Lack of funding commitment ties Congress’ hands
THE proposed third Bayanihan bill is hanging in the balance as the government scrambles to find funding sources for the new pandemic response measure worth P405.6 billion.
The Department of Budget and Management (DBM), Department of Finance and the Bureau of Treasury have not given their commitment to fund the bill through an issuance of certificate of funds availability, according to former appropriations chair deputy speaker Isidro Ungab.
Ungab voiced his reservations about the substitute bill on Monday night after it was sponsored in the plenary, saying funding commitment by the concerned agencies is required by the Constitution.
“Again, as I have made it clear from the start, I am not against any Stimulus Fund, in fact I will sponsor it, I will vote for it, and I will be willing to defend it on the floor, or even bring this matter to, and march for it on the streets, if allowed under our quarantine rules. But, and this is a big but, I want to make sure that there are funds available for this purpose,” he said.
The bill, which is targeted to be approved in the plenary before Congress adjourns sine die on June 4, now includes an amendment on the provision on sources of funding since the budget for the proposed law includes two rounds of cash assistance worth P1,000 for every beneficiary or a total of 108 billion Filipinos.
Section 29 of the proposed “Bayanihan to Arise as One Act” provides that funds for its programs, activities, and projects “shall be sourced primarily from the unprogrammed funds and savings realized from modified, realigned or reprogrammed allocations for operational expense of any government agency or instrumentality under the Executive department, including, but not limited to, traveling expenses, supplies and materials, expenses, professional services, general services, advertising expenses, printing and publication expenses, and other maintenance and operating expenses in 2021 General Appropriations Act (GAA).”
The government is looking at the proposal to temporarily increase mandatory dividend remittance of government owned and controlled corporations (GOCCs) from 50 percent to 75 percent to fund Bayanihan 3. The proposal, which is worth P70 billion, requires an amendment of RA 7656 or the Dividends Law.
Ungab warned that the bill, which is principally authored by Speaker Lord Allan Jay Velasco, could end up being an “unfulfilled promise” without the certificate of fund availability from the concerned departments.
“Unless there is a well-defined source of revenue, as provided under Section 25 of the Constitution, the implementation of the Bayanihan 3 ‘ayuda’ will not reach the hands of the Filipino people at the time they needed it the most,” he said.
At the Senate, Sen. Risa Hontiverso yesterday said government should realign unutilized funds under the Bayanihan to Recover as One Act, or Bayanihan 2, to provide financial assistance to low-income families affected by the pandemic.
Hontiveros said there are a number of government agencies which have not yet obligated their respective authorized funds under Bayanihan 2 which can be used to give financial assistance to low-income families.
For one, she said the Department of Trade and Industry still has around P7 billion of the P10 billion under its COVID-19 Assistance to Restart Enterprises (CARES) Program which have not yet been utilized.
Hontiveros said the P10-billion budget allocated under the DTI-CARES Program was meant for working capital loans to micro, small and medium enterprises (MSMEs) including the tourism sector. She said that 70 percent of the funds has remained intact as MSMEs in the sector have not tapped the financial aid made available to them.
“Ayuda imbes na pautang (Assistance instead of credit). Seventy percent of the P10B funds for loans under DTI has remained untouched. That’s P7B-worth of assistance that can benefit around 1.4 million Filipinos with 5,000 each. Stop reserving the funds, use them to help those who are in need),” Hontiveros said.
She said cash assistance must be continuous since several Filipinos are still coping with the effects of the prolonged lockdowns.
Sen. Juan Edgardo Angara, Senate finance committee chair, has earlier reminded government agencies to use their authorized funds under the 2020 national budget and Bayanihan 2 before their effectivity expires on June 30. — With Raymond Africa
