A lot of people tuned in during the oral arguments by the Executive
Branch before the Supreme Court last 28 January 2014. The Executive was
represented by the Department of Budget and Management (DBM) Secretary
Butch Abad and the Solicitor General Francis Jardeleza. It was
interesting to know the answers to several questions: Whose idea was
DAP? Why was it put together? Who drafted it? What was the impact of
enforcing DAP in the bureaucracy? When dod it start? These would have
been easy to learn if we had a Freedom on Information Law or even just
the Robredo-Disclosure Bill.
There were also public administration principles that were considered
and really new ones that were offered such as the “use or lose”
principle invoked by the Executive to force the Executive agencies to
use their funds. Savings declared as early as June of the fiscal year
(this is disastrous, to say the least). Augmenting an item which is not
for the Executive Branch (notion of cross border funding, such as
Commission on Audit and House of Representatives). Use of mandatory
reserves which cannot be used to augment other items. Loose use of such
key budgeting principles as “mandatory reserves,” “augmentation fund,“
“final discontinuance,” abandonment” and “re-alignment.”
Interestingly, the whole oral defense of the Executive Branch sets
aside the existing process (Budget Call), the role of the Development
Budget Coordination Committee (DBCC) as well as that of Congress. There
was no specificity because the 2010 budget essentially was a budget of
the previous administration and that is why they impounded (review of
expenses and projects) some funds resulting in a slowdown which thus
affected growth. Because of their decision to slow things down, there
was negligible growth and the economy contracted. It was not because of
the absorptive capacity of the Bureucracy or the DRRM Law as they
pointed out. In fact, the Disaster and Risk Reduction and Management was
not given the P1-billion budget needed and one of the early budget
reforms the Aquino administration did was to remove pre-disaster share
of the national with the local government units.
Interestingly, too, the Aquino Administration adopted in FY 2011
zero-based budgeting. If indeed it was a zero-based budgeting, there
would have been no slow grind. It would have cured the defect they
wanted done. Zero-based budgeting is an approach to planning and
decision-making which reverses the working process of traditional
budgeting. In traditional incremental budgeting (Historic Budgeting),
departmental managers justify only variances versus past years, based on
the assumption that the “baseline” is automatically approved. By
contrast, in zero-based budgeting, every line item of the budget must be
approved, rather than only changes. During the review process, no
reference is made to the previous level of expenditure. Zero-based
budgeting requires the budget request be re-evaluated thoroughly,
starting from the zero-base. This process is independent of whether the
total budget or specific line items are increasing or decreasing. So, is
zero-based budgeting just lip service or were Abad and Jardeleza just
mouthing things to defend the indefensible?
Pointed questions were asked by Justices Lucas Bersamin, Antonio
Carpio and Arturo Brion. It was a withering scene where the DBM
Secretary and Solicitor General often had stuttering and stammering
episodes in answering questions from the Bench. But what probably got
the jaded listener to stand up was when the Executive Duo said that DAP
is functus officio or moot and academic. And that the Supreme Court need
not rule anymore on the instant issue because the Executive had dumped
DAP. In fact, the news over the weekend virtually became a distancing
strategy, most especially for BSA3.
According to DBM Secretary Abad, it was the President’s idea to have
DAP. No quibbling there. And we have a President who personally takes
the shot from any and all for his KKK and here before the Bench, Abad
dumped his President even while Justice Brion established later that
Abad had expertise (cabinet secretary, years as legislators with Abad
even volunteering he was chair of Appropriations Committee, DBM
Secretary, etc). Even Memo Circular No. 541 was the subject of drilled
questionings on intent and statutory construction. The concept of final
abandonment by June was an issue that kept on being raised considering
that a fiscal year is 12 months and the principle of obligation in
budgeting has always been 2 years.
When you hear the DBM Secretary saying that to deal with slow-poked
agencies, removal of budget is necessary, it shows the kind of
management style they have. Imagine a budget removed from an agency by
June of the fiscal year? Incredible! Then again, Abad and Jardaleza
crossed the thin line when they said that the use of the power to
augment non-existing items is no violation of the Constitutiton. I was
shocked!
DAP is also about discretionary power. It’s how one uses savings and
justifies its usage. An ordinary mind refers to it as juggling of funds!
The Executive duo kept saying there is nothing to resolve since DAP has
completed its task. I wonder what that task was since the timing is
dubious. It’s as if all these storylines were being produced after the
fact.
The post-DAP environment saw the following sections adopted in the
2014 General Appropriations Act (GAA): Sections 67, 68, 69, 70, and 71
of the General Provisions of Republic Act No. 10633 outlines the
definition and rules in the use and realignment of Savings.
According to Section 68, Savings refer to “portions or balances of
any programmed appropriation in this Act (2014 GAA) free from any
obligation or encumbrance which are: (i) still available after the
completion or final discontinuance or abandonment of the work, activity,
or purpose for which the appropriation is authorized; (ii) from
appropriation balances arising from unpaid compensation and related
costs pertaining to vacant positions and leaves of absence without pay;
and (iii) from appropriation balances realized from the implementation
of measures resulting in improved systems and efficiencies and thus
enabled agencies to meet and deliver required for planned targets,
programs and services approved in this Act at a lesser cost.”
The same section also limits augmentation to existing program,
activity or project with appropriation in the GAA and prohibits the use
of Savings to fund non-existing programs, activities and projects or to
appropriations not authorized by the GAA.
The Supreme Court interprets and it should rule on DAP to lay down
jurisprudence and guide the Executive and the Legislative Branches. More
so, it should protect the taxpayers from patently unconstitutional
acts. Not because the program ended means the Supreme Court can’t look
into it. The more it should rule for reason and justice.
As a citizen, I recall Humpy Dumpy . . .
source: Manila Times' Column of MA. LOURDES N. TIQUIA