‘2015 budget contains P323 B in potential savings’

MANILA, Philippines - The proposed P2.606-trillion 2015 national budget includes P323 billion in lump sums that could potentially be used as savings, Rep. Jonathan de la Cruz of the party-list group Abakada said yesterday.

Dela Cruz said P140.6 billion of the amount is called Pension and Gratuity Fund (PGF) while P118.1 billion is labeled as Miscellaneous Personnel Benefits Fund (MPBF).

There are also “unprogrammed appropriations,” including P54 billion for the planned government buyout-takeover of the breakdown-prone Metro Rail Transit 3, the rail line along Edsa, he said.

“All of these funds and appropriations or their balances could be declared as savings if not released to or used by agencies or offices,” he added.

Dela Cruz is one of 18 congressmen who voted against the budget last Wednesday. The House approved the measure on third and final reading, with 198 voting for its approval.

Davao City Rep. Isidro Ungab, appropriations committee chairman, could not be reached for comment on Dela Cruz’s claim.

However, in a statement last week, Ungab lamented that some of those who voted against the budget were spreading false information about it.

He cited the claim of Bayan Muna that there was a P423-billion budget erratum for the Department of the Interior and Local Government, which he said had “absolutely no basis.”

Bayan Muna later admitted that it erred in attributing the amount to the DILG. It said P423 billion was the total of national government assistance to LGUs and internal revenue allotments, which represent LGUs’ share from national taxes.

Under the approved budget, the pension fund would be for retirees in the military, police, Coast Guard and other national government agencies, including constitutional offices.

It is also allocated for the payment of separation benefits and incentives, terminal leave benefits and leave credits.

On the other hand, the personnel benefits fund would be for filling of vacancies and newly created positions, year-end bonus, economic relief allowance, clothing allowance, performance-based incentive and other employee benefits.

The unprogrammed fund would be available if there is excess collection from non-tax sources, new tax revenues and loans for foreign-assisted projects.