Monday, 26 August 2013

PIA News Dispatch - Saturday, August 24, 2013

Congress will have final say on new system of disbursement, says Abad

Budget Secretary Florencio Abad defended the decision of President Benigno S. Aquino III to abolish the Priority Development Assistance Fund (PDAF) of lawmakers saying that in the end it’s the members of Congress who will have the final say on the new system of disbursement.

Some administration critics said the major reason why the President called on scrapping PDAF is to have total control of the money allotted to members of Congress.

But in a radio interview over dzRB Radyo ng Bayan on Saturday, Abad said the PDAF issue is open for deliberation and the members of Congress will decide on it and not the executive branch.

Abad said while the Executive proposes the guideline and sets limits to projects needing funding, in the end Congress will have the final decision.

“Ang Executive, nagtatalaga ng guidelines. Ngayon, ang pagpapatibay, ‘yung approval nito ay nasa Kongreso,” he said.

At the same time, Abad said the Palace can not control the new system of disbursement because all the releases are posted on government websites to ensure transparency.

According to Abad, among the projects to be included on the limited menu under the new system will be projects concerning education such as granting of scholarships, alternative learning systems and assistance to students.

Also included will be health projects, summer jobs for students, projects ensuring peace and order and building emergency evacuation centers.

Infrastructure development will also be prioritized, Abad said, such as building local roads and bridges, day care centers, and barangay health stations.

The President has decided to abolish PDAF to put an end to abuses being committed by some groups at the expense of the public that need major services and government projects, Abad said.

The government has to carry out a new system of disbursement to lawmakers so that the P25.2 billion already allotted in the national budget could be spent wisely for public good, he said.

In a statement in Malacanang on Friday, President Aquino called for the abolition of PDAF amid allegations of misuse of some P10 billion public funds through releases to bogus non-government organizations (NGOs).

The President directed Abad to consult with Senate President Franklin Drilon and House Speaker Feliciano Belmonte Jr. regarding the removal of the PDAF and the crafting of a new system.

Established in 1990, the PDAF was intended to bring development to every part of the country by giving congressmen allocations regardless of their political affiliations.

PDAF fills the limitations of the national government in spearheading development projects. Under the system, lawmakers propose projects to be funded by their PDAFs. PND (as)


Abad explains special purpose funds, asks critics not to muddle situation

Budget Secretary Florencio Abad appealed to those claiming to be experts on the budget to help the people understand how government money is spent and not muddle the issue of disbursements.

“Ang pakiusap natin sa mga kababayan natin, lalong-lalo na ‘yung sinasabing sila raw ay dalubhasa sa budget, tulungan naman nating bigyan ng paliwanag ang ating mamamayan, at huwag naman natin silang bigyan ng paliwanag na hindi naman makakapagmulat sa kanila,” Abad said in a radio interview over dzRB Radyo ng Bayan on Saturday.

“Magulo na nga ang sitwasyon, guguluhin pa natin, samantalang, puwede naman nating paliwanagan ang ating mga kababayan.”

Some critics said that while there’s a call to abolish the discretionary funds, they have been asking why the presidential pork has to be retained.

Abad said that there are people who are confusing the public to put the President in bad light regarding the pork barrel issue.

He explained that there must be lump sums or special purpose funds so that the government could immediately act, and would have the money, during emergency situations.

Among these funds include the calamity fund for typhoon victims, the contingency fund for overseas Filipino workers affected by unrest abroad, and money for emergency response by the police and the military.

Another special purpose funds are pension funds, the internal revenue allotment (IRA) of LGUs, and debt servicing, he said.

It is not practical for the executive branch to go to Congress during an emergency situation to get the appropriate budget that’s why special funds are created in the budget.

Another contentious issue is the Miscellaneous Personnel Benefits Fund, he said. Some critics said it’s a President’s pork barrel, but Abad said it is not because it has a specific part in the national budget.
This money is transferred to departments when there is a need to be filled, he said.

President Aquino called on Friday for the abolition of PDAF amid allegations of misuse of some P10 billion public funds through releases to bogus non-government organizations (NGOs). He directed Abad to consult with Congress regarding the removal of the PDAF and the crafting of a new system.

PDAF, established in 1990, was intended to bring development to every part of the country by giving congressmen allocations regardless of their political affiliations. PND (as)


Government has enough resources to help typhoon, flood victims

The administration made an assurance on Saturday that the government has enough money to help typhoon and flood victims as a result of a more efficient fiscal management.

Budget Secretary Florencio Abad said in a radio interview over dzRB Radyo ng Bayan that because of a better economy under the Aquino administration, the government was able to cut the interest for its debts enabling it to have more fund for different programs.

Also because of a stronger economy under the President’s stewardship, the country’s need to borrow decreases, Abad said.
There is also an increasing tax collection in the country making the national government have more money to fund wide array of social projects, he added.

“Ang ibig sabihin nito, ang ating pamahalaan sa ngayon ay nagkakaroon ng lumalaking fiscal space o pondo na puwedeng gamitin sa iba’t ibang programa, Abad noted.

For instance, Abad said that for next year, the administration allocated P27 billion for flood control initiatives.

When the President visited Laguna this week, he announced the construction of dikes and flood control structures to mitigate the flooding in Laguna, Abad said.

“Kung makikita ninyo ngayon sa Metro Manila, maski na bumabaha, mabilis mawala ang tubig dahil nga ito sa mga ginagawang flood control projects,” he added.

The government has a remaining P6.8 billion calamity fund at the middle of this year with a separate P680 million as contingency fund, the budget chief said.

Different departments, which are frontliners during calamities, also have huge quick reaction funds in their coffers, he said. Among these agencies include the Department of National Defense (DND) and the Office of Civil Defense.

Because of the quick reaction fund, these agencies could immediately react and help communities during disasters even without direct supervision of the President.

“Ito ang kalagayan at sitwasyon natin ngayon. Kaya huwag mangangamba ang ating mga kababayan dahil may sapat na pondo ang ating mga ahensiya at ating mga calamity fund para tulungan sila,” Abad said. PND (as)