Transcript of the Ambush Interview with Senate President Franklin M. Drilon

Q: On the budget hearing, on the agriculture

SPFMD: Sa akin po isa talaga sa mga dapat tingnan ng Pangulo ay kung sino ba talaga ang dapat na agricultural secretary. Ang nakita nga natin, bumababa ang agricultural sector, at ang paglago ng agricultural sector ay less than 1% because of the calamities. I think we need to have a point man - kung sino ba talaga. Kahit sa budget, magkaiba - they have split the agencies into agricultural departments. I strongly suggest that this should be reviewed.

Q: Ano po ba yung effect nitong split? Dapat bang silang bumilis?

SPMFD: I do not know. What I can say is that the agricultural sector growth rate in the first quarter of this year is less than 1%. We must remember that 11% of our economy is contributed by the agricultural sector, and 1/3% of our labor force is in the rural sector, and 2/3 of our poorest families belong to the agriculture sector. So malaki talaga ang naibabahagi ng agrikultura sa ating kabuhayan, at sa ating bansa. The success of our agricultural sector will really alleviate our poverty incidence. Maraming mahihirap sa kanayunan, at kapag nagimprove ang agrikultura ay marami ang matutulungan.

Q: Iincrease po ba ng Senate ang budget ng DA, since mababa nga ang agricultural growth?

SPMFD: We are not yet at that point.

Q: May time pa ba for the economic amendments to the Constitution?

SPFMD: I think we still have time. But that is speculation on my part. Our agreement with Speaker Belmonte is that once they have passed their proposed amendment in the House, we will work on it in the Senate, insofar as the phrase, "unless otherwise provided by law," on the economic provisions of the Constitution.

Q: How would you address concerns that political amendments to the Constitution are also being pushed?

SPFMD: I think we have proposed early on that the process should follow legislation except that there is a qualified majority. There are built-in checks and balances. For example, presently you can't be assured that once a bill is passed in the House, it will be passed in the Senate. That is precisely the system that we have. There are checks and balance present between the two Houses.

Q: Any official LP stance on this on Cha Cha?

SPFMD: Wala. There is no official party stance. We have not discussed that. Q: On the infrastructure contraction you mentioned in the hearing?

SPFMD: We are also concerned that the government spending has only grown by 2% during the first quarter of 2014 as compared to the 10% in the first quarter of 2013. Again, the national budget constitutes 18% of the economy. That means for every P100 worth of goods and services produced by our economy, 18%of that is from the national budget. However, the government expenditure for the first three months of this year is only 2% on growth. Only 2% growth per quarter. So, the growth in government expenditure in 2014 is only 2% so therefore, there was a decline.

Q: On the issue of government underspending

SPFMD: To me, a lot of factors. For one, the efficiencies of the bureaucracy, would vary from office to office. You have a good manager in DPWH, the spending program there is good, so it depends on each department. But, you cannot also discount the fact that also because of the DAP decision, this will have a chilling effect on the ability of the bureaucracy to spend.

The challenge therefore to the Aquino administration is how to accelerate spending, and at the same time complying with the Supreme Court decision. How to accelerate spending in the next months of the year, in order to achieve the program of government spending and contribute to the expansion of the economy and at the same time, complying with the decision of the Supreme Court.

Q: Will this result in another project?

SPFMD: That is precisely what I am saying. The challenge of how to comply with the Supreme Court and at the same time accelerate the spending pattern.

Q: What is your recommendation?

SPFMD: It precisely requires closer monitoring of the Office of the President, on the office of the Budget Secretary on the disbursing of the funds to the different departments. It requires a closer monitoring by the Office of the President and the DBM on the spending ability or disbursement of funds given to agencies. Kailangan tutukan nila nang husto and the Congress' oversight functions must be effective in monitoring the expenditures program.

Q: Paano yung pag-define ng savings, is it necessary?

SPFMD: The definition of savings is also necessary because, for example, if we cannot use your savings by the end of the year, your spending program will be hampered. I am not saying that we just spend money without regard to the SC decision. There must be some consciousness, changes. For example, if you buy medicine in January, the appropriation and the bid results in a 25-percent savings. Under the decision of the SC, you have to wait until December before you can spend the 25 percent savings.

Q: Mayroon na kayong figures how much savings was realized due to underspending?

SPFMD: For this year, I have not figured it out. As of today, there is underspending. The program deficit was not met.

Q: May timeline po ba?

SPFMD: Right now, for 2015, it's part of the 2015 budget.

Q: Can we use the savings for the supplemental budget? If we go by the SC decision

SPFMD: I haven't studied that.