BEYOND BUDGET

*Assalamu alaikum wa Rahmatullahi wa Barakatuh.* Time flies, indeed. For us, in the administration of President Ferdinand R. Marcos Jr., it has flown rather swiftly. In 2022, the President unveiled his eight-point socioeconomic agenda, the Philippine Development Plan 2023-2028, and the Medium-Term Fiscal Framework, to serve as anchors for the economy to thrive post-pandemic amid global headwinds. During the first Legislative-Executive Development Advisory Council (LEDAC) meeting in October 2022, the President greenlighted 42 measures to be prioritized for legislation. Of these, five have been signed into law: An Act Requiring the Registration of Subscriber Identity Module; Postponement of Barangay/SK elections; Amendment to AFP Fixed Term; New Agrarian Emancipation Act; and the Maharlika Investment Fund Act, which was signed yesterday. According to Presidential Communications Secretary Cheloy Garafil, the DOH Specialty Centers Act is now up for the President’s signature, while five bills are in various stages of legislation, such as the Budget Modernization Bill, Amendments to the Electric Power Industry Reform Act, the Department of Water Resources, the National Defense Act, and Amendments to the Universal Health Care Act.

The 2023 Legislative priorities

The 19th Congress will commence its second regular session on July 24, the day of the President’s second State of the Nation Address. Last July 4, PBBM presided over the second LEDAC meeting, where officials of the executive and legislative branches of government agreed on a total of 20 priority measures for legislation within the year. Eighteen of these were identified during the first LEDAC meeting, which include: Amendments of the Build-Operate-Transfer Law/Public-Private Partnership bill; National Disease Prevention Management Authority; Internet Transactions Act/E-Commerce Law; Health Emergency Auxiliary Reinforcement Team Act (Medical Reserve Corp); Establishment of the Virology Institute of the Philippines; Mandatory Reserve Officers’ Training Corps and National Service Training Program; Revitalizing the Salt Industry; Valuation Reform Bill; E-Government/E-Governance Act; Ease of Paying Taxes; The National Government Rightsizing Program; Unified System of Separation, Retirement and Pension of Military and Uniformed Personnel Services; Local Government Unit Income Classification; Waste to Energy bill; New Philippine Passport Act; Magna Carta for Filipino Seafarers; National Employment Action Plan; and Amendments to the Anti-Agricultural Smuggling Act. Meanwhile, two are new yet essential legislations we would like Congress to prioritize — the Bank Deposit Secrecy Bill and the Anti-financial Account Scamming Act (AFASA Bill, which were both endorsed by the Bangko Sentral ng Pilipinas. These 20 priority measures are seen to help create an environment conducive to foreign investments — create more jobs and invigorate the economy; promote bureaucratic efficiency, transparency, and accountability, and provide faster and responsive services; and ensure the health, safety, security, and well-being of our kababayans.

Rightsizing, not downsizing

One of the laws we are earnestly pursuing is the National Government Rightsizing Program, a reform mechanism that will streamline the operations of agencies in the Executive Branch, excluding military and uniformed personnel, and jobs associated with teaching, medicine, and allied health care. Time and again, I reiterate — rightsizing is not downsizing. Rightsizing intends to create a lean, effective, agile, and responsive bureaucracy. While it aims to merge agencies and positions that are functionally redundant/duplicative, it also targets to strengthen or upsize agencies by giving them wider mandate and additional personnel and budget. With this, the government will be able to save more funds to finance important programs and projects on infrastructure, social services, health, agriculture, among others. It is, as Senator Sonny Angara explained, “putting your government resources where it really matters, or where it is most urgent.” Another law that we fully support is the Budget Modernization Bill to institutionalize the cash-based budgeting system to strengthen fiscal discipline in the allocation and use of budget resources. It limits appropriations for obligation and implementation until the end of each fiscal year, promoting discipline and improved operational planning and execution of programs, activities, and projects. I always tell agencies to submit shovel-ready projects for budget allocation to ensure that every centavo in the budget will be spent and implemented timely. Further, we require a law to institutionalize the government’s shift to electronic-governance. The e-Governance law aims to establish, support, and maintain an integrated, digitally-empowered government that offers safe, accountable, and transparent services to its citizens, and utilizes open data to foster economic development and international competitiveness.

Preventing financial crimes

I agree with the BSP in pushing for the passage of two laws that will prevent financial crimes. The pandemic has accelerated digital transactions, with the BSP Digital Roadmap aiming to convert 50 percent of retail payments to digital. The Anti-Financial Account Scamming Act aims to deter cybercriminals, protect the financial industry, and strengthen consumer protection. It includes proportionality, client account access, and higher penalties for money mule and social engineering schemes. We are also advocating transparent governance and anti-corruption mechanisms in banks and financial institutions by amending RA 1405 which restricts BSP’s supervision over deposit accounts. The International Monetary Fund raised concerns about the impact of the country’s and Lebanon’s secrecy laws on prudential and anti-money laundering and combating the financing of terrorism frameworks. Lebanon has since passed two laws on lifting secrecy for public officials and allowing forensic audits of Central Bank and state institutions. Only the Philippines has bank deposit secrecy laws that constrain BSP’s prudential supervision. Once enacted, this law will expand BSP’s ability to: undertake effective supervision; successfully combat domestic/global tax evasion, money laundering, and other financial crimes; promote harmonious and supportive international relations; and comply with international transparency standards. Beyond budget, the PBBM administration has defined its 20 priority legislative measures. We hope that our good legislators will continue their staunch support to enact the much-needed laws to realize the country’s agenda for prosperity — for every Filipino to benefit from sustainable and inclusive growth. *(Amenah F. Pangandaman is the current Secretary of the Department of Budget and Management.)*