By Vanne Elaine Terrazola Senators on Wednesday weighed in on the executive department's reservations over the lawmakers' proposed economic stimulus package following the COVID-19 pandemic. Senate Minority Leader Franklin Drilon agreed with economic managers that the government is not allowed to earmark additional funds for its COVID-19 recovery plans using loans. "Without a supplemental budget, the stimulus package can be funded only thru savings and realignments of existing programs and projects under the 2019 and 2020 GAAs. Loan proceeds cannot be used for a supplemental budget to fund a Stimulus Fund," Drilon said. The Constitution, he said, was "clear" in saying that any appropriations on top of the annual General Appropriations Act must be supported by funds that are actually available. Article 6, Sec 25 (4) of the Constitution, states that 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 proposed therein." "Thus, under the Constitution, borrowings are not allowed to fund a supplemental budget; it has never been done, to my recollection. The only sources allowed are additional revenues -- on top of programmed and/or new sources of revenues," Drilon said. "The underlying principle is fiscal responsibility. Congress may unduly increase the enacted budget for the year by passing special appropriation measures funded by borrowings. That can only widen the deficit and increase the debt burden, especially at this time when borrowings have to be resorted to to fund the current budget due to serious cash constraints," he added. Senator Panfilo Lacson echoed this, reiterating that: "We cannot squeeze blood from a turnip." "No matter what amount Congress wants to push to stimulate the economy, without an accompanying revenue measure or a certification from the national treasurer that the money actually exists, a supplemental budget cannot be passed into law," he added. Lacson said even if funds may be sourced from foreign and domestic loans, such would take time before the cash is made available for spending. "Pump priming of the economy by legislative initiative may only start once the money is available. That is a hard fact," he said. The House of Representatives recently approved on third and final reading its House Bill No. 6815 or the proposed Accelerated Recovery and Investments Stimulus for the Economy of the Philippines (ARISE) Act, which allots P1.3 trillion for programs that would jumpstart the economy that was stunted by the pandemic and the lockdowns imposed to curb its spread. Economic managers said this was "unconstitutional" and "not fundable" due to the lack of revenue sources. Senate President Pro Tempore Ralph Recto said the executive department, however, should still welcome proposals from the Senate for the grant of a standby authority to spend available funds. "It gives them the authority to spend for better health infrastructure, protect jobs, provide relief to workers who lost their jobs and credit to businesses including MSMEs. It can be funded by increase in duties, which they have done for oil, new revenue source, borrowings, realignment and repurchase agreements with the central bank," he said. Sen. Sonny Angara, Senate finance committee chairman, said the economic stimuli should "definitely" be implemented this year, referring to the chamber's proposed "Bayanihan to Recover as One" Act. "The Senate worked with the economic managers of the administration to come up with something that could be funded and that would not be vetoed when it passed Senate Bill 1564 on second reading last week," he said. But even economic managers asked for more amendments to the bill, including available resources for its rollout. They told the senators that the government can only shell out P130 billion to P140 billion this year. The Senate bill proposed a P140-billion standby fund to finance COVID-19 response and recovery programs, such as wage subsidies, purchase of test kits, among others. The House of Representatives' version of the Bayanihan 2, meanwhile, required a spending of P162 billion.