Alternative Budget Initiative Consortium on the possible budget veto and calibrated fund release

Below is the press release issued by the organizations under the Alternative Budget Initiative Consortium this afternoon in a press conference at Sulo Hotel in Quezon City. BusinessWorld, PCIJ, dzAR and QC-based photojournalists covered the event. The panel, facilitated by FDC secretary-general Milo Tanchuling, includes Prof. Leonor Briones of Social Watch Philippines and FDC president Walden Bello.

PRESS RELEASE
Alternative Budget Initiative Consortium
Contact persons:
Prof. Leonor Briones, Social Watch Philippines, @ 0917-535-9884
Milo Tanchuling, Freedom from Debt Coalition, @ 0920-9018711

FOR IMMEDIATE RELEASE
31 January 2008

Alternative Budget Group, Legislators Say NO to Budget Veto and Calibrated Fund Release, Call for Swift Approval of the 2008 General Appropriations by Arroyo

In a firm belief that social development is a pressing concern of the country, the Alternative Budget Initiative convened by Social Watch-Philippines (SWP), and legislators warn against a possible veto or calibrated fund release by the president of the 2008 General Appropriations. This is in reaction to disagreeable statements from government officials on the insertions and realignments, as well as reduction in interest payments on debt made by the House and Senate on the budget.

“Members of the Alternative Budget Initiative (ABI) are saying NO to the planned veto or calibrated fund release by the administration. While the budget is not perfect, it responds to the public demand that allocations for education, health, agriculture, environment and other Millennium Development Goals (MDGs) be increased. The 2008 budget approved by the House and Senate is likewise historic as the process allowed participation from civil society,” said Prof. Leonor Briones, convenor of Social Watch-Philippines and spokesperson of ABI.

Rep. Edcel Lagman, chairperson of the House Committee on Appropriations further stressed that the veto has no basis because nothing in the budget violates any laws nor will result in unbalancing it.

“The total amount of P1.227 trillion originally proposed by the Executive remains the same. The challenge is for the revenue collection agencies to fulfill their targets and not incur shortfalls,” Lagman stressed.

The debt watchdog Freedom from Debt Coalition (FDC) further denies that the reduction interest payment is illegal.

“The reduction came from correcting the calculation of interest on foreign debt which was originally based on Ph48-49 per dollar, deferment of loans because they are their tainted or have not been utilized properly, and allocations for future borrowings. It is about time that Congress responds to the challenge against the practice of indiscriminate and blind-eye payment of debts to favor the needs of the people,” said FDC President Walden Bello.

The ABI also warns that the option of “calibrating” expenditures can be an excuse for limiting releases to those who oppose the excesses of the administration. Releases to preferred areas can be accelerated and those for opposition areas “calibrated” as these have happened in the past already. Any delay in the release of funds to MDG-related programs will only defeat the original purpose of Congress to provide more resources for social development and to give much needed services to the people.

Further, the civil society groups reiterate its proposal to lawmakers to pursue transparency and accountability in the budget through the creation of monitoring mechanisms in the House and Senate. Likewise, the group called for institutionalization of the resolution adopted by the House on November 20,2007 authored by Representatives Lorenzo “Erin” Tanada III and Teofisto “TG “ Guingona III. Allowing people participation in the annual budget deliberations should be passed into law.

“We recognize the support and cooperation of minority legislators from both Houses of Congress and progressive lawmakers from the administration led by Appropriations Committee Chair Edcel Lagman. Their willingness to work with civil society is a major step in the long journey towards a responsive and people-oriented legislature. The challenge now is for the President to swiftly approve the budget proposal for the realization of these gains,” ended Prof. Briones. ###