MANILA, Philippines — Opposition lawmaker Sen. Risa Hontiveros said the Senate must include safeguards in the 2025 budget to prevent items from being deemed unconstitutional.
During the Senate’s plenary session on the 2025 National Expenditure Program on Wednesday, November 7, Hontiveros posed a challenge to Sen. Grace Poe, the 2025’s budget sponsor and the Chair of the Senate Committee on Finance.
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“If we consider the possible constitutional breach of the GAA (General Appropriations Act), programmed and unprogrammed, that exceeds the NEP, is it possible that the sponsor and the Chair of the Finance Committee to make a resolution, and a general provision that the principle of the GAA not exceeding the NEP (National Expenditure Program) will be followed?” Hontiveros said in Filipino.
The NEP is the executive branch’s proposed version of the national budget. It then undergoes the legislative process and once finalized and signed by the president, it becomes the GAA.
Throughout the year, the 2024 GAA raised eyebrows among lawmakers in the House of Representatives and the Senate.
A major point of contention is the insertion of the P449.5 billion of unprogrammed funds into the 2024 GAA, in excess of the 2024 NEP. The 2024 NEP only requested P281.9 billion.
Hontiveros also asked Poe if she would introduce a provision that funds for projects certified by the National Economic and Development Authority (NEDA) as priorities would not be diverted into unprogrammed funds.
Budgets for several major items in the 2024 GAA were left in limbo after being redirected to unprogrammed funds. Some of these include the MRT LINE 4 Project, and the Metro Manila Subway Project.
In principle, Poe agreed with Hontiveros, but the former offered no assurance. Poe said that she would look into it, particularly the projects under the Department of Public Works and Highways.
“At the right time, all of us will have the chance to give suggestions whether these funds will be increased or decreased,” Poe said in Filipino.
Philhealth funds
Another provision in the 2024 GAA that was raised was the line allowing the Department of Finance (DOF) to order the transfer of idle funds back into the national treasuries. The DOF ordered the return of P89.9 billion worth of idle Philhealth funds in three tranches back to the national coffers, much to the protest of several lawmakers and medical advocates.
The matter has been brought to the Supreme Court, which has issued a temporary restraining order (TRO) against the final tranche.
During the plenary session, Poe was questioned about the implications of this TRO.
Poe said that the DOF will already comply with whatever the Supreme Court orders, but clarifies that the TRO does not mean that the previous two tranches will be returned.
She said the final tranche is P30 billion. The said P30 billion was meant to fund transportation items but Poe said that the budget for these items has been put on hold following the TRO.
However, Poe also said that these items could be funded by the national budget in the coming years.
While it was ordered to transfer back funds, Philhealth has seemingly not been left wanting, with excess funds amounting to P500 billion.
Senate President Francis Escudero also questioned Poe and the economic managers on their position on this excess.
“Any surplus, while it may look good on the books, is actually money not well spent,” Escudero said.
He added that with inflation on the rise, the value of that P500 billion could further depreciate if not used. Escudero also said that the value lowers by P20 billion a year.
In a separate statement, Escudero said that the P500 billion could be used for climate change mitigation measures.