Recently, Former President Rodrigo Duterte and Davao City Representative made claims regarding the proposed P 6.326-trillion 2025 National Budget. They contended that the bicameral conference committee report of the General Appropriation Bill (GAB) contained blank items, particularly the budget amounts intended for the Department of Agriculture.
This topic regarding the said “blank items” of the GAB had filled the news and social media outlets. In order to have a better understanding about this issue, this week’s edition will give light to matters frequently therein like the General Appropriation Bill, the bicameral conference committee report and the national budget.
At the outset, under our system of government, part of the legislative powers of Congress is the power of the purse which, broadly described, is the power to determine the areas of national life where government shall devote its funds; to define the amount of these funds and authorize their expenditure; and to provide measures to raise revenues to defray the amounts to be spent. xxx By granting Congress this power, the Constitution allows the Filipino people, through their representatives, to effectively shape the nation’s future through the control of the funds that render the implementation of national plans possible.[1]
Congress carries out the power of the purse through the appropriation of funds under a general appropriations law (titled as the General Appropriations Act or the GAA) that can easily be characterized as one of the most important pieces of legislation that Congress enacts each year. For this reason, the 1987 Constitution (and previous Constitutions) has laid down the general framework by which Congress and the Executive make important decisions on how public funds are raised and spent – from the policy-making phase to the actual spending phase, including the raising of revenues as source of government funds. (Idem)
The Constitution expressly provides that “no money shall be paid out of the Treasury except in pursuance of an appropriation made by law.” The Administrative Code of 1987, on the other hand, defines “appropriation” as the authorization made by law or other legislative enactment, directing payment out of government funds under specified conditions or for specified purposes. It is the legislative act of setting apart or assigning public funds to a particular use. This power carries with it the power to specify the project or activity to be funded under the appropriation law and, necessarily, the amount that would be allocated for the purpose. (Idem)
The Executive Department, on the other hand, participates through its role in budget preparation and proposal which starts the whole process. It is the Executive who lays out the budget proposal that serves as basis for Congress to act upon. This function is expressed under Article VII, Section 22 of the 1987 Philippine Constitution – The President shall submit to the Congress, within thirty days from the opening of every regular session as the basis for the general appropriations bill, a budget of expenditures and sources of financing, including receipts from existing and proposed revenue measures. (Idem)
The power of Congress to legislate the national budget subject to the strict terms of Section 24 and 25, Article VI of the 1987 Philippines Constitution. Section 24 thereof categorically states that all appropriation bills shall originate exclusively in the House of Representatives, but the Senate may propose or concur with amendments. Section 25 (1) thereof, on the other hand, dictates that the Congress may not increase the appropriations recommended by the President for the operation of the Government as specified in the budget. While Section 25 (2) mandates that – No provision or enactment shall be embraced in the general appropriations bill unless it relates specifically to some particular appropriation therein. Any such provision or enactment shall be limited in its operation to the appropriation to which it relates.
The above-discussed are the constitutional mandates that serve as a guide to our Executive and Legislative department in the formulation of the National budget and the enactment of General Appropriation Act which provides funds for the implementation of government projects and policies for the entire fiscal year.
With regard to the definition bicameral conference committee report, it pertains to the reconciled version of a bill if there are inconsistencies in the versions passed by the House of Representatives and House of Senate. To reiterate, although the GAB, like other appropriation bills, exclusively originates from the House of Representatives, the Senate may propose amendments thereto.
[1] G.R. No. 208566, November 19, 2013