Congressional Record 16th CONGRESS, THIRD REGULAR SESSION HOUSE OF REPRESENTATIVES

Vol. 1 Monday, September 28, 2015 No. 26

CALL TO ORDER REP. LAGDAMEO (M.). Mr. Speaker, I move that we proceed to the Reference of Business. At 1:30 p.m., Deputy Speaker Carlos M. Padilla called the session to order. THE DEPUTY SPEAKER (Rep. Padilla). Is there any objection? (Silence) The Chair hears none; the THE DEPUTY SPEAKER (Rep. Padilla). The motion is approved. session of the House will please come to order. The Secretary General will please read the Reference of Business. NATIONAL ANTHEM REFERENCE OF BUSINESS THE DEPUTY SPEAKER (Rep. Padilla). All rise for the singing of the Pambansang Awit. The Secretary General read the following House Bills and Resolutions on First Reading, Everybody rose to sing the Philippine National Messages from the Senate, and Committee Reports, Anthem. and the Deputy Speaker made the corresponding references: PRAYER BILLS ON FIRST READING THE DEPUTY SPEAKER (Rep. Padilla). The House shall observe a minute of silent prayer and House Bill No. 6157, entitled: meditation. “AN ACT DECLARING SEPTEMBER 8 OF EVERY YEAR AS A SPECIAL NON- Everybody remained standing for the one-minute WORKING HOLIDAY, IN CELEBRATION silent prayer and meditation. OF SIDLAKASILAK FESTIVAL IN THE MUNICIPALITY OF LOON, PROVINCE THE DEPUTY SPEAKER (Rep. Padilla). The Asst. OF BOHOL” Majority Leader is recognized. By Representative Relampagos TO THE COMMITTEE ON REVISION OF REP. LAGDAMEO (M.). Mr. Speaker, I move that LAWS we defer the calling of the roll. House Bill No. 6158, entitled: THE DEPUTY SPEAKER (Rep. Padilla). Is there “AN ACT EXTENDING THE DEADLINE FOR any objection? (Silence) The Chair hears none; the COMPLIANCE WITH THE REQUIREMENTS motion is approved. OF THE COMMISSION ON HIGHER EDUCATION (CHED) FOR CONVERSION APPROVAL OF THE JOURNAL INTO A STATE UNIVERSITY, THEREBY AMENDING REPUBLIC ACT NO. 10596, REP. LAGDAMEO (M.). Mr. Speaker, I move ENTITLED: 'AN ACT CONVERTING that we approve Journal No. 25 dated September 23, THE MINDORO STATE COLLEGE OF 2015. AGRICULTURE AND TECHNOLOGY IN THE MUNICIPALITY OF VICTORIA, THE DEPUTY SPEAKER (Rep. Padilla). Is there PROVINCE OF ORIENTAL MINDORO INTO any objection to the motion? (Silence) The Chair hears A STATE UNIVERSITY TO BE KNOWN none; the motion to approve the Journal is approved. AS THE MINDORO STATE UNIVERSITY 2 MONDAY, SEPTEMBER 28, 2015

(MINSU) AND APPROPRIATING FUNDS ON THE REPORTED INTERFERENCE THEREFOR' ” OF FORMER ASSISTANT SECRETARY By Representative Leachon VIRGINIA P. TORRES IN CONNECTION TO TO THE COMMITTEE ON HIGHER AND THE ATTEMPT TO RELEASE SMUGGLED TECHNICAL EDUCATION SUGAR FROM THE BUREAU OF CUSTOMS” House Bill No. 6159, entitled: By Representative Lee “AN ACT AMENDING REPUBLIC ACT TO THE COMMITTEE ON RULES NUMBER. 10596, ENTITLED, 'AN ACT CONVERTING THE MINDORO STATE House Resolution No. 2409, entitled: COLLEGE OF AGRICULTURE AND “RESOLUTION OFFICIALLY NAMING TECHNOLOGY IN THE MUNICIPALITY THE PROPOSED BACOLOD OUTER OF VICTORIA, PROVINCE OF ORIENTAL CIRCUMFERENTIAL ROAD AS THE 'NEW MINDORO INTO A STATE UNIVERSITY BACOLOD ECONOMIC HIGHWAY' ” TO BE KNOWN AS THE MINDORO By Representative Leonordia STATE UNIVERSITY (MINSU) AND TO THE COMMITTEE ON PUBLIC WORKS APPROPRIATING FUNDS THEREFOR' AND HIGHWAYS THEREBY EXTENDING THE DEADLINE FOR COMPLIANCE WITH THE House Resolution No. 2411, entitled: REQUIREMENTS FOR CONVERSION TO “A RESOLUTION CALLING ON THE HOUSE JANUARY 1, 2018” COMMITTEES ON TRANSPORTATION, By Representative Romulo ECOLOGY, TRADE AND INDUSTRY, AND TO THE COMMITTEE ON HIGHER AND METRO MANILA DEVELOPMENT TO TECHNICAL EDUCATION INVESTIGATE, IN AID OF LEGISLATION, THE SO CALLED 'DIESELGATE' House Bill No. 6160, entitled: SCANDAL ARISING FROM THE “AN ACT REGULATING TRANSPORTATION RESIGNATION OF VOLKSWAGEN CEO NETWORK SERVICES, IMPOSING AND MARTIN WINTERKORN OVER RIGGED AUTHORIZING FEES, PROVIDING POLLUTION CONTROL TESTS” PENALTIES FOR VIOLATIONS THEREOF By Representative Castelo AND FOR OTHER PURPOSES” TO THE COMMITTEE ON RULES By Representative Gatchalian (S.) TO THE COMMITTEE ON TRANSPORTATION House Resolution No. 2413, entitled: “RESOLUTION DIRECTING THE RESOLUTIONS COMMITTEE ON AGRICULTURE AND FOOD TO CONDUCT AN INQUIRY, IN AID House Resolution No. 2406, entitled: OF LEGISLATION, ON THE RAMPANT “A RESOLUTION DIRECTING THE SUGAR SMUGGLING WITHIN OUR COMMITTEE ON HOUSING AND URBAN PORTS, WITH THE END IN VIEW THAT DEVELOPMENT TO CONDUCT AN MECHANISMS WOULD BE INSTITUTED INQUIRY, IN AID OF LEGISLATION, ON TO STOP” THE STATUS OF IMPLEMENTATION OF By Representative Colmenares THE AFP/PNP HOUSING PROGRAM AND TO THE COMMITTEE ON RULES POSSIBLE INNOVATIONS THAT MAY BE DONE TO FURTHER IMPROVE THE ADDITIONAL COAUTHORS SAME” By Representative Gutierrez The list of additional coauthors is reflected in TO THE COMMITTEE ON RULES Journal No. 26, dated September 28, 2015.*

House Resolution No. 2407, entitled: “A RESOLUTION DIRECTING THE PROPER MESSAGES FROM THE SENATE COMMITTEE/S OF THE HOUSE OF REPRESENTATIVES TO CONDUCT AN Message dated September 22, 2015 informing the INQUIRY IN AID OF LEGISLATION, House of Representatives that the Senate on

* See ANNEX (printed separately) MONDAY, SEPTEMBER 28, 2015 3

September 21, 2015, designated Senators Paolo Message dated September 22, 2015 informing the House Benigno 'Bam' Aquino IV, Ferdinand R. Marcos of Representatives that the Senate on September 21, Jr., Aquilino 'Koko' Pimentel III, Maria Lourdes 2015, passed Senate Bill No. 2831, entitled: Nancy S. Binay and Joseph Victor G. Ejercito as “AN ACT INSTITUTING THE PHILIPPINE conferees to the Bicameral Conference Committee HALAL EXPORT DEVELOPMENT AND on the disagreeing provisions of Senate Bill No. PROMOTION PROGRAM, CREATING 2401, entitled: FOR THE PURPOSE THE PHILIPPINE “AN ACT ESTABLISHING ENABLING HALAL EXPORT DEVELOPMENT AND MECHANISMS FOR MEANINGFUL PROMOTION BOARD, AND FOR OTHER YOUTH PARTICIPATION IN NATION PURPOSES” BUILDING, STRENGTHENING in which it requests the concurrence of the House THE SANGGUNIANG KABATAAN, of Representatives CREATING THE MUNICIPAL, CITY AND TO THE COMMITTEE ON AGRICULTURE PROVINCIAL YOUTH DEVELOPMENT AND FOOD COUNCILS, AND FOR OTHER PURPOSES” Message dated September 22, 2015 informing the and House Bill No. 6043, entitled: House of Representatives that the Senate on “AN ACT INTRODUCING REFORMS IN September 21, 2015, passed Senate Bill No. 2209, THE SANGGUNIANG KABATAAN, entitled: AMENDING FOR THE PURPOSE CERTAIN “AN ACT ESTABLISHING RESOURCE SECTIONS OF REPUBLIC ACT NO. 7160, CENTERS FOR INDIGENOUS PEOPLES TO AS AMENDED, OTHERWISE KNOWN AS ENHANCE AND ENSURE DELIVERY OF THE 'LOCAL GOVERNMENT CODE OF ESSENTIAL SERVICES APPROPRIATING 1991' ” FUNDS THEREFOR AND FOR OTHER TO THE COMMITTEE ON RULES PURPOSES” in which it requests the concurrence of the House Message dated September 22, 2015 informing the House of Representatives of Representatives that the Senate on September 21, TO THE COMMITTEE ON INDIGENOUS 2015 approved the Conference Committee Report CULTURAL COMMUNITIES AND of the Bicameral Conference Committee on the INDIGENOUS PEOPLES disagreeing provisions of Senate Bill No. 2898, entitled: Message dated September 22, 2015 informing the House “AN ACT EXPANDING THE COVERAGE of Representatives that the Senate on September 21, OF INCENTIVES GRANTED TO 2015, passed Senate Bill No. 2837, entitled: NATIONAL ATHLETES, COACHES “AN ACT STRENGTHENING THE OPERATIONS AND TRAINERS REPEALING FOR OF THE NATIONAL LABOR RELATIONS THE PURPOSE REPUBLIC ACT NO. COMMISSION, AMENDING FOR THIS 9064, ALSO KNOWN AS 'NATIONAL PURPOSE ARTICLES 219 AND 221 OF ATHLETES, COACHES AND TRAINERS PRESIDENTIAL DECREE NO. 442, AS BENEFITS AND INCENTIVES ACT OF AMENDED, OTHERWISE KNOWN AS 'THE 2001' AND APPROPRIATING FUNDS LABOR CODE OF THE PHILIPPINES' ”; and THEREFOR” Senate Bill No. 2835, entitled: and House Bill No. 5912, entitled: “AN ACT PROTECTING SEAFARERS “AN ACT EXPANDING THE COVERAGE OF AGAINST AMBULANCE CHASING AND INCENTIVES GRANTED TO NATIONAL IMPOSITION OF EXCESSIVE FEES, AND ATHLETES AND COACHES AND PROVIDING PENALTIES THEREFOR APPROPRIATING FUNDS THEREFOR, in which it requests the concurrence of the House REPEALING FOR THE PURPOSE of Representatives REPUBLIC ACT NO. 9064, ALSO TO THE COMMITTEE ON RULES KNOWN AS THE 'NATIONAL ATHLETES, COACHES AND TRAINERS BENEFITS COMMITTEE REPORTS AND INCENTIVES ACT OF 2001' OR 'SPORTS BENEFITS AND INCENTIVES Report by the Committee on Poverty Alleviation ACT OF 2001' ” (Committee Report No. 895), re H. R. No. 2410, TO THE COMMITTEE ON RULES entitled: 4 MONDAY, SEPTEMBER 28, 2015

“A RESOLUTION URGING THE NATIONAL 27TH ANNUAL READERS' CHOICE GOVERNMENT TO IMPLEMENT AWARDS OF THE INTERNATIONAL A KABUHAYAN PROGRAM TO TRAVEL MAGAZINE CONDE NAST PROVIDE JOBS, LIVELIHOOD AND TRAVELER” ENTREPRENEURIAL OPPORTUNITIES AT recommending its approval in substitution of House THE COMMUNITY LEVEL” Resolutions Numbered 1611 and 1619 recommending its adoption in substitution of House Sponsors: Representatives Relampagos, Resolution No. 1967 Masongsong and Abueg Sponsors: Representatives Fortuno, Rodriguez (R.) TO THE COMMITTEE ON RULES and Rodriguez (M.) TO THE COMMITTEE ON RULES REP. ORTEGA (F.). Mr. Speaker.

Report by the Committee on People's Participation THE DEPUTY SPEAKER (Rep. Padilla). The Dep. (Committee Report No. 896), re H. R. No. 2412, Majority Leader is recognized. . entitled: “RESOLUTION RECOGNIZING AND OMNIBUS CONSIDERATION OF BILLS COMMENDING THE INITIATIVES FOR ON SECOND READING INTERNATIONAL DIALOGUE, RECIPIENT OF THE ORDER OF TIMOR LESTE REP. ORTEGA (F.). With leave of the House, I move AWARD, FOR ITS SIGNIFICANT ROLE for the omnibus consideration of several measures: AND VALUABLE CONTRIBUTION IN House Bills No. 5601, 6005, 5749 and 5859. BUILDING PEACE AND IN FURTHERING SELF-DETERMINATION IN TIMOR THE DEPUTY SPEAKER (Rep. Padilla). Is there LESTE” any objection? (Silence) The Chair hears none; the recommending its adoption in substitution of House motion is approved. Resolution No. 2173 Sponsors: Representatives Asilo, Belmonte (J.) REP. ORTEGA (F.). I move that the Explanatory and Bag-ao Notes of the aforementioned Bills be considered as the TO THE COMMITTEE ON RULES sponsorship speeches thereon.

Report by the Committee on Health and the Committee THE DEPUTY SPEAKER (Rep. Padilla). Is there on Appropriations (Committee Report No. 897), re any objection? (Silence) The Chair hears none; the H. No. 6173, entitled: motion is approved. “AN ACT INCREASING THE BED CAPACITY OF EVERSLEY CHILDS SANITARIUM REP. ORTEGA (F.). Mr. Speaker, there being no HOSPITAL IN THE PROVINCE OF CEBU Members who wish to interpellate the distinguished FROM FIFTY (50) TO ONE HUNDRED Sponsors of the said bills or speak against the measures, (100), UPGRADING ITS SERVICE I move that we terminate the period of sponsorship and FACILITIES AND PROFESSIONAL debate. HEALTHCARE AND APPROPRIATING FUNDS THEREFOR” THE DEPUTY SPEAKER (Rep. Padilla). Is there recommending its approval in substitution of House any objection? (Silence) The Chair hears none; the Bill No. 1545 motion is approved. Sponsors: Representatives Eriguel and Quisumbing REP. ORTEGA (F.). There being no Committee TO THE COMMITTEE ON RULES or individual amendments, I move that we close the period of amendments on the aforementioned House Report by the Committee on Tourism (Committee Bills. Report No. 898), re H. R. No. 2414, entitled: “A RESOLUTION CONGRATULATING THE THE DEPUTY SPEAKER (Rep. Padilla). Is there PROVINCE OF PALAWAN AND THE any objection? (Silence) The Chair hears none; the PROVINCE OF AKLAN FOR HAVING motion is approved. BEEN ADJUDGED NUMBER ONE (NO. 1) AND NUMBER TWELVE (NO. 12), REP. ORTEGA (F.). Mr. Speaker, I move that we RESPECTIVELY, AMONG THE TOP approve the aforementioned House Bills on Second 30 ISLANDS IN THE WORLD IN THE Reading. MONDAY, SEPTEMBER 28, 2015 5

VIVA VOCE VOTING we consider House Bill No. 6132, as contained in Committee Report No. 894, as reported out by the THE DEPUTY SPEAKER (Rep. Padilla). There is a Committee on Appropriations. motion to approve the said House Bills on Second Reading. May I ask that the Secretary General be directed to As many as are in favor, please say aye. read only the title of the measure.

SEVERAL MEMBERS. Aye. THE DEPUTY SPEAKER (Rep. Padilla). Is there any objection? (Silence) The Chair hears none; the THE DEPUTY SPEAKER (Rep. Padilla). As many motion is approved.* as are against, please say nay. The Secretary General is directed to read only the title of the measure. FEW MEMBERS. Nay. With the permission of the Body, and since copies OMNIBUS APPROVAL OF BILLS of the measure have been previously distributed, the ON SECOND READING Secretary General read only the title thereof without prejudice to inserting its text in the Congressional THE DEPUTY SPEAKER (Rep. Padilla). The ayes Record. have it; the motion is approved.* The aforementioned House Bills are approved on THE SECRETARY GENERAL. House Bill No. Second Reading. 6132, entitled: AN ACT APPROPRIATING FUNDS The Dep. Majority Leader is recognized. FOR THE OPERATION OF THE GOVERNMENT OF THE REPUBLIC OF THE PHILIPPINES FROM SUSPENSION OF SESSION JANUARY ONE TO DECEMBER THIRTY-ONE, TWO THOUSAND AND SIXTEEN, AND FOR REP. ORTEGA (F.). I move that we suspend session OTHER PURPOSES. for a few minutes. THE DEPUTY SPEAKER (Rep. Padilla). The Dep. THE DEPUTY SPEAKER (Rep. Padilla). The Majority Leader is recognized. session is suspended. REP. ORTEGA (F.). Mr. Speaker, I move that we It was 1:38 p.m. recognize the Gentleman from the Third District of Davao City, the Hon. Isidro T. Ungab, to sponsor the RESUMPTION OF SESSION said measure.

At 1:40 p.m., the session was resumed. THE DEPUTY SPEAKER (Rep. Padilla). The Gentleman from the Third District of Davao City, the THE DEPUTY SPEAKER (Rep. Padilla). The Hon. Isidro T. Ungab, the Chairman of the Committee session is resumed. on Appropriations, is recognized to take the floor. The Dep. Majority Leader, the Hon. Francisco Emmanuel R. Ortega III is recognized. SPONSORSHIP SPEECH OF REP. UNGAB

REP. ORTEGA (F.). Mr. Speaker, I move that we REP. UNGAB. Mr. Speaker, my esteemed take up the Business for the Day. colleagues, ladies and gentlemen: Good afternoon. I stand on this rostrum to sponsor THE DEPUTY SPEAKER (Rep. Padilla). Is there House Bill No. 6132 or the General Appropriations Bill any objection? (Silence) The Chair hears none; the of 2016, not only as the Chairman of the Committee motion is approved. on Appropriations but also as a Representative who is echoing in this august Chamber the desire of the people CONSIDERATION OF H.B. NO. 6132 of our districts for an investment of their hard-earned ON SECOND READING money in a Philippines where development is for all Filipinos and not just a few; for a Philippines that is PERIOD OF SPONSORSHIP AND DEBATE governed by the people and not at the expense of the people; for a Philippines where opportunities for a better REP. ORTEGA (F.). Mr. Speaker, I move that life for Filipinos are abundant and not scarce to the

* See MEASURES CONSIDERED (printed separately) 6 MONDAY, SEPTEMBER 28, 2015 point where Filipinos are forced to be away from their based on a fiscal program where total revenues of country and loved ones to secure a better life in other P2.697 trillion in 2016, which translates to 17.5 percent countries; for a Philippines where disaster is dealt with of GDP and is higher by 18.5 percent from the 2015 courage, confidence and preparedness and not with fear, revenue program of P2.275 billion consolidated Public uncertainty and helplessness; and an investment for a Sector Deficit of P128.8 billion or 0.8 percent of GDP; Philippines where lasting peace and the rule of law and national government budget deficit of P308.7 billion not war and chaos, reign. or 2 percent of GDP, consistent with the Medium Term Mr. Speaker, my distinguished colleagues, I sponsor Fiscal Program; and outstanding national government House Bill No. 6132 because I am convinced that with debt of P6.423 trillion or a debt-to-GDP ratio of 41.8 it and through its proper utilization, we are making an percent by the end of 2016. investment that will undoubtedly yield the return of a Mr. Speaker, my esteemed colleagues, the proposed better Philippines not only for us in this generation but 2016 Budget of P3.002 trillion is 15.2 percent or P396 also for the succeeding generations of Filipinos. billion more than the 2015 expenditure program. It His Excellency President Benigno S. Aquino III corresponds to 19.5 percent of the GDP, increasing from submitted to this Chamber a budget proposal with the 18.5 percent of the GDP in 2015. Of the P3.002-trillion theme “Paggugol na Matuwid: Saligan ng Tuloy-Tuloy obligation budget, new general appropriations which na Pag-unlad.” This budget proposal was crafted with we proposed Congress to authorize is P2.139 trillion, the overarching objective of realizing inclusive growth consisting of P2.071 trillion in Programmed New for all Filipinos specifically through sustained reforms Appropriations and P67.5 billion in Unprogrammed in public financial management. These reforms stand on Appropriations which may only be utilized if revenues the principles of spending within our means, investing exceed targets or new loans will be secured. It is in the right priorities and delivering measurable results. noteworthy that Unprogrammed Appropriations will These principles are given flesh by a public financial decrease by 45.1 percent from P123.1 billion in 2015; management approach that empowers Filipinos through and that the 2016 allocation is equivalent to a mere 2.2 greater transparency, accountability and people’s percent of the total budget. participation. The Programmed New Appropriations of P2.071 The proposed National Budget for 2016 has been trillion, together with the P930.7 billion in Automatic shaped by financial management reforms that include Appropriations which is outside the purview of this Two-Tier Budgeting Approach, the GAA-as- Release- General Appropriations Bill, will provide for the Document policy, the Performance-Informed Budgeting appropriation cover to the P3.002 trillion Budget. (PIB) and Unified Accounts Code Structure (UACS) and House Bill No. 6132 effectively reduces the number of the Bottom-Up Budgeting (BUB) process. Special Purpose Funds (SPFs) from 10 in the 2015 GAA As the proposed budget has been shaped by these to 7 in the 2016 proposed Budget. The E-Government reforms, we become more confident that it is not just Fund and the International Commitments Fund a budget where we spell out the sources of funds were incorporated back to the budgets of the and the plan for the disbursement of funds but an relevant departments while the Rehabilitation and investment plan for a better Philippines. We agree with Reconstruction Program was integrated into the the appreciation of President Aquino that the national National Disaster Risk Reduction and Management budget is the government’s most potent instrument in Fund (NDRRMF). It is also noteworthy that the achieving the country’s development goals. From the amounts allocated for the Miscellaneous Personnel point of view of a Representative of the people, I say Benefits Fund and the Pension and Gratuity Fund were with conviction that the national budget should be the notably decreased, as funds for the creation of new clearest, the loudest and the best expression of our or filling of unfilled positions as well as compulsory people’s desire for development. retirement were integrated back into their respective Mr. Speaker, my distinguished colleagues, I sponsor departments’ budgets. The NDRRMF meanwhile House Bill No. 6132 which proposes a National Budget expanded significantly to enable the government for 2016 amounting to P3.002 trillion. This proposal is to respond better to calamities and the needs of anchored on the assumptions that economic growth will victims. be 7 to 8 percent in 2016 and over the medium term, Mr. Speaker, my fellow Representatives of the inflation will be within 2 to 4 percent, and an exchange Filipino people, investing in government operations rate of P43 to P46 to a dollar. and programs that are expected to yield development Mr. Speaker, the P3.002-trillion proposed National returns for our people needs to stand on a clear plan Budget is consistent with other macroeconomic about the source of our people’s investment. First, we assumptions such as a 364-day Treasury Bill rate of will source this from government revenues. two to four percent, exports growth at 6 percent and Of the P2.697 trillion in revenues to be collected imports growth at 12 percent. It has been formulated in 2016, 94.3 percent or P2.543 trillion will be sourced MONDAY, SEPTEMBER 28, 2015 7 from tax sources. The remainder will come from General Public Services will meanwhile receive non-tax revenues of P151.4 billion and privatization 17.3 percent of the 2016 Budget or P517.9 billion, an proceeds at P2 billion. Collections by the Bureau increase of 20.1 percent year-on-year. This will support of Internal Revenue (BIR) are expected to increase expenditures for general administration, including fiscal by 21 percent year-on-year, from P1.674 trillion in management, foreign affairs and lawmaking, as well as 2015 to P2.026 trillion in 2016. The government’s public order and safety. intensified tax collection campaign and efficient The debt burden which is composed of interest tax administration as well as the Sin Tax reform payments to service outstanding debts as well as Net are expected to boost the BIR’s tax collection. The Lending to government corporations will reach an all- continuing reforms at the Bureau of Customs (BOC) time low of 14 percent of the total budget or P419.3 will meanwhile enable it to increase its tax collection billion. The share of the debt burden has dramatically by 14.2 percent, from P43.6 billion this year to P498.7 shrunk from a whopping 32 percent in 2005 due to the billion in 2016. Other revenues will come from the government’s prudent liability management. collections of the Bureau of Treasury (BTr) at P58.3 To boost the government’s capacity to defend billion, fees and charges at P40 billion, the sale of national sovereignty, the Defense Sector will get a government’s assets at P2 billion, and other non-tax share of 4.3 percent or P129.1 billion. This represents revenues at P53.2 billion. an 11.5-percent increase from 2015 due to increased Our people’s investment will also be funded through investments in the modernization of the Armed Forces borrowings. Consistent with its goal of further reducing of the Philippines. its outstanding debts as a proportion of the GDP, the Mr. Speaker, my dear colleagues, we have to note national government will borrow P674.8 billion in 2016. that beginning with the 2016 proposed Budget, the Of this amount, P308.7 billion will be used to finance government adopted a new framework in classifying the the projected fiscal deficit of P347.7 billion to amortize budget. Developed by the Organization for Economic maturing obligations, and P18.4 billion for the national Development and Cooperation and published by the government’s cash buffer account. United Nations Statistical Division, the Classification It is noteworthy that 84.4 percent or P570.2 billion of Functions of Government (COFOG) categorizes of the projected gross borrowings next year will come programs and projects of government agencies from the domestic market through the issuance of according to function to accurately reflect an agency’s treasury bills, fixed-rate treasury bonds, among others. contribution to the social and economic goals of the The remaining 15.5 percent or P104.6 billion will be government. obtained from external sources such as concessional Mr. Speaker, the proposed National Budget for loans for foreign-assisted projects and from global 2016 by budget expense class illustrates the strategies of capital markets. the national government in realizing inclusive growth. Mr. Speaker, my distinguished colleagues, allow Among the expense class, Capital Outlays (CO) will me to paint a picture of the proposed National Budget receive the largest increase at 29.8 percent and this for 2016 by describing how it looks like at different increase is driven by the government’s commitment to dimensions. The distribution of the 2016 Budget boost spending in infrastructure that supports economic by sector reflects the government’s commitment to growth and the efficient delivery of services. Notable inclusive development as more than P64 for every public infrastructure investments in 2016 include the P100 will be spent on social and economic services in construction and rehabilitation of classrooms, especially 2016. This shows a dramatic improvement from P45 those needed for the rollout of senior high schools under for every P100 in 2015. the K-12 Program; the completion of the national road The Social Services Sector continues to get a larger network; the construction and rehabilitation of health share of the budget at 36.8 percent or P1.106 trillion. facilities especially in rural areas, among others. Capital This allocation, which grew by 16.1 percent from 2015, Outlays for 2016 will reach P702.9 billion or 23.4 will support the rollout of the K-12 Basic Education percent of the total 2016 Budget. Program, Socialized Housing, Universal Health Care, As in previous years, the proposed Budget for and the Pantawid Pamilyang Pilipino Program and other 2016 allocates the largest share of 36.3 percent for social protection packages. Maintenance and Other Operating Expenditures Economic Services will get the second biggest share (MOOE) with P1.094 trillion representing an increase of the budget with 27.6 percent or P829.6 billion. Larger of 15.9 percent over the current year’s allocation, The by 17.3 percent than the allocation for the current year, MOOEs in 2016 will be used to expand major social this will support government’s investments in transport and economic programs, including the K-12 Basic infrastructure, agricultural development, tourism Education Program, routine maintenance of national development, and in revitalizing the manufacturing roads and bridges, requirements for the national and sector. local elections, and the subsidies to government 8 MONDAY, SEPTEMBER 28, 2015 corporations particularly for socialized housing support the DPWH’s completion of the national road programs, among others. network by 2016, the construction and rehabilitation Personnel Services (PS) will reach P810.8 billion or of flood control and drainage, the implementation of 27 percent of the total expenditure program: an increase infrastructure projects needed by the education, health of 8.7 percent year-on-year. Driving the increase are care, agriculture, tourism and other priority sectors, the requirements for the creation of new positions and among others. filling up of unfilled positions for priority agencies, Bolstering the government’s commitment to protect particularly those in education, police, defense, and national sovereignty and establish an environment of health. The Personnel Services allocation for 2016 also peace and the rule of law, the Department of National includes provisions for the performance-based bonuses Defense (DND) and the Department of the Interior and as well as proposed salary increases. Local Government (DILG) will receive the third and Financial Expenses will reach 13.1 percent of the fourth largest budgetary allocations at P172.7 billion 2016 Budget, with an allocation of P394.4 billion. and P154.5 billion, respectively. This expense category will decline by 1.3 percent The Departments of Health (DOH), Social Welfare year-on-year given the marked decrease in interest and Development (DSWD), Agriculture (DA), Finance payments. (DOF), Transportation and Communications (DOTC), In terms of the budget per region, of the P3.002- and Environment and Natural Resources (DENR) trillion proposed Budget for 2016, 57.2 percent or follow at 4th to 10th place, reflecting the government’s P1.718 trillion will be distributed to the regions, commitment to pursue universal health care, provide an increase of 15.9 percent from P1.482 trillion in ample social protection, improve rural productivity and 2015. While the allocation for the National Capital incomes, sustain business competitiveness, rehabilitate Region decreased by 5.3 percent to P457.5 billion, the the public transportation system, and establish allocations of Luzon, Visayas and Mindanao grew faster environmental resiliency. than the growth rate of the total budget. Specifically, In summary, the passage of House Bill No. 6132 growth rate is at 18.9 percent or P594 billion for Luzon; will mean a congressional authorization for P2.139 21.2 percent or P285.4 billion for Visayas; and 17.6 trillion in New General Appropriations composed of percent or P380.9 billion for Mindanao. P2.071 trillion in Programmed New Appropriations and Which agencies of the government will receive a P67.5 billion in Unprogrammed Appropriations. The larger share of the proposed budget than the others? In projected Automatic Appropriation of P930.7 billion is making decisions about how the national budget will outside the purview of this General Appropriations Bill, be allocated among government agencies, the primary having already been authorized under existing laws. criterion should be the agency’s role in realizing our Mr. Speaker, distinguished Ladies and Gentlemen government’s overarching goal of achieving inclusive of this Chamber of the Philippine Congress, as the development. Chairman of the Committee on Appropriations, this Of the total proposed Budget for 2016, 53.8 humble Representation submits House Bill No. 6132 percent or P1.614 trillion will be allocated to the top to you for your consideration and approval. We submit 10 departments of the Executive branch, with the this Bill after thoroughly scrutinizing every detail of it largest budgets in terms of agency-specific budgets during the Committee deliberations on this proposed plus allocation from Special Purpose Funds (SPFs). measure. During these deliberations, we in the The makeup of the top 10 departments particularly Committee on Appropriations remain committed to our reflects the government’s commitment to inclusive duty of ascertaining that the national budget proposal development. that we are presenting to you now is one where every Consistent with the constitutional mandate peso that we will authorize is intended to serve the best of providing the largest budget to education, the interest of our country and our people. Department of Education (DepEd) will receive the Mr. Speaker, as an institution composed of the highest allocation of P435.9 billion in 2016. Growing people’s Representatives, this Chamber has not failed by 15.4 percent, the budget of DepEd will support the the Filipino people in passing the national budget bill construction or rehabilitation of classrooms, hiring on time during the last five years. I am confident that and training of teachers, procurement of learning with our collective wisdom and will, we will also materials, among others needed for the rollout of pass on time the National Budget Bill for 2016. The the K-12 Program, particularly that the first year’s congressional power of the purse comes with the implementation of senior high school in 2016. responsibility not only of ensuring that every public As the government’s lead infrastructure arm, the peso is spent within means, on the right priorities, Department of Public Works and Highways (DPWH) and with measurable results particularly in fostering will receive the second largest share of P394.5 billion, inclusive growth, but also of passing the budget bill an increase of 29.7 percent year-on-year. This will on time. Delaying the passage of the budget bill will MONDAY, SEPTEMBER 28, 2015 9 mean delaying our country’s forward move towards the THE DEPUTY SPEAKER (Rep. Padilla). Thank achievement of our national development goals. you and well taken, Honorable Ungab. On this note, please allow this Representation to The Dep. Majority Leader is recognized. express his sincerest gratitude to the honorable Speaker for his invaluable support to this Representation and to General Principles and Provisions the Committee on Appropriations. Indeed, I can and I should say that the Speaker’s strong commitment to REP. ORTEGA (F.). Mr. Speaker, I move that we the cause of responsive service to the Filipino people go to the debate on General Principles and Provisions, has inspired us in the Committee on Appropriations and for the distinguished Sponsor to defend the Bill to perform our task with the same degree and kind of and the distinguished Minority Leader to interpellate commitment. the distinguished Sponsor. This Representation also expresses his sincerest gratitude to the Vice Chairpersons and members of THE DEPUTY SPEAKER (Rep. Padilla). The the Committee on Appropriations, as well as the other distinguished Minority Leader, the Hon. Ronaldo Members of this House from both the Majority and B. Zamora of San Juan City, shall take the floor to Minority blocs for their truly valuable contributions in interpellate the Sponsor. shaping and defining the budget that we now submit for What is the pleasure of the Gentleman from San plenary consideration. This Representation respects and Juan City? admires all of you for your display of the true essence of duty. With your participation and contributions in REP. ZAMORA (R.). Mr. Speaker, I wonder if my the Committee deliberations on the proposed national distinguished colleague, the Representative of the Third budget, you have undoubtedly served your constituents District of Davao City and the distinguished Chairman well and have truly served as their voice. of the Committee on Appropriations, will entertain a My dear friends and colleagues in this Chamber, number of questions. this Representation has been truly privileged to have been entrusted the chairmanship of the Committee on THE DEPUTY SPEAKER (Rep. Padilla). The Ways and Means during the Fifteenth Congress, and Honorable Ungab is recognized. the chairmanship of the Committee on Appropriations during this Sixteenth Congress. As I am now in the REP. UNGAB. Gladly, Your Honor, Mr. Speaker. It is an last year of my third term as Representative of the honor to be interpellated by the honorable Minority Leader. Third District of Davao City, I take this opportunity to thank the leaders and Members of this House for THE DEPUTY SPEAKER (Rep. Padilla). Please honoring me with opportunities to serve not only proceed. my constituents in the Third District of Davao City, The honorable Minority Leader is recognized. but also our people throughout the country. Indeed, these opportunities allowed me to grow as a person REP. ZAMORA (R.). Thank you, Mr. Speaker. and to appreciate more the nobility, the value, and Thank you, distinguished Sponsor. the importance of true democratic representation and Mr. Speaker, may I start on a personal note. responsive public service. I am extremely gratified that the budget is being Indeed, the most valuable lesson I have learned sponsored by our distinguished colleague from the Third in the last nine years as a people’s Representative is a District of Davao City. I say “personal note” because lesson on the true essence of public service— that as very few in the halls of Congress will remember or servants of the public, we hold but we do not own power will even know that the distinguished Chairman of the and as such, success in public service is not measured Committee on Appropriations started his public career, by how much power we hold and for how much long in fact, in my office. we have held such power, but by the positive difference we have made on the lives of the owners of that power: REP. UNGAB. He was my mentor, Your Honor, our true masters, our people. Mr. Speaker. Armed with this lesson, Mr. Speaker, my distinguished colleagues, I submit to you House REP. ZAMORA (R.). I can see that he has learned Bill No. 6132 because I believe that in using our his lessons well and now, he has acquitted himself as congressional power of the purse in approving this the Chairman of the Committee on Appropriations measure, we will make a significant and positive not just with great care, not just with great respect for difference on the lives of those we represent in this the position that he holds. Even more importantly, he Chamber—the Filipino people. has taken real steps to ensure that the money that we Maraming salamat po at mabuhay tayong lahat. will spend in funding the requirements of a large and 10 MONDAY, SEPTEMBER 28, 2015 a growing population are, in fact, adequately spent, less significant. That is correct, is it not, Mr. Speaker, adequately programmed, adequately sourced from all Mr. Chairman? If you will take a look, Mr. Speaker, of the different sources available to the government. distinguished colleague, at the BESF, Table A.1 details Of course, Mr. Speaker, the Minority is not here to the macroeconomic parameters or projections of the just say nice things about this Budget. We have a number proposed budget. We are looking at the same budget, of questions that I think are important for an adequate are we not, Mr. Speaker, distinguished Chairman? understanding of this Budget. Having reviewed the different budget materials, Mr. Speaker, particularly REP. UNGAB. Yes, Mr. Speaker, Your Honor. the Budget on Expenditures and Sources of Financing (BESF), I think these points in the end will help us REP. ZAMORA (R.). Table A.1, Mr. Speaker, develop the kind of budget that we not only want but contains 13 key macroeconomic indicators. We start more important, that our people truly need. with GNI or Gross National Income growth; Real Let me just ask just one brief housekeeping question, GDP Growth; Inflation Rate; Population estimate; Mr. Speaker, and that is, distinguished Chairman, I Unemployment Rate; T-Bill Rate; Foreign Exchange suppose the heads of various departments comprising Rate; LIBOR; Dubai Crude Oil Price; our expected the Development Budget Coordination Committee, the export growth, Exports of Goods; our import growth, DBCC, are all present. Imports of Goods; our Current Account Balance; and the Gross International Reserves. That is complete, is REP. UNGAB. Yes. Yes, Mr. Speaker, Your Honor, it not Mr. Speaker? they are all present. REP. UNGAB. Yes, Your Honor, we have the same REP. ZAMORA (R.). Perhaps, my distinguished National Expenditure Program and the BESF. Chairman would like to show to the different Members of the House now present, who they are and who are present. REP. ZAMORA (R.). Can we just go, distinguished colleague, to columns 3 and 4 of Table A.1. These will THE DEPUTY SPEAKER (Rep. Padilla). May be our targets for 2015, where we are right now; and we request the honorable Chairman to introduce the 2016 which will be the budget for next year. Let me members of the DBCC to the House of Representatives, remind everyone that that is the budget for our election individually. year. Can we just go to columns 3 and 4, distinguished colleague, Mr. Speaker. REP. UNGAB. For me, Mr. Speaker, Your I think it is important to say at this point that these Honor, it is my honor to introduce the members of indicators can never be overemphasized. If we are able the Development Budget Coordination Committee to attain these macroeconomic assumptions, then we headed by the DBM Secretary, the honorable Secretary will have smoother budget execution, particularly with Florencio “Butch” Abad. respect to the revenue components of our fiscal program. That is correct, is it not, distinguished colleague, Mr. THE DEPUTY SPEAKER (Rep. Padilla). Please Speaker? rise, Mr. Secretary. Thank you. REP. UNGAB. Yes, Mr. Speaker.

REP. UNGAB. The honorable Secretary of Finance REP. ZAMORA (R.). On the other hand, if we are Cesar Purisima. The head of the NEDA, Secretary not able to attain some or all of these assumptions, that General Arsenio Balisacan is in the United Nations imperils not only the fundamentability of the budget, at present and is now represented by Deputy Director it also imperils the intended effects on the economy of General Rolando Tumpalan, Mr. Speaker, Your Honor. this budget. That is correct, is it not? They are the members of the Development Budget Coordination Committee. REP. UNGAB. That is also correct, Your Honor.

REP. ZAMORA (R.). Thank you, Mr. Speaker. REP. ZAMORA (R.). I do not want to discuss Thank you, Mr. Chairman. all of these at length, but let me just ask about four Can I start with talking about the macroeconomic points: first, Real GDP growth; second, inflation rate; parameters of the budget. After all, Mr. Speaker, third, import growth; and fourth, the exchange rate. distinguished Chairman, these are the very foundations I chose these four, distinguished colleague, because of the proposed budget, both in its entirety and in their implications on our revenue program are very detail and I suppose it would not have been placed at significant. In fact, if you look into the further tables the very first table in our budget books if it were any of the 2015 BESF on budget sensitivity, what the MONDAY, SEPTEMBER 28, 2015 11 second chart tells us is that per every unit that we go we remember, the main issue of the first quarter growth above or under these macroeconomic assumptions or was not with the revenue generation but questions on the parameters, we will gain or lose potential revenues by disbursements so there were measures made to hasten or a certain amount and of course, the 2015 BESF will be to make the disbursements a bit faster, Your Honor. duplicated by the 2016 BESF. Will it not, distinguished colleague? REP. ZAMORA (R.). In short, distinguished colleague, what the Committee is telling us is that, REP. UNGAB. Yes, Your Honor, I agree. yes, we may have been wrong with our targets; yes, we may have prepared the budget wrongly but REP. ZAMORA (R.). Looking at Table A.6, for because we were hit by a combination of good luck, instance, if we just have P1 depreciation in the peso-to- a little better management, a little better collection of US dollar exchange rate, you are looking at very large revenues that really should have been collected right implications for our revenues, for our disbursements, from the beginning, we were able to recover from our and for our eventual budget balance. So that every initial over-optimistic targets and we are still at a good peso depreciation means an 8.7 percent difference in point in our fiscal targets. Is that correct, distinguished revenues, 2.2 percent in disbursements, 6.5 percent in colleague? the budget balance. These are, of course, figures from your own submissions, distinguished colleague, so I am REP. UNGAB. You are very correct there, Your certain that we cannot have any particular difficulties Honor, and not only the element of luck; perhaps, about what we are using because, again, Mr. Speaker, we have to give credit to our financial managers, I we are using the same books, the same accounts, the understand, who really did well in our public finance same pieces of paper. considering that if we look at the gains made in the Again, let me ask, distinguished colleague, I am macroeconomics, particularly in the fundamentals of still correct up to this point, am I not? our economy, we have noticed that, as I gathered from the figures of the Central Bank, we were able to have REP. UNGAB. Yes, Your Honor, the figures are a continuous growth of about 65 quarters. Although correct. the average there was lower, we got the best increases in our GDP in the last five years which has an average REP. ZAMORA (R.). In short, distinguished of 6.3 percent. That is why I personally believe that colleague, let me go to a number of questions. by next year, the target of 7 percent is attainable, Mr. Our real GDP growth target for 2015 was in the Speaker. range of 7 percent to 8 percent but that is no longer attainable even in the last four months, distinguished REP. ZAMORA (R.). For this year, certainly not. colleague. We are not really looking anymore at 7 to 8 Not 7 percent, distinguished colleague. percent, are we, distinguished colleague, because our actual and real GDP growth from January to June in the REP. UNGAB. Yes, 7 to 8 percent next year. first half of this year only averaged 5.3 percent— very, very far from the 7 to 8 percent that we targeted for this REP. ZAMORA (R.). For this year or for next present budget? year?

REP. UNGAB. Yes, Your Honor, it is true that the REP. UNGAB. For next year. target range was not reached and the growth for the first half of the year is about 5.4 percent. Yet, the revenues to REP. ZAMORA (R.). For next year. Well, I cannot support the expenditures of the government still would blame my distinguished colleague if he has to adopt the be sufficient considering that, of course, there is a proper government position of over-optimism but I think the programming as to the releases of the expenditures; figures put us a little back to earth. So, what is the figure and with regard to the revenues, or on the part of the that my distinguished colleague and the sponsoring expenditure, there were a lot of efficiencies or efficient Committee think will be the final figure for the last measures made or conducted. Like borrowings, because two quarters of this year? For this present quarter until of our credit ratings upgrade, there were reductions in the end of September, what is the figure, distinguished our interest payments. This has been enjoyed by both colleague? the government and the private sector. Aside from that, the bias of our borrowings is now towards domestic REP. UNGAB. Yes. The full-year GDP growth, as borrowings and that created a lot of savings in our adjusted by NEDA, is something like 6 percent, Mr. expenditures. In other words, Mr. Speaker, revenues still Speaker. This would require an expansion by at least would be enough to meet our disbursements. In fact, if 6.6 percent in the second semester. 12 MONDAY, SEPTEMBER 28, 2015

REP. ZAMORA (R.). Six percent for the third not really want a one-percent inflation rate, or as is the quarter? case of the Philippines right now, a 0.5 percent inflation rate, do you? REP. UNGAB. For the third and fourth quarters, it should be about 6.6 percent in order to attain a 6 percent REP. UNGAB. Mr. Speaker, the government has growth by the end of 2015, Mr. Speaker. been trying to manage the inflation rates between the targeted range of 2 to 4 percent so as to avoid any REP. ZAMORA (R.). I am sorry, distinguished fluctuations in the prices, most especially … colleague. So, for the last semester made up of two quarters, we expect to get 6.7 percent. REP. ZAMORA (R.). No, not only that distinguished colleague. Any economic student will tell us that you do REP. UNGAB. Six percent, 6.0 percent, Mr. Speaker. not really want a zero inflation rate, or as in the case of many economists in Southeast Asia, you do not want an REP. ZAMORA (R.). So, that will give us a yearend inflation rate which is already in the range of what you figure of 5 point … call “disinflation” because at that point, most economic activities start to sputter. What you want is the kind of REP. UNGAB. No, the scenario is to target 6.6 inflation rate that is not too high but certainly not too percent within the second semester… low either, and I thought that the inflation rate of the government at 2 to 4 percent was just the sweet spot REP. ZAMORA (R.). Okay. for a growing economy like the Philippines. Is that not correct? REP. UNGAB. … that is, from July to December, to enable us to get 6 percent by the end of 2015. REP. UNGAB. That is correct, Mr. Speaker. The 2 to 4 percent range, that is the best that can further REP. ZAMORA (R.). That is still lower than your propel … figure for last year’s budget. In the original projection, you were projecting 7 to 8 percent. REP. ZAMORA (R.). Your most recent figures, distinguished colleague, is 0.5 percent inflation rate. REP. UNGAB. Yes, lower by 1 percent. That is not what your economic managers will want to brag about. Or is it? Is it the government’s position REP. ZAMORA (R.). One percent at seven is 14 that we should lower our inflation rate so that we are percent less. At 8 percent, that is a third, at least a fourth. not just in the zone of disinflation, in fact, you want to So, you are talking of less than 25 percent. That is an go to a zone of deflation. extremely high variance for a target in figure, is it not, distinguished colleague? REP. UNGAB. Mr. Speaker, the average rate per In any case, let me go to your average inflation BSP figures in the average between January to August rate. In 2015, the inflation rate was 1.7 percent and, in of 2015 is 1.7 percent. I believe the government is just fact, the trajectory of our inflation rate is downward. Is correct in trying to maintain the target and although it not, distinguished colleague? the2 to 4 percent is the best target, there are actually market forces that determine the real rates. We have to REP. UNGAB. The figures during the presentation do this because the ideal rate is to maintain inflation would show that the target of 2 to 4 percent has been at the lower level because of the poor population of attained and this is, I think, the fourth or the fifth year the country. We all know that the wage workers, those when targets have been maintained at that level, Mr. low-salaried workers are very dependent on the daily Speaker. income or monthly income and that any increase in the inflation would greatly affect food prices and so, REP. ZAMORA (R.). But, distinguished colleague, it is better for the government to maintain inflation at you do not really want to underachieve your targets, lower rates so as to enable more inclusive growth for do you? the economy, Mr. Speaker.

REP. UNGAB. No, no. REP. ZAMORA (R.). I am not sure about that, distinguished colleague. At certain points, your REP. ZAMORA (R.). Or is it the government’s disinflation rate may be your biggest headache. For position that the lower the inflation rate, the better for instance, in August, which was only a month ago, the economy? I thought the more realistic economic according to your own figures, distinguished colleague, position for any government is a range because you do our latest inflation rate was 0.6 percent… MONDAY, SEPTEMBER 28, 2015 13

REP. UNGAB. It is 1.7 percent. REP. UNGAB. I will first get the figures, Your Honor, Mr. Speaker. Mr. Speaker, the imports of REP. ZAMORA (R.). … or giving you an additional goods level in terms of growth rate, 2015, is at 1 0.1 percent— I will take your figure of 0.7 percent percent. but that appears to be dangerously close to zero and the negative range. I hope that the Philippine inflation REP. ZAMORA (R.). It is 0.1 percent. That is the rate will no longer further drop to under 0.5 percent correct figure, is it not? this month or in the next. This is not a question of impossibility, distinguished colleague. Three of our REP. UNGAB. I will check again, Mr. Speaker. Asian neighbors had already slipped into deflation or negative inflation this year: Singapore with the larger REP. ZAMORA (R.). For 2015, distinguished economy than ours; Thailand with an even larger colleague, January to July 2015, it was 0.1 percent. economy than ours; and Taiwan with an even larger economy than ours. REP. UNGAB. Yes, 1 percent, Mr. Speaker, for In short, without having to go into the known 2015. macroeconomic effects of deflation, let me remind the sponsoring Committee that deflation was a key REP. ZAMORA (R.). The 1 percent is your revised characteristic of the Great Depression in the United States target, distinguished colleague, but the actual figure is and it took the US economy 10 years to recover from that 0.1 percent, one-tenth of the figure that we targeted. The episode. In Japan, deflation hit in the mid-1990s. Even initial target, distinguished colleague, just to remind now, the third largest economy in the world still has to get the sponsoring Committee, was 10-percent import out of the clutches of deflation. Even in the Philippines, growth—10 percent. distinguished colleague, we have had deflation. People I noticed that the distinguished Commissioner of now forget that we were doing rates, like in July, August Customs is here. I wonder if we can check with him and December of 1965, 0.8 percent minus; November about the exact figure. 1968 to May 1969, 0.4 to 1.5 percent minus; July 1986 to March 1987, 0.3 percent to 0.7 percent minus. REP. UNGAB. Yes, Mr. Speaker, the Minority In short, distinguished colleague, I hope that the Leader is correct. The target was 1 percent but the actual government through the sponsoring Committee will figure to date is 0.1 percent, Mr. Speaker. take note that we want to avoid inflation at its hyper levels. We also want to avoid deflation or the term that REP. ZAMORA (R.). Yes. we are using which is “near deflation,” and we want to avoid the figure less than that sweet spot of 2 to 4 REP. UNGAB. The Gentleman is correct. percent inflation, which allows us to continue with our economic activity but does not put us into too much REP. ZAMORA (R.). The original target found in problems for our consuming public. That is correct, is the budget of last year was 10 percent. We have cut it not, distinguished colleague? that in the revised target to 1 percent, which is one- tenth of the original figure but the actual performance REP. UNGAB. The honorable Minority Leader has of the import growth of the Philippine is—for the first a point. However, the government right now is trying to six months, in fact, seven months—is virtually zero maintain the low inflation but as per this Table 1 and as at 0.1 percent. That accounts for the lower revenue to the fears of disinflation, we are still far because 1.7 is stream in the Bureau of Customs. Is it not, distinguished a bit controllable. This is actually due to market forces as colleague? the international prices of oil have been going down but In fact, we are talking about 1 percent of the considering the local scenario, most especially that in original target presented in last year’s budget, which the next half of the year when we expect el niño to come, works out to one-tenth of 10 percent in the revised the outcome there would surely be increased prices of target which now becomes 1 percent, but the actual food. So it is just right that at present, we keep inflation performance is one-tenth of that 1 percent which stable but low, so that by the time el niño comes, the is 0.1 percent. I ask these questions, distinguished inflation will still be very much controllable. colleague, not to irritate my distinguished Chairman of the sponsoring Committee but only to point out REP. ZAMORA (R.). Thank you, Mr. Chairman, the problems of our revenue stream. A large part Mr. Speaker. May I just go into the 2015 and the 2016 of that comes from our imports and because our import growth targets? Can I get the exact figure for imports—keep in mind that a lot of our exports are, import growth in 2015 and subsequently, in this budget, in fact, originally imports into the Philippines. All the 2016 figure? of your electronics exports come to the Philippines 14 MONDAY, SEPTEMBER 28, 2015 first as imports, only to be turned around with value- REP. UNGAB. While our staff are getting the added mostly in terms of labor. We ship them out and figures, Mr. Speaker, again, I would like to propound my they become exports. That is why I am asking these earlier statement that it was really brought by the lower questions, distinguished colleague. prices of oil. Just for updates also—I got these figures from the Department of Finance— our imports in terms REP. UNGAB. Mr. Speaker, the explanation of electronic components and telecom components here is that the sharp decline in oil prices attributed have, in fact, increased. The telecom components, to this 0.1 percent. This explains the low growth in electrical equipment experienced a 63.1-percent importation. increase in imports and for electronic components, there was also an increase of 32.5 percent. So, mainly, again, REP. ZAMORA (R.). That cannot be the entire the overall reduction was brought about by the lower picture, is it, distinguished colleague? I mean, prices of crude oil, Mr. Speaker. obviously, we are dependent upon oil and petroleum products imported into the Philippines that literally REP. ZAMORA (R.). The electronics and fuel our economy, but the point must be made that communications component, what is the base figure, we are also importing less and therefore, we are now distinguished colleague? exporting less. If you check your figures, distinguished colleague, you will find out that we are importing REP. UNGAB. For the electronics, less electronic components and therefore, we are now telecommunications equipment and electric, there was exporting less electronic assemblies. That is correct, is an increase of 63.1 percent in imports, Mr. Speaker. it not, distinguished colleague? Electronic components, again, 32 percent.

REP. UNGAB. Actually, Mr. Speaker, earlier I REP. ZAMORA (R.). Yes, from when, distinguished have said that the main reason for this reduction was colleague? the dramatic decline in oil prices and these are global market forces. If we take out oil importation, non-oil REP. UNGAB. From the 2014 figures, the whole is about 12 percent increase, Mr. Speaker. year 2014 figures are even declining figures as well as the growth for telecom and electronics. It is only for REP. ZAMORA (R.). Distinguished colleague, take this year that both telecom and electronics are exhibiting a look at Dubai crude oil price. That is the standard positive and big increases, Mr. Speaker. being used by our economists, is it not, distinguished colleague? It is listed among the 13 key macroeconomic REP. ZAMORA (R.). In short, in your 2015 figures, indicators in the Gentleman’s Table A.1, Dubai Crude distinguished colleague, yes, you had there an important Oil Price. What is the figure for 2016, distinguished increase but that was because your 2014 figures were colleague? very much lower. That is correct, is it not, distinguished colleague? REP. UNGAB. For 2015, it is 50 to 70 and 55 to 74 for 2016. REP. UNGAB. Figurewise, yes, Mr. Speaker, that is also correct. REP. ZAMORA (R.). I am sure that that requires a major revision right now because we are, in fact, REP. ZAMORA (R.). Let me go to the final topic doing $10 less than the targets given to us in the 2015 that I wanted to take up which is our peso-dollar rate. The budget. We are, in fact, doing $45 to $46 yesterday, original in 2015 was P42 to P45. It was adjusted to P43 about $10 less than your figure. In fact, by next year, to P46. What is the figure for September, distinguished some analysts had said that we may be looking at colleague? The figure, I have this P46.73. $20 to $30 in oil. In short, you are looking at a much lower figure than what the government is expecting, REP. UNGAB. The figures from the Department distinguished colleague. My point being a very simple of Finance, the average is P45 to a US dollar, Mr. one: you may find that your import growth, originally Speaker. 10 percent in the 2015 budget, reduced to 1 percent. Again, in the same budget, it is now doing 0.1 percent; REP. ZAMORA (R.). A little over the target? in short, 1 percent of the entire targeted figure of 2015. What will it look now in 2016, in the new budget that REP. UNGAB. A little over the target. the Committee is sponsoring? What is your import growth, distinguished Chairman? What is the import REP. ZAMORA (R.). In September of 2015, this growth in 2016? will be significantly above the target at P46.73. That is MONDAY, SEPTEMBER 28, 2015 15 about almost P5 from the low rate and above P2 from Representative is a simple one. It is not ordinary figures the high rate. that we are talking about. It may sound difficult, it may sound arcane but in the end, this is in fact our lifeblood. REP. UNGAB. Mr. Speaker. This budget is something that we must all very carefully consider. For instance, if we grow the way we have REP. ZAMORA (R.). The original, I am talking always wanted, which is to hit 7, 8 or even 9 percent about the original, distinguished colleague. growth rates consistently over the next 10 or even 20 years, then we will end up a real Second or First World REP. UNGAB. Although the original… economy in the future and that means lower poverty levels for everyone, better education for the young, REP. ZAMORA (R.). P42 to P45. better development opportunities for the entire economy and better chances of bringing all those OFWs back to REP. UNGAB. … it is just a little above P45 the Philippines where they can find real jobs in their because it is P45.05 to a US dollar, with the adjusted, it own home country. That is why I am asking these is P43 to P46. So, it is still within range, Mr. Speaker. questions, and I hope the sponsoring Committee takes the questions of the Minority in that respect. REP. ZAMORA (R.). The point that I would like Distinguished colleague, I have many, many other to make, Mr. Speaker, distinguished colleague, is a points that I want to take up with you. I have questions simple one and that is, our likely growth scenario in that I will be raising either through me personally or 2016 will not be much different from the 2015 prospects through my colleagues in the Minority about inclusive down to the last day of 2015. Our official target for growth, which is what we all want regardless of political 2016 is 7.8 percent, similar to our growth rate target affiliation, is it not? Inclusive growth, real development of 7.728 percent for 2015. What are the independent as against economic growth, there being a clear forecasts,independent, meaning the IMF, the World distinction between economic growth and economic Bank, the rating agencies? development, always keeping in mind that economic growth is about figures but it is economic development REP. UNGAB. Mr. Speaker, the figures were that we all want. Is it not, distinguished colleague? The included in all the studies made by the NEDA in point being of the Minority, as always, this is more than making their projections for next year and the targets just a book of numbers, this is more than just a book are pegged at 7 to8 percent. Aside from the factors about the economy and how we look at it. It is as much taken into consideration, we all know that empirical a political statement. It is as much a statement of where data will show that during an election year, the growth we are to bring this country that we all love and we all rates are … cherish, to where it should be in its rightful place. Is it not, distinguished colleague? REP. ZAMORA (R.). Significantly higher. In the end, what we want to do in the next few weeks or rather in the next two weeks that we will be REP. UNGAB. … significantly higher. Considering debating about the budget, is that we want to come up that, if you look at the figures of 2010 and 2013, both with a better budget. of which are election years, we are positive that 7 to 8 I have read very carefully the sponsorship speech percent is attainable, Your Honor. of my distinguished colleague, the Chairman of the Committee on Appropriations, which is entitled REP. ZAMORA (R.). Without it being an election “Investing in Inclusive Development.” Take note, year, we would be looking at about 6 percent, give or distinguished colleagues in the House, “inclusive” take a few decimals. That is correct, is it not? and “development,” which means that we want a development for everyone in this country. We want it REP. UNGAB. I do not want to make a good guess, to affect not only the richer, the more fortunate; and Your Honor, but if we base also on the same figures we want to include those sectors of the economy that for 2015-2016, I think that would be about that much. need more not just in law because they have so little in If the government will be able to collect and propel or life, but more from the government which is supposed catalyze further the economy, although it is only about to listen to them and respect in terms of development. 19 percent of the total GDP, the private sector will be We want to make sure that these are not just short-term able to respond if the government will do its job also, figures for the delight of economists and statisticians. Mr. Speaker. This is supposed to make a real dent in the poverty levels of this country. This is supposed to make a REP. ZAMORA (R.). The point I would like to real impact on the lives of the ordinary people of the make to my distinguished colleagues in the House of Philippines. 16 MONDAY, SEPTEMBER 28, 2015

Those are our points, distinguished colleague, SUSPENSION OF SESSION and we will make those points again in the next two weeks. REP. ORTEGA (F.). Mr. Speaker, I move that we I am grateful, Mr. Speaker, for giving the Minority suspend the session for a few minutes. Leader this chance and I am grateful to my distinguished colleague, the Chairman of the Committee on THE DEPUTY SPEAKER (Rep. Padilla). The Appropriations, for putting up a valiant defense of his session is suspended for a few minutes. budget. Thank you, Mr. Speaker. Thank you, Mr. Chairman. It was 3:03 p.m.

THE DEPUTY SPEAKER (Rep. Padilla). Well RESUMPTION OF SESSION taken, honorable Minority Leader, for that very scholarly and well-researched interpellation. At 3:18 p.m., the session was resumed.

REP. UNGAB. Thank you, Mr. Speaker. THE DEPUTY SPEAKER (Rep. Padilla). The session of the House is resumed. THE DEPUTY SPEAKER (Rep. Padilla). The The Dep. Majority Leader, the Hon. Francisco Dep. Majority Leader, the Honorable Ortega (F.), is Emmanuel R. Ortega III, is recognized. recognized. REP. ORTEGA (F.). Mr. Speaker, I move that REP. ORTEGA (F.). Mr. Speaker, before we we suspend the debate on the General Principles and proceed, may we acknowledge the presence of the Provisions of the proposed 2016 Budget. guests in the gallery. THE DEPUTY SPEAKER (Rep. Padilla). Is there THE DEPUTY SPEAKER (Rep. Padilla). Please any objection to the motion? (Silence) The Chair hears do so. none; the motion is approved.

REP. ORTEGA (F.). Mr. Speaker, we have here the Department of Finance, including its guests of Deputy Speaker Sergio A.F. Apostol from the attached agencies and corporations Second District of Leyte. They are the class of MM 505- Philippine Legislation and Management class REP. ORTEGA (F.). Mr. Speaker, I move that under the Master in Management Program of Leyte we open the period of sponsorship and debate on Normal University, Tacloban City headed by Dr. Ibarra the proposed budget of the Department of Finance, M. V. Villarino. including its attached agencies and corporations and for that purpose, I ask that we recognize its Sponsor. THE DEPUTY SPEAKER (Rep. Padilla). Please rise, the guests of the honorable Deputy Speaker THE DEPUTY SPEAKER (Rep. Padilla). Is there any Sergio Apostol. (Applause) Welcome to the House of objection to the motion to open the period of sponsorship Representatives. Thank you. and debate on the proposed budget of the Department of Finance, including its attached agencies and corporations? REP. ORTEGA (F.). Mr. Speaker, we have also (Silence) The Chair hears none; the motion is approved. the guests of Reps. Jorge T. Almonte, Angelina Angie The Dep. Majority Leader is recognized. L. Katoh, Barry Gutierrez and Henedina “Dina” R. Abad. We have guests here from AKBAYAN Youth, REP. ORTEGA (F.). Mr. Speaker, I move that FOI Youth Initiative Action for Economic Reforms, we recognize the Hon. Gabriel Luis R. Quisumbing Student Council Alliance of Philippines, Danish Social to defend and sponsor the budget of the Department Democratic Youth, APL Youth and they are Karla of Finance. May we also recognize the distinguished Yu, Carlo Cabatingan, Larah del Mundo, Rafaela Minority Leader, the Hon. Ronaldo B. Zamora, to David, Chamel Villar, EJ Talagtag, Bea Reyno, Emma interpellate the distinguished Sponsor. Vandkilde and Rasmus Beim, Mr. Speaker. THE DEPUTY SPEAKER (Rep. Padilla). The THE DEPUTY SPEAKER (Rep. Padilla). Please Gentleman from Cebu, the Hon. Gabriel Luis R. rise, the guests of the Honorable Almonte, the Honorable Quisumbing, shall take the floor to sponsor the budget Gutierrez and the honorable Deputy Speaker Abad. of the said Department and the Minority Leader will (Applause) Welcome to the House of Representatives. again take the floor to interpellate the Sponsor. Thank you. The Minority Leader is recognized. MONDAY, SEPTEMBER 28, 2015 17

REP. ZAMORA (R.). Thank you, Mr. Speaker. REP. QUISUMBING. That is correct, Mr. Speaker, Mr. Speaker, I wonder if my distinguished colleague Your Honor. from Cebu will entertain a number of questions on the budget of the Department of Finance. REP. ZAMORA (R.). Well, distinguished colleague, P30 billion is not a small amount, is it? What are we REP. QUISUMBING. It would be an honor, Mr. going to do with the P30 billion? Speaker, Your Honor. REP. QUISUMBING. For both the P20 billion in REP. ZAMORA (R.). Thank you, Mr. Speaker; and capital infusion for the LandBank and the P10 billion thank you, distinguished colleague. for the DBP, this will allow both banks to be compliant Distinguished colleague, I noticed that the with the DSIB, the Domestic Systematically Imported Department of Finance is one of those departments that Banks, yes, which will allow us to increase both the will have a large budget increase in 2016. The budget is loan capacity of the banks as well as allow it to protect expected to reach about twenty and a third billion pesos our banks, the LandBank and the DBP, against any next year which is about P5 billion or in percentage weather shocks in the banking sector, Mr. Speaker, terms, about a third higher than 2015. Is that correct, Your Honor. distinguished colleague? REP. ZAMORA (R.). Is the purpose to build REP. QUISUMBING. Yes, that is correct, Mr. up these two institutions separately, distinguished Speaker, Your Honor. colleague?

REP. ZAMORA (R.). Where does this money go, REP. QUISUMBING. At the moment, Mr. Speaker, distinguished colleague? Your Honor, yes, the intention of the Department of Finance is to build both financial institutions separately. REP. QUISUMBING. Mr. Speaker, Your Honor, There is a possible move to consolidate both banks, the bulk of the budget, P13.8 billion, will be due the Mr. Speaker, Your Honor, but that is still being various building projects under Capital Outlay for the contemplated. Department of Finance and attached agencies. REP. ZAMORA (R.). Distinguished colleague, REP. ZAMORA (R.). These are not local government if the Majority Leader, Cong. Neptali M. Gonzales buildings, these are national government buildings. For II, will remember, as I am sure the Speaker of the instance, an example, distinguished colleague, what are House of Representatives will remember, these two we building for P5 billion? Gentlemen together with the Minority Leader were given a presentation by both banks about the need to, in REP. QUISUMBING. Yes, for example, Mr. fact, integrate not just their operations but to integrate Speaker, under the Bureau of Internal Revenue, there and become just one institution. What has happened to is P3.155 billion for new buildings which will be that, distinguished colleague? In fact, we have a bill for located in San Fernando, Pampanga: Caloocan; Makati; a merger of the LandBank and the DBP. Is that now off Iloilo; Cebu; Tacloban; Butuan; Koronadal and Quezon the shelf, distinguished colleague? City. REP. QUISUMBING. Absolutely not, Mr. Speaker, REP. ZAMORA (R.). These are units of the Your Honor. The Department of Finance maintains that Department of Finance. These are not local government this merger is still very much a part of the pipeline and in units? the works at the moment, Mr. Speaker, Your Honor.

REP. QUISUMBING. That is correct, Mr. Speaker, REP. ZAMORA (R.). This is not likely to be passed Your Honor. before we adjourn?

REP. ZAMORA (R.). The figure, distinguished REP. QUISUMBING. The Department of Finance colleague, is net of another figure that I saw under the is pushing for the merger, Mr. Speaker, Your Honor, and item Budgetary Support to Government Corporations is working very closely with the agencies concerned to where there is a proposal to allot P20 billion to the hopefully get it off the ground as soon as possible. LandBank and another P10 billion for the Development Bank of the Philippines, a figure which is even larger REP. ZAMORA (R.). I wonder, distinguished than the budget for the main Department of Finance. Is colleague, we are not trying to make them compliant to that correct, distinguished colleague? the Basel III rules on capital ratios, are we? Or are we? 18 MONDAY, SEPTEMBER 28, 2015

REP. QUISUMBING. We are, Mr. Speaker, Your REP. ZAMORA (R.). Distinguished colleague, Honor. does the sponsoring Committee now have any information of the latest capital ratios of LandBank REP. ZAMORA (R.). We are trying to make it and DBP? compliant? REP. QUISUMBING. For the LandBank, for the REP. QUISUMBING. Yes, Mr. Speaker, Your CET 1, Mr. Speaker, Your Honor, is 8.96 percent; for Honor. Tier 1, it is 8.96 percent as well; and the CAR is 12.07 percent, Mr. Speaker, Your Honor. REP. ZAMORA (R.). Basel III, I am not sure if there are people who want to pursue this point, REP. ZAMORA (R.). We are looking at Basel III. but under Basel III, if I remember, having been in a In fact, these banks are already fully compliant, are they few banks myself, banks are advised to meet certain not, distinguished colleague? capital ratios. For instance, a capital adequacy ratio of a minimum 8 percent, that is part of Basel III, is REP. QUISUMBING. No, Mr. Speaker, Your it not? Honor. Effective 1 January 2017, they are going to be 11 percent, which our current levels of 2015 fall below. REP. QUISUMBING. Yes, Mr. Speaker, Your Honor. REP. ZAMORA (R.). That is a BSP requirement, that is not a Basel III requirement, is it distinguished REP. ZAMORA (R.). A Tier 1 capital ratio of 6 colleague? percent? REP. QUISUMBING. It is a BSP regulation, Mr. REP. QUISUMBING. Mr. Speaker, Your Honor, Speaker, Your Honor. under the program, we will be required to have a minimum capital adequacy of Tier 1 ratio of 11 REP. ZAMORA (R.). Is the P30 billion figure in the percent. budget intended to make it compliant, no longer with Basel III, but with BSP circulars or requirements? REP. ZAMORA (R.). There is a third capital ratio requirement, a common equity Tier 1 capital, REP. QUISUMBING. Mr. Speaker, Your Honor, CET (Common Equity Tier) 1 ratio of 4.5 percent. for the LandBank, the projections are, if we infuse the These three capital ratios are not really required, P20-billion capital as planned, it will put our CET1 at but banks in the Philippines are advised to meet 12.98 percent, our Tier 1 at 12.98 percent, and our CAR the following ratios, are they not, distinguished at 13.86 percent, Mr. Speaker, Your Honor, above the colleague? requirement of the BSP.

REP. QUISUMBING. Yes, Mr. Speaker, Your REP. ZAMORA (R.). In fact, they are ahead the Honor. requirements of both BSP and Basel III.

REP. ZAMORA (R.). Of course, for my colleagues REP. QUISUMBING. Yes, Mr. Speaker, Your in the House of Representatives, these ratios indicate Honor. how well a bank can absorb losses especially during times of financial stress. That is correct, is it not, REP. ZAMORA (R.). In both banks? distinguished colleague? REP. QUISUMBING. Yes, Mr. Speaker, Your REP. QUISUMBING. Yes, Mr. Speaker, Your Honor. Honor. For the BSP, with the P10 billion capital infusion, it will put us at 11.95 percent for CET1, 11.95 REP. ZAMORA (R.). In fact, as my distinguished percent for Tier 1, and 15.95 percent for CAR, which colleague has mentioned, in fact, Bangko Sentral has will put both banks, Mr. Speaker, Your Honor, above set higher requirements for these capital ratios. I think the requirements set by the BSP. he mentioned 10 percent or 11 percent CAR (Capital Adequacy Requirements), 7.5 percent Tier 1 capital REP. ZAMORA (R.). What about the latest ratio and 6 percent of CET1 ratio. financial reports of these two institutions, DBP and LandBank? How would my distinguished colleague REP. QUISUMBING. That is correct, Mr. Speaker, put it? Are they healthy? Are they poorly situated? Your Honor. What are they? MONDAY, SEPTEMBER 28, 2015 19

REP. QUISUMBING. Both banks, both financial that are also tasked with helping out small and medium institutions, Mr. Speaker, Your Honor, are in good enterprises in our country. shape; they are healthy. REP. ZAMORA (R.). Small and medium enterprises REP. ZAMORA (R.). Perhaps, we do not need only, distinguished colleague. capital infusions, do we, distinguished colleague? REP. QUISUMBING. Among others, Mr. Speaker, REP. QUISUMBING. Mr. Speaker, Your Honor, Your Honor. For example, in DBP, the loans are also if we are able to infuse the capital and we are able to extended to agrarian reform and agricultural loans surpass the standards set by their requirements, it would and microenterprises as well as small and medium allow us to borrow cheaper, Mr. Speaker. enterprises.

REP. ZAMORA (R.). It will… At his juncture, Deputy Speaker Padilla relinquished the Chair to Deputy Speaker Sergio A.F. Apostol. REP. QUISUMBING. Allow us to borrow at a cheaper rate, Mr. Speaker, Your Honor. REP. ZAMORA (R.). No, the reason I am asking these questions is to presage what the Sr. Deputy REP. ZAMORA (R.). Yes, but P30 billion is a Minority Leader will be asking you, which is about large amount of money and you can use that to fund the proposed takeover of MRT 3 where, at least, one approximately one-half of your requirements for of these institutions is financially involved. This is not CCT for instance. You can use that to fund several connected with that, is it, distinguished colleague? departments of the government. You can use that for any number of reasons or purposes, and you do not REP. QUISUMBING. No, Mr. Speaker, Your really end up—if you do that, give LandBank or DBP Honor. these amounts, you do not end up with banks that are doing poorly. That is correct, is it not, distinguished REP. ZAMORA (R.). In short, these amounts are colleague? intended for, as my distinguished colleague, has said, small and medium enterprises ... REP. QUISUMBING. Mr. Speaker, Your Honor, it is the intent of the LandBank and the DBP to be able REP. QUISUMBING. Yes, Mr. Speaker. to increase their portfolio to lend to small and medium enterprises, which will allow for greater growth in the REP. ZAMORA (R.). …only, distinguished long term. colleague.

REP. ZAMORA (R.). Let me give you some REP. QUISUMBING. Not only, but primarily, Mr. figures, distinguished colleague. In the first quarter Speaker, Your Honor. of 2015, LandBank had standing total assets of P1.1. trillion and DBP had P464 billion. In terms of liquid REP. ZAMORA (R.). Primarily, but certainly not assets, LandBank was third with liquid assets worth to MRT 3. P561 billion and DPB was sixth with P194 billion of liquid assets. These figures are fromBusiness World in REP. QUISUMBING. Certainly not, Mr. Speaker, its review of the country’s universal banks. In fact, the Your Honor. same figures show that LandBank was number four in the entire country with respect to total assets, and DBP REP. ZAMORA (R.). Thank you. was number eight in terms of total assets. Distinguished colleague, I noticed that the Office In short, I would like to know, distinguished of the Secretary of the Department of Finance is going colleague, if we do not need to comply with Basel III, to get a substantial increase in its budget In 2015, it because even without this infusion they will still comply was P926.1 million; in 2016, P2.6118 billion. That is with Basel III, what are we putting the money into just an increase of about 180-plus percent. Where does this to allow lower borrowing rates? go, Mr. Speaker?

REP. QUISUMBING. Mr. Speaker, Your Honor, REP. QUISUMBING. One of the largest budgetary the ability of the LandBank and the DBP to be able to allocations, Mr. Speaker, Your Honor, is for the allocation lend at friendlier rates compared to other banks, will in Capital Outlay of P1.8 billion for the construction of redound to the benefit of those that seek to take out loans a 20-storey Department of Finance—a new 20-storey from these financial institutions, these being institutions Department of Finance building which will house the 20 MONDAY, SEPTEMBER 28, 2015

Department of Finance, the Bureau of Treasury, the REP. ZAMORA (R.). By how much? BIR and the BOC offices of the Commissioners, Mr. Speaker, Your Honor. REP. QUISUMBING. Mr. Speaker, Your Honor, it is P30.9 billion below target. REP. ZAMORA (R.). Where will this be, Mr. Speaker? REP. ZAMORA (R.). Percentage-wise, Mr. Speaker. REP. QUISUMBING. Beside the current DOF building, Mr. Speaker, Your Honor. REP. QUISUMBING. Percentage-wise, Mr. Speaker, Your Honor—I am sorry. Percentage-wise, it REP. ZAMORA (R.). Beside the present DOF is 13.2 percent below target. building which used to be part of the BSP? REP. ZAMORA (R.). So, why are we reducing REP. QUISUMBING. That is correct, Mr. Speaker, further the budget of the Bureau of Customs? Is that Your Honor. punishment for their failure to meet targets?

REP. ZAMORA (R.). I noticed, Mr. Speaker, REP. QUISUMBING. This is based, Mr. that in fact the Bureau of Customs loses some money Speaker, Your Honor—the decrease in the budget in this budget compared to 2015. Why is this, Mr. is based on projects that are still currently ongoing Speaker? The amount I have here is P279 million. It is and the absorptive capacity of the Bureau is such a P279-million reduction in the budget of the Bureau that they cannot accommodate the new projects as of Customs, comparing 2016 to 2015. of now.

REP. QUISUMBING. Mr. Speaker, Your Honor, REP. ZAMORA (R.). I do not know, distinguished there is a marked decrease in the amount of Capital colleague. I am a simple Congressman about these Outlay for the Bureau of Internal Revenue for projects things but I would have thought that if you wanted already completed in 2015. more performance from the Bureau of Customs, you do not necessarily want to punish them. You do not REP. ZAMORA (R.). What about the Bureau of necessarily want to reduce their budget, especially those Customs? amounts that may correspond to their anti-smuggling operations. You may not want to do anything about their REP. QUISUMBING. Sorry, Mr. Speaker, Your budget except, in fact, to increase the amounts that you Honor, that is the Bureau of Customs. The new regular are allocating in the national budget, or am I wrong, appropriations are decreased in 2016 due to the distinguished colleague? completion of some Capital Outlay programs. REP. QUISUMBING. Mr. Speaker, Your Honor, REP. ZAMORA (R.). Can I get a picture, Mr. the lowered appropriations for the Bureau of Customs Speaker, of the Bureau of Customs collections for this for 2016 certainly is not a punishment but it is due to year? If projections are available in the medium term, the fact that the Bureau of Customs is still currently if possible, let us say, over the next six months, that absorbing projects from 2015 that are going to continue should already include your early portions of the 2016 to be implemented in 2016. It is not a punishment, so to Budget. speak, but merely the continuation of appropriations that I am asking these questions, Mr. Speaker, just to had already been allocated to the Bureau, Mr. Speaker, find out what the Department of Finance thinks about Your Honor. Customs collection. Will they be enough to meet national government expectations? REP. ZAMORA (R.). You know, percentage- wise, distinguished colleague, these are very REP. QUISUMBING. Mr. Speaker, Your Honor, as significant reductions. I am uncertain at this of July 2015, the current performance of the Bureau of point whether we should characterize this as just Customs stands roughly at P34.9 billion, Mr. Speaker, completing projects or whether we are showing Your Honor. that, perhaps, something more has to be done. One of the things I noticed is that, perhaps, too many REP. ZAMORA (R.). Is that below or above targets? retired military personnel are joining the Bureau of Customs and I am uncertain whether this is good or REP. QUISUMBING. That is below target, Mr. this is bad. How does my distinguished colleague Speaker, Your Honor. react to that? MONDAY, SEPTEMBER 28, 2015 21

REP. QUISUMBING. Mr. Speaker, Your Honor, REP. QUISUMBING. Mr. Speaker, Your Honor, it the influx of former military personnel in the Bureau is the contention of the Bureau of Customs that while of Customs has resolved, has helped tremendously the the military background of these personnel is definitely performance of the Bureau, especially in the case of an asset, it is their personal capacity and their abilities enforcement and intelligence. They have been a credit that are the primary qualification for these individuals to the agency. to occupy these posts.

REP. ZAMORA (R.). Is my distinguished colleague REP. ZAMORA (R.). Well, let me go to the Bureau telling me that, in fact, these retired military officers of Internal Revenue because I noticed that it has a large go to certain sections of the Bureau of Customs, they increase in its budget. What amounts are we talking go to mainly intelligence work? They do not go into about? From 2015 of about P800 million, how much collections, do they? Or do they? are we looking at in 2016?

REP. QUISUMBING. Mr. Speaker, Your Honor, REP. QUISUMBING. For the BIR, Mr. Speaker? some former members of the military are involved in collections as well. REP. ZAMORA (R.). Yes, for the BIR.

REP. ZAMORA (R.). So, some of them are, in fact, REP. QUISUMBING. The primary increase for the collectors? budget of the BIR for 2016 falls under Capital Outlay for the acquisition and construction of new regional REP. QUISUMBING. Yes, Mr. Speaker, Your offices and buildings. Honor. REP. ZAMORA (R.). So how much are we talking REP. ZAMORA (R.). At what level, distinguished about? colleague, districts, regions? REP. QUISUMBING. Roughly, P3.15 billion REP. QUISUMBING. Yes, some district collectors, for that particular project, Mr. Speaker, Your Mr. Speaker, Your Honor. Honor.

REP. ZAMORA (R.). Ports? REP. ZAMORA (R.). Giving us a total, for 2016 of? REP. QUISUMBING. Yes, Mr. Speaker, Your Honor. REP. QUISUMBING. New General Appropriations, Mr. Speaker, Your Honor, of P10.58 billion. REP. ZAMORA (R.). So, how many are we talking about? Have I stumbled on something that is REP. ZAMORA (R.). I am sorry? important? REP. QUISUMBING. P10.58 billion, Mr. Speaker, REP. QUISUMBING. Nine, Mr. Speaker, out of 17 Your Honor. districts are helmed by former military personnel, Mr. Speaker, Your Honor. REP. ZAMORA (R.). From how much in 2015?

REP. ZAMORA (R.). Nine out of 17 is more than REP. QUISUMBING. P7.25 billion, Mr. Speaker, 50 percent, distinguished colleague. I wonder what Your Honor. skills they teach in PMA that will now give a retired military officer the training that he will need to collect At this juncture, Deputy Speaker Apostol relinquished more money. the Chair to Deputy Speaker Carlos M. Padilla. What is it, distinguished colleague? Are they more disciplined, are they more courageous? What is it REP. ZAMORA (R.). How much is that in about retired military officers that the Bureau seems to percentage terms? have a penchant for hiring them after they retire? Are we seeing a new nesting ground for retired military REP. QUISUMBING. An increase of 46 percent, officers? It used to be that it was only the Department Mr. Speaker, Your Honor. of Transportation and Communications or DOTC. Have we found a new retirement home in the Bureau REP. ZAMORA (R.). Forty-six percent, while the of Customs for these retired military personnel? BOC loses 13 or so percent? 22 MONDAY, SEPTEMBER 28, 2015

REP. QUISUMBING. Nine percent, Mr. Speaker, At this juncture, Deputy Speaker Padilla relinquished Your Honor. the Chair to Deputy Speaker Roberto V. Puno.

REP. ZAMORA (R.). Nine percent, and the BIR Thank you, Mr. Speaker, and thank you, distinguished gets 40-plus percent. colleague.

REP. QUISUMBING. Forty-six percent, Mr. REP. QUISUMBING. Thank you, Your Honor. Speaker, Your Honor. THE DEPUTY SPEAKER (Rep. Puno). The Dep. REP. ZAMORA (R.). Forty-six percent, and yet, Majority Leader is recognized. from 2010 up to this month, data will show that both the BIR and BOC had been unable to meet their set SUSPENSION OF SESSION revenue targets. Who are we to blame? Are we to blame these agencies or are we to blame the original targets? REP. ORTEGA (F.). Mr. Speaker, I move that we suspend the session for a few minutes. REP. QUISUMBING. Mr. Speaker, Your Honor, the nominal GDP growth has been higher than—the THE DEPUTY SPEAKER (Rep. Puno). The collections have been higher than the nominal GDP session is suspended. growth over that period. It was 3:57 p.m. REP. ZAMORA (R.). Percentage-wise, distinguished colleague, according to our figures—these are, of RESUMPTION OF SESSION course, taken from the figures provided by the Sponsor and Committee—the shortfall for the first six months At 4:01 p.m., the session was resumed. of 2015 or this year ending a month ago, for the BIR, the shortfall is 13 percent and for the BOC, it THE DEPUTY SPEAKER (Rep. Puno). The is 13.7 percent. Both of these are not sterling figures, session is resumed. distinguished colleague, why are we giving a lot of The Dep. Majority Leader is recognized. money to one and a lot less money to the other for the same performance, percentage-wise? REP. ORTEGA (F.). Mr. Speaker, may we acknowledge the presence of our guests in the gallery. REP. QUISUMBING. Mr. Speaker, Your Honor, for the BIR, the Department feels that by increasing its THE DEPUTY SPEAKER (Rep. Puno). Please capacity and visibility in certain areas, they will be able proceed. to perform even better than before, by increasing their presence as well in several regions. With the Bureau of REP. ORTEGA (F.). We have here the guests Customs—like what we mentioned earlier, there is no of the Lady from the Fourth District of Quezon, the punishment. There is a decrease in the appropriations Hon. Angelina “Helen” D.L. Tan, M.D. We have here for the Bureau but that is due to current projects that barangay captains of Calauag, province of Quezon, are ongoing in the Bureau of Customs that will help headed by ABC President Noel Panganiban. We also to address the same problems that the BIR is currently have the councilors of the said municipality, Calauag, facing, Mr. Speaker, Your Honor. Quezon, headed by Councilor Leah de la Cruz; and the district officers of the office of Cong. Helen Tan headed REP. ZAMORA (R.). Distinguished colleague, by Jimmy Nicholas, Mr. Speaker. you will agree with me that when you have shortfalls of about 13 percent for both agencies, there must THE DEPUTY SPEAKER (Rep. Puno). We thank be a way of improving, across both agencies, their our visitors from Quezon. (Applause) Welcome to the performance in collections because that is the only House of Representatives. Thank you for your visit. reason they are in existence—to collect more money for our government. SUSPENSION OF SESSION Distinguished colleague, I suggest that the sponsoring Committee takes a look at how it will REP. ORTEGA (F.). May I move for suspension of address these issues. I am uncertain, at this point, how the session for a few minutes, Mr. Speaker. to do it and I have my thoughts on this issue, but now, there are a number of individuals from the Minority THE DEPUTY SPEAKER (Rep. Puno). The who will ask even more questions than I will. session is suspended. MONDAY, SEPTEMBER 28, 2015 23

It was 4:02 p.m. National Budget. Do you still recall, Mr. Sponsor, Mr. Speaker, the budget that we approved in the 2014 RESUMPTION OF SESSION National Budget?

At 4:04 p.m., the session was resumed. REP. QUISUMBING. The total national budget, Mr. Speaker, Your Honor? It was P2.019 trillion, Mr. THE DEPUTY SPEAKER (Rep. Puno). The Speaker, Your Honor, in 2014. session is resumed. The Dep. Majority Leader is recognized. REP. BRAVO (A.). So, there was an approval of P2.09... REP. ORTEGA (F.). Mr. Speaker, I move that we recognize the Gentleman from COOP-NATCCO Party- REP. QUISUMBING. Trillion, Mr. Speaker. List, the Hon. Anthony M. Bravo, to interpellate the distinguished Sponsor. REP. BRAVO (A.). For the 2014?

THE DEPUTY SPEAKER (Rep. Puno). The REP. QUISUMBING. Yes, Mr. Speaker, Your Honorable Bravo is recognized for his interpellation. Honor.

REP. BRAVO (A.). Thank you, Mr. Speaker. REP. BRAVO (A.). May I bring to your attention, Will the distinguished Sponsor entertain some Mr. Speaker, distinguished Sponsor, in the General interpellations from this Representation? Appropriations Act of 2014, Republic Act No. 10633, for the different agencies, there appears REP. QUISUMBING. With pleasure, Mr. Speaker, P1,186,000,029,690 to be exact. Am I correct, Mr. Your Honor. Sponsor, Mr. Speaker?

REP. BRAVO (A.). Thank you, Mr. Speaker, REP. QUISUMBING. Could you restate the distinguished colleague. question, Mr. Speaker, Your Honor? Good afternoon to everyone. May I be informed, Mr. Speaker, distinguished colleague, how much is the REP. BRAVO (A.). These are the consolidated total proposed budget for 2016? budgets for the departments/agencies in 2014 amounting to P1, 186,000,029, 690. Am I correct with my REP. QUISUMBING. For which particular agency, figure? Mr. Speaker, Your Honor? For the entire Department of Finance? REP. QUISUMBING. One moment, Mr. Speaker, Your Honor. Mr. Speaker, Your Honor, in 2014, REP. BRAVO (A.). Yes, Mr. Speaker. the total budget for new appropriations for the consolidated agencies of the government stood at REP. QUISUMBING. For the entire Department of P1.640 trillion. For 2016, the consolidated budget Finance and its attached agencies, Mr. Speaker, Your per department is P1.218 trillion, Mr. Speaker, Your Honor, the total Budget for 2016 stands at P18.867 Honor. billion. REP. BRAVO (A.). One point two? REP. BRAVO (A.). What about the total national budget for this country? REP. QUISUMBING. P1.218 trillion, Mr. Speaker, Your Honor. REP. QUISUMBING. Roughly, P3 trillion, Mr. Speaker, Your Honor. REP. BRAVO (A.). I am asking this, Mr. Speaker, distinguished Sponsor, because it seems REP. BRAVO (A.). So, the proposed national budget that there are discrepancies on the figure—I is P3 trillion, Mr. Speaker, distinguished Sponsor. found out— to what is being presented, because as reflected in the National Expenditure Program REP. QUISUMBING. Yes, Mr. Speaker, Your or in the BESF, I mean, there is in the actual, in Honor. 2014, the consolidated departments/agencies has P1,183,000,029,690 while the Special Purpose REP. BRAVO (A.). Thank you for that answer. Fund amounting to P293,000,549,290 and the total Before I proceed to 2016, may I start with the 2014 appropriations was P1,477,078,990,000. 24 MONDAY, SEPTEMBER 28, 2015

As with the NEP summary printed in the REP. BRAVO (A.). Yes, because that is supposed Appropriations and Obligations, reflected there is a to be equal. Why is there such a discrepancy? Will new General Appropriations, P1,000,480,483,442. you please explain to this Representation, Mr. When I summed it up, it appears that there is a decreased Speaker? discrepancy of P15,288,639,000. I do not know how we are going to reconcile this. REP. QUISUMBING. Yes, Mr. Speaker. One moment, we are checking first the NEP of REP. QUISUMBING. Mr. Speaker, to get us on the 2014. same page, we can provide, Mr. Speaker, the Gentleman with a copy of the reconciliation statement that was REP. BRAVO (A.). Yes, Mr. Speaker. provided by the Committee. REP. QUISUMBING. Mr. Speaker, there really REP. BRAVO (A.). I will leave it at that for the tends to be some difference between the NEP, as moment, Mr. Speaker, distinguished Sponsor, but I submitted by the Office of the President and the DBM would like to—I will appreciate it further if we can and the GAA, the General Appropriations Act, as it reconcile the figure because this is a huge figure, as I is final, since there will be some amendments and found it. some changes to the budget once it goes through the Let me proceed, Mr. Speaker, distinguished legislative process, Mr. Speaker. Sponsor. To cite an example that there are some discrepancies on the report vis-à-vis or against the REP. BRAVO (A). Mr. Speaker, distinguished General Appropriations Act that we approved in Sponsor, this is already the actual report that was 2014, let me cite an example agency, the Department rendered to this august Body. This is the first time that of Agriculture. In Republic Act No. 10633, which is I have seen such a discrepancy. This did not happen the General Appropriations Act of 2014, we approved before, so why is it happening now, Mr. Speaker, a budget of P68,598,751,000. Am I correct in my distinguished Sponsor? figure? REP. QUISUMBING. Is the Gentleman speaking, REP. QUISUMBING. One moment, Mr. Speaker, Mr. Speaker, of the disbursements for 2014 or the as we check first the figures that were provided to us difference between the GAA and the NEP for 2014 for by the Committee. that particular agency?

REP. BRAVO (A.). Yes, Mr. Speaker. REP. BRAVO (A.). Yes, Mr. Speaker.

REP. QUISUMBING. Mr. Speaker, the Gentleman REP. QUISUMBING. The GAA and the NEP, Mr. is correct. For the new appropriations in 2014 for Speaker, or the actual disbursements? the Department of Agriculture, the figures reflect P68,596,000, Mr. Speaker. REP. BRAVO (A.). What was reflected in the NEP, Mr. Speaker, and the GAA. REP. BRAVO (A.). Please repeat, Mr. Speaker. It is P68 billion. Am I correct? REP. QUISUMBING. In the GAA, Mr. Speaker, as previously stated, there will be some changes in several REP. QUISUMBING. It is P68 billion, Mr. items since the Congress is empowered to make changes Speaker, … to the NEP, as submitted by the Office of the President and the DBM. This will account for differences in figure REP. BRAVO (A.). Five hundred… between the NEP and the final version of the GAA as approved, Mr. Speaker. REP. QUISUMBING. …and P596 million, Mr. Speaker. REP. BRAVO (A.). So, what the Gentleman is telling us, Mr. Speaker, distinguished Sponsor, is REP. BRAVO (A.). …and 751 thousand. But that in the actual report of the DBM for 2014 vis- there appears in the actual General Appropriations, as à-vis the approved GAA in 2014, there is always a reported, what appears is P68,541,936,000. Again, there tendency that it will not tally. Am I correct in my is a discrepancy in the figures. understanding?

REP. QUISUMBING. This is based on the NEP, REP. QUISUMBING. In some cases, Mr. Speaker, Mr. Speaker. but not all. MONDAY, SEPTEMBER 28, 2015 25

REP. BRAVO (A.). Because as I have said, I have THE DEPUTY SPEAKER (Rep. Puno). The not seen this in the figures of the budget deliberations, session is resumed. and in fact, in the report, only now. That is why I am uncertain of what is happening. REP. BRAVO (A.). Mr. Speaker, distinquished Be that as it may, Mr. Speaker, distinguished colleague, it appears that there are several discrepancies Sponsor, I can cite some other discrepancies so that we in the figures that I have been citing and we need to will be enlightened on my findings. Under the Special reconcile in some aspects. So I would like to request Purpose Fund, the Budgetary Support to Government the distinguished Sponsor to give me some time so that Corporations, in the General Appropriations Act we can reconcile and I will reserve my questions in the of 2014, we approved P46,255,000,210, but in the succeeding presentation. new general appropriations for 2014, the report is P45,350,718,000, which is another discrepancy, while REP. QUISUMBING. We will comply, Mr. the under the Unprogrammed Fund, from P138 billion, Speaker. the report says P11.8 billion. So, this is not the first—what is this—discrepancy. REP. BRAVO (A.). Thank you, Mr. Speaker. Thank I only cited four just to enlighten us that, indeed, there you, distinguished Sponsor. are discrepancies in the presented report vis-à-vis the General Appropriations Act that we approved in REP. QUISUMBING. Thank you, Mr. Speaker. 2014. Let me proceed further, Mr. Speaker, distinguished THE DEPUTY SPEAKER (Rep. Puno). The Dep. Sponsor. In the course of budgetary allocation and Majority Leader is recognized. finality on the approval of the expenditure for 2014, while in the department or agencies, there was about REP. BONDOC. Mr. Speaker, I move for the P1.1 trillion, there was an Automatic Appropriation of recognition of the honorable Gentleman from the Party- P66.4 billion. Am I correct with my figure? List ABAKADA, the Hon. Jonathan A. Dela Cruz, for his chance to interpellate the honorable Sponsor. REP. QUISUMBING. Mr. Speaker, the Gentleman I so move, Mr. Speaker. is referring to the budget that the DBM proposed, … THE DEPUTY SPEAKER (Rep. Puno). The REP. BRAVO (A.). Consolidated agencies for Gentleman from the Party-List ABAKADA, the 2014. Hon. Jonathan Dela Cruz, is recognized for his interpellation. REP. QUISUMBING. … not the Department of Finance, which we are currently taking up, Mr. REP. DELA CRUZ. Thank you very much, Mr. Speaker? Speaker. Before I start this interpellation, Mr. Speaker, I REP. BRAVO (A.). The total budget for 2014. just want to make it of record that we are continuing with these deliberations even without a quorum, REP. QUISUMBING. If you will give us a moment, but nonetheless, Mr. Speaker, in view of the critical Mr. Speaker, we will confirm since this Representation importance of discussing the budget, we are, for the was tasked to defend today the budget of the Department moment, not questioning the quorum, Mr. Speaker, of Finance, Mr. Speaker, Your Honor. but I just want it to be of record that we are working on the basis of this seeming lack of interest on the part SUSPENSION OF SESSION of many of our Members to be part of the deliberations on the national budget, which is very critical. This REP. QUISUMBING. May we request for a few was also the situation, Mr. Speaker, last Wednesday minutes suspension of the session, Mr. Speaker. when we discussed two very critical bills, the Customs Modernization Act as well as the amendment to the THE DEPUTY SPEAKER (Rep. Puno). The Bangko Sentral Act. session is suspended. Again, I was just wondering if there is a way by which we can take a second look at all of these bills, It was 4:19 p.m. Mr. Speaker, including the General Appropriations Act for 2016, because as I mentioned, Mr. Speaker, these RESUMPTION OF SESSION are very, very critical undertakings and it will be a pity if we are not going to discuss these matters in as proper At 4:20 p.m., the session was resumed. and responsible a manner as possible. But as I said, Mr. 26 MONDAY, SEPTEMBER 28, 2015

Speaker, we will leave that issue in the meantime and SUSPENSION OF SESSION we will continue, as requested by the Majority, with the interpellation. If the distinguished Speaker and THE DEPUTY SPEAKER (Rep. Puno). The distinguished Sponsor will agree, we will continue with session is suspended. this because we have been questioned, Mr. Speaker. Many of our colleagues, even from the Autonomous It was 4:26 p.m. Region in Muslim Mindanao, have been telling us, why is it that if we discuss the issue of the BBL, Bangsamoro RESUMPTION OF SESSION Basic Law, there is always a question of quorum and now we, the independent Minority, are not questioning At 4:28 p.m., the session was resumed. the quorum? So I mentioned to them, Mr. Speaker, that we are giving way in the meantime because this is the THE DEPUTY SPEAKER (Rep. Puno). The first day of discussions on the budget and, with the session is resumed. indulgence of our colleagues from the Autonomous Region in Muslim Mindanao, we will continue with REP. BONDOC. Mr. Speaker, we gladly yield the this; but as I mentioned, Mr. Speaker, there is always floor to the wisdom and experience of the Gentleman a time for everything and the time for questioning the from ABAKADA, the Honorable Dela Cruz. quorum may come sooner rather than later. In any event, with the indulgence of the Speaker THE DEPUTY SPEAKER (Rep. Puno). The and with the permission of the distinguished Sponsor, I Honorable Dela Cruz may proceed. will now request the consideration of certain questions that we would like to ask of the distinguished Sponsor. REP. DELA CRUZ. Mr. Speaker, as I said earlier, My understanding, Mr. Speaker, is that we are going despite the lack of quorum and the assurance that to combine discussions on the General Principles as there will be a roll call at some appropriate time, if the well as the budget of the Department of Finance. Is distinguished Sponsor will now yield, I will start the that correct? interpellation.

THE DEPUTY SPEAKER (Rep. Puno). The Dep. REP. QUISUMBING. I thank the Honorable Dela Majority Leader may respond. Cruz for his graciousness, and we are ready to answer questions, Mr. Speaker. REP. BONDOC. With the indulgence of the honorable Gentleman from ABAKADA, we thank REP. DELA CRUZ. If the distinguished Sponsor him for his indulgence; we cite his erudite wisdom will allow, Mr. Speaker, before I dwell on the budget regarding the discussion of the budget. But on behalf of the Department of Finance, and the performance of of the Members of this august Chamber, may I state our revenue-generating agencies, Mr. Speaker, I would that it is not their lack of interest that compels their just like to put it on record, and if the distinguished absence, Mr. Speaker. It is the fact that the Honorable Sponsor is so prepared to answer these questions, I will Quisumbing has well and truly defended the budget appreciate it if he can enlighten us on certain issues that of this agency in the committee hearings, and many have everything to do, Mr. Speaker, not only with the of our colleagues have registered their satisfaction budget of the Department of Finance, but with the entire regarding their questions regarding the Department national budget, Mr. Speaker. And I am referring, Mr. of Finance. And we yield the floor to the honorable Speaker, to the reconciliation that we requested during Gentleman from ABAKADA for his questions and for the discussions and deliberations on the 2015 budget his clarifications. regarding the usage of the Disbursement Acceleration So manifested, Mr. Speaker. Program Funds, as well as the Priority Development Assistance Fund. Will the distinguished Sponsor yield to THE DEPUTY SPEAKER (Rep. Puno). The a few questions regarding the usage of these funds, Mr. manifestation is noted. Speaker, as well as the Commission on Audit findings on these particular funds? REP. DELA CRUZ. I thank the Dep. Majority Leader for coming out with that suggestion. But if he REP. QUISUMBING. Mr. Speaker, Your Honor, insists that there is no need anymore because many that discussion is better suited to the General Principles of our Members have already been satisfied with the and for the DBM. This humble Representation is tasked observations on the Department of Finance’s budget, I today to stand to defend the budget of the Department will now ask, if it is possible, for us to call for a quorum, of Finance and its attached agencies only, Mr. Speaker, if that is the insistence of the Dep. Majority Leader. Your Honor. MONDAY, SEPTEMBER 28, 2015 27

REP. DELA CRUZ. This has everything to do, We can—we will be happy, Mr. Speaker, Your Honor, Mr. Speaker, with the budget not only of the national to take up the concern of the distinguished Gentleman government but of the Department of Finance as with the DBM and the DBCC. well, because I would like to find out, Mr. Speaker, whatever happened to all of these allocated funds REP. DELA CRUZ. Mr. Speaker, I hope the that are still available. Is that not part of the revenues distinguished Sponsor is listening, because I want to that should be included in the revenue stream of the find out how much do we really have in terms of actual government, Mr. Speaker, because these are unspent resources available in the government, because if you funds, Mr. Speaker? We just want to find out, are these are talking about resources of the government, we not included in the detailed discussion regarding the should include, Mr. Speaker, all the available funds revenues? What are the available revenues for the that are now in the hands of government agencies, government, Mr. Speaker? Because if there are savings whether these are government-owned or -controlled in the form of unused funds from various sources, corporations, or national government agencies, Mr. Mr. Speaker, these should be included in the revenue Speaker, because there must be a matrix; there must stream of the government. be a way by which we can reconcile the available funds of the government, because why are we asking REP. QUISUMBING. Mr. Speaker, Your Honor, for more funds if there are already available funds again, we are here to discuss the budget of the in certain agencies, Mr. Speaker? That is the reason Department of Finance and its attached agencies, we have to find out how much is available on a per- as well as the revenue-generating agencies that fall agency basis, if that is possible. If that is not possible, under the umbrella of the Department of Finance Mr. Speaker, I want to know why that is not possible. family. Do we not have any accounting of these funds, Mr. Speaker? The National Treasury should be able to REP. DELA CRUZ. I beg to disagree, Mr. let us know. Speaker. If you are talking about the revenues that are available for the use of the government, Mr. Speaker, REP. QUISUMBING. Mr. Speaker, Your Honor, we distinguished Sponsor, I think we should include the are ready to answer any questions pertaining to available unutilized budget of the government whether these revenues that fall under the umbrella of the Department are coming from savings or whether these are coming of Finance family. from balances that are available in the books of various agencies, Mr. Speaker. This should be included in the REP. DELA CRUZ. If that is the case, Mr. revenues that are being considered for purposes of this Speaker, I want to know from the distinguished budget, Mr. Speaker. Sponsor what is his definition of unobligated funds I am, in particular, for example, Mr. Speaker—I or funds that are available for use of the government just want to update the distinguished Gentleman about whether these are lodged in the individual agencies the audit report of the DAP fund that was received themselves or lodged in the Department of Budget. by the Presidential Communications Operations I want to know because these are revenues accruing Office totaling P342 million, Mr. Speaker, that was to the government, Mr. Speaker, and we want to find transferred to the Philippine television network, and out whether these revenues are going to be used for according to the information coming from the COA, the specific purposes of the government agencies Mr. Speaker, this particular fund was not used. So, if where these are lodged or these are going to be lodged this particular fund was not used in 2014 or 2015, Mr. somewhere in some financial institutions where they Speaker, then we should have a zero budget for the are earning interests. We want to find out, Mr. Speaker, PCOO. That is what I am trying to advise, Mr. Speaker, because these are revenues. I beg to disagree with distinguished Sponsor. There must be an accounting of the distinguished Sponsor, Mr. Speaker, that these all the available savings and unobligated funds that are are not revenues and that we are only talking about available in the government right now. And I want to revenues that are available in terms of the generation know, Mr. Speaker, distinguished Sponsor, how much being undertaken by the revenue-generating agencies. really do we have in terms of savings on a per-agency These are revenues accruing to the government. I want basis, if it is possible? to know, Mr. Speaker, if the distinguished Sponsor is now telling us that these revenues are not going to REP. QUISUMBING. Mr. Speaker, Your Honor, be used for 2016 because we are discussing the 2016 the point of the Gentleman is well taken. However, budget or whether these revenues are going to be just we are dealing with the sources of funds, the revenue- lodged in the agencies themselves or in the financial generating measures that fall under the ambit of the institutions, where these funds are going to be lodged Department of Finance and its attached agencies only. right now, Mr. Speaker. 28 MONDAY, SEPTEMBER 28, 2015

REP. QUISUMBING. Mr. Speaker, Your Honor, know whether these particular savings and unobligated we are speaking here of disbursements and not funds are going to be used for purposes of the 2016 revenues … requirements of the various agencies or these are going to be lodged only in financial institutions. I do not think REP. DELA CRUZ. I have to cut the distinguished we can proceed with that kind of appreciation of the Sponsor, Mr. Speaker. available revenues to the government. I do not think we should continue hiding behind all of these things, Mr. REP. QUISUMBING. … available to the national Speaker, because otherwise, we will have to question government. all of the assumptions that are available here insofar as the generation, the revenue-generation activities of the REP. DELA CRUZ. We are not speaking here of government is concerned. So, I want to know from the disbursements only. These are revenues already because distinguished Sponsor, Mr. Speaker, if he is now able these are unobligated. These are funds that are available, and from the—as well as from the revenue-generating Mr. Speaker. And if the distinguished Sponsor is telling agencies they are not able to come out with this kind of me right now that these are not revenues available to figure, Mr. Speaker, because that has everything to do the government, I have to tell him that that is not so. with the allocations that will be given to each agency. Please, let us have a more complete appreciation of the funds available in the government. REP. QUISUMBING. Mr. Speaker, Your Honor, savings are difficult to define because of some REP. QUISUMBING. Mr. Speaker, Your Honor, obligations, for example, if we take 2014, given the again, with due respect to the honorable Gentleman, two-year validity of some appropriations, Mr. Speaker, we are speaking here of revenues available and budgets Your Honor, it would be difficult to determine exactly available to the Department of Finance and its attached the savings and use that as part of your revenue agencies today. Now, there may be a disagreement measures to fund the national budget. Therefore, this between our definitions, Mr. Speaker, Your Honor. humble Representation is tasked to defend the revenues However, I fully respect the opinion of the distinguished raised by the Department of Finance to finance new Gentleman and would be happy to raise his concerns in appropriations for 2016, Mr. Speaker, Your Honor. the proper agency tasked to … REP. DELA CRUZ. Mr. Speaker, as I said, it will REP. DELA CRUZ. Mr. Speaker, distinguished be very difficult for us to proceed if that is how the Sponsor, I think the proper agency is the Department distinguished Sponsor is appreciating the funds that are of Finance. I want to find out if the distinguished available to the government. And if he cannot give us Sponsor is prepared to tell us how much is available that particular figure, Mr. Speaker, at this point, it will for purposes of funding this particular budget, because be hard for us to even have an idea in determining what if the distinguished Sponsor is only interested in telling kind of revenues, what kind of level of revenues will be us that the revenues will be available at some point available for us for purposes of the 2016 budget, because because of the revenues that are available or will be as I said, there are various ways by which we can take undertaken by the generating agencies, I want to know a look at the revenue stream for us, Mr. Speaker. And whether his appreciation of the available unobligated if the distinguished Sponsor is now telling us that these funds is something else, Mr. Speaker. particular savings, these particular unobligated funds are not available for use by the various government REP. QUISUMBING. Mr. Speaker, Your Honor, agencies, whether these are lodged in the Department of the funds that—the revenues that are raised by the Budget and Management or whether these are lodged in Department of Finance go towards funding the other agencies, Mr. Speaker, it will really be very, very obligations listed under the General Appropriations hard for us to proceed with questioning or interpellating Act. With regard to the question of the distinguished on the fiscal aggregates and the levels of revenues and Gentleman from the ABAKADA Party-List whether disbursements that will be made available for purposes the savings form part of revenues, Mr. Speaker, Your of the 2016 budget, Mr. Speaker. Honor, we are speaking only of the revenues that are So, I will request the distinguished Sponsor, if he is raised by the DOF from the DOF family. not prepared at this point to come out with that kind of a figure. Perhaps, he can request for a five-minute suspension REP. DELA CRUZ. If that is the appreciation so that we can proceed and ask the agencies involved to of the distinguished Sponsor, Mr. Speaker, I do not provide us with that kind of an information. think we can proceed. If he cannot even give me an idea how much is available in terms of the savings THE DEPUTY SPEAKER (Rep. Puno). The Dep. including unobligated allocations, because we want to Majority Leader is recognized. MONDAY, SEPTEMBER 28, 2015 29

SUSPENSION OF SESSION were made available, Mr. Speaker, for the Disbursement Acceleration Program and for the PDAF, Mr. Speaker, REP. BONDOC. Mr. Speaker, we second the and that this will be made available to us at some motion of the Honorable Dela Cruz for a five-minute appropriate time. suspension of the session. In any event, since we are talking here, Mr. I so move, Mr. Speaker. Speaker, about the Department of Finance and the Cash Management Program of the government, I am just THE DEPUTY SPEAKER (Rep. Puno). The wondering if the distinguished Sponsor can provide session is suspended. us data on the manner by which the National Treasury undertakes its Cash Management Program, and for It was 4:41 p.m. purposes of the 2016 Budget, Mr. Speaker, the estimated available cash that will be made for purposes of the RESUMPTION OF SESSION budgetary allocation for 2016 which is expected to be more than P3 trillion. At 4:56 p.m., the session was resumed. REP. QUISUMBING. Mr. Speaker, Your Honor, of THE DEPUTY SPEAKER (Rep. Puno). The the P3 trillion national budget for 2016, P2.69 trillion session is resumed. will be taken from revenues and P151 billion from non-tax revenues which will put our budget deficit at REP. BONDOC. Mr. Speaker, we take timeout P308.7 billion. from our discussion to acknowledge the presence of some of our guests in the gallery. They are the guests REP. DELA CRUZ. Thank you very much, Mr. of the Hon. Winston “Winnie” Castelo of the Second Speaker. District of Quezon City, as well as the Representative The government expects revenues to increase to of the Party-List ABANG LINGKOD, Inc., the Hon. P2.697 trillion, Mr. Speaker, and that 94.3 percent of Joseph Stephen S. Paduano. They are the members of this will be sourced from tax revenues collected by the the Quezon City School Parents-Teachers Association Bureau of Internal Revenue. Federation of District II, Quezon City, led by their May I know, Mr. Speaker, distinguished Sponsor, president, Darren Magbanua, President of the Quezon what is the performance of the Bureau of Internal City SPTA Federation of District II, guests of the Revenue at this point, just to give us an idea? Were they Honorable Castelo and the Honorable Paduano. able to collect their revenue commitments, for example, (Applause) for 2014 and 2015, Mr. Speaker? We want to find out if the tax revenue performance targets for the years, THE DEPUTY SPEAKER (Rep. Puno). The for example, 2013 and 2014, were met by the Bureau guests from Quezon City are welcome. Thank you for of Internal Revenue, Mr. Speaker, so that we have an your visit. Welcome to the House of Representatives. understanding of the available revenues as projected by (Applause) the Bureau of Internal Revenue.

REP. BONDOC. Mr. Speaker, I move for the REP. QUISUMBING. Mr. Speaker, Your Honor, recognition once more of the honorable Gentleman from in 2013, the Bureau of Internal Revenue collected the Party-List ABAKADA, the Hon. Jonathan Dela P1.216 trillion which was 89.5 percent of the target. Cruz, to continue his interpellation of the Honorable In 2014, the BIR collected P1.38 trillion which was Quisumbing. 90.1 percent of the target, Mr. Speaker, Your Honor. In I so move, Mr. Speaker, Your Honor. 2015, January to July, the Bureau of Internal Revenue collected P824.1 billion which was 82.4 percent of the THE DEPUTY SPEAKER (Rep. Puno). The target, Mr. Speaker, Your Honor. Honorable Dela Cruz is recognized to continue his interpellation. REP. DELA CRUZ. So, in other words, Mr. Speaker, Your Honor, the Bureau of Internal Revenue REP. DELA CRUZ. Thank you very much, Mr. has, more or less, been able to work on the basis of its Speaker. projected revenue generations. So, we are talking about Mr. Speaker, earlier, we had a discussion regarding an 89 percent and 90 percent performance on the part the use of savings available as a result of the lack of of the Bureau of Internal Revenue. usage of certain appropriations allocated for certain years. I have been advised that this will be made REP. QUISUMBING. In 2013 and 2014, Mr. available to us, specifically in the issue of the funds that Speaker, Your Honor. 30 MONDAY, SEPTEMBER 28, 2015

REP. DELA CRUZ. So, if we are going to project REP. QUISUMBING. Mr. Speaker, Your Honor, that on the basis of the expected government revenues despite the indicators that the distinguished Gentleman for the Bureau of Internal Revenue, Mr. Speaker, which enumerated, the BIR is still able in the seven-month is pegged at P2.026 trillion, we are talking about a period to collect 82 percent of its target, and it is due to revenue take, on the part of the Bureau of Internal the improved programs and improved collection efforts Revenue, of about P1.8 trillion. Is that correct, Mr. by the Bureau. And they are confident that they will still Speaker, Your Honor? be able to hit their target.

REP. QUISUMBING. Mr. Speaker, Your Honor, REP. DELA CRUZ. My understanding, Mr. the Bureau of Internal Revenue is projecting 93.5 Speaker, Your Honor, is that most of the large percent—my mistake, Mr. Speaker, Your Honor—for taxpayers have already paid out the required taxes, so the period 2015 from January to July, Mr. Speaker, how in particular can the Bureau of Internal Revenue Your Honor, the projected revenue from the Bureau of accomplish this projected requirement? After all, we are Internal Revenue is P1.673 trillion. not going to have new tax revenues. As a matter of fact, Mr. Speaker, in the House right now, and we agree, there REP. DELA CRUZ. One point six seven three is a pending bill requesting, urging the government to trillion pesos. lower the tax rates. My own projection, Mr. Speaker, is that the tax regime will really be changed considerably REP. QUISUMBING. Yes, Mr. Speaker, Your when the clamor on the part of individual taxpayers as Honor. well as corporate taxpayers for a lowering of tax rates will be heard. If that happens, Mr. Speaker, this will REP. DELA CRUZ. This is for the Fiscal Year 2016, have a strong impact on the projected revenue stream Mr. Speaker, Your Honor. coming from the Bureau of Internal Revenue. So, can the distinguished Sponsor, Mr. Speaker, educate us on REP. QUISUMBING. 2015, Mr. Speaker, Your how the Bureau of Internal Revenue can accomplish Honor. what it projects to accomplish by year-end? From January to July, the collection was P824 billion and REP. DELA CRUZ. 2015. The January to July that is about 85 percent of projected collections and 2015, according to you, Mr. Speaker, Your Honor, is the projected collection until the end of the year, Mr. P824 billion. Speaker, is P1.67 trillion. That is a difference of about P800 something billion, Mr. Speaker. I will be happy REP. QUISUMBING. Yes, Mr. Speaker, Your to get some indications coming from the distinguished Honor. Sponsor how the Bureau of Internal Revenue will be able to accomplish that particular projected goal, Mr. REP. DELA CRUZ. So, for 2015, the take will be Speaker. how much, Mr. Speaker, Your Honor? REP. QUISUMBING. Mr. Speaker, Your Honor, the REP. QUISUMBING. The projected for 2015, Mr. BIR currently has several tax administration programs Speaker, Your Honor, is P1.673 trillion. that have been put into place to make sure that they are able to get their targets such as taxpayer services, REP. DELA CRUZ. I will appreciate it if the updating the Taxpayer Registration Information distinguished Sponsor, Your Honor, will be able to Program, as well as several other tax administration provide us some indications on how this particular measures designed to ensure that they are able to operate revenue projection can be undertaken in 2015, or can be at peak efficiency. realized in 2015, considering that if we go by the record, the growth rate projected for the country is 5.3 percent, REP. DELA CRUZ. Thank you very much, Mr. instead of the 7 to 8 percent that was earlier projected. Speaker. In Table V, page 25 of the technical notes on And in the case of imports from January to July, Mr. the 2016 Proposed National Budget, Mr. Speaker, there Speaker, the imports, for example, from January to July, were indications, indicative reforms undertaken by the have decreased considerably. Bureau of Internal Revenue and I would like to find out So, can the distinguished Sponsor advise or the accomplishments of these particular reforms. For educate us on how this P1.673 trillion projected example, the Run Against Tax Evaders or the RATE revenues coming from the Bureau of Internal Revenue Program. We would like to find out, Mr. Speaker, Your can be realized. What kind of tax collection effort will Honor, how much in terms of incremental revenue has be undertaken for that purpose, Mr. Speaker, Your been realized as a result of the strengthening of the tax Honor? collections under the RATE Program? For example, in MONDAY, SEPTEMBER 28, 2015 31

2014, how much was realized in terms of incremental deliberations regarding the budget on the Department revenues from the RATE Program, and in 2015, how of Finance that can be made available so that we will much is the expected incremental revenue that is going have an idea on what kind of prospects we have as far to be realized from the RATE Program, and for 2016, as these cases are concerned. how much are we going to have? REP. QUISUMBING. We will comply, Mr. Speaker, REP. QUISUMBING. Under the RATE Program, Your Honor. Mr. Speaker, Your Honor, there are 394 cases currently filed under this program of which the estimated tax REP. DELA CRUZ. Mr. Speaker, I have a number of liabilities involved are P71.8 billion. other things that I would like to ask of the distinguished Sponsor, Mr. Speaker. But in the meantime, I will have REP. DELA CRUZ. Mr. Speaker, Your Honor, we to request for a continuance because I would like the have been getting information as a result of the efforts distinguished Sr. Dep. Minority Leader to proceed here of the Bureau of Internal Revenue, as well as the before he leaves us in the House and goes to the Senate, Department of Justice, about the filing of certain cases. Mr. Speaker. Can the distinguished Sponsor advise us, for example, how many cases have been filed that may generate, for THE DEPUTY SPEAKER (Rep. Puno). The Dep. example, for the government about P100 million and Majority Leader is recognized. above, if there is a listing? The report that we have been getting, Mr. Speaker, is that we have been losing REP. BONDOC. Mr. Speaker, Your Honor, we in many of these tax cases filed by the Department of note the suspension of the interpellation of the Hon. Justice and the Bureau of Internal Revenue. We want Jonathan Dela Cruz, and we note that he will return to find out what kind of leakages we have had insofar at the appropriate time for further questions on the as revenue collection is concerned. Department of Finance.

REP. QUISUMBING. Mr. Speaker, Your Honor, REP. DELA CRUZ. Please, Mr. Speaker. many of these cases are still sub judice or pending before different judicial bodies. We can provide the REP. BONDOC. Now, I move for the recognition distinguished Gentleman with the summary that the of our honorable Minority Leader from the Party-List BIR has, Mr. Speaker, Your Honor. BAYAN MUNA, the Hon. Neri J. Colmenares. I so move, Mr. Speaker, Your Honor. REP. DELA CRUZ. Mr. Speaker, Your Honor, there are reports that the government has lost in many of these THE DEPUTY SPEAKER (Rep. Puno). The cases. The Court of Tax Appeal, for example, has just Gentleman from the Party-List BAYAN MUNA, the Hon. penalized the government for two tax cases that were Neri J. Colmenares, is recognized for his interpellation. filed with the tax court, Mr. Speaker, Your Honor. We would like to find out if there is a listing coming from the REP. COLMENARES. Thank you. Bureau of Internal Revenue on what kind of tax cases, Maraming salamat, Mr. Speaker, at magandang how many have been filed and who were the tax evaders hapon po sa mga miyembro ng DBCC at sa ating as far as the Bureau of Internal Revenue is concerned distinguished colleague, si Congressman Quisumbing. and how is the expected take from all of these cases that I really hope na ma-settle ang mga tanong ko dito sa have been filed, Mr. Speaker, Your Honor. interpellation pong ito para hindi na ako magtanong doon sa macro at sa DBCC mamaya. So, thank you, REP. QUISUMBING. Mr. Speaker, Your Honor, the my dear colleague. BIR can submit a listing subject to legal limitations of Iyong first question ko lang po, Mr. Speaker, the cases that are listed, Mr. Speaker. doon po sa BIR, nasundan ko naman bago lang iyong katanungan ng distinguished colleague natin, si Cong. REP. DELA CRUZ. You have a listing of course, Jonathan Dela Cruz, magkano po ba ang lost revenue Mr. Speaker, Your Honor. sa BIR noong 2014 po? Magkano ang estimated na revenue na hindi nasingil o nawala sa BIR na dapat ay REP. QUISUMBING. Yes, Mr. Speaker, Your nakuha ng BIR, Mr. Speaker? Honor. REP. QUISUMBING. Mr. Speaker, Your Honor, REP. DELA CRUZ. You have a listing of all these the estimate of the Bureau of Internal Revenue is that cases, and I will appreciate it if it can be made available due to tax evasions, at least 4 percent of the GDP, Mr. at some point, Mr. Speaker, as we go on with the Speaker, Your Honor, was lost. 32 MONDAY, SEPTEMBER 28, 2015

REP. COLMENARES. For 2014 po iyon. REP. QUISUMBING. Yes, Mr. Speaker, Your Honor. The target for 2012 for the BIR is P1.066 trillion REP. QUISUMBING. Mr. Speaker, Your Honor, and the collected value for 2012 was P1.057 trillion, this is as of 2012. There is no estimate that has been Mr. Speaker, Your Honor. made yet for 2014. REP. COLMENARES. So, for an achievement rate REP. COLMENARES. Sa 2012, 4 percent. So, of how much, Mr. Speaker? magkano po iyan in terms of money value? Magkano po ba ang 4 percent na iyan ng GDP? REP. QUISUMBING. 99.3 percent, Mr. Speaker, Your Honor. REP. QUISUMBING. Roughly P400 billion, Mr. Speaker, Your Honor. REP. COLMENARES. 99.3 percent of the target. Tama po? REP. COLMENARES. Thank you. Can you repeat the answer please? REP. QUISUMBING. Yes, po.

REP. QUISUMBING. Roughly P400 billion, Mr. REP. COLMENARES. So, the BIR targeted P1.066 Speaker, Your Honor. trillion at na-achieve niya ang target—99.3 percent ng target ang na-achieve niya. Tama po? REP. COLMENARES. P400 billion ang nawala sa BIR due to tax evasion, 2013 po sa BIR? REP. QUISUMBING. That is correct, Mr. Speaker, Your Honor. REP. QUISUMBING. Mr. Speaker, Your Honor, there has been no estimate made yet for 2013, Mr. REP. COLMENARES. Dito po ba sa hindi niya Speaker. This is as of 2012. na-achieve, hindi pa nakapasok dito ang P400 billion na hindi niya nakolekta? REP. COLMENARES. Hindi ba conscious po ang BIR, magkano ang hindi nakokolekta every year? I REP. QUISUMBING. It is possible, Mr. Speaker, mean, if you are losing billions of pesos every year, I Your Honor, that it was addressed, Mr. Speaker, Your really hope the BIR is conscious about this and trying Honor. to find a way to stem this leakage, Mr. Speaker, and it is really, should I say, frustrating if the BIR is not aware REP. COLMENARES. What was the answer again kung magkano ang estimated loss of revenue sa 2013. po? Is there a change to the answer, Mr. Speaker? REP. QUISUMBING. It was partly addressed, Mr. REP. QUISUMBING. Mr. Speaker, Your Honor, Speaker, Your Honor, because of the high efficiency, the the Bureau is very much aware of the leakages when collection efficiency of that year in 2012, Mr. Speaker, it comes to payment of taxes which is why they have Your Honor. been very aggressive, Mr. Speaker, Your Honor, with the RATE Program as well as other similar REP. COLMENARES. So, included na dito, tama programs, to improve tax collection, Mr. Speaker, po? Your Honor. REP. QUISUMBING. Yes, Mr. Speaker, Your REP. COLMENARES. Thank you po, Mr. Speaker. Honor. Ano po ba ang performance rating ng BIR noong 2012, Mr. Speaker? Ilan sa target revenue ang na-achieve ng REP. COLMENARES. Pero kina-calculate ko po, sa BIR noong 2012, during that period, Mr. Speaker? P1.066 trillion, ang na-collect lang po ay P1.057 trillion. Parang ang difference noong dalawa is about P900 REP. QUISUMBING. Mr. Speaker, Your Honor, million. Tama po ba ang aking calculation? I mean, if it in 2012, the BIR nearly met its target with a deficit of is a 99.3 percent performance rating, mukhang nakolekta 0.77 percent, Mr. Speaker, Your Honor. niya lahat except for P900 million. Tama po?

REP. COLMENARES. Can you explain it in REP. QUISUMBING. Mr. Speaker, Your Honor, money terms, how much was the target of BIR in 2012, the difference is P8 billion. magkano lang po ang na-achieve niya at ilang percent ang kanyang achievement sa taon pong iyon? REP. COLMENARES. P8 billion po? MONDAY, SEPTEMBER 28, 2015 33

REP. QUISUMBING. Yes. REP. COLMENARES. Mr. Speaker, mahirap yata, so we just have to go with the statement of the BIR REP. COLMENARES. P8 billion pesos, so P1.066 na doon lang namin nalaman noong 2012 na P400 trillion ang target, naabot niya ang target except P8 billion pala as of noong 2011, parang walang malaking billion na hindi niya nakolekta doon sa target niya. revenue loss ang BIR kasi if I am not mistaken, Mr. Tama po? Speaker, ang revenue loss ng 2011 is more than P350 billion. So kung may revenue loss na P350 billion sa REP. QUISUMBING. Yes, Mr. Speaker, Your BIR noong 2011 at na-include niya sa target iyon, di Honor. sana kasama na iyon doon sa target itself na P1.366 trillion pero hindi pa rin ho e. So, what explains this REP. COLMENARES. Paano po nangyari ito kung discrepancy? ang 2012 po natin ay P400 billion ang lost revenues ng You know, marami pong kababayan natin na BIR? So, hindi ko makita po ito. Ibig sabihin, hindi na humihingi ng pondo at relief sa ating gobyerno. Ang tina-target ng BIR ang P400 billion, Mr. Speaker? palaging sinasabi ay wala pong pondo pero it seems na pati iyong mga figures na iyon, hindi naaalaala ng REP. QUISUMBING. Mr. Speaker, Your Honor, the BIR, parang hindi napakaimportante sa kanila ang estimate that was made earlier was partly addressed by nawawalang hundreds of billions of pesos po. So, the collection, but there are limitations, Mr. Speaker, maybe we can ask again, ano po ang revenue loss ng Your Honor, to tax administration due to several issues BIR noong 2011? such as the Bank Secrecy Law and other impediments, Mr. Speaker, Your Honor. REP. QUISUMBING. Mr. Speaker, Your Honor, the estimate of the BIR for 2011 already partly includes REP. COLMENARES. Pero sa targeting system the lost revenue through tax evasion, Mr. Speaker, Your lang muna pa ako, Mr. Speaker, kasi kung ang P400 Honor. billion ang loss noong 2012, dapat ang targetin ng BIR is P1.466 trillion, P1,466,000,000,000. Pero REP. COLMENARES. So, walang figure na masabi ang tinarget ng BIR ay P1,066,000,000, so parang kung magkano ang nawala sa BIR noong 2011? Ano po hindi na tina-target ng BIR iyong loss itself kasi ba ang performance rating ng BIR noong 2011, iyong masasabi mo lang po iyon pag ang nasa target mo ay official po na rating vis-à-vis target po? P1,466,000,000,000 pero ang nakolekta mo ay one point zero fifty-seven (P1.057), hindi mo nakolekta REP. QUISUMBING. Yes. In 2011, Mr. Speaker, ang P408 billion, pero it seems from the targeting Your Honor, the BIR was short of their collection itself, hindi na ini-include ng BIR iyong P400 billion. target by 1.69 percent or P15.8 billion, Mr. Speaker, Tama po ba iyon? Your Honor.

REP. QUISUMBING. Mr. Speaker, Your Honor, it REP. COLMENARES. So, mga 98 percent is necessary to stagger the losses through tax evasion success. through several years which is why a much higher target is reflected for the succeeding years, 2013 and REP. QUISUMBING. Roughly, Mr. Speaker, Your 2014. Honor.

REP. COLMENARES. Noong nalaman ninyo na REP. COLMENARES. Tama. So, Mr. Speaker, may revenue loss na P400 billion, nag-target na po kayo 98 percent success, ang estimated na revenue loss is ng mas mataas para mapasok na sa targetting iyong more than P300 billion; in 2012 naman, ang estimated nawala po, ang revenue loss ng 2012. Tama po? rate naman ng BIR is 99.3 percent pero P400 billion sa taon na iyon. I would like to ask for the data as to REP. QUISUMBING. That is correct, Mr. Speaker, the 2013 and 2014 revenue loss, Mr. Speaker, if it Your Honor. can be given to this Representation by the end of this week, if possible, before the end of this week, Mr. REP. COLMENARES. Yes, magkano po ba ang Speaker, if I may. revenue loss ng 2011? REP. QUISUMBING. Mr. Speaker, Your Honor, REP. QUISUMBING. The BIR, Mr. Speaker, the surveys that the BIR uses in conjunction with the Your Honor, does not have an estimate for the losses World Bank is conducted every three years, so the in 2011 on hand, but they can provide, Mr. Speaker, figures for 2013 and 2014 are not yet available, Mr. Your Honor. Speaker, Your Honor. 34 MONDAY, SEPTEMBER 28, 2015

REP. COLMENARES. Thank you. So, sa madaling REP. COLMENARES. P220 to P240 billion ang sabi po, alam ng BIR na nawalan siya ng P400 billion nawala? noong 2012 pero hindi na niya masabi kung magkano ang nawala sa kanya noong 2013 at 2014. Tama po ba iyan, REP. QUISUMBING. Yes, Mr. Speaker, Your kasi every three years po? I mean, I was just rephrasing Honor. the answer. So, tama po? Sa 2015 natin malalaman ulit kung magkano ang revenue loss ng BIR. REP. COLMENARES. Actually, during the hearing last week, Usec Paul mentioned the value, the amount REP. QUISUMBING. Yes, Mr. Speaker, Your of P300 billion during the hearing doon sa isang komite. Honor. But in any case, Mr. Speaker, magkano naman po noong 2013? REP. COLMENARES. Tama, tama. Okay, let us go to Customs naman po. Magkano po ang revenue loss REP. QUISUMBING. In 2013, Mr. Speaker, Your ng Customs noong 2014 po? Honor, the GDP was P11.542 trillion.

REP. QUISUMBING. Roughly 2 percent of GDP, REP. COLMENARES. Mga magkano naman po Mr. Speaker, Your Honor. ang nawala doon?

REP. COLMENARES. In terms of money value, REP. QUISUMBING. Roughly about more or less magkano po iyan, in 2014? P150 to P170 billion, Mr. Speaker, Your Honor.

REP. QUISUMBING. Around P100 to P200 billion, REP. COLMENARES. Okay, P150 to P170 Mr. Speaker, Your Honor. billion. So, klaro po na hundreds of billions ang nawawala sa BIR at Customs every year. May tanong REP. COLMENARES. One hundred to P200 billion po ako dati doon sa isang arrangement sa DOF na pesos which is 2 percent of the GDP. kung saan, may hiningi na sovereign guarantee ang Maynilad in the amount of P3.5 billion. Doon iyong REP. QUISUMBING. The estimate range, Mr. mga ang gusto niyang singilin sa tubig, sa presyo ng Speaker, Your Honor, is 1 percent to 2.8 percent, Mr. tubig dito sa Metro Manila, hindi kasi in-approve Speaker, Your Honor. ng MWSS dahil ang paniwala po ng MWSS ay hindi puwedeng ipataw sa consumers ang income REP. COLMENARES. One to 2.8 percent of the tax na binabayaran ng Maynilad. Ang ginawa po ng GDP. So, from P100 to P200 billion ang nawala noong Maynilad, pumunta siya doon sa letter of guarantee 2014, tama po? with the DOF na sumisingil siya ng P3.5 billion. Tama po ba ito? REP. QUISUMBING. Yes, Mr. Speaker, Your Honor. REP. QUISUMBING. Yes, Mr. Speaker, Your Honor. REP. COLMENARES. Magkano po ang GDP noong 2014? REP. COLMENARES. Yes, tama. So, humingi siya ng P3.5 billion in sovereign guarantee. Sumulat REP. QUISUMBING. P12.642 trillion in 2014, Mr. si Secretary Purisima kay President Aquino in a letter Speaker, Your Honor. dated February 20, if I am not mistaken, through the Executive Secretary saying na mayroong sovereign REP. COLMENARES. P12.642 trillion noong 2014, guarantee na ibibigay sa Maynilad in the amount of P5 so nagre-range siya from 1 to 2.8 percent, tama po? billion, tama po?

REP. QUISUMBING. Yes, Mr. Speaker, Your REP. QUISUMBING. Mr. Speaker, Your Honor, the Honor. figure in order to inform the President of the situation, and due to the emergency, the needs of the emergency, REP. COLMENARES. Igitna na lang po natin, the initial amount of P5 billion was proposed by the between 1 and 3. So, 2 percent na lang po. Magkano Department of Finance, given the estimate that was ang 2 percent ng P12.642 trillion na GDP? submitted by the Maynilad. However, there is a process of arbitration that still has to be undertaken. It does not REP. QUISUMBING. Between P220 to P240 constitute, Mr. Speaker, Your Honor, that this has to be billion, Mr. Speaker, Your Honor. released immediately. MONDAY, SEPTEMBER 28, 2015 35

REP. COLMENARES. Yes, salamat po. Pero ang REP. QUISUMBING. Mr. Speaker, Your Honor, the tanong ko lang po doon sa sulat ni Secretary Purisima initial estimate of Maynilad on the letter dated February sa Malacañang kay President Aquino, P5 billion po ang 20 was based on the current loss that they experienced kanyang estimate doon, tama po? for those months. In the succeeding months, they experienced slightly less; hence, in the final letter that REP. QUISUMBING. Yes, Mr. Speaker, Your they sent on March 9, it contained an itemized month- Honor, this is based on the letter of Maynilad which by-month specific listing of their losses which amounted stated that its lost revenues from 1 January 2013 until to P3.4 billion, Mr. Speaker, Your Honor. 31 January 2015 amounted to P208 million per month based on the computation that was given since this was REP. COLMENARES. Yes, Mr. Speaker. Ang the only number quoted by the letter, which constituted punto, Mr. Speaker, the same formula was used hindi the amount of P5.2 billion, Mr. Speaker, Your Honor. ba? The same formula was used by Maynilad. Ang DOF mismo ang umabante at nag-calculate kung magkano REP. COLMENARES. Well, I have a copy of the iyon. Instead of asking Maynilad kung magkano ba ang letter of Maynilad and did Maynilad not say that P3.5 hinihingi ninyo, nag-abante ang DOF, inestimeyt niya, billion ang kanyang hinihingi doon sa letter niya sa P5 billion, which it turned out later na P3.5 billion po DOF, Mr. Speaker? Tama po ba na may binanggit ang pala, tama? Maynilad na P3.5 billion? REP. QUISUMBING. Yes, Mr. Speaker, Your REP. QUISUMBING. Yes, Mr. Speaker, Your Honor; however, that figure—and this case is Honor, but that is in a succeeding letter dated March 9, currently under arbitration to figure out the exact 2015. The initial letter of Maynilad was dated February responsibilities … 20, 2015. REP. COLMENARES. I know, salamat po. REP. COLMENARES. Walang binanggit ang Nang itanong ko po sa hearing na iyon at hindi pa ito Maynilad doon na P3.5 billion, if I may ask, Mr. ibinibigay ng DOF, I asked ano pa ba, ilan pa bang mga Speaker? kompanya o mga agreements ang mayroong sovereign guarantee katulad ng sa Maynilad? REP. QUISUMBING. Not in the first letter, Mr. Speaker, Your Honor. REP. QUISUMBING. Mr. Speaker, Your Honor, the list that was requested by the Honorable Colmenares REP. COLMENARES. So, bakit sumobra ang hingi is currently with the OSG, the Office of the Solicitor ng Secretary kung P3.5 billion pala ang hinihingi ng General, and it is being reviewed at the moment, Mr. Maynilad doon sa Malacañang, Mr. Speaker? Speaker, Your Honor.

REP. QUISUMBING. Dahil po sa computation REP. COLMENARES. No, no, I am not asking na ibinigay po ng Maynilad that their estimated lost whether or not it is valid. You go to the OSG, Mr. revenues per month amounted to P208 million from Speaker, at kapag may kuwestiyon ka as to the validity, January 1, 2013 to January 2015. Based on that estimate ang hinihingi ko lang po iyong list of agreements na may po, the Department of Finance came to the figure of sovereign guarantee. I am sure the DOF has a copy of P5.2 billion, Mr. Speaker, Your Honor. that list or a listing of these companies and agreements notwithstanding the fact na may kopya rin ang OSG. REP. COLMENARES. So, nagkamali ang DOF sa So, may we know ano pa ang ibang mga agreement na pag-estimate, P5 billion ang kanyang pagbilang noon may sovereign guarantee, Mr. Speaker. sa calculation, sa formula na sinabi ng Maynilad, pero later on, P3.5 billion lang pala. REP. QUISUMBING. Mr. Speaker, Your Honor, the DOF is currently having it vetted with the OSG; REP. QUISUMBING. Based on the only data that however, we can provide your office, Mr. Speaker, was provided by Maynilad, Mr. Speaker, Your Honor, Your Honor, with the listing as it currently stands, Mr. this formed the basis of the calculation of the DOF. Speaker, Your Honor.

REP. COLMENARES. Bakit po, ano naman ang REP. COLMENARES. But, Mr. Speaker, basis ng Maynilad sa subsequent letter niya na P3.5 distinguished colleague, hiningi na po ito noon. I could billion? Hindi ba pareho lang naman ang pinagbatayan not understand why ang DOF, ayaw maging forward ng Maynilad na calculation niya? Nag-iba ba ang dito sa data. I mean, pagtingin ng DOF, okay lang na calculation niya sa first letter at sa second letter? mag-sovereign guarantee, normal iyan, So, why are 36 MONDAY, SEPTEMBER 28, 2015 we ashamed to admit it? Iyon naman ang aking punto. REP. QUISUMBING. Yes. The other one which Siyempre sa tingin ko, Mr. Speaker, napakasama ng was undertaken on July 23, 2014 is for the MRT 7, sovereign guarantee. Imagine, Mr. Speaker, in-impose wherein the contracting parties are the Universal LRT ng Maynilad ang P3.5 billion na income tax niya sa Corporation Ltd. and the implementing agency is the consumers, lumaban ang consumers, naipanalo niya, Republic of the Philippines through the DOTC. halimbawa, sa MWSS o sa Korte Suprema na hindi nga talaga karapat-dapat na itaas ang rates ng Maynilad. REP. COLMENARES. Okay, MRT 7, DOTC and So, akala ng taumbayan, panalo na kami, napigilan the concessionaire, the contractor. Next, Mr. Speaker. namin ang pagtaas ng singil dito sa tubig dahil nanalo kami sa Korte Suprema o nanalo kami sa MWSS. REP. QUISUMBING. Prior to that, Mr. Speaker, Maynilad turns around and tells the government, “O, the two agreements with the MWSS, on March 17, hindi kami nanalo. Hindi namin na-impose ang mataas 2010, which is the MWSS privatization West and on na rate. O, gobyerno, bayaran mo na lang kami ng P5 October 9, 2009, MWSS privatization East, 2009, Mr. bilyon para ma-cover up iyong hindi namin na-impose Speaker, Your Honor. na rate.” So, ano na ang nangyari doon sa inilaban ng taumbayan? Napanalo ka na nga sa MWSS, in the end, REP. COLMENARES. So, sino po ang kakontrata magbabayad pa rin pala ang taumbayan through the diyan sa MWSS na iyan? sovereign guarantee? Saan po ang hustisya diyan? Does that not preempt the due process rights of the REP. QUISUMBING. Well, for the privatization people to object as to increased rates, Mr. Speaker? East, which just the 2009, Mr. Speaker, Your Eh, papaano object ka pala nang object, sampa ka Honor, … pala nang sampa ng opposition sa MWSS, tapos in the end, balewala pala kasi kahit manalo ka pala, REP. COLMENARES. Yes. masisingil ka pa rin. What is worse, Mr. Speaker, kapag in-impose ng Maynilad ang singil sa tubig REP. QUISUMBING. …it is the Manila Water na iyan, ang magbabayad niyan, kung hindi iyong Company Inc. tinutulan ng taumbayan, ang lahat ng consumers ng Maynilad dito sa Metro-Manila. Pero, kung pupunta REP. COLMENARES. Okay. So kasama ang ang Maynilad sa sovereign guarantee doon sa national Manila Water. budget, Mr. Speaker, ang magbabayad sa Maynilad is actually the entire population of the Philippines from REP. QUISUMBING. And for 2010, the MWSS Luzon, Visayas, hanggang Mindanao, kasi these are privatization West, it is the Maynilad Water Services public funds. Inc., Mr. Speaker, Your Honor. So, Mr. Speaker, napaka-unjust sa pagtingin namin ng sovereign guarantee na iyon, but it seems that the REP. COLMENARES. Salamat po. Ano pa ang DOF believes it is necessary to have this sovereign iba? guarantee, so be it. Iyon po ang tingin naman ng DOF. Ang hinihingi lang naman po namin, anu-ano pang mga REP. QUISUMBING. In July of 1999, the Caliraya- agreement ninyo ang may ganyang klaseng sovereign Botocan-Kalayaan CBK Power Plant, wherein the guarantee? Iyon lang naman po ang matagal na naming contracting parties are the Industrias Metalúrgicas hinihingi. Ilang buwan na po iyon at hanggang ngayon Pescarmona SA., and the CBK Power Corporation, po ay hindi pa mai-offer. Can you give us one or two while the implementing agency is the NPC and the more examples of these sovereign guarantees, Mr. PSALM. Speaker? REP. COLMENARES. NPC at PSALM. Ano ito, REP. QUISUMBING. Mr. Speaker, Your Honor, Carilaya, Caloocan? we have a list that was given to us by the Department of Finance, Mr. Speaker, Your Honor. REP. QUISUMBING. Caliraya-Botocan-Kalayaan Power Plant, CBK Power Plant. REP. COLMENARES. Yes, thank you. One, the agreement between … REP. COLMENARES. CBK Power Plant. Thank you po. Ano pa po? REP. QUISUMBING. One is … REP. QUISUMBING. In 1998, the Mindanao Coal- REP. COLMENARES. … the government and Fired Thermal Power Plant, wherein contracting parties Maynilad. Okay, ilista na po natin iyan. are the San Roque Power Corporation, Consortium MONDAY, SEPTEMBER 28, 2015 37 of Marubeni Corporation, Sithe Philippines Holdings REP. COLMENARES. P70 billion … Incoporated, Italian-Thai Development Public Company Limited. REP. QUISUMBING. Yes, Mr. Speaker, Your Honor. REP. COLMENARES. Ang implementing agency diyan? REP. COLMENARES. … ang hinihingi naman ng Manila Water sa sovereign guarantee niya. Thank you, REP. QUISUMBING. Same, Mr. Speaker, Your Mr. Speaker. Honor, NPC-PSALM I am a little bit shocked by the amounts being given away by the government, Mr. Speaker, in sovereign REP. COLMENARES. NPC-PSALM. Okay, thank guarantees. you po. Ano pa po? Can we go to the first slide, please? I just like to ask the DOF … REP. QUISUMBING. Mr. Speaker, Your Honor, this is a list of quite a few, if, Your Honor, Mr. Speaker, REP. QUISUMBING. Mr. Speaker, Your Honor, would like, we can provide the full listing to you … just to clarify, these are claims and are all still currently going under arbitration. REP. COLMENARES. Gaano po kadami iyan, more or less? Can you just count them for me para … REP. COLMENARES. Yes, yes, I understand, Mr. Speaker, but the fact you allowed it in an agreement for REP. QUISUMBING. About 17, Mr. Speaker, Your them to claim a right to arbitration, medyo malaking talo Honor. na agad iyon. In the first place, bakit natin pinayagan iyon, ano. Anyway, I would like to ask, in relation to REP. COLMENARES. Seven, zero? sovereign guarantees and promises of government to pay for something. Mayroon po kaming nakita sa 2016 REP. QUISUMBING. Seventeen, 1-7, Mr. Speaker. budget, Budgetary Support to Government Corporation, P2.105 billion. Noong itinanong po ito, ang PEZA, REP. COLMENARES. One, seven. Sige, I will give bakit may P2.105 billion na nakalaan sa 2016 budget sa in to your request, Mr. Speaker, but can you provide inyo, saan gagastusin iyon? Ang sagot po dito sa amin this Representation a copy of that now para hindi ko na ay bayad po iyan sa kuryente ng Texas Instruments sa tatanungin. At least, may kopya na lang po ako dito ngayon. PEZA. So, is the DOF aware of this kind of arrangement na kung saan mayroon ngang P2.105 billion budget na REP. QUISUMBING. It is on its way to you now, nakalaan? Mr. Speaker, Your Honor. REP. QUISUMBING. Yes, Mr. Speaker, Your Honor, REP. COLMENARES. Thank you, maraming this was done under the Industrial Competitiveness salamat, Mr. Speaker. Fund which was signed by GMA—signed by former Sumulat ba ang Manila Water sa DOF asking for its President Arroyo. It is the DTI, Mr. Speaker, Your sovereign guarantee, also in relation to the same issue I Honor, that administered the fund, Mr. Speaker, Your mentioned a while ago sa Maynilad, mayroon po ba? Honor.

REP. QUISUMBING. Yes, Mr. Speaker, Your REP. COLMENARES. It is the what? Honor, sumulat po ang Manila Water... REP. QUISUMBING. The DTI. REP. COLMENARES. May letter din po e, sa DOF ang Manila Water. REP. COLMENARES. Yes.

REP. QUISUMBING. ...on April 23, 2015, Mr. REP. QUISUMBING. The Department of Trade Speaker, Your Honor. and Industry, Mr. Speaker, Your Honor.

REP. COLMENARES. Yes, magkano po ba ang REP. COLMENARES. So, there is a budget hinihingi ng Manila Water doon sa kanyang sovereign of P2.105 billion to pay for the kuryente of Texas guarantee, sa letter na iyon? Instruments, tama po?

REP. QUISUMBING. Around P70 billion, Mr. REP. QUISUMBING. Yes, Mr. Speaker, Your Speaker, Your Honor. Honor. 38 MONDAY, SEPTEMBER 28, 2015

REP. COLMENARES. Yes. And in the budget, it REP. QUISUMBING. Mr. Speaker, Your Honor, is allocated for what agency? Would you know, Mr. if I may, we state the companies that are under Speaker? Just in case you know, Mr. Speaker. this agreement, it is Texas Instruments, Phoenix Semiconductor and Hanjin, Mr. Speaker. REP. QUISUMBING. Under the DTI-PEZA, Mr. Speaker, Your Honor. REP. COLMENARES. Not Samsung?

REP. COLMENARES. Is that so? Okay, hindi siya REP. QUISUMBING. Ang Samsung, hindi po allocated for NPC? kasama, Mr. Speaker.

REP. QUISUMBING. No, Mr. Speaker. REP. COLMENARES. Phoenix, p-h-o-e?

REP. COLMENARES. For DTI-PEZA, okay. Are REP. QUISUMBING. Yes, Mr. Speaker, Phoenix there any other budgets previously na may ganito rin Semiconductor Philippines Corporation. pong pagbayad sa Texas Instruments, sa kuryente ng Texas Instrument, Mr. Speaker? REP. COLMENARES. Okay, thank you po. Magkano naman po ang naka-allot sa Phoenix? REP. QUISUMBING. None, under the Department of Finance, Mr. Speaker, Your Honor. REP. QUISUMBING. P1.45 billion, Mr. Speaker, Your Honor. REP. COLMENARES. None, that we know of. Thank you. REP. COLMENARES. Also, in the 2016 budget Are there agreements with other companies in po? similar situation to Texas Instruments na may ganoon din tayong deal na babayaran natin ang kuryente REP. QUISUMBING. Also in the 2016 budget, nila? Mr. Speaker.

REP. QUISUMBING. Mr. Speaker, Your Honor, REP. COLMENARES. Thank you, maraming there are other companies, there are four companies that salamat po. are under this fund, Mr. Speaker, Your Honor. Mayroon pong mga bills dito to eliminate VAT on electricity. What is the position of the Department of REP. COLMENARES. Maraming salamat po. May Finance with regard to issues on VAT, ang pagtanggal we know what those four companies, Mr. Speaker, ng VAT doon sa presyo ng kuryente, Mr. Speaker? are? REP. QUISUMBING. Mr. Speaker, Your Honor, the REP. QUISUMBING. Mr. Speaker, while the Department of Finance is against these proposals. Committee traces the information, Mr. Speaker, but the two other companies aside from Texas REP. COLMENARES. May we know the reason Instruments are Hanjin and Samsung, Mr. Speaker, the Finance Department will hold on to oppose a Your Honor. measure to take away VAT, I mean, to eliminate VAT from electricity charges, Mr. Speaker. REP. COLMENARES. Hanjin and Samsung. How much did we allocate in the budget to pay the electricity REP. QUISUMBING. Mr. Speaker, Your Honor, it bill of Hanjin, Mr. Speaker? is the contention of the Department of Finance that it will decrease the revenue of the tax collecting agencies, REP. QUISUMBING. For Hanjin, Mr. Speaker, Mr. Speaker. Your Honor, P1.250 billion was allocated. REP. COLMENARES. Thank you. So, the position REP. COLMENARES. P1.25 billion was allocated, of the DOF is to oppose ang pagtanggal ng VAT sa in 2015 or is it in the 2016 budget? kuryente dahil mawawalan o mababawasan ang revenue o kita ng Department of Finance. Magkano po ba REP. QUISUMBING. In 2016, Mr. Speaker, Your ang estimate na mawawala sa kita ng Department of Honor. Finance?

REP. COLMENARES. In 2016 budget, okay, thank REP. QUISUMBING. Around P50 billion, initial you po. Samsung naman po. estimate, Mr. Speaker, Your Honor. MONDAY, SEPTEMBER 28, 2015 39

REP. COLMENARES. P50 billion ang mawawala? kasama sa performance rating ang loss. In fact, you had a P450-billion loss in 2012 but the performance rating REP. QUISUMBING. Yes, Mr. Speaker, Your of the BIR in 2012 was 99.3 percent, Mr. Speaker. So, Honor. ibig sabihin, hindi factored-in iyong loss sa performance rating. So, hindi ko nakuha po ang connect. Kasama ba REP. COLMENARES. Bakit, hindi po ba natin ma- o hindi po siya kasama ? Ang sabi kanina, well, nawalan explain, kanina po ang sagot ng DOF, ang nawawala sa kami ng P400 billion but the BIR claims 99.3 percent BIR is about how much, kanina po four hundred? ng target ang nakamit. May disjoint po tayo dito.

REP. QUISUMBING. Roughly P400 billion, Mr. REP. QUISUMBING. Mr. Speaker, this is why Speaker, Your Honor. we mentioned earlier that the losses, the leakages are staggered on a year-to-year basis po. It is admittedly REP. COLMENARES. Billion pesos, ang nawala difficult to recover the entire amount in a one-year span, sa BIR, roughly 200 to 250—sorry, baliktad, ang which is why… nawawala sa Customs, P200 to 250 billion a year. So, hindi po ba mas tamang sagot—puwede bang sabihin ng REP. COLMENARES. Yes, but how much? You do taumbayan sa Customs na, “gandahan kaya ninyo ang not have a target kung magkano ang mare-recover ninyo pag-collect.” Eh P50 billion, ito ang nawawala sa inyo, sa P400 billion. Iyon lang po talaga ang sagot dito. “We magkano po ba iyon? Four hundred plus P250 is about will try our best but we do not know kung P420 billion P650 billion, at ito ang nawawala sa gobyerno every ang mawawala sa amin o P380 billion, basta we will year. So, bakit hindi po puwedeng doon ninyo bawiin try our best.” Ganoon po, hindi ba? ang lost revenues ninyo? Anyway, ang sabi ninyo, you are now implementing this RAT and all these other, you REP. QUISUMBING. Mr. Speaker, we are targeting know, programs and you are sure hindi na ganito kalaki a recovery of 1.2 percent of the GDP. ang aming revenue loss; therefore, mako-compensate na po iyong P50 billion, hindi po ba? REP. COLMENARES. Yes. So, Mr. Speaker, we cannot afford to give the Filipino people, you know, REP. QUISUMBING. Yes, Mr. Speaker, this is relief mula doon sa mataas na presyo ng kuryente sa why the BIR and the Bureau of Customs have been VAT but we can afford to give away P400 billion or aggressively pursuing their programs to ensure that P250 billion, less a few billions here and there. Iyon po these leakages will no longer happen. ang hindi maintindihan ng taumbayan dito, na, “Bakit kami ang pahihirapan ninyo? Gandahan ninyo kaya REP. COLMENARES. So, sa next year po, can we ang inyong recovery. Tanggalin ninyo kaya ang mga expect na mare-reduce na itong P400 and P250 billion corrupt na government officials. Bakit naman kami ang na nawawala sa BIR at sa Bureau of Customs? pahihirapan ninyo?” Ngayon, sunod ko na lamang po na tanong, may REP. QUISUMBING. Yes, Mr. Speaker. The BIR bill din po dito na tatanggalin ang VAT sa systems loss. and the BOC are exhausting all efforts to ensure that Ang tanong ko po, ano po ang posisyon ng DOF sa they are able to meet their target and to plug the leakages pagtanggal ng VAT sa system loss? Systems loss na lang in both Bureaus. po iyan, eh wala namang na-gain ang taumbayan doon. Bakit pa may VAT? Hindi po ba parang napakasama REP. COLMENARES. Yes. So, based sa plano naman, ni hindi mo nga nakuha iyong kuryente, hindi ninyo, magkano ang tantiya ninyong mababawas ninyo na-deliver sa iyo, tapos sisingilin ka for systems loss. sa P400 billion loss ng BIR? I am sure you have your Ang masama pa, ang gobyerno, sumakay doon at pati targets and you know, unless the Gentleman is just iyong system loss, may VAT pa. So, may proposal po saying this as a general motherhood statement na we are dito na tanggalin ang VAT sa system loss sa kuryente. going to do better pero wala naman kayong target. Ano po ang posisyon ng DOF?

REP. QUISUMBING. Mr. Speaker, each one of REP. QUISUMBING. Mr. Speaker, the position of the programs that are enumerated under the Bureau of the Department of Finance is that it is initially against Customs and the BIR has certain performance targets all measures that would cut the revenue, that would cut that are set out for the year as well as for succeeding the revenues, Mr. Speaker. years, Mr. Speaker. REP. COLMENARES. So, ayaw. Opposed kayo dito sa REP. COLMENARES. Yes, Mr. Speaker, but it pagtanggal ng VAT sa systems loss kahit na ano pa man ang seems, as I asked kanina at ang sagot ng DOF, hindi dahilan dahil mawawalan kayo ng revenue. Tama po? 40 MONDAY, SEPTEMBER 28, 2015

REP. QUISUMBING. Mr. Speaker, with regard to REP. COLMENARES. You just gave P4.7 the particular measure that is being talked about, this billion sa kuryente ng mayayamang mga kumpanya, is a particularly complex issue, Mr. Speaker, as it could Mr. Speaker; P300 million lang ang hinihingi dito lead to other loopholes in the tax collection system. para matanggal ang VAT sa system loss. Wala bang puso ang Aquino administration na mag-isip man REP. COLMENARES. Loopholes kapag tinanggal lang, right here and now, the DOF officials can say, ang VAT sa system loss? May we know the explanation “Okay na nga, P300 million lang naman iyan, sige to that, Mr. Speaker? Hindi ko na-gets iyon eh. na. Anyway, accounting problem lang naman ito.” I mean, can the Filipino people accept the fact na REP. QUISUMBING. Mr. Speaker, there is a hindi tatanggalin ang VAT sa presyo ng systems loss correlation between the input VAT and the output just because may accounting problem na mangyayari VAT. If you were to remove that, it would disrupt the kapag tinanggal iyan? Is that the position of the DOF, chain, Mr. Speaker, and it would lead to it not being Mr. Speaker? reconciled. REP. QUISUMBING. Mr. Speaker, the Department REP. COLMENARES. It would lead to? Sorry, I of Finance, again, its primary mandate is to raise did not hear it. revenues on behalf of the government in accordance with existing laws and regulations, Mr. Speaker. REP. QUISUMBING. It would not reconcile, Mr. Speaker, with the input and the output values. REP. COLMENARES. Thank you po. If the mandate of the DOF, and I am sure the government’s REP. COLMENARES. So, it is an accounting mandate, is to raise revenue, why did we pay P2.1 problem. Tama? billion sa Texas Instruments? Why did we pay P1.25 billion sa Hanjin? Why did we pay P1.4 billion sa REP. QUISUMBING. Yes, Mr. Speaker. Phoenix Semiconductor? Why are we paying P5 billion sa Maynilad? Why are we paying P70 billion REP. COLMENARES. Yes, yes, it is an accounting sa Manila Water? Why are we paying P7.5 billion problem, mahihirapan kayong i-calculate. Hindi ba? sa LRT 1, Mr. Speaker? What is the reason if this So, for that matter, sige na, ituloy na iyong VAT sa is what the government’s mandate is? Bakit bigay systems loss kasi mahihirapan kaming i-monitor at kayo nang bigay sa mayayamang mga kumpanya i-calculate ito. pero singil naman kayo nang singil sa mahihirap na Magkano po ba ang mawawala sa atin kapag taumbayan? tinanggal natin ang VAT sa system loss sa kuryente? P300 million, Mr. Speaker—I hope our colleagues are listening, Mr. Speaker. This Bill is pending before REP. QUISUMBING. Roughly, P300 million, Mr. the House of Representatives and I really hope that the Speaker. House will overrule the objection of the DOF. Let us assert naman our rights. P300 million—tatanggalin ang REP. COLMENARES. P300 million ang VAT sa presyo ng kuryente. mawawala sa gobyerno kapag tinanggal ang VAT This House of Representatives, at the end of sa systems loss? Kahit iyon po, i-oppose ng DOF, this session, can tell the Filipino people, “We were i-oppose ng Aquino administration iyan. I mean, concerned sa inyong kalagayan, and we approved a Bill you just paid Texas Instruments P2.105 billion sa na tanggalin ang VAT sa systems loss.” Mr. Speaker, kuryente nila. You just paid Hanjin P1.25 billion sa iyon na lang ang hinihingi po dito. kuryente nila. You just paid Phoenix P1.4 billion sa Is there any way na mapalitan ang isip ng DOF sa kuryente nila. Pero P300 million po hindi kayang pag-oppose dito sa pagtanggal ng VAT sa systems loss ibigay ng gobyernong Aquino sa mamamayang sa kuryente, Mr. Speaker? Pilipino? Is that what the DOF is saying, Mr. Chair, Mr. Speaker? REP. QUISUMBING. Not at this time, Mr. Speaker. It would potentially lead to other tax measures being REP. QUISUMBING. Mr. Speaker, the DOF passed that may significantly impact the revenue, Mr. is primarily tasked with raising revenues for the Speaker, the national government. expenditures of the government. Hence, while it is fully understanding of the issues that this Bill seeks to REP. COLMENARES. Thank you for that, Mr. address, it will disrupt the revenue chain, Mr. Speaker, Speaker. and, therefore, at this point, the DOF is not in favor of Am I allowed to ask questions on savings, Mr. those particular measures. Speaker, or should I reserve it? Or can the DOF answer MONDAY, SEPTEMBER 28, 2015 41 issues on savings? Because my next question, Mr. REP. COLMENARES. P319 billion. Speaker, is about—next slide please—the definition Ituloy na lang po natin hanggang 2012. Nung 2012 of savings, para hindi na ako magtanong mamaya kay po, magkano? Congressman Ungab. Is that all right? REP. QUISUMBING. But this is net financing, REP. QUISUMBING. Mr. Speaker, as much as Mr. Speaker. this humble Representation would like to, that does not fall under the DOF and its attached agencies, Mr. REP. COLMENARES. Pardon? Speaker. REP. QUISUMBING. This is net borrowing, Mr. REP. COLMENARES. Thank you. Speaker. I am sure the DOF has a lot of say in the definition So, the net borrowings, Mr. Speaker, for 2014 … of savings, but anyway—next slide please. Next slide. Next slide. Next. REP. COLMENARES. For 2012. Magkano po pala ang utang natin noong 2015 po? Magkano po ba ang current debt natin ngayon REP. QUISUMBING. Sorry, 2012, Mr. Speaker, is po, in terms of—how much was the total debt as of P538 billion, Mr. Speaker. yesterday, both domestic and foreign, Mr. Speaker? REP. COLMENARES. P538 billion. REP. QUISUMBING. Mr. Speaker, as of the end Magkano po ba ang deficit natin noong 2012 sa July, our national debt stands at P5.84 trillion, Mr. budget, ang budget deficit natin? Speaker. REP. QUISUMBING. In 2012, Mr. Speaker, P242.8 REP. COLMENARES. P5.84 trillion as of July billion, Mr. Speaker. 2015? REP. COLMENARES. P242.8 billion ang deficit. REP. QUISUMBING. Yes, Mr. Speaker. Meaning to say, ito lang ang income natin, ganito kalaki ang budget natin, kaya may deficit tayo sa budget and REP. COLMENARES. Magkano po ba ang foreign income, tama po? diyan? REP. QUISUMBING. Yes, Mr. Speaker. REP. QUISUMBING. As of end July 2015, P1.988 trillion, Mr. Speaker. REP. COLMENARES. Tama. So, P242 billion noong 2012. What about 2013 po, magkano? REP. COLMENARES. P1.98 trillion, at ang utang sa domestic is … REP. QUISUMBING. In 2013, our deficit was P164 billion, Mr. Speaker. REP. QUISUMBING. P3.858 trillion, Mr. Speaker. REP. COLMENARES. P164 billion ang deficit. REP. COLMENARES. P3.85 trillion. Okay, thank you po. And then 2014 po? Magkano po ang inutang lang natin for the year of 2014 po? REP. QUISUMBING. P73 billion, Mr. Speaker.

REP. QUISUMBING. Mr. Speaker, actually, for REP. COLMENARES. P73 billion. P538 billion ang 2014, it is P175 billion, Mr. Speaker. inutang natin noong 2012 pero ang deficit natin ay P242 billion lang? Puwede po bang ma-explain iyan? Akala REP. COLMENARES. So, umutang tayo noong ko may deficit tayo sa budget na P242 billion, so uutang 2014 ng P175 billion, tama po? tayo ng P242 billion para pumuno doon sa deficit natin sa budget. So, bakit lumampas po yata iyong inutang natin REP. QUISUMBING. Yes, Mr. Speaker. sa deficit dahil P538 billion ang inutang natin when the deficit was only P242.8 billion noong 2012? REP. COLMENARES. What about for 2013 po, magkano ang inutang natin? REP. QUISUMBING. Mr. Speaker, in 2012, we had P291 billion change in cash for the year, which meant REP. QUISUMBING. In 2013, P319 billion, Mr. that we had to beef up the treasury by borrowing P538 Speaker. billion, Mr. Speaker. 42 MONDAY, SEPTEMBER 28, 2015

REP. COLMENARES. I know, Mr. Speaker. REP. QUISUMBING. For liquidity purposes, Mr. Pero ang deficit natin was P242 billion, so bakit pa Speaker. tayo nangutang lampas doon sa deficit ng budget, Mr. Speaker? REP. COLMENARES. Do we do that every year? Hindi naman. REP. QUISUMBING. I am sorry, Mr. Speaker. Could you repeat the question? REP. QUISUMBING. No, Mr. Speaker, not necessarily. REP. COLMENARES. Yes. Ang ating deficit ay P242 billion. Nangutang tayo ng P538 billion. Bakit REP. COLMENARES. So when did we last do it, tayo nangutang ng lampas sa deficit? Ano ang dahilan Mr. Speaker, other than 2012? Was that the last time po noon? we did it?

REP. QUISUMBING. Mr. Speaker, the national REP. QUISUMBING. Mr. Speaker, it is not a year- government raised—one moment, Mr. Speaker. on-year practice. However, we did this in 2014, 2013, 2012. We did REP. COLMENARES. Yes, Mr. Speaker. not do this in 2011 and 2009.

REP. QUISUMBING. Mr. Speaker, we can submit REP. COLMENARES. So, we did it in 2011, 2012, to the Gentleman reconciliation between the—to 2013 and 2014? summarize, Mr. Speaker, the difference lies in payment for amortizations, Mr. Speaker, and the change in REP. QUISUMBING. Not in 2011, Mr. Speaker. cash. REP. COLMENARES. Not in 2011? REP. COLMENARES. Can you repeat it, please, I did not quite hear it? REP. QUISUMBING. In 2012 to 2014.

REP. QUISUMBING. Mr. Speaker, the difference REP. COLMENARES. So, 2012, 2013, 2014. lies in the amortization requirement plus the change in Are we going to do it in 2015? Uutang tayo ng pera cash, which is ... kasi—parang hindi ko po maintindihan, para magkaroon ng cash ang treasury. REP. COLMENARES. What is a change in cash? Nagpalit tayo ng pera from peso to something else, REP. QUISUMBING. Mr. Speaker, Your Honor, Mr. Speaker? yes, we would be doing this in 2015 at a much smaller value than before. REP. QUISUMBING. Mr. Speaker, the change in cash pertains to beefing up the stores in the National REP. COLMENARES. What happens if we do not Treasury, Mr. Speaker. beef up the cash of the National Treasury, do we go bankrupt or what? REP. COLMENARES. Beefing up the stores? REP. QUISUMBING. Mr. Speaker, Your Honor, REP. QUISUMBING. Cash in the National Treasury. there is a lag sometimes between the collected revenues and obligations that are due at the beginning REP. COLMENARES. The cash. So umutang tayo of the year. It is necessary to beef up the reserves para i-beef up iyong cash? so that we are able to pay for the beginning year’s obligations. REP. QUISUMBING. Yes, that is accurate, Mr. Speaker. REP. COLMENARES. How can you—what do you mean beef up the reserves? In 2012, Mr. Speaker, ang REP. COLMENARES. At ano ang dahilan bakit na-collect nating revenue is P1.242 trillion. Halimbawa, kinulang ng cash ang National Treasury? ang budget natin ay lumampas doon sa na-collect—I will wait for the distinguished Sponsor, he is being REP. QUISUMBING. For liquidity purposes, Mr. briefed. I will just wait. Speaker. REP. QUISUMBING. One moment, Mr. Speaker, REP. COLMENARES. For what? Your Honor. MONDAY, SEPTEMBER 28, 2015 43

REP. COLMENARES. Yes. REP. QUISUMBING. Yes, Mr. Speaker, Your Honor, the amortization of loans. REP. QUISUMBING. Mr. Speaker, Your Honor, the deficit target, for example, in 2012 was not achieved, REP. COLMENARES. So, mangungutang tayo that is why there was a remaining cash left over for para pambayad sa utang natin, tama po? 2013 kaya nadagdagan po. REP. QUISUMBING. Yes, Mr. Speaker, Your REP. COLMENARES. So, mali pala ang calculation Honor. natin. Umutang tayo ng P538 billion pero medyo na- overshoot natin at may natira pa namang cash para sa REP. COLMENARES. Ito iyong sinasabing debt 2013, tama po? trap, ano, pero wala po ba sa budget iyong amortization ng utang o nakalagay na po sa budget iyan? REP. QUISUMBING. Yes, Mr. Speaker. REP. QUISUMBING. No, it is not included in the REP. COLMENARES. Yes. So, nangutang tayo, budget, Mr. Speaker, Your Honor. magbabayad ng interes e useless pala iyon kasi we did not need to loan that much, tama po? Kasi mayroon REP. COLMENARES. Bakit po wala siya sa naman pala, tama po ba? budget? Billions po ito, wala siya sa budget? Sino po ang nagbibigay ng pera dito? REP. QUISUMBING. Yes, Mr. Speaker. REP. QUISUMBING. These are automatic REP. COLMENARES. Sino po ang magbabayad appropriations, Mr. Speaker, Your Honor, and it forms ng interest, DOF o taumbayan? part of debt servicing.

REP. QUISUMBING. Taumbayan po. REP. COLMENARES. Okay, so automatic appropriations, so hindi na iyan dumadaan sa Kongresong REP. COLMENARES. Taumbayan. Sino po ang ito, tama po? nag-miscalculate, taumbayan o DOF? REP. QUISUMBING. Yes, Mr. Speaker. REP. QUISUMBING. Yes, Mr. Speaker, Your Honor. However, if there is excess cash, the DOF just REP. COLMENARES. So every year we do that. place it and the income comes back to the national Iyon rin po ba ang dahilan kung bakit na-miscalculate government. ninyo ang deficit? Ang deficit po natin noong 2013, P164 billion lang pero ang inyong inutang noong REP. COLMENARES. Yes, but nautang mo na, 2013 ay P319 billion. Ganoon po rin iyong dahilan nagbabayad ka na ng interes, hindi po ba? So, ang noon—change of cash? tanong ko po doon, sino ang nagkamali doon sa pag- calculate at na-overshoot? It was the DOF, tama po? REP. QUISUMBING. One moment, Mr. Speaker, Your Honor. REP. QUISUMBING. Mr. Speaker, Your Honor, you cannot anticipate a one-to-one ratio for the REP. COLMENARES. Thank you. projected expenses and the actual borrowings because the disbursements later on may be different. REP. QUISUMBING. Mr. Speaker, Your Honor, this is due to the extended maturity of some obligations. REP. COLMENARES. So, hindi talaga ito exact science, ang ibig ninyo pong sabihin, therefore, okay, REP. COLMENARES. Sorry, I beg your pardon, acceptable po iyon. ano ulit iyon? Bakit tayo umutang ng P319 billion kung ang deficit natin noong 2013 ay P164 billion lang? REP. QUISUMBING. Yes, Mr. Speaker. Dinoble po natin?

REP. COLMENARES. Acceptable, pero ang REP. QUISUMBING. Mr. Speaker, Your Honor, magbabayad po taumbayan nga, ano. Bakit po naulit this is to pay for the obligations which matured in ito noong 2013? Teka muna lang po, dalawa pala ang 2014. reasons ng pag-borrow, sabi ninyo. Ang unang reason is iyong cash, ano iyon, change of cash at pangalawa, REP. COLMENARES. Paying the principal of the amortization? Amortization ng ano po, ng loan din? matured obligations? 44 MONDAY, SEPTEMBER 28, 2015

REP. QUISUMBING. Yes, Mr. Speaker, Your REP. QUISUMBING. Yes, Mr. Speaker, Your Honor. Honor.

REP. COLMENARES. Wala po ba sa budget iyong REP. COLMENARES. Okay. Nasa budget ba iyan, pagbayad ng principal na utang? nasa NEP ba iyan o wala?

REP. QUISUMBING. No, Mr. Speaker, Your Honor. REP. QUISUMBING. Yes, Mr. Speaker, Your Honor. REP. COLMENARES. Wala rin? So, wala doon iyong amortization sa budget, wala din doon iyong REP. COLMENARES. Nasa NEP din, so, dumadaan principal? So, ano po ang nalalagay sa budget in terms din sa Kongresong ito ang bayad. Nasa budget din iyong of debts at utang? principal, tama?

REP. QUISUMBING. Interest payments, Mr. REP. QUISUMBING. Under the BESF, Mr. Speaker, Your Honor. Speaker, Your Honor.

REP. COLMENARES. So interest lang iyong REP. COLMENARES. Sorry? nilalagay sa budget, tama? REP. QUISUMBING. It is under the BESF, Mr. REP. QUISUMBING. Yes, Mr. Speaker. Speaker, Your Honor.

REP. COLMENARES. So, magkano ang naka-allot REP. COLMENARES. In the BESF, okay. So, sa 2016 na pambayad ng utang, Mr. Speaker? noong 2015 po, magkano naman iyong ating naka- allocate na utang noong 2015? REP. QUISUMBING. Roughly, P347 billion, Mr. Speaker, Your Honor. REP. QUISUMBING. In 2015, for interest payments, Mr. Speaker, Your Honor, it is P361 billion. REP. COLMENARES. So, P347 billion ang ibabayad natin. Sa interest po ba iyan sa 2016 budget? REP. COLMENARES. So, P361 billion; sa 2014 po, paabutin natin hanggang 2012 na lang para ... REP. QUISUMBING. Principal amortization, Mr. Speaker, Your Honor. REP. QUISUMBING. Sige po—2012, P312.8 billion; 2013, P323.4 billion; 2014, P321.1 billion. REP. COLMENARES. Principal, kasama po ang principal diyan? REP. COLMENARES. In 2012 siguro.

REP. QUISUMBING. It is P392 billion in interest REP. QUISUMBING. In 2012 po, P312.8 billion. payments in 2016, Mr. Speaker, Your Honor. REP. COLMENARES. So, P312.8 noong 2012. REP. COLMENARES. So, P392 billion. May iba Noong 2013? pa ba tayong budget allocation sa pambayad ng utang sa 2016, Mr. Speaker, maliban sa P392 billion? REP. QUISUMBING. It is P323.4 billion, Mr. Speaker. REP. QUISUMBING. Just the interest payments, Mr. Speaker, Your Honor. REP. COLMENARES. Okay. Sa 2014?

REP. COLMENARES. I thought the P392 billion REP. QUISUMBING. It is P321.1 billion, Mr. is for interest payments alone. Kasama po ba dito ang Speaker, Your Honor. principal? REP. COLMENARES. Okay, so kumpletuhin na REP. QUISUMBING. No, sorry, Mr. Speaker, lang po natin. So, P327 billion noong 2016 ang principal Your Honor, the principal for debt amortization is P347 naman, tama po? billion. REP. QUISUMBING. Opo. REP. COLMENARES. So, it is P347 billion sa 2016? REP. COLMENARES. Okay. MONDAY, SEPTEMBER 28, 2015 45

REP. QUISUMBING. In 2016, the proposed is may P416 billion din tayo para sa amortization pero P327 billion for debt amortization. umutang tayo ng P538 billion. Sabi ninyo, para din sa amortization and so, bakit pa tayo umutang para REP. COLMENARES. Okay. Sa 2015 naman, sa amortization e mayroon namang budget na P700 magkano iyan? billion para sa interest at amortization sa 2012 budget, Mr. Speaker? REP. QUISUMBING. It is P414 billion, Mr. Speaker, Your Honor. REP. QUISUMBING. Mr. Speaker, Your Honor, the amount that was mentioned earlier in 2012, P538 billion, REP. COLMENARES. Pardon? this included some obligations that were planned but did not push through and that is why we had an excess, REP. QUISUMBING. It is P414 billion, four-one- Mr. Speaker, Your Honor. four. REP. COLMENARES. Ano po? These were REP. COLMENARES. P414 billion. Noong 2014 amortizations na hindi ninyo naisip na babayaran for naman? that year? Ibig sabihin, na-miscalculate natin iyong amortization payment natin for 2012? REP. QUISUMBING. It is P354.5 billion, Mr. Speaker, Your Honor. REP. QUISUMBING. No, Mr. Speaker, Your Honor. There were some programs in the pipeline na REP. COLMENARES. P354.5 billion. Ang 2013 po? hindi po natuloy, hindi pa po babayaran, kaya po may excess from the amount that was estimated. REP. QUISUMBING. For 2013, it is P235.5 billion, Mr. Speaker, Your Honor. REP. COLMENARES. Hindi ko pa rin maintindihan po. Humingi kayo ng P416 billion para pambayad sa REP. COLMENARES. Okay. Ang 2012? amortization pero nangutang pa kayo later on para dagdag sa amortization. Bakit hindi siya masagot REP. QUISUMBING. It is P416.9 billion. ng P416 billion? Galing mismo sa DOF iyan na ang babayaran nating amortization ay P416 billion lang po REP. COLMENARES. P416.9 billion. So, ang pero biglang sasabihin ngayon na actually, kulang pa tanong ko po ay ganito. Noong 2012 po, nag-allocate pala iyon kaya nangutang pa kayo ng P538 billion para tayo sa budget ng P416 billion na pambayad ng pambayad sa amortization na hindi ninyo nabayaran amortization, tapos, nagbigay rin tayo ng P312 billion from the P416 billion. para naman sa interes. So, ang total po nito ay mga P700-plus billion na, tama po? SUSPENSION OF SESSION

REP. QUISUMBING. Yes, Mr. Speaker. REP. QUISUMBING. Mr. Speaker, can we request for a two-minute suspension of the session. REP. COLMENARES. Bakit pa tayo nangutang ng P538 billion noong 2012? Ang sabi ninyo, ang THE DEPUTY SPEAKER (Rep. Puno). The deficit natin ay P242 billion pero nangutang tayo ng session is suspended. P538 billion. Ang dahilan po doon, ang sabi ninyo, ay change of cash at pambayad sa amortization. So, ano pa It was 6:28 p.m. po ba ang binayaran nating amortization e may budget na po kayong inilaan for amortization and interest sa RESUMPTION OF SESSION 2012? Did we miscalculate again the payments for amortization, Mr. Speaker? At 6:31 p.m., the session was resumed.

REP. QUISUMBING. The principal amortization, THE DEPUTY SPEAKER (Rep. Puno). The Mr. Speaker, Your Honor, is not part of the budget. session resumes. Therefore, the P538 billion is for the net financing which includes other obligations as well, Mr. Speaker, REP. BONDOC. Mr. Speaker, Your Honor, we Your Honor. beg the indulgence of the honorable Dep. Minority Leader and the honorable Sponsor to acknowledge the REP. COLMENARES. Yes, ang tanong ko lang presence of some guests in the gallery. We have the po is this. May budget tayo na P312 billion sa interes, guests from Sudipen, La Union of the Cong. Catalina 46 MONDAY, SEPTEMBER 28, 2015

“Baby” G. Leonen-Pizarro of ABS Party-List. They are REP. QUISUMBING. Mr. Speaker, Your Honor, this Jerry Ladio, Alexander Patricio Tomboc, Tita Mostoles, is not a miscalculation. The DOF has the reconciliation Marcelina Leonen, Jovita Amboni, Rodolfo Luquingan, and these are several hundreds—you know, these are Reynaldo Sagud and Ferdinand Lacar, guests from many different loans, each of which have different Sudipen, La Union, of the honorable Congresswoman terms, different amortizations, different maturities. We Catalina Leonen-Pizarro of ABS Party-List. can submit to the Gentleman a list of all these for his appreciation. THE DEPUTY SPEAKER (Rep. Puno). Please rise. (Applause) We welcome to the House of Representatives REP. COLMENARES. Yes, Mr. Speaker, but you our guests from La Union. Thank you for your visit. asked for P416 billion for amortization in 2012. So, ibig sabihin, inaral na ninyo ang maturity ng mga loans REP. BONDOC. Mr. Speaker, to resume his na ito, and these are different loans pero nangutang interpellation, I move for the recognition of our Dep. pa kayo ng P538 billion para pambayad na naman sa Minority Leader, the Honorable Colmenares. amortizations and so, there must be a miscalculation here. Otherwise, ang hiningi ninyo noong 2012 would THE DEPUTY SPEAKER (Rep. Puno). The Sr. not have been P416 billion. Dapat mas malaki ang Dep. Minority Leader, the Honorable Colmenares, is hiningi ninyo for amortization, Mr. Speaker, pero hindi recognized to resume his interpellation. e, maliit ang hiningi ninyo at ang sabi ninyo, “P416 billion lang for amortization kaya nangutang pa kami REP. COLMENARES. Thank you, Mr. Speaker. para sa amortization.” Hindi po ba ganyan iyan? Ibig So, we were just asking the parliamentary status sabihin, maliit po kaya kinulang po. Ito lang pala ang kumbaga, Mr. Speaker. Mayroon kayong budget na tanong ko po. P312 billion for interest, mayroon po kayong budget for amortization na P416 billion, pero umutang kayo REP. QUISUMBING. First, iyong amortization ng P538 million pa noong 2012 partly, sabi ninyo, para is not part of the budget, Mr. Speaker, Your Honor. doon sa amortization, so bakit pa po may amortization The Department of Finance found that there were kung nandiyan naman po siya sa budget? Iyon po ang favorable economic conditions and they were able to tanong, Mr. Speaker. take advantage of these conditions to be able to build up reserves for 2013 in 2012. REP. QUISUMBING. Mr. Speaker, Your Honor, we can submit a reconciliation for the different REP. COLMENARES. I know, Mr. Speaker, na debts. These obligations comprise several hundred nasa budget siya pero,hindi na siya pinapaaprubahan debts, all of which have different maturities, rates dito dahil automatic appropriations siya. Based sa of amortization, et cetera. We can submit the calculation ng DOF, sa BESF of 2012, P416 billion reconciliation for the appreciation of the Gentleman ang babayaran natin sa amortization. Kinapos po ba for the different values. ito na kaya kailangan nating mangutang para bayaran iyong iba pang amortization na hindi na-cover ng P416 REP. COLMENARES. Mr. Speaker, that is a very billion? Tama po ba iyon? costly miscalculation na mag-reconciliation. I am sure expert na po tayo ngayon sa pagbayad ng utang as we REP. QUISUMBING. Yes, Mr. Speaker. have been paying utang for the last 100 million years, Mr. Speaker. So, how can it be na hindi ma-explain ng REP. COLMENARES. So, kung ganoon po iyon, DOF ngayon bakit pa siya nangutang at kanina, and I na-miscalculate ang P416 billion. So, kung ganoon po am sure the distinguished Sponsor is having a briefing pala, that is a miscalculation. Iyon naman po ang ibig from the DOF, very confident pa ang DOF na nagsabi, kong sabihin kasi kung hindi siya na-miscalculate, “A, iyong P538 billion, pambayad po namin sa utang tamang-tama ang nilagay sa BESF, hindi na kailangang iyon e,” pero ngayon bigla nalang, “Hindi pa namin mangutang. Anyway, Mr. Speaker, kung ganoon pala, I ma-reconcile.” We cannot reconcile billions of pesos, would really ask for the reconciliation copy. Kailan po Mr. Speaker? I mean, ayaw nating payagan iyong P300 ba kaya masa-submit iyon? million sa pagtanggal ng VAT sa systems loss pero itong billions ay hindi natin ma-reconcile ngayon. Mr. REP. QUISUMBING. We can submit it by Speaker, ito ang danger ng automatic appropriations e, tomorrow, Mr. Speaker. hindi na nga dumadaan dito, tapos, ngayon may mali pa pala. So, ang proposal po ng DOF is, isa-submit ang REP. COLMENARES. By tomorrow, Mr. Speaker. reconciliation at hindi nila ma-reconcile ngayong gabi, Iyon po ang isang hindi maintindihan kasi ng taong- Mr. Speaker. bayan na palagi, medyo nami-miscalculate ninyo MONDAY, SEPTEMBER 28, 2015 47 ang billions and siyempre, hindi ninyo maiwasang REP. COLMENARES. Contingent liabilities, ano magduda kami. Automatic appropriation na nga ito, po ba ang ibig sabihin ng contingent liabilities? May tapos, biglang lumobo ang utang, especially since, I liability ang gobyerno? still remember in one of my first budget hearings I attended dito sa House, the DOF and the DBCC were REP. QUISUMBING. Yes, Mr. Speaker, Your asked, “Ano po ba ang rule ninyo sa pangungutang?” Honor, in case the government is not able to fulfill Ang sabi ng DOF and the DBCC—I still remember contractual obligations in the PPP Program. this—“Kung ano po ang deficit, iyon lang po ang inuutang.” REP. COLMENARES. In case the government is That was the statement kahit ungkatin pa natin not able to fulfill contractual obligations, tama po? iyong record of proceedings po. Kung P200 billion ang deficit, uutangin po natin P200 billion din. That REP. QUISUMBING. Yes, Mr. Speaker, Your Honor. is why ang progression ng utang ay kina-calculate based on the deficit, ganito nga po iyon. Ngayon, REP. COLMENARES. Yes, pero kapag na-fulfill biglang nagbago ang mundo. Ang sabi, kahit pala ng gobyerno ang contractual obligations, hindi na natin P242 billion lang ang deficit noong 2012, ang utang gagamitin iyong P30 billion. pala is more than the deficit. Doon po ako nagulat sa bagong scenario pong iyon, P538 billion, at lalo po REP. QUISUMBING. That is correct, Mr. Speaker, akong nagugulat na hindi pa ma-reconcile ngayon Your Honor. kung bakit umutang. Iyon po ang dahilan I pursued this line of questioning for some time, especially since REP. COLMENARES. So ito, puwedeng magamit napakasama na ng impact ng utang sa atin. I mean, if at puwedeng hindi magamit, depende kung gagawin we did not pay the P700 billion noong 2012, grabe na ng gobyerno ang kanyang trabaho na i-fulfill ang iyong impact sa ekonomiya sana natin. Marami ka na contractual obligations, tama po? sigurong revenue kaya puwede mo nang ibigay ang VAT sa kuryente, puwede mo nang ibahin ang income REP. QUISUMBING. Yes, Mr. Speaker, Your tax—ang ibig sabihin, puwede mo nang pagbigyan Honor. ang pagbaba ng income tax. Magkano po pala ang ibababa ng revenue loss ng gobyerno kapag papayagan REP. COLMENARES. Yes, P30 billion ang po itong Income Tax Reform Bill dito sa House, Mr. hinihingi ng taxpayers para babaan ang income tax. Speaker, kapag pinababa natin iyong income tax rates Ayaw ng DOF, ayaw ng Aquino administration, pero as proposed in the House, Mr. Speaker? may P30 billion kayo na pambayad ninyo in case hindi ninyo magawa ang contractual obligations ninyo? E REP. QUISUMBING. Roughly, it is P30 billion. di siyempre, ang sagot ng taong-bayan, “gawin ninyo ang contractual obligations ninyo. Bakit kami, hindi REP. COLMENARES. It is P30 billion pesos mapababa ang income tax namin kasi ayaw ninyong pero, Mr. Speaker, mayroon tayong Risk Management mabawasan kayo ng P30 billion pero mayroon pala Program diyan sa budget natin na P30 billion, tama kayong P30 billion na ipambabayad ninyo kapag hindi po? ninyo nagawa ang contractual obligations ninyo?” Makatarungan po ba iyon? REP. QUISUMBING. Yes, Mr. Speaker, Your Honor. REP. QUISUMBING. Mr. Speaker, Your Honor, this is an unprogrammed item. REP. COLMENARES. Yes. Itong Risk Management Program, nandoon din po it sa P30 billion noong last REP. COLMENARES. I know that—yes… budget, tapos, another P30 billion po, tama po? REP. QUISUMBING. It has never been drawn from REP. QUISUMBING. Yes, Mr. Speaker, Your this, Mr. Speaker, Your Honor. Honor, unprogrammed. REP. COLMENARES. Yes, we have heard the REP. COLMENARES. Para saan po itong Risk Unprogrammed Fund argument a long time ago. Management Program, Mr. Speaker? Unprogrammed Fund naman iyan, you know, there is an increase in revenue et cetera, at saka lang REP. QUISUMBING. In case of contingent magagastos but every year, nagagastos po naman iyong liabilities, Mr. Speaker, Your Honor, particularly with Unprogrammed Fund, hindi po ba? So, hindi puwedeng the PPP projects. argument na “unprogrammed” naman iyan. 48 MONDAY, SEPTEMBER 28, 2015

So, ang tanong po is this: mayroong P30 billion REP. QUISUMBING. Should that affect their na hinihingi ang income taxpayers para mapababa financial standing, everybody will be in a more difficult ang income tax ngayon. Ayaw ng gobyerno pero may position, Mr. Speaker, Your Honor. P30 billion kayo na pambayad just in case hindi ninyo magawa ang contractual obligations ninyo. Hindi ba REP. COLMENARES. Yes. Thank you, Mr. Speaker. puwedeng mag-sacrifice ang gobyerno at gawin ninyo Iyan ang tanong ko, actually. So, the Department of ang inyong obligasyon para ang P30 billion na ito ay Finance and the Aquino administration are firm in that mapunta nalang doon sa pagpababa ng income tax? they will not do their contractual obligations in 2016 Hindi po ba puwede iyon? kaya gusto nila may P30 billion na, instead ibigay doon sa taxpayers, dito ilalagay sa Risk Management REP. QUISUMBING. Mr. Speaker, Your Honor, the Program. Tama po? stand of the Department of Finance is that any measure that will affect the revenue … REP. QUISUMBING. Mr. Speaker, Your Honor, the fund in particular that the Honorable Colmenares REP. COLMENARES. So, the Department is speaking about, is a contingent fund only. of Finance is not amenable to do its contractual obligations. REP. COLMENARES. Yes.

REP. QUISUMBING. Mr. Speaker, … REP. QUISUMBING. However, the government is fully committed to fulfilling its contractual obligations. REP. COLMENARES. Ibig sabihin, ayaw ninyo— What… “ayaw namin kasi baka hindi namin magawa iyong contractual obligations namin, so, maglaan na lang tayo REP. COLMENARES. So… ng pondo diyan na P30 billion.” Ayaw ninyo, at the same time, ayaw rin ninyobigyan ang P30 billion na magiging REP. QUISUMBING. I am sorry, Mr. Speaker, deficit kung ibababa ang income tax. Your Honor.

REP. QUISUMBING. Mr. Speaker, Your Honor, REP. COLMENARES. …if the government is for this particular fund, the government has always going to fulfill its contractual obligations, we will not complied with what has been required of it. That is why use the P30 billion in the Risk Management Program, this fund has never been drawn from. tama po?

REP. COLMENARES. So, Mr. Speaker, iyon pala REP. QUISUMBING. Mr. Speaker, Your Honor, e, nangako naman kayo na you have always done your the fund is an unprogrammed one-time fund. The loss contractual obligation so, gagawin ninyo rin iyan sa of the P30 billion is an annual loss. 2016, tama po, hindi ba? REP. COLMENARES. Pero ina-admit ninyo naman REP. QUISUMBING. Yes, Mr. Speaker, Your po kanina, iyong Unprogrammed Funds ay nagagastos Honor. ninyo naman iyan every year, so hindi siya argument na “Unprogrammed naman iyan, hindi naman iyan REP. COLMENARES. Yes, so, kung gagawin magagastos.” ninyo pala, there is no need for the P30 billion. Ibigay Anyway, Mr. Speaker, I would like to leave it at ninyo nalang kaya iyon sa taxpayers para hindi na sila that. It seems that the government, rather than provide maghihirap dito sa injustice na ito— ang pagiging remedy to the Filipino people in terms of income tax overtaxed ng mga taxpayers natin. Iyon nalang naman remedies, mas gusto nilang maglaan ng P30 billion just ang kaunting sacrifice na hinihingi ng tao sa gobyerno in case the government fails to fulfill its contractual e. Di gawin ninyo ang contractual obligations ninyo obligations. Ito, halimbawa, matalo tayo sa arbitration para hindi na tayo magbayad ng P30 billion. sa Maynilad, saan po kukunin iyong P5 billion po na pambayad sa Maynilad? REP. QUISUMBING. Mr. Speaker, Your Honor, the Department of Finance is firm on their stand that REP. QUISUMBING. It will be appropriated, Mr. it would be difficult to grant, to support a reduction Speaker, Your Honor, from the General Appropriations in the income tax rates as it will affect their financial Act. standing. REP. COLMENARES. Yes, but which part of the REP. COLMENARES. Yes. General Appropriations Act will you get it kasi I do MONDAY, SEPTEMBER 28, 2015 49 not see an item in the NEP which says P5 billion for REP. COLMENARES. So, P208 million at nasa Maynilad? agreement po naman iyan, more or less. Kung 2017 pa, so every month of the entire 2016 and the remaining REP. QUISUMBING. It will be appropriated, Mr. months of 2015, nagbabayad tayo P208 million po, Speaker, Your Honor, in the succeeding year, so for tama po? 2017. REP. QUISUMBING. Yes, Mr. Speaker, Your REP. COLMENARES. So, pag sumingil ngayon Honor. ang Maynilad ng P5 billion, ang bayad sa kanila sa 2017 pa po kasi i-a-appropriate ninyo for the 2017 REP. COLMENARES. So, how do we explain that? Budget, tama po? We are going to pay P208 million kasi sa 2017 budget ninyo pa sisingilin o ipaa-appropriate iyong pambayad REP. QUISUMBING. Only if we lose, Mr. Speaker, sa Maynilad pero magbabayad po tayo ng P208 million. Your Honor. Who will pay for that po?

REP. COLMENARES. Only if what? Sorry. REP. QUISUMBING. It will be appropriated, Mr. Speaker, Your Honor in the General Appropriations REP. QUISUMBING. Only if we lose the arbitration, Act. Mr. Speaker, Your Honor. REP. COLMENARES. It will be the Filipino people REP. COLMENARES. Yes, of course. So, for pa rin through the taxpayer’s money, kaya pala kinakapos the meantime, may interes po ba iyon kapag hindi ang revenue po natin. Why not pay it in 2016? Natalo ka nabayaran? Halimbawa, natalo tayo next month, so na, so pay it in 2016. Hindi po ba puwede iyon? may interes po ba iyon? REP. QUISUMBING. Mr. Speaker, Your Honor, there REP. QUISUMBING. None, Mr. Speaker, Your is still a second round of arbitration. It is not yet final. Honor. REP. COLMENARES. Yes. Ang tanong ko kanina, REP. COLMENARES. No interest kapag natalo kung matalo tayo this month, kailan ninyo ipapasok iyong ka sa arbitration? Akala ko po kanina, sabi ninyo, may appropriation for that? Sa 2017 po ang sabi ninyo. P200 million per month po na sisingilin? REP. QUISUMBING. Mr. Speaker, Your Honor, REP. QUISUMBING. Those were the accrued we certainly do not intend to lose so that should we losses for that time period, Mr. Speaker, Your in the …. Honor. REP. COLMENARES. Should we in the, ano? Of REP. COLMENARES. So, ibig sabihin kapag P5 course, what do you mean? billion na iyan, it will be P5 billion in 2017? REP. QUISUMBING. In that event, we can avail of REP. QUISUMBING. This will increase, the unprogrammed appropriations under three conditions, amount will increase but this is not interest, these are Mr. Speaker, Your Honor. continued losses. REP. COLMENARES. So, mayroon kayong REP. COLMENARES. Okay. So, dadagdag siya pagkukunan sa 2016 budget for that? every month by how much po? REP. QUISUMBING. Yes, Mr. Speaker. REP. QUISUMBING. Roughly, Mr. Speaker, Your Honor, it is the initial value that was placed in their letter REP. COLMENARES. Saan po iyon? but that will have to be validated. REP. QUISUMBING. Mr. Speaker, Your Honor, REP. COLMENARES. Yes, pero magkano po ang yes, there is a fund for that but it will only be released estimate ng DOF based on the formula? Nag-estimate again under these three conditions,. na kayo kanina doon sa first letter. REP. COLMENARES. Yes, I know but which item REP. QUISUMBING. It is P208 million per in the 2016 NEP is it stated? Anong klaseng item po month. iyan? 50 MONDAY, SEPTEMBER 28, 2015

REP. QUISUMBING. It is under the Risk REP. QUISUMBING. Yes, Mr. Speaker, Your Honor. Management Fund, Mr. Speaker. REP. COLMENARES. Yes. Mayroon din tayong REP. COLMENARES. So, may Risk Management unobligated allotment under R.A. No. 10633 in 2014, Program po pala, umikot pa tayo, pumunta pa tayo P275 billion. Tama po ba iyon? sa 2017, mayroon naman pala. Doon kukunin sa P30 billion ang pambayad sa Maynilad, tama po, ng P5 REP. QUISUMBING. Yes, Mr. Speaker, Your billion? Honor.

REP. QUISUMBING. Yes, Mr. Speaker, Your REP. COLMENARES. Yes. Ang total po na Honor. unreleased appropriation and unobligated allotment is P203, 458,059 noong 2013. REP. COLMENARES. Tama. So, kung matalo din tayo sa arbitration ng Manila Water, doon din kukunin REP. QUISUMBING. Yes, Mr. Speaker, Your ang P70 billion for Manila Water based kanina sa sinabi Honor. ninyo po na may sulat ang Manila Water asking P70 billion, tama po? REP. COLMENARES. Yes. Tapos, P392, 081, 425 noong 2014, tama po? REP. QUISUMBING. Yes, Mr. Speaker, Your Honor. We will have to appropriate for that in the REP. QUISUMBING. Yes, Mr. Speaker, Your Honor. succeeding budget in the case of Manila Water. REP. COLMENARES. Yes. Siyempre, Mr. REP. COLMENARES. Kakapusin na, Mr. Speaker. Speaker, Your Honor, maraming katanungan agad dito. Mr. Speaker, I am really, you know, hindi ko ma- Pagsabayin ko na po para mabilis kasi may magtatanong express iyong aking ano dito kasi doon sa P300 million, pa after me. tanggalin lang iyong VAT sa systems loss, ayaw, pero we Ang unang tanong: bakit tayo nangutang e P203 are going to have P30 billion kasi baka hindi magawa billion ang hindi nga ma-release na appropriation— ng gobyerno ang contractual obligations niya. Tapos unobligated allotment, may allotment na hindi pa ngayon, Mr. Speaker, mayroon na namang seven or na-o-obligate? Mayroon, in 2014, P275 billion na may five billion pesos sa Maynilad; actually P7.5 billion allotment na pero hindi na-obligate. Kadami-daming pa sa LRT. So, Mr. Speaker, iyon ang nakakalungkot bilyon po ang hindi naman pala natin nagagamit, sa gobyernong Aquino. Bakit tayo naglalaan ng unreleased appropriations, unobligated allotments, tapos napakalaking pondo para sa pagbayad sa contractual humihingi ng P300 million para tanggalin ang VAT sa obligations na hindi ma-fulfill ng gobyerno pero P300 presyo ng kuryente, ng systems loss, ayaw. Humihingi million lang para matanggal ang VAT sa systems loss ang taumbayan, P50 billion para tanggalin ang VAT ay ayaw natin? sa kuryente, ayaw. Humihingi ang taxpayers, remedy Mr. Speaker, I would like to end there except sa income tax injustice na nangyayari in the last 20 that 2013 lang pala, tama ba na may unreleased years, P30 billion, ayaw. Pero we have these unreleased appropriations kayo na P56 billion noong 2013? It is appropriations, unobligated allotments. Mayroon tayong P56,122,277, 000. Mr. Speaker, tama po ba iyon, under P30 billion para doon sa Risk Management Program na R.A. No. 10352? pambayad kapag hindi naka-fulfill ang gobyerno ng contractual obligations pero P30 billion ang hinihingi REP. QUISUMBING. Give us a moment, Mr. ng taxpayers, ayaw. We have miscalculated the utang, Speaker, to verify. the debt, by billions and billions and yet, ayaw nating magbigay sa taumbayan. So, how do we explain all REP. COLMENARES. Thank you. My next these discrepancies, Mr. Speaker, on this issue? question is, tama ba na may unobligated allotment kayo noong 2013 na P147 billion, Mr. Speaker? REP. QUISUMBING. Mr. Speaker, Your Honor, the unreleased and unobligated appropriations are items REP. QUISUMBING. Yes, Mr. Speaker, Your that are still valid up to the end of 2015. They were Honor, that is correct. appropriated in 2014 but the two-year validity allows that they still can be used up to 2015. REP. COLMENARES. That is correct. Mayroon tayong unreleased appropriation sa 2014 din, P116 REP. COLMENARES. Mr. Speaker, marami po billion? It is P116,360,213,000 tama po, under R.A. ang budgetary items na hindi ma-explain—iyong No. 10633, unreleased appropriations? reconciliation, iyong estimate ng BIR, iyong tax po. MONDAY, SEPTEMBER 28, 2015 51

You know, there are so many issues here na hindi na- allowing this Representation to continue the discussion explain ng DOF, and I am really—the distinguished on the budget of DOF. Sponsor, Congressman Quisumbing is really trying it I have some concerns and insofar as this hard to explain the unexplainable. Representation is concerned, I would like to give I am thinking, Mr. Speaker, maybe pag-usapan justice to my constituency and I know the Sponsor, I nalang natin ang DOF budget some other time if that know him and I know how vibrant are the cooperatives is the case. Mr. Speaker, I do not see any need of in his district in economic and social terms. I am asking continuing this discussion when the data required by the Sponsor if he would be willing to respond to my this House is still forthcoming, Mr. Speaker. So, for questions, Mr. Speaker, Your Honor. me, maybe we should defer the consideration of the DOF budget to some other time na ready na po sila ng REP. QUISUMBING. With pleasure, Mr. Speaker, kanilang data, if I may, Mr. Speaker. Your Honor.

SUSPENSION OF SESSION REP. PAEZ. My first question is, I am interested about the budget of CDA, Mr. Speaker, Your Honor. THE DEPUTY SPEAKER (Rep. Puno). The Last year, if I am not mistaken, the budget was P320 session is suspended. million and then for 2016, the proposal is, it would be increased to P329 million. Is that correct, Mr. Speaker, It was 7:00 p.m. Your Honor?

RESUMPTION OF SESSION REP. QUISUMBING. That is correct, Mr. Speaker, Your Honor. At 7:05 pm., the session was resumed. REP. PAEZ. May I know then the performance THE DEPUTY SPEAKER (Rep. Puno). The of CDA in reaching out to the 24,000 cooperatives session is resumed. for the previous year given that budget, Mr. Speaker, The Dep. Majority Leader is recognized. Your Honor, in terms of the role and functions of CDA, namely: regulatory and developmental, REP. BONDOC. Mr. Speaker, Your Honor, we particularly in training, inspection, examination, so appeal to the honorable Sr. Dep. Minority Leader to on and so forth. allow the interpellation of the Department of Finance to continue to give way to our colleague from the Majority, REP. QUISUMBING. Mr. Speaker, Your Honor, the honorable Representative of the Party-List Coop- the CDA in 2015 has undertaken several activities such NATCCO, with the indulgence of our esteemed Sr. Dep. as trainings. Minority Leader. They have inspected cooperatives as extended support to cooperative development, Mr. Speaker. REP. COLMENARES. Mr. Speaker, without prejudice to the motion that I just made, to defer the REP. PAEZ. My question, Mr. Speaker, Your Honor, deliberation on the budget of the DOF, I will accede to is simple: out of the budget given in the previous year, the request that an interpellation be conducted by the what is the performance of CDA in assisting them? Majority without prejudice to my motion to defer the I learned that there are 24,000 cooperatives in this deliberation of the budget of the DOF, Mr. Speaker. I country, and given that budget, to what extent insofar accede for now to suspend that motion. as its capacity to reach out to this 24,000 cooperatives, because my question is anchored on whether or not the THE DEPUTY SPEAKER (Rep. Puno). The proposed budget is relevant, Mr. Speaker. That is where manifestation of the Honorable Colmenares is noted I am leading to. and the Hon. Anthony Bravo of the... REP. QUISUMBING. Mr. Speaker, Your Honor, the REP. BONDOC. Rep. Cresente C. Paez, Mr. CDA has registered, in 2014, 7,341 cooperatives and Speaker, Your Honor. has inspected, supervised and monitored, and examined 4,850 cooperatives. THE DEPUTY SPEAKER (Rep. Puno). The Hon. Cresente C. Paez is recognized for his interpellation. REP. PAEZ. So, 4,000 plus out of 24,000, the simple arithmetic is 4,000 divided by 24,000, that REP. PAEZ. Maraming salamat, Mr. Speaker. is only about 20 percent more or less, Mr. Speaker, Maraming salamat kay Congressman Colmenares for Your Honor. 52 MONDAY, SEPTEMBER 28, 2015

REP. QUISUMBING. Roughly, Mr. Speaker, Your and budget ceiling by April of 2015. For the DOF, Honor. its bureaus and attached agencies, they separately submitted OSBP generated budgets to the DBM based REP. PAEZ. So, what is the position of CDA in on the budget ceiling as prescribed in the Budget Call. trying to reach out, you know, to have a better output For the approval of the CDA’s 2016 budget, if the for 2016, so that this Representation would be happy DOF’s endorsement is not needed, it is based on the and satisfied that the proposed budget will earn budget proposal that the CDA is supposed to submit to their capacity to reach out to the targeted number of the DBM based on the budget ceiling. cooperatives, Mr. Speaker, Your Honor? REP. PAEZ. Would this not imply that the attitude of REP. QUISUMBING. Mr. Speaker, Your Honor, the DBM, in relation to how the DBM looks at the role in 2016, the CDA will extend technical assistance, will and functions of the CDA in helping the cooperatives, so extend expertise to 22,000 cooperatives in micro and that the cooperatives would be instruments in uplifting small cooperatives. the condition of the people, is not a priority consideration by the DBM, Mr. Speaker, Your Honor? REP. PAEZ. Did I hear it right, 22,000? REP. QUISUMBING. Mr. Speaker, Your Honor, REP. QUISUMBING. Yes, Mr. Speaker, You’re this Representation certainly cannot speak on behalf Honor, 22,000. of the DBM as we are tasked to defend the budget of the Department of Finance. However, I am sure that the REP. PAEZ. With the budget of P349 million? DBM recognizes the contributions of the cooperative sector to national development. REP. QUISUMBING. That is correct. REP. PAEZ. That is very clear insofar as your REP. PAEZ. How is that possible, Mr. Speaker, response to this question is concerned. If the government Your Honor? can afford to make appropriations for giving/granting My understanding is, the original budget proposed huge budgets to different programs of government, and by CDA during the budget call, if I am not wrong, it is a constitutional mandate that one way to uplift the is something within the vicinity of P3 billion to be living conditions of the ordinary people is to strengthen able to satisfy the requirements as mandated in the the cooperatives and in fact, that is the mandate, to create Constitution. May I know the response of the DBM or CDA for that reason, and then here we are, we cannot CDA to that proposal? even afford to appropriate, you know, a very small amount, I do not understand whether this government REP. QUISUMBING. Mr. Speaker, Your Honor, is pro-poor because we all know that cooperatives are the initial budget as proposed by the CDA was give or for the poor. But given that budget, and that is the limit take P5 billion, of which P329 million was the approved that is being requested, I do not think that we are going budget. anywhere insofar as the cooperative movement in this country is concerned, Mr. Speaker, Your Honor. REP. PAEZ. In other words, the proposal was P5 billion but the acceptable figure for consideration by REP. QUISUMBING. Mr. Speaker, Your Honor, this Congress is only P349 million, Mr. Speaker, Your the DBM has the final say on allowing or disallowing Honor. Is that correct? the proposed budget, and not the Department of Finance. However, the Department of Finance is in REP. QUISUMBING. As proposed by the DBM, full recognition of the contributions of the cooperative yes, Mr. Speaker, Your Honor. sector and has tried to work with the CDA very closely to come up with a solution to find additional aid for the REP. PAEZ. May I know the process, the extent cooperative sector in 2016. of the participation or the support of DOF to the CDA budget so that the DBM would be convinced that what REP. PAEZ. Mr. Speaker, Your Honor, during the is being proposed is what the people would want. Committee hearing on the budget of the DOF wherein you presided over that meeting, this Representation REP. QUISUMBING. Mr. Speaker, Your Honor, was given an assurance that to make the CDA more the agencies are asked to submit to the DBM individual effective in their role, perhaps, not so much increase budgets for 2016 through the OSBP or the Online in the budget of the CDA, but it is something that can Submission of Budget Proposal, and this was approved focus in strengthening the cooperatives in the rural areas by the concerned agency head for the new spending so that more inspections can be provided and trainings MONDAY, SEPTEMBER 28, 2015 53 of the cooperative development specialists can also REP. QUISUMBING. Mr. Speaker, Your Honor, be done. It was you, Mr. Speaker, Your Honor, who the Department of Finance need not endorse the encouraged us to have a separate meeting after that budget of the CDA. It is between the CDA, the DBM, Committee hearing and for your information, we came and of course, to decide what would be an acceptable up with an agreement that it is possible to increase the increase for this particular budget, Mr. Speaker, Your budget of CDA and we asked CDA to come up with a Honor. proposal. As a matter of fact, I am in possession of this letter addressed to the Chairperson of the Committee REP. PAEZ. Is it possible for us to come up with on Appropriations and the proposed increase is in the a special provision under the budget of DOF but this amount of P108 million, Mr. Speaker, Your Honor. special provision is meant to increase the budget of CDA by identifying the sources? REP. QUISUMBING. Yes, Mr. Speaker, Your Honor, we are in receipt of that letter as well. The REP.QUISUMBING. Mr. Speaker, Your Honor, breakdown of the summary of the proposal for as previously mentioned, the proposed Budget as it is, additional funding for the CDA was forwarded to the is still on Second Reading and whould be deliberated Department of Finance, Mr. Speaker, Your Honor. further should there be any changes later on. This can include changes in the budgets of particular departments REP. PAEZ. So at this point, is there any action on which can include other items, et cetera, Mr. Speaker, the part of the Committee? Your Honor. So, there is still a chance to be able to increase or decrease budgets as Congress sees fit. REP.QUISUMBING. Mr. Speaker, Your Honor, the Committee on Appropriations maintains that the REP. PAEZ. You mean that you are assuring me of proper time for any possible amendments for the a solution to the problem as to where we can find the budget is during the period of amendments, although source for the proposed increase of the budget of CDA, as the distinguished Gentleman knows, we have been which came from the CDA itself? exhausting all efforts to make sure that we are able to This Representation would not stop raising his help the CDA. voice loud enough so that the Sponsor would be able to consider because, Mr. Speaker, Your Honor, I am REP. PAEZ. Can you give us some kind of just wondering. There is a budget of P30 billion for the enlightenment as to where we can source this P108 Landbank and the DBP, Mr. Speaker, Your Honor. As a million, Mr. Speaker, Your Honor? matter of fact, what is P100 million versus P30 billion? It is the position, and it is out of principle that if there REP. QUISUMBING. Mr. Speaker, Your Honor, is an appropriation to increase or appropriate for the we in the Committee, once the deliberations are capitalization of two banks for a certain compliance—I complete, will take a look at any proposal that is do not know, Mr. Speaker, Your Honor, but I think it submitted for amendments to the GAB, Mr. Speaker, should have been done in the proper venue, for instance, Your Honor. revisiting the Charters of the Landbank as well as DBP so that we will have more time to debate in the REP. PAEZ. Do you have any suggestion to this Committee on Banks and Financial Intermediaries as Representation on how to approach this concern to the objectivity and why we are appropriating out so that things can move on, Mr. Speaker, Your of the taxpayers’ money to capitalize the Landbank Honor? and the DBP. Here you are, Mr. Speaker, Your Honor, you cannot even assure this Representation to provide REP.QUISUMBING. Mr. Speaker, Your Honor, as something for the downtrodden masses, Mr. Speaker, previously discussed in the Committee hearing, it would Your Honor. For me, that is not fair. be best to submit the amendment to the budget of the Cooperative Development Authority during the period REP. QUISUMBING. Mr. Speaker, Your Honor, as of amendments in the deliberations on the General we previously stated, the Committee has worked very Appropriations Bill. closely with the distinguished Gentleman from Coop- NATCCO and the DBM to come up with the possible REP. PAEZ. Is it the understanding of this solution, Mr. Speaker, Your Honor. Representation that this proposal has to be submitted to the DBM, or it would be at the level of the Committee REP. PAEZ. So, before the period of amendments, on Appropriations, or you need a recommendation from that would be taken into consideration, Mr. Speaker, Your the Department of Finance, or it is within the realm of Honor. Is that the message that is being forwarded to this the Committee? Representation, before the period of amendments? 54 MONDAY, SEPTEMBER 28, 2015

REP. QUISUMBING. The period of amendments, examine to ensure the safety and soundness of these Mr. Speaker, Your Honor, would be the proper time for cooperatives, Mr. Speaker. This Representation is so the Gentleman’s concerns. sad with the situation that our cooperatives cannot move forward because this government is not paying REP. PAEZ. Yes, I know but we have to sit down attention, Mr. Speaker. before the period of amendments and work out as to how this can be accomplished and how this can be realized, REP. QUISUMBING. Mr. Speaker, as we said Mr. Speaker, Your Honor. So, this Representation earlier, we are only too happy to work with the is assured by the Sponsor that meetings will be distinguished Gentleman to try to find a solution for conducted? this very important sector.

REP. QUISUMBING. Yes, Mr. Speaker, Your Honor. REP. PAEZ. I should be assured, Mr. Speaker, The Subcommittee which this humble Representation because I had very bad experiences in the previous chairs in the Committee on Appropriations is constantly Congresses when this Representation was promised in contact with the Members of the House who have to many times, and the same, and it’s not coming, Mr. particular concerns. We will only be too glad, Mr. Speaker. Speaker, Your Honor, to continue to work with the Gentleman from the Coop-NATCCO to come up with REP. QUISUMBING. Mr. Speaker, as previously a solution to help the cooperative sector. mentioned, we take very seriously the proposal of all of the Members of Congress, and as previously requested, REP. PAEZ. Can we set a meeting for that, Mr. we can take up this matter in a meeting to be scheduled Speaker, Your Honor, maybe next week? at your convenience, Mr. Speaker.

REP. QUISUMBING. We would be glad to work REP. PAEZ. With that assurance, let me go to the with the Gentleman’s schedule to come out with the next point, Mr. Speaker. meetings, Mr. Speaker, Your Honor. May I know how many, of the 24,000 cooperatives, how many were granted a Certificate of Tax Exemption REP. PAEZ. Have you been furnished already with by the BIR? the proposed P108 million, Mr. Speaker, Your Honor, also its utilization? REP. QUISUMBING. Five thousand plus, roughly, Mr. Speaker, were granted a CTE by the BIR, Mr. REP. QUISUMBING. The Committee is in receipt Speaker. of the letter, Mr. Speaker, Your Honor. REP. PAEZ. And how much is the budget of the REP. PAEZ. You know that our people cannot go BIR? Mr. Speaker, 5,000 is only about 20 percent of the to the field without the appropriation because they total number of cooperatives, meaning, our personnel have nothing for their transportation, for their travel to are, we are short of people to issue CTEs. reach far-flung areas. That is the reality, Mr. Speaker, Your Honor. REP. QUISUMBING. Is the Gentleman speaking of the entire budget for 2016 of the BIR, Mr. Speaker? REP. QUISUMBING. Yes, we have read very thoroughly the letter that was forwarded to us by the REP. PAEZ. Yes, the BIR, Mr. Speaker. CDA, Mr. Speaker, Your Honor. REP. QUISUMBING. It is 10.5 billion, Mr. REP. PAEZ. As a matter of fact, for the record, Speaker. there is a requirement of P65.8 million, Mr. Speaker, Your Honor, for traveling expenses alone, technical REP. PAEZ. Then, how many of the 24,000 assistance, coops supervision and examination program cooperatives have been given a Certificate of Good and monitoring and evaluation of CDA offices. Are you Standing (CGS)? aware, Mr. Speaker, Your Honor, that the good governor of BSP was so excited after learning that insofar as REP. QUISUMBING. Ten thousand plus, Mr. inclusion is concerned, cooperatives have contributed Speaker. a lot in terms of reaching out to the countryside. And yet this government cannot even provide a very REP. PAEZ. Ten thousand? As far as I know, Mr. small amount so that our technical people, examiners, Speaker, it is supposed to be confirmation on the part inspectors, would be able to go to the cooperatives and of the BIR to issue a CTE when a CGS is granted by MONDAY, SEPTEMBER 28, 2015 55 the CDA, but the fact remains that out of 10,000 with a of the constitution and bylaws, that is number two. The CGS, only 5,000 have been granted. To me, it is difficult CGS is number three. Number four, audited financial to justify, to support the budget of the BIR. Here we statement, Mr. Speaker. No more, no less. are, small businesses owned by people—do you not I, together with Senator Lapid and Sen. Bongbong know, Mr. Speaker, a cooperative who is engaged in Marcos, conducted eight roadshows all over the country, supply of inputs and marketing? For instance, I would from the north to the south. There, everybody raised like to access money from Landbank, say, P10 million. their voices, Mr. Speaker. Why? Is it deliberate that the Do you know, Mr. Speaker, what is the requirement BIR will not issue the CTEs? of LandBank so that this cooperative would be able to access loans, Mr. Speaker? It is the CTE. So, kung REP. QUISUMBING. Mr. Speaker. walang CTE, hindi kayo makakautang sa Landbank. Ang ibig sabihin, sa 10,000 cooperatives na mayroong REP. PAEZ. Paano sila maka-access ng loans CGS from the CDA, 5,000 lang o 50 percent ang nila sa bangko? Mayroon tayong LandBank; ating mayroong CTE. Ang ibig sabihin, mayroong pera ang bangko iyan, gobyerno iyan. Then, here you are LandBank, pero wala silang access. Whose fault is it proposing an appropriation for LandBank, P20 na wala silang access? Is it the fault of that ordinary billion; P10 billion for the DBP, so that tayo, Basel cooperative there in the countryside na hindi sila compliant tayo, iyon ang sinasabi. Pero, ano ang naka-access sa LandBank so hindi na sila nakabili ng gagawin mo sa capital na iyan? Anong gagawin abono? Ganoon ba ang ating policy in this country, mo sa pera na iyan na simple CTE lang hindi Mr. Speaker? mabigyan? Ano bang klaseng gobyerno ito? Ano Cooperatives are complaining all over the bang klaseng ahensiya ito? These are poor people, country. Sabi nila, “Congressman, paano kami maka- Mr. Speaker. access sa LandBank? Paano kami maka-access sa We are now lagging behind insofar as the growth of bangko? Hinahanapan kami ng CTE.” Do you know, cooperatives in Asia is concerned. You know how much Mr. Speaker, what the Constitution says? It is the is the combined business of cooperatives in Thailand? policy of this State to see to it that cooperatives are It is P3 trillion versus the Philippines’ P600 billion viable, and the government has to provide certain only. The reason is that our government is not paying intervention, technical education, training, financial attention to it. Ganoon lang kasimple. assistance. Sabi ng Landbank, “Masaya kami. Malaki Nagtataka din ako, bakit ang CDA, under the DOF, iyong aming loan portfolio sa mga kooperatiba.” dapat sa Office of the President ito kasi iyan naman ang Anong malaki na 5,000 lang ang mayroong CTE? batas e. I do not think you would be able to answer me, Sana lumalaki, mas malaki sana kung nabigyan pa Mr. Speaker. There have been so much debates and ng CTE. discussions in the past but this is the only opportunity that I can put this forward. REP. QUISUMBING. Mr. Speaker, based on the meeting that was conducted clarifying the stand REP. QUISUMBING. Mr. Speaker, as previously of the BIR on this matter, the BIR enumerated the mentioned, with regard to the opinion of the government reasons for the issuance of the RMC. However, the for cooperatives, the government certainly sees BIR assured the CDA that it has no intention of cooperatives as a valuable partner in development. That encroaching on the authority of the CDA. As a matter is precisely why this committee has taken great pains of fact, the BIR has agreed to revisit the RMC and to come up with a win-win solution. study, possibly issuing clarificatory rules for the CTE, Now, with regard to the issue with the BIR and Mr. Speaker. the RMC, that was also discussed in the meeting, and the BIR has promised to revisit and take a look at the REP. PAEZ. This Representation, Mr. Speaker, requirements that it has set forth in the RMC to come up has been in this Congress for the last three terms, and with a solution as to not hurt or hinder the cooperative I was the first Congressman elected in 1998, the first sector, Mr. Speaker. during the first introduction of the party-list system in this country, Mr. Speaker. But the point here is, what REP. PAEZ. I think, Mr. Speaker, it is just logical is really the behavior of our agency insofar as—what that we are excited to approve also the budget of the is the perspective? What is the orientation? Is it BIR or not because the BIR has a role to play. So, deliberate or not deliberate? Because insofar as the law there are two budgets for consideration here, my first is concerned, Mr. Speaker, it is very clear, there are only consideration is the CDA, but we cannot move forward four requirements insofar as the law is concerned. Ang in this country because the BIR is not supportive kasama diyan is CGS, certified copy of certificate of enough. So, I move to defer also the consideration of registration, that is one. Number two is certified copy the budget of the BIR, Mr. Speaker. 56 MONDAY, SEPTEMBER 28, 2015

SUSPENSION OF SESSION It was 7:57 p.m.

REP. QUISUMBING. I move for a ane-minute RESUMPTION OF SESSION recess, Mr. Speaker. At 8:12 p.m., the session was resumed. THE DEPUTY SPEAKER (Rep. Puno). The session is suspended. THE PRESIDING OFFICER (Rep. Banal). The session is resumed. It was 7:42 p.m. The Dep. Majority Leader is recognized.

RESUMPTION OF SESSION REP. BONDOC. Mr. Speaker, I move that we defer the deliberation and the debate on General Principles At 7:56 p.m., the session was resumed with Rep. and Provisions. Jorge “Bolet” Banal presiding. THE PRESIDING OFFICER (Rep. Banal). Is there THE PRESIDING OFFICER (Rep. Banal). The any objection? (Silence) The Chair hears none; the session is resumed. motion is approved. The Dep. Majority Leader is recognized. SUSPENSION OF CONSIDERATION REP. BONDOC. Mr. Speaker, I move to close the OF H.B. NO. 6132 period of sponsorship and debate on the budget of the Department of Finance, including its attached agencies REP. BONDOC. Mr. Speaker, I move that we and corporations except the Bureau of Customs, the suspend the consideration of House Bill No. 6132. Bureau of Internal Revenue, and the Cooperative Development Authority. THE PRESIDING OFFICER (Rep. Banal). Is there any objection? (Silence) The Chair hears none; THE PRESIDING OFFICER (Rep. Banal). Is there the consideration of House Bill No. 6132 is hereby any objection? (Silence) The Chair hears none; the suspended. motion is approved. The period of sponsorship and debate on the budget CONSIDERATION OF H.B. NO. 4201 of the Department of Finance, including its attached ON SECOND READING agencies and corporations except for the BIR, BOC and CDA is hereby terminated. PERIOD OF SPONSORSHIP AND DEBATE The Dep. Majority Leader is recognized. REP. BONDOC. Mr. Speaker, I move that we REP. BONDOC. Mr. Speaker, Your Honor, I consider House Bill No. 4201, contained in Committee move that once again we open the debate on the Report No. 163, as reported out by the Committee on General Principles and Provisions, and for that Justice. purpose, recognize the Chairman of the Committee on May I ask that the Secretary General be directed to Appropriations, the Hon. Isidro T. Ungab. read only the title of the measure.

THE PRESIDING OFFICER (Rep. Banal). THE PRESIDING OFFICER (Rep. Banal). Is there The Hon. Isidro “Sid” T. Ungab is recognized to any objection? (Silence) The Chair hears none; the debate on the General Principles and Provisions. motion is approved.* For the interpellation—the Dep. Majority Leader is The Secretary General is directed to read only the recognized. title of the measure.

SUSPENSION OF SESSION With the permission of the Body, and since copies of the measure have been previously distributed, the REP. BONDOC. Mr. Speaker, I move for a few Secretary General read only the title thereof without minutes suspension of the session. prejudice to inserting its text in the Congressional Record. THE PRESIDING OFFICER (Rep. Banal). The session is suspended for a few minutes. REP. DELA CRUZ. Mr. Speaker.

* See MEASURES CONSIDERED (printed separately) MONDAY, SEPTEMBER 28, 2015 57

THE SECRETARY GENERAL. House Bill No. the period of amendments. However, there being no 4201, entitled: AN ACT GRANTING PHILIPPINE Committee or individual amendments, I move that we CITIZENSHIP TO MOHAMAD WASSIM NANAA. close the same.

REP. DELA CRUZ. Mr. Speaker. THE PRESIDING OFFICER (Rep. Banal). Is there any objection? (Silence) The Chair hears none; the SUSPENSION OF SESSION motion is approved.

THE PRESIDING OFFICER (Rep. Banal). The REP. BONDOC. Mr. Speaker, I move that we session is suspended. approve on Second Reading House Bill No. 4201.

It was 8:13 p.m. VIVA VOCE VOTING

RESUMPTION OF SESSION THE PRESIDING OFFICER (Rep. Banal). There is a motion to approve House Bill No. 4201 on Second At 8:13 p.m., the session was resumed. Reading. As many as are in favor, please say aye.

THE PRESIDING OFFICER (Rep. Banal). The SEVERAL MEMBERS. Aye. session is resumed. The Dep. Majority Leader is recognized. THE PRESIDING OFFICER (Rep. Banal). As many as are against, please say nay. (Silence) REP. BONDOC. Mr. Speaker, our parliamentary status is that we are in consideration of House Bill No. APPROVAL OF H.B. NO. 4201 4201 for approval on Second Reading. The Secretary ON SECOND READING General has read the title of the measure. Now, I move that the Explanatory Note of the Bill be THE PRESIDING OFFICER (Rep. Banal). The considered as the sponsorship speech on the measure. ayes have it; the motion is approved. House Bill No. 4201 is approved on Second THE PRESIDING OFFICER (Rep. Banal). Is there Reading. any objection? (Silence) The Chair hears none; the The Dep. Majority Leader is recognized. motion is approved. SUSPENSION OF SESSION REP. BONDOC. Mr. Speaker, there being no Member who registered to interpellate or speak against REP. BONDOC. Mr. Speaker, I move that we the Bill, I move that we close the period of sponsorship suspend the session until ten o’clock tomorrow and debate. morning, September 29.

THE PRESIDING OFFICER (Rep. Banal). Is there THE PRESIDING OFFICER (Rep. Banal). The any objection? (Silence) The Chair hears none; the session is suspended until tomorrow, September 29, at motion is approved. ten o’clock in the morning.

REP. BONDOC. Mr. Speaker, I move that we open It was 8:15 p.m.

Published by the Publication and Editorial Service, Plenary Affairs Bureau The Congressional Record can be accessed through the Downloads Center of the official website of the House of Representatives at www.congress.gov.ph ddc/10082015/1433