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Mar 23

Absolute veto

The President signed the national budget yesterday, and the Star and Inquirer both point out that the budget’s bloated the pork barrel despite almost daily examples of how its been misused (the Budget Secretary says the money will come from funds meant for the retirement pay of government workers). The President breezily noted that she’d vetoed many items in it:

The President said she had vetoed many items in the budget, but “they’re all very technical in nature, so one of this days I suppose Nonoy Andaya will explain what the vetoes are.”

Now any president has the power to veto legislation, including particular items in the budget, such as, say, the pork barrel. But that power isn’t absolute. A presidential veto always risks the possibility Congress will vote to override the veto, and perhaps that explains why the President decided to sit on the budget -it’s too late for the 13th Congress to override any veto now. Which is where Congress may have wanted things to be, too. But perhaps those who know the ins and outs of official budgeting can tell me, where then do the funds otherwise earmarked for items that were vetoed, go?

The President’s response to self-rating poverty surveys (which indicates fewer people feel hungry in Metro Manila these days) naturally makes it to the papers, too.

In the blogosphere, caffeine sparks points to a chart that suggests the Philippines isn’t on the investment map. It’s quite shocking, really.

In Inquirer Current, John Nery dissects the recent senatorial surveys (see the nifty graphic he put up here). For my entry today, I ended up trying to graph the survey data John presented:

Survey1-1
Survey2
Survey3
Survey4
Basically, the graph helps us see whose trajectory is on the upswing, and who is on a downturn. Just for fun, I tried to illustrate the spread (plus or minus three percent for the rankings of the top five):
Surveyspread
Which show’s Loren’s hefty lead, and how the rest of the top rankers are neck-and-neck. Each candidate’s color-coded, and the three lines for each color reflect he maximum, the reported score, and the possible minimum, for each.

In the punditocracy, Amando Doronila says the government has a diplomatic headache on its hands with the news on political killings.

In the blogosphere, Dissections interviews Dr. Martin Bautista, Ang Kapatiran senatorial candidate, of whom Now What, Cat? speaks highly. AlterNation 101 also speaks glowingly of Ang Kapatiran. Speaking of elections, The Purple Phoenix says cheating occurs in on line and text voting.

Patsada Karajaw lists 11 dodgy party list parties, and that doesn’t even include the one General Palparan wants to run under. More news on the party lists.

The Bunker Chronicles criticizes the President’s statement on hunger; An OFW Living in Hong Kong discusses why the pork barrel should be eliminated.

Marvelous diatribe against Lee Kwan Yew in Singapore Election Watch.

Very true observation on aging by Ronnel Lim.

And all along I thought I was the only one saying this of the movie “300” aside from the Iranians: but I’m a Baby says it all and my reactions to the movie were exactly the same! It’s a neoconservative propaganda film.

On another cultural note, Soho the Dog is irked over finding out the heirs of composer Sergei Rachmaninoff are poised to extend their copyright over the composer’s works by rearranging the pieces, thus guaranteeing their family close to two centuries of royalties. Stylus Magazine has two interesting articles: U2 vs. REM and Depeche Mode vs. The Cure.

61 comments

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  1. Jeg

    And all along I thought I was the only one saying this of the movie “300″ … It’s a neoconservative propaganda film.

    300 a neocon propaganda film? I saw 300 and I didnt feel the urge to invade neighboring non-democratic countries. If anything, 300 is a “rationalist’s” movie that couldve been written by Richard Dawkins: a movie about a people’s fight for freedom against the tyranny of religious fundamentalism, what with all those references to Xerxes being the King of Kings, and the God-King, and defiant Leonidas’s refusing to bow down to this god.

    Maybe we’re just reading too much into this.

  2. justice league

    Missed meals don’t mean hunger — Arroyo
    By Michael Lim Ubac, Volt Contreras
    Inquirer
    Last updated 06:14am (Mla time) 03/23/2007

    “I missed one meal during the last three months,” she quipped during Thursday’s roundtable discussion on the administration’s hunger-mitigating programs.-PGMA

    SWS posed this question in Filipino to 1,200 household heads nationwide: “Nitong nakaraang tatlong buwan, nangyari po ba kahit minsan na ang inyong pamilya ay nakaranas ng gutom at WALA KAYONG MAKAIN?”

    “The question on hunger — if you missed one meal during the last three months — even I missed one meal in the last three months, but..,” she said, leaving the sentence hanging as she refused to say if this was due to a diet or her hectic schedule.
    ————–

    I wonder if she actually said the Title text or that was just an interpretation of the writer.

    If she actually did; given the context then that would be a prime example of long speech, many mistakes!

  3. justice league

    Something I wrote about “300” in another forum.
    ————

    Iran is complaining about how they were depicted?

    If there is any group in the film that ought to be mad; it should be the Greeks.

    Their priests are not only hideous, their lascivious, their service can be bought for 30 pieces of gold, they don’t respect their own God, they give out lousy advice, and can again be bought for a larger number of pieces of gold!

    Their diplomats (Theron) can be lustful, corrupt, deceitful, traitorous etc….

    A want-to-be-soldier (Ephialtes) who wants to fight for glory would instead sell it if he can’t be allowed on the battlefield.

    The Greek soldier would mercilessly kill defenseless wounded enemy warriors and have no respect for their mortal remains. The Greeks were in loin clothes themselves where the Persian warriors were fully clothed from head to toe. (BTW, there is no categorical proof that the Greek village massacre was the handiwork of the Persians. All the assumption was based on the ramblings of a dying child and on footprints that aren’t even human)

    And what about the great Leonidas; he would readily defy the banner of peace again and again as he would kill or order the killing of persian messengers sent under a banner of truce!

    And the Iranians are complaining?

  4. The Ca t

    that map is 2004 yet.

  5. The Ca t

    that map is 2004 yet. it’s already 2007. o ito na naman si JM, sasabihin, pinagtatanggol ko.

    What I mean to say is do not tell us history, if you mean today. There are such words as CURRENT EVENTS.

  6. justice league

    Manolo,

    I think you terribly misread Bunker Chronicles’ post.

  7. justice league

    Manolo,

    Regarding your query on the budget, we also have to think that we are still experiencing a deficit annually.

    I think it’s also worth finding out if the whole budget has to be sourced when there are budget items that are vetoed.

  8. Bencard

    JL, I think Manolo thinks (erroneously and simplistically) that whenever an item in a budget is vetoed, available funds are thereby created automatically. How naive (if not intellectually dishonest). Of course, I think he is implying that the imagined funds will be used in the election. See how they create fact out of pure fantasy?

  9. justice league

    Bencard,

    Well I wouldn’t go that far. There’s too little information for me to discern malice or downright sarcasm.

    I think it’s a good question though and I’ll give Manolo the benefit of the doubt that he just wants to know that particular item so it can be shared with us all.

  10. Bencard

    JL, its prudent of you to do that but I have my own reasons for going “that far”. I just hope I’m wrong.

  11. bogchimash

    Not so fast Bencard. Manolo may have a point. His question is beyond GMA (who, anyway, has only a couple of years left). The succeeding presidents might abuse what seems to be a loophole in the system.

    If the vetoed items pertained to offices in the executive and were based on a valid form of presidential impounding power, it can be argued that the funds constitute savings. As such, under the Constitution, the president may realign it in any way he/she wishes within the department. Veto, then becomes a novel form of raising funds for the president’s pork barrel.

  12. Bencard

    o.k. bogchimash, thanks.

  13. The Ca t

    There are no funds that are made available when some budget items are vetoed. It just reduces the budget deficit.

    For example,

    Budget Expenditures
    1. 1,000
    2. 3,000
    3. 4,000

    Total 8,000

    Expected Revenues

    1. 300
    2. 500
    3. 3000

    Total 3,800

    The difference is the deficit.

    Here comes how this budget deficit is going to be funded:

    1. Increase in taxes
    2. Borrow from local banks by floating bonds and other debt instruments
    3. Borrow from international banks and other financial institutions by floating bonds , etc or securing long term loans.

    The moment, the president vetoes some items, the total budgeted expenses are reduced. Say example by 1,000

    Therefore the budget deficit is only 3,200.

    You are looking at the budget items which are subject to audit. There are what you call discretionary funds. You poor little souls. Bakit ba pinagkakamatayan ang Presidente na ang suweldo ay less than half a million a year only. Because my dears, the DF are billions of pesoses. I am open for education here.

    The realignment and transfer from one budget item to another is best done when it is already approved. It takes two to tango.

  14. The Ca t

    Regarding your query on the budget, we also have to think that we are still experiencing a deficit annually.

    Because that is our budgeting system as against zero-based budgeting. If it is not clear to you the difference, ask me.
    As of now, I am too stressed to lecture on budgeting.

  15. rego

    Ca T,

    I wanted to learn more about the budget deficit. Maybe you can make an entry about it in your blog when you got the chance…

  16. rego

    Manolo, I enjoyed so much the U2,REM, Depeche Mode and Cure link. I a very big fan of these 4 bands, well actually the 80’s music. Thank you so much!!!!!!!!!!

  17. justice league

    Ca T,

    THanks for the info and basically my issue was answered in that your implication is that the budget doesn’t have to be sourced in its entirety if part of it has been vetoed.

    I have a fair assessment of zero bugeting already; that it starts from scratch which is different from our kind of budgeting wherein you already have to carry over the budget last year for the payroll of employees or something. Thanks for the offer but if I got that part wrong; please do clarify.

    But what about parts of the budget that were not vetoed yet were not given?

    A representative Cagas was featured in a show (Correspondents) the other day complaining about his “pork” which has not been released by the budget department. He claims that this has gone on for years. The show also stated that the “party list” representatives have also not been getting their share also.

    Maybe there is a replay on that on ANC today.

    What happens to the budget allocations in those cases and corresponding budget deficits?

    Just in case, the government got by on an actual “smaller” budget the previous year if the budget wasn’t totally sourced and spent; why is the budget rising astronomically beyond the justifiable increase in salaries?

    As far as I remember, Andaya was previously in favor of line item budgeting. What happens to that kind of budget (if that was actually pursued) in light of realignment of funds?

    And when you write of realignment and transfer of funds; that reads like “juggling”. I read somewhere that the General Apropriations Act incorporate clauses wherein Congress practically assured themselves that their kind of juggling would be legal. Is there a corresponding clause for the executive department?

    PLease feel free to answer as those are not rhetorical question.

  18. justice league

    Ca T,

    Clarification:

    There should have been no (,) in the paragraph of “Just in case, the government got by on …..”

    It should read:

    Just in case the government got by on an actual “smaller” budget the previous year if the budget wasn’t totally sourced and spent; why is the budget rising astronomically beyond the justifiable increase in salaries?

  19. The Ca t

    I have a fair assessment of zero bugeting already; that it starts from scratch which is different from our kind of budgeting wherein you already have to carry over the budget last year for the payroll of employees or something. Thanks for the offer but if I got that part wrong; please do clarify.

    The budget comes from the different department heads of the government agencies who know nothing how to make those estimates.

    So they are furnished a copy of the budget in the previous
    year which they can revise by increasing the items by certain percentages in anticipation for price and wage increases as well as number of personnel. Unlike in the private government when they can easily create a position, in the government, they can only hire if there is provision of position and corresponding salary in the plantilla under the personnel items.

    The budget then is forwarded to the finance or accounting department of the agencies who in turn forwarded these to the Department of Finance and Budget Management.

  20. The Ca t

    And when you write of realignment and transfer of funds; that reads like “juggling”. I read somewhere that the General Apropriations Act incorporate clauses wherein Congress practically assured themselves that their kind of juggling would be legal. Is there a corresponding clause for the executive department?

    You are talking about appropriations.
    From the budget of the department, allotment of appropriations are made before spending.

    There are appropriations which are not actually expensed so that the department head may be able to use them if they fall under the same budget/same department and same goal.

    The practise is, government would not give you the entire budget but only those which were appropriated.

    So kung ang budget mo a 2m and you spent only 1.2, you receive only 1.2.

    kaya ng mga department head, before the end of the fiscal year, ginagastos na nila lahat.

    For example sa Dept. of Health, when the fiscal year is almost over and there are still surpluses unappropriated, diyan na pumapasok ang mga purchases ng mga items na hindi
    naman kailangan, magastos lang ang pera.

    What was illegal was the case of some government officials to put the “surplus” in investments where they are not atuhorized to do. Sa Department of Ed yata nangyari several years ago.

    What is legal may be an appropriation and transfer from one contingency fund to another.

    Syempre there are realignments which can be justified.

    As I have said, the president is given a discretionary fund which is not subject to limitations of appropriations . The reason for this is for contingencies like calamities.

    It’s not only the president but also other major government officials. The only difference is the amount.

  21. The Ca t

    What happens to the budget allocations in those cases and corresponding budget deficits?

    As I have said even if you have a budget, you cannot just spend it without the appropriations allotment.

    Kahit ginastos mo na pag hindi convinced ang Budget Management na kailangan yong appropriations na yon, mahirap makuha ang pera.

  22. The Ca t

    budget rising astronomically beyond the justifiable increase in salaries?

    because the total budget for the country includes the payment of intrests of government borrowings.

    So no one appreciated the news about payments of the principal loans before their maturity dates. To one who can understand its impact on the budget, this is a good indication of funds management. Interest payments would be eliminated.

  23. The Ca t

    so reading the news and legislations made by the senatoriables, I can appreciate Ralph Recto who is the only guy who know what he’s doing and know how the government operates budget-wise.

    Yong iba ingay lang at shallow talks.

    It is not that I am campaigning for him pero kung bibigyan mo ako ng senador at congressmen na ang accomplishments lang ay mag-approve ng nationalization ng mga schools at magrecomenda ng appropriations para doon (sabi nga ng Geico ad, even a caveman can do it) o kaya yong maingay lang na gustong palaging nakaharap sa camera o kaya walang ibang employment opportunities kung hindi ang sumunod sa tapak ng kaniyang tatay o kapatid o lola o lolo, spare me.

  24. The Ca t

    What happens to the budget allocations in those cases and corresponding budget deficits?

    We talk about budget deficit at the national level. For agencies, we talk about surpluses and budgeted, expensed and authorized, appropriated and unappropriated items.

    In the agency or department levels, they have to operate within the budget.

  25. david

    ‘300’ the movie is just as much a liberal propaganda film as it is a neocon propaganda film, and a lot of people actually recognize it’s multiple interpretations already.

    a large empire led by a person who believes he has the mandate of God invading a small country being defended by a small, hardy, group of people defending their right to live the way they want? It justifies the insurgents in Iraq as much as it justifies Bush.

    The movie really has something for everybody, almost as if it is a motion picture Rorscasch test.

  26. justice league

    Ca T,

    Thanks for the initial info.

    So basically you’re saying is that the departments have actual money within them before appropriations are actually released.

    You stated that even if the department has expended the money but the Budget department is not convinced of the soundness; the department will have a hard time getting that appropriations and also on the example of the expenditure of 1.2 million as against a budget of 2 million. So they have money with them already.

    But how do they have money initially when all savings at the end of the year are supposed to be remitted back to the national treasury or something?

    And how about the case of the unreleased pork barrel funds?

    Regarding your statement of payment of loans before their maturity; former Pres. Ramos did something similar when the Peso appreciated against the dollar for a time during his term.

  27. The Ca t

    But how do they have money initially when all savings at the end of the year are supposed to be remitted back to the national treasury or something?

    It is not remitted back. We are operating in the imprest system. Kahit ang budget mo at 5 million supposed to be and you spent only 4.5 million, ang reimbursement mo ay 4.5 million to make it 5 million.

    you are confusing appropriations allotted and budget allocated with physical transfer of money.

    Hindi yan, ito ang budget, ito ang pera no.

    If you have one petty cash officer in your company, ask how the imprest system operates.

    Kailangan may appropriations na ginawa, may mga binayaran na ginawa na ma mga documentations saka nila irerelease yong pera para doon.

    Siyempre may nakaallocate na diyan, it is just a matter of release. Pero may mga vouchers na titingnan, may mga papel attached for supporting docs.

    Walang problema pag suweldo, kasi fixed na yon. Ang problema pag may increase. Kahit may increase kung walang budget allocations para sa increase, ang agency head ay dapat maghanap ng kanilang source. Dito nagkakaroon ng realignment kasi puwedeng magrequest sila na gamitin ang appropriation para sa isang item na hindi naman magagamit in the fiscal year.

  28. DJB

    David–300 was definitely a neoconservative flick. I loved it! Only paleoliberals would interpret it as you do, equating America and the West to the Global Jihad of Xerxes (Osama bin Laden) and his genetically modified Asiatic minions (Ahmadinejad, Saddam, the Taliban). I think the stunted Greek humpback who sells his soul to Xerxes could easily be Jacques Chirac, who is now facing corruption charges in France, as well as every self-loathing Westerner who thinks it is OUR fault that there is now a global terrorist network threatening all of civilization with a nuclear holocaust. The traitor in the Spartan council could be a jab at the Oil for Palaces Programme of Saddam Hussein which of course got little criticism from local paleolibs who wring their wrists over hunger in the Philippines whilst wallowing in MacDonalds hamburgers.

  29. hvrds

    For the uninformed. There are two appropriations law every year for the budget process.

    First you have the permanent Automatic Appropriations Act for debt payments. The other is the General Appropriations Act.

    For the coming year the following is a simple classification for the projected budget expenditures.

    Salaries,pension contributions
    and pension payments……………. Php335.3B
    Debt service (interest only)…….. 303. B
    LGU Allotments…………………. 183.3B
    Supplies, Maintenance & Capital
    Expenditures (Infrastructure)…… 303.8B*
    Total Php1126.T

    Please note that this is for all branches of government, departments and agencies.

    *This amount also covers all discretionary spending primarily by the executive branch. This is where the source of graft and corruption largely stems from.

    The executive branch minus the budgets for the legislative and judicial branch has the power of disbursment over almost 60-70% of the budget. Debt Service is sacrosanct. This is where her political power comes from. “Power of the Purse.”

    As for principal repayments that is under the Automatic Appropriations Act and most of principal payments are paid out of revenues and/or mostly renewed borrowings. The Treasury knows the due dates of domestic and foregin principal payments and can borrow early to save on interest payments and/or forex gains. Total principal payments for 2007 amount close to Php 300 billion. If the government would wish not to borrow this amount again a little over half of the budget would go to debt and interest payments.

    Capital expenditures account for around 12-13% of the total budget. (This is the source of the pork barrel)

    Projected revenues for 2007 Php 1 Trilion +
    Projected deficit for 2007 Php 63 Billion

    Source of figures (Inquirer)except data for Principal payments of debt. This came from Senator Recto

    The treasury does not revel this openly and directly. last year according to the NSCB – Principal and interest payments amounted to Php 780 Billion. Over 80% of the budget. For that the Filipino people should thank the past governments together with the present one.

    What is almost guaranteed is the fact that the debt will have to surely go up for the government to fund its projected infrastructure projects. Price inflation has eaten away most of the budget increase for the last three years.

  30. hvrds

    For the uninformed. There are two appropriations law every year for the budget process.

    First you have the permanent Automatic Appropriations Act for debt payments. The other is the General Appropriations Act.

    For the coming year the following is a simple classification for the projected budget expenditures.
    General Appropriations Act

    Salaries,pension contributions
    and pension payments……………. Php335.3B
    Debt service (interest only)…….. 303. B
    LGU Allotments…………………. 183.9B
    Supplies, Maintenance & Capital
    Expenditures (Infrastructure)…… 303.8B*
    Total Php1126.T

    Automatic Appropriations Act
    Principal Payments close to Php 300B

    Please note that this is for all branches of government, departments and agencies.

    *This amount also covers all discretionary spending primarily by the executive branch. This is where the source of graft and corruption largely stems from.

    The executive branch minus the budgets for the legislative and judicial branch has the power of disbursment over almost 60-70% of the budget. Debt Service is sacrosanct. This is where her political power comes from. “Power of the Purse.”

    As for principal repayments that is under the Automatic Appropriations Act and most of principal payments are paid out of revenues and/or mostly renewed borrowings. The Treasury knows the due dates of domestic and foregin principal payments and can borrow early to save on interest payments and/or forex gains. Total principal payments for 2007 amount close to Php 300 billion. If the government would wish not to borrow this amount again a little over half of the budget would go to debt and interest payments.

    Capital expenditures account for around 12-13% of the total budget. (This is the source of the pork barrel)

    Projected revenues for 2007 Php 1 Trilion +
    Projected deficit for 2007 Php 63 Billion

    Source of figures (Inquirer)except data for Principal payments of debt. This came from Senator Recto

    The treasury does not revel this openly and directly. last year according to the NSCB – Principal and interest payments amounted to Php 780 Billion. Over 80% of the budget. For that the Filipino people should thank the past governments together with the present one.

    What is almost guaranteed is the fact that the debt will have to surely go up for the government to fund its projected infrastructure projects. Price inflation has eaten away most of the budget increase for the last three years.

  31. vic

    And another source of funding of budget deficit after all the other sources can not meet the actual deficit; printing of currencies and you’re sometimes wondering why inflation is a little too high.

  32. cvj

    DJB, if the Spartans were neocons, they would have brought keyboards with them instead of swords and spears. Having seen you in TV, i know that you’d look decent enough in that loin cloth uniform, but i doubt if we could say the same of your comrades Cheney and company.

  33. cvj

    Further to hvrds’ informative explanation above, here is a visual comparing the domestic borrowings of Arroyo with her predecessors.

  34. manuelbuencamino

    DJB,

    Chickenhawks are Spartans?

    Well, I guess that works if by chickenhawks you meant the other definition – “old men preying on innocent boys”.

  35. justice league

    Ca T, HVRDS,

    Your info is appreciated.

    Regarding the PDAF; Malacañang’s proposed PDAF allocation was only P6.2 billion but Congress wanted 11 Billion instead. The bulk of the PDAF of the supposed difference of 5 Billion Pesos, about P3.9 billion, would be taken from the P18.7-billion benefits and terminal leave pay for some 7,000 government retirees this year.

    Is the 3.9 Billion peso removal from the benefits and terminal leave pay of retired/ing employees an actual decrease from their previous budget?

    Why is this 3.9 billion Pesos being removed anyway? Is the government anticipating fewer retired/ing employees?

    The budget has been re-enacted for a number of years. Yet we have members of Congress complaining that their PDAF were not given. A number of Senate members also have intimated that they did not use up or used their PDAF.

    Was the entire budget for the PDAF sourced even though they were not all given to the respective members of Congress?

  36. manuelbuencamino

    “Regarding the PDAF; Malacañang’s proposed PDAF allocation was only P6.2 billion but Congress wanted 11 Billion instead.”

    Don’t fall for that “good cop-bad cop routine”. It’s an election year for crissakes.

    The only thing that matters is there is an extra 4.8 billion to spend for the campaign, It doesn’t really matter who’s responsible because they’re all part of the same gang anyway.

  37. justice league

    MB,

    This is not necessarily about whether this is a good cop-bad cop scenario.

    I don’t think the pork barrel was vetoed.

    I did refer to the 3.9 Billion Pesos to be taken from the benefits and terminal leave pay. I specifically stated retired and retiring employees because I don’t know the extent of it’s effect.

    If this will actually reduce the amount already received by retired employees (unless the government expects many retirees to die already, not many will retire, etc…); then I’m not sure whether this “diversion” is legal or not. (It’s already March; surely there must have been retirees from January till now. Will these people be covered?)

    If this is of doubtful legality, the affected retired employees might very well question this budget before the SC?

    And should this move actually be of doubtful legality, I’d be wondering why the government is exposing itself again to a showdown before the SC.

  38. The Ca t

    The only thing that matters is there is an extra 4.8 billion to spend for the campaign.

    As I have been advising you, don’t open your mouth when you cannot understand the issue being discussed.

    You will just look like a fool.

  39. The Ca t

    Further to hvrds’ informative explanation above, here is a visual comparing the domestic borrowings of Arroyo with her predecessors.

    borrowings to finance the deficit is an option.

    When value of peso is going down, it is best to resort to domestic borrowings since the payments will also be in pesos.

    Lack of borrowings from the government does not also reflect well for the administration.

    One reason is that credit rating may be low. The lenders may just as well put their money somewhere else.

    There is no enough money.

    I read during Erap’s time that there were Japan loans and aids that were revoked because there were no worthwhile projects that were going to be financed.

  40. DJB

    Is it poverty or graft and corruption that causes hunger? Or is it alcohol drugs gambling prostitution?

  41. The Ca t

    Is the 3.9 Billion peso removal from the benefits and terminal leave pay of retired/ing employees an actual decrease from their previous budget?

    Why is this 3.9 billion Pesos being removed anyway? Is the government anticipating fewer retired/ing employees?

    There is no decrease in the total budget. There is merely reallocation.

    Example: in a household there are two siblings
    receiving allowances from the parents.

    Person 1- 1,000 for his regular expenses
    Person 2- 750 for his intended projects.

    Parents advised person 2 that his budget for projects depends on what he presents. If there is really a need for
    its financing and they have no cash for it, they are going to ask person 1 to share from its 1,000.

    Parents asked person 1 to give 250 to person 2.

    Total allowance for the two people, did not change. it is still 1750.

    person one has still 1,000 but in its record, a part of that was allocated for PDAF.

    Person 2 has still a budget of 750 but part of it comes from person 2.

    So when person one is audited:
    This is what will appear in his spreadsheet for it actual cash outflow assuming that it did not expense the total budget.

    Salaries etc.etc. 650
    Transfer allocation 200
    Actual 850
    Only 850 will be reimbursed to make it a total of 1,000 again.

    For person 2 this will what appear in the actual cash outflow.

    Projects 500

    The project’s budget is still 750 but the actual expenditure is 500. When I say actual, those which were authorized, approved and paid.

    The corruption is in the projects funded. This is where the overpricing of contracts and supplies is done.

  42. The Ca t

    Why is this 3.9 billion Pesos being removed anyway? Is the government anticipating fewer retired/ing employees?

    The budget is just an estimate. It could have included those people who are entitled to early retirement but would not avail of it like those who are in 15 to 20 years of service but are not yet in their retirement age.

  43. justice league

    Ca T,

    Yes I understand the reallocation in the Total Budget.

    I guess we’ll have to wait if the amount paid to the concerned individuals will be affected and see if they’ll cry out. I guess their the ones who will have standing in court anyway.

    But based on your example of a total 1750 budget;
    How much is Person 1 allowed to spend totally for regular expenses if it was to be spent all if all expenditures were validated?
    How much is Person 2 allowed to spend totally for projects if it was to be spent all if all expenditures were validated?

    If person 2 spent only 500; why must 200/250 come from person 1 since person 2’s expenditures is way below 750?

  44. The Ca t

    JL,
    Ang salaries and wages ay regular expenses. Ang sa pork barrel ay hindi regular expenses. Ibig sabihin niyan ang department ay hindi puwedeng mag-operate kung wala ang budget nila na nakalaan para sa kanilang operation. Ang mga congressman at senator ay puwedeng magoperate ng wala ang pork barrel. Hindi kasama sa pork barrel ang budget nila para sa operation and maintenance ng office nila, kagaya ng gasolina ng kanilang magagarang kotseng courtesy ng mga taxpayers, suweldo sa mga staff nila na dapat ay nagtatrabaho para makatapos nila ang mga bills at resolutions. Suweldo ng mga bodyguards nila. Don’t you just appreciate Joker na simple ang buhay, walang maraming bodyguard kagaya ng ibang congressmen na pati mga kabit at anaka sa maraming kabit ay may bodyguards, courtesy of who else, TAXPAYERS.

    Ang pork barrel ay para sa mga projects nila. Kaya yong ibang hindi nag-aavail ng pork barrel ay hindi ibig sabihin, hero, ibig sabihin wala silang project para sa kanilang communities.

    Ang mga businessmen ay willing magbigay ng pera sa mga kandidato kung tatrabahuhin mananalong kandidato na magkaroon ng cemented roads at better means of transportation sa kanilang lugar. Dahil ito ay magiging maganda sa negosyo.

    Ang mga Ayala, Zobel pag nagdedevelop ng kanilang properties, gumagastos sila sa infrastructure na nakapaligid sa kanilang properties.

    Ang mga shrewd businessmen, kasya gumastos sila galing sa bulsa nila, ibibigay nila ito sa kanilang manok para sa Kongreso para isama sa projects niya na ang pera ay manggagaling sa pork barrel.

    O kaya mismo ang businessman ang tatakbo sa Kongreso at Senado para alaga ang kanilang komunidad sa mga infratructure projects. Do I hear the name Legarda, Villar, Magsaysay. etc?

    Eh bakit ba aga-aga naglelecture ako? Libre pa. Hindi per ora.

  45. The Ca t

    But based on your example of a total 1750 budget;
    How much is Person 1 allowed to spend totally for regular expenses if it was to be spent all if all expenditures were validated?

    Person 1 is allowed whatever the budget is. Pero pag gumawa ka ng budget, para siguradong hindi ka sosobra, maglalagay ka ng allowance.

    Parang pag tinanong ka ng nanay mo noong istudyante ka pa kung magkano ang kailangan mo para makarating sa isang lugar, hihingi ka ng pasobra. Kaya may mga provision for contingencies. Contingencies, magagastos pag nangyari.

    Parang pano pag naflatan ako sa daan. So hingi ka ng budget para masolve mo ang problemang yon. Hindi ka naman naflatan, so hindi mo nagastos budget para doon.

    Sa salaries and wages items, ang mga department managers ay hinihingan ng projected number of personnel who are going to be hired or are going to replace retireables.

    Sa ma ihahire, kung wala pang plantilla, gagawa ng position sa plantillang yon kagaya halimbawa ng limang position para sa Rsearcher 1 or Senior Reseacher 2 etc. na may kasamang budget para sa sweldo.

    After the fiscal year, kung ang nahire lang ay dalawa para sa Researcher 1 at wala sa Senior Researcher, ang actual salaries paid off ay hindi lahat yong sa budget.

    Tapos meron pa silang mga budget para sa mga casual employees. Dito nagkakaroon ng mga multo. Ghost.

    Kung wala silang makuhang multo, o di hindi nila nagastos ang kanilang budget.

  46. The Ca t

    How much is Person 2 allowed to spend totally for projects if it was to be spent all if all expenditures were validated?

    Ang sweldo ay kailangang bayaran. Ang budget sa pork barrel ay budget lang. Kailangan pang approbahan ang projects para ito maisagawa at makareceive ng funding.

    Ang ibig sabihin ng budget, hey hanggang diyan ka lang. Huwag kang sosobra para sa mga capital expenditure oriented projects na kagaya ng pork barrel.

    Ano kamo ang kapanipaniwalang projects? Siguro naman hindi kailangan ng constituencies ng mga taong Kongreso ang kilometrikong daan na sementado kung meron na ito sa probinsiya.

    Pero pag nauwi sa probinsiya at nakita mo na kahit ang kaliit-liitang daan sa baryo na isang bahay lang ang nakatayo, kailangan pa bang sabihin ko saiyo kung sino ang may kasalanan. Hmmm

    Siguro naman pag may nakita kang mga waiting shade na tumayo at bumagsak at mga daan na aspalto lang na kanininipis para marepair ulit, alam mo na kung sino ang may kasalanan.

  47. The Ca t

    If person 2 spent only 500; why must 200/250 come from person 1 since person 2’s expenditures is way below 750?

    Ignore the amount, that is just an example (blood pressure reading 160/80).

    Para maintindihan mo,example sa bahay yong regular expenses ay para sa budget mo sa groceries, sa sweldo ng katulong, sa bayad ng utility bill. Lahat ng congressmen ay mayroon ding budget para dito para sa kanilang “bahay”

    Ang pork barrel ay para pagandahin ang bahay. Okay.

    Kung ang suweldo mo ay sapat lang para sa mga regular expenses mo at ang mga balak mong pagpapaganda ng bahay ay maaring makuha pag may nautang ka, hindi ba uunahin mo muna yong para sa pagkain. At ihihintay mo yong pagpapaganda ng bahay pag dumating yong utang na hinihintay mo.

  48. justice league

    Ca T,

    Yes, I do appreciate the simple living of Joker.

    Ok so I’ll disregard the amounts of the examples.

    I think I’ll understand better if anyone can show the actual items of the Budget.

    Does the present budget say either:

    PDAF = 11 Billion P
    “Retirees Fund” = 14.8 Billion P

    or

    PDAF = 11 Billion P
    “Retirees Fund” = 18.7 Billion P

    or something else?

  49. manuelbuencamino

    gagamitin lang yan sa kampanya.

  50. manuelbuencamino

    There are no firewalls in the budget to prevent campaign expenses from being disguised by creative book keeping.

    The PDAF is one big kitty litter for Gloria and her cohorts.

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