National budget in the hands of just two people?

VICE President Sara Duterte’s recent interview unveiled a pivotal issue in the country’s budgetary process, spotlighting how the influence of just two legislators — Rep. Zaldy Co and House Speaker Martin Romualdez — reportedly shapes key budget decisions. Citing specific examples such as the reallocation of funds for classroom construction and repairs, Duterte asserted that changes were made without the Department of Education’s input, despite the agency’s direct role in these projects.

This disclosure raises concern about transparency and accountability, suggesting a potential imbalance in managing the national budget. Furthermore, it invites scrutiny over whether this concentration of decision-making power undermines checks and balances within the government and the democratic process as a whole. The allegations invite debate over how such dynamics could affect fairness in resource allocation and the broader governance structure, with potential long-term consequences for the country’s political and economic landscape.

Revelations

In claiming how the national budget was being controlled by only two individuals alone, Duterte cited an example from the Department of Education’s (DepEd) 2023 budget. According to her, the original allocation for classroom construction under the National Expenditure Program (NEP) was P5 billion. However, when the General Appropriations Act (GAA) was released, the amount had increased to P15 billion. She claimed that P10 billion of this budget increase was not controlled by the DepEd but by Co and Romualdez. Duterte used this example to support her assertion that these two lawmakers had substantial influence over budget allocations beyond what was initially proposed by government departments.

The VP said that she did not need a corroborative witness for her disclosures as this can be scrutinized by interested Filipinos through existing documents. She said the NEP was P5 billion, and the approved budget came out as P15 billion: “So, you understand. Why do we still need a budget hearing for the OVP (Office of the Vice President)?”

Duterte said only two people have the final say on the national budget — Co and Romualdez. She cited another example concerning the approved budget of DepEd by the Office of the President for 2024 for classroom construction, which was P19 billion. She said that when the House version of the appropriations bill came out, it became P24 billion. So, the approved P19 billion, upon reaching the House, became P24 billion. In that P24 billion, if you look at the documents, they took P5 billion from the classroom repair budget and added it to the P19 billion, making it P24 billion. So, what was left to repair poor classrooms was only P1 billion. The VP pointed out that these can all be checked in the documents. In addition, Duterte also claimed that for 2024, the House attached the list showing where the P17 billion worth of classroom construction will be done.

According to Duterte, nothing changed even though some senators tried to help address the classroom backlog in accordance with DepEd assessment and rules at the bicameral conference committee (bicam). But the list of P17 billion that the House made is still attached because the ones in control were Co and Romualdez, she said.

To recall, during the Basic Education hearing in May 2024 at the House, Education Undersecretary Epimaco Densing said that concerning the P17 billion in Annex A of the GAA (General Appropriations Act), the DepEd was not privy to how the school sites were chosen and how the list was generated.

Hence, the VP asked why there was a need for a question-and-answer session (referring to the OVP budget hearing in the House) when it was all about just attacking her. Anyway, only two people have control over the budget.

Indeed, such a statement reflects Duterte’s frustration, suggesting that budget deliberations are futile because she believes that ultimate control over budget decisions rests with only two individuals who wield a disproportionate influence over the national budget.

Insights and implications

With these revelations from the second-highest elected official, Filipinos need to reflect on the critical implications of the VP’s exposé.

The revelations in the VP’s recent interview highlight her criticism of the budget process and the discrepancy in the budget allocations allegedly controlled by two people, Co and Romualdez. Duterte raises questions about the transparency behind budget allocations. It reflects her dissatisfaction with what she perceives as the manipulation of budget processes by just two individuals. In many ways, this is a question of public trust in the accountability and transparency of government financial management and determining the national budget and allocations.

What happened to the DepEd budget for 2023 and 2024, especially with respect to classroom repairs and construction, implies that budget manipulations occurred at the expense of the education sector’s needs. Duterte stressed that these manipulations are in official documents, urging scrutiny and highlighting issues of transparency and accountability within the legislative process.

The VP’s remarks imply concerns about two individuals’ manipulation of budgetary allocations and decisions, which could have long-term implications for governance, public trust and perception, and the allocation of resources in critical areas such as education. Duterte is raising concerns about how certain budget allocations have been manipulated in the legislative process. Her comments reflect dissatisfaction and frustration with how budget priorities are being set and controlled, and she urged the public to scrutinize the documents so Filipinos can understand and grasp this sad reality.

Conclusion

In retrospect, Sara Duterte’s frustration could stem from her belief that budget allocations are influenced by politics rather than being based on objective needs assessments and criteria. Her claim that only two individuals — Co and Romualdez — control the national budget raises significant concerns about democratic processes, transparency and accountability. If two individuals primarily control the budget, it undermines the system of checks and balances. The concentration of power in the hands of a few undermines the collective decision-making process, which should ideally represent the broader interests of the public. This also could open the door to corruption or misallocation of resources and implies the politicization of the budget process and allocation, rewarding political allies or punishing opponents. If just two individuals are controlling the budget, it suggests the diminishing role of the legislative branch in representing the people’s will in fiscal matters.

As for broader governance implications, if two individuals wield excessive control over the national budget, it not only weakens institutional checks and balances, which are essential for a functioning democracy, it also undermines the institutional integrity of the budget process and weakens the democratic system.

Suppose Duterte’s claims are accurate and true. In that case, the concentration of budget control in the hands of two individuals raises serious concerns about democratic governance, transparency and the equitable distribution of resources. It suggests that political considerations might be driving key budget decisions, which could lead to inefficiencies, political favoritism and a weakening of democratic institutions. Ultimately, this could hinder the government’s ability to address national issues effectively and fairly.

Source: The Manila Times
https://www.manilatimes.net/2024/09/14/opinion/columns/national-budget-in-the-hands-of-just-two-people/1971328

Prof. Anna Rosario Malindog-Uy

Prof. Anna Rosario Malindog-Uy is a Ph.D. Candidate at the Institute of South-South Cooperation and Development (ISSCAD), Peking University, Beijing, China. Currently, she is a Senior Researcher of the South China Sea Probing Initiative (SCSPI) and a Senior Research Fellow of the Global Governance Institution (GGI). Prof. Anna Uy taught Political Science, International Relations, Development Studies, European Studies, Southeast Asia, and China Studies. She is a researcher-writer, academic, and consultant on a wide array of issues. She has worked as a consultant with the Asian Development Bank (ADB) and other local and international NGOs.