PNoy's half-trillion SPF 'customary' but not 'pork' - Palace

MANILA, Philippines — President Aquino's P501 billion Special Purpose Funds (SPF) in the proposed 2015 budget will not be an unlimited presidential pork barrel, Malacañang said Thursday.

Presidential Communications Operations Office chief Herminio Coloma Jr. said the SPF was intended for contingency expenditures and that including it in the national budget was based on "established management practice."

"It is customary that a certain portion of the annual budget is set aside for contingency expenditures that are essentially variable and not amenable to precise determination at the time of budget preparation," Coloma said.

"For example, calamities. We only know that there is an average of 20 typhoons every year, but we do not know exactly how many, and we are... While we hope that there will be minimal damage, we also know from experience that there can be considerable damage," Coloma added.

Of the total amount of SPF, P378 billion are programmed appropriations or those which the availability of funds has already been determined and assured. The remaining P123 billion are unprogrammed appropriations.

For the next fiscal year, the SPF releases include the following:

Programmed Appropriations

• Calamity Funds – P14 billion
• Contingency Funds – P2 billion
• International Commitment Fund – P7.4 billion
• Pension and Gratuity Funds – P140.6 billion
• Miscellaneous Personnel and Benefit Fund – P118 billion
• E-Government – P1 billion
• Rehabilitation and Reconstruction – P1 billion
• Budgetary Support to Government-Owned and -Controlled Corporation (GOCC) such as PhilHealth, Napocor, and others – P62.7 billion
• Allocation to Local Government Units – P33 billion

Unprogrammed appropriations (major components)

• Budgetary support to GOCCs – P5 billion
• Armed Forces of the Philippines modernization – P10 billion
• Equity buyout of the Metro Rail Transit Corporation – P53.9 billion

Critics claim that the SPF serve as the President's pork barrel since the release of the funds is up to the discretion of the Chief Executive.

Like the SPF, the congressional pork barrel or the Priority Development Assistance Fund (PDAF) was also a lump sum appropriation that was under the discretion of government officials - senators and congressmen.

Amid the controversies arising from the PDAF scam and the executive department's Disbursement Acceleration Program, the Palace assured that the government will not allow the SPF to be misused.

"Availment of special purpose funds also involves close—or also requires close adherence to financial control and accountability measures," Coloma said.

"This must be fully justified by the concerned head of department or agency and may involve vetting by the appropriate Cabinet cluster before being recommended for approval by the President. Actual disbursement is subject to regular auditing rules and regulations," he added.