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Lower House defers consideration of DBM budget; FLR, use of savings hit
Lower House defers consideration of DBM budget; FLR, use of savings hit
With a little over three months left until the end of 2021, the government has yet to disburse about ₱192 billion in appropriations classified as "For Later Release" or FLR, in this year's national budget.
This was disclosed by Department of Budget and Management (DBM) officials during the House of Representatives' plenary debates Thursday, September 23, on the proposed allocation of the agency under ₱5.024-trilliion national budget for 2022.
"As of August 31, the remaining unreleased is ₱192 billion," House appropriations committee vice chairman and Quirino Rep. Junie Cua said, quoting the DBM.
Lawmakers have slammed the DBM's categorization of public funds as FLR, which is subject to "special conditions" and compliance to certain requirements and approval from implementing agencies.
These included program and projects introduced by Congress, mostly infrastructure projects, which were not originally part of the National Expenditure Program (NEP) prepared by the executive department.
The DBM, according to Cua, maintained that the release of the FLR funds must be vetted by concerned agencies and be cleared by the Office of the President (OP).
"It will depend upon the agency criteria...to say shovel-ready, that they can be released," Cua said.
But Marikina 2nd District Rep. Stella Quimbo, who raised anew the issue on the FLR funds, maintained that the policy violates the Constitution, particularly Congress' power of the purse.
"This seems unconstitutional, because the power of the purse rests with Congress, and budget documents that come out from the legislative branch, and do not contain the distinction what is 'For Later Release' or not, should be the ones approved or vetoed by the President. And whatever is approved by the President should be executed to the letter," Quimbo said in mixed Filipino and English.
"Now, there is a gray area because there is a 'For Later Release' categorization after the and the Senate have approved the budget. So I think this is not constitutional," she pointed out.
Albay 1st District Edcel Lagman, in his interpellation of the DBM budget, also believed the provisions of the General Appropriations Bill (GAB) enrolled to the President should matter more over the NEP.
"The General Appropriations Act, which is the product of Congress, is more ascendant than the NEP. And if there is discrepancy between the NEP, and what is approved by Congress, the latter must prevail," Lagman said.
While defending the DBM budget, Cua said he shares his colleagues' sentiment about the FLRs.
"I feel also that this kind of practice somehow diminishes the power of Congress. But I would also like to remind our colleagues that if I were in the shoes of the President, and cash is problem for me, I may have to do something like this," Cua said, citing the country's budget deficits.
"I guess there is a need to really look into the process, I think leaders of Congress have to sit with the executive," he suggested.
The DBM said a total of ₱1.761-trillion of funds under the 2021 budget remain unspent as of June 30.
In addition, some ₱99.3 billion under the 2020 budget -- the validity of which has been extended until year-end -- also remains unobligated.
The House deferred their debates on the DBM's budget upon motion of Bayan Muna Representative Carlos Zarate.
During a budget hearing at the Senate on Wednesday, September 22, Executive Secretary Salvador Medialdea vowed to expedite the release of FLR funds this year.