PRESIDENT Duterte has finally signed the long-delayed 2019 budget but vetoed P95.3 billion for “not being part of the President’s priority projects,” Executive Secretary Salvador Medialdea confirmed on Monday night.
“The President, among others, vetoed P95.3-billion items of appropriations in the details of DPWH [Department of Public Works and Highways] Programs/Projects, which are not within the programmed priorities,” Medialdea said in a text message shared to reporters. Asked if the President finds the P95.3 billion unconstitutional, Medialdea replied: “No. Not part of priority projects.”
The President signing the 2019 budget means that the government can soon stop operating under the 2018 reenacted budget, amid warnings by economists that such could impact growth prospects this year.
The 2019 budget was delayed due to a number of issues, including the alleged changes by the House leadership even after both chambers had ratified the bicameral conference committee report, the alleged P75-billion insertion to the budget of the DPWH and the controversial shift of the government from obligation-based to cash-based budgeting system.
Prior to the signing, the President earlier threatened to veto the entire P3.7-trillion budget if proven to be illegal, prompting lawmakers and even Vice President Leni Robredo to urge the President to do line-item veto instead.
To end the budget impasse between the Senate and House, the President acted as mediator but to no avail.
On the last week of March, Senate President Vicente C. Sotto III finally signed the budget but “with reservations,” adding that he was leaving it up to Malacañang to “consider disapproving the unconstitutional realignments, pursuant to his constitutional power to veto” particular items on the budget bill.
Meanwhile, the House has since stood firm that the budget
itemization that it implemented was within the parameters of the bicameral
committee report
ratified by each chamber.
The budget impasse was also among the reasons which forced the government to revise downward its growth targets this year and in 2020.
During its 175th meeting, the Development Budget Coordination Committee scaled down the GDP growth target for the year to 6 to 7 percent, from the previous 7 to 8 percent. Economic growth next year is projected to reach 6.5 to 7.5 percent. The DBCC expects to hit the original growth target of 7 to 8 percent in 2021 and 2022.
The National Economic and Development Authority (Neda) earlier said that a reenacted budget will delay new and ongoing infrastructure projects, as well as the implementation of public services such as Unconditional Cash Transfer and Pantawid Pasada Program.
Apart from the damage to the economy, the Neda also said the reenacted budget will cost as many as 180,000 to 240,000 more jobs, and fail to lift 400,000 to 550,000 more Filipinos out of poverty this year.