Facebook Instagram Linkedin Twitter Youtube
Home Blog Page 3220

Peso inches up on dovish Fed hopes

BW FILE PHOTO

THE PESO inched up against the dollar on Wednesday amid expectations of a pause by the US Federal Reserve at its September meeting after a soft US jobs report.

The local currency closed at P56.725 versus the dollar on Wednesday, rising by 2.50 centavos from Tuesday’s P56.75 finish, data from the Bankers Association of the Philippines’ website showed.

The local unit opened Wednesday’s session slightly stronger at P56.68 per dollar. Its intraday best was at P56.60, while its weakest showing was at P56.79 against the greenback.

Dollars traded went down to $1.23 billion on Wednesday from $1.28 billion on Tuesday.

“The peso strengthened as the weaker US job openings and consumer confidence reports tempered market views of a more hawkish US policy stance,” a trader said in an e-mail.

US job openings dropped to a near two-and-a-half-year low last month amid a slowing labor market, which fanned bets that the Fed would keep borrowing costs steady in September.

The Job Openings and Labor Turnover Survey released on Tuesday showed job openings dropped by 338,000 to 8.827 million on the last day of July, the lowest since March 2021.

Meanwhile, a survey from the Conference Board showed consumers’ perceptions of the labor market cooled in August.

The US central bank hiked borrowing costs by 25 basis points (bps) last month, bringing the fed funds rate to a range between 5.25% and 5.5%.

It has raised rates by a cumulative 525 bps since it began its tightening cycle in March last year.

The Fed will hold its next policy meeting on Sept. 19-20.

The peso was also supported by a weaker dollar following the release of weak US data, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

For Thursday, the trader said the peso could appreciate further ahead of likely softer US private payrolls data.

The trader sees the peso moving between P56.55 and P56.80 per dollar on Thursday, while Mr. Ricafort sees it ranging from P56.60 to P56.80. — AMCS

PSEi climbs as soft US data boost Fed pause bets

REUTERS

PHILIPPINE SHARES climbed on Wednesday following the release of soft US economic data, which could lead the US Federal Reserve to pause its tightening cycle again next month.

The Philippine Stock Exchange index (PSEi) went up by 70.29 points or 1.12% to close at 6,295.29 on Wednesday, while the broader all shares index rose by 27.57 points or 0.82% to end at 3,382.19.

“The PSEi continued to climb today as sentiment found a lift from the lower-than-expected US job openings and consumer confidence, reinforcing prospects of a tightening pause from the US Fed at their September meeting,” China Bank Securities Corp. Research Director Rastine Mackie D. Mercado said in an e-mail on Wednesday.

“Sentiment was buoyed by the bigger than expected drop in US job openings and consumer confidence, with investors speculating that this could ease the pressure on the Federal Reserve to hike interest rates,” China Bank Capital Corp. Managing Director Juan Paolo E. Colet likewise said in a Viber message.

US job openings dropped to a near two-and-a-half-year low last month amid a slowing labor market, which fanned bets that the Fed would keep borrowing costs steady in September.

The Job Openings and Labor Turnover Survey released on Tuesday showed job openings dropped by 338,000 to 8.827 million on the last day of July, the lowest since March 2021.

Meanwhile, a survey from the Conference Board showed consumers’ perceptions of the labor market cooled in August.

“Despite upbeat price action over the past two trading days, we remain wary of a possible uptick in volatility and selling pressure [on Thursday] given the upcoming effectivity date of the MSCI rebalancing (Sept. 1), and likely profit taking following the oversold rally,” Mr. Mercado said.

“The PSEi may try to move above 6,300 as part of the market’s current rebound from oversold conditions, but selling pressure is expected to build as we approach the major resistance at 6,375,” Mr. Colet added.

Most sectoral indices rose on Wednesday, except for property, which dropped by 0.10 point to 2,598.27.

Meanwhile, holding firms went up by 136.22 points or 2.32% to 5,998.92; industrials increased by 107.68 points or 1.23% to 8,858.97; financials jumped by 8.20 points or 0.44% to 1,855.93; mining and oil climbed by 33.51 points or 0.33% to 10,082.30; and services rose by 2.58 points or 0.16% to 1,532.27.

Value turnover went down to P3.97 billion on Wednesday with 672.71 million shares changing hands from the P5.63 billion with 395.06 million issues seen on Tuesday.

Advancers outnumbered decliners, 90 to 82, while 62 names closed unchanged.

Net foreign selling went up to P375.70 million on Wednesday from P219.17 million on Tuesday.

For the rest of the week, Mr. Mercado put the PSEi’s support at 6,150 and resistance at 6,370. — S.J. Talavera

Palace approves three-year plan to upgrade food logistics network

PHILSTAR FILE PHOTO

PRESIDENT Ferdinand R. Marcos, Jr. has approved a three-year plan to upgrade the food distribution network, saying that the logistics industry remains hampered by the lingering impact of the pandemic.

The Three-Year Food Logistics Action Agenda seeks to “modernize” the food distribution system, reduce transport and logistics costs, increase investment in logistics infrastructure like transport and storage facilities, and address “other supply chain gaps,” the Palace said in a statement.

It said the plan also seeks to deter hoarding and smuggling, as well as food imports that are not immediately moved from the ports to the markets.

The plan calls for increased monitoring of warehouses and cold storage facilities and harnessing information and communications technology “to improve logistics performance.”

“The action plan’s general objective is to ensure the availability, accessibility, and affordability of food, and that consumers reliably get the right product at the right time,” the Palace said.

It said the Department of Trade and Industry (DTI) is currently seeking to integrate food terminals into the logistics network. It is currently building additional food hubs in Metro Manila and other parts of the country.

“By integrating food terminals, the supply chain from producers to consumers could be shortened, with standardized logistical processes and transportation system directed towards specific destinations,” the Palace said.

The food hubs would operate as central command centers to effectively maintain “balance between demand and supply.”

The Philippines ranked 60th of the 160 countries in the World Bank’s Logistics Performance Index in 2018.

Trade Secretary Alfredo E. Pascual said in a statement that the DTI is endorsing logistics-related measures for inclusion in the priority legislative agenda, including a proposed International Maritime Competitiveness Act that would task the Maritime Industry Authority with regulating shipping lines and keeping shipping charges in check. — Kyle Aristophere T. Atienza

BCDA sees land sales of up to P1.45T if bill approved, may help fund military pensions

BCDA.GOV.PH

THE Bases Conversion and Development Authority (BCDA) said on Wednesday that it could generate up to P1.45 trillion from land sales if House Bill (HB) 8505 is signed into law.

“The BCDA estimates that this provision will free up 1,856 hectares of land, which can potentially generate P451.26 billion up to P1.45 trillion in revenue,” the BCDA said in a statement. It added that the proceeds could go towards funding military pensions.

HB 8505 will allow the conversion of 5% of BCDA economic zones to freehold status from leasehold, freeing up the land to be sold.

The BCDA expects the prospective buyers to be residential developers, who will then offer homes for sale.

On Aug. 22, the House of Representatives approved on third reading HB 8505, which is a proposed amendment to Republic Act No. 7227 or the Bases Conversion and Development Act of 1992. 

BCDA said HB 8505 will help it address obstacles to the full development of land it controls.

“The BCDA (needs) to make big, bold moves to adapt to changes (in the economic landscape) and deliver the socioeconomic transformation we envision for our development areas in Clark,” BCDA President and Chief Executive Officer Joshua M. Bingcang said.

Mr. Bingcang said that the bill will also extend the BCDA’s corporate term by another 50 years. The BCDA currently has a remaining corporate life of 19 years.

“This extension will increase the confidence of investors when transacting with the BCDA, as well as allow the BCDA to continue its support to the Armed Forces of the Philippines (AFP) Modernization Program,” it said.

The bill will also increase the authorized capital of BCDA to P400 billion from P100 billion. — Justine Irish D. Tabile

IRR on streamlined telecom permits expected next month

PHILSTAR FILE PHOTO

THE implementing rules and regulations (IRR) of the Executive Order (EO) No. 32, which calls for the telecommunications permit process to be streamlined, are due for launch by the third week of September, the Anti-Red Tape Authority (ARTA) said on Wednesday. 

“The IRR of EO 32 is required to be formulated by the technical working group (TWG) within 60 working days upon the EO’s effectivity on July 5,” ARTA said in a statement.

ARTA is a member of the TWG.

“The TWG members expressed optimism that… the IRR will be finalized ahead of schedule and submitted to the Office of the President,” it added.

On July 4, President Ferdinand R. Marcos, Jr. issued EO 32, also known as “Streamlining the Permitting Process for the Construction of Telecommunications (telco) and Internet Infrastructure,” which is intended to accelerate the Philippines’ digital transformation.

On Aug. 17, ARTA met with the other members of the TWG and consulted with stakeholders to finalize the IRR.

ARTA said that the TWG members tasked to complete the draft are the National Telecommunications Commission and the Departments of Public Works and Highways, and Interior and Local Government.

“The IRR provides the specific procedures to be followed by all regulating government agencies and local government units and outlines the requirements that must be complied in applications for constructing, operating, repairing, and maintaining telco and internet infrastructures,” it said.

“This is not just about making it easier to build telco infrastructure. It is about creating an environment where communication knows no bounds and technological progress becomes an accessible reality for all,” ARTA Secretary Ernesto V. Perez said in a statement.

In Ookla’s Speedtest Global Index in July, the Philippines ranked 89th with a mobile internet speed measurement of 25.88 megabytes per second (mbps), four places lower than its rank last month and last year. 

In fixed broadband, the Philippines ranked 49th with a median speed of 91.56 mbps, two places down from a month and a year earlier. — Justine Irish D. Tabile

PHL GDP target still within reach — Market Call

STOCK PHOTO | Image Dmitry Berdnyk from Unsplash

THE economy will likely hit the lower end of the government’s growth target this year, driven by improved employment numbers, First Metro Investment Corp. (FMIC) and the University of Asia and the Pacific (UA&P) said.

“We think the economy has sufficient vitality to still meet the lower part of the government’s target of 6-7%. The growth in employment in the second quarter should feed into second-half income and spending,” FMIC and UA&P said in their latest Market Call.

Gross domestic product (GDP) grew 4.3% in the second quarter, well below the 6.4% posted in the first quarter and the 7.5% from a year earlier. It was also the weakest GDP reading in over two years.

GDP growth averaged 5.3% in the first half, falling behind the pace on the 6-7% full-year target.

“Despite the slowdown in GDP expansion to 4.3% year on year in the second quarter, other key economic data do not preclude full-year growth of 6-7%. Sustained job growth, especially in manufacturing, construction, accommodation and food services and other services, and a slight uptick in exports, with an added boost from the peso depreciation in August, provide some glow for the economy,” it added.

According to the Philippine Statistics Authority, the unemployment rate averaged 4.6% in the first half, lower than the year-earlier reading of 6.1%.

FMIC and UA&P said growth in the second half will need to be driven by “robust gains” in employment and tourism, accompanied by tame inflation.

Government spending is also expected to accelerate in the second half, it added.

“National Government expenditures should accelerate in the second half as it ramps up infrastructure spending, with the Metro Manila subway and North-South Commuter Rail projects leading the way,” it added.

The lower-than-expected growth reading in the second quarter had been partly driven by a decline in government spending, which contracted by 7.1%.

“There remains more work to be done in the second half before we achieve the GDP growth target of 6-7% for the year,” the report added.

Meanwhile, FMIC and UA&P also revised upward their inflation forecast.

“Barring a possible transitory jump in rice and oil prices, inflation continues to move southward. Given these risks, we have upped our full year inflation forecast back to 5.7% from 5.5% last month,” it said.

Inflation eased to 4.7% in July. However, this was the 16th straight month of inflation exceeding the central bank’s 2-4% target.

Inflation averaged 6.8% in the first seven months, still above the central bank’s revised 5.6% full-year forecast.

“While inflation will likely spike in August and September due to higher oil and food prices, we think this will prove transitory as the supply response to high prices should prove adequate to bring year-on-year inflation to BSP’s 2-4% (target) by the fourth quarter,” it added. — Luisa Maria Jacinta C. Jocson

Coal-fired capacity for retirement in clean-energy shift seen at 5,000 MW

PEXELS-PIXABAY

THE Department of Energy (DoE) said its plan to retire or repurpose coal-fired power plants will involve up to 5,000 megawatts (MW) as the Philippines shifts to cleaner forms of energy.

“There will be retirement of coal capacity (of) around 4,000 or 5,000 megawatts or even more under the Clean-Energy Scenario,” Michael O. Sinocruz, DoE director for Energy Policy and Planning Bureau, said at a virtual public consultation on Wednesday.

“We are going to come up with an investment plan for the retirement and repurposing of (coal-fired power plants). And again, it is not only the Philippines that looking at the repurposing of coal. Even those countries that have RE (renewable energy) are also looking at the repurposing of coal,” he added.

The DoE estimates current coal power capacity at 12,473 MW, with dependable capacity at 11,394 MW, as of June.

This accounts for 44.1% and 46.1% of the Philippines’ energy capacity, respectively.

The Clean-Energy Scenario of the Philippine Energy Plan (PEP) 2020-2040 aims to increase the share of RE in the power mix to 35% by 2030, then to 50% by 2040.

Separately, Gerry C. Arances, convenor of the Power for People Coalition, said in a statement on Wednesday that his organization remains opposed to the major role played by gas in the PEP’s clean-energy transition.

“The continued presence of gas in the PEP does not achieve any of the goals of the DoE under the law. Gas is expensive, which will not benefit consumers. Gas is imported, meaning the supply will be at the mercy of the international market… Gas, in short, is the worst energy source that the DoE can rely on to fulfill its duties,” he said.

Mr. Arances said the DoE should release “its assumptions for the computation of electricity prices in the interest of transparency and to see if these assumptions are based on science and policy.”

Center for Energy, Ecology, and Development Deputy Executive Director Avril de Torres urged the DoE to heed the results of consultations, which demonstrated significant opposition to the transition plans.

“As the DoE moves forward to next rounds of consultations with stakeholders in Mindanao and Visayas, we urge it to learn from the feedback it received from an overwhelming number of participants raising alarm over these matters,” she said in a separate statement. — Sheldeen Joy Talavera

Nickel mining blueprint lays down industry ‘expectations’ for regulators

REUTERS

THE Philippine Nickel Industry Association (PNIA) said it is planning to review the mining industry blueprint to highlight its “expectations” for the removal of regulatory roadblocks that it said will unlock the industry’s economic potential.

PNIA President Dante R. Bravo said: “We drafted a set of expectations or course of action for each agency.”

These include the Departments of Environment and Natural Resources, Trade and Industry, Finance, Science and Technology, Interior and Local Government, as well as the Board of Investments and the Mines and Geosciences Bureau.

The PNIA said the blueprint will also contain credible data on the economic potential of Philippine nickel reserves and propose a strategy for the Philippines’ role in the global nickel production and processing trade.

It added that the draft should help investors navigate the complexity of mining regulations.

“Having an industry blueprint will help sustain interest and boost investor confidence as it signifies clear direction and commitment in the execution of policy and programs needed to promote the growth of nickel and to make it globally competitive,” PNIA Chairman Antonio L. Co said in a statement.

Mr. Co said the blueprint will also propose to simplify the process of establishing mines.

“Hopefully, the industry blueprint will help resolve policy and regulatory factors that (drag down) the development of the industry and unlock the economic opportunities from the… estimated 9 million hectares of land with mineral potential,” he said.

The revival of the plan is part of a broader PNIA push to fast track and streamline the approval of mining permits.

Mr. Bravo said the blueprint’s aim is to shorten the mining permit approval process to between six months and one year. — Adrian H. Halili

Coconut industry bats for 12-15% biodiesel blend

CHEN MIZRACH-UNSPLASH

THE coconut industry said on Wednesday that it is hoping that the government ultimately raises the share of coconut oil in the biodiesel blend to 12-15% from the current 2%, a move which it said has the potential to significantly lower prices for diesel users.

United Coconut Association of the Philippines, Inc. (UCAP) Chairman Dean Lao, Jr. said the current 2% biodiesel blend (B2) sells for less than P60 per liter, against regular diesel, whose price has already breached P60.

Speaking at a World Coconut Congress briefing on Wednesday, Mr. Lao said even an intermediate increase to a 5% blend could lead to the production of about 280 million liters of biodiesel a year, which can easily be supported by the available coconut oil supply.

“The coconut industry needs a value-added market that is sizeable, that is dependable, and that is not subject to the influence of foreign markets,” Mr. Lao said. “It can make a huge amount of difference to the coconut industry (to develop) a value-added market over time,” he added.

“In fact, we are also pushing for a (12% or 15%) blend as we have that much coconut oil,” he said.

Republic Act No. 9367, also known as the Biofuels Act of 2006, requires biofuels to make up a growing share of the energy mix to help reduce reliance on imported fuel.

Additionally, UCAP Vice-Chairman Marco Reyes cited the pollution-reduction benefits of a biofuel shift.

“Just by increasing the blend to 5%, the particulate matter in the air goes down by 83%. This will also result in P1.5 trillion in savings,” Mr. Reyes added.

“We need to rediscover our coconuts. We cannot just be importers of crude oil. We need to wean ourselves from dependence of crude oil,” he said. — Adrian H. Halili

Farm, fisheries census initial results due in March

PHILIPPINE STAR/KRIZ JOHN ROSALES

THE Philippine Statistics Authority (PSA) said it hopes to release by March the preliminary results of its 2022 Census of Agriculture and Fisheries.

“The PSA is committed to release the preliminary important results during the first quarter of next year,” National Statistician Claire Dennis S. Mapa said in a media on Wednesday.

Final data from the census, conducted every 10 years or so, will be released by July on a staggered basis.

Mr. Mapa said land dedicated to farming has been declining since 1980, when farmland was tallied at 9.73 million hectares.

“In 1991 (there were) close to 10 million hectares; in 2002 9.67 million hectares; and in 2012 it further declined to 7.27 million hectares,” he said.

The PSA’s Census of Agriculture for 2012, the latest edition of the census, tallied 5.56 million farms covering about 7.19 million hectares, for an average area of 1.29 hectare per farm.

In 2002, there had been 4.8 million farms across 9.67 million hectares.

“We need to update the data (from the last census) to discover the real situation on the ground,” he said.

The PSA said it applied new technology, including satellite imaging, to estimate crop volumes and the size of aquaculture farms.

The PSA will use satellite imaging and artificial intelligence, as well as a computer aided personal interview for data gathering. — Adrian H. Halili 

The statute of limitations extension

Earlier this year, the World Health Organization declared an end to the global public health emergency at the outbreak of coronavirus disease 2019 (COVID-19). Even so, we still have to deal with COVID-19 and all the disruption it inflicted at the height of the pandemic.

Similarly, from a tax perspective, the extension of the filing deadlines and the suspension of the running of the statute of limitations implemented at the height of the pandemic have had ripple effects which may still be felt today. There are still lingering questions such as “Was the running of the three-year prescriptive period to assess internal revenue taxes during the COVID lockdowns validly suspended by the Commissioner of Internal Revenue (CIR)?” And, “Was the CIR actually prohibited during the lockdown from assessing deficiency taxes?” The answers are still up for debate and there is no jurisprudence to settle these questions as yet.

For the sake of argument, however, let us assume that the CIR validly suspended the running of the statute of limitations via Revenue Memorandum Circular (RMC) No. 34-2020. The next question to be asked is, “For how many days has the running of the statute of limitations been suspended, thereby extending the Bureau of Internal Revenue’s (BIR) period to assess deficiency taxes?”.

Citing Section 4(z) of Republic Act No. 11469 otherwise known as the Bayanihan to Heal as One Act, Revenue Regulations (RR) No. 7-2020 suspended the running of the statute of limitations pursuant to Section 223 of the National Internal Revenue Code of 1997, as amended (Tax Code). The suspension commenced from March 16, 2020 and extended the statute of limitations by 60 days after the lifting of the state of emergency. RR No. 7-2020 was later amended by RR Nos. 10-2020, 11-2020, and 12-2020, which kept the policy that the extended due dates (e.g., 60 days after the lifting of the quarantine in the case of the suspension of the running of the statute of limitations) are to remain in effect, regardless of any extension or modification of quarantine.

Following these RRs, the BIR issued several RMCs (i.e., RMC Nos. 136-2020, 52-2021, 80-2021, and 93-2021) to clarify the number of days’ extension afforded by the suspensions. These issuances are also the same ones cited by the BIR in the recent Preliminary Assessment Notices and Final Assessment Notices/Formal Letters of Demand (collectively, Assessment Notices) it issues to assess taxpayers.

The recent set of Assessment Notices contains the following paragraph on the period of prescription:

“The running of the statute of limitations upon assessment was suspended in light of the declaration of an Enhanced Community Quarantine (ECQ) and Modified Enhanced Community Quarantine (MECQ) pursuant to Revenue Memorandum Circular (RMC) Nos. 136-2020, 52-2021/80-2021 and 93-2021 for 212 days, 107 days 101 days, respectively, as clarified by Operations Memorandum No. 66-2022. Therefore, the period of prescription is extended from the original prescriptive date up to (date of 420th day).”

Upon scrutiny, however, there seems to be a discrepancy between the total number of days expressly extended under the RMCs (i.e., 345 days) and the total number of days reflected in the Assessment Notices (i.e., 420 days). For better appreciation, below is a side-by-side comparison of number of days per RMCs and per Assessment Notices.

As noted from the table below, there is a difference of 75 days between what is actually stated in RMC No. 136-2020 and what the Assessment Notices have been reflecting. Looking back on the period covered by RMC No. 136-2020, the 137 days may have just considered the period from March 16, 2020 until May 31, 2020 when the majority of the heavily populated areas in Luzon were placed under either ECQ or MECQ, depending on the location.

There was, however, another declaration placing the National Capital Region and the provinces of Bulacan, Laguna, Cavite, and Rizal back on MECQ between Aug. 4, 2020 and Aug. 18, 2020, which is 15 days. Counting these 15 days plus the 60-day extension under RR No. 11-2020, as amended, such may have been the basis used to account for the additional 75 days being used in the Assessment Notices for RMC No. 136-2020.

While it may be argued that RR No. 7-2020 and its amendments justify the counting of 212 days used by the Assessment Notices, taxpayers may also argue that the BIR is estopped from considering the period from Aug. 4-18, 2020 since RMC No. 136-2020 (dated Dec. 7, 2020) clearly states that the total number of days excluded from the running of the statute of limitations is 137 days.

As of this writing, there is no separate BIR issuance published that covers the period from Aug. 4, 2020 to Aug. 18, 2020 since the subsequent RMCs (i.e., RMC Nos. 52-2021, 80-2021, and 93-2021) already take into consideration the ECQ and MECQ declarations in 2021. Considering the principle highlighted in the case of Tanada v. Tuvera (G.R. No. L-63915) on the obligation of the government to publicize all presidential issuances “of a public nature” or “of general applicability” as a requirement of due process, there should have been an RMC that clarified the basis for the 212 days currently indicated in the Assessment Notices.

Thus, in my view, assuming the statute of limitations was validly extended, the total adjustment to the prescriptive period of assessments should only be 345 days instead of the 420 days as proposed in the BIR’s Assessment Notices. As I mentioned earlier, however, whether any actual extension at all is valid is another matter altogether — one that I hope will reach the high court in due time.

The views or opinions expressed in this article are solely those of the author and do not necessarily represent those of Isla Lipana & Co. The content is for general information purposes only, and should not be used as a substitute for specific advice.

 

Paolo John Dantes is a manager at the Tax Services department of Isla Lipana & Co., the Philippine member firm of the PwC network.

+63 (2)8845-2728

paolo.john.dantes@pwc.com

VP’s 2024 budget breezes through House body with no questions asked

VICE-PRESIDENT SARA DUTERTE-CARPIO — PHILIPPINE STAR/KRIZ JOHN ROSALES

By Beatriz Marie D. Cruz, Reporter

PHILIPPINE Vice-President Sara Duterte-Carpio’s P2.39-billion budget request for 2024 breezed through the House committee on appropriations on Wednesday after her congressional allies voted to end the hearing on “parliamentary courtesy.”

“In line with the longstanding tradition of giving the Office of the Vice President (OVP) parliamentary courtesy, I move to terminate the budget [hearing],” Senior Deputy Majority Leader and Ilocos Norte Rep. Ferdinand Alexander A. Marcos said.

Twenty-one congressmen voted yes. Three from the minority voted against ending the budget hearing.

“Lawmakers will do their best not to antagonize a potential president like Carpio,” Arjan P. Aguirre, who teaches political science at the Ateneo De Manila University, said in a Facebook Messenger chat. “What we are seeing here is an effort to protect a major faction of the ruling coalition who is also seen as a potential contender for the presidency in 2028.”   

He said Congress would probably avoid scrutinizing intelligence funds because this could be viewed as “unwanted and excessive intrusion into the discretionary powers of the Executive.” “The Legislature is known for giving in or worse, serving the interest of the ruling government.”

Party-list Rep. Raoul Danniel A. Manuel later told a budget hearing on the Education department, which Ms. Duterte-Carpio heads, extending parliamentary courtesy to government officials stops Congress from exercising its power of the purse.

“Our tradition of extending parliamentary courtesy stops us in the legislative branch from doing our job,” he said. “There should be checks and balances.”

Presiding chairperson Davao de Oro Rep. Maria Carmen S. Zamora called for the vote after Mr. Marcos’ motion. She suspended the hearing before Deputy Minority Leader and Party-list Rep. France L. Castro could explain why she voted no.

“We highly condemn the committee on appropriations’ move to stop the Makabayan bloc from interrogating the Office of the Vice President on its confidential funds,” Ms. Castro, whose microphone was turned off during the hearing, told reporters.

She had sought to explain her objection against ending the budget hearing. Ms. Zamora instead asked her to submit her explanation to the committee.

The Office of the Vice President has proposed a budget of P2.39 billion for next year, P500 million of which is earmarked for confidential funds.

The Commission on Audit (CoA) has flagged the OVP for spending confidential funds worth P125 million last year.

“I thought the vice-president was brave enough to answer questions regarding confidential funds in 2022?” Mr. Manuel told reporters. “She was present at the hearing physically, yet she did not answer our questions.”

The congressman cited the lack of transparency on how the government spends the people’s money.

Ms. Castro said Ms. Carpio’s confidential funds last year could have built 50 classrooms, adding that these were not part of the 2022 General Appropriations Act.

In a statement, Ms. Duterte-Carpio said her office’s P125-million confidential funds last year were “planned and identified” as early as August.

“There was nothing irregular or unauthorized about its spending and the required liquidation and accomplishment reports have been submitted to the oversight agencies,” she said.

The appropriations body last year swiftly terminated deliberations on the vice-president’s 2023 budget.

Ms. Duterte-Carpio earlier this month defended the Department of Education’s (DepEd) P150-million confidential and intelligence funds in the national budget.

“Education is intertwined with national security,” she told reporters. “It’s important that we mold children who are patriotic, who will love and defend our country.”

The budget for confidential and intelligence funds next year increased by P120 million to P10.14 billion — P5.28 billion in intelligence and P4.86 billion in confidential funds.

Under the 2024 National Expenditure Program, the Office of the President was given P4.5 billion in intelligence funds, while the Department of Information and Communications Technology got confidential funds worth P300 million.

The Bureau of Customs will get P30.5 million, while the Department of Foreign Affairs was allotted P5 million in confidential funds.

The Department of Agriculture was allotted P50 million in confidential funds, the Defense department was given intelligence funds worth P60 million, and the Presidential Security Group was allocated P60 million.

The budget for state colleges and universities fell by 5.7% to P105.58 billion.

Budget Secretary Amenah F. Pangandaman has said the budget for education infrastructure has a capital outlay of P25 million for the lowest tier to P50 million for highest tier per state university.

While the 2024 budget has increases for defense and big-ticket infrastructure projects, increases for education are measly, Mr. Manuel earlier told the committee on appropriations. “It does not address learning loss and is riddled with forms of pork.”

1...3,2193,2203,221...13,063Page 3,220 of 13,063
© 2024 BusinessWorld Publishing.
All rights reserved.
Read our privacy guidelines
Facebook Instagram Linkedin Twitter Youtube