Dealing with the budget process problems: Leak-plugging or Re-piping?

The September 27, 2008 editorial of the Philippine Daily Inquirer entitled “Plugging the Leak” gave us an insight on some of the realities surrounding the budget process of the country. It implied that while the “power of the purse” remains with the Congress, the “power over the contents of the purse”, the way and how much should be spent where, still remains with the President.

As the editorial notes: There is no disputing the President’s complete control of the current budget process. It is one main source of her continuing hold on Malacañang; it explains in large measure her continuing political relevance despite a three-year-long crisis of legitimacy. She has learned to keep most of her political allies happy, through a judicious mix of open budgets (open to congressional insertions, that is) and tight control of fund releases.

The editorial also surmises that “[i]f the proposed 2009 budget is any indication, she has even learned to provide for her political future by padding the proposal with billions of pesos in potential election-spending funds.” This is because “the political class (not just President [Gloria] Arroyo alone) found loopholes in the law, and widened them.” An example is the provision on savings found in Article VI, Section 25 (5) of the Constitution which is being used by the President thus “[leading] us down the road, ultimately, to the wonderland of rolled-over budgets”.

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