Tax Revenue Program for fiscal year 2018, thereby resulting in double programming for the said income sources. The ERC should instead make efficient use of its budget and automatic appropriations in the amount of P413.60 million.”
In general, Duterte wrote, “attempts to circumvent the Constitution will never be countenanced,” which was why the provisions that amend existing laws and rules were “subject to direct veto.”
There were more items under conditional implementation, meaning, the implementation of these provisions “ought to be subjected to certain conditions to ensure the consistent and faithful execution of existing laws, policies, and rules and regulations.”
1. The use of income and collections under Department of Science and Technology-Office of the Secretary, Special Provision No. 1, “Use of Income”; and OEOs-Dangerous Drugs Board, Special Provision No. 1, “Collections for Drug Rehabilitation Activities”. Duterte explained that the creation of a revolving fund for the Research and Development Institutes of the DOST, and the use of collections by the DDB are “subject to the generation of income and collections in excess of those forming part of the revenue sources programmed for the FY 2018 GAA.”
2. “With the adoption of the GAA as the allotment order, agencies need not line up for the issuance of an allotment order for the release of appropriations, except those identified by the Department of Budget and Management as requiring compliance with conditions or submission of requirements prior to the release of allotment.” Thus, the President wrote, “this cannot be considered as a deferral of appropriations contemplated under General Provisions, Sections 62 and 63, “Meaning of Impoundment” and “Impoundment of Appropriations”.
3. Also under conditional implementation is Budgetary Support to Government Corporations-Others, Special Provision No. 11, “Availability of Subsidy to Government-Owned or Controlled Corporations”. He said that all subsidy releases to GOCCs shall be utilized until December 31, 2018, and any unexpected balance shall revert to the unappropriated surplus of the General Fund.
4. The President urged the Supreme Court to “ensure the equitable allocation and immediate release of its MOOE as provided under Judiciary, Special Provision No. 7, ‘Maintenance and Other Operating Expenses of Lower Courts’,” to all lower courts.
5. He also said that the MOOE of elementary and secondary schools, worth P22.8 billion, as referred to in DepEd-OSEC, Special Provision No. 14, “Use of School Maintenance and Other Operating Expenses for Payment of Items that may be Classified as Capital Outlay,” will be used for the said purpose. Any modification may be made in justifiable circumstances, and upon compliance with rules.
6. Given the appropriations for the payment of insurance coverage of government facilities embedded in agencies’ budgets, under the National Disaster Risk Reduction and Management Fund, and the one authorized in the Unprogrammed Appropriations, Special Provision No. 5, “General Fund Adjustment for Use of Excess Income”, the DBM and the Bureau of Treasury will ensure that only those not yet covered in the budgets of agencies and by the NDRRMF may be funded under the Unprogrammed Appropriations.
7. Given the Public-Private Partnership Strategic Support Fund under Department of Public Works and Highways-OSEC, Special Provision No. 5, “Public-Private Partnership Infrastructure Projects,” funding for feasibility studies of PPP projects will be sourced mainly from the Project Development and Monitoring Facility Fund, and only secondarily from the PPP Strategic Support Fund.
8. OEOs-Commission on Higher Education, Special Provision No. 8, “Cash Grant to Medical Students,” provides for additional funding for grant of tuition subsidy to medical students enrolled in state universities and colleges. Duterte tasked the CHED to ensure that implementation is harmonized with the Pre-service Scholarship Program of the Department of Health.
9. It is convenient for government employees in authorizing agencies to deduct the amount of their contributions and obligations to financing institutions under General Provisions, Section 48, “Authorized Deductions.” But, said the President, he was concerned with their “overall protection”. Government agencies should, therefore, “leverage the facility given to these institutions to secure for government employees the most favorable terms possible for the protection of their rights and the promotion of their interest.”
10. The employees of the Bureau of Immigration are the “first line of defense in securing our borders”. But their basic monthly pay remains extremely low. Duterte therefore allowed “the establishment of a trust fund to be constituted from the express fees and charges collected by the BI for the payment of salaries and overtime of employees of the BI under Department of Justice-BI Special Provision No. 1, ‘Immigration Fees and Collections’,” subject to guidelines of Justice Secretary Vitaliano Aguirre, Budget Secretary Benjamin Diokno, and the Commission on Audit.
11. The release of government support for the supplemental PhilHealth benefits under Budgetary Support to Government Corporation-PhilHealth, Special Provision No. 3, “PhilHealth Supplemental Benefits” is also conditioned upon the full utilization of P3.5 billion appropriated for the expanded PhilHealth benefits under the Miscellaneous Personnel Benefits Fund. Duterte said these benefits must be harmonized to avoid duplication.
Meanwhile, under BSGC-PhilHealth, Special Provision No. 2, “Attainment of Universal Coverage”, “no amount appropriated… may be used for the reimbursement of the actual cost of availing of health insurance, which is properly within the province and responsibility of PhilHealth as the ensuring agent.”
12. The authority of foreign service posts to use unutilized cash of their working fund under Department of Foreign Affairs-OSEC, Special Provision No 1, “DFA Working Funds,” will not exceed appropriations authorized for the purpose and will be subject to the cash disbursement ceiling imposed by the DBM.
The efficient use of the Building Fund under DFA-OSEC, Special Provision No. 3, “Building Fund,” requires the DFA to prioritize the acquisition and renovation of “chanceries”, residences, and consular offices of the Philippine Foreign Service that have been programmed for the year. Lease agreements covering chanceries, residences, and consular offices under DFA-OSEC, Special Provision No. 9, “Rentals of Philippine Chanceries, Consular Offices, or Official Residences” will comply with requirements on the issuance of a multi-year, obligational authority, the advance payment of rentals, and the provision of living quarters allowance, whenever applicable.
13. Also under conditional implementation is the approval that importations, grants, and donations of the Philippine Coast Guard and the National Coast Watch Center under Section 15, General Provisions, “National Internal Revenue Taxes and Import Duties,” are considered non-cash transactions qualified for tax subsidy status.
14. The approval of the DBM regarding the creation of positions under DepEd-OSEC, Special Provision No. 11, “Creation of Teaching Positions, Recruitment and Appointment of School”, and the granting of hazard duty pay under DOJ-National Bureau of Investigation, Special Provision No. 2, “Hazard Duty Pay”.
15. The evaluation and recommendation of the Digitization Program of the Philippine National Police under Department of the Interior and Local Government-PNP, Special Provision No. 6, “Digitization Program of the Internal Affairs Service”, and the Expansion of the Bulk and Break Bulk Enhancement Program of the Bureau of Customs provided in the Department of Finance-BOC, Special Provision No. 6, “Expansion of the Bulk and Break Bulk Enhancement Program to Include Containerized Cargoes.”
16. The compliance with appropriate standards in the design and construction of government facilities in the implementation of General Provisions, Section 36, “Disaster and Climate Change Resiliency of Government Facilities”, Department of Public Works and Highways-OSEC, Special Provision No. 20, and DILG-OSEC, Special Provision No. 7, “Evacuation Centers”.
17. Limiting the financial assistance to local government units for the repair of bridges under Allocation to LGUs-Local Government Support Fund, Special Provision No. 3, “Conditional Matching Grant to Provinces for Road Repair,” to those that form part of the road network or within the station limits of the road project.
18. Excluding other MOOE as allowable Engineering and Administrative Overhead expenses under DPWH-OSEC Special Provision No. 13, “Engineering and Administrative Overhead Expenses”.
BELOW, FULL TEXT OF THE MESSAGE:
