# House Committee on Appropriations: DBCC Interpellation - August 17, 2026 Source: https://www.youtube.com/watch?v=1s8_hW7pHbw AI-assisted working draft. AI can make errors. Always check quotations, names, rulings, and other consequential details against the official video. **[00:00:00.000] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-000001) budget ninyo puro press release, puro cuts. **[00:00:02.490] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-000002) So sa pinakasimpleng paraan po Madam Chair, kung **[00:00:05.800] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-000003) pwede po bang ipaliwanag ng DBM, papaano nasasabi na makatao at dapat maging makatao ang budget natin for 2027? **[00:00:14.920] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-000004) Second. **[00:00:15.800] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-000005) Madam **[00:00:16.360] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000006) Chair, Your Honor, **[00:00:17.420] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000007) patungkol **[00:00:18.440] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000008) po doon sa ating budget **[00:00:20.660] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000009) allocation for social sector. Nabanggit po natin kanina na ito pa rin po ang nananatiling **[00:00:25.580] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000010) pinakamataas na sektor sa ating budget. Budget, bagamat kung titignan po natin, **[00:00:30.740] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000011) mayroon pong mga departments na nominally ay kinakitaan po natin ng pagbaba, **[00:00:36.400] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000012) patulad ng DepEd, DOH, at DSWD. **[00:00:40.880] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000013) Ito po ay alinsunod doon po sa ating consideration sa kanilang mga ongoing implementation ng **[00:00:47.900] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000014) kanilang 2026 GAA. **[00:00:50.300] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000015) Kabilang na nga po dyan, ang malaking bahagi po halimbawa sa Department of Education ay **[00:00:56.340] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000016) yung kanila pong astil. Hindi pa nagagamit na pondo para sa mga classroom. **[00:01:01.440] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000017) Kaya kasama po doon sa ating consideration, dahil alam po natin na ito ay **[00:01:06.160] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000018) ipagpapatuloy pa nila hanggang 2027, **[00:01:10.660] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000019) nagkaroon po tayo ng evaluation kung magkano lang po muna sa classroom, pero definitely hindi po zero yung classroom provision for 2027. **[00:01:19.980] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000020) At isang factor nga din po dyan, **[00:01:21.840] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000021) dahil hindi naman po natin idinadagdag doon sa comparison ng DepEd budget for instance, yung **[00:01:28.560] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000022) nabanggit ko po kanina na nakalatag na PPP project for **[00:01:32.220] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000023) construction of classroom building. So ito po ay nakalatag din na i-implement sa 2027. So **[00:01:38.980] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000024) kung atin pong susumahin at isasama po ito sa equation, **[00:01:42.280] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000025) ay karagdagan pa rin po ito sa DepEd budget. **[00:01:46.380] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000026) Patungkol po sa DOH, gayon din po sa DA, **[00:01:50.140] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000027) yun pong bahagi ng pagbaba ng kanilang budget ay attributable. **[00:01:55.700] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000028) Doon din po sa kanilang mga infrastructure. Ito po ang mga infrastructure projects na under 2026, **[00:02:01.428] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000029) katulad po ng kanilang HFEP ng DOH at ng **[00:02:04.795] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000030) farm-to-market roads ng DA na **[00:02:07.780] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000031) during the time that the budget was being prepared ay hindi pa nila nasisimulang i-implement. **[00:02:13.880] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000032) So the DBM has decided na i-maintain yung kanilang level **[00:02:17.980] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000033) kahalintulad nung level ng HFEP at DA sa 2026 NEP dahil **[00:02:23.467] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000034) po batid natin na yung kanilang implementasyon ng HFEP at DOH **[00:02:27.060] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000035) sa 2026 NEP. So yung plan sa **[00:02:29.460] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000036) Farm-to-Market Road ay magsi-spillover hanggang sa 2027. Pero patungkol po doon sa ating **[00:02:35.160] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000037) mga kaguruan, sa ating mga health workers, buo po yung ating provisions, **[00:02:40.280] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000038) kabilang na po dyan yung patuloy na pag-create ng mga additional positions, **[00:02:45.900] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000039) both teaching and non-teaching, yung ating expanded career progression, **[00:02:49.860] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000040) gayon din po yung ating health workforce allocation ay nananatili pong buo po ang ating supporta po dyan. **[00:02:58.060] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000041) Madam Chair, your honor, yung nominal decrease po on the **[00:03:01.200] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000042) budget **[00:03:02.180] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000043) of these social departments are primarily attributable to the continuing **[00:03:07.220] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000044) allocation po nila galing sa 2026. Dahil hindi pa nga po nila ito nasisimulan, **[00:03:13.280] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000045) inaasahan po natin na mag-spill over po ito **[00:03:16.380] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000046) hanggang sa 2027. **[00:03:19.020] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000047) Patungkol po doon sa budget ng ating mga state universities and colleges, talaga **[00:03:24.720] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000048) naman po yung ating **[00:03:25.940] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000049) atensyon ay nandyan. In fact, kung babalikan po natin, Madam Chair, your honor, **[00:03:30.560] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000050) yung ating top 10 departments for this year, **[00:03:34.700] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000051) if you may have noticed, sabi ko nga po sa aking mga kasama sa DBM, this might be **[00:03:39.840] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000052) the first, if not the few times, that **[00:03:43.900] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000053) higher education is reflected separately from basic education. **[00:03:49.520] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000054) Pinapakita lang po nito na **[00:03:51.080] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000055) hindi po natin kinailangang ilamp yung totals ng education sector. Para lang masabi natin na **[00:03:59.080] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000056) ito ay yung may pinakamataas na alokasyon sa GAA. So ibig sabihin, basic education itself, **[00:04:04.500] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000057) malaki po yung ibinuhos natin dyan, **[00:04:06.940] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000058) dagdag pa dito yung ating higher education. At katulad po kanina, nung sinasabi nating example, **[00:04:13.060] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000059) minsan po kasi hindi lang yung GAA or NEP allocation yung mahalagang tignan. Sa **[00:04:18.220] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000060) higher education po kasi, meron tayong tinatawag na special account in the general fund na **[00:04:23.640] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000061) ginagamit natin o yung HEDF para pang suporta, karagdagang suporta sa **[00:04:29.640] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000062) ating mga HUCs and colleges. Kaya nga po, we would like to share to the committee rin po na sa **[00:04:34.900] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000063) tulong po ng GAA ng 2026 na naipasa. **[00:04:39.020] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000064) In fact, we have already released yun pong SARO **[00:04:43.060] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000065) para po masettle na natin yung free **[00:04:46.260] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000066) higher education arrears na naipo natin for the last three academic years. We **[00:04:51.740] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000067) would like to report to Congress na nai-release na po namin ang SARO nito. Sa **[00:04:56.240] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000068) Commission on Higher Education, **[00:04:58.140] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000069) kaya po makakaasa po yung ating mga state universities and colleges na **[00:05:03.240] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000070) matatanggap na po nila ito mula sa CHED. Hindi lamang po ito galing sa GAA dahil **[00:05:08.540] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000071) bahagi po nung nirelease natin na halos **[00:05:10.960] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000072) 10 billion pesos na pambayad ng arrears natin sa FHE ay **[00:05:16.280] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000073) nanggaling po dun sa special account na Higher **[00:05:19.200] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000074) Education Trust Fund. So ito po ay on top of what was allocated into **[00:05:24.240] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000075) the GAA. Ito po tayo ay masasabi nating **[00:05:28.036] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000076) nagbayad ng utang na tatlong taon po sa ating mga state universities and colleges. **[00:05:33.600] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000077) Ito po ay karagdagan na kanila pong magagamit, hindi lang po hanggang December, **[00:05:38.100] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000078) kundi magpapatuloy po ito hanggang 2027 para **[00:05:42.080] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000079) po matustusan yung kanilang mga pangangailangan sa operation ng mga state universities and colleges, **[00:05:47.640] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000080) makapagdagdag ng additional na infrastructure, **[00:05:50.960] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000081) academic buildings, laboratories, and equipment. **[00:05:54.160] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000082) So ito pong 10 billion. Na atin pong inauthorized na ma-release as of last **[00:05:59.506] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000083) week ay inaasahan po natin na maida-download **[00:06:02.487] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000084) ng CHED sa ating 108 state universities and colleges **[00:06:05.840] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000085) starting probably this week dahil nasa kanila na po yung authority to spend for this. **[00:06:11.440] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000086) Madam **[00:06:12.020] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000087) Chair, your honor. **[00:06:13.480] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-000088) Thank you, Madam Chair. Sa hinabahaba po ng sinabi ni Secretary, **[00:06:17.320] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-000089) lumalabas pa rin po na sa 2027 NEP natin, **[00:06:21.260] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-000090) nandyan pa rin po yung mga budget cuts at huwag niyo po kaming dadaanin doon. sa press release natin na dapat ang **[00:06:28.000] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-000091) budget makatao dahil malinaw po na hindi yan nire-reflect doon **[00:06:31.880] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-000092) sa NEP natin. **[00:06:33.060] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-000093) Susunod ko po na katanungan, Madam Chair, nakapatungkol po sa DepDev. **[00:06:36.760] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-000094) Paulit-ulit po na sinasabi at pangako ni Pangulong Bongbong Marcos, **[00:06:40.420] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-000095) magaganda nga po yung adjective na ginagamit nyo eh. **[00:06:42.980] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-000096) More jobs, quality jobs, **[00:06:46.260] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-000097) better jobs. Bago po tayo pumunta doon sa mga datos, po pwede nyo po bang ipaliwanag o i-characterize itong mga trabaho. Pwede nyo po na lilikhain o nililikha ng budget na ito at ng sariling plano ng gobyerno? **[00:07:03.950] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000098) Yeah, **[00:07:04.370] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000099) okay, thank you, Madam Chair. **[00:07:06.710] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000100) The data that we **[00:07:08.790] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000101) presented are **[00:07:09.890] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000102) based on nationally representative **[00:07:12.630] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000103) surveys that **[00:07:14.870] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000104) we **[00:07:15.450] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000105) periodically compile and do through the Philippine Statistics Authority. **[00:07:20.510] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000106) And they **[00:07:21.270] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000107) show us, these surveys show us different types of work and different types of workers. Kaya **[00:07:29.030] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000108) makikita mo rito dito yung mga **[00:07:30.870] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000109) klaseng trabaho na nag-i-improve at pinag-i-improve. **[00:07:34.570] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000110) At **[00:07:34.910] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000111) sa kabuuan, gaya ng pinagkita ko this morning, **[00:07:37.210] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000112) if you look at the last 15 years, so yung matagalan na nag **[00:07:42.050] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000113) -i-improve yung labor **[00:07:45.390] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000114) market conditions natin in terms of bumaba yung employment, **[00:07:50.170] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000115) underemployment. **[00:07:51.030] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000116) Yung nga lang, yung as I said, showed also this morning, yung the **[00:07:55.350] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000117) last three quarters medyo, **[00:07:58.350] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000118) umakyat uli yung unemployment, but we **[00:08:01.750] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000119) believe that is transitory as we are, **[00:08:06.390] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000120) and we go back to the long-term trend **[00:08:08.550] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000121) as **[00:08:09.450] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000122) soon as we recover from the sharp slowdown. **[00:08:14.310] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000123) So, yun ba, **[00:08:15.570] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000124) hindi gawa-gawa yun ho, base sa data. **[00:08:20.430] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000125) Ngayon, **[00:08:21.070] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000126) yung budget **[00:08:24.150] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000127) na we presented also this morning, **[00:08:27.290] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000128) aims to improve upon that by focusing on **[00:08:32.270] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000129) sectors **[00:08:35.050] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000130) that when they improve, when they do well, they do better, could improve the quality of jobs. **[00:08:43.690] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000131) Kaya kanina mag **[00:08:44.890] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000132) -focus tayo, sabi ko sa **[00:08:46.170] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000133) balikan natin yung industriya para **[00:08:49.830] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000134) makapag-create ng jobs, balikan natin yung ability natin to compete internationally by **[00:08:55.250] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000135) focusing on our exports, because doon tayo **[00:08:57.810] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000136) dehado compared sa other, sa **[00:09:00.350] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000137) mga neighbors natin. **[00:09:01.430] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000138) And if **[00:09:02.490] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000139) you look at these types of industries, ito yung mga nakakadala **[00:09:06.510] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000140) sa quality of jobs that I was referring to. **[00:09:10.650] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-000141) Thank you po, Madam Chair. **[00:09:12.650] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-000142) Magandang nabuksan po yan ni Secretary Balisacan. **[00:09:16.250] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-000143) Dahil po, kahit yung pangako na better jobs, more jobs, quality jobs, eh hindi rin po totoo yan sa **[00:09:22.970] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-000144) kasalukuyang sitwasyon. **[00:09:24.790] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-000145) Sa PDP po, the government plan. To generate 336,000 to 396,000 jobs **[00:09:31.753] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-000146) in manufacturing jobs in 2025 alone. **[00:09:35.050] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-000147) Pero po, Madam Chair, lumalabas mismo sa report, **[00:09:38.190] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-000148) manufacturing employment, **[00:09:40.030] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-000149) minus 177,000. **[00:09:42.850] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-000150) Industry employment, **[00:09:44.550] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-000151) minus 226,000. **[00:09:46.850] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-000152) Tapos yung services, nakita po natin, merong uptick by **[00:09:50.370] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-000153) 413,000. **[00:09:52.010] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-000154) So lumalabas po, Madam Chair, **[00:09:54.590] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-000155) hindi totoo yung pangako. Ito yung pangako **[00:09:59.054] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-000156) ng administration sa pag-provide ng jobs. Kasi dapat natin itanong, hindi lang dapat lumilikha ng trabaho, **[00:10:05.730] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-000157) kundi anong klaseng trabaho ang nililikha. At lumalabas po ngayon, Madam Chair, **[00:10:11.650] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-000158) dun sa mga datos na nakikita natin, eh walang quality jobs na nakikreate. Mostly retail trade at **[00:10:19.290] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-000159) elementary low-paying jobs. Tama po ba ito, Secretary Balisakan? **[00:10:23.490] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-000160) Kung pwede po bang, kung pwede niyo po bang banggitin sa amin, retail jobs, retail trade jobs, at mga low-paying elementary jobs? **[00:10:33.010] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000161) Dun sa statistics natin, na kino-compile **[00:10:38.170] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000162) natin, **[00:10:40.090] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000163) we make **[00:10:41.890] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000164) a distinction between wage and salary workers, **[00:10:46.110] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000165) and **[00:10:46.790] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000166) other types of workers, **[00:10:50.150] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000167) lalo na yung mga **[00:10:50.970] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000168) informal, retail, **[00:10:53.790] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000169) and trade. **[00:10:56.430] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000170) Yung wage and salary workers kasi na classification. **[00:11:00.770] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000171) Or **[00:11:01.030] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000172) type of workers. **[00:11:02.050] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000173) Ito usually na what we consider better **[00:11:04.830] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000174) quality jobs. Kasi dito, **[00:11:06.570] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000175) these are usually in **[00:11:08.390] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000176) organized sectors, **[00:11:10.970] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000177) jobs at 8 **[00:11:13.970] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000178) to 5, o mga more **[00:11:16.770] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000179) regular, **[00:11:19.490] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000180) more permanent. Hindi yung mga types of jobs that are **[00:11:22.050] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000181) available only for 3 hours or 4 hours a day. **[00:11:27.850] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000182) So, **[00:11:28.570] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000183) and if you look at that data, ito, **[00:11:30.850] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000184) in **[00:11:32.790] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000185) the last 5 **[00:11:34.950] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000186) to 10 years, **[00:11:36.070] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000187) nag-i-improve yan, **[00:11:37.310] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000188) yung quality ng workers na yan. **[00:11:41.070] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000189) In terms of the proportion of those type of workers, in **[00:11:44.850] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000190) the total workforce, **[00:11:48.070] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000191) we can provide you the data to support that. **[00:11:52.170] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000192) Ito **[00:11:52.730] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000193) namang mga sales and trade na **[00:11:55.810] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000194) sinasabi natin, these are usually the **[00:11:57.950] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000195) clerks, the service workers, and ito. As alam natin, mga panito, kung minsan, mga **[00:12:03.410] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000196) clerks, half **[00:12:04.770] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000197) a day lang nag-u-work yan, **[00:12:06.570] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000198) mga service workers, **[00:12:09.550] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000199) yun ang kinakapture ng data natin na underemployed. **[00:12:12.830] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000200) But even there, if you look at the data ng underemployment natin, kasi na pinakita ko kaninang umaga, **[00:12:18.880] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000201) in the last 15 years, or even if you focus on the last 5 **[00:12:22.970] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000202) years, **[00:12:23.730] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000203) nag-i-improve yan. **[00:12:25.270] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000204) Ang exception nga lang, itong last 2 quarters and 3 quarters nga na. As you're right, pwede dati, **[00:12:31.530] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000205) tumaas. **[00:12:32.640] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000206) But I said, **[00:12:33.470] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000207) if we are able to succeed in recovering from the sharp slowdown and **[00:12:38.650] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000208) get the economy growing fast again, we should be able to recover those losses. And that's the trust of the entire **[00:12:45.230] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000209) proposed budget to **[00:12:48.630] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000210) recover us faster from the sharp **[00:12:51.750] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000211) slowdown. **[00:12:52.750] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-000212) Madam Chair, maganda po na nabanggit ni Secretary Balisacan yung percentage of wage and salaried workers in private establishments to **[00:13:00.050] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-000213) total employment. Employed workers increased. **[00:13:03.750] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-000214) Meron din pong bangga agad doon sa targets and accomplishments. **[00:13:09.000] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-000215) So una, yung target, unambitious na nga. **[00:13:12.060] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-000216) Yung actual pa, **[00:13:13.130] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-000217) stagnant. **[00:13:14.190] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-000218) So for 2025, ang target, 51.4 to 52.4. The actual is 50. **[00:13:21.300] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-000219) So ang ibig sabihin lang naman ito, Madam Chair, itong datos na lumalabas, **[00:13:25.130] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-000220) eh hindi talaga lumilikha ng mga trabaho na **[00:13:28.630] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-000221) dekalidad, may **[00:13:29.950] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-000222) maayos na sahod, **[00:13:31.750] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-000223) merong security of tenure yung gobyerno natin. **[00:13:35.290] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-000224) Marami po sa mga trabaho na yan ay retail trade at elementary low-paying jobs. **[00:13:40.930] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-000225) Yun po yung pinatutungkulan natin. **[00:13:42.970] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-000226) Ngayon, maganda po na binabanggit ni Secretary Balisakan, merong mga proposed na **[00:13:47.410] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-000227) mga reforma para lumikha talaga tayo ng mga trabaho. At doon po patungo **[00:13:51.410] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-000228) yung questioning natin, Madam Chair. **[00:13:57.290] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-000229) Ano ba yung... ang focus relative **[00:14:01.019] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-000230) to the 2027 budget? Ano ba ang focus ng gobyerno para lumikha ng mga industriya para **[00:14:10.390] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-000231) gumawa ng mga trabaho na dekalidad, **[00:14:12.990] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-000232) hindi low-paying, hindi elementary, kundi mga high-value na mga trabaho? Kasi hindi naman po natin, Madam Chair, po pwedeng laging sabihin merong **[00:14:23.370] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-000233) trabaho, trabaho, trabaho. **[00:14:25.350] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-000234) Ang punto natin dito, hindi lang sapat na merong trabaho, kundi yung trabaho ay dapat nagbabayad ng maayos sa ating mga manggagawa at **[00:14:34.410] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-000235) talagang nakakapagambag sa development ng mga industriya natin. **[00:14:38.210] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-000236) So, last clarification, Madam Chair, kay Secretary Balisakan. **[00:14:42.050] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-000237) Yes. **[00:14:42.790] Rep. Albert S. Garcia** (h2r5-turn-000238) Thank you very much. That will be the last question for Cong. San Fernando. **[00:14:47.190] Rep. Albert S. Garcia** (h2r5-turn-000239) Sec. Arsi **[00:14:47.750] Rep. Albert S. Garcia** (h2r5-turn-000240) please. **[00:14:49.790] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000241) Thank you, Mr. Chair. That's where I completely, we completely agree with you, Your **[00:14:55.170] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000242) Honor, that **[00:14:56.110] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000243) what we need for **[00:14:58.170] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000244) this country, to move **[00:15:00.790] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000245) forward is the generation of **[00:15:02.910] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000246) quality jobs, better quality jobs. And **[00:15:05.870] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000247) precisely, **[00:15:06.610] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000248) what we **[00:15:08.310] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000249) are **[00:15:09.030] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000250) doing, **[00:15:10.010] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000251) focusing **[00:15:12.070] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000252) for the last **[00:15:12.970] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000253) years **[00:15:14.850] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000254) of this administration is **[00:15:16.790] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000255) a faster execution of **[00:15:18.750] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000256) programs and projects, particularly those **[00:15:22.250] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000257) programs and projects that are so critical to **[00:15:25.630] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000258) the generation of jobs. **[00:15:27.110] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000259) Una na doon is... **[00:15:28.850] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000260) Yung **[00:15:29.570] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000261) quality **[00:15:30.570] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000262) of infrastructure, **[00:15:32.010] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000263) particularly **[00:15:34.310] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000264) sa energy, for example. **[00:15:36.170] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000265) If the cost of energy, Your **[00:15:40.450] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000266) Honor, **[00:15:42.250] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000267) is high, **[00:15:44.230] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000268) there's no way that you could generate a lot of jobs, a high quality of jobs, because your manufacturing would not be able to **[00:15:50.990] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000269) generate good **[00:15:54.110] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000270) enough employment, and especially for exports. **[00:15:58.850] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000271) So, we **[00:15:59.590] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000272) need to address the, **[00:16:01.270] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000273) what we call the critical constraints to investment and growth. **[00:16:06.890] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000274) Infrastructure, number one, is doing business, number two. Then this, what we call this, the loss of confidence and trust in our institutions. **[00:16:22.820] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000275) And that's what we are trying to recover from. Kaya, yung budget is precisely... **[00:16:30.550] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000276) frame to speed up our **[00:16:32.890] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000277) recovery. **[00:16:34.530] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000278) And that's what **[00:16:35.490] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000279) we **[00:16:36.630] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000280) should... And **[00:16:37.570] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000281) recovery means that, you know, business and consumer confidence will also **[00:16:41.430] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000282) improve. **[00:16:45.050] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000283) Thank you. Thank you, Your Honor. **[00:16:46.490] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-000284) Mr. **[00:16:46.641] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-000285) Chair, mabilis na mabilis na po. Thank you very much. Mabilis na mabilis na po, Mr. Chair. **[00:16:49.390] Rep. Albert S. Garcia** (h2r5-turn-000286) Pwede po sa next round, kasi marami po... Yes po, **[00:16:51.050] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-000287) magpapalist na po ako sa second round. Mabilis na po, Mr. Chair. **[00:16:55.430] Rep. Albert S. Garcia** (h2r5-turn-000288) It would be unfair to our colleagues. **[00:16:57.890] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-000289) Kanina, Mr. Chair, may nag-extend. Mabilis **[00:17:00.010] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-000290) na po. **[00:17:00.450] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-000291) Mabilis na po, Mr. Chair. Okay **[00:17:02.550] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-000292) lang po. **[00:17:04.410] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-000293) Ang pupuntuhin ko lang naman po, Mr. Chair, maganda po na admission from the DepDev yun. **[00:17:09.590] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-000294) Na ang rason kung bakit mababa ang investor's confidence dito sa bansa natin, **[00:17:16.310] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-000295) mataas ang utilities, at grabe, laganap ang korupsyon. **[00:17:20.350] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-000296) So maganda po yun. So yun **[00:17:22.730] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-000297) lang naman po, Mr. Chair, ang gusto kong ipoint at magpapalista po ako for second round. Okay. **[00:17:26.710] Rep. Albert S. Garcia** (h2r5-turn-000298) Thank you very much, Kong San Fernando. **[00:17:30.450] Rep. Albert S. Garcia** (h2r5-turn-000299) Back to the majority. **[00:17:31.920] Rep. Albert S. Garcia** (h2r5-turn-000300) May we call on Congressman Arnan **[00:17:34.350] Rep. Albert S. Garcia** (h2r5-turn-000301) Panaligan. **[00:17:37.570] Rep. Albert S. Garcia** (h2r5-turn-000302) You have the floor. **[00:17:38.640] Rep. Arnan C. Panaligan** (h2r5-turn-000303) Thank **[00:17:39.000] Rep. Arnan C. Panaligan** (h2r5-turn-000304) you very much, Vice Chair. This is a question addressed probably to our **[00:17:43.900] Rep. Arnan C. Panaligan** (h2r5-turn-000305) DepDev. **[00:17:47.040] Rep. Arnan C. Panaligan** (h2r5-turn-000306) In your presentation earlier this morning, you mentioned that one **[00:17:51.600] Rep. Arnan C. Panaligan** (h2r5-turn-000307) of the problems **[00:17:53.840] Rep. Arnan C. Panaligan** (h2r5-turn-000308) or the weakness **[00:17:55.420] Rep. Arnan C. Panaligan** (h2r5-turn-000309) in our economy is structural. Because we are more reliant on services. **[00:18:01.920] Rep. Arnan C. Panaligan** (h2r5-turn-000310) Rather than industry. In fact, agriculture industry lag **[00:18:05.560] Rep. Arnan C. Panaligan** (h2r5-turn-000311) behind the **[00:18:06.760] Rep. Arnan C. Panaligan** (h2r5-turn-000312) services sector. And **[00:18:08.320] Rep. Arnan C. Panaligan** (h2r5-turn-000313) that could be the reason why we **[00:18:10.780] Rep. Arnan C. Panaligan** (h2r5-turn-000314) cannot provide better **[00:18:12.560] Rep. Arnan C. Panaligan** (h2r5-turn-000315) quality and better paying jobs to our people. **[00:18:16.780] Rep. Arnan C. Panaligan** (h2r5-turn-000316) So some economists refer to this as premature **[00:18:19.800] Rep. Arnan C. Panaligan** (h2r5-turn-000317) deindustrialization. **[00:18:23.160] Rep. Arnan C. Panaligan** (h2r5-turn-000318) That is, we leapfrog from agrarian economy to **[00:18:26.540] Rep. Arnan C. Panaligan** (h2r5-turn-000319) services. So **[00:18:28.140] Rep. Arnan C. Panaligan** (h2r5-turn-000320) we skip that part, **[00:18:29.220] Rep. Arnan C. Panaligan** (h2r5-turn-000321) that portion of industrialization. **[00:18:31.760] Rep. Arnan C. Panaligan** (h2r5-turn-000322) We know that manufacturing provides more **[00:18:34.940] Rep. Arnan C. Panaligan** (h2r5-turn-000323) jobs, better jobs, better **[00:18:36.180] Rep. Arnan C. Panaligan** (h2r5-turn-000324) paying jobs and quality jobs. But we skip that. **[00:18:41.760] Rep. Arnan C. Panaligan** (h2r5-turn-000325) So **[00:18:42.360] Rep. Arnan C. Panaligan** (h2r5-turn-000326) considering that situation, **[00:18:44.840] Rep. Arnan C. Panaligan** (h2r5-turn-000327) do **[00:18:46.280] Rep. Arnan C. Panaligan** (h2r5-turn-000328) we have a clear program, a road map, **[00:18:48.560] Rep. Arnan C. Panaligan** (h2r5-turn-000329) an industrial policy to **[00:18:51.380] Rep. Arnan C. Panaligan** (h2r5-turn-000330) reindustrialize or **[00:18:52.920] Rep. Arnan C. Panaligan** (h2r5-turn-000331) to pursue industrialization and **[00:18:56.200] Rep. Arnan C. Panaligan** (h2r5-turn-000332) manufacturing? So **[00:18:57.940] Rep. Arnan C. Panaligan** (h2r5-turn-000333) we can provide better jobs to our people. **[00:19:00.240] Rep. Arnan C. Panaligan** (h2r5-turn-000334) Such as shipbuilding. **[00:19:01.760] Rep. Arnan C. Panaligan** (h2r5-turn-000335) We **[00:19:02.260] Rep. Arnan C. Panaligan** (h2r5-turn-000336) buy our auto-ships from China. **[00:19:05.060] Rep. Arnan C. Panaligan** (h2r5-turn-000337) Our steel, we don't have an integrated steel mill. **[00:19:09.280] Rep. Arnan C. Panaligan** (h2r5-turn-000338) Even in pharmaceuticals, we import our drug **[00:19:12.800] Rep. Arnan C. Panaligan** (h2r5-turn-000339) requirements. **[00:19:13.780] Rep. Arnan C. Panaligan** (h2r5-turn-000340) And all **[00:19:14.900] Rep. Arnan C. Panaligan** (h2r5-turn-000341) our basic necessities are **[00:19:16.820] Rep. Arnan C. Panaligan** (h2r5-turn-000342) imported. I remember when I was young, 1970s, laking **[00:19:25.980] Rep. Arnan C. Panaligan** (h2r5-turn-000343) sa mga produkto natin, made in the Philippines. Made **[00:19:28.680] Rep. Arnan C. Panaligan** (h2r5-turn-000344) in China, made in Thailand, made in Indonesia. **[00:19:30.880] Rep. Arnan C. Panaligan** (h2r5-turn-000345) So ano ang produkto? So ano **[00:19:32.480] Rep. Arnan C. Panaligan** (h2r5-turn-000346) ang **[00:19:32.840] Rep. Arnan C. Panaligan** (h2r5-turn-000347) programa natin to reindustrialize? If we deindustrialize, as some economists said, **[00:19:37.100] Rep. Arnan C. Panaligan** (h2r5-turn-000348) ano yung ating klarong road map to **[00:19:39.780] Rep. Arnan C. Panaligan** (h2r5-turn-000349) boost industrialization para **[00:19:42.120] Rep. Arnan C. Panaligan** (h2r5-turn-000350) maging matiba yung ating structure ng ating ekonomiya? **[00:19:45.100] Rep. Arnan C. Panaligan** (h2r5-turn-000351) At **[00:19:45.780] Rep. Arnan C. Panaligan** (h2r5-turn-000352) hindi tayo reliant lamang sa services sector. **[00:19:50.360] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000353) I think that if we try **[00:19:54.980] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000354) to understand closely why our **[00:19:57.200] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000355) manufacturing, our industry, **[00:20:00.280] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000356) failed **[00:20:01.380] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000357) to catch up with our neighbors, **[00:20:04.060] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000358) what becomes clear is that we, **[00:20:07.300] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000359) over decades, have failed to address those structural issues that I mentioned that **[00:20:14.980] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000360) makes our industries, our exports, quite **[00:20:18.680] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000361) uncompetitive. **[00:20:20.000] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000362) And ito lang nga, I think it was emphasized, the issues on **[00:20:25.140] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000363) poor **[00:20:27.060] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000364) quality of infrastructure, **[00:20:29.760] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000365) yung sa backlogs **[00:20:32.180] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000366) lang natin sa connectivity. **[00:20:34.060] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000367) For **[00:20:34.820] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000368) example, when **[00:20:36.360] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000369) I say connectivity, the **[00:20:37.960] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000370) physical connectivity as well as the digital connectivity. **[00:20:42.200] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000371) Whereas, **[00:20:42.700] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000372) those services are very costly in our country compared **[00:20:47.620] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000373) to our neighbors. **[00:20:49.560] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000374) Partly because we haven't **[00:20:51.160] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000375) invested enough, **[00:20:52.140] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000376) but secondly, the **[00:20:55.080] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000377) quality of that investment is not good enough, so they did not last long, **[00:20:59.500] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000378) maintenance cost **[00:21:01.060] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000379) was high, and so on. **[00:21:04.080] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000380) Number **[00:21:04.700] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000381) two is, I **[00:21:05.960] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000382) think that **[00:21:06.600] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000383) all **[00:21:09.460] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000384) what **[00:21:12.000] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000385) various chambers have been telling us about the cost of doing business in **[00:21:17.440] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000386) our country, we **[00:21:21.530] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000387) have improved quite a bit, as I showed earlier this morning, **[00:21:26.290] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000388) but we need to improve much faster **[00:21:29.550] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000389) than our neighbors so that we'll be able to catch up. **[00:21:34.150] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000390) It's **[00:21:34.770] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000391) just luck. Ang lang ko sa permitting, getting permits to start a business or to close a business, it takes weeks, according to the report, to some studies, to do it here, and only a day or two in some **[00:21:53.150] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000392) countries like Singapore or Australia or even Thailand. **[00:21:57.990] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000393) So, those are the structural issues that I am talking about. **[00:22:02.090] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000394) I believe that if we address those structural issues, **[00:22:05.950] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000395) we don't even have to push **[00:22:08.310] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000396) industrial policy in **[00:22:11.190] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000397) the way that our neighbors did. **[00:22:14.990] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000398) Now, we choose champions because by **[00:22:18.510] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000399) addressing those structural issues, you essentially make industry more competitive, more profitable, and **[00:22:28.030] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000400) even our local industrialists should be able to grow. **[00:22:33.550] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000401) So, yan ho. But I think I also mentioned, the need for a better and much more improved coordination **[00:22:40.130] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000402) between the public and the private sector, **[00:22:42.650] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000403) as well as across government. **[00:22:45.870] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000404) I think the public-private partnership is the way to go, **[00:22:49.930] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000405) especially in times when our fiscal issues **[00:22:54.550] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000406) are severe enough because of the so many development needs that we have to address all at the same time. Okay. **[00:23:05.950] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000407) As presented this morning by BSP, our banks **[00:23:10.270] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000408) are awash with cash, with liquidity. **[00:23:13.410] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000409) Why are they not being invested? **[00:23:15.750] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000410) Why is this cash not **[00:23:18.050] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000411) being invested for factories? **[00:23:23.730] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000412) It's **[00:23:24.490] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000413) because, perhaps, **[00:23:25.830] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000414) it's not profitable to do so unless **[00:23:29.650] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000415) we address these structural difficulties. **[00:23:35.190] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000416) And so that's what will create jobs, if you are able to **[00:23:38.750] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000417) address those difficulties, Madam Chair. **[00:23:43.230] Rep. Arnan C. Panaligan** (h2r5-turn-000418) Yes, I agree with you, Secretary. **[00:23:46.010] Rep. Arnan C. Panaligan** (h2r5-turn-000419) You have to address the **[00:23:47.330] Rep. Arnan C. Panaligan** (h2r5-turn-000420) bottlenecks in infrastructure, the **[00:23:50.030] Rep. Arnan C. Panaligan** (h2r5-turn-000421) high **[00:23:50.910] Rep. Arnan C. Panaligan** (h2r5-turn-000422) cost of energy, **[00:23:52.050] Rep. Arnan C. Panaligan** (h2r5-turn-000423) doing business, etc. **[00:23:54.410] Rep. Arnan C. Panaligan** (h2r5-turn-000424) But unless and until we address that, we **[00:23:56.750] Rep. Arnan C. Panaligan** (h2r5-turn-000425) will not have a strong **[00:23:58.990] Rep. Arnan C. Panaligan** (h2r5-turn-000426) industrial base. We will be trapped forever in **[00:24:02.030] Rep. Arnan C. Panaligan** (h2r5-turn-000427) this system. We will be trapped **[00:24:04.257] Rep. Arnan C. Panaligan** (h2r5-turn-000428) forever **[00:24:04.443] Rep. Arnan C. Panaligan** (h2r5-turn-000429) in an economy that is import-dependent, where **[00:24:06.210] Rep. Arnan C. Panaligan** (h2r5-turn-000430) we will be given low-paying jobs. I **[00:24:08.770] Rep. Arnan C. Panaligan** (h2r5-turn-000431) hope we will be aggressive in **[00:24:10.530] Rep. Arnan C. Panaligan** (h2r5-turn-000432) promoting industrialization as **[00:24:14.230] Rep. Arnan C. Panaligan** (h2r5-turn-000433) a way to escape poverty. **[00:24:16.610] Rep. Arnan C. Panaligan** (h2r5-turn-000434) Anyway, thank you, Secretary. **[00:24:18.510] Rep. Arnan C. Panaligan** (h2r5-turn-000435) Going to the PBM, **[00:24:21.790] Rep. Arnan C. Panaligan** (h2r5-turn-000436) although our budget increased from 6 **[00:24:25.410] Rep. Arnan C. Panaligan** (h2r5-turn-000437) .7 trillion in 2026 to 7.2 trillion for **[00:24:29.070] Rep. Arnan C. Panaligan** (h2r5-turn-000438) 2027, there **[00:24:30.650] Rep. Arnan C. Panaligan** (h2r5-turn-000439) are reductions in the major sectors, like **[00:24:33.150] Rep. Arnan C. Panaligan** (h2r5-turn-000440) agriculture. Culture, **[00:24:34.550] Rep. Arnan C. Panaligan** (h2r5-turn-000441) health, social services, **[00:24:36.330] Rep. Arnan C. Panaligan** (h2r5-turn-000442) education. **[00:24:38.650] Rep. Arnan C. Panaligan** (h2r5-turn-000443) What is the reason, **[00:24:40.366] Rep. Arnan C. Panaligan** (h2r5-turn-000444) considering that the proposed budget has increased from **[00:24:43.797] Rep. Arnan C. Panaligan** (h2r5-turn-000445) 6.7 to 7.2 trillion, **[00:24:46.650] Rep. Arnan C. Panaligan** (h2r5-turn-000446) but the major sectors suffered, that **[00:24:49.750] Rep. Arnan C. Panaligan** (h2r5-turn-000447) have a direct impact on **[00:24:52.510] Rep. Arnan C. Panaligan** (h2r5-turn-000448) poverty reduction? **[00:24:56.400] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000449) Madam Chair, Your Honor, yun pong noted reduction **[00:25:00.940] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000450) nabanggit po ng **[00:25:02.060] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000451) maga department ay **[00:25:04.380] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000452) bunga rin po ng assessment ng kanilang paggamit ng 2026 GAA **[00:25:10.200] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000453) may malaki pa rin pong bahagi ng kanilang current budget ang hind pa nila nagagamit **[00:25:15.240] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000454) so in consideration of their absorptive capacity, ginamit po natin 'yon **[00:25:19.780] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000455) in determining **[00:25:21.560] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000456) how **[00:25:22.300] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000457) much of that level, particularly po yung kanilang mga infrastructure projects. But definitely not zero, Your Honor, Madam Chair. **[00:25:29.960] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000458) Ginamit lang po natin yung absorptive capacity nila para mag-recommend ng mas mababang amount **[00:25:35.086] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000459) kung ikukumpara po sa 2026 GAA **[00:25:35.290] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000460) although **[00:25:40.240] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000461) kung titignan po natin yung 2026 NEP, **[00:25:43.120] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000462) ito po ay halos kaparehong amount po para sa kanilang mga infrastructure projects. **[00:25:48.080] Rep. Arnan C. Panaligan** (h2r5-turn-000463) So, would you say na meron parang, as of now, may underspending sila? **[00:25:52.040] Rep. Arnan C. Panaligan** (h2r5-turn-000464) Malaki pa ang kanilang mga balanse, kaya hindi sila binigyan. **[00:25:54.980] Rep. Arnan C. Panaligan** (h2r5-turn-000465) So, parang may underspending. **[00:25:56.460] Rep. Arnan C. Panaligan** (h2r5-turn-000466) And, would **[00:25:57.400] Rep. Arnan C. Panaligan** (h2r5-turn-000467) you agree na because of their failure to spend, or obligate to spend yung kanilang mga allocation for this year, **[00:26:03.060] Rep. Arnan C. Panaligan** (h2r5-turn-000468) eh, reason **[00:26:04.460] Rep. Arnan C. Panaligan** (h2r5-turn-000469) yun kung **[00:26:05.160] Rep. Arnan C. Panaligan** (h2r5-turn-000470) bakit, **[00:26:05.800] Rep. Arnan C. Panaligan** (h2r5-turn-000471) ang ating growth rate, **[00:26:07.100] Rep. Arnan C. Panaligan** (h2r5-turn-000472) 2.6 lamang noong quarter 1, and 2.3 noong quarter 2? **[00:26:12.220] Rep. Arnan C. Panaligan** (h2r5-turn-000473) Whereas, kung nailabas ang perang yan, **[00:26:14.040] Rep. Arnan C. Panaligan** (h2r5-turn-000474) nabusa na ang ating ekonomiya? **[00:26:16.260] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000475) Yes, Your Honor, Madam Chair, bahagi po iyon, no, na kung ito po ay kanilang ma-implement sa **[00:26:21.140] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000476) mas **[00:26:22.200] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000477) lalong maagang panahon, ito rin po ay magkocontribute sa ating economic growth. **[00:26:26.560] Rep. Arnan C. Panaligan** (h2r5-turn-000478) So, they should ramp up spending for the last two quarters, no? **[00:26:30.040] Rep. Arnan C. Panaligan** (h2r5-turn-000479) So **[00:26:30.440] Rep. Arnan C. Panaligan** (h2r5-turn-000480) that we can meet yung ating target. **[00:26:33.340] Rep. Arnan C. Panaligan** (h2r5-turn-000481) Another question, no? **[00:26:34.600] Rep. Arnan C. Panaligan** (h2r5-turn-000482) Hopefully, the last, **[00:26:35.800] Rep. Arnan C. Panaligan** (h2r5-turn-000483) of the 50 **[00:26:38.020] Rep. Arnan C. Panaligan** (h2r5-turn-000484) billion peso unprogrammed appropriations for the AFP modernization program for **[00:26:43.300] Rep. Arnan C. Panaligan** (h2r5-turn-000485) 2026, **[00:26:44.870] Rep. Arnan C. Panaligan** (h2r5-turn-000486) how much has been actually released, if any? **[00:26:47.810] Rep. Arnan C. Panaligan** (h2r5-turn-000487) Because, last, **[00:26:49.840] Rep. Arnan C. Panaligan** (h2r5-turn-000488) for this year, **[00:26:50.960] Rep. Arnan C. Panaligan** (h2r5-turn-000489) the appropriation for the AFP modernization is 40 **[00:26:54.180] Rep. Arnan C. Panaligan** (h2r5-turn-000490) billion. **[00:26:54.820] Rep. Arnan C. Panaligan** (h2r5-turn-000491) It's a regular appropriations **[00:26:57.010] Rep. Arnan C. Panaligan** (h2r5-turn-000492) and 50 billion unprogrammed. **[00:26:59.590] Rep. Arnan C. Panaligan** (h2r5-turn-000493) So, I just want to know **[00:27:00.980] Rep. Arnan C. Panaligan** (h2r5-turn-000494) if there **[00:27:02.780] Rep. Arnan C. Panaligan** (h2r5-turn-000495) has been a release from **[00:27:04.300] Rep. Arnan C. Panaligan** (h2r5-turn-000496) that 50 billion, 50 billion peso unprogrammed appropriations. **[00:27:08.520] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000497) Madam Chair, Your Honor, sa ngayon po, wala pa pong release for the revised AFP modernization program under the 2026 unprogrammed appropriations. **[00:27:18.900] Rep. Arnan C. Panaligan** (h2r5-turn-000498) And will there be a release **[00:27:21.380] Rep. Arnan C. Panaligan** (h2r5-turn-000499) before the end of the year? **[00:27:24.140] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000500) Madam Chair, Your Honor, dalawa po yung consideration. Number one po, presence po ng trigger, which is excess revenue. And pangalawa po, **[00:27:31.480] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000501) kung may pangangailangan pa po, dahil, syempre po, inuuna po natin gamitin, ngayon, yung programmed appropriations for **[00:27:38.180] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000502) the revised AFP modernization program. **[00:27:41.440] Rep. Arnan C. Panaligan** (h2r5-turn-000503) But would you agree that **[00:27:42.960] Rep. Arnan C. Panaligan** (h2r5-turn-000504) spending for the AFP modernization should **[00:27:46.900] Rep. Arnan C. Panaligan** (h2r5-turn-000505) not be viewed as a financial burden to **[00:27:49.300] Rep. Arnan C. Panaligan** (h2r5-turn-000506) the government, ano? **[00:27:50.740] Rep. Arnan C. Panaligan** (h2r5-turn-000507) Dahil, for **[00:27:52.180] Rep. Arnan C. Panaligan** (h2r5-turn-000508) example, we **[00:27:53.460] Rep. Arnan C. Panaligan** (h2r5-turn-000509) have **[00:27:53.640] Rep. Arnan C. Panaligan** (h2r5-turn-000510) vast maritime areas, **[00:27:55.640] Rep. Arnan C. Panaligan** (h2r5-turn-000511) may marine wealth dyan, **[00:27:56.980] Rep. Arnan C. Panaligan** (h2r5-turn-000512) pagkain, source of food, **[00:27:58.540] Rep. Arnan C. Panaligan** (h2r5-turn-000513) aquatic resources that could have fed millions **[00:28:01.000] Rep. Arnan C. Panaligan** (h2r5-turn-000514) of our fisher folk and those living in coastal communities where poverty is **[00:28:05.300] Rep. Arnan C. Panaligan** (h2r5-turn-000515) quite high. Also, **[00:28:07.040] Rep. Arnan C. Panaligan** (h2r5-turn-000516) our maritime areas contain **[00:28:09.040] Rep. Arnan C. Panaligan** (h2r5-turn-000517) natural **[00:28:10.060] Rep. Arnan C. Panaligan** (h2r5-turn-000518) gas or oil deposits. But **[00:28:11.840] Rep. Arnan C. Panaligan** (h2r5-turn-000519) we cannot explore them because **[00:28:13.480] Rep. Arnan C. Panaligan** (h2r5-turn-000520) somebody is claiming that. **[00:28:14.760] Rep. Arnan C. Panaligan** (h2r5-turn-000521) With a strong navy, **[00:28:16.040] Rep. Arnan C. Panaligan** (h2r5-turn-000522) we can secure our maritime areas, our maritime wealth. **[00:28:19.720] Rep. Arnan C. Panaligan** (h2r5-turn-000523) And that **[00:28:21.440] Rep. Arnan C. Panaligan** (h2r5-turn-000524) could help **[00:28:22.060] Rep. Arnan C. Panaligan** (h2r5-turn-000525) in alleviating poverty. So would you agree that spending for naval modernization is **[00:28:28.400] Rep. Arnan C. Panaligan** (h2r5-turn-000526) a way also of **[00:28:29.980] Rep. Arnan C. Panaligan** (h2r5-turn-000527) enabling us to explore our maritime wealth in our areas? **[00:28:34.160] Rep. Arnan C. Panaligan** (h2r5-turn-000528) Thank you very much. **[00:28:35.960] Rep. Albert S. Garcia** (h2r5-turn-000529) Thank **[00:28:36.380] Rep. Albert S. Garcia** (h2r5-turn-000530) you very much, Cong Arnan. That will be the last question. Salamat po. **[00:28:39.960] Rep. Albert S. Garcia** (h2r5-turn-000531) Sec. Kim, please reply. **[00:28:41.580] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000532) Madam **[00:28:41.740] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000533) Chair, Your Honor, yes po. And we evaluate naman po, not only the Navy, but the entire AFP, the request as soon as we receive them with complete documentation, Your Honor. **[00:28:52.120] Rep. Arnan C. Panaligan** (h2r5-turn-000534) Thank you, Mr. Chair. Thank you, Madam Chair. **[00:28:57.660] Rep. Albert S. Garcia** (h2r5-turn-000535) So, maraming salamat po. **[00:28:59.920] Rep. Albert S. Garcia** (h2r5-turn-000536) Next on our list, we go back to the minority. **[00:29:04.300] Rep. Albert S. Garcia** (h2r5-turn-000537) We now call Congressman Edgar **[00:29:06.740] Rep. Albert S. Garcia** (h2r5-turn-000538) Erice **[00:29:08.020] Rep. Albert S. Garcia** (h2r5-turn-000539) Ericek. **[00:29:10.000] Rep. Albert S. Garcia** (h2r5-turn-000540) Sir, kayo na po. **[00:29:11.980] Rep. Albert S. Garcia** (h2r5-turn-000541) Thank you. **[00:29:16.410] Rep. Edgar R. Erice** (h2r5-turn-000542) Asensya na po, ginugulo ako ni Tonypet **[00:29:19.550] Rep. Edgar R. Erice** (h2r5-turn-000543) Anyway, **[00:29:20.510] Rep. Edgar R. Erice** (h2r5-turn-000544) good afternoon. My first question is to the Chair. **[00:29:26.420] Rep. Edgar R. Erice** (h2r5-turn-000545) Can **[00:29:27.100] Rep. Edgar R. Erice** (h2r5-turn-000546) you explain to us **[00:29:27.980] Rep. Edgar R. Erice** (h2r5-turn-000547) what is particularly, basically the role of the DBCC in rationalizing the National Independence Program, **[00:29:37.780] Rep. Edgar R. Erice** (h2r5-turn-000548) particularly on public **[00:29:40.340] Rep. Edgar R. Erice** (h2r5-turn-000549) policy standards, on alignment **[00:29:45.280] Rep. Edgar R. Erice** (h2r5-turn-000550) with the Philippines, **[00:29:47.120] Rep. Edgar R. Erice** (h2r5-turn-000551) on development plan, **[00:29:49.700] Rep. Edgar R. Erice** (h2r5-turn-000552) and **[00:29:50.300] Rep. Edgar R. Erice** (h2r5-turn-000553) maintaining an equitable distribution of the program? **[00:29:56.000] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000554) Madam Chair, Your Honor, the DBCC as a committee considers, **[00:30:00.920] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000555) approves and recommends to the President yun **[00:30:04.180] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000556) pong ating medium to long term fiscal program, Kabilang po dyan yung ating **[00:30:09.080] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000557) projected deficit and fixing as well the **[00:30:13.240] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000558) ceiling, the expenditure program. At yun po yung ginagamit ng DBM naman Naman, kapag na-fix na po ng DBCC yung ating magiging ceiling ng expenditure program, yun po yung ginagamit na ng DBM sa pag-assess ng bawat isang proposal ng mga ahensya. At sa DBM na po nangyayari yung pag **[00:30:33.920] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000559) -assess po natin ng alignment with our priority development plans and implementation readiness of the proposal. **[00:30:39.900] Rep. Edgar R. Erice** (h2r5-turn-000560) And you do have parameters, For example, assessing **[00:30:43.420] Rep. Edgar R. Erice** (h2r5-turn-000561) projects, department, can you name it? **[00:30:47.780] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000562) Yes, Your Honor. Yes, Your Madam Honor, Chair, Among others, unang **[00:30:52.080] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000563) -una po kapag meron pong proposal, yung completion po ng supporting documents. So meron po tayong mga nakalatag ng mga budget preparation. forms na **[00:31:00.700] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000564) makakapag-prove po ng tinatawag naming implementation readiness. Dahil kung implementation ready po yung isang proyekto, ibig sabihin po, consistent din po dun sa ating **[00:31:10.320] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000565) GAS release order, mabilis pong ma-implement yung project pagkapasa pa lamang po ng **[00:31:15.740] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000566) GAA. Kasama rin po dun sa ating assessment, yun po kanilang **[00:31:20.260] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000567) utilization rate. Gaya po nang nabanggit po kanina, ito po yung dahilan. **[00:31:26.180] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000568) Ilang department po na medyo bumaba dahil may mga continuing pa po silang mga pondo from 2026. **[00:31:32.500] Rep. Edgar R. Erice** (h2r5-turn-000569) With that, how can you explain that 1.45 trillion of **[00:31:36.100] Rep. Edgar R. Erice** (h2r5-turn-000570) the national budget of the 19th Congress were re-aligned **[00:31:38.860] Rep. Edgar R. Erice** (h2r5-turn-000571) to projects that were not really meant to be? **[00:31:44.760] Rep. Edgar R. Erice** (h2r5-turn-000572) Paano po na-implement the 1.45 trillion in the insertions, diversions, amendments without **[00:31:50.280] Rep. Edgar R. Erice** (h2r5-turn-000573) the knowledge of **[00:31:52.560] Rep. Edgar R. Erice** (h2r5-turn-000574) the President and without the **[00:31:54.020] Rep. Edgar R. Erice** (h2r5-turn-000575) interference from the Department of Budget and Management? **[00:31:58.860] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000576) Your **[00:32:00.940] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000577) Honor, Madam Chair, ito po ay sa 2026 po. **[00:32:07.260] Rep. Edgar R. Erice** (h2r5-turn-000578) No. **[00:32:09.340] Rep. Edgar R. Erice** (h2r5-turn-000579) Upang hindi na maulit ngayon, **[00:32:11.260] Rep. Edgar R. Erice** (h2r5-turn-000580) bakit nakalusot? Kasi dapat **[00:32:14.240] Rep. Edgar R. Erice** (h2r5-turn-000581) malaman natin, paano nakalusot sa inyo? **[00:32:17.300] Rep. Edgar R. Erice** (h2r5-turn-000582) Paano nakalusot sa Presidente yung 1.45 trillion **[00:32:21.340] Rep. Edgar R. Erice** (h2r5-turn-000583) na **[00:32:21.720] Rep. Edgar R. Erice** (h2r5-turn-000584) halos pinalitan ng Kongreso, yung President's Budget, yung Philippine Development Plan? Paano nakalusot sa inyo yan? **[00:32:31.830] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000585) Uh **[00:32:32.165] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000586) Madam Chair. Your Honor, marahil po ito po yung mga changes that was introduced doon po sa ating 2026 GAA. **[00:32:40.290] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000587) Ito rin po yung dahilan kung bakit po doon sa veto message ng ating Presidente, **[00:32:45.250] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000588) sinubject niya po ito doon sa further documentation at pagbibigay po sa amin, **[00:32:50.870] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000589) bago po ma-release ng DBM yung karampatang allotment, ma **[00:32:54.690] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000590) -substantiate at ma-document po muna ng mga ahensya kung saan po nakalatag **[00:32:59.750] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000591) yung mga changes na na-introduce po, bago po namin i-release yung mga changes. **[00:33:05.350] Rep. Edgar R. Erice** (h2r5-turn-000592) Ibig po sabihin na vet nyo na lahat ng mga projects, for example, lalo na sa Department of Public Works, dahil may naging controversy, we **[00:33:13.450] Rep. Edgar R. Erice** (h2r5-turn-000593) should learn from our lessons. **[00:33:15.130] Rep. Edgar R. Erice** (h2r5-turn-000594) Have you learned your lesson? **[00:33:17.630] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000595) Your Honor, Mr. Chair, yes po. For 2027, talaga pong sinusuportahan po ng complete documentation, including **[00:33:25.890] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000596) po yung Program of Works, ang bawat isa pong proyekto na nasa 2027 National Expenditure Program. **[00:33:33.470] Rep. Edgar R. Erice** (h2r5-turn-000597) Wala po bang Leadership Fund allowed? **[00:33:38.010] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000598) Wala po at hindi po kami aware, Your Honor, kasi po we only evaluate the proposals submitted by the Department. **[00:33:44.630] Rep. Edgar R. Erice** (h2r5-turn-000599) So, ibig sabihin yung 1.45 trillion na pinalitan ng mga leaders ng Kongreso na nakaraan, di nyo alam sa **[00:33:51.450] Rep. Edgar R. Erice** (h2r5-turn-000600) DBM? **[00:33:55.690] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000601) Your Honor, ang projects po ay nakikita po namin after the NEP, the GAA, the Enrolled Bill was submitted after the bicam. **[00:34:08.610] Rep. Edgar R. Erice** (h2r5-turn-000602) National **[00:34:09.290] Rep. Edgar R. Erice** (h2r5-turn-000603) Budget, pinalitan. **[00:34:11.730] Rep. Edgar R. Erice** (h2r5-turn-000604) 2024, **[00:34:12.910] Rep. Edgar R. Erice** (h2r5-turn-000605) pinalitan. **[00:34:14.150] Rep. Edgar R. Erice** (h2r5-turn-000606) 2025, **[00:34:15.430] Rep. Edgar R. Erice** (h2r5-turn-000607) pinalitan. **[00:34:17.130] Rep. Edgar R. Erice** (h2r5-turn-000608) So, ibig sabihin, **[00:34:18.290] Rep. Edgar R. Erice** (h2r5-turn-000609) wala po kayo monitoring yung **[00:34:21.430] Rep. Edgar R. Erice** (h2r5-turn-000610) DBM po. Hindi nyo ba pinaratingin sa Presidente na ganito yun ang nangyayari? **[00:34:36.040] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000611) Your Honor, Madam Chair, patungkol po doon sa mga, although yun nga po, I'm not personally privy on that particular items, **[00:34:45.220] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000612) mayroon pong pagbabago naman po doon sa NEP to GAA ay **[00:34:49.261] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000613) ang comparison lang po nito once we receive the Enrolled Bill **[00:34:53.303] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000614) bago po tayo mag-recommend. At yun nga po ang naging karampatang rekomendasyon was **[00:34:58.900] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000615) to subject kung meron man pong changes na na-introduce or new projects, **[00:35:03.180] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000616) ay isubstantiate po ng mga departments bago tuluyang ma-implement. **[00:35:06.880] Rep. Edgar R. Erice** (h2r5-turn-000617) Pero ang Secretary po ng DBM, isa lang yan. Marami po kayong mga staff na matatagal na dyan. **[00:35:12.300] Rep. Edgar R. Erice** (h2r5-turn-000618) Ano ba nangyari? Bakit pumayag? **[00:35:15.220] Rep. Edgar R. Erice** (h2r5-turn-000619) Hindi nyo ba brinief yung **[00:35:17.560] Rep. Edgar R. Erice** (h2r5-turn-000620) ating Executive, yung ating Presidente na **[00:35:20.840] Rep. Edgar R. Erice** (h2r5-turn-000621) ganyan **[00:35:21.860] Rep. Edgar R. Erice** (h2r5-turn-000622) ang ginagawa ng Kongreso? **[00:35:25.220] Rep. Edgar R. Erice** (h2r5-turn-000623) O **[00:35:25.780] Rep. Edgar R. Erice** (h2r5-turn-000624) wala na lang **[00:35:26.560] Rep. Edgar R. Erice** (h2r5-turn-000625) kayong kibo? Ganun po ba? **[00:35:31.540] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000626) Madam Chair, Your Honor, isa po sa observation na parati naman po na ipaparating din po is yung effect po ng mga changes na ito, particularly sa implementation ng iba pang mga priority projects. **[00:35:45.240] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000627) Kabila nga po sa ilang naapektuhan, would **[00:35:48.140] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000628) be some of the foreign-assisted projects na priority rin po ng administration. And this is regularly reported. **[00:35:55.560] Rep. Edgar R. Erice** (h2r5-turn-000629) So, priority po yung flood control? **[00:35:57.960] Rep. Edgar R. Erice** (h2r5-turn-000630) yung 1.45 insertions in 3 **[00:36:02.220] Rep. Edgar R. Erice** (h2r5-turn-000631) years? Priority po ba yan? **[00:36:05.340] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000632) Kaya po, Your Honor, Madam Chair, nandun po sa veto message na ito po mga changes in the budget as introduced, including among others, the flood control projects, ay **[00:36:14.740] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000633) dapat po na sumailalim sa **[00:36:16.540] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000634) determination ng department, substantiation po nila ng details itong mga proyekto na ito, **[00:36:23.400] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000635) including other applicable **[00:36:26.780] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000636) budget rules po, Your Honor, **[00:36:29.540] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000637) Madam Chair. **[00:36:33.910] Rep. Edgar R. Erice** (h2r5-turn-000638) Yun pong **[00:36:34.710] Rep. Edgar R. Erice** (h2r5-turn-000639) tungkol naman sa **[00:36:35.550] Rep. Edgar R. Erice** (h2r5-turn-000640) unprogrammed appropriations for your **[00:36:38.230] Rep. Edgar R. Erice** (h2r5-turn-000641) 2027 711.984 billion, **[00:36:42.370] Rep. Edgar R. Erice** (h2r5-turn-000642) ang pinakamalaki po dito ay DPWH **[00:36:47.290] Rep. Edgar R. Erice** (h2r5-turn-000643) When you submit all **[00:36:49.350] Rep. Edgar R. Erice** (h2r5-turn-000644) the projects, **[00:36:50.070] Rep. Edgar R. Erice** (h2r5-turn-000645) stated by the **[00:36:53.770] Rep. Edgar R. Erice** (h2r5-turn-000646) different implementations. **[00:36:55.870] Rep. Edgar R. Erice** (h2r5-turn-000647) At ano pong status dito mga ito? Ito ba mga, **[00:36:58.430] Rep. Edgar R. Erice** (h2r5-turn-000648) kasi po nakalagay dito, support to foreign-assisted projects, **[00:37:01.890] Rep. Edgar R. Erice** (h2r5-turn-000649) hindi sinabing foreign-assisted projects. **[00:37:04.830] Rep. Edgar R. Erice** (h2r5-turn-000650) So, ano po yung mga items na ito? At ano pong status ng mga foreign-assisted projects na ito? So, aprobado na ba ito? **[00:37:11.250] Rep. Edgar R. Erice** (h2r5-turn-000651) Kung hindi pa, **[00:37:12.410] Rep. Edgar R. Erice** (h2r5-turn-000652) gaano katagal ito **[00:37:14.030] Rep. Edgar R. Erice** (h2r5-turn-000653) mapoprocess? **[00:37:17.290] Rep. Edgar R. Erice** (h2r5-turn-000654) Kung aprobado na, bakit nasa unprogrammed, bakit hindi sa programmed? **[00:37:21.870] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000655) Madam Chair, Your Honor, lahat po ng foreign-assisted projects na nasa unprogrammed appropriations for 2027 ay sumasa ilalim pa po sa necessary approval sa ICC at **[00:37:33.250] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000656) sa ED Council **[00:37:34.350] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000657) At lahat po ng mga ongoing or aprobado na pong mga foreign-assisted projects ay nasa loob po ng **[00:37:39.890] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000658) programmed appropriations. We will submit **[00:37:42.570] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000659) to **[00:37:43.090] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000660) the Committee on Appropriations, Madam Chair, Your Honor, the breakdown of the support. Foreign-assisted projects na **[00:37:48.950] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000661) lahat po ay sumasa ilalim pa sa review ng ICC at ng ED County. **[00:37:53.410] Rep. Edgar R. Erice** (h2r5-turn-000662) Can you submit it at least one week or two weeks before the plenary? **[00:37:57.630] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000663) We will do, Your Honor. **[00:38:00.440] Rep. Edgar R. Erice** (h2r5-turn-000664) Thank you. And my next question **[00:38:02.100] Rep. Edgar R. Erice** (h2r5-turn-000665) is **[00:38:02.700] Rep. Edgar R. Erice** (h2r5-turn-000666) to **[00:38:04.200] Rep. Edgar R. Erice** (h2r5-turn-000667) Secretary Frederick Go **[00:38:09.870] Rep. Edgar R. Erice** (h2r5-turn-000668) Noong nagsasalita po kayo kanina, parang ang tingin ko napakaganda ng ekonomiya ng Pilipinas. **[00:38:15.130] Rep. Edgar R. Erice** (h2r5-turn-000669) You said that **[00:38:18.390] Rep. Edgar R. Erice** (h2r5-turn-000670) ang debt to GDP ratio natin is 56%. Tama po ba yan? **[00:38:26.390] DOF Secretary Frederick D. Go** (h2r5-turn-000671) Sir, the general **[00:38:28.530] DOF Secretary Frederick D. Go** (h2r5-turn-000672) government debt to **[00:38:30.230] DOF Secretary Frederick D. Go** (h2r5-turn-000673) GDP is **[00:38:32.210] DOF Secretary Frederick D. Go** (h2r5-turn-000674) currently at 58.6%. **[00:38:36.110] Rep. Edgar R. Erice** (h2r5-turn-000675) Is **[00:38:36.770] Rep. Edgar R. Erice** (h2r5-turn-000676) there any other parameter? Yung general debt? Meron pa po ba ang hindi general? **[00:38:42.170] DOF Secretary Frederick D. Go** (h2r5-turn-000677) Yes, sir. National government debt. **[00:38:45.640] Rep. Edgar R. Erice** (h2r5-turn-000678) Yan po. Ang tinatanong ko ay national government debt to GDP ratio, **[00:38:49.610] Rep. Edgar R. Erice** (h2r5-turn-000679) which is more **[00:38:50.590] Rep. Edgar R. Erice** (h2r5-turn-000680) appropriate. **[00:38:51.390] DOF Secretary Frederick D. Go** (h2r5-turn-000681) That is 64.9%, Your Honor. **[00:38:54.070] Rep. Edgar R. Erice** (h2r5-turn-000682) 64.9%. And it was announced by **[00:38:57.050] Rep. Edgar R. Erice** (h2r5-turn-000683) your **[00:38:58.090] Rep. Edgar R. Erice** (h2r5-turn-000684) office in February 3. Tama po? **[00:39:01.510] DOF Secretary Frederick D. Go** (h2r5-turn-000685) I **[00:39:02.150] DOF Secretary Frederick D. Go** (h2r5-turn-000686) cannot remember the date we announced. But that's the number po. 64.9% for national government debt to GDP. **[00:39:10.150] Rep. Edgar R. Erice** (h2r5-turn-000687) Salamat po sa **[00:39:11.210] Rep. Edgar R. Erice** (h2r5-turn-000688) Department of kay Secretary, kababayan ko, Ilocano. Secretary Balisacan **[00:39:18.590] Rep. Edgar R. Erice** (h2r5-turn-000689) Napaka, meron **[00:39:20.410] Rep. Edgar R. Erice** (h2r5-turn-000690) po kayong mga **[00:39:20.890] Rep. Edgar R. Erice** (h2r5-turn-000691) projections dito na pagtaas sa 2027-28. **[00:39:24.650] Rep. Edgar R. Erice** (h2r5-turn-000692) Nung ating GDP. Nung pagbabaan ng inflation. Ano pong basis nito? **[00:39:33.220] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000693) Well, the primary **[00:39:37.840] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000694) driver for the sharp slowdown in the last three quarters is one, the governance **[00:39:51.550] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000695) issues, **[00:39:52.390] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000696) right? Two, **[00:39:55.970] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000697) the **[00:39:56.290] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000698) Middle East conflict. **[00:40:00.730] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000699) led to sharp increases in oil prices that **[00:40:04.710] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000700) drove inflation sharply. **[00:40:08.590] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000701) And those combinations caused a **[00:40:12.090] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000702) taming or **[00:40:13.170] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000703) a deterioration of the consumer and business confidence. So yung **[00:40:25.630] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000704) domestic demand, **[00:40:28.410] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000705) slowdown. **[00:40:31.250] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000706) Significantly. **[00:40:32.010] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000707) Now, **[00:40:32.690] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000708) so moving forward, **[00:40:34.190] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000709) and what we are **[00:40:34.970] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000710) trying to convey here is **[00:40:38.070] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000711) that we **[00:40:39.210] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000712) must address those issues. **[00:40:41.130] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000713) Of **[00:40:41.410] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000714) course, we cannot do much about the **[00:40:43.330] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000715) Middle East conflict, **[00:40:44.270] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000716) but we should be able to respond through the appropriate tools in our **[00:40:47.890] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000717) hands to **[00:40:49.850] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000718) moderate the impact of those. And that's what we did under the Uplift program, for example. **[00:40:56.210] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000719) With respect to the other one, this governance and corruption. issues that **[00:41:02.410] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000720) also **[00:41:03.150] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000721) impacted on **[00:41:06.190] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000722) our domestic **[00:41:09.950] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000723) sentiments, business and consumer sentiments, that **[00:41:13.350] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000724) requires a lot **[00:41:18.290] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000725) of reforms from us, including **[00:41:20.950] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000726) those reforms that would have to come from Congress. **[00:41:24.510] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000727) I outlined this morning, for example, some of the **[00:41:28.470] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000728) laws that we must pass. to establish or re-establish trust in our institutions and governance, **[00:41:36.730] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000729) but we also can do a lot of things like **[00:41:40.170] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000730) speeding up the implementation of **[00:41:42.490] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000731) programs, particularly those overly delayed projects, **[00:41:48.090] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000732) so **[00:41:49.470] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000733) that the services of these projects can now be felt by ordinary Filipinos. Those, I think, will establish confidence and move us to move forward, will **[00:41:57.770] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000734) speed up our recovery. **[00:42:00.730] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000735) And that would enable us to **[00:42:02.778] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000736) achieve the 3.5 to 4 **[00:42:05.167] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000737) .5 **[00:42:05.849] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000738) growth for next year, for this year, and 5 to **[00:42:09.604] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000739) 6 **[00:42:10.286] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000740) for next year. **[00:42:11.570] Rep. Edgar R. Erice** (h2r5-turn-000741) Would you agree po na **[00:42:13.934] Rep. Edgar R. Erice** (h2r5-turn-000742) ang pinakamalaking dahilan dito ay yung pagpagsak ng ekonomiya natin **[00:42:18.661] Rep. Edgar R. Erice** (h2r5-turn-000743) ay **[00:42:19.134] Rep. Edgar R. Erice** (h2r5-turn-000744) yung budget and flood control scandal? **[00:42:22.310] Rep. Edgar R. Erice** (h2r5-turn-000745) Kasi po, **[00:42:23.110] Rep. Edgar R. Erice** (h2r5-turn-000746) wala pa namang Middle East crisis noong **[00:42:27.290] Rep. Edgar R. Erice** (h2r5-turn-000747) late **[00:42:28.310] Rep. Edgar R. Erice** (h2r5-turn-000748) 2025, pero bumagsak na ng... 3 **[00:42:31.408] Rep. Edgar R. Erice** (h2r5-turn-000749) yung **[00:42:31.746] Rep. Edgar R. Erice** (h2r5-turn-000750) GDP natin, from **[00:42:32.763] Rep. Edgar R. Erice** (h2r5-turn-000751) as **[00:42:33.102] Rep. Edgar R. Erice** (h2r5-turn-000752) high as 5%, di ba? Mahigit 5% **[00:42:38.540] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000753) There were already, even before the Middle East conflict, of course, there were already some other disturbances, **[00:42:43.980] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000754) like there **[00:42:47.760] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000755) was a surge in global trade **[00:42:52.320] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000756) uncertainty because of the, well, part **[00:42:55.440] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000757) because of the tariff, changing tariff regime in **[00:42:57.920] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000758) the U.S. That happened way before the... **[00:43:04.140] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000759) Middle East conflict, and that affected trade **[00:43:08.800] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000760) flows and investment flows around the world. **[00:43:12.180] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000761) And then, of course, as we were trying to recover from that, including the effects of, remember, we also had unfortunate climate **[00:43:23.960] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000762) -related issues during the last quarters of 2024 and **[00:43:30.240] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000763) early 2025. **[00:43:32.800] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000764) We **[00:43:33.280] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000765) are trying, or we are recovering from that when the Middle East conflict coming in. So, **[00:43:37.900] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000766) those combinations really **[00:43:40.440] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000767) dented **[00:43:44.540] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000768) our business **[00:43:47.140] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000769) and consumer confidence, and that's why the domestic demand, you could see, it's particularly consumption. **[00:43:54.600] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000770) So, **[00:43:55.140] Rep. Edgar R. Erice** (h2r5-turn-000771) do you think confidence will return? **[00:43:58.840] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000772) I believe **[00:43:59.500] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000773) so. We believe so. So, if you are, you know... So, **[00:44:01.360] Rep. Edgar R. Erice** (h2r5-turn-000774) kung hindi po nare-resolve yung governance issue? **[00:44:03.240] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000775) I believe so. We have to work as a whole of government, I don't think that any one sector, any **[00:44:10.403] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000776) one branch of government can resolve that issue. We have to work as an **[00:44:13.880] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000777) entire government, Congress, the executive, and even **[00:44:18.520] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000778) our judiciary. This is an issue that we, as **[00:44:20.980] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000779) a nation, we have to face. **[00:44:23.240] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000780) And, of course, there must be a public policy on that. **[00:44:25.840] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000781) And I think the executive department should lead the **[00:44:29.960] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000782) public **[00:44:31.300] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000783) policy. On the **[00:44:32.660] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000784) resolution of this governance issue. **[00:44:35.240] Rep. Edgar R. Erice** (h2r5-turn-000785) Ano po ba ang gagawin ng **[00:44:36.960] Rep. Edgar R. Erice** (h2r5-turn-000786) executive department dito sa pag-re-resolve nito, public policy issue? **[00:44:41.380] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000787) Yes, for those in the executive that we have control of, for example, I **[00:44:48.620] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000788) mentioned about the execution. This is faster execution of **[00:44:52.480] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000789) government programs, particularly infrastructure. **[00:44:56.280] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000790) I think that we can do, **[00:44:59.560] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000791) and **[00:44:59.760] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000792) that's what we are trying. We are now addressing. **[00:45:03.340] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000793) Because, you know, the **[00:45:04.560] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000794) two quarters **[00:45:07.080] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000795) of under **[00:45:09.060] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000796) -spending, **[00:45:09.740] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000797) if we can mobilize that in **[00:45:13.240] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000798) the second **[00:45:15.040] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000799) half of the year, **[00:45:16.500] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000800) that could **[00:45:17.680] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000801) drive growth substantially. **[00:45:21.220] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000802) And that is what we are working on, speeding up the implementation. In the meantime, **[00:45:27.500] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000803) Congress has also had to pass **[00:45:30.260] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000804) those... Those **[00:45:31.680] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000805) urgent laws that we have identified as key **[00:45:37.280] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000806) to re **[00:45:38.680] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000807) -establishing confidence in **[00:45:40.780] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000808) our institutions, particularly addressing the structural issues that I **[00:45:45.660] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-000809) also mentioned earlier. **[00:45:47.800] Rep. Edgar R. Erice** (h2r5-turn-000810) Thank you. I don't want to belabor the point, but my **[00:45:51.600] Rep. Edgar R. Erice** (h2r5-turn-000811) opinion is that the President should **[00:45:53.720] Rep. Edgar R. Erice** (h2r5-turn-000812) really mean it **[00:45:54.800] Rep. Edgar R. Erice** (h2r5-turn-000813) to resolve these issues of budget and floodgates. **[00:46:00.980] Rep. Edgar R. Erice** (h2r5-turn-000814) Control, infrastructure, scandal, to **[00:46:04.180] Rep. Edgar R. Erice** (h2r5-turn-000815) be able to regain the confidence of investors, businessmen, and even our foreign investors. Thank you. **[00:46:12.920] Rep. Edgar R. Erice** (h2r5-turn-000816) Last question **[00:46:13.640] Rep. Albert S. Garcia** (h2r5-turn-000817) That will be the last question. **[00:46:16.580] Rep. Edgar R. Erice** (h2r5-turn-000818) Mayroon pa. **[00:46:18.140] Rep. Albert S. Garcia** (h2r5-turn-000819) Mayroon na. **[00:46:19.180] Rep. Edgar R. Erice** (h2r5-turn-000820) Mayroon pa. **[00:46:20.140] Rep. Albert S. Garcia** (h2r5-turn-000821) Last question. Last question, Cong Egay. **[00:46:25.350] Rep. Edgar R. Erice** (h2r5-turn-000822) Maigsing-maigsi **[00:46:29.570] Rep. Edgar R. Erice** (h2r5-turn-000823) Sinabi kanina ni Secretary Frederick Go **[00:46:33.990] Rep. Edgar R. Erice** (h2r5-turn-000824) Kailangan po talaga may discipline yung spending natin sa **[00:46:37.590] Rep. Edgar R. Erice** (h2r5-turn-000825) kinakaharap natin **[00:46:38.730] Rep. Edgar R. Erice** (h2r5-turn-000826) na **[00:46:40.610] Rep. Edgar R. Erice** (h2r5-turn-000827) 1.6 trillion na deficit for this **[00:46:45.730] Rep. Edgar R. Erice** (h2r5-turn-000828) year? **[00:46:46.270] Rep. Edgar R. Erice** (h2r5-turn-000829) So, importante na yung gagastusin natin, **[00:46:48.650] Rep. Edgar R. Erice** (h2r5-turn-000830) magpapaunlad sa atin. **[00:46:51.460] Rep. Edgar R. Erice** (h2r5-turn-000831) Tama po, **[00:46:52.190] Rep. Edgar R. Erice** (h2r5-turn-000832) Secretary. **[00:46:54.240] Rep. Edgar R. Erice** (h2r5-turn-000833) Yung po bang katakot-takot, nakita ko po yung pag-angat ng maraming mga **[00:46:58.590] Rep. Edgar R. Erice** (h2r5-turn-000834) programa, katakot-takot po ayuda. **[00:47:03.250] Rep. Edgar R. Erice** (h2r5-turn-000835) In fact, kahit sa ayuda, **[00:47:04.990] Rep. Edgar R. Erice** (h2r5-turn-000836) pagdating po sa **[00:47:06.510] Rep. Edgar R. Erice** (h2r5-turn-000837) social, **[00:47:08.170] Rep. Edgar R. Erice** (h2r5-turn-000838) sa livelihood project **[00:47:11.630] Rep. Edgar R. Erice** (h2r5-turn-000839) na makapagpaangat ng kabuhayan, mas maliit kaysa dun sa talagang ayuda na pamigay lang para **[00:47:18.350] Rep. Edgar R. Erice** (h2r5-turn-000840) masinasaboy lang yung pera **[00:47:19.830] Rep. Edgar R. Erice** (h2r5-turn-000841) sa kalsada. For example, **[00:47:23.690] Rep. Edgar R. Erice** (h2r5-turn-000842) yung... **[00:47:24.770] Rep. Edgar R. Erice** (h2r5-turn-000843) For example, bigyan ko yun ng example. **[00:47:27.710] Rep. Edgar R. Erice** (h2r5-turn-000844) Yung po ba, wise utilization of resources? Yung... **[00:47:31.910] Rep. Edgar R. Erice** (h2r5-turn-000845) 8 billion pinamigay ng presidente sa **[00:47:35.850] Rep. Edgar R. Erice** (h2r5-turn-000846) 42,000 **[00:47:37.550] Rep. Edgar R. Erice** (h2r5-turn-000847) baranggays. **[00:47:39.530] Rep. Edgar R. Erice** (h2r5-turn-000848) 20,000 pesos **[00:47:41.630] Rep. Edgar R. Erice** (h2r5-turn-000849) sa limang eskolar. **[00:47:44.770] Rep. Edgar R. Erice** (h2r5-turn-000850) At 100,000 para sa mga proyekto ng **[00:47:48.810] Rep. Edgar R. Erice** (h2r5-turn-000851) baranggay. Do **[00:47:50.190] Rep. Edgar R. Erice** (h2r5-turn-000852) you have enough **[00:47:51.090] Rep. Edgar R. Erice** (h2r5-turn-000853) absorptive capacity to monitor kung saan napunta itong 8 billion na ito? Sa amin o, sa kaloocan. Yung **[00:48:00.410] Rep. Edgar R. Erice** (h2r5-turn-000854) 100,000 para sa iskolar, pinaghahati-hati, ginawang tiglilimang-libo **[00:48:05.570] Rep. Edgar R. Erice** (h2r5-turn-000855) Yung 100,000, mayroon **[00:48:08.330] Rep. Edgar R. Erice** (h2r5-turn-000856) pa ako gumawa ng project, yung stud sa **[00:48:11.150] Rep. Edgar R. Erice** (h2r5-turn-000857) kalsada, yung **[00:48:11.930] Rep. Edgar R. Erice** (h2r5-turn-000858) nilalagay. **[00:48:14.270] Rep. Edgar R. Erice** (h2r5-turn-000859) So, **[00:48:14.630] Rep. Edgar R. Erice** (h2r5-turn-000860) paano na mamonitor ito? Paano natin ma-account itong 8 billion na ito? **[00:48:20.070] Rep. Albert S. Garcia** (h2r5-turn-000861) Thank you for that last question, Cong Egay. **[00:48:24.010] Rep. Albert S. Garcia** (h2r5-turn-000862) I think that question was addressed to... **[00:48:29.510] Rep. Albert S. Garcia** (h2r5-turn-000863) Sa address, kay Sec. Kim. **[00:48:31.310] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000864) Yes, **[00:48:31.850] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000865) Mr. **[00:48:32.750] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000866) Chair, **[00:48:33.330] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000867) Your Honor. Kung ito po ay mga proyektong ini-implement po ng LGU galing po sa national government, meron po tayong standing agreement with DILG, bukod pa po ito sa regular audit function po ng Commission on Audit. So, DILG, Your Honor, is in charge po of monitoring the **[00:48:49.150] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000868) proper implementation of these projects vis-a-vis the guidelines for the utilization. But we'll take note of that particular concern, Your Honor. **[00:48:58.010] Rep. Edgar R. Erice** (h2r5-turn-000869) Thank you. **[00:48:59.510] Rep. Albert S. Garcia** (h2r5-turn-000870) Thank you, Cong Egay. Thank you, Sec. Kim. **[00:49:02.270] Rep. Albert S. Garcia** (h2r5-turn-000871) We now go back to the majority. **[00:49:05.370] Rep. Albert S. Garcia** (h2r5-turn-000872) May we call on Congressman Romeo **[00:49:08.690] Rep. Albert S. Garcia** (h2r5-turn-000873) Momo. **[00:49:10.030] Rep. Albert S. Garcia** (h2r5-turn-000874) Sir, you have the floor. **[00:49:13.340] Rep. Romeo S. Momo Sr.** (h2r5-turn-000875) Thank you, Mr. Chairman. Maraming salamat po. **[00:49:16.680] Rep. Romeo S. Momo Sr.** (h2r5-turn-000876) Mr. Chairman, I don't know where to address this question, but anyway. **[00:49:21.640] Rep. Romeo S. Momo Sr.** (h2r5-turn-000877) In the government's medium-term policy **[00:49:25.000] Rep. Romeo S. Momo Sr.** (h2r5-turn-000878) on infrastructure spending, **[00:49:28.300] Rep. Romeo S. Momo Sr.** (h2r5-turn-000879) the proposed budget allocation should be... between 5 to 6 percent of the GDP. **[00:49:34.060] Rep. Romeo S. Momo Sr.** (h2r5-turn-000880) I think this policy is consistent with all other emerging economies in the world. **[00:49:40.420] Rep. Romeo S. Momo Sr.** (h2r5-turn-000881) My question is, in **[00:49:42.580] Rep. Romeo S. Momo Sr.** (h2r5-turn-000882) our 2027 budget, **[00:49:44.360] Rep. Romeo S. Momo Sr.** (h2r5-turn-000883) how much had been... how **[00:49:47.160] Rep. Romeo S. Momo Sr.** (h2r5-turn-000884) many percent had **[00:49:49.280] Rep. Romeo S. Momo Sr.** (h2r5-turn-000885) been allocated for infrastructure **[00:49:52.360] Rep. Romeo S. Momo Sr.** (h2r5-turn-000886) development versus **[00:49:53.980] Rep. Romeo S. Momo Sr.** (h2r5-turn-000887) the projected GDP for 2027? **[00:49:58.380] Rep. Albert S. Garcia** (h2r5-turn-000888) So, Cong **[00:49:59.980] Rep. Albert S. Garcia** (h2r5-turn-000889) Momo, are you addressing to the question... to any particular agency? **[00:50:05.580] Rep. Romeo S. Momo Sr.** (h2r5-turn-000890) Anybody who can answer that, Mr. Chairman. **[00:50:08.940] Rep. Mikaela Angela B. Suansing** (h2r5-turn-000891) Chair Momo, if I may direct that question to the DBM. **[00:50:12.860] Rep. Mikaela Angela B. Suansing** (h2r5-turn-000892) So, what is the **[00:50:14.060] Rep. Mikaela Angela B. Suansing** (h2r5-turn-000893) infrastructure budget relative to the GDP? **[00:50:17.380] Rep. Romeo S. Momo Sr.** (h2r5-turn-000894) Yes, Madam Chair. **[00:50:18.480] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000895) Madam Chair, Your Honor. Infrastructure projects in the 2027 NEP is at 4.4 percent of our GDP. **[00:50:28.540] Rep. Romeo S. Momo Sr.** (h2r5-turn-000896) 4.4 percent is 1.467 **[00:50:31.300] Rep. Romeo S. Momo Sr.** (h2r5-turn-000897) trillion. I think. **[00:50:32.957] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000898) That is correct, Madam **[00:50:33.574] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000899) Chair, Your Honor. **[00:50:34.900] Rep. Romeo S. Momo Sr.** (h2r5-turn-000900) Which is way far behind 1.66 **[00:50:38.180] Rep. Romeo S. Momo Sr.** (h2r5-turn-000901) trillion if our GDP **[00:50:44.040] Rep. Romeo S. Momo Sr.** (h2r5-turn-000902) is 33 trillion in **[00:50:45.700] Rep. Romeo S. Momo Sr.** (h2r5-turn-000903) 2027. Tama ba ako, Madam **[00:50:50.420] Rep. Romeo S. Momo Sr.** (h2r5-turn-000904) Chair, na 33 trillion ang ating projected GDP for **[00:50:53.920] Rep. Romeo S. Momo Sr.** (h2r5-turn-000905) 2027? **[00:50:57.300] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000906) That is correct, Madam Chair, Your Honor. **[00:50:59.220] Rep. Romeo S. Momo Sr.** (h2r5-turn-000907) So, therefore, ang 5 percent sana is 1.66, di ba, Madam Chairman? So, malayo pa pa po tayo doon. **[00:51:05.800] Rep. Romeo S. Momo Sr.** (h2r5-turn-000908) Bakit po hindi natin binuo na lang ng buong 5 percent? **[00:51:10.220] Rep. Romeo S. Momo Sr.** (h2r5-turn-000909) So that we can catch up with all other countries in Asia or in the world. **[00:51:14.720] Rep. Romeo S. Momo Sr.** (h2r5-turn-000910) In terms of the infrastructure development. **[00:51:19.120] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000911) Actually, Madam Chair, Your Honor, yung isa pong consideration natin. **[00:51:24.730] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000912) Madam Chair, Your Honor, yung benchmark po na nabanggit po ng Honorable Congressman Momo, **[00:51:31.190] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000913) hindi pa po kasama doon sa binanggit po natin actually our ongoing public-private partnership. So, yung 4.4 percent po natin ay **[00:51:40.210] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000914) pawang yung nandun pa lang po sa National Expenditure Program. At meron pa po tayong mga infrastructure projects which we intend to undertake through PPP. **[00:51:49.210] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000915) Hopefully, pag in-add up po natin ito, **[00:51:52.090] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000916) can push up yung ating ratio of infraspending as a percentage of GDP higher close to the 5 percent benchmark. **[00:52:03.470] Rep. Romeo S. Momo Sr.** (h2r5-turn-000917) Yes, Madam Chair. Well, **[00:52:06.370] Rep. Romeo S. Momo Sr.** (h2r5-turn-000918) in the distribution of **[00:52:08.770] Rep. Romeo S. Momo Sr.** (h2r5-turn-000919) infra projects in 2027 by agencies, **[00:52:17.730] Rep. Romeo S. Momo Sr.** (h2r5-turn-000920) DPWH **[00:52:18.650] Rep. Romeo S. Momo Sr.** (h2r5-turn-000921) garnered 42.2 percent of the total share. **[00:52:22.730] Rep. Romeo S. Momo Sr.** (h2r5-turn-000922) Ang DOTR is second, is 16.9. **[00:52:26.850] Rep. Romeo S. Momo Sr.** (h2r5-turn-000923) Ang nagtataka lang ako, Madam Chair, ano ho itong GOCC's infrastructure program? **[00:52:34.730] Rep. Romeo S. Momo Sr.** (h2r5-turn-000924) Ano mga klaseng infrastruktura pa ito? **[00:52:39.850] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000925) Madam Chair, Your Honor, yun pong nakatag sa infrastructure projects under BSGC or GOCCs. **[00:52:46.510] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000926) Ito **[00:52:46.930] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000927) po yung ating subsidy para po sa mga GOCC's na mag-iimplement ng **[00:52:51.510] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000928) iba't ibang infrastructure project. Nangunguna na po diyan yung National Irrigation Administration, which **[00:52:57.110] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000929) is a GOCC na mag-iimplement po ng various irrigation projects nationwide. **[00:53:03.570] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000930) Kasama rin po diyan yung mga fish port projects under the Philippine **[00:53:08.110] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000931) Fisheries Development Authority as **[00:53:11.250] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000932) well as, among others, Your Honor. **[00:53:16.850] Rep. Romeo S. Momo Sr.** (h2r5-turn-000933) Madam Chair, in putting up an amount in its agencies **[00:53:21.610] Rep. Romeo S. Momo Sr.** (h2r5-turn-000934) of government, I think one of the consideration is **[00:53:25.030] Rep. Romeo S. Momo Sr.** (h2r5-turn-000935) the absorptive capacity. **[00:53:26.970] Rep. Romeo S. Momo Sr.** (h2r5-turn-000936) Am I right, Madam Chair? **[00:53:29.070] Rep. Romeo S. Momo Sr.** (h2r5-turn-000937) It's one of the parameters. **[00:53:31.030] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000938) Yes, Your Honor. Madam Chair, among others. **[00:53:34.970] Rep. Romeo S. Momo Sr.** (h2r5-turn-000939) Do you agree that, or **[00:53:37.790] Rep. Romeo S. Momo Sr.** (h2r5-turn-000940) are we in agreement na **[00:53:40.430] Rep. Romeo S. Momo Sr.** (h2r5-turn-000941) ang DepEd, which **[00:53:42.350] Rep. Romeo S. Momo Sr.** (h2r5-turn-000942) will have a 36.6 billion pesos for 2027, ang 2026 nga, hindi pa nila na-umpisahan, **[00:53:52.710] Rep. Romeo S. Momo Sr.** (h2r5-turn-000943) maubos kaya nila ito, Madam Chair? **[00:53:57.370] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000944) Madam Chair, Your Honor, that's one of the reasons kung bakit po ang recommended level for DPID classrooms ay 36.6 dahil po yung kanila pong 2026 appropriations ay currently pa lang po nila sinisimulang i **[00:54:10.876] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000945) -implement, i-procure o kabilang na po yung pagda-download sa mga LGUs as one of the modalities chosen by DepEd, Your Honor. **[00:54:19.530] Rep. Romeo S. Momo Sr.** (h2r5-turn-000946) The same is true in the Department of Agriculture, Madam Chairman. The **[00:54:24.210] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000947) amount is 37.99%, which is 2.6 share of the total infra budget. **[00:54:32.610] Rep. Romeo S. Momo Sr.** (h2r5-turn-000948) Ah, **[00:54:33.450] Rep. Romeo S. Momo Sr.** (h2r5-turn-000949) hindi mo ba, hindi ba alam din ng lahat na ang Department of Agriculture's projects in my, in our region is not yet started until now? **[00:54:43.290] Rep. Romeo S. Momo Sr.** (h2r5-turn-000950) For 2026. **[00:54:44.810] Rep. Romeo S. Momo Sr.** (h2r5-turn-000951) Wala pa po hindi pa na-umpisahan. **[00:54:47.010] Rep. Romeo S. Momo Sr.** (h2r5-turn-000952) So magpa-pile up lang po itong mga allocations ng ito. **[00:54:53.290] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000953) Madam Chair, Your Honor, we are aware po of the status of implementation of the Farm to Market Roads, kaya po ang narecommenda po naming level is less than the amount **[00:55:03.648] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000954) in **[00:55:03.982] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000955) the budget. originally proposed by the agency dahil po sa kanilang patuloy pa pong implementation of their 2026 project. **[00:55:10.810] Rep. Romeo S. Momo Sr.** (h2r5-turn-000956) I was wondering, Madam Chairman, **[00:55:12.470] Rep. Romeo S. Momo Sr.** (h2r5-turn-000957) when DPWH is the engineering arm of the government, **[00:55:16.230] Rep. Romeo S. Momo Sr.** (h2r5-turn-000958) bakit hindi natin ginamit sila ngayon? **[00:55:19.270] Rep. Romeo S. Momo Sr.** (h2r5-turn-000959) Bakit maliit lang ang ilagay natin sa kanila when we all **[00:55:23.250] Rep. Romeo S. Momo Sr.** (h2r5-turn-000960) believe that the absorptive capacity is of DPWH is even higher than the rest of the agencies **[00:55:31.410] Rep. Romeo S. Momo Sr.** (h2r5-turn-000961) implementing infra-projects? **[00:55:34.650] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000962) Madam Chair, Your Honor, isa rin po ito sa naging consideration ng DPWH at nung sila po ay ating **[00:55:42.010] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000963) tinanong during the budget preparation, **[00:55:44.930] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000964) mas nag **[00:55:45.590] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000965) -favor po sila na implement ito ng mga respective implementing agencies, pagamat available pa rin naman po na option kung **[00:55:54.030] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000966) yung implementing agency po ay pipili na gamitin ang DPWH as a partner, **[00:55:59.430] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000967) posibleng pa rin naman po ito subject to entering a memorandum of agreement for the purpose. **[00:56:04.830] Rep. Romeo S. Momo Sr.** (h2r5-turn-000968) Ah, yes, okay. The next question, Madam Chairman, **[00:56:09.090] Rep. Romeo S. Momo Sr.** (h2r5-turn-000969) is in the regional **[00:56:11.790] Rep. Romeo S. Momo Sr.** (h2r5-turn-000970) allocation, **[00:56:13.660] Rep. Romeo S. Momo Sr.** (h2r5-turn-000971) yung regionalized budget natin. **[00:56:15.650] Rep. Romeo S. Momo Sr.** (h2r5-turn-000972) For the longest time in many budgets that I have seen, **[00:56:20.170] Rep. Romeo S. Momo Sr.** (h2r5-turn-000973) lagi ho ang **[00:56:23.690] Rep. Romeo S. Momo Sr.** (h2r5-turn-000974) CAR at saka yung Caraga receives the lowest percentage here in terms of **[00:56:31.590] Rep. Romeo S. Momo Sr.** (h2r5-turn-000975) regionalized allocation. **[00:56:33.690] Rep. Romeo S. Momo Sr.** (h2r5-turn-000976) Ah, these regions are belong to the poorer regions in the country. Hindi ba magiging magandang polisiya sana na yung medyo mahirap na region ay tulungan natin para **[00:56:45.590] Rep. Romeo S. Momo Sr.** (h2r5-turn-000977) at least maka-catch up naman sa neighboring regions? **[00:56:59.100] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000978) Your Honor, Madam Chair, while we confirm po the figures referred to by the Honorable Momo is on the **[00:57:05.840] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000979) percent **[00:57:06.780] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000980) share, **[00:57:07.560] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000981) we would also like to submit na kung titignan din po natin yung per capita allocation nitong pong mga region, the region cited, **[00:57:14.740] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000982) which is CAR and Caraga actually has higher per **[00:57:18.380] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000983) capita allocation kung **[00:57:20.900] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000984) ikukumpara po natin sa average po ng bawat rehiyon. **[00:57:24.140] Rep. Romeo S. Momo Sr.** (h2r5-turn-000985) Per capita allocation I think is one of your criteria but **[00:57:27.840] Rep. Romeo S. Momo Sr.** (h2r5-turn-000986) land area is also one, di ba? **[00:57:30.600] Rep. Romeo S. Momo Sr.** (h2r5-turn-000987) And then the absence of infrastructure projects. **[00:57:34.740] Rep. Romeo S. Momo Sr.** (h2r5-turn-000988) Hindi ba kaya, hindi ba niyo tinitingnan din na itong mga ito ay **[00:57:40.520] Rep. Romeo S. Momo Sr.** (h2r5-turn-000989) talagang **[00:57:41.540] Rep. Romeo S. Momo Sr.** (h2r5-turn-000990) kulang na kulang in terms of infrastructure and then yung land area is mas malaki pa kaysa iba siguro mga regions. **[00:57:51.300] Rep. Romeo S. Momo Sr.** (h2r5-turn-000991) I mean, **[00:57:51.980] Rep. Romeo S. Momo Sr.** (h2r5-turn-000992) it's better to revisit siguro in your next planning yung **[00:57:56.280] Rep. Romeo S. Momo Sr.** (h2r5-turn-000993) mga ganoon na mga criterias kasi **[00:57:59.020] Rep. Romeo S. Momo Sr.** (h2r5-turn-000994) lagi na lang in almost all budget that I have attended, laging kulilat ang mga regions na ito. **[00:58:06.280] Rep. Romeo S. Momo Sr.** (h2r5-turn-000995) Kaya hindi sila maka-take off. **[00:58:09.160] Rep. Romeo S. Momo Sr.** (h2r5-turn-000996) They cannot catch up with the other regional offices. The regional **[00:58:13.827] Rep. Romeo S. Momo Sr.** (h2r5-turn-000997) centers because the assistance given by the government is not that much. **[00:58:21.710] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-000998) Madam Chair, Your Honor, we thank the Honorable Momo for that suggestion and definitely as we revisit po yung aming planning and budgeting linkage processes, isasama po namin yan sa aming improvement of the budget process. **[00:58:35.810] Rep. Romeo S. Momo Sr.** (h2r5-turn-000999) And please look into also the **[00:58:38.970] Rep. Romeo S. Momo Sr.** (h2r5-turn-001000) absence of infra as against **[00:58:42.030] Rep. Romeo S. Momo Sr.** (h2r5-turn-001001) the area. **[00:58:44.150] Rep. Romeo S. Momo Sr.** (h2r5-turn-001002) There is such parameter, as road **[00:58:46.410] Rep. Romeo S. Momo Sr.** (h2r5-turn-001003) length versus area. **[00:58:47.670] Rep. Romeo S. Momo Sr.** (h2r5-turn-001004) Kung tingnan nyo, ang Mindanao talaga **[00:58:49.590] Rep. Romeo S. Momo Sr.** (h2r5-turn-001005) kulang, malaking area ang Mindanao, **[00:58:51.890] Rep. Romeo S. Momo Sr.** (h2r5-turn-001006) particularly Caraga. **[00:58:55.310] Rep. Romeo S. Momo Sr.** (h2r5-turn-001007) Pero tingnan mo, medyo kulang, na kulang ang **[00:59:00.970] Rep. Romeo S. Momo Sr.** (h2r5-turn-001008) infrastructure development sa area na yan. **[00:59:03.460] Rep. Romeo S. Momo Sr.** (h2r5-turn-001009) That's all, Madam Chair. **[00:59:05.140] Rep. Albert S. Garcia** (h2r5-turn-001010) Thank you very much, Cong. Momo, **[00:59:07.560] Rep. Albert S. Garcia** (h2r5-turn-001011) for **[00:59:08.680] Rep. Albert S. Garcia** (h2r5-turn-001012) strictly and religiously sticking **[00:59:12.960] Rep. Albert S. Garcia** (h2r5-turn-001013) sticking with the time allotted. **[00:59:15.750] Rep. Albert S. Garcia** (h2r5-turn-001014) Mayroon bang pending questions? **[00:59:17.620] Rep. Albert S. Garcia** (h2r5-turn-001015) Salamat po. So, now we go to the next **[00:59:19.930] Rep. Albert S. Garcia** (h2r5-turn-001016) representative. **[00:59:24.050] Rep. Albert S. Garcia** (h2r5-turn-001018) Back to the minority. May **[00:59:26.510] Rep. Albert S. Garcia** (h2r5-turn-001019) we call on Congresswoman Dadah Ismula. **[00:59:29.990] Rep. Albert S. Garcia** (h2r5-turn-001020) Ma'am, you have the floor. **[00:59:32.210] Rep. Dadah Kiram Ismula** (h2r5-turn-001021) Magandang. Maraming salamat po, Mr. Chair, Madam Chair. **[00:59:37.170] Rep. Dadah Kiram Ismula** (h2r5-turn-001022) Assalamualaikum. **[00:59:39.730] Rep. Dadah Kiram Ismula** (h2r5-turn-001023) Maulan at **[00:59:41.550] Rep. Dadah Kiram Ismula** (h2r5-turn-001024) maayong hapon sa atong tanan. **[00:59:45.470] Rep. Dadah Kiram Ismula** (h2r5-turn-001025) Mayroon lamang po kong mga ilang katanungan para sa DBM po. **[00:59:50.470] Rep. Dadah Kiram Ismula** (h2r5-turn-001026) Una, sa initial na assessment ng Akbayan sa ating NEP **[00:59:55.670] Rep. Dadah Kiram Ismula** (h2r5-turn-001027) for fiscal year 2027, **[00:59:59.450] Rep. Dadah Kiram Ismula** (h2r5-turn-001028) We found that there is a 17.3 increase in the budget allocation for debt interest payments from last year. **[01:00:08.760] Rep. Dadah Kiram Ismula** (h2r5-turn-001029) The 1.1 trillion peso para sa debt service for 2027 is 15 15.5 of the total proposed budget. **[01:00:19.550] Rep. Dadah Kiram Ismula** (h2r5-turn-001030) Kung baga, ang binabayad natin sa mga utang halos katumbas sa bina-budget natin sa LGU sa buong bansa. for next next year. Ganon po siya kalaki, no? **[01:00:33.420] Rep. Dadah Kiram Ismula** (h2r5-turn-001031) So, to DBM, what specific programs or investments were deprioritized to accommodate the debt service burden po? **[01:01:00.200] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001032) Your Honor, Madam Chair, as to specific projects, kung ikukumpara po, kung babalikan po natin siguro po, no, from the original submission pa lamang ng mga ahensya, that's **[01:01:10.860] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001033) 11.9 trillion **[01:01:12.020] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001034) So, dun pa lamang po, meron po tayong level of prioritization na ginawa at even **[01:01:18.340] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001035) po yung proposal ng mga agencies in implementing the foreign assisted projects ay hindi po natin **[01:01:23.520] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001036) naman ibinigay lahat dahil in-assess din po natin yung **[01:01:27.040] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001037) kakayahan nila to actually spend it during the fiscal **[01:01:30.380] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001038) year. But with the indulgence of the good Congresswoman, **[01:01:34.920] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001039) medyo wala po kaming maibibigay na one specific project na hindi na naisama dahil po dun sa atin. which is actually an automatic appropriation po. But on a comparison, just on an aggregate level, from the proposal to the NEP, meron po talagang certain different projects na hindi po nakasama because of the limited fiscal space that we have. **[01:01:59.160] Rep. Dadah Kiram Ismula** (h2r5-turn-001040) So ibig sabihin po, hindi ninyo maibibigay na specific kung ano yung na **[01:02:05.060] Rep. Dadah Kiram Ismula** (h2r5-turn-001041) deprioritize ninyo para lang ma-accommodate yung debt service natin or debt **[01:02:10.240] Rep. Dadah Kiram Ismula** (h2r5-turn-001042) service burden natin. **[01:02:14.020] Rep. Dadah Kiram Ismula** (h2r5-turn-001043) Dahil gineneralize ninyo na **[01:02:15.860] Rep. Dadah Kiram Ismula** (h2r5-turn-001044) bawat ahensya, may **[01:02:19.440] Rep. Dadah Kiram Ismula** (h2r5-turn-001045) mga ilang proyekto kayong hindi **[01:02:21.880] Rep. Dadah Kiram Ismula** (h2r5-turn-001046) inaprubahan. Tama ba? **[01:02:25.040] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001047) Yes, Madam Chair, Your Honor, that is correct. Kasi po halos lahat naman po ay may mas mahabang listahan kaysa po dun sa actual na naibigay sa NEP. So, hindi lamang po siguro ito a handful of projects if that would be the question of Your Honor. **[01:02:40.960] Rep. Dadah Kiram Ismula** (h2r5-turn-001048) Yeah. **[01:02:42.400] Rep. Dadah Kiram Ismula** (h2r5-turn-001049) Actually kahit hindi nyo po sabihin, nakikita naman po namin sa NEP kung ano yung mga **[01:02:49.153] Rep. Dadah Kiram Ismula** (h2r5-turn-001050) hindi na-accommodate. Pero **[01:02:50.954] Rep. Dadah Kiram Ismula** (h2r5-turn-001051) dahil dyan, hindi ko na po bubusisiin, **[01:02:54.106] Rep. Dadah Kiram Ismula** (h2r5-turn-001052) nakita naman po namin, nabanggit kasi kanina ang mga foreign **[01:02:58.608] Rep. Dadah Kiram Ismula** (h2r5-turn-001053) assisted projects na nakapaloob sa unprogrammed appropriations. **[01:03:02.100] Rep. Dadah Kiram Ismula** (h2r5-turn-001054) Can you confirm po kung hindi na-meet **[01:03:06.080] Rep. Dadah Kiram Ismula** (h2r5-turn-001055) na or hindi na-me-meet ng gobyerno ang ating counterpart funding obligation? At hindi ito na-implement. May mga kaakibat na commitment fees, penalty, charges, o non-utilization fees na binabayaran mula sa budget ng bayan sa mga lenders. Tama po ba? **[01:03:27.400] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001056) Tama po, Your Honor, as to commitment fees kung hindi po natin na-utilize yung ating loan. **[01:03:33.040] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001057) Kaya po, priority natin na inilagay po ito ngayon sa programed appropriations, lalo na po sa mga ongoing projects. **[01:03:40.520] Rep. Dadah Kiram Ismula** (h2r5-turn-001058) Can **[01:03:41.120] Rep. Dadah Kiram Ismula** (h2r5-turn-001059) you tell us po? How much the fees and penalties have been incurred from these delayed projects transferred to the UA since 2022 po? **[01:03:56.440] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001060) Madam Chair, Your Honor, may we defer to DOF? **[01:04:00.540] Rep. Albert S. Garcia** (h2r5-turn-001061) Can DOF reply? **[01:04:04.840] DOF Secretary Frederick D. Go** (h2r5-turn-001062) Madam **[01:04:05.600] DOF Secretary Frederick D. Go** (h2r5-turn-001063) Chair, **[01:04:06.540] DOF Secretary Frederick D. Go** (h2r5-turn-001064) for commitment fees incurred, we have incurred a total of 3.4 billion pesos during **[01:04:14.620] DOF Secretary Frederick D. Go** (h2r5-turn-001065) the Marcos administration. **[01:04:16.440] Rep. Dadah Kiram Ismula** (h2r5-turn-001066) Mula 2022 up to the present? **[01:04:18.720] DOF Secretary Frederick D. Go** (h2r5-turn-001067) Yes, ma'am. **[01:04:20.400] Rep. Dadah Kiram Ismula** (h2r5-turn-001068) Okay, salamat po. Can you confirm that these penalties and fees form part of the debt interest payment category for this year? **[01:04:29.260] DOF Secretary Frederick D. Go** (h2r5-turn-001069) Your Honor, can I clarify? **[01:04:32.280] DOF Secretary Frederick D. Go** (h2r5-turn-001070) What I gave you is not penalties, it's commitment fees. **[01:04:36.620] Rep. Dadah Kiram Ismula** (h2r5-turn-001071) Yung tanong ko po kasi sa inyo, sir, is yung ano to, can you tell us how much fees and penalties have incurred from **[01:04:45.460] Rep. Dadah Kiram Ismula** (h2r5-turn-001072) these... penalties have been incurred from projects transferred to UAE mula 2022 po. **[01:04:55.750] Rep. Dadah Kiram Ismula** (h2r5-turn-001073) Hindi po yung commitment fees po. **[01:04:58.490] DOF Secretary Frederick D. Go** (h2r5-turn-001074) Kasi, Your Honor, Madam Chair, if I can explain. **[01:05:01.230] Rep. Albert S. Garcia** (h2r5-turn-001074-split-2) Go ahead. **[01:05:04.510] DOF Secretary Frederick D. Go** (h2r5-turn-001075) There's technically no penalty. These are the commitment fees you pay. **[01:05:07.190] DOF Secretary Frederick D. Go** (h2r5-turn-001076) If the project does not go ahead, you lose the commitment fee you paid. So there's technically no penalty. **[01:05:14.690] DOF Secretary Frederick D. Go** (h2r5-turn-001077) But this is the total commitment fees we've paid. **[01:05:18.290] Rep. Dadah Kiram Ismula** (h2r5-turn-001078) Hindi po ba na kapag meron tayong foreign-assisted programs, na kapag hindi po natin nai-utilize, eh, meron po sa kontrata na nakalagay na mape-penalty tayo? **[01:05:29.790] Rep. Dadah Kiram Ismula** (h2r5-turn-001079) Can you confirm lang po? Kung mali po ako, that's fine. Just tell us po. **[01:05:34.370] DOF Secretary Frederick D. Go** (h2r5-turn-001080) Ma'am, yeah, I think, Your Honor, Madam Chair, yes, I may have to **[01:05:38.870] DOF Secretary Frederick D. Go** (h2r5-turn-001081) confirm that there is no penalties. **[01:05:42.890] DOF Secretary Frederick D. Go** (h2r5-turn-001082) I think, Madam Chair, what the Honorable Congressman is referring to, **[01:05:48.290] DOF Secretary Frederick D. Go** (h2r5-turn-001083) are the contracts of, say, DOTR or DPWH, those have penalties. But from the point of view of DOF, ma'am, we have no penalties. **[01:05:57.250] Rep. Dadah Kiram Ismula** (h2r5-turn-001084) So commitment fees lang? **[01:05:59.010] DOF Secretary Frederick D. Go** (h2r5-turn-001085) Yes. **[01:05:59.610] Rep. Dadah Kiram Ismula** (h2r5-turn-001086) Okay po. **[01:06:01.890] Rep. Dadah Kiram Ismula** (h2r5-turn-001087) Pwede, salamat po sa naging response ninyo, Mr. Secretary, Madam Chair, **[01:06:07.390] Rep. Dadah Kiram Ismula** (h2r5-turn-001088) Mr. Chair. **[01:06:10.310] Rep. Dadah Kiram Ismula** (h2r5-turn-001089) Tatalon po ako ulit sa DBM. Patungkol po ito sa effects of El Nino. **[01:06:16.590] Rep. Dadah Kiram Ismula** (h2r5-turn-001090) Base sa **[01:06:19.310] Rep. Dadah Kiram Ismula** (h2r5-turn-001091) 193rd DBCC Statement ng Medium Term Macroeconomic Assumptions posted on the DBM website na identify po ninyo ang effects ng El Nino na pwedeng risk sa ating economic growth. **[01:06:35.590] Rep. Dadah Kiram Ismula** (h2r5-turn-001092) Ang budget ba na-prinopose para sa 2027, hinahanda ba ang taong **[01:06:41.870] Rep. Dadah Kiram Ismula** (h2r5-turn-001093) bayan sa panahon ng ulan, baha at tagtuyot? **[01:06:46.310] Rep. Dadah Kiram Ismula** (h2r5-turn-001094) Kasi medyo nakita. Nakita po kasi namin na pareho ang budget ng Calamity Fund this year at last year. So **[01:06:53.210] Rep. Dadah Kiram Ismula** (h2r5-turn-001095) hinahanda ba natin ito? **[01:06:55.710] Rep. Dadah Kiram Ismula** (h2r5-turn-001096) Dahil may na-presume na tayo na **[01:06:57.810] Rep. Dadah Kiram Ismula** (h2r5-turn-001097) effects ng El Nino. **[01:07:01.770] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001098) Madam Chair, your honor, bukod po dun sa nabanggit na Calamity Fund at na **[01:07:07.490] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001099) nakaantabay po sa ating budget, kung pinag-uusapan po ang El Nino, kasama pa rin po dito yung mga regular programs ng mga departamento, katulad na po ng DA. Meron po silang mga provision for **[01:07:20.450] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001100) instance fertilizers as well as yun **[01:07:24.290] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001101) pong mga irrigation projects, solar irrigation projects na maaari pong makatulong na **[01:07:29.830] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001102) makapag-improve ng agricultural productivity. So hindi lamang po yung lump sum, your honor, **[01:07:34.810] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001103) yung maaaring gamitin po ng mga ahensya sa pag-respond po sa risk ng El Nino. **[01:07:40.770] Rep. Dadah Kiram Ismula** (h2r5-turn-001104) Opo, **[01:07:41.470] Rep. Dadah Kiram Ismula** (h2r5-turn-001105) naintindihan ko po yun. Kaso lang po, doon po sa posted ninyo sa inyong website po, meron kayong assumptions na tataas nga yung effect po by 2027. **[01:07:53.970] Rep. Dadah Kiram Ismula** (h2r5-turn-001106) So yung pinagtatakan lang po kasi namin, bakit pareho yung Calamity Fund natin ng taong ito at saka ng 2027? Yun po kasi yung gusto namin makita. **[01:08:06.930] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001107) Madam Chair, your honor, to respond po. **[01:08:08.170] Rep. Albert S. Garcia** (h2r5-turn-001107-split-2) Please reply. **[01:08:09.990] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001108) Bukod po doon sa nabanggit po na lump sum na Calamity Fund, yung pag-respond din po kasi sa El Nino, in fact, ay naging bahagi na rin po nung konsiderasyon ng uplift program this year. **[01:08:21.230] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001109) So hindi lamang po yung Calamity Fund next year, **[01:08:23.870] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001110) meron din po tayong mga ibinibigay na **[01:08:26.350] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001111) karagdagang tulong po sa DA para mapaghandaan po yung papasok na El Nino na hindi po kailangan hintayin yung 2027. **[01:08:36.970] Rep. Dadah Kiram Ismula** (h2r5-turn-001112) Sa unprogrammed din po ba yun po? **[01:08:39.930] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001113) Your honor, Madam Chair, hindi po sa unprogrammed appropriations kasama po bilang uplift, yung paggamit po ng mga na-identify na savings para po maitulong po doon sa mga ahensya na mag-implement ng uplift program. **[01:08:53.110] Rep. Dadah Kiram Ismula** (h2r5-turn-001114) Yes. **[01:08:53.670] Rep. Dadah Kiram Ismula** (h2r5-turn-001115) Maraming salamat po. Mr. Chair, one last question po para po sa ating dep-dev naman po. **[01:09:00.590] Rep. Dadah Kiram Ismula** (h2r5-turn-001116) Pagbigyan nyo na po ko, Madam Chair. Yes, **[01:09:02.950] Rep. Albert S. Garcia** (h2r5-turn-001117) please go ahead, ma'am. **[01:09:04.210] Rep. Dadah Kiram Ismula** (h2r5-turn-001118) Unemployment is projected to rise to 5.3 to 5.8 percent in **[01:09:10.410] Rep. Dadah Kiram Ismula** (h2r5-turn-001119) 2026, a **[01:09:12.010] Rep. Dadah Kiram Ismula** (h2r5-turn-001120) full point above 2025. Before **[01:09:14.890] Rep. Dadah Kiram Ismula** (h2r5-turn-001121) easing to 4 to 5 percent in 2027 because **[01:09:19.390] Rep. Dadah Kiram Ismula** (h2r5-turn-001122) the DBCC identified slower OFW remittances dahil sa Middle East tensions at economic growth risk. **[01:09:28.870] Rep. Dadah Kiram Ismula** (h2r5-turn-001123) Handa ba ang 2027 budget na **[01:09:32.530] Rep. Dadah Kiram Ismula** (h2r5-turn-001124) tugunan ang pangangailangan ng ating mga OFWs, hindi lang para sa repatriation pero pag-generate din ng jobs para sa gustong bumalik sa bansa? **[01:09:44.370] Rep. Dadah Kiram Ismula** (h2r5-turn-001125) Bukod doon, can you also explain to the committee in plain and simple terms how many industry sectors jobs the NEP 2027 will generate po? **[01:09:58.150] Rep. Albert S. Garcia** (h2r5-turn-001126) Thank you very much, **[01:09:59.730] Rep. Albert S. Garcia** (h2r5-turn-001127) Cong. Dada. Dep-dev, Sec Arsi, please reply. **[01:10:06.960] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001128) The **[01:10:07.800] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001129) issue **[01:10:08.640] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001130) about OFWs is **[01:10:10.800] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001131) being tackled under the uplift program. For the government, this **[01:10:16.880] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001132) involves assistance and reintegration of displaced **[01:10:21.440] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001133) workers and I **[01:10:23.020] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001134) think **[01:10:23.860] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001135) when **[01:10:25.820] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001136) the **[01:10:27.220] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001137) Department of Migrant Workers will be here, **[01:10:32.340] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001138) they could provide more details about what **[01:10:35.260] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001139) assistance **[01:10:36.920] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001140) they provided, Madam Chair. **[01:10:39.220] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001141) I **[01:10:39.920] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001142) don't have with me those details. **[01:10:42.700] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001143) With respect to the... **[01:10:45.140] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001144) How the budget for 2027 creates **[01:10:50.580] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001145) jobs, **[01:10:53.700] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001146) higher quality jobs, particularly in industry, **[01:10:57.480] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001147) we haven't **[01:11:02.120] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001148) crossed the numbers but if **[01:11:06.280] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001149) we spend the budget **[01:11:09.620] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001150) and tailor the budget in the way we discussed **[01:11:13.980] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001151) this morning, it's currently framed, **[01:11:16.720] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001152) meaning addressing **[01:11:18.320] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001153) the high **[01:11:20.000] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001154) priorities for recovering economic growth **[01:11:23.260] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001155) to **[01:11:24.840] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001156) higher levels because the **[01:11:26.220] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001157) numbers that the increase in the number of workers and the unemployed workers that you **[01:11:32.800] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001158) mentioned, Madam Chairs, is precisely because of the slowdown, sharp slowdown. **[01:11:39.160] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001159) And **[01:11:39.680] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001160) our **[01:11:40.680] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001161) hope is that we are able to recover quickly. **[01:11:45.140] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001162) Through the deployment, proper deployment of the budget next year. **[01:11:49.360] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001163) Thank you **[01:11:49.620] Rep. Dadah Kiram Ismula** (h2r5-turn-001164) varaming salamat, Mr. Chair, Madam Chair, at maraming salamat din po **[01:11:54.760] Rep. Dadah Kiram Ismula** (h2r5-turn-001165) DepDev **[01:11:55.900] Rep. Albert S. Garcia** (h2r5-turn-001166) Maraming salamat po, Cong. Dada and Sec Arsi. **[01:11:59.980] Rep. Albert S. Garcia** (h2r5-turn-001167) Now, back to the majority, may we call on **[01:12:03.220] Rep. Albert S. Garcia** (h2r5-turn-001168) Congresswoman Gila. **[01:12:06.560] Rep. Albert S. Garcia** (h2r5-turn-001169) You **[01:12:07.080] Rep. Albert S. Garcia** (h2r5-turn-001170) have the floor. **[01:12:08.780] Rep. Maria Angela S. Garcia** (h2r5-turn-001171) Thank you very much, Mr. Chair. **[01:12:11.980] Rep. Maria Angela S. Garcia** (h2r5-turn-001172) Magandang-magandang hapon na po sa ating lahat. Policy question, **[01:12:16.000] Rep. Maria Angela S. Garcia** (h2r5-turn-001173) Mr. Chair, to DBM and to Dep-Dev. **[01:12:20.200] Rep. Maria Angela S. Garcia** (h2r5-turn-001174) In terms of bottom-up **[01:12:22.420] Rep. Maria Angela S. Garcia** (h2r5-turn-001175) and top-down approach in terms of our budget process. **[01:12:27.640] Rep. Maria Angela S. Garcia** (h2r5-turn-001176) Ako po ay kinatawan ng ikatlong distrito ng Lalawigan ng Bataan. So, yung mandato ko po ay galing sa constituents ng probinsya ng apat na munisipyo up to barangay and sectoral **[01:12:40.700] Rep. Maria Angela S. Garcia** (h2r5-turn-001177) representatives ng aking distrito. I **[01:12:46.100] Rep. Maria Angela S. Garcia** (h2r5-turn-001178) advocate bottom-up approach in terms of the budget process kasi syempre alam natin yung baseline, alam natin yung pangangailangan, and through consultation, **[01:12:57.920] Rep. Maria Angela S. Garcia** (h2r5-turn-001179) dumadaan po sa Barangay Development Council, **[01:13:01.140] Rep. Maria Angela S. Garcia** (h2r5-turn-001180) Municipal Development Council, **[01:13:03.620] Rep. Maria Angela S. Garcia** (h2r5-turn-001181) Provincial Development Council, and then Regional Development Council. **[01:13:09.020] Rep. Maria Angela S. Garcia** (h2r5-turn-001182) So, **[01:13:09.820] Rep. Maria Angela S. Garcia** (h2r5-turn-001183) yung **[01:13:12.040] Rep. Maria Angela S. Garcia** (h2r5-turn-001184) prosesong yun, medyo clear po. **[01:13:15.140] Rep. Maria Angela S. Garcia** (h2r5-turn-001185) Sa atin, **[01:13:16.060] Rep. Maria Angela S. Garcia** (h2r5-turn-001186) may observation lang po ako na gusto ko po sanang i-clarify na **[01:13:21.740] Rep. Maria Angela S. Garcia** (h2r5-turn-001187) from **[01:13:23.580] Rep. Maria Angela S. Garcia** (h2r5-turn-001188) Regional Development Council, **[01:13:25.620] Rep. Maria Angela S. Garcia** (h2r5-turn-001189) pupunta **[01:13:27.540] Rep. Maria Angela S. Garcia** (h2r5-turn-001190) po siya sa Central Agencies and Central Dep-Dev, and nandito po tayo sa DBCC, **[01:13:33.460] Rep. Maria Angela S. Garcia** (h2r5-turn-001191) parang meron pong blind spot in **[01:13:37.240] Rep. Maria Angela S. Garcia** (h2r5-turn-001192) terms of yung **[01:13:39.140] Rep. Maria Angela S. Garcia** (h2r5-turn-001193) mga PPAs proposed and approved up to Regional Development Council. **[01:13:44.160] Rep. Maria Angela S. Garcia** (h2r5-turn-001194) Hindi po. Hindi po klaro sino po yung nagbibigay o nag-set ng ceilings, sino po **[01:13:53.585] Rep. Maria Angela S. Garcia** (h2r5-turn-001195) yung finally nagde-determine ng PPAs na lumalabas po sa NEP. **[01:14:00.420] Rep. Maria Angela S. Garcia** (h2r5-turn-001196) At siguro itong blind spot na ito, **[01:14:03.160] Rep. Maria Angela S. Garcia** (h2r5-turn-001197) parang kung tatanongin yung mga regions, malalaman na lang po nila kung ano po yung PPAs na lumabas sa NEP pagkalabas po ng NEP. So, parang meron po tayong gap in **[01:14:16.520] Rep. Maria Angela S. Garcia** (h2r5-turn-001198) terms of a **[01:14:18.480] Rep. Maria Angela S. Garcia** (h2r5-turn-001199) disruptive in a positive way discussion na sana napagkakasunduan, napag-uusapan, napag-aawayan, napag **[01:14:31.820] Rep. Maria Angela S. Garcia** (h2r5-turn-001200) -didiskusyonan yung talagang pangangailangan. At **[01:14:35.820] Rep. Maria Angela S. Garcia** (h2r5-turn-001201) yun pong kung yun talagang limitadong budget at napag **[01:14:40.900] Rep. Maria Angela S. Garcia** (h2r5-turn-001202) -diskusyonan. **[01:14:43.360] Rep. Maria Angela S. Garcia** (h2r5-turn-001203) Ito talaga yung budget. Alam lang po sana natin yung talagang pangangailangan sa baba, which is yun po yung **[01:14:51.920] Rep. Maria Angela S. Garcia** (h2r5-turn-001204) pinakamahalaga na yung **[01:14:55.520] Rep. Maria Angela S. Garcia** (h2r5-turn-001205) bottom-up and top-down ay **[01:14:57.860] Rep. Maria Angela S. Garcia** (h2r5-turn-001206) nagkakaisa **[01:15:01.020] Rep. Maria Angela S. Garcia** (h2r5-turn-001207) sa ating budget process. So, parang, Mr. Chair, there's **[01:15:07.620] Rep. Maria Angela S. Garcia** (h2r5-turn-001208) an observation and I'm identifying that this gap, this blind spot, needs to be rectified **[01:15:14.340] Rep. Maria Angela S. Garcia** (h2r5-turn-001209) para **[01:15:17.260] Rep. Maria Angela S. Garcia** (h2r5-turn-001210) talagang yung trabaho natin, yung implement ng executive, ay base sa baseline needs, objectives, at sinusukat natin dapat ang performance ng bawat ahensya in relation **[01:15:33.140] Rep. Maria Angela S. Garcia** (h2r5-turn-001211) to yung mga LGU performances natin. Yun po yung first question, Mr. Chair. **[01:15:39.440] Rep. Albert S. Garcia** (h2r5-turn-001212) Thank you. Sec. Kim, please reply. **[01:15:43.420] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001213) Mr. Chair, Your Honor, pagamat po merong isang budget form, yun po yung tinatawag na Form C na dapat pong **[01:15:50.820] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001214) in-accomplish ng mga Regional Development Council para masiguro na yun pong mga proposal ay talagang dumaan at nabet ng mga RDC, **[01:15:59.880] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001215) we acknowledge po yung naging observation po ng ating Good **[01:16:03.760] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001216) Congresswoman from Bataan at isa po ito sa nakikita sa emerging po naming findings din. **[01:16:09.140] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001217) Kasi hindi po natapos dun sa paglalagay. Nung form, **[01:16:12.540] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001218) yung aming pong pagsiguro na align po yung ating NEP sa **[01:16:15.980] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001219) pangangailangan po ng ating mga kababayan. Kaya po ngayon, ongoing po yung aming pakikipag-ugnayan sa Dep-Dev kung **[01:16:23.160] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001220) papaano pa po natin ma-link further, mas ma-improve yung linkage ng planning and budgeting. **[01:16:29.280] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001221) Kasama na po dyan, pati po yung pag-harmonize nung calendar, **[01:16:33.400] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001222) both ng investment programming at ng budgeting, at yung pag-harmonize po nung dalawa po naming submission portal **[01:16:41.980] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001223) ng sa gayon ay magkaroon **[01:16:43.880] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001224) po ng seamless o ma-harmonize po yung dalawa naming portal sa pag-investment programming and budget **[01:16:51.480] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001225) preparation. So, ilan lang po yan, Your Honor, sa mga ongoing measures that we hope that we can implement in the next budget cycle, Your Honor. **[01:17:01.020] Rep. Albert S. Garcia** (h2r5-turn-001226) Thank **[01:17:01.500] Rep. Albert S. Garcia** (h2r5-turn-001227) you, Sec. Kim. Cong. Gila, please, you may continue. **[01:17:04.960] Rep. Maria Angela S. Garcia** (h2r5-turn-001228) Follow-up question po, Sec. So, currently, **[01:17:07.700] Rep. Maria Angela S. Garcia** (h2r5-turn-001229) natutuwa po ako na narecognize din. Ito sa discussions nyo with the regional Dep-Devs and regional directors. Pero currently po, may we inquire, sino **[01:17:24.900] Rep. Maria Angela S. Garcia** (h2r5-turn-001230) po yung sa **[01:17:26.760] Rep. Maria Angela S. Garcia** (h2r5-turn-001231) ngayon nagsiset ng ceiling, sino po sa ngayon **[01:17:30.380] Rep. Maria Angela S. Garcia** (h2r5-turn-001232) yung **[01:17:31.320] Rep. Maria Angela S. Garcia** (h2r5-turn-001233) nag-a-approve nung **[01:17:34.280] Rep. Maria Angela S. Garcia** (h2r5-turn-001234) ano yung naipasa sa Regional Development Council? Because I believe, at least sa Central Luzon po, I know na on-time po yung submission sa kalendar, on-time po yung approval ng Regional Development Council for the budget call for the next year. So, parang yun nga pong gap na sino po yung nagde-determine ng ceiling, bawat ahensya, bawat region, bawat lalawigan, and ano yung mga proyekto na lalabas po sa NEP? **[01:18:09.270] Rep. Albert S. Garcia** (h2r5-turn-001235) Sec. **[01:18:09.520] Rep. Albert S. Garcia** (h2r5-turn-001236) Kim, please, you reply **[01:18:10.520] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001237) Mr. Chair, Your Honor, sa ngayon po, under the... budget call for this 2027 budget, ang ceiling po lamang ay per **[01:18:17.830] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001238) department or per agency. **[01:18:19.890] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001239) At gayon din po, ang nagde-determine po kung anong projects yung ultimately makakasama sa agency proposal papunt ng DBM ay **[01:18:27.550] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001240) yung agency central offices. Kaya po, isa po ito sa emerging na napag-uusapan po ng DBM at ng Dep-Dev, kung ma-harmonize po yung **[01:18:35.530] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001241) budget calendar at ma-move po yung pag-issue ng ceiling earlier, **[01:18:39.570] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001242) maaari pong magamit ng **[01:18:41.290] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001243) agency central offices, yung ceiling, para makapagbigay din po kahit papano ng indicative amount na **[01:18:47.650] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001244) maaaring ma-allocate po sa bawat isang Regional Development Council. So, isa po yan, **[01:18:51.970] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001245) Mr. Chair, Your Honor, sa kinukonsider po natin ngayon na improvement between investment programming and budgeting. **[01:19:01.750] Rep. Maria Angela S. Garcia** (h2r5-turn-001246) Mr. Chair, just a manifestation bago po yung susunod ko pong katanungan. So, isa lang po siguro na pagpuna dito **[01:19:11.310] Rep. Maria Angela S. Garcia** (h2r5-turn-001247) sa... **[01:19:13.450] Rep. Maria Angela S. Garcia** (h2r5-turn-001248) gap na ito na **[01:19:15.570] Rep. Maria Angela S. Garcia** (h2r5-turn-001249) matagal **[01:19:18.090] Rep. Maria Angela S. Garcia** (h2r5-turn-001250) na naman po natin ginagawa yung ating budget call, yung process and timelines po ay nakakalendaryo **[01:19:24.830] Rep. Maria Angela S. Garcia** (h2r5-turn-001251) at nakakapanghinayang lang po na kung sakali masyadong centralized po yung pag-tugon sa pangangailangan na nanggaling po sa mga **[01:19:37.570] Rep. Maria Angela S. Garcia** (h2r5-turn-001252) barangay, sa mga munisipyo, sa mga probinsya. **[01:19:40.630] Rep. Maria Angela S. Garcia** (h2r5-turn-001253) At **[01:19:41.310] Rep. Maria Angela S. Garcia** (h2r5-turn-001254) sana po ay... Hindi ko po alam ngayon, 2027 or sa 2028 po, sana po ay **[01:19:47.490] Rep. Maria Angela S. Garcia** (h2r5-turn-001255) maganap po natin at matugunan na itong malaking **[01:19:50.890] Rep. Maria Angela S. Garcia** (h2r5-turn-001256) discrepancy na ito. **[01:19:54.850] Rep. Maria Angela S. Garcia** (h2r5-turn-001257) Mr. Chair, last question lang, kung pwede. **[01:19:59.450] Rep. Albert S. Garcia** (h2r5-turn-001258) Your time is up, Cong. **[01:20:01.990] Rep. Albert S. Garcia** (h2r5-turn-001259) Gila. **[01:20:03.050] Rep. Albert S. Garcia** (h2r5-turn-001260) Pwede pang next round. **[01:20:04.630] Rep. Maria Angela S. Garcia** (h2r5-turn-001261) Sige po, may I request for a second round. **[01:20:07.250] Rep. Albert S. Garcia** (h2r5-turn-001262) Thank you, thank you, Cong. Gila. **[01:20:09.430] Rep. Albert S. Garcia** (h2r5-turn-001263) So, may... will Sec. Kim reply to the last comment to Cong. Gila. **[01:20:16.030] Rep. Albert S. Garcia** (h2r5-turn-001264) So, wala nang comment. **[01:20:17.670] Rep. Albert S. Garcia** (h2r5-turn-001265) Okay, thank you. So, **[01:20:19.130] Rep. Albert S. Garcia** (h2r5-turn-001266) let's move to the next... **[01:20:22.250] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001267) Mr. Chair? **[01:20:23.200] Rep. Albert S. Garcia** (h2r5-turn-001267-split-2) Ah yes Sec. Arsi **[01:20:24.230] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001268) May I add just on my colleague's **[01:20:29.010] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001269) response? And I think it is a very good question. **[01:20:34.110] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001270) Indeed, just to put **[01:20:35.490] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001271) context, **[01:20:38.510] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001272) of the RDC priorities identified at the... **[01:20:44.890] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001273) various regional levels, **[01:20:47.530] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001274) of those priorities, about **[01:20:51.430] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001275) 30 to 35 percent are **[01:20:54.850] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001276) reflected in the GAA when **[01:20:58.570] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001277) the GAA comes. So, it's a bit low. And **[01:21:02.030] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001278) hence, what my colleague mentioned, that **[01:21:05.990] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001279) we **[01:21:07.410] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001280) are strengthening the harmonization of the **[01:21:11.710] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001281) RDC investment programming and **[01:21:14.510] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001282) the... **[01:21:15.830] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001283) budgeting at the Central and DBM offices so that we can **[01:21:20.950] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001284) improve that **[01:21:22.490] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001285) proportion. **[01:21:26.070] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001286) I **[01:21:26.710] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001287) think that if we can hit 66 percent man lang, **[01:21:31.030] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001288) I think that will be a major improvement. **[01:21:35.460] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001289) Thank you very much, **[01:21:37.220] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001290) Tech RC, for that. And if I may add, **[01:21:40.420] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001291) kasama po ito dun sa bill ngayon, yung budget code, **[01:21:44.040] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001292) to codify everything and to... like what Sec. Kim said, **[01:21:47.740] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001293) really organize the calendar para talaga ma-harmonize yun lahat. **[01:21:52.240] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001294) So, thank you. **[01:21:55.160] Rep. Albert S. Garcia** (h2r5-turn-001295) Next, on our list, we go back to our colleagues in the minority. **[01:22:01.820] Rep. Albert S. Garcia** (h2r5-turn-001296) May I call on Congresswoman Iris Montes. **[01:22:06.040] Rep. Iris Marie Demesa Montes** (h2r5-turn-001297) Thank you, Mr. Chair. **[01:22:08.220] Rep. Iris Marie Demesa Montes** (h2r5-turn-001298) Ilang katanungan lamang mula sa kababaihan, kabaligatan para sa kapakanan at kaunlaran ng bayan, particularly po sa DBM. **[01:22:17.240] Rep. Iris Marie Demesa Montes** (h2r5-turn-001299) The government has repeatedly committed to strengthening the universal health care. **[01:22:24.060] Rep. Iris Marie Demesa Montes** (h2r5-turn-001300) How much of the 2027 budget is actually directed towards expanding health financing and health service capacity rather than maintaining existing programs? **[01:22:42.780] Rep. Albert S. Garcia** (h2r5-turn-001301) Sec. Kim? **[01:22:44.320] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001302) Mr. Chair, your honor, for the 2027 National Expenditure Program, **[01:22:48.820] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001303) a total of P362.73 billion, is provided to the health sector to **[01:22:54.880] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001304) support the implementation of the UHC Act. Ito po ay nahahati sa allocation of the Department **[01:23:01.060] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001305) of Health na 270.98, **[01:23:03.880] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001306) gayon din po sa 74.45 billion na ating subsidy sa **[01:23:08.120] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001307) Philippine Health Insurance Corporation. **[01:23:12.540] Rep. Iris Marie Demesa Montes** (h2r5-turn-001308) Maraming salamat. **[01:23:16.310] Rep. Iris Marie Demesa Montes** (h2r5-turn-001309) So, ibig sabihin po, given your answer, I would like to assume that the government will still again rely on the members' contribution of PhilHealth **[01:23:25.830] Rep. Iris Marie Demesa Montes** (h2r5-turn-001310) and... and the **[01:23:28.550] Rep. Iris Marie Demesa Montes** (h2r5-turn-001311) share from sin taxes. Ito po yata yung 74.5 na sinasabi ninyo. Ang sunod ko pong tanong, will there be no other additional allocations through the national budget that will be given to PhilHealth? **[01:23:47.380] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001312) Madam Chair, your honor, actually, for PhilHealth po, sa PhilHealth na po natin ibinigay yung karagdagang allocation for the expansion of the **[01:23:55.320] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001313) Zero Balance Billing Program to cover not only national hospitals but also amongst local hospitals, local government units. But ito pong figure, ma'am, **[01:24:05.160] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001314) Mr. Chair, your honor, is on the GAA levels **[01:24:09.180] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001315) alone. Hindi pa po kasama dito yung Corporate Operating Budget ng PhilHealth for 2027. **[01:24:15.520] Rep. Iris Marie Demesa Montes** (h2r5-turn-001316) That's included in the 74.45 billion. Is that correct? **[01:24:20.680] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001317) Yes, your honor. That's only the GAA subsidy to PhilHealth. **[01:24:24.740] Rep. Iris Marie Demesa Montes** (h2r5-turn-001318) But the GAA subsidy, the 74.4 is coming from the sin tax collection. Is that correct also? **[01:24:33.520] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001319) Yes, your honor. **[01:24:34.720] Rep. Iris Marie Demesa Montes** (h2r5-turn-001320) So in other words, aside from the sin tax collection, wala pong additional from the national government. Kasi mandated naman po ito ng batas eh. Ano po, tama. For the information of the Secretary, last budget hearing, **[01:24:49.220] Rep. Iris Marie Demesa Montes** (h2r5-turn-001321) nagkwentahan po kami on the floor exactly magkano ang kakulangan ng national government sa PhilHealth, sa share ng sin taxes. In the proper time, Mr. Chair, sa proper time, magkikwentahan po ulit tayo, Secretary. Thank you. Moving **[01:25:07.360] Rep. Iris Marie Demesa Montes** (h2r5-turn-001322) on to the next question. Para naman po ulit ito sa... **[01:25:16.140] Rep. Iris Marie Demesa Montes** (h2r5-turn-001323) Sorry ha, nawala. **[01:25:21.380] Rep. Iris Marie Demesa Montes** (h2r5-turn-001324) My next question would be for the DBM na lang ulit. **[01:25:28.500] Rep. Iris Marie Demesa Montes** (h2r5-turn-001325) The DBCC itself admitted that corruption heavily impacted on our economic growth. So, aside from nabanggit niyo po earlier on **[01:25:39.020] Rep. Iris Marie Demesa Montes** (h2r5-turn-001326) infrastructure projects na gaginawanin niyong bago katulad ng **[01:25:43.080] Rep. Iris Marie Demesa Montes** (h2r5-turn-001327) pagsisiguro na complete, may readiness yung project, complete yung documents, what other reforms have the DBM instituted para hindi po maulit ang mga korupsyon at mga wastage ng public funds na nangyari in the past several years? **[01:26:02.760] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001328) Mr. Chair, your honor, bukod po doon sa mas masusing pagsusuri po na ginawa natin sa mga proposal which is primary reform po na masasabi natin. Dahil doon pa lang po **[01:26:15.000] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001329) masisiguro natin na hindi, **[01:26:17.620] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001330) maiiwasan na maging ghost projects po. **[01:26:20.160] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001331) Marami pa pong mga nakaabang na reform kapagka nagsimula na po tayong mag **[01:26:24.560] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001332) -implement. So, kasama na po dyan yung early procurement. Dahil isa po sa naging **[01:26:29.680] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001333) suliranin natin ngayon ay dahil late po na-implement yung mga infrastructure projects, naka-apekto po ito. Sa ating economic activities during the first half. **[01:26:39.180] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001334) During the procurement po, hindi lang po early procurement, **[01:26:43.020] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001335) sa ilalim po ng new government procurement act, mas bukas po yung ating mga **[01:26:47.540] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001336) procurement activities. Kasama po dyan yung pag-livestream ng ating mga **[01:26:52.480] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001337) procurement activities, pagpo-post po ng lahat ng detalye ng ating mga procurement upang mas masubaybayan po ng ating mga kababayan at ng ating mga kasama, even sa civil society. Lahat **[01:27:06.100] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001338) po ng ating mga procurement activities. In terms of transparency, Your Honor, **[01:27:10.580] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001339) tayo po sa DBM ay **[01:27:12.820] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001340) patuloy po natin ginagawa yung agency performance review. **[01:27:16.880] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001341) Inulunsa din po natin yung DBM Compass, which you can access po at compass.dbm.gov.ph kung saan masusubaybayan po natin ang **[01:27:26.540] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001342) bawat isang release ng allotment. **[01:27:28.780] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001343) Ito po ay **[01:27:29.720] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001344) isusupplement naman ng tinatawag naming project dime, kung **[01:27:34.080] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001345) saan hindi lamang po kami magre-rely on documentary submission na accomplishment report, **[01:27:39.400] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001346) lalo na po sa ating mga infrastructure projects. Gagamit po tayo ng teknolohiya, **[01:27:44.240] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001347) satellite imagery, upang ma-validate kung yung talaga pong na-report ay accomplished, ay talaga pong nagawa at nakikita sa ating mga satellite images, Your Honor. **[01:27:54.440] Rep. Iris Marie Demesa Montes** (h2r5-turn-001348) Maraming salamat po. That leads me to my next question. **[01:27:59.020] Rep. Iris Marie Demesa Montes** (h2r5-turn-001349) Para sa DepDev dito, because in your handouts, sa handout po ng DepDev you **[01:28:04.960] Rep. Iris Marie Demesa Montes** (h2r5-turn-001350) made the listing of the priority bills that you want Congress to support or pass with regard to corruption and transparency and governance. **[01:28:20.240] Rep. Iris Marie Demesa Montes** (h2r5-turn-001351) Curiously po, hindi po nakapaloob doon, wala po doon yung Cadena Act. Hindi po ba supportive ang DepDev sa Cadena Act? **[01:28:30.520] Rep. Iris Marie Demesa Montes** (h2r5-turn-001352) Also, I would also want to direct that question to the DBM because to my mind, yung if we are to talk about transparency, more than that, yung Cadena pa, it will ensure citizen participation. So, hindi po ba ninyo nire-recommend ang **[01:28:48.880] Rep. Iris Marie Demesa Montes** (h2r5-turn-001353) Cadena Act as one of your reforms na gustong isunong? **[01:28:57.330] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001354) Mr. Chair, the list of measures that I flashed this morning, is **[01:29:04.120] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001355) a partial list. **[01:29:05.600] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001356) From the **[01:29:07.260] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001357) point of view of **[01:29:08.200] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001358) economic development, those are the ones that we believe will **[01:29:14.340] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001359) help **[01:29:15.450] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001360) us recover quickly. **[01:29:16.690] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001361) But the LEDAC has a longer list of **[01:29:21.270] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001362) over **[01:29:22.100] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001363) 50 measures, **[01:29:24.000] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001364) and and **[01:29:25.070] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001365) Cadena is one of those. So, I think that we **[01:29:28.880] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001366) continue to push for that, Mr. **[01:29:31.940] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001367) Chair, And I think that's an important **[01:29:35.050] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001368) measure. **[01:29:37.170] Rep. Iris Marie Demesa Montes** (h2r5-turn-001369) Thank you, Secretary. May I now ask the Secretary of DBM? Kasi may mga nabanggit po siya kanina. I asked earlier, what reforms have have you made in the budget process this time? So, what is your take on the Cadena Act? **[01:29:54.940] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001370) Mr. Chair, your honor, while we echo the statement of the Secretary of DepDev that it's still indeed in the list, **[01:30:02.350] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001371) tayo po naman, whatever modality na **[01:30:05.920] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001372) available or technology, ay atin pong lahat pinukonsidera para lalo pong mapalakas yung transparency ng ating budget. Isa lamang din po dun sa ating consideration would be the **[01:30:17.490] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001373) applicability of technology and access of all the government agencies. Dahil alam naman po natin, **[01:30:22.860] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001374) as an archipelagic nation, minsan lalo po kapag ka ganitong umuulan, naaapektuhan naapektuhan po yung ating signal, etc., et cetera, and internet access. **[01:30:32.170] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001375) So, we have to consider all of this, **[01:30:34.490] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001376) para po masiguro na yung mapipili po natin na final na platform would be usable, reliable, at accessible po para sa lahat. **[01:30:45.140] Rep. Iris Marie Demesa Montes** (h2r5-turn-001377) Thank you, Secretary De Leon. **[01:30:47.400] Rep. Iris Marie Demesa Montes** (h2r5-turn-001378) My next question, madami po pa sana, Mr. Chair, pero last ko na lang po ito. For the DOF, **[01:30:54.730] Rep. Iris Marie Demesa Montes** (h2r5-turn-001379) in your handout also, na it ano lang po ako, it says there, yung last page **[01:31:01.080] Rep. Iris Marie Demesa Montes** (h2r5-turn-001380) ng inyong handout, our national budget can work **[01:31:04.220] Rep. Iris Marie Demesa Montes** (h2r5-turn-001381) harder when we invest in high multiplier programs and projects that create lasting economic value. **[01:31:12.780] Rep. Iris Marie Demesa Montes** (h2r5-turn-001382) Can you please be specific what example or two perhaps of your proposed, in the proposed 2027 budget? Can, will really create lasting economic value? **[01:31:29.140] DOF Secretary Frederick D. Go** (h2r5-turn-001383) Mr. Chair, Your Honor, I **[01:31:31.440] DOF Secretary Frederick D. Go** (h2r5-turn-001384) think the specific example to your question would have to be infrastructure. **[01:31:36.300] DOF Secretary Frederick D. Go** (h2r5-turn-001385) For several reasons, infrastructure projects **[01:31:40.520] DOF Secretary Frederick D. Go** (h2r5-turn-001386) have the highest multiplier effect, **[01:31:42.780] DOF Secretary Frederick D. Go** (h2r5-turn-001387) meaning for every peso we spend on **[01:31:45.440] DOF Secretary Frederick D. Go** (h2r5-turn-001388) infrastructure, there's a **[01:31:47.340] DOF Secretary Frederick D. Go** (h2r5-turn-001389) multiplier effect of probably three to six times. **[01:31:53.360] DOF Secretary Frederick D. Go** (h2r5-turn-001390) And also, infrastructure leaves **[01:31:56.520] DOF Secretary Frederick D. Go** (h2r5-turn-001391) a lasting **[01:31:57.200] DOF Secretary Frederick D. Go** (h2r5-turn-001392) legacy, if you will, that can be used by future generations for a long period **[01:32:04.720] DOF Secretary Frederick D. Go** (h2r5-turn-001393) of time. **[01:32:06.540] Rep. Iris Marie Demesa Montes** (h2r5-turn-001394) Last na po, Mr. Chair. Halimbawa po, ano pong mga specific infrastructure projects that we have for the 2027 budget? **[01:32:16.400] DOF Secretary Frederick D. Go** (h2r5-turn-001395) The rails, for example. **[01:32:19.820] DOF Secretary Frederick D. Go** (h2r5-turn-001396) The Metro Manila... **[01:32:23.060] DOF Secretary Frederick D. Go** (h2r5-turn-001397) Line, **[01:32:23.540] DOF Secretary Frederick D. Go** (h2r5-turn-001398) the north-south commuter line, and of course, numerous DPWH projects, **[01:32:31.180] DOF Secretary Frederick D. Go** (h2r5-turn-001399) but I'm not, I wouldn't know the specifics. **[01:32:35.080] Rep. Iris Marie Demesa Montes** (h2r5-turn-001400) That would be all for now, Mr. Chair. Thank you. **[01:32:37.820] DOF Secretary Frederick D. Go** (h2r5-turn-001401) Thank you. **[01:32:38.840] Rep. Mikaela Angela B. Suansing** (h2r5-turn-001402) Next to interpolate, Representative Albert Garcia. **[01:32:43.940] Rep. Albert S. Garcia** (h2r5-turn-001403) Thank you very much, Madam Chair, and good afternoon once again to our DBCC family. **[01:32:49.500] Rep. Albert S. Garcia** (h2r5-turn-001404) Just a few questions, Madam Chair, na gusto ko lang ng konting kalinawan **[01:32:54.560] Rep. Albert S. Garcia** (h2r5-turn-001405) So, as we all know, and based on the JICA study, we are losing 3.5 billion pesos a day. **[01:33:03.040] Rep. Albert S. Garcia** (h2r5-turn-001406) So, ngayon po, maghahapon na, just **[01:33:06.380] Rep. Albert S. Garcia** (h2r5-turn-001407) like that, we lost 3.5 **[01:33:08.220] Rep. Albert S. Garcia** (h2r5-turn-001408) billion pesos based **[01:33:10.140] Rep. Albert S. Garcia** (h2r5-turn-001409) on the study. **[01:33:11.540] Rep. Albert S. Garcia** (h2r5-turn-001410) Because of traffic, congestion, time wasted, work-life balance compromised, pollution, and so on and so forth. So, na-measure po ito ng JICA to the tune of 3.5 billion. 3.5 billion pesos a day. **[01:33:23.920] Rep. Albert S. Garcia** (h2r5-turn-001411) And if it's not solved or addressed by 2030, it **[01:33:29.760] Rep. Albert S. Garcia** (h2r5-turn-001412) will rise up to 5.4 billion pesos a day. **[01:33:34.280] Rep. Albert S. Garcia** (h2r5-turn-001413) So, ganun po, kagrabe po ito. **[01:33:36.560] Rep. Albert S. Garcia** (h2r5-turn-001414) And ang total po niyan sa isang taon is around 1.2 trillion. **[01:33:42.880] Rep. Albert S. Garcia** (h2r5-turn-001415) So, I guess, Madam Chair, yun na po yung pinag-uusapan nating capital outlay. **[01:33:48.540] Rep. Albert S. Garcia** (h2r5-turn-001416) Kasi yung PS, hindi na naman natin pwedeng galawin. **[01:33:53.180] Rep. Albert S. Garcia** (h2r5-turn-001417) So, with MOE. **[01:33:55.450] Rep. Albert S. Garcia** (h2r5-turn-001418) So, ito na po lahat na negate lang nitong losses per day. **[01:34:00.350] Rep. Albert S. Garcia** (h2r5-turn-001419) And to date, just to give you a context, **[01:34:06.210] Rep. Albert S. Garcia** (h2r5-turn-001420) in-add po natin to date, ang nawala na po sa ating ekonomiya is 13.7 trillion pesos. **[01:34:15.320] Rep. Albert S. Garcia** (h2r5-turn-001421) Double our existing national **[01:34:19.460] Rep. Albert S. Garcia** (h2r5-turn-001422) budget. Ganun po, kagrabe. **[01:34:21.670] Rep. Albert S. Garcia** (h2r5-turn-001423) And since kayo... Kayo po yung economic managers, I want to ask, what are we doing to address this? Nang sa ganun, ay hindi na umabot ng 5.4 billion pesos a day. **[01:34:33.180] Rep. Albert S. Garcia** (h2r5-turn-001424) Thank you, Madam Chair. **[01:34:36.600] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001425) Madam Chair, Your Honor, parahin malaking bahagi po nung loss na yun ay productivity loss due to, of course, as we know, traffic in **[01:34:46.060] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001426) rapidly urbanizing areas. Kaya naman po, kung papansin po natin sa ating National Expenditure Program, talagang priority po yung investment natin for **[01:34:55.120] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001427) more available transportation options para sa ating mga kababayan, **[01:35:00.140] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001428) mass transportation options para sa mga urbanizing area, **[01:35:03.860] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001429) urban and urbanizing area, hindi lamang po sa NCR, kundi maging po sa mga karatig region, gayon din po may investment din tayo for mass transportation sa Visayas and Mindanao. So, ito rin naman po ang direktiba ng Presidente na masiguro na matapos, **[01:35:22.740] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001430) na **[01:35:23.000] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001431) practical yung mga **[01:35:24.720] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001432) proyektong ito upang agad pong mapakinabangan ng mga kababayan natin at makabawas po doon sa nabanggit po ng kagalang-galang na kinatawa ng mga productivity loss due to traffic, among many others, Madam Chair. **[01:35:40.400] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001433) Thank you, Madam Chair. **[01:35:43.520] Rep. Albert S. Garcia** (h2r5-turn-001434) Pero ang strategy po natin to build more in the urban area and the more we build, the more we create traffic. We build on top. We build under. **[01:35:55.000] Rep. Albert S. Garcia** (h2r5-turn-001435) Dapat tinitignan din po natin yung periphery. **[01:35:58.440] Rep. Albert S. Garcia** (h2r5-turn-001436) So, how we can manage the traffic or the congestion even **[01:36:03.420] Rep. Albert S. Garcia** (h2r5-turn-001437) better? Kasi puro linear. **[01:36:06.220] Rep. Albert S. Garcia** (h2r5-turn-001438) So, **[01:36:06.860] Rep. Albert S. Garcia** (h2r5-turn-001439) may I ask for a reply, Madam Chair? **[01:36:11.480] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001440) May I, Mr. **[01:36:13.980] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001441) Chair? **[01:36:15.800] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001442) The overall plan is to improve the connectivity. So, the **[01:36:23.600] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001443) country, both physical and digital. Connectivity meaning connecting our rapidly **[01:36:30.780] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001444) urbanizing or highly urbanized areas to other **[01:36:35.400] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001445) areas, particularly lagging areas of the country. And **[01:36:39.100] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001446) that may involve mass transit as a focus, for example. **[01:36:44.770] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001447) And **[01:36:45.160] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001448) that will allow mobility **[01:36:49.160] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001449) at lesser cost for both. For **[01:36:52.980] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001450) people and the movement of goods and services. **[01:36:57.420] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001451) So, the **[01:36:58.540] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001452) law **[01:37:00.580] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001453) that you just passed, which created the **[01:37:02.960] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001454) DEPDEM, and we **[01:37:07.000] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001455) are that agency, Mr. Chair, **[01:37:10.300] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001456) entrusted us to coordinate the development of a long-term master plan for infrastructure, especially transport infrastructure. So, we are working closely with... our **[01:37:23.400] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001457) transport agencies, our infrastructure agencies, like DOTR and DPWH, for **[01:37:29.240] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001458) the development of that long-term master plan for **[01:37:32.760] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001459) infrastructure. **[01:37:35.820] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001460) Thank you, Madam Chair. **[01:37:37.740] Rep. Albert S. Garcia** (h2r5-turn-001461) Just for a suggestion, aside from building **[01:37:42.860] Rep. Albert S. Garcia** (h2r5-turn-001462) linear north-south, let's also consider east-west para off the overly beaten path, so to speak, at **[01:37:52.520] Rep. Albert S. Garcia** (h2r5-turn-001463) mas ma **[01:37:53.220] Rep. Albert S. Garcia** (h2r5-turn-001464) -divert **[01:37:55.440] Rep. Albert S. Garcia** (h2r5-turn-001465) natin yung traffic from the overly congested **[01:37:59.420] Rep. Albert S. Garcia** (h2r5-turn-001466) north and south, especially in Metro Manila. **[01:38:03.000] Rep. Albert S. Garcia** (h2r5-turn-001467) And, Madam Chair, very quickly, **[01:38:05.620] Rep. Albert S. Garcia** (h2r5-turn-001468) in the spirit of first principles thinking in solving a problem, **[01:38:11.980] Rep. Albert S. Garcia** (h2r5-turn-001469) alam po ba natin kung ano talaga ang root cause nitong problema na itong 3.5 billion pesos a day of losses? **[01:38:24.970] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001470) Yeah, Mr. Chair. As I said, I think the **[01:38:29.290] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001471) underdevelopment of our connectivity infrastructure is key. **[01:38:37.990] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001472) It's so well known that we have **[01:38:40.010] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001473) severely underinvested in infrastructure, **[01:38:45.830] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001474) particularly mass transit. **[01:38:49.330] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001475) So, we should have developed mass transit long ago, but we **[01:38:55.350] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001476) preferred instead to develop... **[01:38:58.230] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001477) highways and more roads. So, **[01:39:02.890] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001478) I think that allowed the rapid growth of regions like NCR and prevented the **[01:39:13.770] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001479) concentration of growth, as well as **[01:39:18.670] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001480) hindering the development of other growth areas. **[01:39:25.130] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001481) There is no... **[01:39:28.910] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001482) reason why other **[01:39:31.970] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001483) regions, other areas of the country should not grow as fast as Metro Manila if we build a proper ecosystem for these areas. So, the rapid migration to Metro Manila contributed part **[01:39:46.930] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001484) of that problem, and then we failed to develop the mass transit that compounded the problem. **[01:39:53.570] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001485) So, the **[01:39:54.150] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001486) trust of our development plan, our long-term vision, as well as the PDP, is to **[01:40:01.310] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001487) build that connectivity so that **[01:40:04.910] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001488) growing areas, rapidly growing areas, are connected with lagging areas so that there will be more inclusive development across the country. **[01:40:15.910] Rep. Albert S. Garcia** (h2r5-turn-001489) Thank you, Madam Chair. Thank you, Sec. Arsi. I think, in my humble opinion, you hit the nail right on the head. **[01:40:23.590] Rep. Albert S. Garcia** (h2r5-turn-001490) It is the in-country migration that is unmanaged. So, **[01:40:28.650] Rep. Albert S. Garcia** (h2r5-turn-001491) do **[01:40:29.150] Rep. Albert S. Garcia** (h2r5-turn-001492) we have any plan to **[01:40:31.050] Rep. Albert S. Garcia** (h2r5-turn-001493) manage the in-country migration, aside from growing the regions? **[01:40:34.910] Rep. Albert S. Garcia** (h2r5-turn-001494) Because it **[01:40:36.170] Rep. Albert S. Garcia** (h2r5-turn-001495) will take time to grow the regions. In the meantime, people are looking for jobs, so they go to the center, aside from growing abroad. **[01:40:44.530] Rep. Albert S. Garcia** (h2r5-turn-001496) So, **[01:40:45.090] Rep. Albert S. Garcia** (h2r5-turn-001497) in the meantime that we're developing the infra, which will take a **[01:40:48.950] Rep. Albert S. Garcia** (h2r5-turn-001498) lot of time, mayroon ba tayong **[01:40:50.850] Rep. Albert S. Garcia** (h2r5-turn-001499) plan to manage the in-country migration that really contributed? To the 3.5 billion pesos a day? **[01:41:00.210] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001500) I think we can start with a few areas that have so much potential for rapid **[01:41:07.730] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001501) economic growth so that people **[01:41:11.210] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001502) don't have to come to Metro Manila as a final **[01:41:15.470] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001503) destination for **[01:41:16.410] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001504) jobs. For **[01:41:18.210] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001505) example, I **[01:41:19.650] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001506) look at Iloilo, I look at Cebu, I look at **[01:41:22.650] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001507) Bohol, **[01:41:25.350] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001508) Pangasinan. There are many of those. Bataan, of course, is a high potential, especially once **[01:41:30.790] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001509) you complete that Cavite-Bataan bridge. I **[01:41:33.950] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001510) think Bataan will be a magnet for investment. **[01:41:38.910] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001511) So, I think the good news, Mr. Chair, is that **[01:41:44.070] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001512) population growth has actually come down substantially and fertility is now just 1 **[01:41:50.650] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001513) .7, I think, or **[01:41:52.810] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001514) 1.9? **[01:41:53.630] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001515) 1.7. 1 And.7. so, there **[01:41:56.470] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001516) is now much less... There is less pressure for **[01:41:59.672] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001517) migration than, say, 10 years ago because of that rapid **[01:42:05.030] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001518) decline or population growth. **[01:42:09.930] Rep. Albert S. Garcia** (h2r5-turn-001519) Thank you, Madam **[01:42:11.270] Rep. Albert S. Garcia** (h2r5-turn-001520) Chair. Thank you, Sec. Arsi. I'm looking forward to **[01:42:13.950] Rep. Albert S. Garcia** (h2r5-turn-001521) those **[01:42:16.830] Rep. Albert S. Garcia** (h2r5-turn-001522) plans to really control or manage the in-country migration while we're **[01:42:22.350] Rep. Albert S. Garcia** (h2r5-turn-001523) growing the regions so that they don't have to go to OFW or **[01:42:26.910] Rep. Albert S. Garcia** (h2r5-turn-001524) migrate to Metro. **[01:42:29.730] Rep. Albert S. Garcia** (h2r5-turn-001525) Next question, po, is regarding our foreign assisted, **[01:42:35.250] Rep. Albert S. Garcia** (h2r5-turn-001526) yung mga ODAs. Aside from the commitment fees, ang dami pong na-delay. **[01:42:43.810] Rep. Albert S. Garcia** (h2r5-turn-001527) And **[01:42:44.530] Rep. Albert S. Garcia** (h2r5-turn-001528) may penalties po ba tayo doon? Kanina sinabi ni Sec. Dec na **[01:42:49.630] Rep. Albert S. Garcia** (h2r5-turn-001529) it's lodged to those agencies, the OTR, the BWH. So, they pay or we pay penalties because of the long delays of our ODAs or foreign assisted projects? **[01:43:03.970] DOF Secretary Frederick D. Go** (h2r5-turn-001530) Mr. Chair, **[01:43:05.190] DOF Secretary Frederick D. Go** (h2r5-turn-001531) yeah, I did mention earlier that I believe it would be in the implementing agencies' **[01:43:11.650] DOF Secretary Frederick D. Go** (h2r5-turn-001532) contracts with their service providers or their contractors that might include a penalty clause if projects are delayed. **[01:43:20.650] DOF Secretary Frederick D. Go** (h2r5-turn-001533) But the more... **[01:43:23.930] DOF Secretary Frederick D. Go** (h2r5-turn-001534) What's **[01:43:24.610] DOF Secretary Frederick D. Go** (h2r5-turn-001535) more obvious that always happens when a project is delayed is **[01:43:28.490] DOF Secretary Frederick D. Go** (h2r5-turn-001536) that because of the the... time element, **[01:43:30.710] DOF Secretary Frederick D. Go** (h2r5-turn-001537) the project cost will actually go up. **[01:43:33.590] DOF Secretary Frederick D. Go** (h2r5-turn-001538) Rather than... So, in a way, you can call it a penalty, but it's really in **[01:43:37.390] DOF Secretary Frederick D. Go** (h2r5-turn-001539) another form. It's in the form of a cost overrun or additional **[01:43:43.030] DOF Secretary Frederick D. Go** (h2r5-turn-001540) project cost. **[01:43:44.550] DOF Secretary Frederick D. Go** (h2r5-turn-001541) So, we have witnessed that in several **[01:43:47.150] DOF Secretary Frederick D. Go** (h2r5-turn-001542) flagship transportation **[01:43:50.170] DOF Secretary Frederick D. Go** (h2r5-turn-001543) and DPWH projects that when the project is delayed for years, the **[01:43:55.750] DOF Secretary Frederick D. Go** (h2r5-turn-001544) project would actually double **[01:43:57.650] DOF Secretary Frederick D. Go** (h2r5-turn-001545) in cost. **[01:43:59.090] DOF Secretary Frederick D. Go** (h2r5-turn-001546) But **[01:43:59.910] DOF Secretary Frederick D. Go** (h2r5-turn-001547) I believe the penalties might **[01:44:01.850] DOF Secretary Frederick D. Go** (h2r5-turn-001548) be embedded in their contracts. **[01:44:06.250] Rep. Albert S. Garcia** (h2r5-turn-001549) Thank you, SecDec. And it would be good to know whether from DBCC or sa mga respective agencies to know the total of **[01:44:17.330] Rep. Albert S. Garcia** (h2r5-turn-001550) penalties or yung mga project cost so that we can really study them. Kasi karamihan po ng delays are the right-of-way issues. **[01:44:29.710] Rep. Albert S. Garcia** (h2r5-turn-001551) So, maybe we can re-strategize na katulad sa bottom-up budgeting which was asked by our colleagues na we **[01:44:41.270] Rep. Albert S. Garcia** (h2r5-turn-001552) propose projects that are demand-driven from the local level that are shovel-ready. **[01:44:48.570] Rep. Albert S. Garcia** (h2r5-turn-001553) So, baka pwede rin gawin yun somehow with our foreign-assisted projects para hindi magkaroon ng mahabang delay. **[01:44:57.080] Rep. Albert S. Garcia** (h2r5-turn-001554) Na umabot ng 10 years, 15 years, and even more. **[01:45:00.190] Rep. Albert S. Garcia** (h2r5-turn-001555) So, I **[01:45:01.270] Rep. Albert S. Garcia** (h2r5-turn-001556) think my time is up. **[01:45:02.790] Rep. Albert S. Garcia** (h2r5-turn-001557) Madam Chair, maraming salamat po. Thank you, Sec. Dec. **[01:45:05.270] DOF Secretary Frederick D. Go** (h2r5-turn-001557-split-2) May I just? **[01:45:07.870] Rep. Albert S. Garcia** (h2r5-turn-001558) Yes, please. **[01:45:08.490] DOF Secretary Frederick D. Go** (h2r5-turn-001559) Just very quickly. Mr. Chair, ever **[01:45:11.330] DOF Secretary Frederick D. Go** (h2r5-turn-001560) since I moved to the Department of Finance, I chaired investment, the ICC. **[01:45:17.570] DOF Secretary Frederick D. Go** (h2r5-turn-001561) All the projects now that are coming up for approval, **[01:45:20.710] DOF Secretary Frederick D. Go** (h2r5-turn-001562) we actually now require that they secure the right-of-way first **[01:45:25.170] DOF Secretary Frederick D. Go** (h2r5-turn-001563) because this has become, as you correctly pointed out, **[01:45:29.090] DOF Secretary Frederick D. Go** (h2r5-turn-001564) this is the perennial problem of **[01:45:31.510] DOF Secretary Frederick D. Go** (h2r5-turn-001565) the infrastructure projects. They **[01:45:34.010] DOF Secretary Frederick D. Go** (h2r5-turn-001566) secure project approval first without **[01:45:36.650] DOF Secretary Frederick D. Go** (h2r5-turn-001567) securing the right-of-way. **[01:45:38.130] DOF Secretary Frederick D. Go** (h2r5-turn-001568) So, now we have corrected that sequence. So, we **[01:45:41.890] DOF Secretary Frederick D. Go** (h2r5-turn-001569) require the right-of-way first **[01:45:43.170] DOF Secretary Frederick D. Go** (h2r5-turn-001570) before the project approval. Thank you. **[01:45:46.570] Rep. Albert S. Garcia** (h2r5-turn-001571) Yeah. **[01:45:47.870] Rep. Albert S. Garcia** (h2r5-turn-001572) Well, I thank for that strategic decision done by the ICC, chaired by SecDec. Maraming salamat po. **[01:45:56.310] Rep. Albert S. Garcia** (h2r5-turn-001573) And siguro doon na lang, if kung meron man lang tayong mabigay na amounts, yung cumulative delays. **[01:46:04.390] Rep. Albert S. Garcia** (h2r5-turn-001574) Maybe the committee can receive that for the benefit **[01:46:09.230] Rep. Albert S. Garcia** (h2r5-turn-001575) of the members. **[01:46:10.490] Rep. Albert S. Garcia** (h2r5-turn-001576) Thank you, SecDec. **[01:46:13.760] Rep. Albert S. Garcia** (h2r5-turn-001577) Thank you, Madam Chair. **[01:46:16.500] Rep. Mikaela Angela B. Suansing** (h2r5-turn-001578) Next, to interpelate, Representative Percival Cendaña **[01:46:21.960] Rep. Percival "Perci" Cendaña** (h2r5-turn-001579) Thank you, Madam Chair. Good afternoon, everyone. **[01:46:24.780] Rep. Percival "Perci" Cendaña** (h2r5-turn-001580) Madam Chair, before we discuss the details of the budget, **[01:46:28.660] Rep. Percival "Perci" Cendaña** (h2r5-turn-001581) I think it is important for us in Congress to understand the fiscal story behind this 7.2 trillion proposal. **[01:46:37.260] Rep. Percival "Perci" Cendaña** (h2r5-turn-001582) The numbers before us today are materially different from **[01:46:41.060] Rep. Percival "Perci" Cendaña** (h2r5-turn-001583) what DBCC presented to Congress only a year ago. **[01:46:45.440] Rep. Percival "Perci" Cendaña** (h2r5-turn-001584) Growth expectations have been lowered. **[01:46:47.980] Rep. Percival "Perci" Cendaña** (h2r5-turn-001585) The projected deficit is higher. **[01:46:50.300] Rep. Percival "Perci" Cendaña** (h2r5-turn-001586) Revenue expectations have been reduced. Interest payments have crossed 1.1 trillion. And the composition of expenditure appears to be lower. **[01:47:01.960] Rep. Percival "Perci" Cendaña** (h2r5-turn-001587) So, **[01:47:02.700] Rep. Percival "Perci" Cendaña** (h2r5-turn-001588) our job is not merely to ask whether 7.2 trillion is enough. We **[01:47:07.880] Rep. Percival "Perci" Cendaña** (h2r5-turn-001589) need to ask whether the assumptions are credible, whether the priorities are correct, and whether taxpayers are receiving sufficient value for every additional peso government spends or borrows. The question Congress must answer is simple. **[01:47:24.360] Rep. Percival "Perci" Cendaña** (h2r5-turn-001590) Given our limited fiscal space, who gets the money? What **[01:47:29.440] Rep. Percival "Perci" Cendaña** (h2r5-turn-001591) are we sacrificing to finance it? And what evidence tells us that these are the right choices? **[01:47:36.280] Rep. Percival "Perci" Cendaña** (h2r5-turn-001592) To say that the fiscal space is narrow is an understatement. I'm sure our economic managers will share this sentiment. But that's for another set of questions. Let me begin with last **[01:47:50.080] Rep. Percival "Perci" Cendaña** (h2r5-turn-001593) year, DBCC told Congress that the economy could grow by 6 to 7 percent in **[01:47:56.600] Rep. Percival "Perci" Cendaña** (h2r5-turn-001594) 2027. You **[01:47:58.400] Rep. Percival "Perci" Cendaña** (h2r5-turn-001595) are now projecting only 5 to 6 **[01:48:01.279] Rep. Percival "Perci" Cendaña** (h2r5-turn-001596) percent. What specifically changed? And I'll also throw in my follow-up question because of the limited time. How much of the downgrade is attributable to external conditions and how much reflects domestic factors such as weak investment, agricultural performance, infrastructure implementation, consumption, or government underspending? **[01:48:22.200] Rep. Percival "Perci" Cendaña** (h2r5-turn-001597) If growth is only 4 percent in 2027, what happens to revenue, the deficit, and the debt-to-GDP ratio? **[01:49:02.090] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001598) Compared to last year, who **[01:49:04.570] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001599) would have expected that we'd have a **[01:49:06.490] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001600) Middle East conflict? **[01:49:08.550] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001601) Who would have expected that global trade **[01:49:12.130] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001602) uncertainty would **[01:49:13.390] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001603) suddenly skyrocket because of these **[01:49:18.550] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001604) changes **[01:49:20.130] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001605) in tariff by the **[01:49:23.750] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001606) U.S. government, for example? **[01:49:25.190] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001607) And **[01:49:25.890] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001608) all these geopolitical tensions that are happening. **[01:49:29.710] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001609) So we needed to **[01:49:33.010] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001610) make our growth targets realistic and our **[01:49:37.990] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001611) approach to addressing our problems more realistic. We believe that even **[01:49:45.330] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001612) though the growth is less next year compared to what we **[01:49:50.430] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001613) targeted earlier, **[01:49:53.070] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001614) this kind of growth is going to be one **[01:49:56.830] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001615) that is enduring, meaning that **[01:50:00.490] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001616) while **[01:50:01.310] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001617) it's lower, we are building a stronger foundation for a faster growth **[01:50:06.190] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001618) in the succeeding years. We can't be irresponsible by **[01:50:10.970] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001619) trying **[01:50:11.890] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001620) to drive high growth when the fundamentals will **[01:50:15.110] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001621) not support it. That can lead us to even worse problems like the **[01:50:21.050] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001622) deficit that you just mentioned, Mr. **[01:50:25.030] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001623) Chair. **[01:50:30.560] Rep. Percival "Perci" Cendaña** (h2r5-turn-001624) Is there a response to my last question about if the growth is only 4 percent in 2027, what **[01:50:37.200] Rep. Percival "Perci" Cendaña** (h2r5-turn-001625) happens to revenue, the deficit, **[01:50:39.140] Rep. Percival "Perci" Cendaña** (h2r5-turn-001626) and the debt-to-GDP ratio? **[01:50:42.060] Rep. Percival "Perci" Cendaña** (h2r5-turn-001627) The DOF, perhaps. **[01:50:45.790] DOF Secretary Frederick D. Go** (h2r5-turn-001628) Thank you, Mr. Chair, Your Honor. **[01:50:48.510] DOF Secretary Frederick D. Go** (h2r5-turn-001629) I think the answer to your question is **[01:50:52.510] DOF Secretary Frederick D. Go** (h2r5-turn-001630) if the GDP assumptions are reduced, **[01:50:56.450] DOF Secretary Frederick D. Go** (h2r5-turn-001631) the assumptions for tax revenues will also **[01:51:00.870] DOF Secretary Frederick D. Go** (h2r5-turn-001632) be reduced as well, **[01:51:02.190] DOF Secretary Frederick D. Go** (h2r5-turn-001633) proportionately to the reduction **[01:51:05.670] DOF Secretary Frederick D. Go** (h2r5-turn-001634) or changes in the macro-economic assumptions. So, Your Honor, if I may just point out there are several macroeconomic assumptions that we that **[01:51:15.890] DOF Secretary Frederick D. Go** (h2r5-turn-001635) we take from to come up with our revenue projections. Among **[01:51:21.250] DOF Secretary Frederick D. Go** (h2r5-turn-001636) them are inflation rate, **[01:51:24.570] DOF Secretary Frederick D. Go** (h2r5-turn-001637) real GDP growth rate, **[01:51:27.950] DOF Secretary Frederick D. Go** (h2r5-turn-001638) borrowing rate, foreign exchange rate. I think you correctly noticed that if the GDP growth assumptions, **[01:51:38.650] DOF Secretary Frederick D. Go** (h2r5-turn-001639) are lowered, **[01:51:39.430] DOF Secretary Frederick D. Go** (h2r5-turn-001640) then our revenue numbers are likewise lowered, proportionately. **[01:51:45.690] Rep. Percival "Perci" Cendaña** (h2r5-turn-001641) Madam Chair, may the committee please direct the DBCC to submit a downside **[01:51:51.070] Rep. Percival "Perci" Cendaña** (h2r5-turn-001642) macroeconomic scenario showing the physical consequences of a 4 GDP growth, 65 peso to a dollar exchange rate, higher oil prices and interest rates, 100 basis points above baseline. Madam Chair, can we request the DBCC? **[01:52:07.070] Rep. Albert S. Garcia** (h2r5-turn-001643) Yes, the **[01:52:07.210] Rep. Albert S. Garcia** (h2r5-turn-001644) DBCC is so directed. Please submit the documents requested by **[01:52:14.350] Rep. Albert S. Garcia** (h2r5-turn-001645) Cong Perci. **[01:52:15.770] Rep. Percival "Perci" Cendaña** (h2r5-turn-001646) Thank you very much, Mr. Chair. **[01:52:17.690] Rep. Percival "Perci" Cendaña** (h2r5-turn-001647) Ganun pa rin po yung kwento, no? Yung iba yung kwento last year, iba dun sa kwento this year. **[01:52:22.510] Rep. Percival "Perci" Cendaña** (h2r5-turn-001648) Last year, you told Congress that the deficit would fall to 4.8 of GDP by 2027. **[01:52:28.910] Rep. Percival "Perci" Cendaña** (h2r5-turn-001649) Now you are saying 5.1%. Why **[01:52:32.230] Rep. Percival "Perci" Cendaña** (h2r5-turn-001650) has fiscal consolidation been pushed back? **[01:52:36.740] Rep. Percival "Perci" Cendaña** (h2r5-turn-001651) And if I may also throw in my follow-up question just to be sure that I'll be able to cover the questions, how many times can government revise the fiscal consolidation path before Congress should conclude that the original target is no longer credible? **[01:52:51.380] Rep. Percival "Perci" Cendaña** (h2r5-turn-001652) What is the government's actual medium term fiscal anchor? **[01:52:55.500] Rep. Percival "Perci" Cendaña** (h2r5-turn-001653) Mr. Chair, to **[01:52:59.490] Rep. Percival "Perci" Cendaña** (h2r5-turn-001654) the DOF. **[01:53:03.530] DOF Secretary Frederick D. Go** (h2r5-turn-001655) Mr. Chair, Your Honor, actually the **[01:53:07.350] DOF Secretary Frederick D. Go** (h2r5-turn-001656) way it works is the DBCC meets two times a year. And **[01:53:12.710] DOF Secretary Frederick D. Go** (h2r5-turn-001657) every time the DBCC meets, the members of the DBCC, namely DEBDEV, DBM, DOF, and the Office of the President, **[01:53:21.830] DOF Secretary Frederick D. Go** (h2r5-turn-001658) discuss all the macroeconomic assumptions that will be used to **[01:53:26.130] DOF Secretary Frederick D. Go** (h2r5-turn-001659) come up with the budget **[01:53:28.570] DOF Secretary Frederick D. Go** (h2r5-turn-001660) changes, if you will. **[01:53:30.910] DOF Secretary Frederick D. Go** (h2r5-turn-001661) So, **[01:53:33.230] DOF Secretary Frederick D. Go** (h2r5-turn-001662) the **[01:53:35.050] DOF Secretary Frederick D. Go** (h2r5-turn-001663) when **[01:53:38.310] DOF Secretary Frederick D. Go** (h2r5-turn-001664) the war in Iran or the closure of the Strait of Hormuz happened, **[01:53:43.520] DOF Secretary Frederick D. Go** (h2r5-turn-001665) it had a severe impact to **[01:53:45.910] DOF Secretary Frederick D. Go** (h2r5-turn-001666) our inflation rate. **[01:53:47.850] DOF Secretary Frederick D. Go** (h2r5-turn-001667) We were projecting an inflation rate of 3 to 4 percent. **[01:53:51.750] DOF Secretary Frederick D. Go** (h2r5-turn-001668) It jumped to over **[01:53:54.030] DOF Secretary Frederick D. Go** (h2r5-turn-001669) 6 percent. **[01:53:55.170] DOF Secretary Frederick D. Go** (h2r5-turn-001670) And therefore, real GDP, instead of we expected it to grow by 5 **[01:54:01.610] DOF Secretary Frederick D. Go** (h2r5-turn-001671) to 6 percent, instead only grew by 2.8 **[01:54:05.470] DOF Secretary Frederick D. Go** (h2r5-turn-001672) percent. **[01:54:06.150] DOF Secretary Frederick D. Go** (h2r5-turn-001673) So, the technical working group of the DBCC had to take into account the reality. **[01:54:11.850] DOF Secretary Frederick D. Go** (h2r5-turn-001674) Of **[01:54:12.230] DOF Secretary Frederick D. Go** (h2r5-turn-001675) the situation that **[01:54:15.870] DOF Secretary Frederick D. Go** (h2r5-turn-001676) previous macroeconomic assumptions no longer hold. **[01:54:19.370] DOF Secretary Frederick D. Go** (h2r5-turn-001677) So, in coming up with the BESF of 2027, **[01:54:23.690] DOF Secretary Frederick D. Go** (h2r5-turn-001678) we had to **[01:54:25.930] DOF Secretary Frederick D. Go** (h2r5-turn-001679) follow the new **[01:54:27.350] DOF Secretary Frederick D. Go** (h2r5-turn-001680) macroeconomic assumptions that were produced **[01:54:30.870] DOF Secretary Frederick D. Go** (h2r5-turn-001681) by DEBDEV **[01:54:32.430] DOF Secretary Frederick D. Go** (h2r5-turn-001682) and DBM. Then we do the revenue side. **[01:54:36.590] Rep. Percival "Perci" Cendaña** (h2r5-turn-001683) Thank you, Mr. Chair. Again, may the committee please direct the DBCC to submit a **[01:54:42.650] Rep. Percival "Perci" Cendaña** (h2r5-turn-001684) reconciliation of the 2025, 2026, and **[01:54:46.370] Rep. Percival "Perci" Cendaña** (h2r5-turn-001685) 2027 BESF medium-term fiscal program, **[01:54:50.590] Rep. Percival "Perci" Cendaña** (h2r5-turn-001686) showing why each major forecast changed. **[01:54:54.130] Rep. Albert S. Garcia** (h2r5-turn-001687) The DBCC is so directed. **[01:54:56.850] Rep. Albert S. Garcia** (h2r5-turn-001688) Thank you. **[01:54:59.230] Rep. Percival "Perci" Cendaña** (h2r5-turn-001689) I **[01:54:59.910] Rep. Percival "Perci" Cendaña** (h2r5-turn-001690) still have a minute and 38 seconds. Again, doon po sa kwentong iba last year sa kwento this year, no? **[01:55:05.670] Rep. Percival "Perci" Cendaña** (h2r5-turn-001691) You previously expected 5.366 trillion in revenues for 2027. **[01:55:11.850] Rep. Percival "Perci" Cendaña** (h2r5-turn-001692) You now expect only 5.206 **[01:55:14.850] Rep. Percival "Perci" Cendaña** (h2r5-turn-001693) trillion. **[01:55:15.610] Rep. Percival "Perci" Cendaña** (h2r5-turn-001694) Where did we lose approximately 161 billion? **[01:55:22.010] DOF Secretary Frederick D. Go** (h2r5-turn-001695) Your Honor, the answer is **[01:55:25.470] DOF Secretary Frederick D. Go** (h2r5-turn-001696) similar to what I said earlier. If the GDP drops **[01:55:29.250] DOF Secretary Frederick D. Go** (h2r5-turn-001697) by **[01:55:31.790] DOF Secretary Frederick D. Go** (h2r5-turn-001698) 2.5 percentage points, **[01:55:34.290] DOF Secretary Frederick D. Go** (h2r5-turn-001699) then we have to assume that the economy is slowing, which means that the tax collections of **[01:55:39.970] DOF Secretary Frederick D. Go** (h2r5-turn-001700) our tax collection agencies will **[01:55:42.210] DOF Secretary Frederick D. Go** (h2r5-turn-001701) also, be reduced **[01:55:44.970] DOF Secretary Frederick D. Go** (h2r5-turn-001702) accordingly. **[01:55:47.030] Rep. Percival "Perci" Cendaña** (h2r5-turn-001703) Having heard that, would weak revenue collection hinder the proposed adjustment on tax exemption? How about lowering of the VAT or imposing a wealth tax? **[01:55:57.390] DOF Secretary Frederick D. Go** (h2r5-turn-001704) Your Honor, Mr. Chair, we actually have submitted to Congress a bill that we have called PROGRESS. **[01:56:05.850] DOF Secretary Frederick D. Go** (h2r5-turn-001705) Within PROGRESS, there are two revenue eroding measures, which is one is the increase of personal income tax from 250,000 a year to 350,000 a year. **[01:56:16.930] DOF Secretary Frederick D. Go** (h2r5-turn-001706) The second is to exempt micro **[01:56:19.850] DOF Secretary Frederick D. Go** (h2r5-turn-001707) and small industries from minimum **[01:56:22.910] DOF Secretary Frederick D. Go** (h2r5-turn-001708) corporate income tax. **[01:56:24.630] DOF Secretary Frederick D. Go** (h2r5-turn-001709) And in the same bill, we proposed eight **[01:56:27.550] DOF Secretary Frederick D. Go** (h2r5-turn-001710) measures, **[01:56:28.710] DOF Secretary Frederick D. Go** (h2r5-turn-001711) revenue enhancing measures, for your consideration. **[01:56:32.150] DOF Secretary Frederick D. Go** (h2r5-turn-001712) And in those eight **[01:56:33.970] DOF Secretary Frederick D. Go** (h2r5-turn-001713) measures, they basically cover social, environmental, and health taxes. **[01:56:41.610] DOF Secretary Frederick D. Go** (h2r5-turn-001714) So if **[01:56:44.010] DOF Secretary Frederick D. Go** (h2r5-turn-001715) Congress approves those revenue enhancing measures, it will fully cover for the revenue eroding measures. **[01:56:53.570] Rep. Percival "Perci" Cendaña** (h2r5-turn-001716) Mr. Chair, may we direct the DBCC to submit a bridge table reconciling the old 2027 revenue forecast with the new one, Mr. Chair? **[01:57:05.190] Rep. Albert S. Garcia** (h2r5-turn-001717) Yes. The DBCC is so directed. **[01:57:09.710] Rep. Percival "Perci" Cendaña** (h2r5-turn-001718) Thank you. I **[01:57:11.690] Rep. Percival "Perci" Cendaña** (h2r5-turn-001719) have a minute, I believe, Mr. Chair. **[01:57:14.950] Rep. Albert S. Garcia** (h2r5-turn-001720) That is correct. **[01:57:16.710] Rep. Percival "Perci" Cendaña** (h2r5-turn-001721) Sige po, dun na po tayo sa malapit sa sikmura at sa pinagdadaanan ng mga kababayan natin araw-araw. **[01:57:22.730] Rep. Percival "Perci" Cendaña** (h2r5-turn-001722) Eto po, the functional allocation for health falls from approximately 458 billion to 362.7 billion, a decline approaching 96 billion pesos. Please identify program by program what accounts for the roughness of the revenue. The roughly 96 billion decline in health sector allocation **[01:57:45.630] Rep. Percival "Perci" Cendaña** (h2r5-turn-001723) to **[01:57:46.230] Rep. Percival "Perci" Cendaña** (h2r5-turn-001724) the DBM. **[01:57:50.580] Rep. Percival "Perci" Cendaña** (h2r5-turn-001725) Sige po, baka it might help in framing the answer. Dugtong ko na po yung aking kasunod na tanong. How much of this is related to PhilHealth? How much reflects one of expenditures in 2026? How much represents an actual reduction in health services? What happens to out-of-pocket health expenditures if government health financing does not keep pace with the demand? **[01:58:15.320] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001726) Your Honor, **[01:58:16.520] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001727) Mr. Chair, one **[01:58:18.280] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001728) of the at least two items that received when we compare the **[01:58:23.100] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001729) 2027 NEP to the GAA **[01:58:25.560] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001730) has a decrease is the Health Facilities Enhancement Program because of the **[01:58:30.900] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001731) utilization of the DOH of its 2026 allocation. **[01:58:35.330] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001732) The same is true with **[01:58:37.500] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001733) the medical **[01:58:41.000] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001734) assistance to indigent and financially incapacitated patients which **[01:58:45.900] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001735) we retained **[01:58:46.820] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001736) to the NEP level of 2026. **[01:58:50.140] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001737) But despite the decrease in allocation of the MAIFIP, **[01:58:53.600] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001738) the administration and the president has approved that the coverage of the zero balance billing program be expanded under **[01:59:01.520] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001739) the PhilHealth. That's why they had an additional of **[01:59:04.600] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001740) 14 billion in subsidy. A notable factor as well, Your **[01:59:10.280] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001741) Honor, Mr. Chair, on the decrease of the health sector budget is the one time **[01:59:14.760] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001742) return **[01:59:16.760] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001743) return of the 60 billion peso fund **[01:59:19.960] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001744) balance to PhilHealth. So that was part of the 2026 level. So **[01:59:24.295] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001745) hence, that's a factor when we when compare we the **[01:59:27.660] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001746) compare the health sector health spending sector between spending the between 2026 the GAA 2026 GAA and **[01:59:31.680] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001747) and the 2027 2027 NEP. Basically, **[01:59:33.799] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001748) those **[01:59:34.274] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001749) Basically, three those major three major items, Your Your Honor, Mr. Chair. **[01:59:38.160] Rep. Percival "Perci" Cendaña** (h2r5-turn-001750) Mr. Chair, may we direct the DBCC to submit to this committee a reconciliation of the DOH, NEP. Of PhilHealth, health facilities and medical assistance, and other health-related appropriations for 2025 to 2027, Mr. Chair. **[01:59:53.820] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001751) We will provide **[01:59:54.340] Rep. Albert S. Garcia** (h2r5-turn-001752) Yes, Cong. Perci **[01:59:54.340] Rep. Percival "Perci" Cendaña** (h2r5-turn-001753) ... **[01:59:54.500] Rep. Percival "Perci" Cendaña** (h2r5-turn-001754) ... **[01:59:54.760] Rep. Percival "Perci" Cendaña** (h2r5-turn-001755) ... **[01:59:55.040] Rep. Percival "Perci" Cendaña** (h2r5-turn-001756) Your Honor. **[01:59:55.500] Rep. Albert S. Garcia** (h2r5-turn-001757) The DBCC is so directed. **[01:59:58.314] Rep. Albert S. Garcia** (h2r5-turn-001758) Thank you **[01:59:59.118] Rep. Percival "Perci" Cendaña** (h2r5-turn-001759) ... **[01:59:59.800] Rep. Percival "Perci" Cendaña** (h2r5-turn-001760) A very brief manifestation as my time has ended. Nakakalungkot po at nakababahala na dito sa mismong budget, kita ang pagkamanhit pagkamanhid ng gobyerno sa pinagdadaan ng hirap na ating mga mamamayan. Kung makikita po natin yung mga top losers, top five losers, pag tininan po natin yung budget ng mga ahensya, karamihan po dito ay social services na kailangan-kailangan sa panahon na ng lulunod sa taas. Mas presyo at hirap ng buhay ang ating mga kababayan. Sabi po kanina, ang DPM dapat budget makatao. Pero habang binabasa ko po ang NEP, ang aking natanong, di ba manhid? Marami pong salamat. **[02:00:37.140] Rep. Albert S. Garcia** (h2r5-turn-001761) Maraming salamat, Cong. Perci. **[02:00:40.020] Rep. Albert S. Garcia** (h2r5-turn-001762) Next, we go back to the majority. May **[02:00:43.180] Rep. Albert S. Garcia** (h2r5-turn-001763) we call on? **[02:00:43.880] Rep. Albert S. Garcia** (h2r5-turn-001764) Congresswoman Deth **[02:00:46.140] Rep. Albert S. Garcia** (h2r5-turn-001765) Escudero. **[02:00:47.560] Rep. Marie Bernadette G. Escudero** (h2r5-turn-001766) Thank you, Mr. Chair. Please go **[02:00:48.420] Rep. Albert S. Garcia** (h2r5-turn-001766-split-2) Please go ahead, ma'am. **[02:00:50.380] Rep. Marie Bernadette G. Escudero** (h2r5-turn-001767) Good afternoon to everyone present here today. **[02:00:53.500] Rep. Marie Bernadette G. Escudero** (h2r5-turn-001768) My question is for the DBM. **[02:00:56.880] Rep. Marie Bernadette G. Escudero** (h2r5-turn-001769) Mr. Secretary, **[02:00:58.640] Rep. Marie Bernadette G. Escudero** (h2r5-turn-001770) good afternoon. **[02:01:00.000] Rep. Marie Bernadette G. Escudero** (h2r5-turn-001771) Last year, as DOT's budget sponsor, I advocated to revise the special provisions to help augment our tourism promotion budget. **[02:01:09.120] Rep. Marie Bernadette G. Escudero** (h2r5-turn-001772) If you will notice po, ang budget po ng Department of Tourism hindi **[02:01:14.220] Rep. Marie Bernadette G. Escudero** (h2r5-turn-001773) ganun kataas as compared to the other agencies. So at that time, **[02:01:17.460] Rep. Marie Bernadette G. Escudero** (h2r5-turn-001774) naghanap po ako ng ibang ways to augment the **[02:01:21.800] Rep. Marie Bernadette G. Escudero** (h2r5-turn-001775) budget of the DOT. **[02:01:24.020] Rep. Marie Bernadette G. Escudero** (h2r5-turn-001776) Natanong ko na rin po ito, but hindi po kami nagkaroon ng agreement with the DBM. **[02:01:29.480] Rep. Marie Bernadette G. Escudero** (h2r5-turn-001777) Given that the Tourism Development Fund and Tourism **[02:01:33.560] Rep. Marie Bernadette G. Escudero** (h2r5-turn-001778) Promotions Fund are already earmarked by law and treated as automatically appropriated in **[02:01:38.660] Rep. Marie Bernadette G. Escudero** (h2r5-turn-001779) the Special Account in the General Fund or SAGF under **[02:01:42.280] Rep. Marie Bernadette G. Escudero** (h2r5-turn-001780) PD No. 1234, ang tanong ko lang po, bakit po kailangan pa ng separate budget request ng DOT bago **[02:01:48.620] Rep. Marie Bernadette G. Escudero** (h2r5-turn-001781) po ito magamit? Is the DBM simply verifying the available balance? **[02:01:53.540] Rep. Marie Bernadette G. Escudero** (h2r5-turn-001782) The purpose? Or is there another layer of approval before mabigay or ma-release ang funds? **[02:02:00.540] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001783) Mr. Chair, your honor, for the Special Account in the General Fund, and this is applicable across all the departments naman po. Utilization of any amounts from the Special Account requires the submission of **[02:02:13.520] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001784) their respective special budget request so **[02:02:17.220] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001785) that we can determine particularly, no, **[02:02:19.960] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001786) whether kung in **[02:02:22.060] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001787) line po yung kanilang proposal. Yes, expenditure dun sa purpose **[02:02:25.720] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001788) of the Special Account **[02:02:27.464] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001789) as well as to check **[02:02:29.644] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001790) po because we are subjecting the **[02:02:32.260] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001791) use of the Special Account sa atin pong fiscal programming. **[02:02:36.980] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001792) So, in the NEP, the **[02:02:39.580] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001793) DBM has actually determined the portion of the actual balance of the SAGF that **[02:02:45.940] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001794) the agency can actually utilize during the fiscal year. So, yun lamang naman po yung gusto nating ma-determine, your honor, **[02:02:52.680] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001795) sa pag-requirement. wire sa agency sa pag-release nung kanilang funds from the special account? **[02:02:59.340] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001796) Can the department provide us with the actual SAGF balance, **[02:03:04.680] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001797) amount released, amount obligated, and the unreleased balance of both the Tourism Development Fund and the Tourism Promotions Fund for the last at least three years? And I think this will help us better understand whether available tourism funds can be released more efficiently. **[02:03:20.740] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001798) And also, I noticed din po, **[02:03:23.860] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001799) in the 2026 General Appropriations Act, **[02:03:28.220] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001800) under the special provisions, **[02:03:30.860] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001801) naka-earmark **[02:03:32.240] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001802) yung 1,339,608 for tourism promotion, but **[02:03:40.820] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001803) for **[02:03:43.180] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001804) 2027, nagbago po yung special provision, if I'm not mistaken. So, it says that, it **[02:03:50.320] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001805) says here the amount chargeable against the SAGF in **[02:03:53.760] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001806) BEF Table B.15 under **[02:03:57.580] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001807) year 2027 **[02:03:59.880] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001808) proposed expenditures shall be used for tourism promotions and marketing activities of the Tourism Promotions Board. Anyway, I won't read the whole thing, but wala na pong nakalagay talaga na exact amount for year 2027. May I ask po kung **[02:04:17.240] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001809) ano po yung rationale for this change in the special provisions? **[02:04:23.540] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001810) Mr. Chair, Your Honor, well, number one po on the balances that is included po in Table B.15 of the BESF, the balances of December 2025. **[02:04:33.380] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001811) And that is also the reason, Madam Chair, the answer for the second question, **[02:04:37.880] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001812) na it's just a different style of presenting the special provision. It's **[02:04:42.400] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001813) actually the same special provision, Madam, Your **[02:04:45.120] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001814) Honor, **[02:04:45.620] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001815) but the amount, instead of it being reflected as an amount, referred to the table itself. But the **[02:04:52.840] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001816) table, actually, includes the same amount which is being programmed for 2027. Ah, **[02:04:58.060] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001817) so parehas lang po **[02:04:59.120] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001818) na amount. **[02:05:10.480] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001819) For the, Your Honor, Mr. Chair, for the Tourism Development Fund, **[02:05:15.780] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001820) 4.578. **[02:05:19.140] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001821) Ang expenditure po, program **[02:05:22.100] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001822) for the special account of, this is DOT. **[02:05:29.950] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001823) May I just clarify, Your Honor, if the question for the program is TPB? **[02:05:38.390] Rep. Marie Bernadette G. Escudero** (h2r5-turn-001824) I'm sorry, it's TPF. **[02:05:40.590] Rep. Marie Bernadette G. Escudero** (h2r5-turn-001825) Yeah. **[02:05:42.290] Rep. Marie Bernadette G. Escudero** (h2r5-turn-001826) Tourism Promotions Fund. **[02:05:44.310] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001827) Mr. Chair, Your Honor, for the Tourism Promotions Fund of **[02:05:49.150] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001828) the utilization of the Tourism Promotions Board, as stated in Table B15, **[02:05:54.610] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001829) the programmed expenditures for 2027 is 1 **[02:05:59.010] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001830) .119 **[02:06:01.150] Rep. Marie Bernadette G. Escudero** (h2r5-turn-001831) billion pesos. So **[02:06:03.150] Rep. Marie Bernadette G. Escudero** (h2r5-turn-001832) it decreased po from the 1.339 from **[02:06:08.350] Rep. Marie Bernadette G. Escudero** (h2r5-turn-001833) 2026. **[02:06:11.430] Rep. Marie Bernadette G. Escudero** (h2r5-turn-001834) There is a slight reduction, Your Honor. **[02:06:13.950] Rep. Marie Bernadette G. Escudero** (h2r5-turn-001835) May I ask po, what's the reason for this? Because, as I said, isa na po sa pinakamababa talagang budget ang DOT. **[02:06:22.890] Rep. Marie Bernadette G. Escudero** (h2r5-turn-001836) For 2026, I believe it's 19.3 of **[02:06:28.310] Rep. Marie Bernadette G. Escudero** (h2r5-turn-001837) yung total collections. **[02:06:30.770] Rep. Marie Bernadette G. Escudero** (h2r5-turn-001838) And now, it came down for year 2027 to 16.1%. **[02:06:40.520] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001839) Mr. Chair, Your Honor, per available data, not to mention, number one, the utilization rate of TPB for 2026. We have also considered that for 2026, there are committed activities, part of that authorized level intended for ASEAN hosting, **[02:06:59.000] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001840) which is only a one-off event this year. **[02:07:05.890] Rep. Marie Bernadette G. Escudero** (h2r5-turn-001841) At the appropriate time, Mr. Secretary, I hope we can revisit these special provisions so we can work **[02:07:13.390] Rep. Marie Bernadette G. Escudero** (h2r5-turn-001842) together for a more efficient mechanism so that these earmarked tourism funds can be utilized. Kasi po, itong, for **[02:07:19.130] Rep. Marie Bernadette G. Escudero** (h2r5-turn-001843) me po, itong budget na po ito, talagang kinolect talaga ito at inappropriate for the Department of Tourism. So, yun lang po talaga yung concern ko na sana magamit talaga **[02:07:28.850] Rep. Marie Bernadette G. Escudero** (h2r5-turn-001844) itong pondo na ito for the Department. **[02:07:33.850] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001845) Mr. Chair, Your Honor would be happy to work with Your **[02:07:37.070] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001846) Honor on that particular item. **[02:07:39.610] Rep. Marie Bernadette G. Escudero** (h2r5-turn-001847) And also, Mr. Chair, this actually goes beyond tourism. If the government already has collected revenue, specifically earmarked for a **[02:07:48.610] Rep. Marie Bernadette G. Escudero** (h2r5-turn-001848) particular public purpose, should we not establish a uniform **[02:07:52.290] Rep. Marie Bernadette G. Escudero** (h2r5-turn-001849) risk-based mechanism for the SAGF so that **[02:07:56.570] Rep. Marie Bernadette G. Escudero** (h2r5-turn-001850) agencies can access these funds efficiently while retaining DBM, Treasury, and of course COA safeguards? **[02:08:05.210] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001851) Mr. Chair, Your Honor, special accounts in the general fund are actually automatic appropriations. And what the DBM is doing is to program a **[02:08:14.150] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001852) portion of the SAGF, which can actually be utilized by these agencies during **[02:08:19.510] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001853) the fiscal year. So, that's part of our judicial-fiscal programming so **[02:08:23.690] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001854) as not to also contribute to **[02:08:26.070] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001855) increase in deficit if we'll be able to program more than what the agency actually needs or what it can actually spend. **[02:08:32.890] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001856) But we'll be happy to work with the **[02:08:34.490] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001857) good sponsor for the tourism budget and we'll be happy to share our notes as well **[02:08:40.250] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001858) on what were the basis in coming up with those levels. **[02:08:43.590] Rep. Marie Bernadette G. Escudero** (h2r5-turn-001859) Thank you. Thank you, Mr. Chair. Thank you, Secretary. **[02:08:48.340] Rep. Albert S. Garcia** (h2r5-turn-001860) So, thank you very much, Congresswoman Deth. **[02:08:52.020] Rep. Albert S. Garcia** (h2r5-turn-001861) And now, **[02:08:53.640] Rep. Albert S. Garcia** (h2r5-turn-001862) may we call on Congresswoman Sarah Elago. **[02:08:58.200] Rep. Albert S. Garcia** (h2r5-turn-001863) Please proceed, ma'am. **[02:09:00.580] Rep. Sarah Jane I. Elago** (h2r5-turn-001864) Yes, maraming salamat, Mr. Chair. **[02:09:03.420] Rep. Sarah Jane I. Elago** (h2r5-turn-001865) Hindi maganda ang araw sa maraming humarap sa malakas na buhos ng ulan at lumusang sa baha. **[02:09:08.460] Rep. Sarah Jane I. Elago** (h2r5-turn-001866) Ngayong umaga, mga commuters at mga manggagawa, lalo ng mga transport sector workers na nananatiling stranded sa daan, mga lumikas na, at **[02:09:18.180] Rep. Sarah Jane I. Elago** (h2r5-turn-001867) saka sa lukuyan na sa evacuation centers na, at marami naghihintay pa ng rescue at tulong. Hindi lang mga bahay at daan ang mga binabaha. Binabaha rin ang problema ang ordinaryong mamamayan. Lubog ang agrikultura at manupaktura, **[02:09:31.920] Rep. Sarah Jane I. Elago** (h2r5-turn-001868) kaya kulang na kulang ang regular at disenting trabaho at kabuhayan. **[02:09:36.220] Rep. Sarah Jane I. Elago** (h2r5-turn-001869) Lubog sa utang ang marami sa taas ng presyo ng bilihin at napakababang sahod. **[02:09:41.120] Rep. Sarah Jane I. Elago** (h2r5-turn-001870) Lubog rin sa pambansang utang dahil sa pagkataas-taas ng pambansang utang na umabot na sa P1.1 trillion pesos o nasa 64.9 na laki ng utang na umabot na sa **[02:09:55.360] Rep. Sarah Jane I. Elago** (h2r5-turn-001871) nakumpara doon sa buong halaga ng mga produkto at servisyo na ginagawa ng bansa. This is the highest in 22 years, Mr. Chair. Ang utang ay pataas ng pataas imbes na bumababa. **[02:10:08.280] Rep. Sarah Jane I. Elago** (h2r5-turn-001872) Una, magkano po ba yung balak na utangin ng pamahalaan sa susunod na taon **[02:10:12.580] Rep. Sarah Jane I. Elago** (h2r5-turn-001873) upang pondohan ang **[02:10:14.400] Rep. Sarah Jane I. Elago** (h2r5-turn-001874) kulang sa ating budget sa 2027? Ang ating fiscal deficit. **[02:10:19.220] Rep. Sarah Jane I. Elago** (h2r5-turn-001875) Ah diretsuhin ko na po sa inyong presentation, it's at 3.304 trillion pesos. Pwede po bang mag-submit ang ating DBCC ng list at breakdown ng lahat ng domestic at external sources sa committee and appropriations? **[02:10:36.430] Rep. Albert S. Garcia** (h2r5-turn-001876) Yes, the DBCC is directed to submit said document **[02:10:42.420] Rep. Albert S. Garcia** (h2r5-turn-001877) requested by Congresswoman Sara. **[02:10:45.780] Rep. Sarah Jane I. Elago** (h2r5-turn-001878) Yes, Mr. Chair. Dahil dito, bawat isang Pilipino ngayon may tinataya na na 166,000 77 pesos at tataas pa maski ang mga hindi pa pinapanganak at susunod na salinlahi, lubog na lubog na agad sa pambansang utang. Doon po sa 7.2 trillion budget, **[02:11:02.500] Rep. Sarah Jane I. Elago** (h2r5-turn-001879) ang debt interest payments nasa 1.1 **[02:11:06.780] Rep. Sarah Jane I. Elago** (h2r5-turn-001880) trillion pesos. **[02:11:08.640] Rep. Sarah Jane I. Elago** (h2r5-turn-001881) Ngunit magkano po yung para pa sa principal **[02:11:10.980] Rep. Sarah Jane I. Elago** (h2r5-turn-001882) amortization na babayaran natin? **[02:11:27.010] Rep. Albert S. Garcia** (h2r5-turn-001883) Cong. Sara, your question is directed to **[02:11:31.610] Rep. Albert S. Garcia** (h2r5-turn-001884) which agency? **[02:11:33.070] Rep. Sarah Jane I. Elago** (h2r5-turn-001885) Yes, for the DBM, DOF? **[02:11:34.100] Rep. Albert S. Garcia** (h2r5-turn-001885-split-2) DBM? **[02:11:35.650] Rep. Albert S. Garcia** (h2r5-turn-001886) DBM can answer the **[02:11:37.210] Rep. Albert S. Garcia** (h2r5-turn-001887) amount **[02:11:38.470] Rep. Albert S. Garcia** (h2r5-turn-001888) for principal amortization payment **[02:11:40.910] Rep. Albert S. Garcia** (h2r5-turn-001889) for this year. **[02:11:42.230] Rep. Albert S. Garcia** (h2r5-turn-001890) Can you repeat the question, Cong. Sara? Kakapasok lang po muli ni Sec. Dec. **[02:11:47.790] Rep. Sarah Jane I. Elago** (h2r5-turn-001891) Magkano ang ating total debt service expenditure? Kanina na-report na sa 1.1 yung para sa debt interest payment. **[02:11:56.470] Rep. Sarah Jane I. Elago** (h2r5-turn-001892) What about for principal amortization? **[02:12:01.350] DOF Secretary Frederick D. Go** (h2r5-turn-001893) For this year, the difference between would **[02:12:05.870] DOF Secretary Frederick D. Go** (h2r5-turn-001894) be we can compute it now. **[02:12:12.110] DOF Secretary Frederick D. Go** (h2r5-turn-001895) 1.6 trillion principal **[02:12:14.900] DOF Secretary Frederick D. Go** (h2r5-turn-001896) amortization. **[02:12:16.880] Rep. Sarah Jane I. Elago** (h2r5-turn-001897) Yan, Mr. Chair, ang hindi po natin masyado na pag-uusapan dito. Sa katunayan, **[02:12:21.360] Rep. Sarah Jane I. Elago** (h2r5-turn-001898) nasa 2.7 trillion pesos yung ating total **[02:12:24.920] Rep. Sarah Jane I. Elago** (h2r5-turn-001899) debt service expenditure na **[02:12:27.140] Rep. Sarah Jane I. Elago** (h2r5-turn-001900) sa totoo lang ay pagkataas-taas po. Mas mataas pa sa lahat ng mga gagastusin natin. Social services, sa economic at lahat ng napakarami pang mga pangangailangan ng ating mga kababayan. At malaking bahagi din po dyan talagang **[02:12:41.220] Rep. Sarah Jane I. Elago** (h2r5-turn-001901) automatic **[02:12:41.660] Rep. Sarah Jane I. Elago** (h2r5-turn-001902) appropriations, hindi na po dumadaan sa masusing pagdedebate, imbes na ginagastus natin. At tulad na lang dun sa maraming panawagan ng ating mga kababayan para **[02:12:52.760] Rep. Sarah Jane I. Elago** (h2r5-turn-001903) sa mas mataas na podo sa kalusugan, sa **[02:12:55.140] Rep. Sarah Jane I. Elago** (h2r5-turn-001904) edukasyon, at marami pang iba. Ang **[02:12:57.300] Rep. Sarah Jane I. Elago** (h2r5-turn-001905) ngayon, **[02:12:58.480] Rep. Sarah Jane I. Elago** (h2r5-turn-001906) Mr. Chair, **[02:12:59.980] Rep. Sarah Jane I. Elago** (h2r5-turn-001907) 19 billion din ng ating **[02:13:02.340] Rep. Sarah Jane I. Elago** (h2r5-turn-001908) foreign-assisted projects ay para sa flood control. **[02:13:06.550] Rep. Sarah Jane I. Elago** (h2r5-turn-001909) Di po ba ito maaaring mailagay na lang dun sa marami ding makakaranas na budget cut? Halimbawa ho, **[02:13:12.690] Rep. Sarah Jane I. Elago** (h2r5-turn-001910) sa Department of Agriculture, wala pa rin pondo yung agricultural **[02:13:17.220] Rep. Sarah Jane I. Elago** (h2r5-turn-001911) production subsidy. **[02:13:19.220] Rep. Sarah Jane I. Elago** (h2r5-turn-001912) Pagdating naman sa **[02:13:21.280] Rep. Sarah Jane I. Elago** (h2r5-turn-001913) DOLE, wala pa rin pong pondo para dun sa mas pang matagalan na job creation. At bulk pa rin ang budget niya nasa tupad o nasa short term lang na **[02:13:32.340] Rep. Sarah Jane I. Elago** (h2r5-turn-001914) tulong sa trabaho. **[02:13:35.640] Rep. Sarah Jane I. Elago** (h2r5-turn-001915) Ano ho ba? **[02:13:36.800] Rep. Sarah Jane I. Elago** (h2r5-turn-001916) Bakit po patuloy pa rin natin na billion-billion yung nilalagay sa flood control imbis po **[02:13:43.300] Rep. Sarah Jane I. Elago** (h2r5-turn-001917) ilagay sa mga servisyong ito? **[02:13:46.560] Rep. Sarah Jane I. Elago** (h2r5-turn-001918) Mr. Chair, **[02:13:48.600] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001919) your honor, yun pong 19 billion that was mentioned by the good congressman intended, congresswoman for flood control under the DPWH budget ay **[02:13:58.300] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001920) mga project loans, your honor. Specifically, **[02:14:02.340] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001921) secured for the purpose na nakalagay po sa ating national expenditure program. So consistent po dun sa nature ng project loan, **[02:14:09.560] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-001922) hindi po natin maaaring gamitin yung loan for any other purpose than what is intended po dun sa ating, pinirmahan sa ating development partner. **[02:14:20.920] Rep. Sarah Jane I. Elago** (h2r5-turn-001923) Yes. **[02:14:21.920] Rep. Sarah Jane I. Elago** (h2r5-turn-001924) Bukod sa budget cut, Mr. Chair, nandyan din halimbawa yung **[02:14:25.600] Rep. Sarah Jane I. Elago** (h2r5-turn-001925) masyado po natin minamaliit yung bilang ng mga may hirap sa ating bansa. **[02:14:30.980] Rep. Sarah Jane I. Elago** (h2r5-turn-001926) Dito po sa kanilang, report na na-lift na daw po yung 8.8 million Filipinos na **[02:14:37.200] Rep. Sarah Jane I. Elago** (h2r5-turn-001927) mas **[02:14:38.740] Rep. Sarah Jane I. Elago** (h2r5-turn-001928) maangat ang buhay. Ang **[02:14:40.260] Rep. Sarah Jane I. Elago** (h2r5-turn-001929) basis po ng kanilang poverty threshold ay nasa 2017 pa rin po na value. Tama po ba? **[02:14:46.000] Rep. Sarah Jane I. Elago** (h2r5-turn-001930) Sa DepDep po at saka sa PSA. **[02:14:49.340] Rep. Sarah Jane I. Elago** (h2r5-turn-001931) Ito po ay nakabatay pa rin dun sa food poverty threshold na nasa 63 pesos o nasa 21 **[02:14:56.700] Rep. Sarah Jane I. Elago** (h2r5-turn-001932) pesos **[02:14:57.260] Rep. Sarah Jane I. Elago** (h2r5-turn-001933) per day. **[02:14:58.060] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001934) Mr. Chair, the **[02:15:00.500] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001935) whenever we, **[02:15:02.340] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001936) we compute the new poverty, we **[02:15:06.240] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001937) also adjust the threshold **[02:15:08.940] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001938) for the **[02:15:10.400] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001939) purchasing power, that is inflation. **[02:15:12.880] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001940) So... **[02:15:13.180] Rep. Sarah Jane I. Elago** (h2r5-turn-001941) Magkano na ho ngayon, Mr. Chair, ang ating **[02:15:16.060] Rep. Sarah Jane I. Elago** (h2r5-turn-001942) current na poverty threshold at food poverty threshold? **[02:15:23.060] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001943) Sa NCR, **[02:15:26.040] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001944) it's now 16,842 for **[02:15:30.540] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001945) a family of five. **[02:15:32.340] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001946) Ah, **[02:15:34.160] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001947) Mr. Chair. **[02:15:37.000] Rep. Sarah Jane I. Elago** (h2r5-turn-001948) Mr. Chair, sa labas ng NCR? **[02:15:39.480] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001949) For the rest of the country, our national average is 14 **[02:15:43.660] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001950) ,634 pesos. **[02:15:47.120] Rep. Sarah Jane I. Elago** (h2r5-turn-001951) And the food poverty threshold is about what **[02:15:48.940] Rep. Sarah Jane I. Elago** (h2r5-turn-001952) percentage? **[02:15:49.660] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001953) For a **[02:15:50.374] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001954) family of five members also. Okay. **[02:15:52.700] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001955) Per month. **[02:15:53.580] Rep. Sarah Jane I. Elago** (h2r5-turn-001956) So, magkano ho ito kada araw? **[02:15:55.800] Rep. Sarah Jane I. Elago** (h2r5-turn-001957) Per meal sa ating mga kababayan? **[02:15:57.820] Rep. Sarah Jane I. Elago** (h2r5-turn-001958) Yung matutugunan yung kanilang mga basic nutritional requirements? **[02:16:02.000] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001959) ... **[02:16:04.960] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001960) For NCR, it's 554 per day. **[02:16:10.720] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001961) ... **[02:16:10.890] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001962) But **[02:16:11.230] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001963) let me **[02:16:11.400] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001964) stress again, **[02:16:14.680] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001965) Mr. **[02:16:16.160] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001966) Chair, because this has been pointed out so many times, that **[02:16:20.020] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001967) the intention of this **[02:16:23.940] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001968) poverty line was **[02:16:26.400] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001969) to monitor the progress we are making in **[02:16:29.940] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001970) reducing poverty from year to year, even **[02:16:33.000] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001971) as we adjust the norm for **[02:16:36.260] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001972) inflation. **[02:16:37.980] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001973) That's the only purpose. So that we can, **[02:16:41.320] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001974) we'll be able to say whether **[02:16:44.380] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001975) we are making progress in reducing poverty, whether our programs and projects and policies are able to reduce poverty. **[02:16:54.000] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001976) Union, **[02:16:54.860] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001977) and incidentally, **[02:16:57.200] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001978) Mr. Chair, the the the **[02:16:59.500] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001979) norm, **[02:17:02.500] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001980) regardless of, actually, if you can adapt a higher norm, if that's the point, **[02:17:08.020] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001981) you can adapt a higher norm, **[02:17:10.120] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001982) higher poverty threshold, **[02:17:12.620] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001983) or even lower. **[02:17:14.500] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001984) But if you apply that **[02:17:16.820] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001985) consistently **[02:17:18.440] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001986) over time, and here we are talking about **[02:17:22.700] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001987) the time from 2021 to **[02:17:26.640] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001988) 2025, **[02:17:28.820] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001989) all these thresholds **[02:17:30.400] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001990) would lead, would show a decrease in in **[02:17:34.360] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001991) poverty. **[02:17:35.940] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001992) And that's the whole exercise. It's not so much to say **[02:17:40.580] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001993) that a **[02:17:42.340] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001994) threshold like 554 is enough to **[02:17:48.600] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001995) meet **[02:17:49.320] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001996) a a decent **[02:17:52.600] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-001997) living. **[02:17:54.620] Rep. Sarah Jane I. Elago** (h2r5-turn-001998) Yes, Mr. Chair, just to clarify, 554, sana hindi na po mabawas sa time ko, 554 is for a family of five na **[02:18:01.200] Rep. Sarah Jane I. Elago** (h2r5-turn-001999) ginagamit po natin sa datos na ito. **[02:18:03.360] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002000) For a family of five. **[02:18:05.093] Rep. Sarah Jane I. Elago** (h2r5-turn-002001) OK, maraming salamat Mr. Chair. Ngayon po **[02:18:07.340] Rep. Sarah Jane I. Elago** (h2r5-turn-002002) Nakasaad ho dun sa report ng DepDev din na isa sa ating long-term measures ay pag-posisyon sa Pilipinas bilang AI manufacturing hub. **[02:18:16.180] Rep. Sarah Jane I. Elago** (h2r5-turn-002003) Sa plano na ito, kasama po ba ang US-led Pax Silica initiative? **[02:18:23.150] Rep. Sarah Jane I. Elago** (h2r5-turn-002004) At dito, Mr. Chair, matanong na rin ho natin ang DOF at ibang **[02:18:27.990] Rep. Sarah Jane I. Elago** (h2r5-turn-002005) agencies kung magkano ang gagastusin natin sa **[02:18:31.530] Rep. Sarah Jane I. Elago** (h2r5-turn-002006) plano na may kinalaman dito sa ngayon. **[02:18:35.850] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002007) Itong, again, to put this in context, Mr. Chair, I **[02:18:40.270] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002008) said this morning that we need to **[02:18:42.510] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002009) mobilize other drivers of growth, particularly out **[02:18:46.970] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002010) of **[02:18:47.870] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002011) to complement services. And here, I stress **[02:18:52.410] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002012) industry, industry **[02:18:54.590] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002013) and revitalizing agriculture. **[02:18:57.990] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002014) Now, **[02:18:59.810] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002015) if Pax Silica is intended to do that, or could help achieve that, then that's good. **[02:19:06.670] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002016) And so far as we know, **[02:19:08.450] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002017) and by the way, this **[02:19:12.170] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002018) initiative is a very young one. It became only **[02:19:18.250] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002019) known to us, I think we just joined last December. **[02:19:24.390] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002020) So, it is a **[02:19:27.990] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002021) concept in, **[02:19:29.570] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002022) that's evolving. **[02:19:31.570] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002023) And the representation of the relevant agencies to us is that **[02:19:40.750] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002024) the intention is to attract **[02:19:46.030] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002025) industries that deliver higher value to our **[02:19:49.950] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002026) goods and services, particularly for **[02:19:55.710] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002027) advanced technologies like conductors and electronics. **[02:20:00.090] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002028) And **[02:20:00.630] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002029) that is very consistent with what I was saying earlier, that we need to attract industries that bring **[02:20:08.910] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002030) the quality of jobs higher. **[02:20:11.590] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002031) Because that, in the longer term, is the only one, is the **[02:20:15.900] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002032) single most effective way of raising living **[02:20:19.050] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002033) standards, especially for our workers. **[02:20:23.240] Rep. Sarah Jane I. Elago** (h2r5-turn-002034) Yes, Mr. Chair. Ah, hindi pa po nasagot po yung tanong ko. Sana hindi po mabawa sa oras. Nagtanong po ako kung meron pong budget requirement for this year. **[02:20:32.940] Rep. Sarah Jane I. Elago** (h2r5-turn-002035) Halimbawa po, nababanggit niyo po sa mga pahayag. **[02:20:36.200] Rep. Sarah Jane I. Elago** (h2r5-turn-002036) Halimbawa ang BCDA ay **[02:20:40.280] Rep. Sarah Jane I. Elago** (h2r5-turn-002037) merong, kumbaga, role pagdating po sa pagtitiyak ng property na gagamitin for this initiative. **[02:20:47.500] Rep. Sarah Jane I. Elago** (h2r5-turn-002038) Can we ask DBM? **[02:20:50.380] DOF Secretary Frederick D. Go** (h2r5-turn-002039) Mr. Chair. **[02:20:51.560] DOF Secretary Frederick D. Go** (h2r5-turn-002040) Can I take the question? **[02:20:52.460] Rep. Albert S. Garcia** (h2r5-turn-002041) Okay. **[02:20:53.260] Rep. Albert S. Garcia** (h2r5-turn-002042) Yes. Please go ahead, **[02:20:55.500] Rep. Albert S. Garcia** (h2r5-turn-002043) SecDec. **[02:20:55.960] DOF Secretary Frederick D. Go** (h2r5-turn-002044) Yeah. **[02:20:56.220] DOF Secretary Frederick D. Go** (h2r5-turn-002045) I think I think **[02:20:59.220] DOF Secretary Frederick D. Go** (h2r5-turn-002046) there's to be to clarify, **[02:21:04.060] DOF Secretary Frederick D. Go** (h2r5-turn-002047) if indeed an industrial hub will be built in New Clark City, **[02:21:09.760] DOF Secretary Frederick D. Go** (h2r5-turn-002048) there is no budget requirement from us. They will pay us rent. **[02:21:13.400] DOF Secretary Frederick D. Go** (h2r5-turn-002049) So it is a revenue enhancing project. **[02:21:16.720] DOF Secretary Frederick D. Go** (h2r5-turn-002050) I I'm **[02:21:18.500] DOF Secretary Frederick D. Go** (h2r5-turn-002051) not aware of any budget **[02:21:21.500] DOF Secretary Frederick D. Go** (h2r5-turn-002052) requirement that it might entail. **[02:21:24.780] Rep. Sarah Jane I. Elago** (h2r5-turn-002053) Mr. Chair, ang BCDA ho ang magiging property manager nito. As you said, multiple times. So as the property manager, of course, it would also entail **[02:21:32.940] Rep. Sarah Jane I. Elago** (h2r5-turn-002054) personnel and other, **[02:21:37.380] Rep. Sarah Jane I. Elago** (h2r5-turn-002055) meron din pong mga kaugnay na conversion, halimbawa, **[02:21:40.520] Rep. Sarah Jane I. Elago** (h2r5-turn-002056) ng lands na gagamitin for this particular use. **[02:21:44.900] DOF Secretary Frederick D. Go** (h2r5-turn-002057) Your Honor, Mr. Chair, I think in a normal business condition, **[02:21:49.040] DOF Secretary Frederick D. Go** (h2r5-turn-002058) you should not be spending more than you earn, right? So I think I **[02:21:53.100] DOF Secretary Frederick D. Go** (h2r5-turn-002059) think definitely the revenue should far outweigh **[02:21:57.160] DOF Secretary Frederick D. Go** (h2r5-turn-002060) any project management expense, like in any other real estate venture. **[02:22:02.680] Rep. Sarah Jane I. Elago** (h2r5-turn-002061) Yes. So sa ngayon, wala pong masasagot pa sa atin dito. Thank you. **[02:22:05.906] Rep. Albert S. Garcia** (h2r5-turn-002062) Last question na po, Congresswoman Sara. **[02:22:08.520] Rep. Sarah Jane I. Elago** (h2r5-turn-002063) Mr. Chair, how about sa DICT? **[02:22:10.380] Rep. Sarah Jane I. Elago** (h2r5-turn-002064) Sa DICT, kasi hindi po nasasagot talaga yung tanong. Sinasabi din na pwede yung revenues can far outweigh kung ano man po na **[02:22:18.220] Rep. Sarah Jane I. Elago** (h2r5-turn-002065) ma-offset man kung ano yung mga particular budget requirements, kung meron man na ilalabas. Pero gusto po natin mahinag na tayo. At **[02:22:26.420] Rep. Sarah Jane I. Elago** (h2r5-turn-002066) dadalhin po natin yung discussion sa BCDA once they're here. **[02:22:30.400] Rep. Sarah Jane I. Elago** (h2r5-turn-002067) Mainam po. **[02:22:31.620] Rep. Sarah Jane I. Elago** (h2r5-turn-002068) Pati po sa DICT, may nakita po kaming malaking jump sa kanilang digital infrastructure development and management. **[02:22:39.460] Rep. Sarah Jane I. Elago** (h2r5-turn-002069) Yung **[02:22:40.140] Rep. Sarah Jane I. Elago** (h2r5-turn-002070) pondo nila from 502 million last year to 1.3 trillion pesos next year. **[02:22:45.720] Rep. Sarah Jane I. Elago** (h2r5-turn-002071) Meron po bang kinalaman itong development ng AI manufacturing hub? **[02:22:53.120] Rep. Sarah Jane I. Elago** (h2r5-turn-002072) Nakalagak po ang pondo sa DICT o wala? **[02:22:56.420] Rep. Albert S. Garcia** (h2r5-turn-002073) Thank you, Congresswoman Sara. That will be the last question. Sec Dec, please reply. **[02:23:00.420] DOF Secretary Frederick D. Go** (h2r5-turn-002074) To my knowledge, nothing. But you should confirm with DICT po. **[02:23:03.560] DOF Secretary Frederick D. Go** (h2r5-turn-002075) But I don't think... Ma'am, can I just clarify? This **[02:23:07.180] DOF Secretary Frederick D. Go** (h2r5-turn-002076) industrial hub is a proposed industrial hub. So, one thing's for sure. There's nothing in the budget that **[02:23:16.300] DOF Secretary Frederick D. Go** (h2r5-turn-002077) will spend for this proposed industrial hub because nothing has been signed po. **[02:23:22.280] DOF Secretary Frederick D. Go** (h2r5-turn-002078) So, it's still a **[02:23:25.080] DOF Secretary Frederick D. Go** (h2r5-turn-002079) discussion. **[02:23:26.300] DOF Secretary Frederick D. Go** (h2r5-turn-002080) So, I'm pretty sure the DBM will not put any budget line item, expense line item for a **[02:23:33.630] DOF Secretary Frederick D. Go** (h2r5-turn-002081) for **[02:23:33.900] DOF Secretary Frederick D. Go** (h2r5-turn-002082) a something that is in very preliminary **[02:23:37.670] DOF Secretary Frederick D. Go** (h2r5-turn-002083) discussion. **[02:23:39.630] Rep. Albert S. Garcia** (h2r5-turn-002084) Thank you. **[02:23:40.480] Rep. Albert S. Garcia** (h2r5-turn-002085) Thank you. **[02:23:41.600] Rep. Sarah Jane I. Elago** (h2r5-turn-002086) Isa na lang kasi wala pa daw po **[02:23:44.080] Rep. Sarah Jane I. Elago** (h2r5-turn-002087) napirmahan. **[02:23:46.160] Rep. Albert S. Garcia** (h2r5-turn-002088) Very briefly, please. **[02:23:47.410] Rep. Sarah Jane I. Elago** (h2r5-turn-002088-split-2) Yes, Mr. Chair. **[02:23:49.060] Rep. Sarah Jane I. Elago** (h2r5-turn-002089) Ah na-raise ko itong concern na ito kasi nagpapakita siguro ng urgency at necessity na pagtalakay din sa mga resolusyon na **[02:23:56.160] Rep. Sarah Jane I. Elago** (h2r5-turn-002090) kaugnay sa mga commitment ng Pilipinas sa Pax Silica initiative. At may sa... Last, Mr. Chair, may sasabihin daw po yung DBM. Baka pwede po natin pakinggan tungkol sa matter na ito. **[02:24:06.240] Rep. Albert S. Garcia** (h2r5-turn-002091) Just go ahead. **[02:24:11.170] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002091-split-2) Mr. Chair, just wanted... Just wanted to confirm na wala pong any allocation in the NEP intended for Pax Silica. The amounts mentioned by the good Congresswoman under DICT is **[02:24:16.100] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002092) intended for the implementation of a new mandate under a law enacted by Congress which is the E-Government Law, Your Honor. **[02:24:23.300] Rep. Albert S. Garcia** (h2r5-turn-002093) Okay. **[02:24:23.880] Rep. Albert S. Garcia** (h2r5-turn-002094) Thank you. **[02:24:25.600] Rep. Albert S. Garcia** (h2r5-turn-002095) Maraming salamat, Congresswoman Sara. **[02:24:27.820] Rep. Albert S. Garcia** (h2r5-turn-002096) Thank you very much, Sec. Kim and Sec. Dec. **[02:24:32.180] Rep. Albert S. Garcia** (h2r5-turn-002097) We now move to the next **[02:24:37.200] Rep. Albert S. Garcia** (h2r5-turn-002098) colleague that will ask questions just in time. **[02:24:41.620] Rep. Albert S. Garcia** (h2r5-turn-002099) Nandito po si... May we call on Congresswoman... Ah, Congressman Rufus Rodriguez. **[02:24:47.180] Rep. Rufus B. Rodriguez** (h2r5-turn-002100) Thank you, **[02:24:48.100] Rep. Rufus B. Rodriguez** (h2r5-turn-002101) Mr. **[02:24:48.760] Rep. Rufus B. Rodriguez** (h2r5-turn-002102) Chairman. **[02:24:50.660] Rep. Rufus B. Rodriguez** (h2r5-turn-002103) Distinguished colleagues and our resource persons for today, the **[02:24:55.580] Rep. Rufus B. Rodriguez** (h2r5-turn-002104) members of the Development Budget **[02:24:58.360] Rep. Rufus B. Rodriguez** (h2r5-turn-002105) Coordinating Committee. We **[02:25:01.040] Rep. Rufus B. Rodriguez** (h2r5-turn-002106) should now change that. **[02:25:02.360] Rep. Rufus B. Rodriguez** (h2r5-turn-002107) The development is **[02:25:04.560] Rep. Rufus B. Rodriguez** (h2r5-turn-002108) not needed. Surplus age. We always work for the development of the country for **[02:25:08.740] Rep. Rufus B. Rodriguez** (h2r5-turn-002109) the budget. **[02:25:09.340] Rep. Rufus B. Rodriguez** (h2r5-turn-002110) We should now rename it **[02:25:10.740] Rep. Rufus B. Rodriguez** (h2r5-turn-002111) as National Budget **[02:25:12.580] Rep. Rufus B. Rodriguez** (h2r5-turn-002112) Coordinating Committee. **[02:25:14.920] Rep. Rufus B. Rodriguez** (h2r5-turn-002113) Correct? **[02:25:16.100] Rep. Rufus B. Rodriguez** (h2r5-turn-002114) Don't **[02:25:16.407] Rep. Rufus B. Rodriguez** (h2r5-turn-002115) you agree? **[02:25:18.480] Rep. Rufus B. Rodriguez** (h2r5-turn-002116) Because the development budget, **[02:25:20.740] Rep. Rufus B. Rodriguez** (h2r5-turn-002117) this is awful development. **[02:25:22.640] Rep. Rufus B. Rodriguez** (h2r5-turn-002118) Did you agree, Sec. Go? **[02:25:25.160] Rep. Rufus B. Rodriguez** (h2r5-turn-002119) Yeah. I'm sorry. But tagal na ako dito eh. Six terms na. Puro development budget. There's you know, surplus age because we're all working, especially the budget, for the development of our beloved country. Correct, Mr. Chairman? **[02:25:39.140] Rep. Albert S. Garcia** (h2r5-turn-002120) You're absolutely correct, Your Honor. **[02:25:41.295] Rep. Rufus B. Rodriguez** (h2r5-turn-002120-split-2) Thank you. So **[02:25:41.888] Rep. Rufus B. Rodriguez** (h2r5-turn-002121) in the next hearing next year, we should call it the National **[02:25:48.060] Rep. Rufus B. Rodriguez** (h2r5-turn-002122) Budget Coordinating Committee. **[02:25:50.200] Rep. Rufus B. Rodriguez** (h2r5-turn-002123) Okay. **[02:25:50.980] Rep. Rufus B. Rodriguez** (h2r5-turn-002124) Now, I hope that will not be taken against my time. **[02:25:54.440] Rep. Albert S. Garcia** (h2r5-turn-002125) Second **[02:25:55.040] Rep. Albert S. Garcia** (h2r5-turn-002126) the motion, Mr. Chair. **[02:25:57.560] Rep. Rufus B. Rodriguez** (h2r5-turn-002127) Sec. Balisacan, Dep Dev, good afternoon. **[02:26:00.700] Rep. Rufus B. Rodriguez** (h2r5-turn-002128) Sec. Kim De Leon, DBM, **[02:26:03.000] Rep. Rufus B. Rodriguez** (h2r5-turn-002129) Sec. Frederick Go of Department of Finance, our outstanding Europe Customs Commissioner, Ariel Fernandez, and this very good gentleman who is now the man of the hour because **[02:26:16.840] Rep. Rufus B. Rodriguez** (h2r5-turn-002130) of the income tax return, **[02:26:20.810] Rep. Rufus B. Rodriguez** (h2r5-turn-002131) Commissioner Mendoza, lawyer, a great lawyer, and of course, Yusec Adriano, always, you know, very outstanding in our hearings, especially because he always wants to increase very exorbitant **[02:26:34.890] Rep. Rufus B. Rodriguez** (h2r5-turn-002132) taxes. **[02:26:36.120] Rep. Rufus B. Rodriguez** (h2r5-turn-002133) But anyway, and then of course, Deputy Governor Zeno Abinoha, and all our resource persons. **[02:26:44.720] Rep. Rufus B. Rodriguez** (h2r5-turn-002134) My answer, my question is pertaining to page 12. **[02:26:49.600] Rep. Rufus B. Rodriguez** (h2r5-turn-002135) Of **[02:26:50.160] Rep. Rufus B. Rodriguez** (h2r5-turn-002136) the National Expenditure Program, page 12, if you can look at it, **[02:26:55.490] Rep. Rufus B. Rodriguez** (h2r5-turn-002137) fiscal year 2027 proposed budget by region. I represent **[02:27:02.110] Rep. Rufus B. Rodriguez** (h2r5-turn-002138) Cagayan de Oro, the city of golden friendship in **[02:27:06.030] Rep. Rufus B. Rodriguez** (h2r5-turn-002139) Mindanao, the **[02:27:07.170] Rep. Rufus B. Rodriguez** (h2r5-turn-002140) land of **[02:27:08.690] Rep. Rufus B. Rodriguez** (h2r5-turn-002141) is being fulfilled already, the promise. **[02:27:11.430] Rep. Rufus B. Rodriguez** (h2r5-turn-002142) But this will show that it is still a land of promise. **[02:27:15.410] Rep. Rufus B. Rodriguez** (h2r5-turn-002143) Mr. Chairman, you know why? Let **[02:27:17.730] Rep. Rufus B. Rodriguez** (h2r5-turn-002144) us take a look. **[02:27:20.280] Rep. Rufus B. Rodriguez** (h2r5-turn-002145) We have the budget per region, **[02:27:23.920] Rep. Rufus B. Rodriguez** (h2r5-turn-002146) and the share. **[02:27:25.940] Rep. Rufus B. Rodriguez** (h2r5-turn-002147) NCR, which **[02:27:27.740] Rep. Rufus B. Rodriguez** (h2r5-turn-002148) is very much developed, **[02:27:29.160] Rep. Rufus B. Rodriguez** (h2r5-turn-002149) receives 15.4 percent of **[02:27:31.960] Rep. Rufus B. Rodriguez** (h2r5-turn-002150) the pie, **[02:27:32.620] Rep. Rufus B. Rodriguez** (h2r5-turn-002151) the 7.2. **[02:27:34.480] Rep. Rufus B. Rodriguez** (h2r5-turn-002152) Balance rubles on the more, **[02:27:36.700] Rep. Rufus B. Rodriguez** (h2r5-turn-002153) 23 percent. **[02:27:38.940] Rep. Rufus B. Rodriguez** (h2r5-turn-002154) Mindanao, Mr. Chairman, is only 15.1 percent. **[02:27:43.040] Rep. Rufus B. Rodriguez** (h2r5-turn-002155) And you see, Mindanao has a population of 27 million, or 22.3 percent of **[02:27:50.520] Rep. Rufus B. Rodriguez** (h2r5-turn-002156) our population of the Republic of the Philippines. **[02:27:53.960] Rep. Rufus B. Rodriguez** (h2r5-turn-002157) And **[02:27:55.980] Rep. Rufus B. Rodriguez** (h2r5-turn-002158) Mindanao, through our pineapples, coconut, corn, and all the products, even mining, **[02:28:02.360] Rep. Rufus B. Rodriguez** (h2r5-turn-002159) gives 18 to 19 percent of the gross national product, 18 to 19. **[02:28:08.580] Rep. Rufus B. Rodriguez** (h2r5-turn-002160) Population, **[02:28:10.060] Rep. Rufus B. Rodriguez** (h2r5-turn-002161) 22.3 percent. **[02:28:12.340] Rep. Rufus B. Rodriguez** (h2r5-turn-002162) And the recent **[02:28:13.740] Rep. Rufus B. Rodriguez** (h2r5-turn-002163) Philippine Statistics Authority, Mr. Chairman, **[02:28:17.180] Rep. Rufus B. Rodriguez** (h2r5-turn-002164) on the 10 poorest provinces of the country, **[02:28:22.260] Rep. Rufus B. Rodriguez** (h2r5-turn-002165) list Mindanao 7 out of 10. Very poor. The first 6 **[02:28:28.020] Rep. Rufus B. Rodriguez** (h2r5-turn-002166) Mindanao provinces. **[02:28:31.220] Rep. Rufus B. Rodriguez** (h2r5-turn-002167) So, Mr. Chairman, **[02:28:33.400] Rep. Rufus B. Rodriguez** (h2r5-turn-002168) I'm just going to ask, **[02:28:35.260] Rep. Rufus B. Rodriguez** (h2r5-turn-002169) there is still a chance, I don't know how we are going to address the issue, and **[02:28:40.920] Rep. Rufus B. Rodriguez** (h2r5-turn-002170) who will answer this question. I think we could ask each one. **[02:28:44.680] Rep. Rufus B. Rodriguez** (h2r5-turn-002171) Because the four of the National **[02:28:47.780] Rep. Rufus B. Rodriguez** (h2r5-turn-002172) Budget Coordinating Council **[02:28:49.780] Rep. Rufus B. Rodriguez** (h2r5-turn-002173) Committee, because if you will look here, you know, **[02:28:52.740] Rep. Rufus B. Rodriguez** (h2r5-turn-002174) 15.1. **[02:28:54.340] Rep. Rufus B. Rodriguez** (h2r5-turn-002175) Malayo sa GDP contribution ng 18 percent. **[02:28:58.180] Rep. Rufus B. Rodriguez** (h2r5-turn-002176) Malayo sa population ng 22.3. Malayo, Mr. Chairman. **[02:29:02.940] Rep. Rufus B. Rodriguez** (h2r5-turn-002177) sa poorest **[02:29:04.360] Rep. Rufus B. Rodriguez** (h2r5-turn-002178) poorest provinces of the Philippines, there has to be affirmative action for Mindanao. I appeal, therefore, to **[02:29:11.040] Rep. Rufus B. Rodriguez** (h2r5-turn-002179) this National Budget Coordinating Committee to **[02:29:14.900] Rep. Rufus B. Rodriguez** (h2r5-turn-002180) take a look again on how we are able to improve the **[02:29:20.000] Rep. Rufus B. Rodriguez** (h2r5-turn-002181) 15 percent Four **[02:29:22.180] Rep. Rufus B. Rodriguez** (h2r5-turn-002182) of years Mindanao. ago, Four years 16 ago, percent na. **[02:29:24.740] Rep. Rufus B. Rodriguez** (h2r5-turn-002183) Panahon ni President President GMA, like nag 17 percent na, because the biggest budget for infrastructure under GMA was Mindanao. **[02:29:33.500] Rep. Rufus B. Rodriguez** (h2r5-turn-002184) That's why medyo na, simento na doon, malaking development. So now, I'd like to ask, starting from our gentleman, from of course, the DepDev, **[02:29:43.760] Rep. Rufus B. Rodriguez** (h2r5-turn-002185) please Please tell us, why only 15.1? And the figures show the contribution of the people of Mindanao to **[02:29:52.860] Rep. Rufus B. Rodriguez** (h2r5-turn-002186) our country. **[02:29:54.360] Rep. Rufus B. Rodriguez** (h2r5-turn-002187) Thank you, Mr. Chairman. **[02:29:57.240] Rep. Albert S. Garcia** (h2r5-turn-002188) Thank you, Cong. Rufus. May we request Sec. Kim to **[02:30:03.000] Rep. Albert S. Garcia** (h2r5-turn-002189) to answer? **[02:30:05.410] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002190) Mr. Chair, your Honor, while we took took note of the observation of the good **[02:30:12.290] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002191) good congressman, **[02:30:13.010] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002192) we would like to submit that, number one, we continue **[02:30:17.110] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002193) to work on improving the regional allocation of the budget by, one, working with DepDev, on **[02:30:22.690] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002194) putting premium on the **[02:30:24.270] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002195) projects endorsed by the regional development councils, improving the linkage between budgeting and planning, Two, as we have discussed a while ago. **[02:30:32.970] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002196) Second, we are actually discussing right now, your Honor, because one factor is still the presence of non **[02:30:38.950] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002197) -regionalized budget items. So this means these are probably items **[02:30:43.190] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002198) lodged within the respective central offices or **[02:30:46.290] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002199) probably lump sum funds, some of which might be intended really for areas like Visayas and Mindanao, which cannot be attributed during the preparation of So the NEP. So that's also something that **[02:30:58.970] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002200) we can look at. to improve as well the allocation for Mindanao. **[02:31:03.210] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002201) But we would just like to manifest and add, because the slide we presented this morning did **[02:31:08.570] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002202) not include a comparative from last year. **[02:31:11.330] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002203) As a matter of fact, Your Honor, Mr. Chair, **[02:31:14.190] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002204) outside NCR, the average increase **[02:31:17.070] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002205) from 2026 to 2027 is actually the highest average **[02:31:23.190] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002206) in Mindanao. **[02:31:24.270] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002207) So we actually saw a... Particularly, for instance, to the good representatives, our region actually **[02:31:33.030] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002208) had an increase of 10.6 as **[02:31:36.630] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002209) compared to the 2026 level. But this is a work in progress, Your Honor. We will continue to make the necessary evaluation **[02:31:44.650] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002210) of how budgets can be more presented accurately in terms of their **[02:31:49.070] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002211) intended regional beneficiaries. Because as I have said a while ago, **[02:31:53.670] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002212) there are still centrally managed items. Or those lodged within the respective central **[02:31:58.570] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002213) offices, which may be actually intended to be distributed **[02:32:01.890] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002214) across the regions during implementation, Your Honor. **[02:32:05.770] Rep. Rufus B. Rodriguez** (h2r5-turn-002215) Three reasons given by the Honorable Kim de Leon, **[02:32:09.070] Rep. Rufus B. Rodriguez** (h2r5-turn-002216) a very young DBM. **[02:32:11.230] Rep. Rufus B. Rodriguez** (h2r5-turn-002217) And so he wouldn't tell a lie because only us old people has **[02:32:15.810] Rep. Rufus B. Rodriguez** (h2r5-turn-002218) been used to, you know, giving half-truths. **[02:32:18.470] Rep. Rufus B. Rodriguez** (h2r5-turn-002219) So, **[02:32:19.110] Rep. Rufus B. Rodriguez** (h2r5-turn-002220) Secretary Kim, **[02:32:21.830] Rep. Rufus B. Rodriguez** (h2r5-turn-002221) you said that **[02:32:23.350] Rep. Rufus B. Rodriguez** (h2r5-turn-002222) you only depend on **[02:32:25.230] Rep. Rufus B. Rodriguez** (h2r5-turn-002223) the submission. **[02:32:26.390] Rep. Rufus B. Rodriguez** (h2r5-turn-002224) From the RDC and the other **[02:32:28.510] Rep. Rufus B. Rodriguez** (h2r5-turn-002225) agencies. **[02:32:29.950] Rep. Rufus B. Rodriguez** (h2r5-turn-002226) We should be proactive. **[02:32:32.540] Rep. Rufus B. Rodriguez** (h2r5-turn-002227) We should be... The DBM should go out of its way to **[02:32:36.030] Rep. Rufus B. Rodriguez** (h2r5-turn-002228) be able to ask and to be able to secure documents from Mindanao. Malayo kasi kami. So, matagal dumating yung mga request dito. **[02:32:44.970] Rep. Rufus B. Rodriguez** (h2r5-turn-002229) It's too expensive for Mindanao people to come here. That's number one, **[02:32:48.750] Rep. Rufus B. Rodriguez** (h2r5-turn-002230) in answer to your, you know, comment. **[02:32:51.980] Rep. Rufus B. Rodriguez** (h2r5-turn-002231) The second one is lamsam. Precisely, huwag na tayo maglalamsam. **[02:32:56.390] Rep. Rufus B. Rodriguez** (h2r5-turn-002232) Kasi alam mo, lamsam becomes the pork barrel of the secretaries. **[02:33:02.460] Rep. Rufus B. Rodriguez** (h2r5-turn-002233) Yeah. **[02:33:03.270] Rep. Rufus B. Rodriguez** (h2r5-turn-002234) Sinong malapit secretary of, hindi ko naman i-mention. **[02:33:07.030] Rep. Rufus B. Rodriguez** (h2r5-turn-002235) Sinong malapit nun, yun makakuha na maraming share. All our cabinet members are from Luzon. **[02:33:13.810] Rep. Rufus B. Rodriguez** (h2r5-turn-002236) So, **[02:33:14.410] Rep. Rufus B. Rodriguez** (h2r5-turn-002237) walang chance kami sa Mindanao. **[02:33:17.650] Rep. Rufus B. Rodriguez** (h2r5-turn-002238) Oh, kaya na mo, **[02:33:19.190] Rep. Rufus B. Rodriguez** (h2r5-turn-002239) don't look **[02:33:20.130] Rep. Rufus B. Rodriguez** (h2r5-turn-002240) at the line agencies. So, yung lamsam, na-favor na naman ang mayayam. Naman ang mga **[02:33:26.990] Rep. Rufus B. Rodriguez** (h2r5-turn-002241) probinsya sa Luzon. **[02:33:29.710] Rep. Rufus B. Rodriguez** (h2r5-turn-002242) In fact, Visayas, you **[02:33:32.010] Rep. Rufus B. Rodriguez** (h2r5-turn-002243) know, very pithy. You know, Visayas, only **[02:33:34.070] Rep. Rufus B. Rodriguez** (h2r5-turn-002244) 10%. **[02:33:36.230] Rep. Rufus B. Rodriguez** (h2r5-turn-002245) But I will not complain on **[02:33:38.310] Rep. Rufus B. Rodriguez** (h2r5-turn-002246) this because we have congressmen here. **[02:33:40.450] Rep. Rufus B. Rodriguez** (h2r5-turn-002247) From the Visayas who should be able to complain. **[02:33:43.630] Rep. Rufus B. Rodriguez** (h2r5-turn-002248) Mine is Mindanao. **[02:33:44.910] Rep. Rufus B. Rodriguez** (h2r5-turn-002249) So, yung lamsam, **[02:33:46.170] Rep. Rufus B. Rodriguez** (h2r5-turn-002250) DBM Secretary Kim, you're young, you're new. **[02:33:49.830] Rep. Rufus B. Rodriguez** (h2r5-turn-002251) So, huwag na natin yung the old system. **[02:33:53.070] Rep. Rufus B. Rodriguez** (h2r5-turn-002252) Ibigyan natin affirmative action. You know what I say? Continue. Mindanao will continue to be poor. 7 out of 10 provinces. That next 3 are in the Visayas. **[02:34:03.590] Rep. Rufus B. Rodriguez** (h2r5-turn-002253) So, yan ang request ko. **[02:34:05.490] Rep. Rufus B. Rodriguez** (h2r5-turn-002254) Okay. So, that is why these are in answer to your statements. But I like the word, work in progress. **[02:34:13.690] Rep. Rufus B. Rodriguez** (h2r5-turn-002255) Because there is a chance, **[02:34:15.470] Rep. Rufus B. Rodriguez** (h2r5-turn-002256) before the HGAB, **[02:34:18.150] Rep. Rufus B. Rodriguez** (h2r5-turn-002257) the HGAB is approved that **[02:34:20.630] Rep. Rufus B. Rodriguez** (h2r5-turn-002258) you are going to increase this to **[02:34:22.650] Rep. Rufus B. Rodriguez** (h2r5-turn-002259) 20%. **[02:34:24.510] Rep. Rufus B. Rodriguez** (h2r5-turn-002260) That is, we met. **[02:34:26.390] Rep. Rufus B. Rodriguez** (h2r5-turn-002261) In, Mr. **[02:34:27.690] Rep. Rufus B. Rodriguez** (h2r5-turn-002262) Chairman. **[02:34:28.370] Rep. Rufus B. Rodriguez** (h2r5-turn-002263) We met. Yes, I **[02:34:30.010] Rep. Rufus B. Rodriguez** (h2r5-turn-002264) will wind up. **[02:34:31.230] Rep. Rufus B. Rodriguez** (h2r5-turn-002265) We met at Usami City. All the 6 regional development councils from the BARM, **[02:34:39.470] Rep. Rufus B. Rodriguez** (h2r5-turn-002266) from regions 9 to 13. **[02:34:42.150] Rep. Rufus B. Rodriguez** (h2r5-turn-002267) 6. **[02:34:43.690] Rep. Rufus B. Rodriguez** (h2r5-turn-002268) We passed a resolution. I don't know if the DBM got a copy of this because I'm going to ask Secretary Balisakan, you received that because that was the RDC. **[02:34:53.470] Rep. Rufus B. Rodriguez** (h2r5-turn-002269) The 6 regions. Mindanao met the **[02:34:57.990] Rep. Rufus B. Rodriguez** (h2r5-turn-002270) directors, the heads of the officers of the RDC. 6 of the regions, all represented there. **[02:35:06.670] Rep. Rufus B. Rodriguez** (h2r5-turn-002271) And what did we pass? **[02:35:08.670] Rep. Rufus B. Rodriguez** (h2r5-turn-002272) We passed a resolution requesting **[02:35:11.510] Rep. Rufus B. Rodriguez** (h2r5-turn-002273) the national government to **[02:35:14.130] Rep. Rufus B. Rodriguez** (h2r5-turn-002274) at least give 20 **[02:35:16.250] Rep. Rufus B. Rodriguez** (h2r5-turn-002275) man lang. **[02:35:17.270] Rep. Rufus B. Rodriguez** (h2r5-turn-002276) So that, you know, **[02:35:18.630] Rep. Rufus B. Rodriguez** (h2r5-turn-002277) Mindanao is part of the Philippines. Are we? **[02:35:21.830] Rep. Rufus B. Rodriguez** (h2r5-turn-002278) Yeah, we're very much part of the Philippines. Pero over the years, yun lang ang magbigay sa amin. So we passed unanimously all the officers of the 6 RDCs. Secretary Balisakan, did you receive that? **[02:35:37.990] Rep. Rufus B. Rodriguez** (h2r5-turn-002279) That we just asked. **[02:35:39.450] Rep. Albert S. Garcia** (h2r5-turn-002279-split-2) That will **[02:35:40.090] Rep. Albert S. Garcia** (h2r5-turn-002280) be the last question. **[02:35:43.010] Rep. Rufus B. Rodriguez** (h2r5-turn-002281) That will be second to the last question. Thank you. **[02:35:44.230] Rep. Albert S. Garcia** (h2r5-turn-002282) Time is up na po. Pwede pa naman next round. **[02:35:47.510] Rep. Albert S. Garcia** (h2r5-turn-002283) Thank you, Cong. Rufus. Sec. Arsi, please reply. **[02:35:52.010] Rep. Rufus B. Rodriguez** (h2r5-turn-002284) Yeah, did you receive our **[02:35:53.330] Rep. Albert S. Garcia** (h2r5-turn-002285) Secretary of DepDev **[02:35:56.790] Rep. Rufus B. Rodriguez** (h2r5-turn-002286) This resolution from six, all the regions of Mindanao, 9 to 13 plus BARMM, requesting na maski 20 man lang. Malayo pa rin yan sa 25 or one-third. **[02:36:11.330] Rep. Rufus B. Rodriguez** (h2r5-turn-002287) Three regions, Luzon, Visayas, Mindanao. Malayo pa rin. But we can start with 20%. Pero 15.1, masyadong maliit. Yes, Secretary Balisacan. **[02:36:20.510] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002288) Yes, Mr. Chair, we confirm that we received the resolution. **[02:36:25.290] Rep. Rufus B. Rodriguez** (h2r5-turn-002289) So we expected you to be fighting it at all for us. But if you will allow me, Mr. Chair, to put some... **[02:36:30.550] Rep. Albert S. Garcia** (h2r5-turn-002289-split-2) Please answer Sec. Arsi **[02:36:31.410] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002290) Put **[02:36:31.970] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002291) context here. **[02:36:33.390] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002291-split-2) I think because it's a very important issue. **[02:36:38.470] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002292) It goes back to the prioritization issue and the **[02:36:43.350] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002293) translation of regional priorities to actual **[02:36:48.610] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002294) priorities **[02:36:50.170] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002295) as represented in the GAA. **[02:36:54.390] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002296) Please note that... Earlier, **[02:36:57.250] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002297) 50 of the RDC priorities are reflected in the NEP. **[02:37:02.930] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002298) Alright, 50%. But **[02:37:05.450] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002299) when it comes out in the SGA, only **[02:37:08.810] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002300) 30 to 35 of that now **[02:37:11.410] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002301) is **[02:37:12.210] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002302) consistent with **[02:37:13.130] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002303) regional priorities. So I **[02:37:17.010] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002304) guess there's something... **[02:37:18.190] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002305) It's not just the executive, **[02:37:19.770] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002306) Your **[02:37:23.910] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002307) Honor. I think that... Internally also, we have to have **[02:37:28.830] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002308) better coordination between the executive and the legislative as well. **[02:37:34.650] Rep. Albert S. Garcia** (h2r5-turn-002309) Okay, thank you for the reply, Sec. Arsi. **[02:37:38.810] Rep. Rufus B. Rodriguez** (h2r5-turn-002309-split-2) Yes, I now request for **[02:37:40.830] Rep. Rufus B. Rodriguez** (h2r5-turn-002310) the next round. **[02:37:42.150] Rep. Albert S. Garcia** (h2r5-turn-002311) Yes. **[02:37:42.610] Rep. Rufus B. Rodriguez** (h2r5-turn-002311-split-2) Thank **[02:37:43.250] Rep. Rufus B. Rodriguez** (h2r5-turn-002312) you, Mr. Chairman. **[02:37:44.490] Rep. Albert S. Garcia** (h2r5-turn-002313) Okay noted, Cong. Rufus. Maraming salamat po. **[02:37:50.090] Rep. Albert S. Garcia** (h2r5-turn-002314) We now go to the next colleague **[02:37:52.870] Rep. Albert S. Garcia** (h2r5-turn-002315) that will ask questions. **[02:37:55.550] Rep. Albert S. Garcia** (h2r5-turn-002316) May we call on... **[02:37:57.470] Rep. Albert S. Garcia** (h2r5-turn-002317) Rep. **[02:37:58.170] Rep. Albert S. Garcia** (h2r5-turn-002318) Sergio Dagooc. **[02:38:00.090] Rep. Albert S. Garcia** (h2r5-turn-002319) Sir, you have the floor. **[02:38:02.150] Rep. Sergio C. Dagooc** (h2r5-turn-002320) Thank you, Mr. Chair. **[02:38:04.530] Rep. Sergio C. Dagooc** (h2r5-turn-002321) Magandang hapon po sa ating lahat. **[02:38:08.050] Rep. Sergio C. Dagooc** (h2r5-turn-002322) Unang-una. **[02:38:10.290] Rep. Sergio C. Dagooc** (h2r5-turn-002323) Gusto ko lang bigyan ng ibang kahulugan yung sabi ni DBM **[02:38:15.530] Rep. Sergio C. Dagooc** (h2r5-turn-002324) Secretary kanina. Dapat ang budget **[02:38:17.630] Rep. Sergio C. Dagooc** (h2r5-turn-002325) makatao. **[02:38:19.760] Rep. Sergio C. Dagooc** (h2r5-turn-002326) So may **[02:38:21.150] Rep. Sergio C. Dagooc** (h2r5-turn-002327) mga proposals po ako dito. **[02:38:23.710] Rep. Sergio C. Dagooc** (h2r5-turn-002328) Dapat **[02:38:24.290] Rep. Sergio C. Dagooc** (h2r5-turn-002329) kayong nagbabudget, hindi manhid. **[02:38:27.570] Rep. Sergio C. Dagooc** (h2r5-turn-002330) Yung aim is hindi manhed. Kasi pang **[02:38:31.270] Rep. Sergio C. Dagooc** (h2r5-turn-002331) -pitong taon ko na dito, parang tinatapos lang natin yung hearing. After the hearing, walang nangyari doon sa mga proposals. **[02:38:39.670] Rep. Sergio C. Dagooc** (h2r5-turn-002332) So **[02:38:40.310] Rep. Sergio C. Dagooc** (h2r5-turn-002333) I would like to emphasize that **[02:38:45.370] Rep. Sergio C. Dagooc** (h2r5-turn-002334) baka pwedeng pagtuunan ninyo ng pansin sa DOF. **[02:38:51.780] Rep. Sergio C. Dagooc** (h2r5-turn-002335) Yung mga proposals, **[02:38:54.700] Rep. Sergio C. Dagooc** (h2r5-turn-002336) lalong-lalo na kami sa Ways and Means, yung taxes yun. I am very appreciative of the presentation ni... **[02:39:05.630] Rep. Sergio C. Dagooc** (h2r5-turn-002337) Kanina tong presentation? **[02:39:07.730] Rep. Sergio C. Dagooc** (h2r5-turn-002338) DBM ba to? **[02:39:11.930] Rep. Sergio C. Dagooc** (h2r5-turn-002339) Parang kay Secretary Arsi to. **[02:39:15.650] Rep. Sergio C. Dagooc** (h2r5-turn-002340) That you admit na yung high energy cost is one of the constraints sa **[02:39:22.250] Rep. Sergio C. Dagooc** (h2r5-turn-002341) pag-unlad natin. **[02:39:25.510] Rep. Sergio C. Dagooc** (h2r5-turn-002342) Pero inconsistently, **[02:39:28.250] Rep. Sergio C. Dagooc** (h2r5-turn-002343) nilagay nyo sa long-term, yung solusyon. **[02:39:33.640] Rep. Sergio C. Dagooc** (h2r5-turn-002344) May I ask PSA? **[02:39:37.540] Rep. Sergio C. Dagooc** (h2r5-turn-002345) What percent yung **[02:39:40.160] Rep. Sergio C. Dagooc** (h2r5-turn-002346) cost of electricity sa production **[02:39:42.840] Rep. Sergio C. Dagooc** (h2r5-turn-002347) natin at saka sa household spending? **[02:39:49.740] Rep. Sergio C. Dagooc** (h2r5-turn-002348) Production and **[02:39:51.420] Rep. Sergio C. Dagooc** (h2r5-turn-002349) services. **[02:39:53.710] Rep. Sergio C. Dagooc** (h2r5-turn-002350) What is the percentage cost of electricity? **[02:39:57.040] Rep. Albert S. Garcia** (h2r5-turn-002351) Please reply, Sec. Arsi. **[02:39:59.060] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002352) As **[02:39:59.840] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002353) I noted earlier, Mr. Chair, **[02:40:02.120] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002354) electricity expenditure by households, **[02:40:05.880] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002355) represent about 5.3 percent of their total spending. **[02:40:10.700] Rep. Sergio C. Dagooc** (h2r5-turn-002356) 3 to 5 percent? **[02:40:12.220] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002357) 5.3 percent. **[02:40:14.000] Rep. Sergio C. Dagooc** (h2r5-turn-002358) 5.3 percent. **[02:40:14.960] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002359) That's national average. **[02:40:16.960] Rep. Sergio C. Dagooc** (h2r5-turn-002360) Sa cost of products and services, anong **[02:40:20.940] Rep. Sergio C. Dagooc** (h2r5-turn-002361) percentage siya? **[02:40:22.140] Rep. Sergio C. Dagooc** (h2r5-turn-002362) Sa pag-produce ng products, what percentage is the cost component of electricity? **[02:40:27.820] Rep. Sergio C. Dagooc** (h2r5-turn-002363) Sa pagbigay ng serbisyo across **[02:40:31.980] Rep. Sergio C. Dagooc** (h2r5-turn-002364) all sectors, anong percent yung cost of electricity? **[02:40:37.120] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002365) I don't have that data with me right now, Mr. Chair. But I could provide that. I think we could extract that from our **[02:40:43.000] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002366) database. **[02:40:45.240] Rep. Sergio C. Dagooc** (h2r5-turn-002367) I hope, Mr. Chair, kung **[02:40:47.780] Rep. Sergio C. Dagooc** (h2r5-turn-002368) ikaw ay doktor, **[02:40:49.420] Rep. Sergio C. Dagooc** (h2r5-turn-002369) dapat alam **[02:40:52.780] Rep. Sergio C. Dagooc** (h2r5-turn-002370) mo yung parameters na yun. Yun yung inaalboroto ko dito. I am very frustrated of my seven years. **[02:40:59.700] Rep. Sergio C. Dagooc** (h2r5-turn-002371) Like that VAT on systems loss. 2019 ko pa fi-nile yan. Kung **[02:41:06.200] Rep. Sergio C. Dagooc** (h2r5-turn-002372) hindi binanggit ni Presidente, saka lang tayo nagkandara pa. Pero that is not all. Systems loss ay napakaliit. Ngayon sinabi dito ni **[02:41:14.480] Rep. Sergio C. Dagooc** (h2r5-turn-002373) Secretary Arsi, **[02:41:17.740] Rep. Sergio C. Dagooc** (h2r5-turn-002374) isa sa mga problema niya is high cost of energy. **[02:41:22.420] Rep. Sergio C. Dagooc** (h2r5-turn-002375) Driven by the list in implementing energy contracts, particularly renewable unlimited competition in the electricity market. **[02:41:31.340] Rep. Sergio C. Dagooc** (h2r5-turn-002376) Pero pagdating dito sa solusyon, amendment of EPIRA, **[02:41:35.600] Rep. Sergio C. Dagooc** (h2r5-turn-002377) wala man lang kayong sinabi kung anong provision ng EPIRA ang i-amend. Can the Secretary inform **[02:41:45.080] Rep. Sergio C. Dagooc** (h2r5-turn-002378) this representation? Ano bang specific na provision ng EPIRA ang amyendahan natin to solve the problem that you have admitted? **[02:41:54.620] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002379) I think we have **[02:41:57.340] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002380) a study on that, Mr. **[02:42:02.580] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002381) Chair. But one is about the **[02:42:05.140] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002382) strengthening, **[02:42:08.020] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002383) the need to strengthen ERC. **[02:42:10.260] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002384) The second is to **[02:42:12.680] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002385) strengthen **[02:42:14.920] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002386) the coordination between the ERC **[02:42:17.980] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002387) and the Philippine Competition Commission. So that it is more effective in going after market abuse or abuse of market power by **[02:42:27.440] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002388) any participant in the electricity market. We **[02:42:33.860] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002389) decided in the last congress, LEDAC decided in the last congress, Mr. Chair, if I may mention, **[02:42:42.140] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002390) to approach the EPIRA amendments by **[02:42:46.500] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002391) segments. First, with respect to the **[02:42:52.800] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002392) PSALM, extending the life of PSALM. Second, **[02:42:57.920] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002393) is **[02:42:58.360] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002394) reforming the strengthening **[02:43:01.800] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002395) ERC. And **[02:43:03.200] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002396) third is the strengthening of the **[02:43:06.900] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002397) competition mandates of both ERC and **[02:43:10.680] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002398) PCC. **[02:43:12.600] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002399) Because the sense then of the LEDAC members, **[02:43:16.680] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002400) Mr. **[02:43:17.800] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002401) Chair, is that **[02:43:20.200] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002402) EPIRA amendment is likely going to be quite complex **[02:43:26.220] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002403) because of the many issues involved. **[02:43:28.560] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002404) And so they preferred **[02:43:30.000] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002405) to... proceed sequentially. **[02:43:35.240] Rep. Sergio C. Dagooc** (h2r5-turn-002406) Thank you for the answer, Secretary. Yun bang sagot mo sa akin ay galing sa puso mo? **[02:43:42.340] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002407) Of course. I **[02:43:44.240] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002408) was a... **[02:43:45.540] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002409) Before I assumed this office, Mr. Chair, I was a chair **[02:43:49.640] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002410) of the Philippine Competition Commission. And our **[02:43:52.380] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002411) office then undertook a study on the state of **[02:43:56.960] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002412) competition **[02:44:00.600] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002413) policy **[02:44:04.000] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002414) in the country. And we believe that the **[02:44:07.040] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002415) high cost, part of the high cost of electricity, is due **[02:44:11.500] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002416) to the structural issues in the industry. **[02:44:14.060] Rep. Sergio C. Dagooc** (h2r5-turn-002417) You're correct, Mr. Secretary. **[02:44:16.180] Rep. Sergio C. Dagooc** (h2r5-turn-002418) So you recommend, sa LEDAC, **[02:44:19.020] Rep. Sergio C. Dagooc** (h2r5-turn-002419) amendment ng EPIRA, you should be specific. **[02:44:22.520] Rep. Sergio C. Dagooc** (h2r5-turn-002420) Cross-ownership provision, **[02:44:24.400] Rep. Sergio C. Dagooc** (h2r5-turn-002421) section 43F, section **[02:44:26.560] Rep. Sergio C. Dagooc** (h2r5-turn-002422) 47, and section 45. **[02:44:29.280] Rep. Sergio C. Dagooc** (h2r5-turn-002423) Then yung open access. Kasi yan po yung laman ng **[02:44:33.780] Rep. Sergio C. Dagooc** (h2r5-turn-002424) mga sinasabi mo, which you failed **[02:44:35.360] Rep. Sergio C. Dagooc** (h2r5-turn-002425) to **[02:44:36.200] Rep. Sergio C. Dagooc** (h2r5-turn-002426) enumerate. Now, **[02:44:37.680] Rep. Sergio C. Dagooc** (h2r5-turn-002427) dito sa high **[02:44:40.260] Rep. Sergio C. Dagooc** (h2r5-turn-002428) energy cost, **[02:44:41.280] Rep. Sergio C. Dagooc** (h2r5-turn-002429) I doubt kung hundred percent tama yung hinala ninyo na ang dahilan ay delay in the implementation of energy contracts, particularly your renewable. Sana, **[02:44:54.940] Rep. Sergio C. Dagooc** (h2r5-turn-002430) Mr. Chair, ay ibawas mo to sa... Kasi this is supposed to be silang magsagot. Pero ano, **[02:45:03.400] Rep. Sergio C. Dagooc** (h2r5-turn-002431) ako na lang ang magsagot. Parang point of information, Mr. Chair. **[02:45:08.780] Rep. Sergio C. Dagooc** (h2r5-turn-002432) Kasi I have still at least three important issues na ang sagot sa ating budget nandito lang sa presentation ni Secretary Arsi kung isasa puso natin at dibdibin. **[02:45:23.500] Rep. Sergio C. Dagooc** (h2r5-turn-002433) Pag renewable kasi, Mr. Secretary, I am not against it. I am always supportive on it. Since the time Renewable Energy Act was enacted, hindi pa po ako kong member ng house. But the problem is, **[02:45:38.200] Rep. Sergio C. Dagooc** (h2r5-turn-002434) kung lakihan **[02:45:40.100] Rep. Sergio C. Dagooc** (h2r5-turn-002435) mo kaagad **[02:45:40.920] Rep. Sergio C. Dagooc** (h2r5-turn-002436) yung **[02:45:42.160] Rep. Sergio C. Dagooc** (h2r5-turn-002437) portfolio ng renewable, you need to upgrade the line. Now, remember, ang objective natin is the lower... to lower the cost of electricity. **[02:45:54.640] Rep. Sergio C. Dagooc** (h2r5-turn-002438) Pag lakihan mo yung portfolio ng renewable, hindi mo magamit 24 hours, nilakihan mo ngayon yung transmission line, in-upgrade mo, **[02:46:03.680] Rep. Sergio C. Dagooc** (h2r5-turn-002439) babayaran natin lahat yung transmission. **[02:46:06.800] Rep. Sergio C. Dagooc** (h2r5-turn-002440) Then, **[02:46:07.360] Rep. Sergio C. Dagooc** (h2r5-turn-002441) babayaran mo yung renewable na na-inject mo, na ginagamit mo lang ng ilang oras sa isang araw. Mag-kontrata ka na naman ngayon ng ancillary, backup na planta. Ilan na yung binabayaran mo? Tatlo na. **[02:46:19.740] Rep. Sergio C. Dagooc** (h2r5-turn-002442) Yung renewable, yung ancillary, yung **[02:46:23.600] Rep. Sergio C. Dagooc** (h2r5-turn-002443) transmission. Kaya, you **[02:46:26.540] Rep. Sergio C. Dagooc** (h2r5-turn-002444) can revisit that. Maybe, mag-uusap kayo ni DOE na yung **[02:46:32.640] Rep. Sergio C. Dagooc** (h2r5-turn-002445) just transition, baka magiging unjust yan pag hindi sila makinig. **[02:46:39.500] Rep. Sergio C. Dagooc** (h2r5-turn-002446) Now, finally, Mr. Chair, sana kunting ano na lang, kasi for me, this is very... Ito yung, **[02:46:46.820] Rep. Sergio C. Dagooc** (h2r5-turn-002447) paulit-ulit to, yung taxation natin sa electricity, **[02:46:52.440] Rep. Sergio C. Dagooc** (h2r5-turn-002448) that drives high electricity cost. Kasi, pag tumaas yung generation, dahil yung coal na inaangkat natin, ay may excise tax, may customs duties. Pagdating sa planta, paglabas niya, one kilowatt hour, generation, **[02:47:08.500] Rep. Sergio C. Dagooc** (h2r5-turn-002449) 12. Dadaan sa transmission, **[02:47:10.900] Rep. Sergio C. Dagooc** (h2r5-turn-002450) 12. Dadaan sa distribution, **[02:47:13.080] Rep. Sergio C. Dagooc** (h2r5-turn-002451) 12. Pati yung systems loss, losses na, may tax pa. Pati mga subsidies, lifeline, ambag na nga namin sa gobyerno yun. Yung hindi sa availer, tinatax pa ninyo. We should review that. **[02:47:26.380] Rep. Sergio C. Dagooc** (h2r5-turn-002452) Ako po yung principal author ng ERC strengthening. Tapos na po yun. **[02:47:32.060] Rep. Sergio C. Dagooc** (h2r5-turn-002453) Apat na oras ko dinefend yun sa floor. Binigyan natin ng budget si ERC doon sa collection office nila na 50 **[02:47:40.760] Rep. Sergio C. Dagooc** (h2r5-turn-002454) percent i-retain. **[02:47:41.500] Rep. Sergio C. Dagooc** (h2r5-turn-002455) Si Congressman Rufus ang nagpatagal sa akin kasi ayaw. I **[02:47:45.380] Rep. Sergio C. Dagooc** (h2r5-turn-002456) agree with you, we should strengthen yung **[02:47:48.700] Rep. Sergio C. Dagooc** (h2r5-turn-002457) ERC. Tama po kayo dyan. So ang **[02:47:51.960] Rep. Sergio C. Dagooc** (h2r5-turn-002458) i-review natin yung parang multiple taxes yun. **[02:47:56.060] Rep. Sergio C. Dagooc** (h2r5-turn-002459) Kasi pag **[02:47:57.040] Rep. Sergio C. Dagooc** (h2r5-turn-002460) halimbawa nag-benchmark si ERC ng 6 pesos per kilowatt hour sa coal. Pag taas ng panggatong, aabot yan ng 8-9. Tataas din yung VAT kasi naka-fix yung VAT natin. What I am suggesting, baka pwedeng pagtuunan ninyong pansin kung ano yung basis ni BIR sa target revenue. **[02:48:21.160] Rep. Sergio C. Dagooc** (h2r5-turn-002461) Halimbawa 6 pesos yung benchmark, kukuliktahin natin yung 6 pesos. Pero pag lumampas yan ng 6, there are times na mag-ano si Indonesia. Kung tataas ng 10 pesos, baka pwedeng iba na yung i-ano natin doon sa in-excess doon sa 6 pesos. Win-win po yan kasi wala pong nawala na revenue sa atin. Baka tataas pa kasi ang **[02:48:45.500] Rep. Sergio C. Dagooc** (h2r5-turn-002462) spending hindi magtitipid ng ano. Tataas yung energy sales natin, mababawi din yun. Anyway, yun din naman pong natipid nila. **[02:48:58.140] Rep. Sergio C. Dagooc** (h2r5-turn-002463) Ibibili din naman ang pagkain yun. Ibibili din ang mga goods. May 12 percent po tayo doon. So, I hope na makinig kayo konti kahit hindi kami economist. Kasi kami sa power sector, tinitingnan namin saan yung bottleneck. Talagang yung tax natin ang nagpabigat. **[02:49:19.520] Rep. Sergio C. Dagooc** (h2r5-turn-002464) Buti nga lang, **[02:49:20.640] Rep. Sergio C. Dagooc** (h2r5-turn-002465) minention ni Presidente yung systems loss na VAT **[02:49:24.320] Rep. Sergio C. Dagooc** (h2r5-turn-002466) ngayon nagkukumuhog tayo. But, **[02:49:26.840] Rep. Sergio C. Dagooc** (h2r5-turn-002467) napakaliit po yan. I hope, titignan din natin yung other taxes. Lalong-lalo na yung GI all, FIT all. **[02:49:36.880] Rep. Sergio C. Dagooc** (h2r5-turn-002468) I hope, wala nang sana all na sisingilin. **[02:49:41.280] Rep. Sergio C. Dagooc** (h2r5-turn-002469) Huwag na nating i-ano yun. Baka i-forego na natin yun. Kasi ang kaakibat naman doon, dagdag na mga planta, dagdag na trabaho. May tax na naman tayo sa mga nagtatrabaho. Dagdag na negosyo. Kasi investment ang tama **[02:49:58.460] Rep. Sergio C. Dagooc** (h2r5-turn-002470) po kayo dito. Pero, may kunti akong reservation sa mga ibang mga sinasabi nyo kung paano i-resolve. **[02:50:05.540] Rep. Sergio C. Dagooc** (h2r5-turn-002471) Kasi in the real sense sa power industry, **[02:50:08.460] Rep. Sergio C. Dagooc** (h2r5-turn-002472) lalong tataas tayo **[02:50:10.600] Rep. Sergio C. Dagooc** (h2r5-turn-002473) dito pag lakihan **[02:50:12.220] Rep. Sergio C. Dagooc** (h2r5-turn-002474) natin kaagad-agad yung renewable. **[02:50:14.820] Rep. Sergio C. Dagooc** (h2r5-turn-002475) I hope, magkausap tayo. So, Mr. Secretary, with your team, **[02:50:19.240] Rep. Sergio C. Dagooc** (h2r5-turn-002476) itanong ko nga sana, bakit ibinta natin yung Caliraya, kumikita yan? **[02:50:24.500] Rep. Sergio C. Dagooc** (h2r5-turn-002477) Bakit **[02:50:24.980] Rep. Sergio C. Dagooc** (h2r5-turn-002478) ibinta na naman natin yung Agos and Pulangi, na **[02:50:29.100] Rep. Sergio C. Dagooc** (h2r5-turn-002479) kumikita yan? **[02:50:30.540] Rep. Sergio C. Dagooc** (h2r5-turn-002480) Sa palagay ko, no person in his right mind na yung asset niya na kumikita ay kanyang i-privatize. Wala na tayong control. Thank you, Mr. Chair. **[02:50:40.200] Rep. Albert S. Garcia** (h2r5-turn-002481) Thank you, Cong. Dagooc. **[02:50:41.400] Rep. Albert S. Garcia** (h2r5-turn-002482) We share your **[02:50:42.440] Rep. Albert S. Garcia** (h2r5-turn-002483) passion for lowering our electricity rates. **[02:50:46.880] Rep. Albert S. Garcia** (h2r5-turn-002484) Pwede pa rin po next round, Kong Dago. **[02:50:51.120] Rep. Sergio C. Dagooc** (h2r5-turn-002485) Mahaba yun, Mr. Chair. Ang gusto ko lang sana, if we can sit down with **[02:50:55.260] Rep. Sergio C. Dagooc** (h2r5-turn-002486) BIR, kahit hindi lang ako, kahit wish and means. If we can sit down with Secretary Arsi, **[02:51:04.660] Rep. Sergio C. Dagooc** (h2r5-turn-002487) kasi natumbok nga eh. Natumbok nga yung currency, number one. Pero medyo may mga ako na baka pwede niyang pakinggan with BIR, with DOF. We **[02:51:15.160] Rep. Albert S. Garcia** (h2r5-turn-002488) can do that, Cong. Dagooc. Maraming salamat po. And would Sec. Arsi want to reply before **[02:51:21.340] Rep. Albert S. Garcia** (h2r5-turn-002489) we move to the next representative? **[02:51:24.220] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-002490) We'll be happy to sit down with the Honorable Congressman. **[02:51:27.020] Rep. Albert S. Garcia** (h2r5-turn-002491) Okay. **[02:51:27.560] Rep. Albert S. Garcia** (h2r5-turn-002492) Salamat po. **[02:51:29.160] Rep. Sergio C. Dagooc** (h2r5-turn-002493) Thank you, Sec. **[02:51:30.080] Rep. Sergio C. Dagooc** (h2r5-turn-002494) I hope na ma-arrange natin. **[02:51:32.800] Rep. Mark O. Cojuangco** (h2r5-turn-002495) Mr. Chair. **[02:51:34.140] Rep. Mark O. Cojuangco** (h2r5-turn-002496) Mr. Chair. **[02:51:34.560] Rep. Mark O. Cojuangco** (h2r5-turn-002497) ... **[02:51:35.300] Rep. Mark O. Cojuangco** (h2r5-turn-002498) ... **[02:51:36.480] Rep. Albert S. Garcia** (h2r5-turn-002499) Yes, Cong. Mark? **[02:51:38.280] Rep. Mark O. Cojuangco** (h2r5-turn-002500) May I be included in **[02:51:40.760] Rep. Mark O. Cojuangco** (h2r5-turn-002501) that group that **[02:51:42.140] Rep. Mark O. Cojuangco** (h2r5-turn-002502) is going to meet with the Congressman? **[02:51:44.540] Rep. Albert S. Garcia** (h2r5-turn-002503) Yes. Yes, absolutely. **[02:51:45.980] Rep. Mark O. Cojuangco** (h2r5-turn-002504) Yes, thank you. Thank **[02:51:47.500] Rep. Albert S. Garcia** (h2r5-turn-002505) Thank you, Cong. Mark. **[02:51:48.780] Rep. Albert S. Garcia** (h2r5-turn-002506) So next, may we call on... **[02:52:00.190] Rep. Albert S. Garcia** (h2r5-turn-002507) Cong. Tony Roman. **[02:52:02.230] Rep. Antonino B. Roman III** (h2r5-turn-002508) Thank you, Mr. Chair. **[02:52:02.880] Rep. Albert S. Garcia** (h2r5-turn-002508-split-2) The floor is yours. **[02:52:05.050] Rep. Antonino B. Roman III** (h2r5-turn-002509) A question regarding the NTA. Before I propel the question, just to contextualize, there's a bit of good news **[02:52:12.370] Rep. Antonino B. Roman III** (h2r5-turn-002510) that was reported on the floor earlier, that **[02:52:16.130] Rep. Antonino B. Roman III** (h2r5-turn-002511) the NTA allocation from **[02:52:18.650] Rep. Antonino B. Roman III** (h2r5-turn-002512) 2026 to 2027 increased. **[02:52:21.630] Rep. Antonino B. Roman III** (h2r5-turn-002513) That's a good sign. **[02:52:23.750] Rep. Antonino B. Roman III** (h2r5-turn-002514) But my concern relates to the distribution of the NTA. **[02:52:28.130] Rep. Antonino B. Roman III** (h2r5-turn-002515) So perhaps may **[02:52:30.230] Rep. Antonino B. Roman III** (h2r5-turn-002516) I ask the Department of Finance to **[02:52:33.050] Rep. Antonino B. Roman III** (h2r5-turn-002517) help **[02:52:33.810] Rep. Antonino B. Roman III** (h2r5-turn-002518) elucidate on **[02:52:37.570] Rep. Antonino B. Roman III** (h2r5-turn-002519) that distribution? **[02:52:39.550] Rep. Antonino B. Roman III** (h2r5-turn-002520) So currently, under **[02:52:41.730] Rep. Antonino B. Roman III** (h2r5-turn-002521) the local government code, the **[02:52:44.070] Rep. Antonino B. Roman III** (h2r5-turn-002522) formula provides **[02:52:45.770] Rep. Antonino B. Roman III** (h2r5-turn-002523) that **[02:52:46.850] Rep. Antonino B. Roman III** (h2r5-turn-002524) 23 percent goes **[02:52:49.170] Rep. Antonino B. Roman III** (h2r5-turn-002525) to cities, 20 percent goes to provinces, 34 percent goes to municipalities, and 20 percent to barangays. Tama po ba? **[02:52:56.030] Rep. Antonino B. Roman III** (h2r5-turn-002526) It's correct? **[02:52:57.270] DOF Secretary Frederick D. Go** (h2r5-turn-002527) Yes. **[02:52:58.930] Rep. Antonino B. Roman III** (h2r5-turn-002528) Yes. But there **[02:53:00.650] Rep. Antonino B. Roman III** (h2r5-turn-002529) are 149 cities sharing **[02:53:04.850] Rep. Antonino B. Roman III** (h2r5-turn-002530) in the 23 allocation for cities. Do **[02:53:08.610] Rep. Antonino B. Roman III** (h2r5-turn-002531) you confirm? **[02:53:12.510] DOF Secretary Frederick D. Go** (h2r5-turn-002532) Yes. **[02:53:13.810] Rep. Antonino B. Roman III** (h2r5-turn-002533) And there are 1,493 municipalities sharing in the 34 that goes to municipalities. **[02:53:21.320] DOF Secretary Frederick D. Go** (h2r5-turn-002534) Your Honor, Mr. Chair, I think DBM should be the one replying to the honorable congressman **[02:53:25.220] Rep. Antonino B. Roman III** (h2r5-turn-002535) Yes. I turn to **[02:53:27.160] Rep. Antonino B. Roman III** (h2r5-turn-002536) DBM. **[02:53:28.300] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002537) Mr. Chair, Your Honor. **[02:53:29.940] Rep. Albert S. Garcia** (h2r5-turn-002538) Please reply. **[02:53:31.260] Rep. Antonino B. Roman III** (h2r5-turn-002539) Tama. **[02:53:31.820] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002540) As to the number of municipalities, we have 1,491, Your Honor, in 2025. **[02:53:38.760] Rep. Antonino B. Roman III** (h2r5-turn-002541) Ninety-one. **[02:53:38.940] Rep. Antonino B. Roman III** (h2r5-turn-002542) Okay. **[02:53:39.480] Rep. Antonino B. Roman III** (h2r5-turn-002543) So from those statistics alone, **[02:53:44.100] Rep. Antonino B. Roman III** (h2r5-turn-002544) do **[02:53:44.740] Rep. Antonino B. Roman III** (h2r5-turn-002545) you agree that municipalities get less than cities? **[02:53:51.320] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002546) Yes, Your Honor. Just considering the percentage of allocation and the number of LGUs, municipalities tend to receive less shares than the cities, Your Honor. **[02:54:02.720] Rep. Antonino B. Roman III** (h2r5-turn-002547) Yung mga cities po mas mayayaman sa municipalities. Tama po ba? **[02:54:08.790] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002548) Yes. Your Honor, considering higher tax base and higher capacity to levy taxes as well. **[02:54:15.470] Rep. Antonino B. Roman III** (h2r5-turn-002549) And despite that, mas maliit po'y napupunta sa municipalities. **[02:54:20.250] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002550) That is because of the allocation provided for under the Local Government Code, Your Honor. **[02:54:25.330] Rep. Antonino B. Roman III** (h2r5-turn-002551) Okay. **[02:54:27.030] Rep. Antonino B. Roman III** (h2r5-turn-002552) Do you also agree that there are more people in municipalities than in cities? **[02:54:35.480] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002553) Mr. Chair, Your Honor, depending on municipality, that may not be absolute, Your Honor. **[02:54:41.940] Rep. Antonino B. Roman III** (h2r5-turn-002554) In general, if you lump together, group together all the municipalities, there are more people in municipalities than in cities. If there are 1,491 municipalities and **[02:54:51.120] Rep. Antonino B. Roman III** (h2r5-turn-002555) there are only 149 cities, it stands to reason that there are more people in 1,491 municipalities than there are in **[02:54:58.000] Rep. Antonino B. Roman III** (h2r5-turn-002556) 149 cities. Tama po ba? **[02:54:59.940] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002557) If you're looking at the aggregate, Mr. Chair, Your Honor, of all municipalities, then the answer would be yes, Your Honor. **[02:55:06.440] Rep. Antonino B. Roman III** (h2r5-turn-002558) But as a group, they only get 34%, correct? **[02:55:09.900] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002559) Based on the formula of the Local Government Code, Your Honor. **[02:55:12.680] Rep. Antonino B. Roman III** (h2r5-turn-002560) Okay. **[02:55:13.580] Rep. Antonino B. Roman III** (h2r5-turn-002561) And do you agree that **[02:55:15.280] Rep. Antonino B. Roman III** (h2r5-turn-002562) the... **[02:55:17.740] Rep. Antonino B. Roman III** (h2r5-turn-002563) utilization rate, **[02:55:19.080] Rep. Antonino B. Roman III** (h2r5-turn-002564) the NTA utilization rate of municipalities is around 85 to 90 **[02:55:32.500] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002565) As to utilization, Your Honor, we may have to confirm the actual rates. **[02:55:38.780] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002566) We just don't have the figures with us right now, Your Honor. **[02:55:41.500] Rep. Antonino B. Roman III** (h2r5-turn-002567) Okay. Let me try this. With respect to the NTA utilization rate of cities, is it around 60 percent? **[02:55:53.820] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002568) We don't have the exact data of NTA utilization rate, Your Honor. **[02:55:59.300] Rep. Antonino B. Roman III** (h2r5-turn-002569) Masasabi niyo ba na utilization rate, **[02:56:01.880] Rep. Antonino B. Roman III** (h2r5-turn-002570) para hindi na tayo eksakto, hindi na natin tinayang mga numero, **[02:56:05.520] Rep. Antonino B. Roman III** (h2r5-turn-002571) masasabi niyo ba sa abot ng inyong kaalaman na **[02:56:09.900] Rep. Antonino B. Roman III** (h2r5-turn-002572) utilization rate ng mga municipalities ay mas mataas kaysa utilization rate ng mga cities? **[02:56:19.270] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002573) Mr. Chair, Your Honor, the closest that we can actually infer to is probably NTA dependence. **[02:56:25.590] Rep. Antonino B. Roman III** (h2r5-turn-002574) Yes. **[02:56:27.121] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002574-split-2) So if we use that as an indicator, **[02:56:27.710] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002575) Yes. the NTA dependence is higher in municipalities than cities, Your Honor. **[02:56:32.050] Rep. Antonino B. Roman III** (h2r5-turn-002576) Di ba, pagka mas mataas yung dependence, mas dapat binibigyan? **[02:56:36.270] Rep. Antonino B. Roman III** (h2r5-turn-002577) You don't have to feel defensive, ah? **[02:56:38.630] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002578) Yes, Your Honor. We're just following, Your Honor, the formula of the local government code. **[02:56:42.450] Rep. Antonino B. Roman III** (h2r5-turn-002579) Oo, tama. Pag politiko lang, pag mas mataas yung dependence, mas dapat binibigyan. **[02:56:51.870] Rep. Antonino B. Roman III** (h2r5-turn-002580) NTA dependence, as **[02:56:54.430] Rep. Antonino B. Roman III** (h2r5-turn-002581) a matter of policy. **[02:57:00.670] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002582) Your Honor, on the statement na kapag mas mataas yung dependence, dapat mas binibigyan, we're looking at also, as we have mentioned a while ago, quality of spending as well. **[02:57:11.170] Rep. Antonino B. Roman III** (h2r5-turn-002583) No. Ceteris **[02:57:11.650] Rep. Antonino B. Roman III** (h2r5-turn-002584) Paribus. **[02:57:12.970] Rep. Antonino B. Roman III** (h2r5-turn-002585) Ceteris Paribus. **[02:57:15.030] Rep. Antonino B. Roman III** (h2r5-turn-002586) Everything else being equal, if **[02:57:17.430] Rep. Antonino B. Roman III** (h2r5-turn-002587) the NTA dependence is higher, that is reason to give that **[02:57:20.210] Rep. Antonino B. Roman III** (h2r5-turn-002588) entity more. **[02:57:29.390] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002589) Considering the allocation, Your Honor, then if there is ability to provide in addition to **[02:57:35.530] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002590) those LGUs who will be needing more, then the answer would be a yes. **[02:57:41.990] Rep. Antonino B. Roman III** (h2r5-turn-002591) Yes, okay. **[02:57:44.610] Rep. Antonino B. Roman III** (h2r5-turn-002592) Ngayon po, after the NTA is distributed, following the formula provided by the local government code of **[02:57:53.950] Rep. Antonino B. Roman III** (h2r5-turn-002593) 1991, tama po ba, 1991? **[02:57:56.670] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002594) That is correct, Your Honor. **[02:57:57.870] Rep. Antonino B. Roman III** (h2r5-turn-002595) Meron tong horizontal distribution formula na ginagamit, tama? **[02:58:03.070] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002596) That is correct, Your Honor. **[02:58:04.870] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002597) And as I understand, **[02:58:07.250] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002598) 50 percent is based of the allocation, is based, **[02:58:11.170] Rep. Antonino B. Roman III** (h2r5-turn-002599) ito yung pagsabing horizontal within the category of municipalities, paano hahatiin ang mga municipalities, **[02:58:17.150] Rep. Antonino B. Roman III** (h2r5-turn-002600) tama? **[02:58:18.250] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002601) That is correct, Your Honor. **[02:58:19.650] Rep. Antonino B. Roman III** (h2r5-turn-002602) And **[02:58:20.070] Rep. Antonino B. Roman III** (h2r5-turn-002603) based on the formula, 50 percent goes to population, **[02:58:24.030] Rep. Antonino B. Roman III** (h2r5-turn-002604) tama? **[02:58:24.850] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002605) That is correct, Your Honor. **[02:58:26.210] Rep. Antonino B. Roman III** (h2r5-turn-002606) And 25 **[02:58:27.970] Rep. Antonino B. Roman III** (h2r5-turn-002607) goes to land area, correct? **[02:58:29.710] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002608) That is correct, Your Honor. **[02:58:31.510] Rep. Antonino B. Roman III** (h2r5-turn-002609) And then 25 equal distribution? **[02:58:34.750] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002610) That is correct, Your Honor. Meaning, **[02:58:36.270] Rep. Antonino B. Roman III** (h2r5-turn-002611) yung 25 nalalalabi, to **[02:58:38.550] Rep. Antonino B. Roman III** (h2r5-turn-002612) be divided equally among and **[02:58:41.290] Rep. Antonino B. Roman III** (h2r5-turn-002613) by municipalities, **[02:58:42.230] Rep. Antonino B. Roman III** (h2r5-turn-002614) tama? **[02:58:42.570] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002615) That is correct, Your Honor. **[02:58:44.830] Rep. Antonino B. Roman III** (h2r5-turn-002616) Is there correlation between **[02:58:46.590] Rep. Antonino B. Roman III** (h2r5-turn-002617) population and income, so that the more populous a municipality is, the higher the income? **[02:59:09.680] Rep. Antonino B. Roman III** (h2r5-turn-002618) Yes Secretary Go **[02:59:11.580] DOF Secretary Frederick D. Go** (h2r5-turn-002619) I may help my **[02:59:12.760] Rep. Albert S. Garcia** (h2r5-turn-002619-split-2) Please go ahead **[02:59:13.940] Rep. Albert S. Garcia** (h2r5-turn-002620) Please go ahead **[02:59:14.300] DOF Secretary Frederick D. Go** (h2r5-turn-002621) fellow Cabinet secretary **[02:59:14.540] DOF Secretary Frederick D. Go** (h2r5-turn-002622) I think the **[02:59:16.380] DOF Secretary Frederick D. Go** (h2r5-turn-002623) I've actually in my short time at the Department of Finance, I actually noted everything **[02:59:23.260] DOF Secretary Frederick D. Go** (h2r5-turn-002624) you are saying now. **[02:59:25.200] DOF Secretary Frederick D. Go** (h2r5-turn-002625) And so I looked into it. **[02:59:26.880] DOF Secretary Frederick D. Go** (h2r5-turn-002626) And I **[02:59:28.120] DOF Secretary Frederick D. Go** (h2r5-turn-002627) think **[02:59:29.440] DOF Secretary Frederick D. Go** (h2r5-turn-002628) the answers of my colleague from DBM is correct. We're just following the law. **[02:59:34.360] Rep. Antonino B. Roman III** (h2r5-turn-002629) Tama. **[02:59:36.500] DOF Secretary Frederick D. Go** (h2r5-turn-002630) I noted, however, **[02:59:38.220] DOF Secretary Frederick D. Go** (h2r5-turn-002631) exactly the two things you mentioned. **[02:59:41.240] DOF Secretary Frederick D. Go** (h2r5-turn-002632) So we actually had a discussion with the World Bank to **[02:59:46.420] DOF Secretary Frederick D. Go** (h2r5-turn-002633) To take a look at this law and **[02:59:50.100] DOF Secretary Frederick D. Go** (h2r5-turn-002634) And to see if it was, if it needs to be, shall we say, updated. **[02:59:54.640] DOF Secretary Frederick D. Go** (h2r5-turn-002635) Or looked into. And **[02:59:57.100] DOF Secretary Frederick D. Go** (h2r5-turn-002636) specifically with two other criteria in mind. **[02:59:59.920] DOF Secretary Frederick D. Go** (h2r5-turn-002637) One was poverty. **[03:00:02.260] DOF Secretary Frederick D. Go** (h2r5-turn-002638) The incidence of poverty. **[03:00:04.400] DOF Secretary Frederick D. Go** (h2r5-turn-002639) And secondly, the absorptive capacity. Which **[03:00:07.980] DOF Secretary Frederick D. Go** (h2r5-turn-002640) is, I think, exactly what you are leading towards **[03:00:10.760] DOF Secretary Frederick D. Go** (h2r5-turn-002641) in the beginning of your **[03:00:12.340] DOF Secretary Frederick D. Go** (h2r5-turn-002642) statements. So I actually have been, I **[03:00:19.140] DOF Secretary Frederick D. Go** (h2r5-turn-002643) have actually taken a look at this. And I actually share your points **[03:00:23.800] DOF Secretary Frederick D. Go** (h2r5-turn-002644) of view. But we're really just at this point following the law. So I think what we will do is we'll work with World Bank. **[03:00:29.500] DOF Secretary Frederick D. Go** (h2r5-turn-002645) See if there are adjustments that can be made. And then maybe we will recommend it **[03:00:33.320] DOF Secretary Frederick D. Go** (h2r5-turn-002646) for the legislature's consideration. **[03:00:36.860] Rep. Antonino B. Roman III** (h2r5-turn-002647) Opo. And another possible, another **[03:00:40.060] Rep. Antonino B. Roman III** (h2r5-turn-002648) criterion possibly that should be considered is also based on merit. **[03:00:46.300] Rep. Antonino B. Roman III** (h2r5-turn-002649) Meritocracy such as outcomes. Or **[03:00:49.820] Rep. Antonino B. Roman III** (h2r5-turn-002650) SGLG **[03:00:53.140] Rep. Antonino B. Roman III** (h2r5-turn-002651) perhaps. **[03:00:54.700] Rep. Antonino B. Roman III** (h2r5-turn-002652) So we have a more reliable, rational **[03:00:58.660] Rep. Antonino B. Roman III** (h2r5-turn-002653) way of distributing the NTA. **[03:01:01.340] Rep. Antonino B. Roman III** (h2r5-turn-002654) But let **[03:01:02.400] Rep. Antonino B. Roman III** (h2r5-turn-002655) me now turn to **[03:01:03.420] Rep. Antonino B. Roman III** (h2r5-turn-002656) the LGSF. **[03:01:07.860] Rep. Antonino B. Roman III** (h2r5-turn-002657) I think, and for this question, I turn to the DBM. **[03:01:12.680] Rep. Antonino B. Roman III** (h2r5-turn-002658) Ay, naubusan akong time. Is that 15 seconds left? **[03:01:15.980] Rep. Albert S. Garcia** (h2r5-turn-002659) Yes. **[03:01:17.000] Rep. Antonino B. Roman III** (h2r5-turn-002660) Oh my gosh **[03:01:17.480] Rep. Albert S. Garcia** (h2r5-turn-002661) Last question, Cong. Tony. **[03:01:18.520] Rep. Antonino B. Roman III** (h2r5-turn-002662) Then I will ask a compound question. **[03:01:22.140] Rep. Antonino B. Roman III** (h2r5-turn-002663) You say LGSF, I noticed the disbursement, it was dispersed more to cities. **[03:01:27.340] Rep. Antonino B. Roman III** (h2r5-turn-002664) Why? **[03:01:28.400] Rep. Antonino B. Roman III** (h2r5-turn-002665) Given the purpose of the LGSF. **[03:01:30.460] Rep. Antonino B. Roman III** (h2r5-turn-002666) The other one is **[03:01:32.440] Rep. Antonino B. Roman III** (h2r5-turn-002667) the unused appropriation from **[03:01:34.500] Rep. Antonino B. Roman III** (h2r5-turn-002668) 2010 to 2022. It's about 300 billion **[03:01:37.920] Rep. Antonino B. Roman III** (h2r5-turn-002669) pesos per year. **[03:01:41.600] Rep. Antonino B. Roman III** (h2r5-turn-002670) This could have been given to municipalities. **[03:01:44.340] Rep. Antonino B. Roman III** (h2r5-turn-002671) Do you agree? **[03:01:45.820] Rep. Antonino B. Roman III** (h2r5-turn-002672) So those are the last two questions. **[03:01:47.700] Rep. Albert S. Garcia** (h2r5-turn-002673) Thank you very much, Cong. Tony, for those last two questions. **[03:01:52.180] Rep. Albert S. Garcia** (h2r5-turn-002674) Sec. Kim, please reply. **[03:01:54.000] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002675) Mr. Chair, Your Honor, insofar as the 2026 LGSF, Financial Assistance to LGUs are concerned, **[03:02:02.180] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002676) the observation that more **[03:02:04.620] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002677) releases were given to... cities. This is primarily because of the RICE Program as being rolled out currently by the President where **[03:02:14.280] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002678) it is based on population. **[03:02:16.120] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002679) So the population, actually, the share **[03:02:19.100] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002680) of... **[03:02:20.660] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002681) the larger population of municipalities were actually given to provinces **[03:02:25.880] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002682) Separate po yung binigay na allocation directly to cities. So that explains why **[03:02:30.800] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002683) higher shares were given to cities but **[03:02:35.000] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002684) for the rest, there's a share between **[03:02:37.160] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002685) the province and the respective municipalities. **[03:02:40.880] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002686) Based on population, Your Honor. **[03:02:42.380] Rep. Albert S. Garcia** (h2r5-turn-002687) Maraming salamat. **[03:02:43.860] Rep. Antonino B. Roman III** (h2r5-turn-002688) The other question wasn't responded to. **[03:02:45.640] Rep. Antonino B. Roman III** (h2r5-turn-002689) Yung second question. I already **[03:02:48.780] Rep. Antonino B. Roman III** (h2r5-turn-002690) asked it so don't take this against me. The unused appropriation on average from 2010 to 2022 is about 300 billion, give or take. **[03:03:02.580] Rep. Antonino B. Roman III** (h2r5-turn-002691) This, in **[03:03:03.860] Rep. Antonino B. Roman III** (h2r5-turn-002692) terms of putting together the budget and realigning it, this could have been given more to perhaps to help municipalities? **[03:03:10.960] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002693) Sorry, Your Honor. May we clarify the budget item? **[03:03:14.420] Rep. Antonino B. Roman III** (h2r5-turn-002694) Unused appropriation. **[03:03:16.400] Rep. Antonino B. Roman III** (h2r5-turn-002695) So there's an appropriation because of underutilization, **[03:03:19.440] Rep. Antonino B. Roman III** (h2r5-turn-002696) right? **[03:03:20.060] Rep. Antonino B. Roman III** (h2r5-turn-002697) There's a remaining budget. **[03:03:22.830] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002698) If you look at it, **[03:03:24.110] Rep. Antonino B. Roman III** (h2r5-turn-002699) it's around 300 billion. **[03:03:27.550] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002700) Maybe, Your Honor, if you're referring to unused appropriations, if the funds are still valid for another fiscal year, that carry over to the next fiscal year. Otherwise, that reverts to the **[03:03:42.250] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002701) unappropriated surplus of the general fund, Your Honor. **[03:03:44.970] Rep. Albert S. Garcia** (h2r5-turn-002702) Okay. **[03:03:45.730] Rep. Albert S. Garcia** (h2r5-turn-002703) Salamat. Cong. Tony **[03:03:47.450] Rep. Albert S. Garcia** (h2r5-turn-002704) pwede pa naman next round? **[03:03:51.450] Rep. Albert S. Garcia** (h2r5-turn-002705) Thank you, Sec. Kim **[03:03:53.170] Rep. Albert S. Garcia** (h2r5-turn-002706) So we go to the next **[03:03:56.210] Rep. Albert S. Garcia** (h2r5-turn-002707) colleague that will propound **[03:03:58.910] Rep. Albert S. Garcia** (h2r5-turn-002708) his questions. May we call on **[03:04:02.990] Rep. Albert S. Garcia** (h2r5-turn-002709) Representative Chel Diokno **[03:04:05.650] Rep. Albert S. Garcia** (h2r5-turn-002710) Sir, you have the floor. Please proceed. **[03:04:07.690] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002711) Thank you, Mr. Chair. Magandang hapon po sa atin lahat. **[03:04:11.230] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002712) Bago po ako bawasan ng oras, I have a point of clarification that I would like to bring up with the Chair **[03:04:17.810] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002713) if I could. **[03:04:19.230] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002714) Huwag sana po muna akong tanggalan ng seconds ko diyan. Last year, **[03:04:24.570] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002715) I think it was very clear that our civil society **[03:04:28.190] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002716) friends were given a **[03:04:30.590] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002717) status in the budget process. Kinilala po sila, bagamat mga observers lang po sila, **[03:04:36.930] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002718) they were able to participate. **[03:04:39.070] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002719) But I understand that for this budget cycle, wala pa pong malinaw na **[03:04:45.090] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002720) polisiya pagdating sa ating mga CSOs. I **[03:04:48.210] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002721) would just like to bring this up **[03:04:49.850] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002722) with the Chair **[03:04:51.650] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002723) and ask for clear guidelines so that they can participate. **[03:04:57.460] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002724) Thank you, Mr. Chair. **[03:04:59.020] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002725) Thank you for the question, **[03:05:01.320] Rep. Albert S. Garcia** (h2r5-turn-002726) Representative Diokno. So tomorrow, there is a coordination meeting. **[03:05:06.260] Rep. Albert S. Garcia** (h2r5-turn-002727) With the civil **[03:05:09.320] Rep. Albert S. Garcia** (h2r5-turn-002728) society and the **[03:05:11.500] Rep. Albert S. Garcia** (h2r5-turn-002729) CPPRD. **[03:05:12.940] Rep. Albert S. Garcia** (h2r5-turn-002730) And they will finalize the guidelines on how the civil society can actively participate in **[03:05:20.220] Rep. Albert S. Garcia** (h2r5-turn-002731) this year's budget process. **[03:05:22.780] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002732) Thank you so much, Mr. Chair. **[03:05:24.660] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002733) My **[03:05:24.880] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002734) questions are primarily addressed to the Chair of the Department of Budget and Management. However, **[03:05:31.080] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002735) other members of the DBCC may chime in if **[03:05:34.900] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002736) you would like to contribute as well. **[03:05:37.200] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002737) Napansin po natin na tumaas nga ang budget for this year based on the proposed budget by **[03:05:43.880] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002738) 6%. Pero **[03:05:45.700] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002739) tila, **[03:05:46.860] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002740) parang **[03:05:47.740] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002741) nabawasan naman ang pondo **[03:05:49.320] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002742) para sa mga ahensyang direktang namumuhunan sa ating mga tao. **[03:05:53.500] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002743) I'm referring to the budgets for **[03:05:55.500] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002744) education, for **[03:05:57.360] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002745) health, skills development, and social protection. **[03:06:01.180] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002746) For example, sa edukasyon, **[03:06:04.080] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002747) bumaba na from **[03:06:06.180] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002748) 961.3 billion ang DepEd budget ay naging 916.7 B **[03:06:13.060] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002749) na lang. **[03:06:13.860] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002750) Sa SUCs naman, mula 137.9 B naging **[03:06:18.740] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002751) 134.5. **[03:06:21.000] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002752) Sa CHED, mula 47.5 billion, bumaba sa 34.6 billion. **[03:06:27.060] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002753) At sa TESDA, from **[03:06:28.460] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002754) 26 billion, **[03:06:30.280] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002755) it went down to 20.8. **[03:06:32.640] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002756) And the same would apply to the Department of Health. **[03:06:35.740] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002757) It went down a **[03:06:36.960] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002758) substantial amount as well, around 30 billion. **[03:06:40.020] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002759) PhilHealth also **[03:06:41.100] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002760) went down by roughly more **[03:06:44.140] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002761) than 50 billion. The **[03:06:45.800] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002762) same would apply as well to the DSWD. Kaya ang tanong ko po sa **[03:06:49.860] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002763) DBM at sa DBCC, **[03:06:52.520] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002764) bakit tila **[03:06:53.520] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002765) ayaw mamuhunan ng gobyerno natin sa sarili natin mga mamamayan? **[03:06:59.740] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002766) Mr. Chair, Your Honor, yun pong mga naobserbahan po na decrease into the **[03:07:06.300] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002767) mentioned departments took into account the **[03:07:10.040] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002768) absorptive capacity of these agencies and their capacity to implement their current programs. **[03:07:15.420] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002769) Gaya po nang nabanggit natin, halimbawa po sa DepEd, **[03:07:18.600] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002770) ang decrease po na 39.346 billion ay **[03:07:23.420] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002771) dahil po sa kanilang mababang utilization or ongoing utilization ng **[03:07:28.240] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002772) kanilang kasalukuyang budget for **[03:07:30.560] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002773) the school building program. And in 2027, kasama rin po sa ating consideration, **[03:07:37.340] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002774) ay yun pong school **[03:07:39.420] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002775) buildings that will be funded not only by the National **[03:07:43.160] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002776) Expenditure Program, but also through existing public-private partnerships na kasalukuyang pong **[03:07:49.640] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002777) ina-assess or in-evaluate. **[03:07:52.680] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002778) Ganon din po, Your Honor, Mr. Chair, ang naging dahilan sa **[03:07:57.460] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002779) DOH, **[03:07:58.380] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002780) lalo na po sa kanilang **[03:07:59.920] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002781) Health Facilities Enhancement Fund, na **[03:08:02.820] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002782) kasalukuyang hindi pa po nila **[03:08:04.640] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002783) naia-award. Kasalukuyang pa lang pong pinoprocure. **[03:08:08.020] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002784) At yun pong Medical Assistance to Indigent **[03:08:10.680] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002785) Patients ay ibinalik din po natin sa NEP level, hindi dahil ayaw po natin bigyan ang **[03:08:17.720] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002786) ating mga kababayan ng tulong, kundi ito po kasi ay iko-cover na supposedly ng Expanded Zero Balance Billing Program na **[03:08:25.700] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002787) sinoportahan naman po natin sa ilalim ng PhilHealth. **[03:08:29.240] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002788) As for the other agencies, Your Honor, Mr. Chair, aside from budget utilization, **[03:08:35.180] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002789) meron din pong mga one-time capital expenditure, katulad po ng ating mga state universities and colleges na **[03:08:42.940] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002790) hindi naman po mauulit sa 2027. Gayon din po yung mga release na ating kinoconsider outside the GAA, **[03:08:50.480] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002791) katulad na lamang po yung pag-settle natin ngayon lamang buwan na ito ng **[03:08:54.640] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002792) almost 10 billion in arrears from **[03:08:57.960] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002793) free higher education na **[03:09:00.240] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002794) magagamit po ng ating mga SUCs, hindi lamang po ngayong taon kundi maging hanggang **[03:09:05.000] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002795) 2027 para sa patuloy nilang operasyon at pagpapaunlad po ng kanilang mga pasilidad at serbisyo, Your Honor. **[03:09:14.060] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002796) Kung ganun po, if that is the case, well then my next question would be why **[03:09:19.800] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002797) is it that the budget for DPWH was increased by 112 billion when I understand that there are similar issues with absorptive capacity and **[03:09:31.600] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002798) underutilization, among others not including issues of corruption with **[03:09:36.340] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002799) the DPWH. **[03:09:39.480] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002800) Your Honor, Mr. Chair, dito po sa DPWH, these **[03:09:44.380] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002801) are different, not only different set of projects that are also non-recurring pero **[03:09:49.800] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002802) nakita po natin that these projects are implementation ready at gaya po nang nabanggit kanina **[03:09:55.820] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002803) will **[03:09:56.480] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002804) also contribute or will have a greater multiplier effect that's why the overall direction as **[03:10:02.520] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002805) part of the Build Better More program was to support **[03:10:05.120] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002806) also this infrastructure project so if taken side by with side, with the **[03:10:09.560] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002807) DepEd and HPEP yung po kasing capacity ng agencies to absorb or implement additional programs, **[03:10:15.900] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002808) additional funds for additional infrastructure projects ay **[03:10:20.020] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002809) kasama po dun sa atin pong consideration sa evaluation Your Honor, Mr. Chair. **[03:10:25.940] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002810) Thank you. Thank you for your inputs. **[03:10:28.600] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002811) Isa pa pong tanong, **[03:10:30.620] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002812) napansin din namin na sabay-sabay bumaba ang budget **[03:10:34.540] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002813) for DepEd, CHED, SUCs, **[03:10:37.680] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002814) TESDA, DOH, **[03:10:39.680] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002815) PhilHealth, and DSWD and **[03:10:42.860] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002816) this is all happening within **[03:10:44.780] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002817) the same budget cycle **[03:10:47.260] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002818) Napag-usapan ba ito? Is there a policy rationale for **[03:10:51.140] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002819) bringing down the budgets for these **[03:10:54.080] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002820) frontline departments of our government? **[03:10:57.940] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002821) Mr. Chair, Your Honor, wala pong isang straightforward reason or policy na bawasan po itong mga nabanggit na departments Again, dumaan po sa evaluation yung bawat isang programa po ng bawat isang department Again, for PhilHealth, **[03:11:15.280] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002822) Your Honor, Mr. Chair, kung atin pong ikukumpara yung kanilang 2027 NEP **[03:11:20.100] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002823) from the 2026 GAA, nasa 2026 GAA po kasi yung pagbabalik ng 60 billion na **[03:11:28.100] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002824) iniutos po ng Supreme Court That is why that's really a contributor, a one-time **[03:11:33.180] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002825) return of the 60 billion to PhilHealth **[03:11:36.060] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002826) Pagdating naman po sa **[03:11:38.620] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002827) DA, ganun din po yung naging consideration yung kanila pong implementation na kanilang farm-to-market roads and **[03:11:45.780] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002828) for the DSWD po ay ibinalik lamang po natin sa NEP level yung **[03:11:51.000] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002829) kanila pong provision for their **[03:11:53.240] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002830) AIC sa program. But there is no singular or unilateral rule, Your Honor na **[03:11:58.520] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002831) bawasan po yung mga budget po ng nabanggit na department, **[03:12:02.300] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002832) dumaan lamang po dun sa ating po evaluation and tinignan po natin yung status ang implementation ng **[03:12:08.520] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002833) kanila pong budget for the current year, Your Honor Mr. Chair. **[03:12:14.970] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002834) Isa pa pong tanong. **[03:12:17.110] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002835) I saw in the slide presentation that you gave the **[03:12:22.100] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002836) members of the committee this morning that **[03:12:24.910] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002837) your computation of **[03:12:26.810] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002838) the budget allocation for education ay **[03:12:30.790] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002839) nasa 3.99 percent ng GDP **[03:12:35.230] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002840) but **[03:12:36.030] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002841) sa **[03:12:37.050] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002842) aming mismong pag-estima ang **[03:12:40.090] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002843) nakita lang po namin is it only reaches around 3.3 percent **[03:12:46.110] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002844) May I know how you came out with this 3.99 of **[03:12:51.370] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002845) GDP number? **[03:12:54.620] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002846) Ano pong mga isinama niyong mga items **[03:12:58.240] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002847) doon? **[03:12:59.320] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002848) Mr. Chair, Your Honor kabilang po sa nakatag po under the education sector budget is aside po doon sa **[03:13:07.180] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002849) budget ng kani-kanyang mga national government agencies **[03:13:11.220] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002850) Nandyan din po yung budget **[03:13:13.740] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002851) allocated for education from the block grant that we are giving to the Bangsamoro Autonomous Region in Muslim Mindanao **[03:13:21.400] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002852) Gayon din po yung bahagi ng **[03:13:23.740] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002853) national tax allotment to the local government units that we can attribute to education as **[03:13:30.520] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002854) well as internally generated funds that are being retained by our state universities and colleges that are not remitted to **[03:13:37.380] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002855) the national treasury but they can actually spend it for education by 2027 Your Honor. **[03:13:45.100] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002856) So kasama rin po dyan ang mga halimbawa PNP Academy Philippine Military Academy **[03:13:52.440] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002857) Local Government Academies. **[03:13:54.880] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002858) Your Honor for 2027 hindi po kasama dito yung pong inyong nabanggit na Philippine Military Academy **[03:14:03.160] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002859) Local Government Academy so we only included agencies directly connected **[03:14:08.760] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002860) to basic and **[03:14:10.440] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002861) higher education including that implemented by our local government units **[03:14:17.700] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002862) I'm happy to hear that but I am still a bit **[03:14:21.720] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002863) disappointed that the computation does not only cover the **[03:14:26.120] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002864) core education **[03:14:27.240] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002865) agencies because if we were to compute it **[03:14:29.840] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002866) based on the core education agencies, sa tingin ko hindi po aabot ng **[03:14:35.000] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002867) 3.99 percent of the GDP yung **[03:14:38.340] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002868) computation na yan Mr. **[03:14:40.140] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002869) Chair while we can submit po the detailed list on how we came up with the 3.99 percent meron po kasing mga **[03:14:47.740] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002870) programa na at na **[03:14:50.000] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002871) kaakibat po ng basic education but were actually lodged directly sa iba pong mga ahensya katulad na lamang po ng school based feeding program ng DepEd hindi **[03:15:00.100] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002872) lamang po ang DepEd ang may component po sa school based feeding program meron po **[03:15:04.151] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002873) din po sa ilalim ng **[03:15:07.000] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002874) National Dairy Authority, ganun din po sa Philippine Carabao Center bilang bahagi po ng school based feeding program but we'd be happy to submit your honor Mr. Chair the detailed breakdown of the education sector budget. **[03:15:20.980] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002875) Thank you Mr. Chair we would welcome that just in closing we urge the committee to review and reprioritize funding **[03:15:28.160] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002876) for our schools, state universities, health **[03:15:31.080] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002877) services and social protection. **[03:15:33.080] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002878) Ang tunay na po sa foundation po **[03:15:35.380] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002879) ng **[03:15:35.687] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002880) isang mas matatag at maunlad na bansa **[03:15:38.240] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002881) ay ang pamumuhunan sa ating mga mamamayan, sa **[03:15:41.300] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002882) ating mga estudyante manggagawa, **[03:15:43.220] Rep. Jose Manuel Tadeo "Chel" I. Diokno** (h2r5-turn-002883) pamilya at komunidad. Maraming salamat Mr. Chair **[03:15:47.720] Rep. Albert S. Garcia** (h2r5-turn-002884) Maraming salamat Representative Diokno **[03:15:51.620] Rep. Albert S. Garcia** (h2r5-turn-002885) We now move to our next **[03:15:55.160] Rep. Albert S. Garcia** (h2r5-turn-002886) colleague **[03:15:56.260] Rep. Albert S. Garcia** (h2r5-turn-002887) from the majority may **[03:15:58.400] Rep. Albert S. Garcia** (h2r5-turn-002888) we call on **[03:16:00.080] Rep. Albert S. Garcia** (h2r5-turn-002889) Congressman Javi **[03:16:01.440] Rep. Albert S. Garcia** (h2r5-turn-002890) Benitez **[03:16:03.400] Rep. Albert S. Garcia** (h2r5-turn-002891) please proceed **[03:16:07.430] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-002892) Thank you Mr. Chair **[03:16:09.190] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-002893) and good day to our honorable secretaries so **[03:16:13.090] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-002894) this **[03:16:14.250] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-002895) representation I'd like to raise on a matter that is at heart and about keeping a promise so **[03:16:19.890] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-002896) last year the Philippine creative economy was valued at 2.12 trillion pesos **[03:16:25.390] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-002897) that is 7.6 percent of our gross domestic product it **[03:16:29.830] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-002898) supported 8.71 million jobs or **[03:16:34.290] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-002899) 17.8 percent **[03:16:35.314] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-002900) of **[03:16:38.386] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-002901) all Filipino workers **[03:16:41.150] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-002902) so these are the figures from the PSA for 2025 which reported growth of 6.9 percent **[03:16:47.090] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-002903) from 1.98 trillion pesos the year before and **[03:16:50.950] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-002904) yet Madam, Mr. Chair when I opened the 2027 national expenditure program I **[03:16:56.830] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-002905) see the opposite of ambition **[03:16:59.250] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-002906) the cultural center of the Philippines falls from 755.5 million this year to **[03:17:04.890] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-002907) 452 million next year the **[03:17:08.290] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-002908) film development council falls to 311.7 million the **[03:17:12.710] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-002909) national commission for culture and the arts drops from 775.7 million to **[03:17:17.690] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-002910) 152.9 million **[03:17:21.210] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-002911) the national book development board goes down to 165.2 million the **[03:17:26.970] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-002912) design center to 199.9 million and **[03:17:30.610] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-002913) the Malikhaing Pinoy program the flagship of **[03:17:33.510] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-002914) our **[03:17:34.070] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-002915) administration once funded 360 million then 100 million then **[03:17:40.650] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-002916) 50 million then **[03:17:42.070] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-002917) now Mr. Chair carries no line item at all zero **[03:17:46.950] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-002918) so all the creative agencies we track up add to 2.24 billion pesos that **[03:17:52.750] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-002919) is roughly three hundredths of **[03:17:55.170] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-002920) 1 percent of **[03:17:56.630] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-002921) a 7.2 trillion peso budget **[03:17:59.550] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-002922) and this brings me to the promise Mr. Chair Republic Act 12023 says in plain language that 5 percent of **[03:18:06.270] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-002923) the incremental revenue from the VAT on digital service providers shall be allocated and **[03:18:11.270] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-002924) used exclusively for **[03:18:12.790] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-002925) the development of the creative industries as defined by Republic Act 11904 for the first five years **[03:18:19.990] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-002926) and **[03:18:20.670] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-002927) I hold a certification **[03:18:21.450] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-002928) from **[03:18:22.010] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-002929) the Bureau of Internal Revenue dated March 2, 2026 transmitted **[03:18:26.530] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-002930) to Secretary Go by the Commissioner it **[03:18:30.610] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-002931) certifies that from August to December 2025 the BIR collected 6.361 billion pesos and 85 centavos in VAT from non-resident digital services providers on **[03:18:43.190] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-002932) business to consumer transactions **[03:18:45.190] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-002933) the 5 percent share for the creative industries is certified at 318 million **[03:18:49.730] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-002934) 82,096 pesos and 74 centavos so **[03:18:56.330] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-002935) during last year's DBCC briefing Mr. Chair this representation secured commitments on the record that this 5 percent share would be implemented ang **[03:19:05.670] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-002936) sabi po nila marireflect po ito sa NEP 2027 I **[03:19:09.190] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-002937) will not name names today and I will only ask what we **[03:19:13.330] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-002938) what we **[03:19:14.510] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-002939) honor what was said so **[03:19:16.650] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-002940) allow me respectfully to ask a few questions first to the Department of Finance to Secretary Go who **[03:19:24.190] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-002941) is actually a good friend of my father's they played badminton before and I'd **[03:19:29.290] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-002942) like to respectfully ask will the Department validate on the record that **[03:19:33.690] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-002943) 318,082,096 pesos **[03:19:37.330] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-002944) has been collected and certified **[03:19:41.330] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-002945) and will you state that the total digital VAT collected to date including 2026 and the running 5 share the creative industries are owed so basically Mr. Secretary if you can confirm that certification from BIR and what is the number of collections to date. **[03:20:02.630] DOF Secretary Frederick D. Go** (h2r5-turn-002946) Thank you Mr. Chair Your Honor will verify just before I confirm **[03:20:10.760] DOF Secretary Frederick D. Go** (h2r5-turn-002947) ... **[03:20:29.730] DOF Secretary Frederick D. Go** (h2r5-turn-002948) Your honor, I think could we kindly indulge you to repeat the number just so that I **[03:20:34.370] DOF Secretary Frederick D. Go** (h2r5-turn-002949) think there's some confusion **[03:20:36.230] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-002950) Yes **[03:20:39.070] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-002951) 318,082,096 pesos has **[03:20:43.110] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-002952) been collected and certified so this is **[03:20:46.830] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-002953) Mr. Chair let me pull up the certification **[03:20:50.330] DOF Secretary Frederick D. Go** (h2r5-turn-002954) I **[03:20:59.840] DOF Secretary Frederick D. Go** (h2r5-turn-002955) think your number sounds correct **[03:21:02.700] DOF Secretary Frederick D. Go** (h2r5-turn-002956) I'm **[03:21:03.300] DOF Secretary Frederick D. Go** (h2r5-turn-002957) sorry but we don't have a document to **[03:21:05.660] DOF Secretary Frederick D. Go** (h2r5-turn-002958) that has that exact number **[03:21:08.260] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-002959) Mr. Chair, Secretary Go... **[03:21:10.290] DOF Secretary Frederick D. Go** (h2r5-turn-002959-split-2) Yes here **[03:21:12.320] DOF Secretary Frederick D. Go** (h2r5-turn-002960) 318 million 082 **[03:21:15.380] DOF Secretary Frederick D. Go** (h2r5-turn-002961) 096 **[03:21:16.880] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-002962) Yes from August to December 2025 there is certification signed by **[03:21:22.160] DOF Secretary Frederick D. Go** (h2r5-turn-002963) Yes we are confirming, we are confirming, 318 million **[03:21:25.270] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-002964) and may we also have the number from because it's only until December 2025 the running collections to date **[03:21:33.130] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-002965) even half a year if there's any **[03:21:37.730] DOF Secretary Frederick D. Go** (h2r5-turn-002966) so 5 percent of 9.4 billion **[03:21:41.860] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-002967) Okay **[03:21:42.288] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-002968) thank you Mr. **[03:21:43.572] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-002969) Mr. Chair, second **[03:21:44.680] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-002970) has a special account in the general fund for this been earmarked and created **[03:21:51.920] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-002971) as of this hearing I can find no issuance from the DBM DOF or the treasury that creates it and I'll be happy to be corrected **[03:22:00.640] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-002972) Mr. Secretary Mr. Chair I believe may we also ask Mr. **[03:22:07.240] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-002973) Secretary of DBM **[03:22:09.620] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002974) Mr. Chair your Honor based on records we are currently working with DTI for **[03:22:15.040] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002975) the setting up of the respective UACS code so that the SAGF for this account to be properly established so **[03:22:22.980] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002976) we're working with DTI on this matter your Honor **[03:22:26.660] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-002977) Thank you Mr. Chair and thank you Secretary Kim Once the account exists I just want to put on record that to **[03:22:37.100] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-002978) answer to this will the 5 percent share flow **[03:22:40.240] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-002979) as automatic appropriations given that it is a statutory earmark of **[03:22:44.960] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-002980) a special fund if **[03:22:46.740] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-002981) the position of the DBM is that it requires annual appropriations cover I ask you to cite the legal basis please and **[03:22:53.060] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-002982) to commit to reflecting the full amount either way so **[03:22:55.980] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-002983) basically Mr. Chair the collections of this nakalagay po sa ating batas na dapat ilagay sa special fund na may special automatic appropriations pero nakolek po siya pero hindi pa na like **[03:23:09.680] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-002984) create ang fund so **[03:23:11.860] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-002985) we are asking our good Honorable Secretaries if they can commit that this will be created and if this will be funded automatically **[03:23:23.020] Rep. Albert S. Garcia** (h2r5-turn-002986) Please respond. **[03:23:30.280] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002987) Mr. Chair your Honor will be conferring with our colleagues with DOF on the proper booking but we are also referring to **[03:23:38.340] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002988) section 19 of the law which created the creative industry development fund **[03:23:47.120] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002989) which refers to where possibly the funds will accrue but definitely your Honor we'll **[03:23:53.160] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-002990) finalize as well and collaborate with our colleagues from the BTR and DOF to finalize the arrangement for the fund your Honor so **[03:24:03.270] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-002991) Mr. Chair I'd like to invite our colleagues on this ito **[03:24:07.870] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-002992) po ay hindi tungkol sa gastos mismo pero **[03:24:11.710] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-002993) ito tungkol sa ating talino at **[03:24:15.030] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-002994) sa sining ng ating Pilipino **[03:24:17.870] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-002995) I believe that we are a creative nation and if we invest in our creative industries as mentioned of gaano kalaki ang binibigay ng ating mga creative workforces **[03:24:27.810] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-002996) from in **[03:24:29.870] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-002997) all creative **[03:24:31.650] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-002998) industries malaki po ang mabibigay na halaga para sa ating bansa para **[03:24:36.610] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-002999) sama-sama nating isulong ang mas malikhaing kinabukasan para sa Pilipinas **[03:24:41.690] Rep. Albert S. Garcia** (h2r5-turn-003000) Thank you **[03:24:42.410] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-003001) Thank you **[03:24:43.790] Rep. Albert S. Garcia** (h2r5-turn-003002) Cong. Benitez your time is up **[03:24:47.870] Rep. Albert S. Garcia** (h2r5-turn-003003) and we **[03:24:49.410] Rep. Albert S. Garcia** (h2r5-turn-003004) will monitor the creation of such fund as **[03:24:55.610] Rep. Albert S. Garcia** (h2r5-turn-003005) said by Secretary Kim maraming salamat po **[03:25:00.290] Rep. Albert S. Garcia** (h2r5-turn-003006) so next can **[03:25:03.050] Rep. Albert S. Garcia** (h2r5-turn-003007) we call on the Honorable **[03:25:05.570] Rep. Albert S. Garcia** (h2r5-turn-003008) Leila de Lima **[03:25:07.630] Rep. Albert S. Garcia** (h2r5-turn-003009) Ma'am please proceed **[03:25:08.350] Rep. Leila M. de Lima** (h2r5-turn-003010) maraming salamat po Mr. Chair good afternoon **[03:25:11.910] Rep. Leila M. de Lima** (h2r5-turn-003011) I'll start with unprogrammed appropriations just a few questions on **[03:25:17.870] Rep. Leila M. de Lima** (h2r5-turn-003012) UA items before I go to other items **[03:25:21.450] Rep. Leila M. de Lima** (h2r5-turn-003013) So sa UA, why does **[03:25:24.480] Rep. Leila M. de Lima** (h2r5-turn-003014) the Executive Department insist on including **[03:25:28.840] Rep. Leila M. de Lima** (h2r5-turn-003015) unprogrammed appropriations in its annual NEP **[03:25:31.220] Rep. Leila M. de Lima** (h2r5-turn-003016) despite **[03:25:33.120] Rep. Leila M. de Lima** (h2r5-turn-003017) serious constitutional issues involved **[03:25:36.840] Rep. Leila M. de Lima** (h2r5-turn-003018) I think you are aware of the pending petitions before the Supreme Court there are four **[03:25:41.420] Rep. Leila M. de Lima** (h2r5-turn-003019) consolidated petitions before the Supreme Court questioning the constitutionality of **[03:25:47.700] Rep. Leila M. de Lima** (h2r5-turn-003020) unprogrammed appropriations so **[03:25:50.540] Rep. Leila M. de Lima** (h2r5-turn-003021) why is it always the mindset of **[03:25:53.980] Rep. Leila M. de Lima** (h2r5-turn-003022) the Executive Department to include **[03:25:57.120] Rep. Leila M. de Lima** (h2r5-turn-003023) unprogrammed appropriations is the core position of the economic managers or the DBCC that **[03:26:04.760] Rep. Leila M. de Lima** (h2r5-turn-003024) unprogrammed appropriations are an **[03:26:08.960] Rep. Leila M. de Lima** (h2r5-turn-003025) absolute necessity **[03:26:13.450] Rep. Leila M. de Lima** (h2r5-turn-003026) kailangan po ba talaga **[03:26:15.490] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003027) Mr. Chair your honor the inclusion of the unprogrammed appropriations in the **[03:26:21.490] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003028) National Expenditure Program recognizes both the **[03:26:25.490] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003029) need for the projects to be funded under the unprogrammed appropriations which by the very nature are **[03:26:31.490] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003030) still contingent and depending on the triggers as we have proposed in the NEP while we are cognizant that there are **[03:26:39.970] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003031) petitions being heard or heard by the Supreme Court the **[03:26:44.950] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003032) Executive maintains but upon submission of the UA has **[03:26:48.890] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003033) limited the **[03:26:49.870] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003034) proposed uses of the unprogrammed appropriations to **[03:26:54.290] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003035) only those which **[03:26:55.870] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003036) are really necessity for 2027 among **[03:26:59.190] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003037) others we have limited the proposed use to only four including **[03:27:03.170] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003038) those for foreign assisted projects that are not yet approved by **[03:27:07.750] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003039) the ED Council at the time the budget was prepared **[03:27:11.050] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003040) as well as for some **[03:27:13.190] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003041) contingency for risk management for our PPP projects and **[03:27:17.230] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003042) the partial restoration of the fund balance of the PDIC Your Honor Mr. Chair **[03:27:22.630] Rep. Leila M. de Lima** (h2r5-turn-003043) Yes, this representation does note the fact that comparatively compared **[03:27:26.430] Rep. Leila M. de Lima** (h2r5-turn-003044) with the UAs in the previous years the **[03:27:30.470] Rep. Leila M. de Lima** (h2r5-turn-003045) items now are lesser it seems that the Executive is now more circumspect about **[03:27:37.150] Rep. Leila M. de Lima** (h2r5-turn-003046) the inclusion of unprogrammed appropriations in the in **[03:27:41.470] Rep. Leila M. de Lima** (h2r5-turn-003047) the NEP because you know since the 2026 NEP deliberations this representation has **[03:27:48.130] Rep. Leila M. de Lima** (h2r5-turn-003048) been consistently opposing **[03:27:51.390] Rep. Leila M. de Lima** (h2r5-turn-003049) unprogrammed appropriations just to be very clear hindi ko po sinasabi na bawasan ito, hindi ko rin po sinasabi na i-zero ito **[03:27:59.590] Rep. Leila M. de Lima** (h2r5-turn-003050) pero ang pinaka-position ko po ay kailangan ho ay tanggalin nang tuluyan **[03:28:04.970] Rep. Leila M. de Lima** (h2r5-turn-003051) pero meron pa rin ho **[03:28:06.070] Rep. Leila M. de Lima** (h2r5-turn-003052) you know in the 2027 NEP we **[03:28:09.510] Rep. Leila M. de Lima** (h2r5-turn-003053) have the 57 billion for restoring the fund balances of the Philippine Deposit Insurance Corporation we **[03:28:16.310] Rep. Leila M. de Lima** (h2r5-turn-003054) have also the 42.553 billion for **[03:28:20.490] Rep. Leila M. de Lima** (h2r5-turn-003055) support to foreign assisted projects meron din po yung 3.6 billion for the program on risk management **[03:28:27.750] Rep. Leila M. de Lima** (h2r5-turn-003056) Doon po sa restoring the fund balances of the PDIC **[03:28:31.170] Rep. Leila M. de Lima** (h2r5-turn-003057) hindi po ba fixed na po ang halaga nito? **[03:28:33.550] Rep. Leila M. de Lima** (h2r5-turn-003058) Alam na po ang purpose, walang tanong, walang haka-haka **[03:28:37.370] Rep. Leila M. de Lima** (h2r5-turn-003059) so bakit po hindi ito nakalagay sa programmed appropriations na lang? **[03:28:42.890] Rep. Leila M. de Lima** (h2r5-turn-003060) Since nandyan na **[03:28:45.030] Rep. Leila M. de Lima** (h2r5-turn-003061) Is there any particular reason why you chose to put them in the unpaid in the unprogrammed appropriations item **[03:28:53.582] Rep. Leila M. de Lima** (h2r5-turn-003062) Ganoon din po **[03:28:53.878] Rep. Leila M. de Lima** (h2r5-turn-003063) sa support to foreign assisted projects. Alin po sa mga proyekto nito ang **[03:28:59.190] Rep. Leila M. de Lima** (h2r5-turn-003064) perfected loan agreement na at **[03:29:02.940] Rep. Leila M. de Lima** (h2r5-turn-003065) ilan po ang inaasahang magiging be effective sa loob ng 2027 **[03:29:06.360] Rep. Leila M. de Lima** (h2r5-turn-003066) fiscal year **[03:29:08.960] Rep. Leila M. de Lima** (h2r5-turn-003067) 2027 **[03:29:10.910] Rep. Leila M. de Lima** (h2r5-turn-003068) kung identified na po ang proyekto **[03:29:13.750] Rep. Leila M. de Lima** (h2r5-turn-003069) bakit **[03:29:14.540] Rep. Leila M. de Lima** (h2r5-turn-003071) hindi na lang ito ilagay ang funding directly sa the budget ng **[03:29:19.380] Rep. Leila M. de Lima** (h2r5-turn-003072) implementing agency **[03:29:21.490] Rep. Leila M. de Lima** (h2r5-turn-003073) I **[03:29:22.330] Rep. Leila M. de Lima** (h2r5-turn-003074) have really very serious constitutional question **[03:29:24.820] Rep. Leila M. de Lima** (h2r5-turn-003075) about unprogrammed appropriations foremost of which is an undue delegation of the Congress's power **[03:29:32.530] Rep. Leila M. de Lima** (h2r5-turn-003076) of the purse and **[03:29:35.120] Rep. Leila M. de Lima** (h2r5-turn-003077) isa pang tanong ko po bago nyo po sagutin yung mga una kong **[03:29:39.410] Rep. Leila M. de Lima** (h2r5-turn-003078) tanong paano po ba **[03:29:42.540] Rep. Leila M. de Lima** (h2r5-turn-003079) kung **[03:29:43.890] Rep. Leila M. de Lima** (h2r5-turn-003080) na-enact na po **[03:29:46.620] Rep. Leila M. de Lima** (h2r5-turn-003081) 2027 GAA tapos **[03:29:49.440] Rep. Leila M. de Lima** (h2r5-turn-003082) ipawalang bisa o paliitin ng **[03:29:53.000] Rep. Leila M. de Lima** (h2r5-turn-003083) korte ang **[03:29:54.480] Rep. Leila M. de Lima** (h2r5-turn-003084) UA mechanism ano **[03:29:56.030] Rep. Leila M. de Lima** (h2r5-turn-003085) po ba ang contingency ng executive para sa budget execution may **[03:30:00.970] Rep. Leila M. de Lima** (h2r5-turn-003086) the naihanda DBM in coordination with DOF **[03:30:06.140] Rep. Leila M. de Lima** (h2r5-turn-003087) the **[03:30:07.340] Rep. Leila M. de Lima** (h2r5-turn-003088) alternative funding pathway have **[03:30:11.540] Rep. Leila M. de Lima** (h2r5-turn-003089) you thought of **[03:30:15.000] Rep. Leila M. de Lima** (h2r5-turn-003090) that possible **[03:30:16.940] Rep. Leila M. de Lima** (h2r5-turn-003091) scenario **[03:30:17.820] Rep. Albert S. Garcia** (h2r5-turn-003092) Sec. Kim, please reply **[03:30:20.170] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003093) Mr. Chair your honor as to the purposes mentioned by Your honor ito po ay nakabatay unlike po halimbawa sa PDIC Unlike sa PhilHealth po na meron na pong po ang directive ang Supreme Court, ito po ay isang standby lamang po na kung sakaling there will be a **[03:30:35.590] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003094) directive and the executive would stand ready to comply kung kailangan na po pong isauli ito pong fund **[03:30:43.220] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003095) fund balances from PDIC as **[03:30:46.110] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003096) to the observations of Your Honor on the foreign assisted projects, kung **[03:30:50.600] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003097) mapapansin po ninyo sa National Expenditure program at nabanggit po namin kanina, the **[03:30:55.390] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003098) projects included here are the loan proceeds components of projects that are **[03:31:00.060] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003099) still under assessment of the ICC, the **[03:31:04.600] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003100) ED Council, or those pending actual signing of the loan agreement. **[03:31:09.040] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003101) However, we wish to note, bagamat tama po ang observation ni Honorable De Lima na **[03:31:13.940] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003102) identified naman po yung projects covered by this one, **[03:31:18.180] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003103) kaya yun po yung dahilan kung bakit po yung GOP or Government of the Philippines counterpart ay nasa loob na po ng program budget. Ito po ay para, yun nga po, maumpisahan na po **[03:31:31.446] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003104) yung mga necessary preliminary works, design works, kung sakaling mapirmahan na po **[03:31:35.029] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003105) yung loan agreement anytime by 2027. Pero bakit nga po ba **[03:31:38.200] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003106) inilagay pa muna po natin sa unprogrammed appropriations, **[03:31:42.760] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003107) ito pong mga foreign assisted projects na wala pang **[03:31:45.860] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003108) pirmadong loan agreement at the time we prepared the NEP. Kasi ito po without the certainty kung **[03:31:51.660] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003109) kailan po mapipirmahan yung loan agreement by placing it inside the program, **[03:31:55.920] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003110) definitely may mababump off po ulit. **[03:31:59.120] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003111) Because this is a zero-sum game, **[03:32:01.080] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003112) it will still be part of the 7.2. Kung **[03:32:03.960] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003113) hindi pa naman po ganun ka-certain kung kailan talaga mapipirmahan yung loan agreement, **[03:32:09.080] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003114) ay inilagay po muna siya doon sa unprogrammed appropriations. Dahil po yung **[03:32:13.980] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003115) inilagay po natin sa programmed appropriations, ay yun pong mga pirmado, ongoing na po, nating mga foreign assisted projects. As to the question, Your Honor, Mr. Chair, **[03:32:24.780] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003116) whether we **[03:32:26.860] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003117) are ready, kung magkaroon, man po ng desisyon ang Supreme Court, definitely po, the executive stands ready to **[03:32:33.380] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003118) comply with whatever decision **[03:32:36.600] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003119) the Supreme Court will have on the pending case relative **[03:32:41.120] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003120) to unprogrammed appropriations. **[03:32:43.960] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003121) Gaya nga po ng nasabi natin, for instance, halimbawa, Mr. Chair, sa foreign assisted projects, yun naman pong ating **[03:32:51.260] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003122) GOP counterpart para po dito sa mga proyektong nasa unprogrammed ay nandun po sa respective agency budget. So makapagsisimula pa rin naman po ng mga paunang gawain, what **[03:33:02.040] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003123) we will have to work out, Your Honor, and prepare for is for the loan proceeds component because **[03:33:07.040] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003124) once the loan agreements are signed, **[03:33:09.780] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003125) the respective loans will be deemed active at **[03:33:13.860] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003126) kailangan din po nating maisagawa. Yun pong mga proyektong na i-commit po natin, Your Honor. **[03:33:20.080] Rep. Leila M. de Lima** (h2r5-turn-003127) So wala pa po mga perfected loan agreements, **[03:33:24.740] Rep. Leila M. de Lima** (h2r5-turn-003128) itong nandito ngayon sa 2027 NEP. **[03:33:27.800] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003129) For projects under the unprogrammed appropriations, Your Honor, Mr. Chair, yun po yung wala pa pong signed loan agreement. Those under the UA, Your Honor, Mr. Chair. **[03:33:37.780] Rep. Leila M. de Lima** (h2r5-turn-003130) Tungkol naman po sa UA releases in the past years, **[03:33:41.300] Rep. Leila M. de Lima** (h2r5-turn-003131) sinabi po ng DBCC sa fiscal risk statement na **[03:33:46.860] Rep. Leila M. de Lima** (h2r5-turn-003132) delayed ang mga foreign assisted projects dahil nilagay sila sa UA. Meron ho bang ganon? **[03:33:53.860] Rep. Leila M. de Lima** (h2r5-turn-003133) Ano po ba yung mga foreign assisted projects **[03:33:58.051] Rep. Leila M. de Lima** (h2r5-turn-003134) na na-delay dahil **[03:33:59.425] Rep. Leila M. de Lima** (h2r5-turn-003135) nilagay sila sa UA? Are there situations like that? **[03:34:03.120] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003136) Mr. Chair, Your Honor, isa po sa pinaka mabilis po na example that we can cite doon po sa naapektuhan yung implementation na **[03:34:11.720] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003137) foreign assisted project, ay yun pong dalawang railway projects being implemented by **[03:34:16.640] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003138) the DOTR. Dahil po sa pagbaba noon pong **[03:34:20.140] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003139) allocation authorized in the GAA sa **[03:34:23.780] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003140) loan proceeds at sa **[03:34:25.880] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003141) GOP counterpart, naka-apekto po ito doon po sa timely implementation of the projects. **[03:34:31.600] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003142) Mas malaki po, Your Honor, yung epekto nung pagbaba ng GOP counterpart dahil **[03:34:36.400] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003143) kapag yung mga right-of-way acquisition necessary **[03:34:39.440] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003144) for the implementation of the projects, Your Honor, yun pong maa-apektuhan, **[03:34:43.860] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003145) it will cause a further delay. **[03:34:46.040] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003146) Dahil kung hindi po ma-acquire yung right-of-way, hindi po makakapag-umpisa yung construction at **[03:34:52.060] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003147) makaka-apekto po ito sa overall status of the projects, **[03:34:55.880] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003148) Your Honor. **[03:34:56.100] Rep. Leila M. de Lima** (h2r5-turn-003148-split-2) So they remain delayed? **[03:34:59.040] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003149) Kaya po may delay po itong mga projects ito. And that is also the reason why, Your Honor, Mr. Chair, if I may, yun po yung reason kung bakit talaga pong mataas din ngayon yung proposed level for **[03:35:12.880] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003150) DOTRs, NSCR, and MMSP para **[03:35:15.960] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003151) nga po maisakatuparan yun pong ating target na partial operability, **[03:35:20.160] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003152) particularly of NSCR North segment by **[03:35:23.720] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003153) end of 2027, Your Honor, Mr. Chair. **[03:35:27.020] Rep. Leila M. de Lima** (h2r5-turn-003154) Thank you for that. **[03:35:27.700] Rep. Leila M. de Lima** (h2r5-turn-003155) Let's go to fiscal transfers to LGUs on top of the NTA or **[03:35:33.060] Rep. Leila M. de Lima** (h2r5-turn-003156) the National Tax Allotment. **[03:35:35.100] Rep. Leila M. de Lima** (h2r5-turn-003157) Mr. Chair, the NTA rises **[03:35:38.720] Rep. Leila M. de Lima** (h2r5-turn-003158) from 1.19 trillion in **[03:35:41.960] Rep. Leila M. de Lima** (h2r5-turn-003159) the 2026 GAA to **[03:35:44.160] Rep. Leila M. de Lima** (h2r5-turn-003160) 1.32 trillion in the 2027 NEP. **[03:35:48.000] Rep. Leila M. de Lima** (h2r5-turn-003161) And of course, that is a statutory share. **[03:35:50.560] Rep. Leila M. de Lima** (h2r5-turn-003162) That is a statutory mandate. **[03:35:53.200] Rep. Leila M. de Lima** (h2r5-turn-003163) We understand that to be. **[03:35:55.120] Rep. Leila M. de Lima** (h2r5-turn-003164) But on top of that, **[03:35:57.020] Rep. Leila M. de Lima** (h2r5-turn-003165) the NEP carries 58.5 billion under the LGSF. Ito na lang po yung mga magiging tanong ko for this **[03:36:04.640] Rep. Leila M. de Lima** (h2r5-turn-003166) round. **[03:36:06.660] Rep. Leila M. de Lima** (h2r5-turn-003167) 9.7 billion for NTF-ELCAC. **[03:36:09.960] Rep. Leila M. de Lima** (h2r5-turn-003168) 37.5 billion for FALGU. **[03:36:12.840] Rep. Leila M. de Lima** (h2r5-turn-003169) 10.3 billion for the GEF. **[03:36:15.720] Rep. Leila M. de Lima** (h2r5-turn-003170) The GEF meaning the Growth Equity Fund. **[03:36:20.000] Rep. Leila M. de Lima** (h2r5-turn-003171) Wala po sa mga batas ang mga ito. **[03:36:23.100] Rep. Leila M. de Lima** (h2r5-turn-003172) They're discretionary. **[03:36:24.360] Rep. Leila M. de Lima** (h2r5-turn-003173) But of course, if they are part of the GAA, then they are part of the law because GAA is a law, a general law. But before that, wala pong batas para sa mga ito. **[03:36:34.840] Rep. Leila M. de Lima** (h2r5-turn-003174) Over and above what the Constitution and the Local Government Code already guarantee. **[03:36:40.060] Rep. Leila M. de Lima** (h2r5-turn-003175) Sa inyo pong 2026 Fiscal Risk Statement, **[03:36:44.340] Rep. Leila M. de Lima** (h2r5-turn-003176) you can correct me po if I'm wrong, sinabi po nyo doon na sobra na ang mga pondo ng mga LGUs. **[03:36:51.100] Rep. Leila M. de Lima** (h2r5-turn-003177) Tama po ba ito? **[03:36:53.580] Rep. Albert S. Garcia** (h2r5-turn-003178) Thank you very much, Honorable. **[03:36:56.500] Rep. Albert S. Garcia** (h2r5-turn-003179) De Lima, that will be the last question for this round. **[03:37:00.200] Rep. Albert S. Garcia** (h2r5-turn-003180) Secretary Kim, please reply. **[03:37:04.200] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003181) Mr. Chair, Your Honor, relative to the observation of the Honorable De Lima on additional fiscal transfers to LGUs on **[03:37:11.720] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003182) top of NTA, **[03:37:12.900] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003183) bagamat meron po tayong ma-obserbahan na pattern that probably for some higher income LGUs, there might be some **[03:37:20.080] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003184) possible surpluses or excess revenue or income. **[03:37:25.380] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003185) Yung inequality pa rin po across LGUs yung isang importante nating mapagtuunan ng pansin. **[03:37:31.180] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003186) As a matter of fact, sa ngayon po, meron pa rin tayong mga **[03:37:34.340] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003187) 4th and 5th class municipalities. That's why **[03:37:37.300] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003188) kahit po nagkaroon po ng pagtaas ng NTA dahil sa ating implementasyon ng Mandanas-Garcia ruling ng Supreme Court, **[03:37:45.660] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003189) nananatili pong hindi sapat ang national tax allotments po ng ating mga 4th and 5th class **[03:37:51.100] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003190) local government units. Ito po yung reason, Mr. **[03:37:54.600] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003191) Chair, Your Honor, **[03:37:56.500] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003192) kung bakit meron tayong growth equity fund. **[03:37:58.520] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003193) Ito po yung isang mekanismo under the executive order implementing the Mandanas-Garcia ruling para **[03:38:04.460] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003194) atin pong matulungan yung **[03:38:07.440] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003195) atin pong mga 4th and 5th class LGUs na matugunan yung mga actual devolved functions. As to the other **[03:38:15.220] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003196) items under the local... **[03:38:17.200] Rep. Leila M. de Lima** (h2r5-turn-003197) So you're not confirming na **[03:38:19.460] Rep. Leila M. de Lima** (h2r5-turn-003198) sumusobra ng pondo para sa mga LGUs? **[03:38:22.900] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003199) Well, we are not saying that in general, Your Honor, because... probably at an aggregate level, pero pag titignan po natin at hihimayin on a per-income classification, definitely the lower income LGUs still require some level of assistance from **[03:38:38.740] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003200) the national government. Even the transition po **[03:38:41.140] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003201) under the executive order is different for those 4th and 5th class local government units, Mr. Chair, Your Honor. **[03:38:49.040] Rep. Leila M. de Lima** (h2r5-turn-003202) Thank **[03:38:49.640] Rep. Leila M. de Lima** (h2r5-turn-003203) you. My time **[03:38:50.280] Rep. Leila M. de Lima** (h2r5-turn-003204) is up. **[03:38:51.180] Rep. Albert S. Garcia** (h2r5-turn-003205) Salamat po. **[03:38:52.260] Rep. Albert S. Garcia** (h2r5-turn-003206) Salamat po. **[03:38:54.000] Rep. Albert S. Garcia** (h2r5-turn-003207) Thank you, Honorable De Lima. Thank you, Secretary Kim. **[03:38:57.780] Rep. Albert S. Garcia** (h2r5-turn-003208) We now move to the next congressman **[03:39:02.620] Rep. Albert S. Garcia** (h2r5-turn-003209) that will ask questions. May we call on Representative **[03:39:07.160] Rep. Albert S. Garcia** (h2r5-turn-003210) Mark Cojuangco? **[03:39:12.450] Rep. Albert S. Garcia** (h2r5-turn-003211) Cong. Mark? **[03:39:14.880] Rep. Mark O. Cojuangco** (h2r5-turn-003212) Sorry. **[03:39:15.660] Rep. Albert S. Garcia** (h2r5-turn-003213) Please proceed. **[03:39:16.920] Rep. Mark O. Cojuangco** (h2r5-turn-003214) Thank you. **[03:39:20.630] Rep. Mark O. Cojuangco** (h2r5-turn-003215) Comments from Secretary Frederick Go of DOF, **[03:39:26.870] Rep. Mark O. Cojuangco** (h2r5-turn-003216) Kim Delin of DBM, **[03:39:29.370] Rep. Mark O. Cojuangco** (h2r5-turn-003217) Secretary Kim Delin, Secretary Arsenio Balisacan, of **[03:39:33.490] Rep. Mark O. Cojuangco** (h2r5-turn-003218) DepDev **[03:39:35.150] Rep. Mark O. Cojuangco** (h2r5-turn-003219) Question ko po, **[03:39:37.550] Rep. Mark O. Cojuangco** (h2r5-turn-003220) nabanggit po yung right of way **[03:39:39.670] Rep. Mark O. Cojuangco** (h2r5-turn-003221) kanina. **[03:39:43.720] Rep. Mark O. Cojuangco** (h2r5-turn-003222) If a congressman **[03:39:45.700] Rep. Mark O. Cojuangco** (h2r5-turn-003223) wants to concentrate on right of way so **[03:39:50.360] Rep. Mark O. Cojuangco** (h2r5-turn-003224) that all his **[03:39:52.860] Rep. Mark O. Cojuangco** (h2r5-turn-003225) intended projects already **[03:39:56.360] Rep. Mark O. Cojuangco** (h2r5-turn-003226) have right of way **[03:39:57.660] Rep. Mark O. Cojuangco** (h2r5-turn-003227) for succeeding years, **[03:40:01.240] Rep. Mark O. Cojuangco** (h2r5-turn-003228) is it possible? **[03:40:02.640] Rep. Mark O. Cojuangco** (h2r5-turn-003229) Can... **[03:40:03.600] Rep. Mark O. Cojuangco** (h2r5-turn-003230) Can... **[03:40:04.100] Rep. Mark O. Cojuangco** (h2r5-turn-003231) Can the budget be made to... Because real **[03:40:08.600] Rep. Mark O. Cojuangco** (h2r5-turn-003232) estate values are going up all **[03:40:11.760] Rep. Mark O. Cojuangco** (h2r5-turn-003233) the time. **[03:40:13.040] Rep. Mark O. Cojuangco** (h2r5-turn-003234) And eventually, it becomes too expensive, no? For **[03:40:17.640] Rep. Mark O. Cojuangco** (h2r5-turn-003235) the project to be viable. **[03:40:20.020] Rep. Mark O. Cojuangco** (h2r5-turn-003236) Second question is, **[03:40:22.060] Rep. Mark O. Cojuangco** (h2r5-turn-003237) what about open spaces for **[03:40:24.440] Rep. Mark O. Cojuangco** (h2r5-turn-003238) barangays? **[03:40:26.760] Rep. Mark O. Cojuangco** (h2r5-turn-003239) Will the DOF and the DBM allow this? **[03:40:32.660] Rep. Mark O. Cojuangco** (h2r5-turn-003240) Yun lang muna. Yun lang muna, Mr. Chair. **[03:40:36.670] Rep. Albert S. Garcia** (h2r5-turn-003241) Yes. **[03:40:37.220] Rep. Albert S. Garcia** (h2r5-turn-003241-split-2) Ah **[03:40:37.480] Rep. Albert S. Garcia** (h2r5-turn-003242) Sec. Kim **[03:40:38.220] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003243) Mr. Chair, Your Honor, as to right of way acquisition, yun pong ating dalawang pinakamalaking infrastructure agencies, particularly DPWH and DOTR, **[03:40:49.420] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003244) ay meron pong karampatang appropriations every year for right of way acquisition precisely **[03:40:56.020] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003245) to prepare for **[03:40:57.840] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003246) the projects that it intends to implement. Sa akibat po ito ng kanilang **[03:41:01.940] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003247) site development and preparation, kasabay na rin po kung meron pong karampatang feasibility studies to prepare for the respective projects. Hindi **[03:41:11.380] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003248) po ganun ang naging implementation in past years. **[03:41:17.180] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003249) Ang nangyari po, binabarat ang right **[03:41:21.060] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003250) of way. **[03:41:22.160] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003251) Meron ngang may **[03:41:24.060] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003252) civil works na walang right of way. So, hindi implementable ang **[03:41:29.340] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003253) project. **[03:41:30.580] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003254) So, we want to reverse that situation. We want, if **[03:41:35.920] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003255) the representative of the district wants to **[03:41:40.180] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003256) buy all the right of way before any **[03:41:44.040] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003257) appropriations are made for civil works, is that a possibility? **[03:41:50.850] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003258) As to possibility, Your Honor, yun po yung idea. Na ready po dapat yung right of way. Baka po ang problema is if the **[03:41:58.130] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003259) issue is a matter of settling or paying for the right of way, meron po kasi tayong sinusunod na batas. On how government will acquire right of way in the valuation. That's not **[03:42:09.250] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003260) the problem, sir. **[03:42:10.190] Rep. Mark O. Cojuangco** (h2r5-turn-003260-split-2) The problem was in previous **[03:42:12.030] Rep. Mark O. Cojuangco** (h2r5-turn-003261) GAA discussions in Congress, **[03:42:18.850] Rep. Mark O. Cojuangco** (h2r5-turn-003262) DPWH always insisted that only a certain percentage of **[03:42:24.010] Rep. Mark O. Cojuangco** (h2r5-turn-003263) total project costs could be allocated to right of way. **[03:42:28.250] Rep. Mark O. Cojuangco** (h2r5-turn-003264) So now, **[03:42:29.230] Rep. Mark O. Cojuangco** (h2r5-turn-003265) this representation wants to ascertain that **[03:42:34.290] Rep. Mark O. Cojuangco** (h2r5-turn-003266) that's open. Then, **[03:42:35.710] Rep. Mark O. Cojuangco** (h2r5-turn-003267) it's up to the initiative of the **[03:42:38.170] Rep. Mark O. Cojuangco** (h2r5-turn-003268) representation **[03:42:42.190] Rep. Mark O. Cojuangco** (h2r5-turn-003269) what **[03:42:42.790] Rep. Mark O. Cojuangco** (h2r5-turn-003270) he wants to do with public **[03:42:45.930] Rep. Mark O. Cojuangco** (h2r5-turn-003271) works. Is it okay for him to buy ahead **[03:42:50.010] Rep. Mark O. Cojuangco** (h2r5-turn-003272) the **[03:42:52.090] Rep. Mark O. Cojuangco** (h2r5-turn-003273) right of way? **[03:42:57.470] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003274) That specific example, Your Honor, of buying ahead a right of way before DPWH implements, I'm afraid we cannot... **[03:43:07.630] Rep. Mark O. Cojuangco** (h2r5-turn-003274-split-2) No, no, **[03:43:07.710] Rep. Mark O. Cojuangco** (h2r5-turn-003275) no, sir. **[03:43:08.590] Rep. Mark O. Cojuangco** (h2r5-turn-003276) You misunderstand me **[03:43:11.030] Rep. Mark O. Cojuangco** (h2r5-turn-003277) Is it okay for the representative **[03:43:13.550] Rep. Mark O. Cojuangco** (h2r5-turn-003278) to **[03:43:15.110] Rep. Mark O. Cojuangco** (h2r5-turn-003279) request that his budget for his district has **[03:43:19.950] Rep. Mark O. Cojuangco** (h2r5-turn-003280) an item for DPWH to buy the right of way even if there is no civil works component **[03:43:28.170] Rep. Mark O. Cojuangco** (h2r5-turn-003281) of it? **[03:43:30.130] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003282) Your Honor, Mr. Chair, the right of way budget of DPWH, as we have always proposed naman po, is a lump sum. So, it depends on the **[03:43:38.710] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003283) DPWH. As to the prioritization, kung ano po yung mauunahin po nila. However, Your Honor, Mr. Chair, may we just highlight that **[03:43:47.650] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003284) historically, **[03:43:48.930] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003285) baka po isa rin kasi po sa reason kung bakit po may **[03:43:51.790] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003286) issue during implementation dahil po nababawasan po yung right of way funds from **[03:43:57.430] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003287) the NEP level that we proposed as **[03:44:00.090] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003288) to the final level po that is approved when the GAA is passed. So, marahil isa po yun sa consideration. **[03:44:06.630] Rep. Mark O. Cojuangco** (h2r5-turn-003289) And in fact, Mr. Secretary, it may be lacking. **[03:44:11.310] Rep. Mark O. Cojuangco** (h2r5-turn-003290) So, what is wrong with increasing the allocation for right of way? **[03:44:17.970] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003291) We fully support, Your Honor. In fact, we are proposing higher level of right of way every year under the NEP. **[03:44:24.610] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003292) Unfortunately, Your Honor, nababawasan po every year din po yung right of way from **[03:44:29.450] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003293) our initial proposal for DPWH. **[03:44:32.590] Rep. Mark O. Cojuangco** (h2r5-turn-003294) So, yes, at least we agree in principle, Mr. Secretary. **[03:44:38.090] Rep. Mark O. Cojuangco** (h2r5-turn-003295) What about spaces, open spaces in barangays. **[03:44:42.650] Rep. Mark O. Cojuangco** (h2r5-turn-003296) We see monies being appropriated for multipurpose buildings, gymnasiums, schoolhouses, barangay halls, and there's no place to build them. **[03:44:56.970] Rep. Mark O. Cojuangco** (h2r5-turn-003297) And so, maski na papaano na lang sinisingit **[03:45:01.070] Rep. Mark O. Cojuangco** (h2r5-turn-003298) yung mga structures in a very haphazard way, **[03:45:05.990] Rep. Mark O. Cojuangco** (h2r5-turn-003299) Mr. Secretary. **[03:45:08.350] Rep. Mark O. Cojuangco** (h2r5-turn-003300) ... **[03:45:09.610] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003300-split-2) Mr. Chair, Your Honor. Our capacity to assist our local government units, not only barangays, but all levels of local government units, makikita po natin yan in the form of the infra projects. However, we're very constrained in providing support for land acquisition because of local autonomy. So, hindi po nagpupondo ang national government ng land acquisition for the use of our local government. **[03:45:34.910] Rep. Mark O. Cojuangco** (h2r5-turn-003301) This representation doesn't see the rationale for that. But, Your **[03:45:39.083] Rep. Mark O. Cojuangco** (h2r5-turn-003302) Honor, so maybe that can be a topic for discussion. **[03:45:48.100] Rep. Mark O. Cojuangco** (h2r5-turn-003303) Mr. Chairman, **[03:45:49.250] Rep. Mark O. Cojuangco** (h2r5-turn-003304) next question would be for DOF and DEPDEV. **[03:45:54.850] Rep. Mark O. Cojuangco** (h2r5-turn-003305) Is energy generation or electricity generation classified as infrastructure? **[03:46:08.290] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-003306) Yes, it is. But it is under our system. This is largely a private sector. **[03:46:16.870] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-003307) Investment, Mr. **[03:46:18.170] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-003308) Chair. **[03:46:18.790] Rep. Mark O. Cojuangco** (h2r5-turn-003309) Which it doesn't have to be. We are legislators here. **[03:46:22.790] Rep. Mark O. Cojuangco** (h2r5-turn-003310) So, we can write a new law. **[03:46:25.030] Rep. Mark O. Cojuangco** (h2r5-turn-003311) So, it doesn't have to be. **[03:46:28.550] Rep. Mark O. Cojuangco** (h2r5-turn-003312) May **[03:46:29.150] Rep. Mark O. Cojuangco** (h2r5-turn-003313) I know what is the multiplier effect of **[03:46:32.670] Rep. Mark O. Cojuangco** (h2r5-turn-003314) electric **[03:46:34.290] Rep. Mark O. Cojuangco** (h2r5-turn-003315) generating **[03:46:35.510] Rep. Mark O. Cojuangco** (h2r5-turn-003316) capacity? **[03:46:37.790] Rep. Mark O. Cojuangco** (h2r5-turn-003317) Is this not among the highest? **[03:46:42.390] Rep. Mark O. Cojuangco** (h2r5-turn-003318) Does this not have among the highest multiplier effect? Because electricity **[03:46:48.190] Rep. Mark O. Cojuangco** (h2r5-turn-003319) is an enabler of economic activity? **[03:46:56.590] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-003320) I would think so. As I indicated this morning, **[03:47:01.830] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-003321) Mr. **[03:47:03.830] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-003322) Chair, one of the most binding constraints to growth to industrialization, **[03:47:09.850] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-003323) as pointed out by many state investors, **[03:47:13.850] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-003324) is the high cost of electricity. **[03:47:17.110] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-003325) So, if we can, **[03:47:18.321] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-003326) if the investment, is able to reduce that cost, **[03:47:21.830] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-003327) then the multiplier effects on the economy would be expected to be high. **[03:47:28.090] Rep. Mark O. Cojuangco** (h2r5-turn-003328) Mr. **[03:47:28.770] Rep. Mark O. Cojuangco** (h2r5-turn-003329) Chairman, **[03:47:30.170] Rep. Mark O. Cojuangco** (h2r5-turn-003330) this representation would like for **[03:47:33.410] Rep. Mark O. Cojuangco** (h2r5-turn-003331) the information of all our colleagues who are here, **[03:47:37.490] Rep. Mark O. Cojuangco** (h2r5-turn-003332) for them to know that **[03:47:39.730] Rep. Mark O. Cojuangco** (h2r5-turn-003333) we **[03:47:41.710] Rep. Mark O. Cojuangco** (h2r5-turn-003334) used to be ahead of Vietnam in **[03:47:44.150] Rep. Mark O. Cojuangco** (h2r5-turn-003335) terms of total generating capacity. **[03:47:47.110] Rep. Mark O. Cojuangco** (h2r5-turn-003336) Vietnam has **[03:47:48.470] Rep. Mark O. Cojuangco** (h2r5-turn-003337) a slightly smaller, smaller population than **[03:47:51.274] Rep. Mark O. Cojuangco** (h2r5-turn-003338) the Philippines. But **[03:47:53.490] Rep. Mark O. Cojuangco** (h2r5-turn-003339) did you know that Vietnam today has **[03:47:57.270] Rep. Mark O. Cojuangco** (h2r5-turn-003340) over three times our **[03:47:59.610] Rep. Mark O. Cojuangco** (h2r5-turn-003341) generating capacity at **[03:48:01.930] Rep. Mark O. Cojuangco** (h2r5-turn-003342) 68,000 megawatts? **[03:48:04.290] Rep. Mark O. Cojuangco** (h2r5-turn-003343) Tayo po, **[03:48:05.210] Rep. Mark O. Cojuangco** (h2r5-turn-003344) nasa around 22,000 megawatts lang. **[03:48:09.970] Rep. Mark O. Cojuangco** (h2r5-turn-003345) So, napag-iwanan na po tayo. **[03:48:13.250] Rep. Mark O. Cojuangco** (h2r5-turn-003346) And this is, in **[03:48:15.790] Rep. Mark O. Cojuangco** (h2r5-turn-003347) my observation, a **[03:48:18.630] Rep. Mark O. Cojuangco** (h2r5-turn-003348) greater, **[03:48:19.690] Rep. Mark O. Cojuangco** (h2r5-turn-003349) effect of the EPIRA law. **[03:48:22.350] Rep. Mark O. Cojuangco** (h2r5-turn-003350) So, EPIRA has failed the Philippines from **[03:48:26.150] Rep. Mark O. Cojuangco** (h2r5-turn-003351) the time it was **[03:48:27.350] Rep. Mark O. Cojuangco** (h2r5-turn-003352) conceived of. **[03:48:29.910] Rep. Mark O. Cojuangco** (h2r5-turn-003353) It is time to write **[03:48:32.130] Rep. Mark O. Cojuangco** (h2r5-turn-003354) laws that **[03:48:34.010] Rep. Mark O. Cojuangco** (h2r5-turn-003355) maybe should consider 100 percent **[03:48:39.570] Rep. Mark O. Cojuangco** (h2r5-turn-003356) government ownership for generating capacity, especially for **[03:48:45.450] Rep. Mark O. Cojuangco** (h2r5-turn-003357) nuclear generating capacity. **[03:48:48.210] Rep. Mark O. Cojuangco** (h2r5-turn-003358) I would like to, I **[03:48:51.070] Rep. Mark O. Cojuangco** (h2r5-turn-003359) am **[03:48:51.570] Rep. Mark O. Cojuangco** (h2r5-turn-003360) announcing that I am available for **[03:48:55.150] Rep. Mark O. Cojuangco** (h2r5-turn-003361) the **[03:48:56.210] Rep. Mark O. Cojuangco** (h2r5-turn-003362) executive to discuss this matter. **[03:48:59.270] Rep. Mark O. Cojuangco** (h2r5-turn-003363) Thank you, Mr. Chairman. **[03:49:00.730] Rep. Albert S. Garcia** (h2r5-turn-003364) Thank you very much, Cong. Mark. **[03:49:04.070] Rep. Albert S. Garcia** (h2r5-turn-003365) And can Sec. Arsi **[03:49:07.070] Rep. Albert S. Garcia** (h2r5-turn-003366) reply to the last comment. **[03:49:09.830] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-003367) We **[03:49:10.550] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-003368) will welcome to hear the discussion with the Honorable Congressman. **[03:49:17.110] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-003369) I also would like to to **[03:49:19.570] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-003370) mention, **[03:49:21.670] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-003371) Mr. Chair, that a **[03:49:23.970] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-003372) few weeks ago, World Bank just released a report, **[03:49:29.390] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-003373) an update on the Philippine economy with a special section on **[03:49:32.450] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-003374) electricity and power **[03:49:35.270] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-003375) market. **[03:49:36.470] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-003376) And they identified, that study identified **[03:49:40.730] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-003377) where this high cost of power in the Philippines are coming from. **[03:49:45.650] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-003378) Which, what is contributed by generating or what is contributed by delays in the **[03:49:52.090] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-003379) implementation **[03:49:54.650] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-003380) of projects, **[03:49:57.030] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-003381) whether these are for generating capacity or distribution. And **[03:50:00.970] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-003382) what is **[03:50:01.430] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-003383) also might **[03:50:04.130] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-003384) have be contributed by the lack or the abuse of market power, particularly the **[03:50:09.350] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-003385) lack of the in complete implementation **[03:50:15.630] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-003386) of the retail competition or competition of the retail competition, in the retail end of the market. So **[03:50:21.370] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-003387) I think that **[03:50:22.150] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-003388) is I think a very good study that we should look at and should inform the kind of **[03:50:29.410] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-003389) reforms in the EPIRA because the details are there. **[03:50:34.270] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-003390) Mr. Chair thank you. **[03:50:35.430] Rep. Albert S. Garcia** (h2r5-turn-003391) Thank you Sec. Arsi. Can you **[03:50:38.580] Rep. Albert S. Garcia** (h2r5-turn-003392) give us a copy of this World Bank report so the committee can study it further? **[03:50:44.250] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-003393) I will, Mr. Chair. **[03:50:45.870] Rep. Albert S. Garcia** (h2r5-turn-003394) Maraming salamat po. **[03:50:49.290] Rep. Albert S. Garcia** (h2r5-turn-003395) So, **[03:50:49.890] Rep. Albert S. Garcia** (h2r5-turn-003396) next may we **[03:50:53.230] Rep. Albert S. Garcia** (h2r5-turn-003397) call on Representative Robert Nazal. **[03:50:57.170] Rep. Roberto Nazal** (h2r5-turn-003398) Mr. Chair, just a quick manifestation before my time starts. **[03:51:02.130] Rep. Roberto Nazal** (h2r5-turn-003399) Before I proceed with my questions to the DBCC, I would like to manifest my support for the proposal of Cong. Toby Tiangco and **[03:51:08.970] Rep. Roberto Nazal** (h2r5-turn-003400) Cong. Egay Erice for an open and transparent discussion of the budget of **[03:51:12.990] Rep. Roberto Nazal** (h2r5-turn-003401) the House of Representatives. **[03:51:14.670] Rep. Roberto Nazal** (h2r5-turn-003402) We should subject our own budget to the same scrutiny we require of other government agencies. **[03:51:20.810] Rep. Roberto Nazal** (h2r5-turn-003403) Thank you, Mr. Chair. **[03:51:22.230] Rep. Roberto Nazal** (h2r5-turn-003404) So, to the DBM, **[03:51:24.710] Rep. Roberto Nazal** (h2r5-turn-003405) I'd like to proceed with my question. **[03:51:27.210] Rep. Roberto Nazal** (h2r5-turn-003406) Does the President's veto message itself contain all the additional release conditions imposed **[03:51:33.290] Rep. Roberto Nazal** (h2r5-turn-003407) by NBC 595 on **[03:51:35.890] Rep. Roberto Nazal** (h2r5-turn-003408) the Congress introduced amendments? **[03:51:38.790] Rep. Roberto Nazal** (h2r5-turn-003409) Kung pwede pong yes or no, please, para mapabilis lang tayo. **[03:51:45.430] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003410) Your Honor, may we ask for the good congressman to repeat the question, please? **[03:51:50.150] Rep. Roberto Nazal** (h2r5-turn-003411) Yung doon po ba sa veto message ni **[03:51:54.230] Rep. Roberto Nazal** (h2r5-turn-003412) Presidente for the budget of 2025, **[03:52:01.010] Rep. Roberto Nazal** (h2r5-turn-003413) nakakalagay po ba doon yung additional release conditions imposed by NBC 595? **[03:52:06.750] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003414) On the veto message, Your Honor, it stated that the release is subject to usual DBM rules and regulations, Your Honor. **[03:52:15.190] Rep. Roberto Nazal** (h2r5-turn-003415) Pero wala po yung specifics nung NBC 595? **[03:52:20.150] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003416) Your Honor, because the NBC was issued precisely to implement the veto message, Your Honor. **[03:52:26.830] Rep. Roberto Nazal** (h2r5-turn-003417) What is the legal basis for adding that, those specifics? **[03:52:30.930] Rep. Roberto Nazal** (h2r5-turn-003418) Yung mga dinagdag po natin doon sa NBC 595? **[03:52:34.650] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003419) Your Honor, Mr. Chair, the documents listed in the National Budget Circular are the usual **[03:52:40.590] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003420) documents that proves the implementation readiness of the project. As we may note, **[03:52:46.610] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003421) this was imposed because these are projects, that were not originally **[03:52:52.090] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003422) evaluated during the budget preparation process. **[03:52:55.110] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003423) That's why the DBM is requiring the agencies to submit the same for **[03:52:59.590] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003424) projects that were not **[03:53:01.250] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003425) vetted during the NEP, but were included in the final GAA, Your Honor, Mr. Chair. **[03:53:06.610] Rep. Roberto Nazal** (h2r5-turn-003426) So marami pong, ang sinasabi nyo po, maraming hindi na-comply, kaya natin nilagay doon sa NBC. Anyway, I won't dwell on that for now. **[03:53:16.210] Rep. Roberto Nazal** (h2r5-turn-003427) What is the specific legal basis for placing under FISA projects **[03:53:20.850] Rep. Roberto Nazal** (h2r5-turn-003428) that were already specific line items in the Fiscal **[03:53:25.110] Rep. Roberto Nazal** (h2r5-turn-003429) Year 2026 NEP and **[03:53:26.990] Rep. Roberto Nazal** (h2r5-turn-003430) were retained in the Fiscal Year 2026 GAA since **[03:53:31.230] Rep. Roberto Nazal** (h2r5-turn-003431) they were neither Congressional Amendments nor lump sum items, **[03:53:35.110] Rep. Roberto Nazal** (h2r5-turn-003432) nor had **[03:53:36.570] Rep. Roberto Nazal** (h2r5-turn-003433) conditions attached to it **[03:53:37.990] Rep. Roberto Nazal** (h2r5-turn-003434) doon sa GAA. **[03:53:39.710] Rep. Roberto Nazal** (h2r5-turn-003435) So what prevented their comprehensive release and **[03:53:43.770] Rep. Roberto Nazal** (h2r5-turn-003436) required a separate SARO? **[03:53:46.390] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003437) Your Honor, Mr. Chair, if this is specifically for 2026, **[03:53:52.570] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003438) there were changes specifically for the coordinates introduced for these projects, Your Honor, **[03:53:59.070] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003439) different from the NEP. **[03:54:01.870] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003440) That's why it has to be vetted again before the respective allotment orders were released by the DBM. Mr. Chair, Your Honor. **[03:54:09.670] Rep. Roberto Nazal** (h2r5-turn-003441) So, coordinates lang po yung naging **[03:54:13.370] Rep. Roberto Nazal** (h2r5-turn-003442) issue, nagbago? **[03:54:14.630] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003443) Among others, Your Honor, Mr. Chair, project title, meron po kasing yung iba, nagbago po yung barangay o yung munisipal? **[03:54:21.370] Rep. Roberto Nazal** (h2r5-turn-003444) Papano po yung hindi? **[03:54:22.590] Rep. Roberto Nazal** (h2r5-turn-003445) Papano yung wala naman nagbago? **[03:54:25.510] Rep. Roberto Nazal** (h2r5-turn-003446) There were no **[03:54:27.850] Rep. Roberto Nazal** (h2r5-turn-003447) changes. **[03:54:31.800] Rep. Roberto Nazal** (h2r5-turn-003448) Hindi naman po **[03:54:32.860] Rep. Roberto Nazal** (h2r5-turn-003449) siya lump sum, hindi siya amend, wala siya, hindi siya Congressional Amendment, tapos walang condition attached. **[03:54:38.520] Rep. Roberto Nazal** (h2r5-turn-003450) Pero hindi **[03:54:39.900] Rep. Roberto Nazal** (h2r5-turn-003451) pa rin **[03:54:41.340] Rep. Roberto Nazal** (h2r5-turn-003452) siya na-release. **[03:54:43.220] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003453) Mr. Chair, Your Honor, there are also types such as those with increased allocation. **[03:54:49.460] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003454) So that's also one of the reasons. Kung bakit po siya na-subject to FISARO. And **[03:54:53.800] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003455) there are also some **[03:54:54.720] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003456) provisions that really requires compliance with the respective special provisions. Kaya rin po ito naka-identify as FISARO items. **[03:55:03.660] Rep. Roberto Nazal** (h2r5-turn-003457) Anyway, Mr. **[03:55:05.220] Rep. Roberto Nazal** (h2r5-turn-003458) Secretary, Mr. Chair, may we request for a list **[03:55:09.440] Rep. Roberto Nazal** (h2r5-turn-003459) from the DBM kung ano po yung specific na dahilan kung bakit **[03:55:13.620] Rep. Roberto Nazal** (h2r5-turn-003460) na-classify siya as FISARO? **[03:55:15.940] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003461) We will submit, Mr. Chair. **[03:55:18.320] Rep. Roberto Nazal** (h2r5-turn-003462) Anyway, next question. Since the DBM's subsequently issued SAROs for these FLRs, **[03:55:24.680] Rep. Roberto Nazal** (h2r5-turn-003463) specifically on March 2025, **[03:55:27.280] Rep. Roberto Nazal** (h2r5-turn-003464) meron po tayo mga ni **[03:55:29.460] Rep. Roberto Nazal** (h2r5-turn-003465) -release na FLR. **[03:55:30.660] Rep. Roberto Nazal** (h2r5-turn-003466) Meaning na-comply po ang requirements sa NBC 595. **[03:55:34.900] Rep. Roberto Nazal** (h2r5-turn-003467) Tama po ba na may approval ng Presidente at may DPWH certification na shovel-ready or **[03:55:40.580] Rep. Roberto Nazal** (h2r5-turn-003468) implementation-ready ang mga projects na ito? **[03:55:44.580] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003469) Mr. Chair, based on records, the release of these items were facilitated upon compliance of DPWH doon po sa ating mga requirements, **[03:55:53.720] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003470) including the necessary approval from the President, Your Honor. **[03:55:58.240] Rep. Roberto Nazal** (h2r5-turn-003471) So, na-attain po lahat nung requirements doon sa NBC 595? **[03:56:02.700] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003472) For these items? **[03:56:04.480] Rep. Roberto Nazal** (h2r5-turn-003472-split-2) For **[03:56:04.600] Rep. Roberto Nazal** (h2r5-turn-003473) those specific items? **[03:56:06.060] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003474) Based on records, meron pong submission ng DPWH, Your Honor. **[03:56:10.580] Rep. Roberto Nazal** (h2r5-turn-003475) Once a SARO is issued, the allotment and obligational authority have already been released. Is that correct? **[03:56:17.700] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003476) The SARO is the obligational authority, Your Honor. **[03:56:22.380] Rep. Roberto Nazal** (h2r5-turn-003477) So, **[03:56:22.900] Rep. Roberto Nazal** (h2r5-turn-003478) pwede pa ba sabihin ng ahensya na walang pondo ito? **[03:56:26.040] Rep. Roberto Nazal** (h2r5-turn-003479) From the standpoint of an allotment authority? **[03:56:32.330] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003480) Your Honor, yung... Once a SARO **[03:56:34.150] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003481) is released. **[03:56:34.750] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003482) Yung allotment po kasi, Mr. Chair, Your Honor, is already the obligational authority. So, on the part of DBM, it is considered released na po. **[03:56:43.870] Rep. Roberto Nazal** (h2r5-turn-003483) Okay. To the agency. **[03:56:45.210] Rep. Roberto Nazal** (h2r5-turn-003484) So, **[03:56:45.630] Rep. Roberto Nazal** (h2r5-turn-003485) next question. Is an NCA required before a department can issue a SARO to the implementing office? **[03:56:54.890] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003486) As a matter, of policy, Your Honor, a SARO is a sub-allotment advice. So, this pertains to allotment authority. And an NCA is different because that is an authority to disperse. **[03:57:08.290] Rep. Roberto Nazal** (h2r5-turn-003487) So, hindi po siya required **[03:57:10.150] Rep. Roberto Nazal** (h2r5-turn-003488) for a department to issue a SARO? **[03:57:13.970] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003489) It would depend, Your Honor, on the internal guidelines of the department. But for us, SARO, again, is an allotment document. And an NCA is a disbursement document, Your **[03:57:26.073] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003490) Honor. **[03:57:26.357] Rep. Roberto Nazal** (h2r5-turn-003490-split-2) I agree. So, para i-award po ang project, kailangan ba ng NCA? **[03:57:33.390] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003491) The requisite for the award of a project, Your Honor, is an obligational authority. **[03:57:39.210] Rep. Roberto Nazal** (h2r5-turn-003492) So, SARO lang? **[03:57:41.530] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003493) SARO or EGARO, whichever is applicable, Your Honor. **[03:57:45.930] Rep. Roberto Nazal** (h2r5-turn-003494) So, ang NCA is principally for **[03:57:49.150] Rep. Roberto Nazal** (h2r5-turn-003495) actual cash disbursement or payment? **[03:57:53.290] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003496) You are correct, Your Honor. **[03:57:55.910] Rep. Roberto Nazal** (h2r5-turn-003497) There were a lot of projects po, in DPWH, that had already been bid out and were awaiting award. **[03:58:02.650] Rep. Roberto Nazal** (h2r5-turn-003498) Pero we were informed that they could not be awarded because **[03:58:05.670] Rep. Roberto Nazal** (h2r5-turn-003499) DPWH Central Office has not issued the necessary SAA. **[03:58:11.090] Rep. Roberto Nazal** (h2r5-turn-003500) Once the SARO has been issued, **[03:58:13.150] Rep. Roberto Nazal** (h2r5-turn-003501) is there any additional DBM fund release authority required before DPWH can issue the SAA and proceed with the award? **[03:58:22.170] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003502) When we talk about obligational authority, Your Honor, the last obligational authority, should be the SARO, Your Honor. **[03:58:30.610] Rep. Roberto Nazal** (h2r5-turn-003503) So, if **[03:58:31.310] Rep. Roberto Nazal** (h2r5-turn-003504) an NCA is not required for the issuance of the SAA or **[03:58:36.950] Rep. Roberto Nazal** (h2r5-turn-003505) for the award and obligation of the project, **[03:58:39.750] Rep. Roberto Nazal** (h2r5-turn-003506) hindi po ito rason para **[03:58:41.790] Rep. Roberto Nazal** (h2r5-turn-003507) hindi mag-issue ng SAA or **[03:58:43.770] Rep. Roberto Nazal** (h2r5-turn-003508) para hindi i-award ang project? **[03:58:46.750] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003509) Because, on our record, Your Honor, the **[03:58:49.610] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003510) obligational authority has already been given to the agency. **[03:58:53.030] Rep. Roberto Nazal** (h2r5-turn-003511) Hanggang dun lang po ba kayo? Your obligation ends when the SARO is issued? **[03:58:58.430] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003512) They are already given authority to obligate. But then again, Your Honor, as to the details, because this might entail several projects, **[03:59:08.120] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003513) so we are not that privy on the specific details of the projects that **[03:59:12.660] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003514) may be **[03:59:13.210] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003515) covered by the situation, Your Honor. **[03:59:15.930] Rep. Roberto Nazal** (h2r5-turn-003516) In your opinion, Mr. Secretary, is there any valid reason, budgetary or otherwise, why an SAA can be withheld, considering this **[03:59:24.600] Rep. Roberto Nazal** (h2r5-turn-003517) has already passed through the **[03:59:26.350] Rep. Roberto Nazal** (h2r5-turn-003518) process specified in NBC 595? **[03:59:30.220] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003519) Mr. Chair, Your Honor, since the issuance of a SAA is an internal process within a department, we respectfully defer to the department concerned to provide guidance and clarity **[03:59:41.850] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003520) on the matter. **[03:59:44.360] Rep. Roberto Nazal** (h2r5-turn-003521) Pero ang nangyayari po kasi, meron **[03:59:48.740] Rep. Roberto Nazal** (h2r5-turn-003522) po kaming pinagtanungan, **[03:59:49.860] Rep. Roberto Nazal** (h2r5-turn-003523) ang sinasabi nila, **[03:59:51.460] Rep. Roberto Nazal** (h2r5-turn-003524) DBM daw ang **[03:59:53.140] Rep. Roberto Nazal** (h2r5-turn-003525) nagsasabi na hindi pwedeng ituloy. **[03:59:58.260] Rep. Roberto Nazal** (h2r5-turn-003526) Dahil wala daw NCA. **[04:00:01.710] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003527) Your Honor, as a matter of policy, cash availability is supposedly **[04:00:08.110] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003528) not a hindrance for procurement or incurrence of an obligation because cash is **[04:00:14.460] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003529) being released and programmed based **[04:00:16.600] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003530) on actual need **[04:00:18.690] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003531) and or progress billings for infrastructure projects. Your Honor, Mr. Chair. **[04:00:24.490] Rep. Roberto Nazal** (h2r5-turn-003532) Thank you for clearing that up, Mr. Chair. Mr. Secretary, **[04:00:28.980] Rep. Roberto Nazal** (h2r5-turn-003533) Can **[04:00:30.780] Rep. Roberto Nazal** (h2r5-turn-003534) a department simply just withhold this for no reason to prevent an award? **[04:00:34.770] Rep. Roberto Nazal** (h2r5-turn-003535) Yung NCA? **[04:00:37.090] Rep. Roberto Nazal** (h2r5-turn-003536) Ay yung SAA. **[04:00:39.090] Rep. Roberto Nazal** (h2r5-turn-003537) If no SAA was issued and the projects consequently remained unawarded **[04:00:43.890] Rep. Roberto Nazal** (h2r5-turn-003538) and unobligated, **[04:00:45.250] Rep. Roberto Nazal** (h2r5-turn-003539) would the corresponding amounts remain unobligated allotments because of the department's failure to issue a SAA? **[04:00:52.050] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003540) Mr. Chair, since again, the issuance of SAA and the manner of sub-allotting is something that is peculiar within an agency, we respectfully defer to the agency concerned, Your Honor. **[04:01:03.280] Rep. Roberto Nazal** (h2r5-turn-003541) So, **[04:01:03.900] Rep. Roberto Nazal** (h2r5-turn-003542) parang ang nangyayari po, yung department na ang nagdi-desisyon whether ma-obligate o hindi? **[04:01:10.520] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003543) Sa amin po kasi, Your Honor, again, the allotments have been issued and it's already reflected in their respective reports that they have released allotments subject for their respective obligation. **[04:01:22.080] Rep. Roberto Nazal** (h2r5-turn-003544) Does the DBM's responsibility end there sa pag-issue po ng SARO? **[04:01:27.700] Rep. Roberto Nazal** (h2r5-turn-003545) Once na to obligate the funds? **[04:01:31.040] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003546) Well, regularly, Your Honor, **[04:01:32.880] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003547) Mr. Chair, agencies are required to send their quarterly financial accountability report. So, dito po nakikita natin yung **[04:01:41.540] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003548) kanilang utilization of the respective allotments issued to them. **[04:01:46.100] Rep. Roberto Nazal** (h2r5-turn-003549) Can we not compel them to **[04:01:48.480] Rep. Roberto Nazal** (h2r5-turn-003550) proceed **[04:01:49.840] Rep. Roberto Nazal** (h2r5-turn-003551) with the project kung lahat po ng documents and documentation based on your **[04:01:54.380] Rep. Roberto Nazal** (h2r5-turn-003552) NBC were complied with? **[04:01:56.900] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003553) The actual implementation... The actual implementation, Your Honor, of the projects kasi is a rest **[04:02:01.960] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003554) upon the technical expertise of the respective departments. So, they actually have their **[04:02:07.640] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003555) final determination as part of their mandate. So, kami po pumapasok po kami once they **[04:02:13.480] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003556) request na po for cash, we will just check on how they were able to obligate and award the contracts as initially programmed. **[04:02:22.300] Rep. Roberto Nazal** (h2r5-turn-003557) Pero hindi niyo po ba pwedeng i-flag sila once you obligate sila? Na-issuehan **[04:02:28.940] Rep. Roberto Nazal** (h2r5-turn-003558) niyo ng SARO, nakita niyo, kumpleto yung **[04:02:31.300] Rep. Roberto Nazal** (h2r5-turn-003559) compliance. **[04:02:34.480] Rep. Roberto Nazal** (h2r5-turn-003560) Dumaan sa inyo, dumaan sa NBC, pinirmahan uli ng presidente. **[04:02:39.020] Rep. Roberto Nazal** (h2r5-turn-003561) Kung baga, **[04:02:39.860] Rep. Roberto Nazal** (h2r5-turn-003562) sa **[04:02:41.760] Rep. Roberto Nazal** (h2r5-turn-003563) GAA po, pinirmahan na ng presidente, in-authorize na naman ng presidente pagkatapos ng NBC. **[04:02:46.800] Rep. Roberto Nazal** (h2r5-turn-003564) Tapos, **[04:02:47.320] Rep. Roberto Nazal** (h2r5-turn-003565) lahat technically feasible, lahat complied with. **[04:02:50.720] Rep. Roberto Nazal** (h2r5-turn-003566) Pero dahil ang gusto nila, **[04:02:53.260] Rep. Roberto Nazal** (h2r5-turn-003567) hindi sila mag-i-issue ng SAA, hindi matutuloy yung project. **[04:02:57.080] Rep. Roberto Nazal** (h2r5-turn-003568) And, **[04:02:57.620] Rep. Roberto Nazal** (h2r5-turn-003569) pupunta **[04:02:59.240] Rep. Roberto Nazal** (h2r5-turn-003570) po tayo later on. **[04:03:00.300] Rep. Roberto Nazal** (h2r5-turn-003571) Yan po ang probably isang malaking dahilan kung bakit **[04:03:03.500] Rep. Roberto Nazal** (h2r5-turn-003572) mababa ang ating utilization at mababa ang ating government spending. **[04:03:08.560] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003573) Your Honor, Mr. Chair, lumalabas po iyan sa pag-conduct ng DBM ng mid-year at saka year-end **[04:03:16.680] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003574) performance. **[04:03:16.681] Rep. Roberto Nazal** (h2r5-turn-003575) Yung **[04:03:16.880] Rep. Roberto Nazal** (h2r5-turn-003576) oras ko, yung oras ko, please. **[04:03:18.860] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003577) Year-end and mid-year annual performance. **[04:03:21.060] Rep. Roberto Nazal** (h2r5-turn-003578) Tumatakbo yung oras ko. **[04:03:25.560] Rep. Roberto Nazal** (h2r5-turn-003579) Sorry, sorry, sorry, Secretary. **[04:03:28.960] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003580) Mr. Chair, Your Honor, ito po ay kasama po doon sa nagiging findings **[04:03:35.140] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003581) ng DBM kapag po ginagawa natin yung mid-year **[04:03:38.920] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003582) agency performance review. **[04:03:41.500] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003583) But, at the end of the day po, yung final determination as to per project, kasi po ang APR naman po, nakikita natin yan, aggregate eh. **[04:03:49.560] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003584) But, on a per project level, it's still upon the final determination of the agency, **[04:03:54.460] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003585) Mr. Chair, Your Honor. **[04:03:57.440] Rep. Roberto Nazal** (h2r5-turn-003586) Can DBM confirm? Can DBM confirm that this fiscal year 2025 capital outlay allotments remain valid for release and obligation until December 31, 2026? **[04:04:08.180] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003587) Consistent with the GAA, Your Honor, the allotment is valid for obligation until end of 2026. **[04:04:15.820] Rep. Roberto Nazal** (h2r5-turn-003588) So, therefore po, funds that have not lapsed, **[04:04:18.660] Rep. Roberto Nazal** (h2r5-turn-003589) so pwede po ba ma-release na ang saa and pwede i-award ang projects and i-obligate yung allotments? Tama po ba? **[04:04:27.640] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003590) Well, subject po. Well, subject po, Your Honor, sa determination ni agency because as we have said earlier, we are not privy on the complete **[04:04:35.673] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003591) details surrounding this project. **[04:04:37.400] Rep. Roberto Nazal** (h2r5-turn-003592) Hindi pa na **[04:04:39.380] Rep. Roberto Nazal** (h2r5-turn-003593) -i **[04:04:41.180] Rep. Roberto Nazal** (h2r5-turn-003594) -issue and hindi pa nagla-lapse yung ano. **[04:04:45.060] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003595) Valid naman po, Your Honor, and wala naman pong ibang restrictions prohibiting, the **[04:04:50.240] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003596) agency may still validly **[04:04:53.520] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003597) obligate because the appropriation is still valid, consistent with the GAA. **[04:04:57.680] Rep. Roberto Nazal** (h2r5-turn-003597-split-2) Ano **[04:05:02.200] Rep. Roberto Nazal** (h2r5-turn-003598) po eh, this is not, ito pong pinag-uusapan natin, this is not merely a technical budget issue. **[04:05:07.080] Rep. Roberto Nazal** (h2r5-turn-003599) Our GDP growth fell from 5.7 in 2024 to 4.4 in 2025 and **[04:05:14.200] Rep. Roberto Nazal** (h2r5-turn-003600) to only 2.6 in **[04:05:16.740] Rep. Roberto Nazal** (h2r5-turn-003601) the first half of 2026. **[04:05:19.560] Rep. Roberto Nazal** (h2r5-turn-003602) CPBRD projects full year growth of 2.3 to 2.6 while **[04:05:24.780] Rep. Roberto Nazal** (h2r5-turn-003603) gross capital formation contracted by 9.2 in **[04:05:28.440] Rep. Roberto Nazal** (h2r5-turn-003604) quarter 2 of 2026. **[04:05:31.080] Rep. Roberto Nazal** (h2r5-turn-003605) And poor budget execution where SAROs are released but **[04:05:34.540] Rep. Roberto Nazal** (h2r5-turn-003606) projects remain unimplemented be contributing to weak economic growth. **[04:05:39.060] Rep. Albert S. Garcia** (h2r5-turn-003607) Thank you very much, **[04:05:40.500] Rep. Albert S. Garcia** (h2r5-turn-003608) Cong. Nazal. That is the last question. **[04:05:43.560] Rep. Roberto Nazal** (h2r5-turn-003609) Mr. Chair, **[04:05:44.440] Rep. Roberto Nazal** (h2r5-turn-003610) meron lang po akong i-ano kasi yung aking time eh, bumilang. **[04:05:48.840] Rep. Roberto Nazal** (h2r5-turn-003611) Actually, nadagdagan na kanina. **[04:05:50.680] Rep. Roberto Nazal** (h2r5-turn-003612) I will just, ika-cluster ko na lang yung last question ko. And then, just one... **[04:06:04.230] Rep. Albert S. Garcia** (h2r5-turn-003613) Please. **[04:06:06.870] Rep. Albert S. Garcia** (h2r5-turn-003614) Wind up, last question, Cong. Robert. Thank you. **[04:06:13.010] Rep. Roberto Nazal** (h2r5-turn-003615) So, anyway, **[04:06:14.410] Rep. Roberto Nazal** (h2r5-turn-003616) Mr. Chair, Secretary, **[04:06:15.770] Rep. Roberto Nazal** (h2r5-turn-003617) slow spending is not a harmless delay. **[04:06:18.250] Rep. Roberto Nazal** (h2r5-turn-003618) At the time of weak growth in contracting investment, **[04:06:21.450] Rep. Roberto Nazal** (h2r5-turn-003619) every release but **[04:06:23.530] Rep. Roberto Nazal** (h2r5-turn-003620) unimplemented project means lost jobs, **[04:06:26.530] Rep. Roberto Nazal** (h2r5-turn-003621) lost economic activity, **[04:06:28.190] Rep. Roberto Nazal** (h2r5-turn-003622) and delayed public services, while **[04:06:31.070] Rep. Roberto Nazal** (h2r5-turn-003623) government continues to carry the fiscal and debt burden of the budget. **[04:06:35.410] Rep. Roberto Nazal** (h2r5-turn-003624) More seriously, **[04:06:36.870] Rep. Roberto Nazal** (h2r5-turn-003625) if a project remains unobligated because the SAA was withheld **[04:06:40.643] Rep. Roberto Nazal** (h2r5-turn-003626) and **[04:06:41.020] Rep. Roberto Nazal** (h2r5-turn-003627) that balance is later declared a savings and **[04:06:44.038] Rep. Roberto Nazal** (h2r5-turn-003628) used for augmentation, **[04:06:45.570] Rep. Roberto Nazal** (h2r5-turn-003629) that is no longer mere **[04:06:47.770] Rep. Roberto Nazal** (h2r5-turn-003630) underspending. **[04:06:49.110] Rep. Roberto Nazal** (h2r5-turn-003631) It raises the possibility of manufactured savings. **[04:06:52.910] Rep. Roberto Nazal** (h2r5-turn-003632) We will take this up in **[04:06:54.650] Rep. Roberto Nazal** (h2r5-turn-003633) the second round or in plenary. **[04:06:57.310] Rep. Roberto Nazal** (h2r5-turn-003634) Malamang hindi na po tayo. Ewan ko kung may second round pa ba tayo. **[04:07:01.710] Rep. Albert S. Garcia** (h2r5-turn-003635) This evening? **[04:07:03.610] Rep. Roberto Nazal** (h2r5-turn-003636) Anyway, we **[04:07:04.890] Rep. Roberto Nazal** (h2r5-turn-003637) want to know whether this **[04:07:06.650] Rep. Roberto Nazal** (h2r5-turn-003638) all... ...also happened in other agencies, **[04:07:09.055] Rep. Roberto Nazal** (h2r5-turn-003639) whether funds placed under FISARO were **[04:07:11.677] Rep. Roberto Nazal** (h2r5-turn-003640) later declared a savings and **[04:07:13.862] Rep. Roberto Nazal** (h2r5-turn-003641) transferred to other projects. Who **[04:07:16.550] Rep. Roberto Nazal** (h2r5-turn-003642) approved this and **[04:07:17.910] Rep. Roberto Nazal** (h2r5-turn-003643) where the money ultimately went? **[04:07:20.230] Rep. Roberto Nazal** (h2r5-turn-003644) Mr. Chair, I will submit a formal letter to DBM detailing the documents and project status information we **[04:07:28.310] Rep. Roberto Nazal** (h2r5-turn-003645) require on **[04:07:29.730] Rep. Roberto Nazal** (h2r5-turn-003646) the fiscal year 2025 and fiscal year 2026 **[04:07:33.310] Rep. Roberto Nazal** (h2r5-turn-003647) FISARO projects, including **[04:07:35.570] Rep. Roberto Nazal** (h2r5-turn-003648) the specific projects we have identified. **[04:07:38.470] Rep. Roberto Nazal** (h2r5-turn-003649) May the letter be made part of the committee record, **[04:07:41.570] Rep. Roberto Nazal** (h2r5-turn-003650) and may DBM be directed to submit a complete response within **[04:07:45.330] Rep. Roberto Nazal** (h2r5-turn-003651) the next two weeks. **[04:07:46.310] Rep. Roberto Nazal** (h2r5-turn-003652) Thank you, Mr. Chair. **[04:07:48.270] Rep. Albert S. Garcia** (h2r5-turn-003653) Yes, the committee will do so, and for DBM, please comply. **[04:07:51.280] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003653-split-2) We will comply, Your Honor, **[04:07:52.155] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003654) as soon as we receive the details. **[04:07:54.230] Rep. Albert S. Garcia** (h2r5-turn-003655) Maraming salamat. Thank you, Cong. Robert and **[04:07:57.510] Rep. Albert S. Garcia** (h2r5-turn-003656) Sec. Kim. **[04:07:59.030] Rep. Albert S. Garcia** (h2r5-turn-003657) So next, may we call on the Deputy Speaker, Chedeng Alvarez. Chedeng Alvarez. Please proceed. **[04:08:05.390] Deputy Speaker Mercedes K. Alvarez** (h2r5-turn-003658) Thank you, Mr. Chair. **[04:08:07.330] Deputy Speaker Mercedes K. Alvarez** (h2r5-turn-003659) Good evening to everyone, to Sec. Kim De Leon, **[04:08:10.930] Deputy Speaker Mercedes K. Alvarez** (h2r5-turn-003660) Sec. Balisacan, to Sec. Go, and to everyone, maayong gabi sa inyo nga tanan. **[04:08:17.570] Deputy Speaker Mercedes K. Alvarez** (h2r5-turn-003661) My question is very simple, actually, but as **[04:08:22.570] Deputy Speaker Mercedes K. Alvarez** (h2r5-turn-003662) a form of introduction, **[04:08:24.030] Deputy Speaker Mercedes K. Alvarez** (h2r5-turn-003663) I'm actually one of the principal authors of Republic Act 12000, or the law that created the Negros Island Region. **[04:08:31.150] Deputy Speaker Mercedes K. Alvarez** (h2r5-turn-003664) So it was signed last June 2020. It has been more than two years, and **[04:08:37.530] Deputy Speaker Mercedes K. Alvarez** (h2r5-turn-003665) the people of the three provinces of this new **[04:08:40.430] Deputy Speaker Mercedes K. Alvarez** (h2r5-turn-003666) region, namely Negros Occidental, Negros Oriental, and Siquijor, are **[04:08:45.010] Deputy Speaker Mercedes K. Alvarez** (h2r5-turn-003667) eager to see a fully functional, funded, staffed region. **[04:08:50.390] Deputy Speaker Mercedes K. Alvarez** (h2r5-turn-003668) So before my actual question, Mr. Chair, I hope that the agencies here tonight have actually, or kinamusta nyo kaya yung **[04:09:00.930] Deputy Speaker Mercedes K. Alvarez** (h2r5-turn-003669) mga tao ninyo sa Negros Island Region? Do **[04:09:04.330] Deputy Speaker Mercedes K. Alvarez** (h2r5-turn-003670) they have offices already? Or **[04:09:07.030] Deputy Speaker Mercedes K. Alvarez** (h2r5-turn-003671) are they still squatting at the mercy of LGUs? Do they have vehicles? Or do they have complete staffs? So my question mainly is for DBM, is that why **[04:09:19.850] Deputy Speaker Mercedes K. Alvarez** (h2r5-turn-003672) is the establishment of these regional offices and the creation of plantilla positions are still at the varying stages of evaluation, finalization, and approval? **[04:09:31.150] Deputy Speaker Mercedes K. Alvarez** (h2r5-turn-003673) There are also reports. There are reports of reduction of the **[04:09:36.384] Deputy Speaker Mercedes K. Alvarez** (h2r5-turn-003674) original proposed 2027 budgets of some of these offices. So **[04:09:41.390] Deputy Speaker Mercedes K. Alvarez** (h2r5-turn-003675) we **[04:09:43.410] Deputy Speaker Mercedes K. Alvarez** (h2r5-turn-003676) in Negros Island Region would like to know why **[04:09:46.530] Deputy Speaker Mercedes K. Alvarez** (h2r5-turn-003677) the delay. **[04:09:47.610] Deputy Speaker Mercedes K. Alvarez** (h2r5-turn-003678) Mr. Chair, thank you. **[04:09:49.230] Rep. Albert S. Garcia** (h2r5-turn-003679) Thank you. Sec. Kim, please reply. **[04:09:51.050] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003680) Mr. Chair, your honor, as for the Negros Island Region, we have particularly noted that when we were internally hearing the proposals of the agencies, **[04:10:01.090] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003681) we gave higher premium on agency proposals, supporting the establishment of the respective offices in the NIR. However, **[04:10:10.170] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003682) there is still some level of prioritization, Your Honor, Mr. Chair, that we did in order to support the operations of our agencies. For example, **[04:10:20.070] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003683) mas inuna po natin yung pag-setup ng kanilang mga office, or yung iba po ay **[04:10:25.590] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003684) rent expense, dahil nga po yung iba ay nakikipanuluyan po sa ibang mga mga agencies. either SUCs or LGUs. So we give priority to that **[04:10:33.850] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003685) including some of the necessary office equipment that they **[04:10:37.990] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003686) need in order to operate. That's also why **[04:10:41.970] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003687) the regional allocation for NIR for 2027 is higher when compared to the other regions. As for the approval of the plantilia, Your Honor, because there's no one-size-fits-all **[04:10:54.430] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003688) formula for the structure and staffing of each of the respective **[04:11:00.050] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003689) agencies, **[04:11:00.650] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003690) kailangan po kasing mag-emanate ito din sa kanilang mga respective proposal. That's why as of as **[04:11:07.730] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003691) early **[04:11:09.090] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003692) as August last year, Your Honor, Mr. Chair, **[04:11:12.190] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003693) marami na po tayong ibang mga ahensya na nakreate na ng position, subject of course, to **[04:11:17.550] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003694) our available **[04:11:18.990] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003695) miscellaneous personnel benefits fund. Dahil doon lamang naman po natin **[04:11:23.330] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003696) kukunin or pagkukuhanan yung **[04:11:25.950] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003697) budget to fund **[04:11:27.770] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003698) these positions. As of July 28 of 2026, **[04:11:31.490] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003699) 30 national government agencies na po, Your Honor, Mr. Chair, **[04:11:35.690] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003700) ang meron na pong mga approved **[04:11:38.170] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003701) plantilia positions and offices for their Negros Island regional **[04:11:41.750] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003702) office. So far, we are we **[04:11:43.830] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003703) have received a request from additional eight **[04:11:47.790] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003704) agencies which we are currently **[04:11:50.230] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003705) evaluating. Yung iba po kasi, Your Honor, meron lang pong isang technical side na kailangan nilang makomply with the which is yung tinatawag po nating **[04:11:59.670] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003706) UACS code para po talagang magkaroon ng personality yung **[04:12:04.150] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003707) regional office doon po sa **[04:12:05.970] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003708) ating NEP. But rest assured na this is being given priority and **[04:12:10.350] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003709) hopefully by **[04:12:11.430] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003710) definitely before the end of the year, ito pong mga remaining **[04:12:16.530] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003711) plantilia position requests for NIR will be properly acted upon, Your Honor, Mr. Chair. **[04:12:22.770] Deputy Speaker Mercedes K. Alvarez** (h2r5-turn-003712) Mr. Chair, I'd like to know where does this code as well as proposals come from? Does it come from the central offices of these agencies? But I'd like to congratulate you, Secretary, because as of June of **[04:12:35.990] Deputy Speaker Mercedes K. Alvarez** (h2r5-turn-003713) this year, there are only 25 out of 30. But as you have reported just now, you have already completed almost all of the 30 agencies because 30 agencies yung nakalista sa Republic Act. So where does this proposal come from? Is it from the regional offices or from the central office? **[04:12:53.730] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003714) As a matter of procedure, Your Honor, **[04:12:56.550] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003715) Mr. Chair, all the requests will have to be endorsed by the head of agency from the central office, Your Honor, Mr. Chair. **[04:13:03.250] Deputy Speaker Mercedes K. Alvarez** (h2r5-turn-003716) Because as an example from the information that I got, for example, the Bureau of Local Government Finance as well as the Bureau of Treasury under the DOF has yet to submit a proposal. **[04:13:14.890] Deputy Speaker Mercedes K. Alvarez** (h2r5-turn-003717) So **[04:13:15.410] Deputy Speaker Mercedes K. Alvarez** (h2r5-turn-003718) where **[04:13:16.570] Deputy Speaker Mercedes K. Alvarez** (h2r5-turn-003719) does the delay come from? Is it from the region or from the central office? **[04:13:22.770] Deputy Speaker Mercedes K. Alvarez** (h2r5-turn-003720) So maybe DOF can answer. **[04:13:35.020] Deputy Speaker Mercedes K. Alvarez** (h2r5-turn-003721) Apologies, Mr. **[04:13:36.080] Deputy Speaker Mercedes K. Alvarez** (h2r5-turn-003722) Chair. I really have to ask this because you know, the congressmen of NIR, we constantly talk to the to your staff in the region. So we ask them kung kamusta po sila? May opisina po ba? May sasakyan po ba sila? Kasi minsan yung iba walang sasakyan. **[04:13:50.800] Deputy Speaker Mercedes K. Alvarez** (h2r5-turn-003723) Regional directors ninyo sumasakay sa Ceres na bus. **[04:13:54.860] Deputy Speaker Mercedes K. Alvarez** (h2r5-turn-003724) So and **[04:13:55.520] Deputy Speaker Mercedes K. Alvarez** (h2r5-turn-003725) we see other regions being acquired new vehicles. But your staff in NIR are, **[04:14:03.360] Deputy Speaker Mercedes K. Alvarez** (h2r5-turn-003726) well, hindi naman sila siguro nagsasuffer. Pero **[04:14:06.180] Deputy Speaker Mercedes K. Alvarez** (h2r5-turn-003727) medyo **[04:14:08.100] Deputy Speaker Mercedes K. Alvarez** (h2r5-turn-003728) hindi po ata sila nabigyan ng priority. **[04:14:31.100] DOF Secretary Frederick D. Go** (h2r5-turn-003729) Your Honor, this is **[04:14:34.840] DOF Secretary Frederick D. Go** (h2r5-turn-003730) new to me. I'll admit. I will ensure that we talk to BLGF tomorrow **[04:14:40.720] DOF Secretary Frederick D. Go** (h2r5-turn-003731) to find out why they have not submitted. **[04:14:47.370] Deputy Speaker Mercedes K. Alvarez** (h2r5-turn-003732) Actually, Mr. Chair, that's the point of my question. Where does the delay emanate from? Is it with the central office or **[04:14:54.790] Deputy Speaker Mercedes K. Alvarez** (h2r5-turn-003733) with the regional office, these proposals? **[04:15:01.400] DOF Secretary Frederick D. Go** (h2r5-turn-003734) BTR. **[04:15:02.480] DOF Secretary Frederick D. Go** (h2r5-turn-003735) For BTR, the treasurer will answer. **[04:15:09.180] Treasurer of the Philippines Sharon P. Almanza** (h2r5-turn-003736) Thank you, Madam Chair. For treasury, we are **[04:15:13.940] Treasurer of the Philippines Sharon P. Almanza** (h2r5-turn-003737) looking at the **[04:15:16.140] Treasurer of the Philippines Sharon P. Almanza** (h2r5-turn-003738) creation. **[04:15:18.060] Treasurer of the Philippines Sharon P. Almanza** (h2r5-turn-003739) Right now, even though we don't have a regional office in **[04:15:22.080] Treasurer of the Philippines Sharon P. Almanza** (h2r5-turn-003740) Negros, we have provincial offices that **[04:15:25.180] Treasurer of the Philippines Sharon P. Almanza** (h2r5-turn-003741) are actually present in the region. So definitely, we will be looking **[04:15:30.200] Treasurer of the Philippines Sharon P. Almanza** (h2r5-turn-003742) at the **[04:15:32.380] Treasurer of the Philippines Sharon P. Almanza** (h2r5-turn-003743) reorganization because there are an implication on the **[04:15:37.880] Treasurer of the Philippines Sharon P. Almanza** (h2r5-turn-003744) budget, an implication for the **[04:15:40.760] Treasurer of the Philippines Sharon P. Almanza** (h2r5-turn-003745) budget of the entire Bureau of the Treasury. But definitely, Madam Chair, **[04:15:44.120] Treasurer of the Philippines Sharon P. Almanza** (h2r5-turn-003746) we will **[04:15:45.380] Treasurer of the Philippines Sharon P. Almanza** (h2r5-turn-003747) review and revisit the **[04:15:47.720] Treasurer of the Philippines Sharon P. Almanza** (h2r5-turn-003748) creation. Thank you. **[04:15:49.660] Deputy Speaker Mercedes K. Alvarez** (h2r5-turn-003749) Mr. Chair, I understand that there is an implication in the budget, but there is also an implication in the delivery of services. For example, in the case of the Bureau of Local Government Finance, this is where all of the local government units deal with **[04:16:03.100] Deputy Speaker Mercedes K. Alvarez** (h2r5-turn-003750) their **[04:16:04.180] Deputy Speaker Mercedes K. Alvarez** (h2r5-turn-003751) concerns. **[04:16:05.460] Deputy Speaker Mercedes K. Alvarez** (h2r5-turn-003752) As well as with the Bureau of Treasury. So, **[04:16:07.680] Deputy Speaker Mercedes K. Alvarez** (h2r5-turn-003753) actually, **[04:16:10.160] Deputy Speaker Mercedes K. Alvarez** (h2r5-turn-003754) Mr. Chair, I'm just asking where the **[04:16:13.420] Deputy Speaker Mercedes K. Alvarez** (h2r5-turn-003755) delay **[04:16:13.980] Deputy Speaker Mercedes K. Alvarez** (h2r5-turn-003756) comes from. **[04:16:14.960] DOF Secretary Frederick D. Go** (h2r5-turn-003757) Your Honor, our BLGF ED is present. **[04:16:19.480] BLGF Executive Director Consolacion Q. Agcaoili** (h2r5-turn-003758) Good **[04:16:20.140] BLGF Executive Director Consolacion Q. Agcaoili** (h2r5-turn-003759) afternoon, Mr. Chair. Good afternoon, Your Honor. **[04:16:23.260] BLGF Executive Director Consolacion Q. Agcaoili** (h2r5-turn-003760) For the BLGF, **[04:16:26.980] BLGF Executive Director Consolacion Q. Agcaoili** (h2r5-turn-003761) there was already a designated interim head for the NIR who **[04:16:32.980] BLGF Executive Director Consolacion Q. Agcaoili** (h2r5-turn-003762) is concurrently the regional director of Region 6, yes. **[04:16:36.640] BLGF Executive Director Consolacion Q. Agcaoili** (h2r5-turn-003763) And, in **[04:16:38.220] BLGF Executive Director Consolacion Q. Agcaoili** (h2r5-turn-003764) fact, we **[04:16:39.940] BLGF Executive Director Consolacion Q. Agcaoili** (h2r5-turn-003765) are already providing them, I **[04:16:42.920] BLGF Executive Director Consolacion Q. Agcaoili** (h2r5-turn-003766) mean the NIR region, **[04:16:45.140] BLGF Executive Director Consolacion Q. Agcaoili** (h2r5-turn-003767) with vehicles. And we already proposed in **[04:16:49.720] BLGF Executive Director Consolacion Q. Agcaoili** (h2r5-turn-003768) our budget **[04:16:51.120] BLGF Executive Director Consolacion Q. Agcaoili** (h2r5-turn-003769) for **[04:16:52.660] BLGF Executive Director Consolacion Q. Agcaoili** (h2r5-turn-003770) the funding for **[04:16:54.560] BLGF Executive Director Consolacion Q. Agcaoili** (h2r5-turn-003771) the establishment of the NIR. **[04:16:56.900] BLGF Executive Director Consolacion Q. Agcaoili** (h2r5-turn-003772) Our main **[04:16:58.600] BLGF Executive Director Consolacion Q. Agcaoili** (h2r5-turn-003773) concern right now is that the **[04:17:01.900] BLGF Executive Director Consolacion Q. Agcaoili** (h2r5-turn-003774) Negros Islands are **[04:17:03.980] BLGF Executive Director Consolacion Q. Agcaoili** (h2r5-turn-003775) far, far from **[04:17:05.500] BLGF Executive Director Consolacion Q. Agcaoili** (h2r5-turn-003776) one another. **[04:17:06.840] BLGF Executive Director Consolacion Q. Agcaoili** (h2r5-turn-003777) So, there is a proposal also that a **[04:17:10.140] BLGF Executive Director Consolacion Q. Agcaoili** (h2r5-turn-003778) satellite office will **[04:17:12.780] BLGF Executive Director Consolacion Q. Agcaoili** (h2r5-turn-003779) be established in Dumaguete City. Those were the concerns of particularly **[04:17:17.100] BLGF Executive Director Consolacion Q. Agcaoili** (h2r5-turn-003780) Negros Oriental. **[04:17:20.520] Deputy Speaker Mercedes K. Alvarez** (h2r5-turn-003781) Mr. Chair, just a correction. Negros Island is only one main island and Siquijor is like 20 minutes away. So, it is not composed of many islands, Mr. Chair. **[04:17:32.280] BLGF Executive Director Consolacion Q. Agcaoili** (h2r5-turn-003782) I'm sorry, Mr. Chair. Madam Chair, what **[04:17:36.040] BLGF Executive Director Consolacion Q. Agcaoili** (h2r5-turn-003783) I mean is that the **[04:17:38.720] BLGF Executive Director Consolacion Q. Agcaoili** (h2r5-turn-003784) chosen place **[04:17:40.720] BLGF Executive Director Consolacion Q. Agcaoili** (h2r5-turn-003785) for the regional office is in **[04:17:46.340] BLGF Executive Director Consolacion Q. Agcaoili** (h2r5-turn-003786) Occidental. And **[04:17:48.000] BLGF Executive Director Consolacion Q. Agcaoili** (h2r5-turn-003787) they say that it is quite far from **[04:17:51.840] BLGF Executive Director Consolacion Q. Agcaoili** (h2r5-turn-003788) Oriental and Siquijor. So, we are also looking into the possibility of establishing a satellite office in Dumagueta City. **[04:18:02.980] Deputy Speaker Mercedes K. Alvarez** (h2r5-turn-003789) Of course, Mr. Chair, we welcome you. From the establishment of satellite offices. But maybe, Mr. Chair, I'd like to take this opportunity to invite **[04:18:10.660] Deputy Speaker Mercedes K. Alvarez** (h2r5-turn-003790) our departments to visit Negros Island to **[04:18:14.320] Deputy Speaker Mercedes K. Alvarez** (h2r5-turn-003791) see and talk to your regional staff so **[04:18:18.800] Deputy Speaker Mercedes K. Alvarez** (h2r5-turn-003792) that you will really know what they really need, Mr. Chair. **[04:18:21.780] BLGF Executive Director Consolacion Q. Agcaoili** (h2r5-turn-003793) Your Honor, I would like to inform that we just came from the NIR and **[04:18:26.720] BLGF Executive Director Consolacion Q. Agcaoili** (h2r5-turn-003794) in fact, I was able to talk also to the mayor of Dumaguete City at that time and **[04:18:32.900] BLGF Executive Director Consolacion Q. Agcaoili** (h2r5-turn-003795) he raised that concern. And **[04:18:35.160] BLGF Executive Director Consolacion Q. Agcaoili** (h2r5-turn-003796) he's even willing to provide a **[04:18:38.320] BLGF Executive Director Consolacion Q. Agcaoili** (h2r5-turn-003797) free space for the BLGF satellite office. So, we are all considering this and once **[04:18:46.240] BLGF Executive Director Consolacion Q. Agcaoili** (h2r5-turn-003798) we fill up the positions, we hope that by next year, then our regional office will normalize. **[04:18:56.820] Deputy Speaker Mercedes K. Alvarez** (h2r5-turn-003799) Okay. Is there a problem with the budget or with your proposals? Because according to the Department of Budget and Management, before **[04:19:05.920] Deputy Speaker Mercedes K. Alvarez** (h2r5-turn-003800) the end of this year, it **[04:19:07.700] Deputy Speaker Mercedes K. Alvarez** (h2r5-turn-003801) will be fully functional. **[04:19:09.600] Deputy Speaker Mercedes K. Alvarez** (h2r5-turn-003802) But you're now saying that by next year. **[04:19:13.020] Deputy Speaker Mercedes K. Alvarez** (h2r5-turn-003803) So, what will it be? **[04:19:14.080] BLGF Executive Director Consolacion Q. Agcaoili** (h2r5-turn-003804) We already submitted our proposal **[04:19:16.740] BLGF Executive Director Consolacion Q. Agcaoili** (h2r5-turn-003805) even last year. **[04:19:19.680] BLGF Executive Director Consolacion Q. Agcaoili** (h2r5-turn-003806) So, I think they are doing it by phase, Your Honor. **[04:19:24.720] Deputy Speaker Mercedes K. Alvarez** (h2r5-turn-003807) Mr. Chair, for expediency and of course, since it's almost 7 o'clock, maybe I'd like to request the following from the departments. Year by year breakdown of budget allocated of all agencies from 2024-2025 to the present as well as the proposed 2027. PS, MOE as well as the capital outlay. **[04:19:48.180] Deputy Speaker Mercedes K. Alvarez** (h2r5-turn-003808) At the same time, Mr. Chair, a number of approved positions, funded and unfunded. And of course, more importantly, DBM's definite timeline as **[04:20:00.080] Deputy Speaker Mercedes K. Alvarez** (h2r5-turn-003809) to the full fiscal and organizational operations of NIR **[04:20:04.580] Deputy Speaker Mercedes K. Alvarez** (h2r5-turn-003810) Mr. Chair, **[04:20:08.460] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003811) we will comply, Your Honor. **[04:20:11.180] Deputy Speaker Mercedes K. Alvarez** (h2r5-turn-003812) Mr. Chair, may I know when will I receive that compliance? **[04:20:25.570] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003813) May we request, Your Honor, at least a week to collate all this information and submit it to Your Honor through the Committee on Appropriations. **[04:20:33.870] Rep. Albert S. Garcia** (h2r5-turn-003814) Is that okay, DS Chedeng? **[04:20:35.990] Deputy Speaker Mercedes K. Alvarez** (h2r5-turn-003815) Yes, Mr. Chair. With it after one week. **[04:20:39.470] Deputy Speaker Mercedes K. Alvarez** (h2r5-turn-003816) If **[04:20:39.970] Deputy Speaker Mercedes K. Alvarez** (h2r5-turn-003817) it won't arrive after one week, will the Chairman allow me? **[04:20:46.030] Deputy Speaker Mercedes K. Alvarez** (h2r5-turn-003818) To ask questions in plenary? **[04:20:49.810] Rep. Albert S. Garcia** (h2r5-turn-003819) I **[04:20:50.330] Rep. Albert S. Garcia** (h2r5-turn-003820) think the Secretary of DBM guarantees that within one week, it will arrive. Thank you. **[04:20:56.050] Deputy Speaker Mercedes K. Alvarez** (h2r5-turn-003821) Thank you, Mr. Chair. I do apologize to the departments here. It's just that I've always been in the ground and I've been talking to your regional staff and I've heard all of their concerns. So, I am just airing out their concerns at the same time. **[04:21:12.450] Deputy Speaker Mercedes K. Alvarez** (h2r5-turn-003822) The reason why we came up with Republic Act 12,000 is to make everything convenient for our constituents. And especially now that it is happening, Mount Kanlaon erupts every other day and more other problems are SSI in the sugarcane industry. So, we really need your help and we need the prioritization of the national government. Thank you, Mr. Chair. **[04:21:35.210] Rep. Albert S. Garcia** (h2r5-turn-003823) Thank you, DS Chedeng. **[04:21:37.950] Rep. Albert S. Garcia** (h2r5-turn-003824) And we will expect the **[04:21:40.530] Rep. Albert S. Garcia** (h2r5-turn-003825) submission of Secretary Kim within one week. **[04:21:43.750] Rep. Albert S. Garcia** (h2r5-turn-003826) Thank you. **[04:21:46.640] Rep. Albert S. Garcia** (h2r5-turn-003827) So, next, **[04:21:49.280] Rep. Albert S. Garcia** (h2r5-turn-003828) we will go back to the minority. **[04:21:52.440] Rep. Albert S. Garcia** (h2r5-turn-003829) May we call on Representative **[04:21:55.160] Rep. Albert S. Garcia** (h2r5-turn-003830) Allan Ty **[04:21:57.040] Rep. Albert S. Garcia** (h2r5-turn-003831) Please proceed. **[04:21:58.380] Rep. Allan U. Ty** (h2r5-turn-003832) Thank you, Mr. Chairman. **[04:22:00.400] Rep. Allan U. Ty** (h2r5-turn-003833) To the Secretary of **[04:22:02.540] Rep. Allan U. Ty** (h2r5-turn-003834) Finance, **[04:22:04.180] Rep. Allan U. Ty** (h2r5-turn-003835) Secretary Go, **[04:22:05.640] Rep. Allan U. Ty** (h2r5-turn-003836) can you please state the amount transferred by **[04:22:08.020] Rep. Allan U. Ty** (h2r5-turn-003837) PDIC to the Bureau of Treasury pursuant **[04:22:11.840] Rep. Allan U. Ty** (h2r5-turn-003838) to Special Provision 1D Volume **[04:22:14.380] Rep. Allan U. Ty** (h2r5-turn-003839) 1-E of **[04:22:15.980] Rep. Allan U. Ty** (h2r5-turn-003840) the General Appropriations Act Fiscal Year 2024 **[04:22:18.720] Rep. Allan U. Ty** (h2r5-turn-003841) categorized as fund balance? **[04:22:22.580] DOF Secretary Frederick D. Go** (h2r5-turn-003842) The amount is 107.23 billion pesos. **[04:22:27.100] Rep. Allan U. Ty** (h2r5-turn-003843) And may I ask, who proposed the transfer, Mr. Secretary? **[04:22:31.420] DOF Secretary Frederick D. Go** (h2r5-turn-003844) The Department of Finance in **[04:22:34.620] DOF Secretary Frederick D. Go** (h2r5-turn-003845) implementing the Special Provision 1D of the 2024 General Appropriations Act **[04:22:41.140] DOF Secretary Frederick D. Go** (h2r5-turn-003846) requested **[04:22:43.300] DOF Secretary Frederick D. Go** (h2r5-turn-003847) PDIC to remit that **[04:22:46.080] DOF Secretary Frederick D. Go** (h2r5-turn-003848) fund balance. **[04:22:47.960] Rep. Allan U. Ty** (h2r5-turn-003849) So, the determination was made by the DOF under Department Circular Number 003 **[04:22:54.080] Rep. Allan U. Ty** (h2r5-turn-003850) of 2024. Am I correct? **[04:22:56.700] DOF Secretary Frederick D. Go** (h2r5-turn-003851) That's correct. **[04:22:58.200] Rep. Allan U. Ty** (h2r5-turn-003852) So, did the Board approve the **[04:23:00.800] Rep. Allan U. Ty** (h2r5-turn-003853) amount as **[04:23:01.820] Rep. Allan U. Ty** (h2r5-turn-003854) determined by the Department of Finance in **[04:23:04.420] Rep. Allan U. Ty** (h2r5-turn-003855) the amount of 107.23 billion? **[04:23:07.260] DOF Secretary Frederick D. Go** (h2r5-turn-003856) That was approved by the Board of PDIC, **[04:23:11.540] DOF Secretary Frederick D. Go** (h2r5-turn-003857) not the Board of the Department of Finance, but yes, sir. **[04:23:14.380] Rep. Allan U. Ty** (h2r5-turn-003858) I stand corrected, Mr. Secretary, **[04:23:15.920] Rep. Allan U. Ty** (h2r5-turn-003859) by the PDIC. **[04:23:17.580] DOF Secretary Frederick D. Go** (h2r5-turn-003860) Yes, sir. Yes, Your Honor. **[04:23:21.480] Rep. Allan U. Ty** (h2r5-turn-003861) Was it approved by the Board unanimously? **[04:23:24.760] Rep. Allan U. Ty** (h2r5-turn-003862) Sorry? Was it **[04:23:26.680] Rep. Allan U. Ty** (h2r5-turn-003863) approved unanimously by the PDIC Board? **[04:23:32.770] DOF Secretary Frederick D. Go** (h2r5-turn-003864) Sorry, I was not Secretary at that time. **[04:23:34.970] Rep. Allan U. Ty** (h2r5-turn-003865) Yes, I'm aware of that, Mr. Secretary. Probably the alternate member at that time can answer to that. **[04:23:44.720] DOF Secretary Frederick D. Go** (h2r5-turn-003866) I think we have to find out the answer to that question. **[04:23:49.940] DOF Secretary Frederick D. Go** (h2r5-turn-003867) It's a different Board. **[04:23:54.690] Rep. Allan U. Ty** (h2r5-turn-003868) Don't you have the alternate member present at **[04:23:57.370] Rep. Allan U. Ty** (h2r5-turn-003869) that time? Who's the alternate member? **[04:23:59.750] DOF Secretary Frederick D. Go** (h2r5-turn-003870) Ah, no. The alternate member was Yusek Rolly Tumpalan, who's no longer with the DOF. He's now with the ADB. **[04:24:07.290] Rep. Allan U. Ty** (h2r5-turn-003871) So, **[04:24:07.890] Rep. Allan U. Ty** (h2r5-turn-003872) Mr. Secretary, may I ask whether the amount of **[04:24:11.230] Rep. Allan U. Ty** (h2r5-turn-003873) 107.23 billion was **[04:24:13.890] Rep. Allan U. Ty** (h2r5-turn-003874) taken from the Deposit **[04:24:15.950] Rep. Allan U. Ty** (h2r5-turn-003875) Insurance Fund, **[04:24:17.010] Rep. Allan U. Ty** (h2r5-turn-003876) or DIF? **[04:24:29.840] DOF Secretary Frederick D. Go** (h2r5-turn-003877) My understanding, based on what I have been informed, **[04:24:34.740] DOF Secretary Frederick D. Go** (h2r5-turn-003878) is that the 107.23 billion was taken from the unrestricted portion. **[04:24:39.940] DOF Secretary Frederick D. Go** (h2r5-turn-003879) Of the Deposit Insurance Fund. **[04:24:45.000] Rep. Allan U. Ty** (h2r5-turn-003880) So, it **[04:24:46.220] Rep. Allan U. Ty** (h2r5-turn-003881) was not taken from the Deposit Insurance Fund? **[04:24:50.060] Rep. Allan U. Ty** (h2r5-turn-003882) Or does it form part of the Deposit Insurance Fund? **[04:24:52.920] Rep. Allan U. Ty** (h2r5-turn-003883) The unrestricted retained earnings? **[04:25:07.410] DOF Secretary Frederick D. Go** (h2r5-turn-003884) The way it has been explained to me is **[04:25:12.050] DOF Secretary Frederick D. Go** (h2r5-turn-003885) because it was considered an excess from the Deposit Insurance Fund. So, **[04:25:17.290] DOF Secretary Frederick D. Go** (h2r5-turn-003886) technically, it was not from the Deposit Insurance Fund. **[04:25:24.070] Rep. Allan U. Ty** (h2r5-turn-003887) So, it's different from the dividends that the GOCC is **[04:25:29.470] Rep. Allan U. Ty** (h2r5-turn-003888) remitting to the national government. **[04:25:32.900] DOF Secretary Frederick D. Go** (h2r5-turn-003889) You can say that. **[04:25:34.670] DOF Secretary Frederick D. Go** (h2r5-turn-003890) Yes. **[04:25:38.270] Rep. Allan U. Ty** (h2r5-turn-003891) So, the **[04:25:39.960] Rep. Allan U. Ty** (h2r5-turn-003892) amount of 107 is separate from the dividends that was given **[04:25:45.340] Rep. Allan U. Ty** (h2r5-turn-003893) to the national government. **[04:25:47.460] DOF Secretary Frederick D. Go** (h2r5-turn-003894) Yes. **[04:25:48.620] Rep. Allan U. Ty** (h2r5-turn-003895) Thank you. So, did the **[04:25:52.500] Rep. Allan U. Ty** (h2r5-turn-003896) PDIC **[04:25:54.160] Rep. Allan U. Ty** (h2r5-turn-003897) consider whether the transfer could **[04:25:57.380] Rep. Allan U. Ty** (h2r5-turn-003898) have an adverse effect? **[04:25:59.780] Rep. Allan U. Ty** (h2r5-turn-003899) To the PDIC's ability to respond in case of bank failures to protect our depositors? **[04:26:06.100] DOF Secretary Frederick D. Go** (h2r5-turn-003900) Yes. The way it was explained to me that this was clearly over and above **[04:26:10.600] DOF Secretary Frederick D. Go** (h2r5-turn-003901) what they needed **[04:26:12.240] DOF Secretary Frederick D. Go** (h2r5-turn-003902) to address any eventuality **[04:26:16.600] DOF Secretary Frederick D. Go** (h2r5-turn-003903) of depositors insurance. So, it's over and beyond. So, they did take that into account. That's why they considered it an excess. **[04:26:25.140] Rep. Allan U. Ty** (h2r5-turn-003904) Thank you, Mr. Secretary. **[04:26:27.140] Rep. Allan U. Ty** (h2r5-turn-003905) To **[04:26:27.456] Rep. Allan U. Ty** (h2r5-turn-003906) Secretary Kim. **[04:26:29.780] Rep. Allan U. Ty** (h2r5-turn-003907) What percentage of the fiscal **[04:26:32.440] Rep. Allan U. Ty** (h2r5-turn-003908) year 2027 budget is represented by the unprogrammed appropriations? **[04:26:37.820] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003909) Mr. Chair, Your Honor, the unprogrammed appropriations in the 2027 NEP are just 1.56% of the total expenditure program. **[04:26:49.540] Rep. Allan U. Ty** (h2r5-turn-003910) Can you provide a **[04:26:52.060] Rep. Allan U. Ty** (h2r5-turn-003911) historical data of the level of percentages of unprogrammed funds for **[04:26:56.840] Rep. Allan U. Ty** (h2r5-turn-003912) the past five years, 2022 to 2026? **[04:27:02.270] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003913) May we request for a minute so that we can retrieve the information, **[04:27:07.510] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003914) Mr. Chair, Your Honor? **[04:27:36.640] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003915) Your Honor, Mr. Chair, you are referring to NEP level or GAA level of UA versus expenditure program level for 2022 to 2026? **[04:27:48.880] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003916) For 2022, that is 5.01%. **[04:27:54.480] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003917) 2023 is 15.32%. **[04:27:58.720] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003919) 2024 **[04:27:59.860] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003920) is 12.68%. **[04:28:03.700] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003921) 2025 is **[04:28:05.720] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003922) 5.74%. **[04:28:08.100] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003923) And 2026 after the vetoed portion is 2.22%, Your Honor, Mr. Chair. **[04:28:16.900] Rep. Allan U. Ty** (h2r5-turn-003924) So, Mr. Secretary, what is the maximum percentage level of unprogrammed funds in the FY2027 budget **[04:28:24.900] Rep. Allan U. Ty** (h2r5-turn-003925) consistent with the generally accepted fiscal principles or **[04:28:29.120] Rep. Allan U. Ty** (h2r5-turn-003926) benchmark? I think it's limited by multilateral institutions. **[04:28:39.100] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003927) Mr. Chair, Your Honor, for 2027, our proposed level is only at 1.56% **[04:28:45.680] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003928) of the expenditure program. **[04:28:48.360] Rep. Allan U. Ty** (h2r5-turn-003929) But what is the maximum level allowable? **[04:28:52.500] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003930) There's actually no maximum level. **[04:28:54.400] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003931) Mr. Chair, Your Honor. The international benchmark actually is also **[04:29:00.580] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003932) depends on the definition of contingency that we refer to, but technically, unprogrammed appropriations do not have any existing benchmark internationally, Your Honor, Mr. Chair. **[04:29:13.000] Rep. Allan U. Ty** (h2r5-turn-003933) But based on your NEP, it states there around four to five percent, **[04:29:17.220] Rep. Allan U. Ty** (h2r5-turn-003934) as presented in your NEP, **[04:29:19.220] Rep. Allan U. Ty** (h2r5-turn-003935) Mr. Secretary. **[04:29:29.020] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003937) Based **[04:29:29.540] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003938) on **[04:29:31.260] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003939) information, **[04:29:31.880] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003940) Mr. Chair, Your Honor, that's the figure, that's the range of the proposed **[04:29:36.395] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003941) UA under **[04:29:39.300] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003942) the NEP. **[04:29:40.158] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003943) But if we also refer, Your Honor, to the Philippine Budgeting Code, we're actually referring to about two **[04:29:46.840] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003944) to three percent, depending on the version of the Philippine Budgeting Code, Your Honor, Mr. Chair. **[04:29:52.280] Rep. Allan U. Ty** (h2r5-turn-003945) Around 3 to 4 percent, correct? **[04:29:55.800] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003946) In the versions of the Philippine Budgeting Code, it's about 2 or 3 percent, maximum, Your Honor, Mr. Chair. **[04:30:02.300] Rep. Allan U. Ty** (h2r5-turn-003947) Okay. **[04:30:03.000] Rep. Allan U. Ty** (h2r5-turn-003948) So, did you not consider **[04:30:06.420] Rep. Allan U. Ty** (h2r5-turn-003949) Mr. Secretary, did you not consider the full restoration of the PDIC fund transfer of 107 **[04:30:12.980] Rep. Allan U. Ty** (h2r5-turn-003950) .23 billion, considering that amount is still way below the recommended threshold, as you mentioned, of 3 percent? **[04:30:26.130] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003951) Your Honor, since we're all also so mindful of the possible sourcing where the restoration of the PDIC remittances will would be sourced from, so kahit po ilagay namin yung mas mataas, kung hindi naman po mamimit yung trigger for us to be able to settle this, which is excess revenue, **[04:30:45.910] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003952) malilimit din po yung capacity ng executive branch to fully restore. **[04:30:50.450] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003953) That's why we even planned from the start that we can restore this if also **[04:30:55.010] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003954) the Supreme Court orders the executive to do so, at least in two tranches. Your Honor, Mr. Chair. **[04:31:02.330] Rep. Allan U. Ty** (h2r5-turn-003955) May I ask the Governor of Banco Central if it's acceptable? Is it **[04:31:07.129] Rep. Allan U. Ty** (h2r5-turn-003956) acceptable to him as to the amount allocated under the **[04:31:12.323] Rep. Allan U. Ty** (h2r5-turn-003957) unprogrammed appropriation of 50.7 for **[04:31:15.439] Rep. Allan U. Ty** (h2r5-turn-003958) restoration of PDIC **[04:31:16.997] Rep. Allan U. Ty** (h2r5-turn-003959) fund? **[04:31:17.517] Rep. Allan U. Ty** (h2r5-turn-003960) Is it acceptable **[04:31:19.075] Rep. Allan U. Ty** (h2r5-turn-003961) to BSP as ex-officio chairman of PDIC? **[04:31:36.100] BSP Governor Eli M. Remolona Jr.** (h2r5-turn-003962) Thank you, Mr. Chair. We will have to confer with PDIC. Although we are chair of the **[04:31:43.280] BSP Governor Eli M. Remolona Jr.** (h2r5-turn-003963) board, **[04:31:44.540] BSP Governor Eli M. Remolona Jr.** (h2r5-turn-003964) this is something that the PDIC is looking into very closely. **[04:31:49.980] Rep. Allan U. Ty** (h2r5-turn-003965) Thank **[04:31:50.580] Rep. Allan U. Ty** (h2r5-turn-003966) you. How about the Secretary of Finance as **[04:31:54.460] Rep. Allan U. Ty** (h2r5-turn-003967) board **[04:31:54.880] Rep. Allan U. Ty** (h2r5-turn-003968) member of PDIC? **[04:32:05.040] DOF Secretary Frederick D. Go** (h2r5-turn-003969) I think the DBM is in the best position to evaluate **[04:32:09.900] DOF Secretary Frederick D. Go** (h2r5-turn-003970) how much fiscal space we might have. **[04:32:13.180] Rep. Allan U. Ty** (h2r5-turn-003971) They already evaluated it at 50.7, Mr. Secretary. **[04:32:17.360] DOF Secretary Frederick D. Go** (h2r5-turn-003972) Yes. **[04:32:19.400] Rep. Allan U. Ty** (h2r5-turn-003973) 57 **[04:32:20.000] Rep. Allan U. Ty** (h2r5-turn-003974) billion, **[04:32:20.800] Rep. Allan U. Ty** (h2r5-turn-003975) Mr. Secretary. There **[04:32:21.960] Rep. Allan U. Ty** (h2r5-turn-003976) was already an evaluation made. **[04:32:23.960] Rep. Allan U. Ty** (h2r5-turn-003977) I'm just asking if it's acceptable on your end, Mr. Secretary. **[04:32:30.850] DOF Secretary Frederick D. Go** (h2r5-turn-003978) I **[04:32:31.450] DOF Secretary Frederick D. Go** (h2r5-turn-003979) think it's a question that really should be asked of perhaps **[04:32:35.330] DOF Secretary Frederick D. Go** (h2r5-turn-003980) not us. **[04:32:37.170] Rep. Allan U. Ty** (h2r5-turn-003981) Mr. Secretary, you sit in the board of PDIC. **[04:32:43.480] DOF Secretary Frederick D. Go** (h2r5-turn-003982) I think, **[04:32:44.280] DOF Secretary Frederick D. Go** (h2r5-turn-003983) Your Honor, **[04:32:48.860] DOF Secretary Frederick D. Go** (h2r5-turn-003984) I think it's up to the DBM to really estimate how much. And I think if the number they came up with is 57 billion, then that's the fiscal space that **[04:32:58.760] DOF Secretary Frederick D. Go** (h2r5-turn-003985) they can afford to return **[04:33:01.800] DOF Secretary Frederick D. Go** (h2r5-turn-003986) to **[04:33:02.760] DOF Secretary Frederick D. Go** (h2r5-turn-003987) the PDIC. This year, **[04:33:04.400] DOF Secretary Frederick D. Go** (h2r5-turn-003988) I think it's with the understanding that in perhaps next year or if needed in another year, but **[04:33:12.320] DOF Secretary Frederick D. Go** (h2r5-turn-003989) hopefully maybe by next year, it can be fully returned to **[04:33:16.340] DOF Secretary Frederick D. Go** (h2r5-turn-003990) PDIC. **[04:33:18.580] Rep. Allan U. Ty** (h2r5-turn-003991) So **[04:33:19.180] Rep. Allan U. Ty** (h2r5-turn-003992) the amount is acceptable to you, Mr. Secretary, of **[04:33:22.420] Rep. Allan U. Ty** (h2r5-turn-003993) 57 billion. **[04:33:24.880] Rep. Allan U. Ty** (h2r5-turn-003994) Thank you, Mr. Secretary. **[04:33:26.780] Rep. Allan U. Ty** (h2r5-turn-003995) So, Secretary Kim, **[04:33:28.340] Rep. Allan U. Ty** (h2r5-turn-003996) how much budget is allocated for the executive branch, **[04:33:31.480] Rep. Allan U. Ty** (h2r5-turn-003997) legislative branch? And the judiciary? **[04:33:34.720] Rep. Allan U. Ty** (h2r5-turn-003998) And what is the percentage to the total expenditures program? **[04:33:45.450] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-003999) Your Honor, just to check, we are **[04:33:48.150] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004000) requested for information as to the budget for the executive, the **[04:33:52.910] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004001) legislative, and the judiciary as an aggregate. Your Honor, Mr. Chair. **[04:33:58.720] Rep. Allan U. Ty** (h2r5-turn-004002) Can you break down the amount? **[04:34:01.400] Rep. Allan U. Ty** (h2r5-turn-004003) And as to the percentage? **[04:34:31.540] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004004) Mr. Chair, for Congress, Your Honor, Congress referring to Senate and **[04:34:37.820] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004005) the House of Representatives. The total proposed budget in the NEP is **[04:34:41.940] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004006) 27.892 billion pesos. **[04:34:46.710] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004007) For the judiciary, the entire judiciary, Your Honor, **[04:34:50.500] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004008) Mr. Chair, consistent with the Judicial Fiscal Autonomy Act, **[04:34:54.780] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004009) the total amount **[04:34:56.100] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004010) proposed by the judiciary, which is included in the NEP, **[04:34:59.540] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004011) is 86.270 billion **[04:35:04.160] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004012) pesos, Your Honor. **[04:35:07.220] Rep. Allan U. Ty** (h2r5-turn-004014) And the rest? Of the 7.2 trillion, net of lump sums and interest payments and automatic appropriations, for the executive branch. **[04:35:17.000] Rep. Allan U. Ty** (h2r5-turn-004015) So, Mr. Secretary, in terms of percentage, Congress of the Philippines' **[04:35:22.200] Rep. Allan U. Ty** (h2r5-turn-004016) percentage to the total expenditure program is only 0.4 percent. Am I correct? **[04:35:30.080] Rep. Allan U. Ty** (h2r5-turn-004017) Or less than 0 **[04:35:31.440] Rep. Allan U. Ty** (h2r5-turn-004018) .5 percent? **[04:35:42.770] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004022) Based **[04:35:43.310] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004023) on my quick calculation, Your Honor, it's about 0.4 percent, if it's correct, **[04:35:50.450] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004024) versus **[04:35:52.190] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004025) TEP. **[04:35:56.700] Rep. Allan U. Ty** (h2r5-turn-004026) Magkaiba po kami ng calculator, Your Honor. Chicheck ko lang po yung brand. Mr. Secretary. **[04:36:11.220] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004027) Makaiba **[04:36:11.456] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004028) po kami ng brand ng calculator, Your Honor. For Congress, it's just about 0.39 percent. **[04:36:17.540] Rep. Allan U. Ty** (h2r5-turn-004029) How about for judiciary? **[04:36:19.300] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004030) For judiciary, it's about 0.36. **[04:36:27.680] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004031) That's about 1 **[04:36:30.680] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004032) .19 percent, Your Honor. **[04:36:33.720] Rep. Allan U. Ty** (h2r5-turn-004033) And the rest is for the executive branch. **[04:36:36.740] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004034) Including interest payments and other **[04:36:38.680] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004035) automatic **[04:36:39.040] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004036) appropriations, Your Honor. **[04:36:40.060] Rep. Allan U. Ty** (h2r5-turn-004036-split-2) Correct, Mr. Secretary. **[04:36:42.140] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004037) Yes, Your Honor, Mr. Chair, the rest. But with the exception of **[04:36:46.820] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004038) constitutional commissions, Your Honor, Mr. Chair. **[04:36:52.440] Rep. Allan U. Ty** (h2r5-turn-004039) Thank you, Mr. Secretary. So, what is the approved disbursement program for fiscal year 2026? **[04:37:06.130] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004040) 2026, Your Honor, the latest DBCC-approved disbursement program is at 6.465 trillion pesos, **[04:37:16.550] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004041) Mr. Chair, Your Honor. **[04:37:18.850] Rep. Allan U. Ty** (h2r5-turn-004042) How about for fiscal year 2027? What is the proposed disbursement program? **[04:37:23.990] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004043) For fiscal year 2027, that is 6.9 trillion pesos, Your Honor, Mr. Chair. **[04:37:33.470] Rep. Allan U. Ty** (h2r5-turn-004044) Of the FY2026 disbursement program, how much is expected to be **[04:37:39.968] Rep. Allan U. Ty** (h2r5-turn-004045) used for the settlement of outstanding accounts payable? **[04:37:43.650] Rep. Allan U. Ty** (h2r5-turn-004046) And how much are accounts payable? **[04:37:47.350] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004047) Mr. Chair, accounts payable is actually a moving figure, including current and prior years. **[04:37:55.330] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004048) If the Honorable **[04:37:58.410] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004049) Congressman and Chair would allow, we can submit that information to the Committee on Appropriations. As we will have to validate again. Exactly. Which portion of the disbursement program will go to accounts payables? **[04:38:10.730] Rep. Allan U. Ty** (h2r5-turn-004050) Mr. Secretary, can you not go over your derivation of the FY2026 cash appropriations? **[04:38:16.650] Rep. Allan U. Ty** (h2r5-turn-004051) It states here that in 2026, you have around accounts payable of 1.190 billion. **[04:38:24.170] Rep. Albert S. Garcia** (h2r5-turn-004052) Thank you very much, Honorable T. **[04:38:27.650] Rep. Albert S. Garcia** (h2r5-turn-004053) That will be the last question. Secretary Kim, please reply. **[04:38:32.910] Rep. Albert S. Garcia** (h2r5-turn-004054) Then the other will be submitted. **[04:38:35.950] Rep. Albert S. Garcia** (h2r5-turn-004055) Honorable T, thank you. **[04:38:37.590] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004056) Mr. Chair, we will do submit the details because apparently we don't have that figure right now in any of our briefing materials. But we'll definitely submit or get back to the Honorable Representative as soon as we get the information. **[04:38:51.670] Rep. Albert S. Garcia** (h2r5-turn-004057) Is that okay with the Honorable Ty? **[04:38:53.210] Rep. Allan U. Ty** (h2r5-turn-004057-split-2) Yes, and **[04:38:53.570] Rep. Allan U. Ty** (h2r5-turn-004058) also for the projected disbursement program for FY2027. **[04:38:58.930] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004059) We will do, Your Honor, part of the accounts payables for 2027. **[04:39:03.910] Rep. Albert S. Garcia** (h2r5-turn-004060) Thank you very much. **[04:39:05.950] Rep. Albert S. Garcia** (h2r5-turn-004061) Honorable Allan, **[04:39:07.530] Rep. Albert S. Garcia** (h2r5-turn-004062) so **[04:39:08.110] Rep. Albert S. Garcia** (h2r5-turn-004063) I'll **[04:39:09.310] Rep. Albert S. Garcia** (h2r5-turn-004064) reserve for the second round. **[04:39:11.810] Rep. Albert S. Garcia** (h2r5-turn-004065) So we go back to the majority. **[04:39:15.470] Rep. Albert S. Garcia** (h2r5-turn-004066) Tatawagin ko po yung katabi ko, si **[04:39:17.550] Rep. Albert S. Garcia** (h2r5-turn-004067) Chairman, **[04:39:18.910] Rep. Albert S. Garcia** (h2r5-turn-004068) Representative Miro **[04:39:20.850] Rep. Albert S. Garcia** (h2r5-turn-004069) Quimbo. **[04:39:22.610] Rep. Albert S. Garcia** (h2r5-turn-004070) Please proceed. **[04:39:25.150] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004071) Maraming salamat. Magandang gabi, Senior **[04:39:29.090] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004072) Vice Chairman Abet and to the members of the committee, **[04:39:33.810] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004073) as well as our resource persons. **[04:39:36.970] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004074) My question is very, very quick, very short. I'm sure everybody says that, but anyway. **[04:39:44.030] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004075) Secretary Kim, congratulations on your appointment. **[04:39:47.170] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004076) I've always been **[04:39:48.610] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004077) telling my colleagues that I've worked with somebody with **[04:39:52.130] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004078) you in the past and you're **[04:39:54.150] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004079) certainly somebody who finds solutions instead of raising problems, which **[04:39:59.790] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004080) I think is very, very important. **[04:40:02.230] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004081) Ang **[04:40:02.830] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004082) tanong ko is relative to underspending. **[04:40:06.350] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004083) I **[04:40:06.830] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004084) do not know if you have the figures at least for 2025. **[04:40:10.730] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004085) Would it be too premature to ask for 2026? **[04:40:14.750] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004086) What is our underspending relative to **[04:40:17.330] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004087) year-on-year? Or kaya na ba yun **[04:40:20.350] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004088) makalculate? **[04:40:22.610] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004089) Kasi two years yan, di ba, ang ating effectivity? **[04:40:27.390] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004090) Mr. Chair, Your Honor, the closest that we can probably get when we talk about underspending would be actual disbursement based on program. **[04:40:37.250] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004091) This is for 2026, correct? **[04:40:44.330] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004092) Disbursement as of June 30, Your Honor, that we can actually secure. **[04:40:50.190] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004093) Can you provide me, just provide me in writing, but if you have it, **[04:40:55.910] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004094) you have it by department or **[04:40:59.730] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004095) in general? **[04:41:00.630] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004096) By department, Your Honor, we will submit by department actual disbursement as of end of 2025, full year, including that of... **[04:41:09.950] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004097) mid-year of 2026 as well. We can provide that, Your Honor. **[04:41:13.770] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004098) What is the general figure? What do you have in terms of underspending? **[04:41:23.670] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004099) Kahit for 2025 na lang? **[04:41:29.930] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004100) Full year 2025, Your Honor, Mr. Chair, the **[04:41:33.690] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004101) program disbursement for 2025 is 6.082 trillions and **[04:41:40.030] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004102) the actual spending is 6.030 trillion, **[04:41:44.750] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004103) about 52 **[04:41:46.070] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004104) billion **[04:41:48.110] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004105) short from the program. Your Honor. **[04:41:52.010] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004106) And for 2026, you have a mid-year figure? **[04:41:55.470] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004107) For **[04:41:59.140] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004108) For 2026, Your Honor, our mid-year program is about 3— **[04:42:05.200] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004108-split-2) Excuse me, my **[04:42:05.640] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004109) time is still moving. Go ahead, Secretary. **[04:42:09.600] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004110) Our mid-year program for expenditure, Your Honor, is 3.176 and **[04:42:16.860] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004111) our actual disbursement is about 3.175. So, only about 1 billion short from our program, Your Honor. **[04:42:26.360] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004112) How do you define spending? **[04:42:28.960] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004113) Is that obligated or **[04:42:31.020] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004114) binayad na talaga yan? **[04:42:33.700] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004115) Actual disbursement po ito, Your Honor, Mr. Chair. **[04:42:37.120] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004116) Okay. **[04:42:39.580] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004117) So, **[04:42:40.020] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004118) am I accurate to say that we are practically not **[04:42:43.640] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004119) underspending today? Tama ba? **[04:42:45.740] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004120) That's news to us, ha? **[04:42:49.150] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004121) Based on the latest figures as of June, Your Honor, we're just 1 billion short of our programmed expenditure. **[04:42:56.610] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004122) Okay. Just **[04:42:57.810] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004123) provide us by department in writing na lang. **[04:43:00.730] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004124) Yes, Your Honor, we'll provide. **[04:43:02.370] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004125) So, having said that, at least with that 1 billion that we're referring to or talking about, **[04:43:07.150] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004126) you do recognize that underspending is a major sin. **[04:43:10.990] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004127) Meaning, when **[04:43:12.510] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004128) you set aside money and it doesn't happen, **[04:43:15.290] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004129) there are cascading effects. To us laymen, what is the effect when that happens? **[04:43:21.070] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004130) Yes, Your Honor, as we have seen, of course, economic activity, we're also limited and even our growth was affected if government itself **[04:43:28.610] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004131) was not able to spend what was appropriated. **[04:43:32.530] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004132) And plus the fact that when the projects were actually funded, **[04:43:37.410] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004133) there were other projects that were not funded as well. So, these were **[04:43:40.830] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004134) put into sideline to prioritize these projects. So, we really would like these projects to be implemented, Your Honor, Mr. Chair. **[04:43:50.410] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004135) I state that, Secretary, because one of the reasons why there is... is **[04:43:54.670] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004136) underspending at least for public works is **[04:43:57.870] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004137) primarily because of a number of requirements, which today we are also facing relative **[04:44:03.310] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004138) to the issuance of the or the NEP **[04:44:06.770] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004139) results. **[04:44:08.210] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004140) Meron kasing isa dun is yung... **[04:44:11.030] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004141) One of the reasons why things don't get implemented is **[04:44:15.370] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004142) the lack of support on the part of the local government. **[04:44:18.730] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004143) So, isa yun eh. **[04:44:19.950] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004144) Pag hindi nakakuha ng building permit, **[04:44:22.610] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004145) location plan, **[04:44:24.470] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004146) ng demolition permit, **[04:44:26.410] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004147) talagang walang magawa eh. **[04:44:29.090] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004148) So, today it's now a basic requirement for any new item in the budget of the DPWH. What **[04:44:36.710] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004149) is the remedy when that happens? We have to provide a remedy when the **[04:44:40.950] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004150) LGU itself becomes the stumbling block. **[04:44:44.150] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004151) Ano bang recourse natin dyan? **[04:44:46.590] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004152) I think number one, Mr. Chair, this is insofar as actual implementation is concerned, definitely yun pong permitting is... Already after the allotment was issued, **[04:44:56.950] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004153) we are not requiring those permits prior to the release of the **[04:45:00.650] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004154) allotment. And that is also why we put premium, Your Honor, dun po sa **[04:45:04.890] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004155) early coordination at **[04:45:08.190] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004156) the very beginning of the planning. And even the departments, we actually require **[04:45:12.950] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004157) them during budget preparation. Ito pong for 2027, **[04:45:16.210] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004158) there's already this manifestation that we require from the agencies. Ito pong mga ganitong **[04:45:21.330] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004159) coordination with the respective local... localities sa pagkuha po ng mga necessary permits, including national government, **[04:45:28.650] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004160) are actually tapos na or taken care of so that we avoid a similar occurrence for 2027, Your Honor. **[04:45:36.330] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004161) But what happens kung sa CDC level pa lang, hindi siya tine-take up or in-approve? **[04:45:41.050] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004162) And that's pre-budgeting. **[04:45:42.770] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004163) So, anong recourse? **[04:45:44.450] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004164) Ibig ba sabihin, if there's a political dynamics within a local **[04:45:49.330] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004165) government, wala nang talagang pag-asa makakuha ng pondo **[04:45:52.370] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004166) galing sa national government? What is the **[04:45:54.840] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004167) recourse, Secretary Kim? **[04:45:58.570] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004168) Isa po kasi, Your Honor, sa kinukonsider natin is also a provision of the local government code on coordination, of course, with the local **[04:46:08.110] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004169) government units. But definitely, **[04:46:10.670] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004170) in ideal sense, Your Honor, what we envision is dapat po aligned yung **[04:46:17.590] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004171) development plans, both at the local level, napapanig po sa regional development plan, at kung ano man po yung pupondohan ng national government, is actually in line with **[04:46:27.950] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004172) the requirements of the local **[04:46:30.430] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004173) government unit. So, **[04:46:32.030] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004174) the coordination part on the part of the national government agency who will implement the project is very **[04:46:40.190] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004175) crucial dun po sa subject matter, subject **[04:46:44.070] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004176) project that we are discussing, Your Honor. **[04:46:46.630] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004177) It is crucial, but **[04:46:48.370] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004178) is it **[04:46:48.790] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004179) critical? Ibig ko sabihin, **[04:46:50.990] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004180) what if na, Secretary, that that's a situation on the ground? **[04:46:56.010] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004181) It's not uncommon, **[04:46:56.730] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004182) because I'm speaking from my own experience. **[04:46:59.950] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004183) What is the remedy? **[04:47:01.210] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004184) Do we just **[04:47:02.150] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004185) write? I mean, anong sumulat na kami sa **[04:47:05.730] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004186) lahat, anti-red tape, pero wala eh. Anong remedy for development in a particular district? **[04:47:15.270] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004187) I think while prior consultation with the local government code is something that is enshrined in the **[04:47:22.510] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004188) local government code, ito po ay mga priority. Ito po ay mga priority projects ng national government. So, I believe we really have to **[04:47:29.430] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004189) exhaust these remedies to make sure that the projects gets implemented, kasi **[04:47:34.310] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004190) sayang naman po yung resources allocated for these projects that will also **[04:47:38.930] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004191) redound to benefits ng ating mga kababayan in that specific locality. Nevertheless, Your Honor, if **[04:47:46.830] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004192) there is a specific project, then probably we can also call the attention of the anti-red tape authority, given that these are also national projects. **[04:47:56.010] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004193) We've done it, and they have been callous relative to that. **[04:47:59.510] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004194) Sir Kim, **[04:48:00.750] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004195) yun lang naman ang tanong natin eh. Sa barangay, okay siya lahat, particularly for highly urbanized cities, we have no other requires higher than that authority. **[04:48:08.870] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004196) If I accept that answer, then that's not local autonomy, that's local **[04:48:13.230] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004197) authority monopoly. Hindi naman yun ang ini-envision ng batas. **[04:48:17.250] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004198) Because power is meant to be shared equally, because hindi naman yung isang may repository of the truth eh. **[04:48:23.430] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004199) So, yun ang hinihingi kung ano ang pwedeng, kung ano ang magagawa sa ganyang pagkakataon. There has to be a solution, guys. **[04:48:31.750] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004200) Mr. Chair, since the project is enacted **[04:48:36.290] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004201) in the GAA and hindi natin simply mapapalitan yung project, the other recourse that we are also top **[04:48:43.050] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004202) of mind is we seek the intervention of the Department of Interior and Local Government, **[04:48:48.630] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004203) who has the power of supervision over the local government units, Your Honor, Mr. Chair. **[04:48:54.890] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004204) Hindi yung problema kasi. Hindi natin sa CDC pa lang eh, sa **[04:48:57.890] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004205) pre-budget eh. So, sa post, okay yun, pero yung pre, anong recourse? **[04:49:02.150] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004206) Kung hindi kami makadaan sa CDC, na hindi kami ma-agenda, paano yun? **[04:49:35.180] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004207) Mr. Chair, since these are actually more internal in terms of local government operations, may we respectfully defer to the **[04:49:42.760] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004208) DILG on other possible recourse on that particular instance? **[04:49:47.640] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004209) I will have to seek your intervention. **[04:49:51.680] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004210) Because this is a budget matter. **[04:49:54.200] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004211) Whether it is putting it in the GAA itself, at least on the implementation side, saying that **[04:49:59.600] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004212) items or permits are deemed approved, if submitted, complete within 30 days, and still there is no action, that's one recourse that we have. **[04:50:08.640] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004213) But it is the pre-budget that **[04:50:10.480] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004214) is my source of concern, which is really plaguing us, **[04:50:13.760] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004215) and especially with the requirements that you have come up with. Anong gagawin namin? **[04:50:17.720] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004216) Mag-aantay kami ng isang taon, dalawang taon, **[04:50:20.300] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004217) bago kami magkaroon ng line item sa budget? We **[04:50:26.520] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004218) We fully recognize that, Your Honor, especially its implications in succeeding projects for particular localities. **[04:50:32.780] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004219) localities. And we'll also check and sit down with the DILG on particular **[04:50:38.220] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004220) recourse or actions that we can take. We'd be happy to work with Your **[04:50:42.640] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004221) Honor on this particular matter. **[04:50:45.420] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004222) I will normally never accept **[04:50:48.480] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004223) that answer, but today I will accept it. **[04:50:51.020] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004224) Because we cannot allow that **[04:50:53.420] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004225) there is political domination. It's the defense of our district. **[04:50:56.760] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004226) Hindi talaga katanggap-tanggap. Kailangan **[04:50:58.720] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004227) mahanapin siya ng solusyon. **[04:51:01.020] Rep. Atty. Miro S. Quimbo** (h2r5-turn-004228) Thank you very much, SBC. **[04:51:04.040] Rep. Albert S. Garcia** (h2r5-turn-004229) Maraming salamat, Kong Miro. **[04:51:07.180] Rep. Albert S. Garcia** (h2r5-turn-004230) And I hope DBM **[04:51:09.740] Rep. Albert S. Garcia** (h2r5-turn-004231) with DILG and the representative of **[04:51:12.660] Rep. Albert S. Garcia** (h2r5-turn-004232) Marikina resolves this issue very, very soon. **[04:51:16.880] Rep. Albert S. Garcia** (h2r5-turn-004233) Thank you. **[04:51:17.900] Rep. Albert S. Garcia** (h2r5-turn-004234) So, for **[04:51:19.380] Rep. Albert S. Garcia** (h2r5-turn-004235) the last representative, **[04:51:22.400] Rep. Albert S. Garcia** (h2r5-turn-004236) for the first round, **[04:51:24.940] Rep. Albert S. Garcia** (h2r5-turn-004237) Marikina. Who would propound her questions, may we call on **[04:51:29.200] Rep. Albert S. Garcia** (h2r5-turn-004238) Congresswoman Renee Co. **[04:51:33.060] Rep. Renee Louise M. Co** (h2r5-turn-004239) Thank you, Chair. **[04:51:35.920] Rep. Renee Louise M. Co** (h2r5-turn-004240) First questions ko po for DBM. **[04:51:38.560] Rep. Renee Louise M. Co** (h2r5-turn-004241) Na-mention po kanina yung free higher education deficiency. And yung update din po, Mr. Chair, **[04:51:44.400] Rep. Renee Louise M. Co** (h2r5-turn-004242) that may 9.75 billion na nga pong released from the free higher education deficiency. So, I'm happy to hear that. **[04:51:52.200] Rep. Renee Louise M. Co** (h2r5-turn-004243) May 12 billion kasi pong na-promise. From last year's budget deliberations. Dahil may deficiency na hindi na-release to the SUCs. And na-pinpoint actually yung cause of that. May several questions po ako para ma-ensure na hindi na po ulit mangyari ito. Una po, nakalagay **[04:52:15.960] Rep. Renee Louise M. Co** (h2r5-turn-004244) po kasi sa RA 10931 na dapat po ang basihan ng formula ng budget ng SUC ay yung projected number of enrollees for each academic year. Since **[04:52:25.920] Rep. Renee Louise M. Co** (h2r5-turn-004245) 2022, nung nalipat po sa DBM yung pag-calculate ng budget neto, ang nakuha nating report ay naging based **[04:52:35.200] Rep. Renee Louise M. Co** (h2r5-turn-004246) po on actual number of enrollees of the previous academic year. Ito po yung naging root cause ultimately kung bakit merong 12 billion higher **[04:52:43.840] Rep. Renee Louise M. Co** (h2r5-turn-004247) education **[04:52:45.400] Rep. Renee Louise M. Co** (h2r5-turn-004248) deficiency. So, can **[04:52:48.480] Rep. Renee Louise M. Co** (h2r5-turn-004249) I ask the good secretary kung resolved na po ba ito? Ano po ba yung formula na gamit nyo ngayon para i-calculate? Yung budget ng SUCs. **[04:53:00.360] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004250) Mr. Chair, your honor, in calculating for particularly for the 2027 level **[04:53:06.880] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004251) for **[04:53:07.740] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004252) the free **[04:53:10.060] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004253) higher education, we have used the average actual enrollment including the growth over the past three years so **[04:53:17.780] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004254) that at the very least we can apply hindi lang po yung actual but even yung projected growth based on historical **[04:53:23.960] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004255) figure. So, this way, **[04:53:26.580] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004256) medyo mas malapit po ito. Hopefully, mas malapit po ito because you already factored in potential average growth rate. **[04:53:33.700] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004257) Hindi na lang po siya yung actual as of last academic year. **[04:53:38.240] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004258) In addition, continues po, your honor, Mr. Chair, yung aming discussion with CHED and UNIFAST para po mas mai-align **[04:53:46.960] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004259) yung programming for the universal access for quality tertiary education. In **[04:53:52.140] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004260) fact, meron pong ongoing study on the normative formula for **[04:53:56.420] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004261) our state universities and colleges. And meron po kaming **[04:53:59.380] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004262) scheduled meeting this week kung hindi po makancel **[04:54:03.380] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004263) dahil sa malakas **[04:54:05.120] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004264) pong pag-ulan. We are scheduled to meet po with CHED, UNIFAST, and some **[04:54:08.840] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004265) representatives of our SUCs to discuss the proposed normative financing moving forward. **[04:54:14.700] Rep. Renee Louise M. Co** (h2r5-turn-004266) Mr. Chair, Secretary, magkukompang question na rin ako dahil marami tayong gustong itanong. So, una po, actually, yung unang nirequest natin last year nung kinampanya po ito kasama yung SUC administrators and student leaders, ay 15 billion po yung FHE deficiency na isagot dahil po inaasahan natin na meron pa rin deficiency from 2025 to 2026 dahil hindi nga po nagbago yung calculation. So, can I ask po, okay, from yung 12 billion covering up to 2025, **[04:54:47.360] Rep. Renee Louise M. Co** (h2r5-turn-004267) ano po ba yung deficiency from 2025 to 2026, if any, Secretary, Mr. Chair? **[04:54:59.840] Rep. Renee Louise M. Co** (h2r5-turn-004268) And to add na lang din po, dahil noong kinokontrol, kung consult po natin yung state universities and college, they're reporting na meron pa rin. Lumiit, pero meron pa rin pong deficiency. So, syempre, we'd like to ask, paano po yun? And paano po syempre i-cover yun? **[04:55:15.220] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004269) Based on latest data available to DBM, Your Honor, we don't have yet information on the supposed deficiency. **[04:55:22.920] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004270) And we stand ready and we continuously coordinate with CHED and UNIFAST so that we can secure the data so **[04:55:29.960] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004271) that once we go back to Congress, we can at least find some solution. There's **[04:55:33.980] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004272) funding deficiency and where we can source them in the event there's a deficiency for **[04:55:38.780] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004273) the latest academic year, Your Honor. **[04:55:41.400] Rep. Renee Louise M. Co** (h2r5-turn-004274) But that's for the latest, no? Pero meron tayong previous academic years na hindi po na-cover ng 12 billion. **[04:55:47.300] Rep. Renee Louise M. Co** (h2r5-turn-004275) But anyway, we have data rin po, Secretary, **[04:55:49.880] Rep. Renee Louise M. Co** (h2r5-turn-004276) Mr. Chair. We can submit that para po ma-insure na kung ano man pong kailangan may pondo ay mapondohan sa pinakakagyat. Next question po, regarding din sa operation ng SUCs. We are aware. We are aware that DBM, in a memo, required different government agencies to essentially ibalik 20% ng kanilang MOOE para po sa uplift, I assume. And ang **[04:56:18.620] Rep. Renee Louise M. Co** (h2r5-turn-004277) ating SUCs ay nag-submit ng kanilang posesyon na sana hindi po gawin for SUCs. Kulang na kulang na nga po yung budget sa operations, matatanggalan pa rin po. May I ask DBM kung meron na po ba silang response doon? Doon sa kanilang concern. **[04:56:35.900] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004278) Mr. Chair, Your Honor, we confirm that we have received that request from our SUCs for exemption from the implementation of NBC 906, 602 and 603. However, we are constrained **[04:56:49.960] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004279) because there is no such provision for any exemption. What we clarified sa **[04:56:54.940] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004280) atin pong mga SUCs, Your Honor, Mr. Chair, **[04:56:57.680] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004281) is not, it's just that we are not asking for, **[04:57:01.980] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004282) 20% of their MOOE. **[04:57:03.700] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004283) The coverage of the circular is actually 20% of unobligated MOOE, which is different from 20% **[04:57:11.620] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004284) of MOOE. **[04:57:12.960] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004285) Because, of course, we don't calculate and get savings from **[04:57:16.700] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004286) allotments already obligated. So that's two different figures. And we **[04:57:21.740] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004287) thank, of course, those SUCs who have heeded the call. **[04:57:24.560] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004288) May mga nakapag-submit naman po ng savings nila in accordance sa NBC 602. And 603, Your Honor, Mr. Chair. **[04:57:34.040] Rep. Renee Louise M. Co** (h2r5-turn-004289) Mr. Chair, may isa pa rin po tayong nakuhang concern from SUCs na meron po silang mga MOOEs requested for extension campuses na hindi po nag-agrant. **[04:57:45.180] Rep. Renee Louise M. Co** (h2r5-turn-004290) And dahil po doon napapwersang kumuha ng piece of the pie sa MOOE ng main campuses para po mapondohan lang yung operations ng extension campuses. We can discuss this po. Would the good secretary be amenable to a dialogue or a discussion para po ma-insure na hindi po, kung mangyari ito para po pondo and continuous yung operations ng lahat ng SUCs natin? **[04:58:07.200] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004291) We fully recognize that, Your Honor, Mr. Chair, in fact, we're maintaining an inventory of all recent legislations as well, **[04:58:17.020] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004292) institutionalizing satellite campuses or annexes so that this can be factored in in our programming, **[04:58:23.240] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004293) but also cognizant of available resources din po sa ating mga SUCs, kabilang na nga rin po itong **[04:58:29.120] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004294) latest release natin in settling our arrears for free higher education. But we'd be happy to sit **[04:58:34.620] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004295) with Your Honor to strategize how we'll be able to **[04:58:38.960] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004296) settle **[04:58:41.060] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004297) ito pong ating mga funding requirements for satellite units and extension campuses. **[04:58:48.060] Rep. Renee Louise M. Co** (h2r5-turn-004298) Happy to hear that, Secretary, lalo na po, as it stands, may mga kawawa po talagang legislated extension campuses dahil wala pong pondo. Next **[04:58:56.220] Rep. Renee Louise M. Co** (h2r5-turn-004299) question ko po ay on confidential and intelligence funds. **[04:59:01.140] Rep. Renee Louise M. Co** (h2r5-turn-004300) According to—during our turnover, you mentioned po na yung mga ahensya lang pong legally authorized ang merong CIF this 2027. Can I ask, ano pong mga ahensya ang legally authorized to have CIF? Is there a list that DBM has? **[04:59:18.220] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004301) Mr. Chair, Your Honor, the following po are the agencies with confidential expenses in the proposed 2027 NEP. **[04:59:31.280] Rep. Renee Louise M. Co** (h2r5-turn-004303) Can **[04:59:32.480] Rep. Renee Louise M. Co** (h2r5-turn-004304) I ask, Mr. Chair, so yan po ay for 2027, every year po ba that changes according to which agency requests for confidential funds? **[04:59:42.420] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004305) Not necessarily, Your Honor. In fact, for 2027, we **[04:59:47.300] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004306) reverted to the **[04:59:50.780] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004307) same agencies na meron pong confidential and intelligence funds under the 2026 NEP. So **[04:59:57.160] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004308) these are practically same **[04:59:58.960] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004309) agencies when we refer to the NEP. Although the levels are lower **[05:00:03.520] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004310) than the 2026 GAA, Your Honor, Mr. Chair. **[05:00:08.480] Rep. Renee Louise M. Co** (h2r5-turn-004311) So there's no one list? Na ito lang pong pwedeng mga ahensya may CIF, yung **[05:00:14.240] Rep. Renee Louise M. Co** (h2r5-turn-004312) iba hindi? **[05:00:16.000] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004313) Ito po yung list, Your Honor, If that is what we refer to as the one list, then these are the agencies who are legally authorized and historically provided for with confidential and intelligence funds. **[05:00:27.300] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004314) in the GAA, Your Honor. **[05:00:33.520] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004315) Should I mention the agencies? **[05:00:35.280] Rep. Renee Louise M. Co** (h2r5-turn-004316) Yes, if you could, Secretary. **[05:00:42.190] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004317) So we start with **[05:00:44.225] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004318) the confidential funds. **[05:00:45.242] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004319) For confidential funds, Your Honor: the Office of the President; DENR-OSEC; **[05:00:49.820] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004320) DOF-BOC; **[05:00:50.837] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004321) DOF-BIR; **[05:00:53.380] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004322) DILG-OSEC; **[05:00:54.397] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004323) DOJ-OSEC; **[05:00:58.466] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004324) [unclear agency name]; **[05:01:05.950] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004330) Bureau of Immigration, DOJ NBI, **[05:01:09.850] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004331) DOJ Office **[05:01:12.450] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004332) of the Solicitor General, **[05:01:14.010] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004333) DND OSEC, **[05:01:16.270] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004334) DSWD OSEC, **[05:01:20.890] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004335) DOTR Office of Transportation Security, the **[05:01:25.470] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004336) Anti-Money Laundering Council, **[05:01:28.030] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004337) Games and Amusement Board, **[05:01:30.150] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004338) National Intelligence Coordinating Agency, National Security Council, **[05:01:34.710] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004339) OPAPRU, PIDEA, **[05:01:36.330] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004340) COA, the Ombudsman, Commission on Human Rights. Basically, your honor, those **[05:01:41.150] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004341) with mandate in conduct of surveillance activities, counterintelligence, and investigation. **[05:01:47.150] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004342) For intelligence funds, your honor, **[05:01:49.530] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004343) it's limited to the Office of the President, the **[05:01:53.250] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004344) Philippine National Police, **[05:01:55.110] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004345) the **[05:01:55.710] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004346) DND OSEC, **[05:01:57.090] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004347) the Armed Forces of the Philippines, the **[05:02:00.190] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004348) Philippine Coast Guard and NICA, Your Honor, Mr. Chair. **[05:02:04.910] Rep. Renee Louise M. Co** (h2r5-turn-004349) So kung may ahensya po bang gustong may confidential activities or gustong maipa confidential expenses, they have to ask DBM? **[05:02:13.530] Rep. Renee Louise M. Co** (h2r5-turn-004350) Does DBM have the power to say, sige, pwede, and then ilagay natin sa budget? **[05:02:19.690] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004351) Any request for the grant of confidential expenses, your honor, will have to be... will be evaluated based on their mandate. **[05:02:26.450] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004352) If the agency has the mandate in conducting **[05:02:29.170] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004353) surveillance **[05:02:31.630] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004354) and counter-surveillance activities, yun lamang po yung magiging basis **[05:02:35.830] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004355) natin sa pag-propose ng **[05:02:39.070] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004356) confidential expenses. But then again, your honor, Mr. Chair, in the 2027 budget, **[05:02:43.710] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004357) nanatili po yung same list ng mga agencies na **[05:02:46.890] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004358) meron pong confidential and intelligence funds. **[05:02:50.830] Rep. Renee Louise M. Co** (h2r5-turn-004359) And wala po ang Department of Education and OVP. Dito sa list na ito. **[05:02:55.270] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004360) We confirm, your honor, wala po ang Department of Education and Office of the Vice President sa **[05:03:01.630] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004361) listahan po ng **[05:03:03.110] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004362) mayroong confidential and intelligence funds for 2027. **[05:03:07.150] Rep. Renee Louise M. Co** (h2r5-turn-004363) Or historically, have they never been in the list? **[05:03:19.390] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004364) Based on this table, your honor, Mr. Chair, **[05:03:23.350] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004365) there was one year kung saan po nagkaroon po ng confidential **[05:03:28.010] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004366) fund ang **[05:03:29.870] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004367) Office of the Vice President and DepEd. And that was in... In 2023, **[05:03:35.650] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004368) your honor, Mr. Chair. **[05:03:38.190] Rep. Renee Louise M. Co** (h2r5-turn-004369) So, **[05:03:38.830] Rep. Renee Louise M. Co** (h2r5-turn-004370) if they request again, maaaring i **[05:03:42.850] Rep. Renee Louise M. Co** (h2r5-turn-004371) -evaluate pa rin ang DBM. So, I guess, this is of... I'm asking this dahil mataas po yung public interest dito. Currently, there's concurrent processes **[05:03:54.230] Rep. Renee Louise M. Co** (h2r5-turn-004372) in the Senate, tinitignan yung mandato ng DepEd and OVP to actually maghawak ng confidential and intelligence funds. It's been found that... **[05:04:03.470] Rep. Renee Louise M. Co** (h2r5-turn-004373) It was used on tree planting activities, parties, other events. So, actually, my question would **[05:04:10.770] Rep. Renee Louise M. Co** (h2r5-turn-004374) like to go a little bit in detail if the Chair will allow me. **[05:04:14.210] Rep. Albert S. Garcia** (h2r5-turn-004375) Last question, Congresswoman Rennie. Pwede pa naman next round. **[05:04:18.810] Rep. Renee Louise M. Co** (h2r5-turn-004376) Thank you. Mr. Chair, **[05:04:20.330] Rep. Renee Louise M. Co** (h2r5-turn-004377) can the DBM check the physical and **[05:04:22.430] Rep. Renee Louise M. Co** (h2r5-turn-004378) financial plan? Ito po ay annex sa lahat ng mga agencies na nag-request at mag-share ng kanilang mga confidential expenses. **[05:04:41.960] Rep. Renee Louise M. Co** (h2r5-turn-004379) Can the DBM check and maybe deny yung request for confidential expenses based on the physical and financial plan kung na-check nila na hindi pala **[05:04:51.860] Rep. Renee Louise M. Co** (h2r5-turn-004380) in line sa mandate nila? **[05:04:54.420] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004381) Well, sa umpisa pa lang po kasi, your honor, Mr. Chair, yun pong pagkakaroon ng confidential and intelligence funds, babalik po muli tayo dun sa mandate. Pagdating po dun sa physical and financial plan, **[05:05:07.840] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004382) ang DBM po, nire-review po natin yan. But our... Our **[05:05:11.920] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004383) visibility is also limited kasi nga po yung detalye siyempre po nung paggagamitan actually ay **[05:05:17.500] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004384) confidential as well. So, yun po yung nagiging bahagi natin sa evaluation. **[05:05:24.300] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004385) Yun pong actual na pinagagamitan po, doon na po pumapasok yung role po ng COA sa pag-audit kung saan actually dinala yung confidential and intelligence funds ng mga ahensya. Mr. **[05:05:34.380] Rep. Renee Louise M. Co** (h2r5-turn-004386) Chair, I make this manifestation because **[05:05:36.440] Rep. Renee Louise M. Co** (h2r5-turn-004387) ayaw **[05:05:38.240] Rep. Renee Louise M. Co** (h2r5-turn-004388) nating maulit yung nangyayari ngayon. Na ito... It took spending and then pagbubut-but ng COA and then years after, makikita kung gaano kadami yung anomalies bago makita na **[05:05:51.620] Rep. Renee Louise M. Co** (h2r5-turn-004389) hindi pala tama, kailangan ibalik sa kaban ng bayan yung maling nagasta. So, if sa level pa lang po ng DBM, ay kaya na po pala siyang ma-check, may some level of discretion, may some level of **[05:06:05.760] Rep. Renee Louise M. Co** (h2r5-turn-004390) accountability **[05:06:07.400] Rep. Renee Louise M. Co** (h2r5-turn-004391) at that level, kaya na pong mangyari. We'd like to... We'd like to see kung pwedeng mas i-exercise ng DBM yun. And I'm asking this also dahil in 2018, nagkaroon po ng... or 2017, nagkaroon po ng sudden increase yung confidential expenses ng Office of the President. From 2016, 500 million, naging 2.5 billion na po. **[05:06:29.540] Rep. Renee Louise M. Co** (h2r5-turn-004392) And up **[05:06:31.080] Rep. Renee Louise M. Co** (h2r5-turn-004393) until now, we don't have transparent reasons kung bakit, except noong 2017, may limang agencies and purposes na dinescribe. Kung saan po pwedeng pumunta tong 2.5 billion na ito. So may I ask, last question, Mr. Chair, this 2.5 billion pesos na ganito kalaki na confidential expenses ng Office of the President, may kaalaman po ba yung DBM kung saan po ito napupunta? Mayroon pong five purposes na nilista before. **[05:07:00.340] Rep. Renee Louise M. Co** (h2r5-turn-004394) Presidential **[05:07:00.980] Rep. Renee Louise M. Co** (h2r5-turn-004395) Anti-Organized Crime Commission, Philippine Center on Transnational Crime, **[05:07:05.280] Rep. Renee Louise M. Co** (h2r5-turn-004396) etc. Pero hindi rin po detalyado. Walang specific budget allocation. Okay, **[05:07:11.840] Rep. Albert S. Garcia** (h2r5-turn-004397) so that will be the last question, Congresswoman Rene. **[05:07:15.100] Rep. Albert S. Garcia** (h2r5-turn-004398) Maraming salamat. Secretary Kim, **[05:07:17.120] Rep. Albert S. Garcia** (h2r5-turn-004399) please **[05:07:17.420] Rep. Albert S. Garcia** (h2r5-turn-004400) reply. **[05:07:18.780] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004401) Your Honor, as to evaluating, we would continue evaluating any request. In fact, **[05:07:23.960] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004402) for 2027, mayroon po kaming mga na-receive na request for confidential funds. **[05:07:30.000] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004403) But upon evaluation, nakita po namin na po pwede namang hindi confidential yung nature ng expenses. At doon na lang po namin **[05:07:37.120] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004404) probably i-dadagdag. Instead of it being a confidential. So bahagi po yun nung ating evaluation. **[05:07:43.600] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004405) As to the details kung saan po yung actual na paggamitan ng **[05:07:47.920] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004406) confidential and intelligence funds, considering the nature of these funds, Your Honor, **[05:07:52.660] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004407) nandun lang po kami sa overall program or overall strategies kung saan po ito maaaring mapunta. Consistent din po doon sa joint circular that is issued on how intelligence and confidential funds are authorized to be disbursed. Your Honor, Mr. Chair. **[05:08:08.720] Rep. Renee Louise M. Co** (h2r5-turn-004408) Thank you. Thank you, Mr. Chair. **[05:08:10.200] Rep. Albert S. Garcia** (h2r5-turn-004409) Thank you very much, Congresswoman Renee. And thank you very much, **[05:08:13.320] Rep. Albert S. Garcia** (h2r5-turn-004410) Secretary Kim. **[05:08:14.880] Rep. Albert S. Garcia** (h2r5-turn-004411) That ends our first round. **[05:08:18.270] Rep. Albert S. Garcia** (h2r5-turn-004412) And we will proceed immediately to **[05:08:21.220] Rep. Albert S. Garcia** (h2r5-turn-004413) our second round. At dito po sa second round, wala na pong majority-minority independent. Kung **[05:08:28.180] Rep. Albert S. Garcia** (h2r5-turn-004414) sino po yung unang nag-register, **[05:08:30.080] Rep. Albert S. Garcia** (h2r5-turn-004415) sila po yung unang **[05:08:31.720] Rep. Albert S. Garcia** (h2r5-turn-004416) tatawagin. **[05:08:32.720] Rep. Albert S. Garcia** (h2r5-turn-004417) So, may **[05:08:34.100] Rep. Albert S. Garcia** (h2r5-turn-004418) we call on **[05:08:34.860] Rep. Albert S. Garcia** (h2r5-turn-004419) Representative Antonio Tinio to **[05:08:38.660] Rep. Albert S. Garcia** (h2r5-turn-004420) begin our second round. **[05:08:40.300] Rep. Albert S. Garcia** (h2r5-turn-004421) Thank you. **[05:08:41.420] Rep. Antonio L. Tinio** (h2r5-turn-004422) Thank you, Chair. **[05:08:42.580] Rep. Antonio L. Tinio** (h2r5-turn-004423) Chair, babalikan ko yung pera, personal economic relief allowance. **[05:08:47.720] Rep. Antonio L. Tinio** (h2r5-turn-004424) Kanina, tama po ba ang intindi ko? Sabi ni Secretary **[05:08:51.500] Rep. Antonio L. Tinio** (h2r5-turn-004425) Kim, **[05:08:52.240] Rep. Antonio L. Tinio** (h2r5-turn-004426) ay may **[05:08:53.080] Rep. Antonio L. Tinio** (h2r5-turn-004427) study ngayon and **[05:08:55.200] Rep. Antonio L. Tinio** (h2r5-turn-004428) then they will hopefully **[05:08:57.060] Rep. Antonio L. Tinio** (h2r5-turn-004429) recommend to the President that by 2027, **[05:09:01.140] Rep. Antonio L. Tinio** (h2r5-turn-004430) ay mag-implement ng increase sa **[05:09:03.620] Rep. Antonio L. Tinio** (h2r5-turn-004431) pera o personal economic relief allowance. Tama po ba ang intindi ko? **[05:09:08.680] Rep. Antonio L. Tinio** (h2r5-turn-004432) Yun ang sinabi niyo kanina. **[05:09:10.640] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004433) That is correct, Your Honor, Mr. Chair. **[05:09:13.340] Rep. Antonio L. Tinio** (h2r5-turn-004434) Okay. Touch move na yan. **[05:09:16.000] Rep. Antonio L. Tinio** (h2r5-turn-004435) Ibig sabihin, ang plano talaga or recommendation is by **[05:09:20.180] Rep. Antonio L. Tinio** (h2r5-turn-004436) 2027, may **[05:09:22.900] Rep. Antonio L. Tinio** (h2r5-turn-004437) increase sa pera. At matutuwa po ang lahat **[05:09:26.900] Rep. Antonio L. Tinio** (h2r5-turn-004438) ng mga government employees na nandito, yung mga regular. **[05:09:30.540] Rep. Antonio L. Tinio** (h2r5-turn-004439) Dahil **[05:09:31.140] Rep. Antonio L. Tinio** (h2r5-turn-004440) pinag-uusapan natin yung additional 2,000 a month na **[05:09:35.240] Rep. Antonio L. Tinio** (h2r5-turn-004441) matagal ng **[05:09:35.820] Rep. Antonio L. Tinio** (h2r5-turn-004442) napako. **[05:09:39.680] Rep. Antonio L. Tinio** (h2r5-turn-004444) Of course, **[05:09:40.160] Rep. Antonio L. Tinio** (h2r5-turn-004445) ang tanong kagad dyan ay magkano? **[05:09:44.240] Rep. Antonio L. Tinio** (h2r5-turn-004446) Kung increase, magkano? At may budget ba yan sa pinropose nyo? **[05:09:51.040] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004447) Mr. Chair, Your Honor, actually yun po yung bahagi ng pag-aaral. Kung magkano po yung maire-recommendang increase. **[05:09:57.640] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004448) At yung pangalawa pong factor din is hopefully, **[05:10:01.500] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004449) po yung magiging source po dito ay yung Miscellaneous Personnel Benefits Fund, **[05:10:06.480] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004450) yun din po sana yung hinahabol natin. Na hanggat maaari ay hindi po mabawasan dahil yun po yung makakaapekto doon sa kakayahan nating makapag-implement nung any increase doon po sa ating pera allowance para sa ating mga government **[05:10:21.740] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004451) employees. **[05:10:22.820] Rep. Antonio L. Tinio** (h2r5-turn-004452) Okay. Kaya ako po tinatanong yan kasi nga 55 billion pesos ang nasa MPBF. Isang lump sum po yan. **[05:10:29.880] Rep. Antonio L. Tinio** (h2r5-turn-004453) At sabi nyo, dyan maaaring kunin. **[05:10:31.780] Rep. Antonio L. Tinio** (h2r5-turn-004454) And earlier, in my interpretation earlier, sinabi ko historically, yung **[05:10:36.700] Rep. Antonio L. Tinio** (h2r5-turn-004455) MPBF isa sa mga ginagalaw. **[05:10:39.740] Rep. Antonio L. Tinio** (h2r5-turn-004456) Binabawasan to make room for congressional insertion. So, kaya gusto ko pong i-diin, Mr. Chair, na malinaw na, no, ang plano dito sa **[05:10:51.500] Rep. Antonio L. Tinio** (h2r5-turn-004457) 55 billion ay **[05:10:53.360] Rep. Antonio L. Tinio** (h2r5-turn-004458) pang pondo **[05:10:54.260] Rep. Antonio L. Tinio** (h2r5-turn-004459) sa pera **[05:10:56.160] Rep. Antonio L. Tinio** (h2r5-turn-004460) ng **[05:10:56.820] Rep. Antonio L. Tinio** (h2r5-turn-004461) mga government employees. So, dapat hindi na ito galawin at bawasan ng **[05:11:02.580] Rep. Antonio L. Tinio** (h2r5-turn-004462) kongreso. **[05:11:03.540] Rep. Antonio L. Tinio** (h2r5-turn-004463) So, kung para **[05:11:05.680] Rep. Antonio L. Tinio** (h2r5-turn-004464) magkaroon lang tayo ng idea, Mr. Chair, **[05:11:08.720] Rep. Antonio L. Tinio** (h2r5-turn-004465) magkano ba ang, for a 1,000 peso increase in the **[05:11:13.120] Rep. Antonio L. Tinio** (h2r5-turn-004466) pera, yung **[05:11:14.520] Rep. Antonio L. Tinio** (h2r5-turn-004467) 2,000 maging 3,000, magkano ang kailangan? **[05:11:18.460] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004468) Kung, Mr. Chair, Your Honor, based on our estimate, kung 1,000 ang i-increase po ng pera, representing 50% increase, **[05:11:27.220] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004469) it will have an annual funding requirement of about 24 billion pesos, Your Honor. **[05:11:33.560] Rep. Antonio L. Tinio** (h2r5-turn-004470) So, 24 billion pesos, 55 billion ang MPBF. **[05:11:39.780] Rep. Antonio L. Tinio** (h2r5-turn-004471) So, **[05:11:40.380] Rep. Antonio L. Tinio** (h2r5-turn-004472) maximum, kaya ng 2,000. **[05:11:42.940] Rep. Antonio L. Tinio** (h2r5-turn-004473) Tama po ba? **[05:11:44.780] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004474) Although, Your Honor, we have to note as well that yung pong Miscellaneous Personnel Benefits Fund ay bukod po doon, ay may iba pa pong mga pinaggamitan. **[05:11:53.680] Rep. Antonio L. Tinio** (h2r5-turn-004474a) We understand. **[05:11:54.500] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004475) Nandito rin po yung performance-based bonus. **[05:11:57.040] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004476) Opo. Yun pong ating funding for vacancies in the executive branch at kung meron man pong **[05:12:02.640] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004477) mga changes in organizational staffing po ng ating mga government agencies. **[05:12:08.940] Rep. Antonio L. Tinio** (h2r5-turn-004478) Okay. **[05:12:09.420] Rep. Antonio L. Tinio** (h2r5-turn-004479) Noted. Of course po. Ang sinasabi lang natin, it can accommodate up to 2,000. **[05:12:15.100] Rep. Antonio L. Tinio** (h2r5-turn-004480) In other words, a doubling of the **[05:12:17.320] Rep. Antonio L. Tinio** (h2r5-turn-004481) current pera. **[05:12:20.340] Rep. Antonio L. Tinio** (h2r5-turn-004482) I-note ko lang po, yung subsistence allowance ng militar, **[05:12:23.760] Rep. Antonio L. Tinio** (h2r5-turn-004483) from 150 a day, ginawa niyong 350 a day. That's more than double. **[05:12:30.920] Rep. Antonio L. Tinio** (h2r5-turn-004484) Tama po ba? At magkano ang nakalaang pondo doon? **[05:12:51.400] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004485) Actually, Your Honor, Mr. Chair, yun pong pondo for the adjusted subsistence allowance ng ating military and uniformed personnel, **[05:12:59.085] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004486) dahil ito po ay nakafix na, alinsunod po doon sa EO, nasa respective agency budgets na po ito nakalodge. **[05:13:06.460] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004487) Ang total subsistence allowance po for our MUPs for 2027 is **[05:13:12.000] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004488) about 74 **[05:13:15.040] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004489) billion na nakadistribute na po, Your Honor, Mr. Chair, sa kanikanyang **[05:13:19.560] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004490) agency-specific budgets. **[05:13:23.020] Rep. Antonio L. Tinio** (h2r5-turn-004491) So, ang pinupunto ko lang ay ganong kalaki po ang nilaan for the increase in subsistence allowance, bali **[05:13:29.040] Rep. Antonio L. Tinio** (h2r5-turn-004492) second **[05:13:29.380] Rep. Antonio L. Tinio** (h2r5-turn-004493) year na po ito. Tama ba? **[05:13:31.760] Rep. Antonio L. Tinio** (h2r5-turn-004494) So, kailangan na pong ihabol natin yung sa Sibilyan, which is pera. **[05:13:36.300] Rep. Antonio L. Tinio** (h2r5-turn-004495) So, wala na pong galawan. Yun lang sinasabi, babantayan na po natin ito. **[05:13:40.140] Rep. Antonio L. Tinio** (h2r5-turn-004496) Okay. **[05:13:42.940] Rep. Antonio L. Tinio** (h2r5-turn-004497) Next question ko po, **[05:13:44.880] Rep. Antonio L. Tinio** (h2r5-turn-004498) marami akong gustong itanong, pero nabanggit **[05:13:48.120] Rep. Antonio L. Tinio** (h2r5-turn-004499) yung confidential and intelligence funds. **[05:13:50.520] Rep. Antonio L. Tinio** (h2r5-turn-004500) Okay. **[05:13:54.240] Rep. Antonio L. Tinio** (h2r5-turn-004501) Una po, malinaw sa confidential and intelligence. Intelligence funds, 10 **[05:13:58.780] Rep. Antonio L. Tinio** (h2r5-turn-004502) .8 billion total ang nasa budget. Tama po. **[05:14:02.720] Rep. Antonio L. Tinio** (h2r5-turn-004503) At 4.56 billion nito, **[05:14:05.180] Rep. Antonio L. Tinio** (h2r5-turn-004504) o halos **[05:14:08.300] Rep. Antonio L. Tinio** (h2r5-turn-004505) kalahati, ay nasa Office of the President. **[05:14:12.320] Rep. Antonio L. Tinio** (h2r5-turn-004506) At **[05:14:12.640] Rep. Antonio L. Tinio** (h2r5-turn-004507) yung 4.56 billion na confidential and intelligence funds ng Office of the President constitutes **[05:14:20.540] Rep. Antonio L. Tinio** (h2r5-turn-004508) 44.9% of the Office of the President's budget. Tama po ba? No? **[05:14:28.060] Rep. Antonio L. Tinio** (h2r5-turn-004509) Sumusunod ba yan sa, sabi nga, sound **[05:14:31.020] Rep. Antonio L. Tinio** (h2r5-turn-004510) principles of budgeting na **[05:14:35.700] Rep. Antonio L. Tinio** (h2r5-turn-004511) ang **[05:14:36.920] Rep. Antonio L. Tinio** (h2r5-turn-004512) halos kalahati ng kanyang budget, ng agency budget, ay confidential and intelligence funds? **[05:14:47.360] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004513) Your Honor, Mr. Chair, ito pong confidential and intelligence funds ng Office of the President has been at that level **[05:14:54.100] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004514) since—almost at that level since 2020. At ito po ay bahagi ng functions ng ating Pangulo bilang Commander-in-Chief ng ating Armed Forces, Your Honor, Mr. Chair. **[05:15:09.320] Rep. Antonio L. Tinio** (h2r5-turn-004515) Sinagot, no? **[05:15:12.160] Rep. Antonio L. Tinio** (h2r5-turn-004516) ang **[05:15:12.545] Rep. Antonio L. Tinio** (h2r5-turn-004517) tanong ko po ay, alinsunod ba sa mga prinsipyo ng, **[05:15:16.398] Rep. Antonio L. Tinio** (h2r5-turn-004518) you know, good governance ng isang ahensya, **[05:15:19.095] Rep. Antonio L. Tinio** (h2r5-turn-004519) halos **[05:15:19.481] Rep. Antonio L. Tinio** (h2r5-turn-004520) kalahati ng kanyang budget, **[05:15:26.547] Rep. Antonio L. Tinio** (h2r5-turn-004521) confidential, secret, hindi transparent? **[05:15:31.330] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004522) Mr. Chair, **[05:15:31.556] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004523-split-1) Your Honor, **[05:15:33.210] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004523-split-2) Dahil ang opisina po ng Pangulo ay may mandato, kaya po yung **[05:15:37.850] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004524) provision niya for confidential and intelligence funds ay **[05:15:41.410] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004525) tingin po natin na ay naaayon, kaya po kasama po yan sa ating National Expenditure Program. **[05:15:47.930] Rep. Antonio L. Tinio** (h2r5-turn-004526) Sinabi niyo 2020 lang nangyari yan. So historically hindi po ganyan. Abnormal po ito. **[05:15:53.450] Rep. Antonio L. Tinio** (h2r5-turn-004527) So yun ang pinapoint out natin. **[05:15:55.070] Rep. Antonio L. Tinio** (h2r5-turn-004528) Now, **[05:15:55.870] Rep. Antonio L. Tinio** (h2r5-turn-004529) tanong ko po, yung confidential and intelligence funds, **[05:16:00.770] Rep. Antonio L. Tinio** (h2r5-turn-004530) item po ba yan? **[05:16:03.490] Rep. Antonio L. Tinio** (h2r5-turn-004531) Is that a line item in the budget? **[05:16:09.230] Rep. Antonio L. Tinio** (h2r5-turn-004532) Definition of item is **[05:16:10.910] Rep. Antonio L. Tinio** (h2r5-turn-004533) activity **[05:16:14.400] Rep. Antonio L. Tinio** (h2r5-turn-004534) or project, di ba? **[05:16:17.600] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004535) Yun po, Your Honor, Mr. Chair, yun pong **[05:16:20.380] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004536) confidential expenses at intelligence expenses ay mga object of expenditure. **[05:16:26.660] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004537) So may katapat po itong mga... **[05:16:29.940] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004538) ...PAP. **[05:16:30.520] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004539) Kaya po dapat ito ay directly connected **[05:16:33.720] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004540) sa mandato po ng opisina dahil doon po nakapailalim sa PAP na yun, **[05:16:38.340] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004541) yun pong object of expenditure na confidential expenses at intelligence expenses. **[05:16:44.020] Rep. Antonio L. Tinio** (h2r5-turn-004542) So in short, hindi siya item? **[05:16:50.040] Rep. Antonio L. Tinio** (h2r5-turn-004543) Tama, object of expenditure, di ba? **[05:16:52.600] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004544) Object of expenditure po siya, Your Honor, Mr. Chair, pero bahagi po siya ng isang PAP at yun po yung item of expenditure. **[05:17:01.040] Rep. Antonio L. Tinio** (h2r5-turn-004545) Okay, hindi. Kaya nga... Actually, in the budget, the actual term that appears is confidential and intelligence expenses, di **[05:17:10.980] Rep. Antonio L. Tinio** (h2r5-turn-004546) ba? **[05:17:11.860] Rep. Antonio L. Tinio** (h2r5-turn-004547) Pero walang hiwalay na item na confidential and intelligence funds. **[05:17:17.160] Rep. Antonio L. Tinio** (h2r5-turn-004548) There's a difference. And why do I raise this? Gusto ko po i-raise ito para sa committee rin at para sa **[05:17:24.000] Rep. Antonio L. Tinio** (h2r5-turn-004549) DBM, **[05:17:25.740] Rep. Antonio L. Tinio** (h2r5-turn-004550) no? **[05:17:26.660] Rep. Antonio L. Tinio** (h2r5-turn-004551) Ang termino talaga is confidential and intelligence expenses. However, pinag-ahalo... **[05:17:33.260] Rep. Antonio L. Tinio** (h2r5-turn-004552) And kahit sa inyong joint circular, nakalagay d'yon, confidential and intelligence funds. **[05:17:38.680] Rep. Antonio L. Tinio** (h2r5-turn-004553) Making it appear as if **[05:17:40.360] Rep. Antonio L. Tinio** (h2r5-turn-004554) hiwalay na pondo, **[05:17:42.100] Rep. Antonio L. Tinio** (h2r5-turn-004555) parang stand-alone item ang confidential and intelligence funds. **[05:17:47.780] Rep. Antonio L. Tinio** (h2r5-turn-004556) Now, why am I insisting on this distinction? **[05:17:52.040] Rep. Antonio L. Tinio** (h2r5-turn-004557) Kasi may implication po, pag tinrato n'yong parang item, **[05:17:54.980] Rep. Antonio L. Tinio** (h2r5-turn-004558) ang item po **[05:17:56.500] Rep. Antonio L. Tinio** (h2r5-turn-004559) pwedeng i-augment from savings. And **[05:18:01.000] Rep. Antonio L. Tinio** (h2r5-turn-004560) in fact, **[05:18:01.580] Rep. Antonio L. Tinio** (h2r5-turn-004561) your guidelines... Allow for that. Di ba? Yung intelligence fund pwedeng i-augment from savings. Tama, mali. **[05:18:09.280] Rep. Albert S. Garcia** (h2r5-turn-004562) Okay, that will be the last question. **[05:18:11.940] Rep. Albert S. Garcia** (h2r5-turn-004563) Continue. **[05:18:13.260] Rep. Albert S. Garcia** (h2r5-turn-004564) Thank you very much. Kim, please reply. **[05:18:18.320] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004565) Your Honor, Mr. Chair, since yun nga pong intelligence or confidential expenses ay object of expenditure, **[05:18:25.680] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004566) yun pong eligible for augmentation, use of savings, is yung PAP. **[05:18:31.320] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004567) Yung PAP po yung eligible. Yung PAP po yung eligible for augmentation, but subject still to compliance po with the requisites under the general provision and the approvals **[05:18:40.817] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004568) provided for under the GAA. **[05:18:42.900] Rep. Antonio L. Tinio** (h2r5-turn-004569) Okay, **[05:18:43.420] Rep. Antonio L. Tinio** (h2r5-turn-004570) maraming salamat. Pwedeng i-augment, pero yung authorization for confidential expenses, **[05:18:50.720] Rep. Antonio L. Tinio** (h2r5-turn-004571) hindi **[05:18:51.320] Rep. Antonio L. Tinio** (h2r5-turn-004572) pwedeng i-augment. **[05:18:53.180] Rep. Antonio L. Tinio** (h2r5-turn-004573) Di ba? At hindi pwedeng gawin ng **[05:18:55.080] Rep. Antonio L. Tinio** (h2r5-turn-004574) lagpasan **[05:18:56.520] Rep. Antonio L. Tinio** (h2r5-turn-004575) ng executive. **[05:18:58.960] Rep. Antonio L. Tinio** (h2r5-turn-004576) Tama ba? **[05:19:00.000] Rep. Albert S. Garcia** (h2r5-turn-004577) Thank you, Sec. Tino. **[05:19:01.780] Rep. Albert S. Garcia** (h2r5-turn-004578) [unclear], time is up po. **[05:19:04.720] Rep. Antonio L. Tinio** (h2r5-turn-004578-split-2) Ako lang po ang sinasabi ko. May mali po **[05:19:06.840] Rep. Antonio L. Tinio** (h2r5-turn-004579) kahit sa patakaran ng **[05:19:10.780] Rep. Antonio L. Tinio** (h2r5-turn-004580) DBM at sa joint circular ng DBM na tinatrato bilang parang hiwalay na pondo o item **[05:19:18.080] Rep. Antonio L. Tinio** (h2r5-turn-004581) ang confidential and intelligence funds and **[05:19:22.040] Rep. Antonio L. Tinio** (h2r5-turn-004582) the **[05:19:23.200] Rep. Antonio L. Tinio** (h2r5-turn-004583) rules themselves allow for augmentation from savings na parang item. **[05:19:28.880] Rep. Antonio L. Tinio** (h2r5-turn-004584) So **[05:19:29.580] Rep. Antonio L. Tinio** (h2r5-turn-004585) may mga, I mean, limited ang oras ko. Pero may marami pong mga implikasyon nito na kailangang wastoin po ito. They are expenses. They are not items. They cannot be augmented from savings, among others. **[05:19:42.300] Rep. Antonio L. Tinio** (h2r5-turn-004586) Hindi po ba? Can I get a response from? **[05:19:46.460] Rep. Antonio L. Tinio** (h2r5-turn-004587) Mali ito at dapat wastoin na ito. **[05:19:49.620] Rep. Antonio L. Tinio** (h2r5-turn-004588) Dahil iyan ang inaabuso. **[05:19:51.340] Rep. Albert S. Garcia** (h2r5-turn-004588-split-2) Yes, continue. Maybe a quick response from Sec. Kim. Tapos kung gusto ninyo, an expanded response, maybe in writing. Submit to the committee and we will give a copy to— **[05:20:02.460] Rep. Albert S. Garcia** (h2r5-turn-004589) Continue. **[05:20:04.500] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004590) Yun pong, ang ino-augment naman po talaga as in any case, hindi lang po yung **[05:20:09.260] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004591) confidential and intelligence na line item. Hindi po yung line item. **[05:20:13.200] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004592) Yun pong PAP, **[05:20:15.180] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004593) yun pong ino-augment natin. If DIMP deficient at kailangan po talagang i-augment. Yun pong confidential expenses and **[05:20:22.560] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004594) intelligence expenses are object of expenditure, Your Honor. **[05:20:26.360] Rep. Albert S. Garcia** (h2r5-turn-004595) Okay. **[05:20:26.840] Rep. Albert S. Garcia** (h2r5-turn-004596) Thank you very much. Tapos paki-expound na lang in writing para lahat ng details, masagot sa tanong ni Congressman Tinio. **[05:20:36.360] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004596-split-2) We will submit, Your Honor. **[05:20:37.660] Rep. Albert S. Garcia** (h2r5-turn-004596-split-3) Thank you very much. So next is— **[05:20:43.640] Rep. Albert S. Garcia** (h2r5-turn-004597) Congressman Edgar Erice still here? **[05:20:48.800] Rep. Albert S. Garcia** (h2r5-turn-004598) Parang wala na? **[05:20:50.200] Rep. Albert S. Garcia** (h2r5-turn-004599) Okay. So we will proceed to the next **[05:20:52.980] Rep. Albert S. Garcia** (h2r5-turn-004600) representative. **[05:20:56.700] Rep. Albert S. Garcia** (h2r5-turn-004601) We call on Congressman Elijah San Fernando. **[05:21:00.180] Rep. Albert S. Garcia** (h2r5-turn-004602) Please proceed. **[05:21:01.160] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-004602-split-2) Thank you, Mr. Chair. Salamat po. **[05:21:04.100] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-004603) Secretary Balisacan, **[05:21:05.340] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-004604) kanina po natapos tayo doon sa usapin ng mga trabaho. **[05:21:10.460] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-004605) Meron po kayong prinesent kanina at ito binabanggit nyo pa po, **[05:21:13.760] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-004606) kanina pa, na **[05:21:15.300] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-004607) merong mga persistent constraints kung bakit hindi tayo makapaglikha ng mga industriya, ng **[05:21:20.840] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-004608) mga quality jobs, better paying jobs. **[05:21:23.540] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-004609) And some of these factors, alimbawa itong sa economic and market factors, alimbawa high energy cost, **[05:21:30.160] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-004610) Alam niyo, may pwede naman po tayong gawin agad dito. **[05:21:33.680] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-004611) Halimbawa, we can remove, **[05:21:35.200] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-004612) or if not, reduce value-added tax on electricity. **[05:21:39.440] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-004613) So would you agree with me dito, Secretary Balisakan? **[05:21:46.370] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-004614) Yes, of course, there are things that you can do in the short term, in the near term, **[05:21:51.750] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-004615) Mr. **[05:21:54.150] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-004616) Chair. **[05:21:56.210] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-004617) And of course, taxes could be one. But again, tax **[05:22:02.510] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-004618) issues are **[05:22:04.770] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-004619) More complex than that, because **[05:22:11.010] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-004620) there are broader concerns that we have to also take into account. **[05:22:16.730] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-004621) And **[05:22:17.730] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-004622) so, for example, given the fiscal **[05:22:33.540] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-004623) space **[05:22:33.857] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-004624) use **[05:22:34.750] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-004625) and the **[05:22:35.032] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-004626) so much need for other development investments, you really have to identify a **[05:22:38.810] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-004627) replacement for those revenues that will be sacrificed as a result. So, it's easy to remove, but **[05:22:47.590] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-004628) we have to be mindful of the consequences **[05:22:52.150] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-004629) for other sectors and other agencies. **[05:22:56.510] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-004630) Thank you, Mr. Chair. Salamat po. **[05:22:58.930] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-004631) So, punta po sa Department of Finance. Is it the position of Department of Finance to oppose any discussion **[05:23:07.050] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-004632) about the removal or reduction of value-added tax on electricity? **[05:23:15.770] DOF Secretary Frederick D. Go** (h2r5-turn-004633) In general, the position of the Department of Finance is that everything is fungible. **[05:23:22.050] DOF Secretary Frederick D. Go** (h2r5-turn-004634) If you want to remove VAT **[05:23:25.110] DOF Secretary Frederick D. Go** (h2r5-turn-004635) from **[05:23:25.990] DOF Secretary Frederick D. Go** (h2r5-turn-004636) electricity, but **[05:23:27.550] DOF Secretary Frederick D. Go** (h2r5-turn-004637) you can show another **[05:23:29.730] DOF Secretary Frederick D. Go** (h2r5-turn-004638) revenue source of taxes, **[05:23:32.790] DOF Secretary Frederick D. Go** (h2r5-turn-004639) we're neutral. But the **[05:23:35.190] DOF Secretary Frederick D. Go** (h2r5-turn-004640) Department of Finance would naturally be opposed to the removal of any tax **[05:23:41.803] DOF Secretary Frederick D. Go** (h2r5-turn-004641) without a replacement **[05:23:42.273] DOF Secretary Frederick D. Go** (h2r5-turn-004642) tax. **[05:23:42.750] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-004643) So, **[05:23:43.110] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-004644) categorical position, Secretary Go? **[05:23:47.370] DOF Secretary Frederick D. Go** (h2r5-turn-004645) Yeah, our categorical position is we are not opposed to the removal of any tax as long as there is a replacement revenue source. **[05:23:55.270] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-004646) So, we can do something about this, the reduction po ng energy cost. Isa rin po sa example dito sa mga factors kung bakit hindi pumapasok yung mga, hindi tayo nakakapagbuo ng industriya, **[05:24:06.530] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-004647) itong fragmented coordination. **[05:24:09.450] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-004648) Ganito na ang problema ng gobyerno eh. **[05:24:11.650] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-004649) Sabog-sabog po kasi ang implementation ng gobyerno. Would you agree with me, Secretary? **[05:24:18.530] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-004650) Hindi naman lahat ng mga **[05:24:20.670] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-004651) projects **[05:24:24.090] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-004652) and programs are ganon. **[05:24:27.430] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-004653) But **[05:24:28.090] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-004654) I think for some projects like those by **[05:24:32.950] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-004655) DPWH, for example, of course, you have seen the consequences of lack **[05:24:37.610] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-004656) of coordination, for example, between the national government and local government. Kanina **[05:24:42.630] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-004657) pinag-uusapan natin yung right of way, that's one of those. So, **[05:24:45.590] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-004658) yun ang mga dapat maayos for efficient implementation. **[05:24:50.190] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-004659) Yes, Secretary. **[05:24:50.790] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-004660) At least **[05:24:52.030] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-004661) may admission on that part of the government po na talagang merong mga plano tayo pero walang group chat yung mga ahensya ng gobyerno. Kaya **[05:24:59.390] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-004662) pagdating sa implementation, kandalabo-labo na. **[05:25:03.130] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-004663) Kaya ako po natanong itong mga constraints na to. Gusto ko lang po kayo i-quote kanina about industrial policy. **[05:25:09.990] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-004664) We don't have to push. Industrial policy the way our neighbors did it. Ito po yung sabi niyo kanina. **[05:25:16.050] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-004665) Pero ginagamit po natin madalas na benchmark yung mga kapitbahay natin na nag-implement ng industrial policy. **[05:25:22.790] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-004666) Such as Vietnam, South Korea, Taiwan, even China. **[05:25:27.790] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-004667) Alam niyo po, itong mga binabanggit dito, yung pinapresent niyo po ng mga persistent constraints, present po lahat to doon **[05:25:34.790] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-004668) sa mga bansa gaya ng South Korea, Taiwan, China, Vietnam. Present po lahat yan. In fact, South Korea. South Korea was very corrupt. **[05:25:43.030] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-004669) One party state. Yung ibang bansa pa nga dito, one party state. Very corrupt. **[05:25:48.030] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-004670) Pero hindi naging hadlang itong mga same problems that **[05:25:52.530] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-004671) we are facing and experiencing for them to implement industrial policy. **[05:25:58.860] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-004672) Yan pong mga problemang yan, nalagpasan ng mga kapitbahay natin. Alam niyo po, the only difference between us and them, **[05:26:05.570] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-004673) sila po may ambisyon eh. **[05:26:08.330] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-004674) Sila po may ambisyon. **[05:26:09.850] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-004675) They want to build. And strengthen their industrial base. Tapos ang maririnig po natin sa DepDev, eh **[05:26:17.990] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-004676) we don't have to push industrial policy like our neighbors. So yun po ang kaibahan. If I may encapsulate this, Mr. Chair, sa kung pa paano natin **[05:26:29.530] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-004677) tinitignan tong industrial policy, sa **[05:26:34.110] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-004678) ating economic managers po, eh tayo **[05:26:37.310] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-004679) walang ambisyon, unambitious po tayo eh. **[05:26:40.090] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-004680) Pagdating sa industrial policy, duwag po tayo, Sekretary, pagdating po sa industrial policy. **[05:26:46.650] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-004681) Kasi these countries, our neighbors, South Korea, Vietnam, lagi po natin, lagi natin ginagamit na benchmark eh. **[05:26:54.750] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-004682) And coming from you, eh parang opposed po kayo sa industrial policy. Now, how are we going to make **[05:27:00.930] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-004683) use of the remaining two years of the PBBM administration? No other than the President has already said that. Sabi niya, kailangan gamitin natin ang natitirang panahon. **[05:27:11.730] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-004684) Para maglumikha ng mga trabaho, dekalidad na trabaho, better paying jobs. **[05:27:16.050] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-004685) So how are we going to do that? Or how are we going to make use of the two years remaining in **[05:27:21.030] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-004686) PBBM administration? **[05:27:23.030] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-004687) Para maging ganap ito pong mga pinag-uusapan natin about quality jobs. Mr. Chair. **[05:27:27.930] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-004688) Mr. Chair, **[05:27:29.890] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-004689) I, with **[05:27:31.130] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-004690) due respect to our **[05:27:32.430] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-004691) honorable congressman, **[05:27:35.150] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-004692) I disagree that we don't have an ambition for this country. **[05:27:40.470] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-004693) DEPDev, the former NEDA, crafted Ambisyon Natin 2040, **[05:27:44.710] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-004694) which would **[05:27:47.070] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-004695) have allowed us to **[05:27:48.810] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-004696) reach a high- **[05:27:53.730] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-004697) income country by **[05:27:55.430] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-004698) 2040 if things were not interrupted as they **[05:28:01.270] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-004699) did. And we were able to do quite **[05:28:03.270] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-004700) well. And we did quite well in the last 15 years. As **[05:28:06.750] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-004701) I presented earlier this morning. **[05:28:10.090] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-004702) Moving, doing a lot of the things that we should have been doing over the last 50 years. **[05:28:17.210] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-004703) So **[05:28:17.770] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-004704) my argument, Mr. Chair, is that **[05:28:20.530] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-004705) not **[05:28:23.230] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-004706) even industrial policy would work if **[05:28:27.190] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-004707) you can't address the **[05:28:29.210] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-004708) kind of **[05:28:29.790] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-004709) issues, structural issues that we have. Fix the energy problem, **[05:28:34.170] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-004710) high energy problem. No amount of industrial policy would give you a high level of development without fixing **[05:28:42.830] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-004711) that. **[05:28:44.290] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-004712) Fix your roads and connectivity. Your internet that does not connect lagging areas and leading areas. Those are the kind of things that I was referring to, **[05:28:57.470] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-004713) Mr. **[05:28:59.350] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-004714) Chair. And I completely agree with industrial policy. I do think it works, But we need to do the basic **[05:29:06.410] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-004715) things To do the basic things that **[05:29:08.750] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-004716) other countries have. done. **[05:29:10.850] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-004717) Thank **[05:29:11.290] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-004718) you, Mr. Chair. **[05:29:12.960] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-004719) This is a question of either-or kasi, Secretary. **[05:29:16.030] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-004720) Pero I think we can do that. We can do industrial policy, but at the same time address din itong mga problema natin. **[05:29:22.380] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-004721) Ang hirap lang na marinig, coming from the Secretary of DEPDev, na **[05:29:26.930] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-004722) we don't have to do industrial policy like what our neighbors did. **[05:29:30.580] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-004723) So very defeatist po iyan, Secretary. And sa **[05:29:33.980] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-004724) point, Mr. Chair, ni Secretary is that **[05:29:35.880] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-004725) meron namang **[05:29:36.750] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-004727) nagawa in the recent years. **[05:29:38.810] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-004728) Secretary, kitang-kita naman po sa datos: we have de-industrialized. **[05:29:44.060] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-004729) Nauubos yung manufacturing jobs natin, nauubos yung industry jobs natin. We don't have any industry for **[05:29:52.130] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-004730) that matter. Lahat nandun sa servisyo. Kaya nga ang trabaho na meron sa atin, **[05:29:55.830] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-004731) retail trade, **[05:29:57.360] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-004732) low-paying, elementary jobs. Kaya po, pinupush natin itong industrial policy na mapag-usapan at maipush natin sa remaining two years of the PBBM administration. Kasi po ang naririnig natin, Mr. Chair, sa mga economic managers natin, is the same old. **[05:30:13.980] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-004733) 30 years. Tatlong dekada na natin paulit-ulit ginagawa yung palpak na **[05:30:19.830] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-004734) development model natin, Mr. Chair. Just, I'm winding up, Mr. Chair. **[05:30:26.580] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-004735) Even the World Bank has **[05:30:28.600] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-004736) already admitted that the neoliberal economic framework has failed. **[05:30:33.850] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-004737) And yet we are doing the same. **[05:30:36.070] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-004738) So yun po ang punto ko dito, Mr. Chair, Secretary. Maybe it is high time to **[05:30:41.450] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-004739) push for meaningful reforms. Maybe it is high time for us to discuss and really take industrial policy very seriously. **[05:30:50.840] Rep. Elijah Rumbaoa San Fernando** (h2r5-turn-004740) So, yun po, Mr. Chair, maraming salamat. **[05:30:53.130] Rep. Albert S. Garcia** (h2r5-turn-004741) Maraming salamat, Kong Elijah. **[05:30:55.430] Rep. Albert S. Garcia** (h2r5-turn-004742) SecRC, please briefly reply. **[05:30:58.720] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-004743) I **[05:30:59.440] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-004744) think I've done my share, **[05:31:01.520] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-004745) Mr. **[05:31:02.420] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-004746) Chair. **[05:31:02.860] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-004747) I always, our honorable congressman, would **[05:31:07.760] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-004748) bother to look at the Philippine Development Plan. **[05:31:11.120] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-004749) And essentially, you **[05:31:12.660] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-004750) can see industrial policy there. **[05:31:14.780] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-004751) And **[05:31:15.500] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-004752) also **[05:31:16.420] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-004753) look at even the updated Philippine Development Plan. **[05:31:22.900] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-004754) It's very clear there what our... **[05:31:25.620] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-004755) Our program **[05:31:28.840] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-004756) for the country. And I, as **[05:31:32.260] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-004757) we have seen, we look at the data, Mr. **[05:31:36.500] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-004758) Chair, we have done quite well in the last 15 years. No less than the World Bank. All the mother agents, important development agencies, have **[05:31:47.980] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-004759) commended the country for a **[05:31:51.260] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-004760) major transition. That **[05:31:53.520] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-004761) was not possible in the **[05:31:55.620] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-004762) two, three decades before that. So, **[05:31:58.540] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-004763) let's not undermine our ability to also **[05:32:01.780] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-004764) grow. **[05:32:02.500] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-004765) I think **[05:32:03.360] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-004766) what we needed to do to sustain the momentum, I stressed that that morning. To sustain the momentum, but to argue that we are not doing it and we have not been **[05:32:13.940] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-004767) moving the country, I think that's so unfair. **[05:32:17.400] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-004768) The evidence is very clear. **[05:32:20.120] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-004769) I end my case, Mr. Chair. **[05:32:22.320] Rep. Albert S. Garcia** (h2r5-turn-004770) Thank you very much, SecRC. **[05:32:25.780] Rep. Albert S. Garcia** (h2r5-turn-004771) Madam Chair. **[05:32:27.040] Rep. Mikaela Angela B. Suansing** (h2r5-turn-004772) Thank you, Senior Vice Chair Albert Garcia. Next to interpellate for the second round is our Senior Vice Chair Albert Garcia. You are recognized, **[05:32:35.940] Rep. Mikaela Angela B. Suansing** (h2r5-turn-004773) SPC. **[05:32:36.420] Rep. Albert S. Garcia** (h2r5-turn-004774) Thank you very much, Madam Chair. Just a few quick questions. Hindi umabot kanina sa time limit. **[05:32:42.460] Rep. Albert S. Garcia** (h2r5-turn-004775) So, I'll try to breeze through it **[05:32:44.500] Rep. Albert S. Garcia** (h2r5-turn-004776) dito sa second round. **[05:32:47.000] Rep. Albert S. Garcia** (h2r5-turn-004777) First of all, if you watch the Blue Ribbon Committee hearing **[05:32:51.840] Rep. Albert S. Garcia** (h2r5-turn-004778) on the ghost projects ng flood control, sinabi, when the DBM was asked, **[05:32:58.680] Rep. Albert S. Garcia** (h2r5-turn-004779) ano yung mga pwedeng remedies para hindi na maulit ito? And one of the important things na binanggit is that yung bottoms-up budgeting. **[05:33:08.540] Rep. Albert S. Garcia** (h2r5-turn-004780) Kasi kung demand-driven and from the local level or the ground, yung identification, **[05:33:15.280] Rep. Albert S. Garcia** (h2r5-turn-004781) malabo maging ghost project po ito **[05:33:17.620] Rep. Albert S. Garcia** (h2r5-turn-004782) dahil aabangan po ito nung mga nag-request dahil solution sa problema nila. **[05:33:22.740] Rep. Albert S. Garcia** (h2r5-turn-004783) So, and this is what a lot of our representatives, did for the 2027 budget. **[05:33:31.180] Rep. Albert S. Garcia** (h2r5-turn-004784) Sumunod sila sa PIP, PIPOL, AIP, PDC, RDC. **[05:33:38.640] Rep. Albert S. Garcia** (h2r5-turn-004785) Pero paglabas nung NEP, **[05:33:40.320] Rep. Albert S. Garcia** (h2r5-turn-004786) parang hindi na-consider or very, very minimal yung na-consider. Dapat din natin isipin na itong mga bagay nito ay trabaho ng congressman, ng **[05:33:53.000] Rep. Albert S. Garcia** (h2r5-turn-004787) representative based on the constitution. As the direct **[05:33:56.760] Rep. Albert S. Garcia** (h2r5-turn-004788) representative of the people. **[05:34:00.100] Rep. Albert S. Garcia** (h2r5-turn-004789) That's why all appropriations measures like the budget emanates from the house as a direct representative of the people. So, dahil sa nangyari na ito, hindi na-represent yung mga kailangan nung distrito or nung mga barangay at mga munisipyo. So, may we hear a response from the chair of the DBC? Kay Sec. **[05:34:27.160] Rep. Albert S. Garcia** (h2r5-turn-004790) Kim? **[05:34:28.420] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004791) Mr. Chair, it's an observation that we also share. At kaya nga po nung aming dinideliberate yung mga proyekto sa 2027 NEP, **[05:34:40.180] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004792) talaga pong nag-zero-in kami doon sa mismong proseso. **[05:34:43.980] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004793) Kasi sabi nga po namin, mababaliwala yung mga RDC review **[05:34:48.500] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004794) process na talaga naman pong binubuhusan ng oras, panahon at talento, **[05:34:52.860] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004795) kung hindi naman po mako-consider na Sa ito. **[05:34:55.940] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004796) deliberation. Ang limitasyon nga lang po, Madam Chair, your honor, **[05:35:02.080] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004797) is that doon sa existing process, **[05:35:04.740] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004798) ang huli po kasing submission ay yung agency central office pa rin. **[05:35:09.880] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004799) Kaya nga po kami ay nag-one step back at ngayon, gaya po nang nabanggit namin kanina, **[05:35:15.260] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004800) palakasin po talaga namin yung interconnectivity nung people system, nung RDC endorsement, **[05:35:21.420] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004801) even nung aming budget proposal submission system. Para **[05:35:26.340] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004802) po, isa lang po dapat yung flow. **[05:35:28.640] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004803) Hindi po maraming pinanggagalingan ng mga proposal para **[05:35:32.580] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004804) mas madali po nating matutukan ano ba yung talagang nanggaling mula sa local development council, papanik ng RDC, papanik ng agency central office bago pumunta po sa amin sa **[05:35:44.180] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004805) DBM. So hindi po kami dapat matapos lang doon sa may Form C at saka Form D na **[05:35:50.000] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004806) maaaring makita ng iba na pwedeng compliance. Kundi talagang tututukan po natin. And this is a commitment we're working with DepDEP **[05:35:57.860] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004807) kasi isa po itong mahalagang commitment din ng ating pamahalaan, **[05:36:01.700] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004808) yung improving plan, investment, programming, planning, budgeting linkage doon po sa ating medium term **[05:36:08.400] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004809) PFM reform road map. So ang target po talaga natin dito is we can do something including yun **[05:36:15.480] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004810) pong pagsabay **[05:36:17.460] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004811) doon sa local budgeting calendar and local planning calendar para wala pong mahuhulog along the way doon po sa prosesong iyon. Your Honor, Madam Chair. **[05:36:26.980] Rep. Albert S. Garcia** (h2r5-turn-004812) Thank you, Secretary Kim. And I hope with the efforts ng DBCC and **[05:36:32.100] Rep. Albert S. Garcia** (h2r5-turn-004813) the **[05:36:32.480] Rep. Albert S. Garcia** (h2r5-turn-004814) passage of the budget code, sana maayos na talaga ito, **[05:36:37.260] Rep. Albert S. Garcia** (h2r5-turn-004815) so that the representatives can really represent **[05:36:41.800] Rep. Albert S. Garcia** (h2r5-turn-004816) the people **[05:36:42.540] Rep. Albert S. Garcia** (h2r5-turn-004817) pagdating sa national budget **[05:36:44.460] Rep. Albert S. Garcia** (h2r5-turn-004818) in addressing their needs and their needs of the locality. **[05:36:48.640] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004819) And we acknowledge your honor's assistance as well in championing the Philippine budget code. In Congress, maraming salamat po. **[05:36:56.540] Rep. Albert S. Garcia** (h2r5-turn-004820) Thank you, Sec. Kim. Next question, **[05:36:58.980] Rep. Albert S. Garcia** (h2r5-turn-004821) sinabi **[05:37:01.080] Rep. Albert S. Garcia** (h2r5-turn-004822) ni Charlie Munger, if you know him, yung partner SecDec ni Warren Buffett. **[05:37:06.840] Rep. Albert S. Garcia** (h2r5-turn-004823) Very wise man. Show me the incentive, I'll show you the outcome. **[05:37:11.540] Rep. Albert S. Garcia** (h2r5-turn-004824) So this has a lot to do with meritocracy. And in the former life of SecDec, he was a very successful individual in the private sector. And I'm sure, hindi magiging successful kung walang meritocracy. So in government, do we have a very effective system of meritocracy? **[05:37:37.110] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004825) Mr. Chair, Your Honor, aside from the usual principles of meritocracy in appointment, **[05:37:42.730] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004826) kami po sa DBM, meron po tayong minomonitor ng mga indicators under the PREXI system. **[05:37:51.450] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004827) Bagamat ito nga po ay kabilang din sa DBM. Dapat na rin po nating **[05:37:55.750] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004828) tignan muli **[05:37:57.270] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004829) to check whether ito **[05:37:59.530] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004830) po ay nananatiling effective in pushing our agencies to perform better. In **[05:38:04.690] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004831) fact, sa atin pong pagkasagawa ng mid-year and year-end performance review ng bawat ahensya. So may mga metrics po tayong ginagamit. **[05:38:13.530] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004833) But there is actually a technical working group right now, Your Honor, Madam Chair, na **[05:38:19.750] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004834) binoo under EO61, precisely para tignan muli itong mga metrics. So may mga parameters or principles na ginagamit natin to assess agency performance. Dati po, ito po yung kilala, Your Honor, Madam Chair, **[05:38:34.170] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004835) na dating RBPMS. O ito po yung nakakabit po dun sa performance-based bonus. So nire-revisit po ngayon ng EO61 Technical Working Group kung yung metrics or parameters na **[05:38:46.690] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004836) ginagamit po doon ay akma pa o kailangan po nating mag-introduce ng pagbabago to be recommended to the President by the Technical Working Group. Your Honor. **[05:38:56.130] Rep. Albert S. Garcia** (h2r5-turn-004837) Thank you. If possible, Madam Chair, **[05:38:59.150] Rep. Albert S. Garcia** (h2r5-turn-004838) may we coordinate with the Technical Working Group because there's some initiative in the House to really unify and **[05:39:07.010] Rep. Albert S. Garcia** (h2r5-turn-004839) align and **[05:39:08.470] Rep. Albert S. Garcia** (h2r5-turn-004840) institute a clear system of meritocracy for the national and local governments and all the instrumentalities. So kung pwedeng mag **[05:39:18.510] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004841) Definitely, Your Honor, bahagi po ang DBM ng EO61 Technical Working Group. **[05:39:22.850] Rep. Albert S. Garcia** (h2r5-turn-004842) Thank you. And **[05:39:23.770] Rep. Albert S. Garcia** (h2r5-turn-004843) very, **[05:39:25.570] Rep. Albert S. Garcia** (h2r5-turn-004844) very quickly, **[05:39:26.250] Rep. Albert S. Garcia** (h2r5-turn-004845) as **[05:39:28.050] Rep. Albert S. Garcia** (h2r5-turn-004846) an observation, **[05:39:30.050] Rep. Albert S. Garcia** (h2r5-turn-004847) palaki ng palaki yung ating population, yung ating bansa, at yung ating gobyerno. **[05:39:34.950] Rep. Albert S. Garcia** (h2r5-turn-004848) And kung sumobra na yung laki, sometimes there are a lot of inefficiencies. And minsan, ang ginagawa ng ating national government is to centralize more. **[05:39:48.870] Rep. Albert S. Garcia** (h2r5-turn-004849) Kung minsan, top-heavy na po. So **[05:39:51.530] Rep. Albert S. Garcia** (h2r5-turn-004850) just like what we did with CreateMore, **[05:39:54.450] Rep. Albert S. Garcia** (h2r5-turn-004851) ni-rationalize natin yung fiscal and non-fiscal incentives. Ginawa nating one-size-fits-all para rationalize. But the world doesn't work that way. It's a very competitive world out there. Pero pinasa pa rin natin, again, some of the recommendations of the investment promotion agencies na sila yung frontliner pagdating sa pag-attract ng investment. So I'd like to ask, how did it work for us, ito pong CreateMore? **[05:40:28.020] DOF Secretary Frederick D. Go** (h2r5-turn-004852) Mr. Chair, I actually want to, **[05:40:30.960] DOF Secretary Frederick D. Go** (h2r5-turn-004853) if I may rephrase, **[05:40:35.460] DOF Secretary Frederick D. Go** (h2r5-turn-004854) I'm **[05:40:37.280] DOF Secretary Frederick D. Go** (h2r5-turn-004855) not sure it's not called rephrase. I need to, I think, correct the term. **[05:40:42.180] DOF Secretary Frederick D. Go** (h2r5-turn-004856) The problem was created by Create. **[05:40:44.700] DOF Secretary Frederick D. Go** (h2r5-turn-004857) So we created CreateMore. **[05:40:46.880] DOF Secretary Frederick D. Go** (h2r5-turn-004858) So CreateMore solved the problems of Create. **[05:40:50.400] DOF Secretary Frederick D. Go** (h2r5-turn-004859) Because Create centralized the approval among all the investment promotion agencies into the Fiscal Incentives Review Board. **[05:40:57.160] DOF Secretary Frederick D. Go** (h2r5-turn-004860) In CreateMore, we devolved it again. **[05:41:00.780] DOF Secretary Frederick D. Go** (h2r5-turn-004861) So CreateMore solved the problems of Create. **[05:41:03.980] Rep. Albert S. Garcia** (h2r5-turn-004862) Devolved up to a certain limit po. **[05:41:06.040] DOF Secretary Frederick D. Go** (h2r5-turn-004863) Yes, that's right. **[05:41:07.340] Rep. Albert S. Garcia** (h2r5-turn-004864) Pero still, **[05:41:08.080] Rep. Albert S. Garcia** (h2r5-turn-004865) when it's a huge investment, centralized pa rin. **[05:41:11.840] DOF Secretary Frederick D. Go** (h2r5-turn-004866) Yes. **[05:41:12.240] Rep. Albert S. Garcia** (h2r5-turn-004867) Plus yung incentives, **[05:41:13.840] Rep. Albert S. Garcia** (h2r5-turn-004868) one-size-fits-all pa rin. **[05:41:16.580] DOF Secretary Frederick D. Go** (h2r5-turn-004869) No, no. If I may correct that also as well, Mr. Chair. **[05:41:21.280] Rep. Albert S. Garcia** (h2r5-turn-004869-split-2) Yes, please. **[05:41:21.680] DOF Secretary Frederick D. Go** (h2r5-turn-004869-split-3) The incentives in Create, the investor has a choice. He can avail of the Special Corporate Income Tax, the **[05:41:29.380] DOF Secretary Frederick D. Go** (h2r5-turn-004870) so-called SCIT or 5% of gross income earned. **[05:41:32.600] DOF Secretary Frederick D. Go** (h2r5-turn-004871) Or he can avail of the Enhanced Deduction Regime, **[05:41:35.480] DOF Secretary Frederick D. Go** (h2r5-turn-004872) the EDD. **[05:41:37.680] DOF Secretary Frederick D. Go** (h2r5-turn-004873) So it's not a one-size-fits-all. The investor can actually choose. **[05:41:43.160] DOF Secretary Frederick D. Go** (h2r5-turn-004874) Secondly also, the **[05:41:44.680] DOF Secretary Frederick D. Go** (h2r5-turn-004875) investments are also controlled. Customizable, if your investment is over 50 billion pesos, **[05:41:51.040] DOF Secretary Frederick D. Go** (h2r5-turn-004876) you can customize it, **[05:41:53.920] DOF Secretary Frederick D. Go** (h2r5-turn-004877) which we did with Samsung. When **[05:41:58.060] DOF Secretary Frederick D. Go** (h2r5-turn-004878) Samsung applied **[05:42:00.060] DOF Secretary Frederick D. Go** (h2r5-turn-004879) for an investment of a 50 billion multi-layer ceramic capacitor factory in Laguna, **[05:42:05.660] DOF Secretary Frederick D. Go** (h2r5-turn-004880) we approved a customized **[05:42:08.400] DOF Secretary Frederick D. Go** (h2r5-turn-004881) package for him because his investment was over 50 billion pesos. **[05:42:12.280] DOF Secretary Frederick D. Go** (h2r5-turn-004882) So it's not one-size-fits-all. I really think that Create more solved the problems of Create. **[05:42:18.000] DOF Secretary Frederick D. Go** (h2r5-turn-004883) And also, when you talk about the threshold that **[05:42:20.800] DOF Secretary Frederick D. Go** (h2r5-turn-004884) goes up to FIRB, I think that's probably 5%. That means 95%, the Investment Promotion Agency can approve 90 **[05:42:29.360] DOF Secretary Frederick D. Go** (h2r5-turn-004885) to 95% of all **[05:42:30.720] DOF Secretary Frederick D. Go** (h2r5-turn-004886) applications that go through them. And only 5% to 10% go up. **[05:42:34.580] DOF Secretary Frederick D. Go** (h2r5-turn-004887) So whoever said that, **[05:42:36.500] DOF Secretary Frederick D. Go** (h2r5-turn-004888) I will challenge him in front of you anytime, any day. **[05:42:41.920] Rep. Albert S. Garcia** (h2r5-turn-004889) Thank you, SecDec. Thank you, SecDec, for that answer. Pero the fact remains, **[05:42:46.520] Rep. Albert S. Garcia** (h2r5-turn-004890) after we passed Create more, lumaki ba yung ating FDI? **[05:42:52.000] DOF Secretary Frederick D. Go** (h2r5-turn-004891) Yes, yes. As a matter of fact, in 2024 and in 2025, the registered investments in all IPAs went **[05:42:59.660] DOF Secretary Frederick D. Go** (h2r5-turn-004892) over 1.9 trillion pesos. That's first in our history. All the registered investments in all our IPAs has **[05:43:07.080] DOF Secretary Frederick D. Go** (h2r5-turn-004893) never been anywhere close to that. So in 2024 and 2025, 1.9 trillion pesos. **[05:43:13.680] DOF Secretary Frederick D. Go** (h2r5-turn-004894) Got registered. **[05:43:15.100] Rep. Albert S. Garcia** (h2r5-turn-004896) Relative to our neighbors in the ASEAN. **[05:43:18.740] DOF Secretary Frederick D. Go** (h2r5-turn-004897) We're behind. Yun nga. **[05:43:20.740] Rep. Albert S. Garcia** (h2r5-turn-004898) Yun nga. **[05:43:22.180] DOF Secretary Frederick D. Go** (h2r5-turn-004899) But **[05:43:22.740] DOF Secretary Frederick D. Go** (h2r5-turn-004900) Create more brought it up from wherever it used to be. Probably 1.1 trillion, 1 trillion. **[05:43:29.920] DOF Secretary Frederick D. Go** (h2r5-turn-004901) So it jumped to 1.9 trillion. But yes, I will accept that we're **[05:43:34.760] DOF Secretary Frederick D. Go** (h2r5-turn-004902) far behind our neighbors, which is why we **[05:43:37.560] DOF Secretary Frederick D. Go** (h2r5-turn-004903) really had to correct Create. **[05:43:40.200] DOF Secretary Frederick D. Go** (h2r5-turn-004904) Because Create really made **[05:43:42.500] DOF Secretary Frederick D. Go** (h2r5-turn-004905) it work. **[05:43:44.440] Rep. Albert S. Garcia** (h2r5-turn-004906) Thank you, SecDec. **[05:43:45.960] Rep. Albert S. Garcia** (h2r5-turn-004907) Tapos another example na nag-centralize na naman po tayo is **[05:43:50.660] Rep. Albert S. Garcia** (h2r5-turn-004908) with the PPP code. **[05:43:52.560] Rep. Albert S. Garcia** (h2r5-turn-004909) Before the code was passed, ang daming PPP on the local level. **[05:43:56.920] Rep. Albert S. Garcia** (h2r5-turn-004910) And in the local government code, I think we discussed this one time, SecDec. Local government code, may corporate powers yung mga local government units. Pero dahil sin-centralize na naman, very stringent. And I want to know, bottom line, after the passage of the code, did we end up with more PPPs or wala? **[05:44:21.160] Rep. Albert S. Garcia** (h2r5-turn-004911) Can we ask the dev-dev? **[05:44:25.530] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-004912) We have here, Mr. Chair, we have here the Chair of the Executive **[05:44:30.850] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-004913) Director of the Philippine PPP **[05:44:34.490] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-004914) Center. **[05:44:38.430] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-004915) Mr. **[05:44:39.430] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-004916) Chair. And she has the data. And **[05:44:41.510] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-004917) PPPs undertaken **[05:44:45.070] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-004918) by the LGUs. **[05:44:48.940] PPP Center Executive Director Rizza Blanco-Latorre** (h2r5-turn-004919) Yes, hello. Thank you, Mr. Chair. Just to respond to the question. **[05:44:54.520] PPP Center Executive Director Rizza Blanco-Latorre** (h2r5-turn-004920) Yes, we did receive a lot of PPP proposals for local government units. As a matter of fact, just for the first six months of this year, I think we received **[05:45:06.760] PPP Center Executive Director Rizza Blanco-Latorre** (h2r5-turn-004921) about 50 unsolicited proposals for LGUs. **[05:45:11.900] Rep. Albert S. Garcia** (h2r5-turn-004922) How many were consummated? **[05:45:16.360] PPP Center Executive Director Rizza Blanco-Latorre** (h2r5-turn-004923) These proposals are undergoing different stages of review and negotiation which are actually being done by the local government units. **[05:45:27.640] Rep. Albert S. Garcia** (h2r5-turn-004924) So before the code, when I was governor, ang dami namin PPP. **[05:45:32.300] Rep. Albert S. Garcia** (h2r5-turn-004925) Ngayon, parang **[05:45:34.660] Rep. Albert S. Garcia** (h2r5-turn-004926) nahihirapan sa process as was discussed before with the SecDec. So **[05:45:40.340] Rep. Albert S. Garcia** (h2r5-turn-004927) I **[05:45:40.660] Rep. Albert S. Garcia** (h2r5-turn-004928) guess we have to review our policies. Maybe we have to decentralize a little bit. In some countries that grew very, very fast, they decentralized economic powers as well. **[05:45:53.340] Rep. Albert S. Garcia** (h2r5-turn-004929) So I think we have to look at that if we want to grow our economy very, very fast while we are at our demographic sweet spot. Kasi pag wala na yun, baka **[05:46:05.880] Rep. Albert S. Garcia** (h2r5-turn-004930) wala na tayong growth. We have missed our boat. Thank you. Yes, ma'am. **[05:46:09.840] PPP Center Executive Director Rizza Blanco-Latorre** (h2r5-turn-004931) Yes, Mr. Chair. If I may address that: actually, the review, negotiation, and approval power for PPPs in LGUs are decentralized. **[05:46:20.080] PPP Center Executive Director Rizza Blanco-Latorre** (h2r5-turn-004932) These are actually being done at the LGU level. What has been centralized are the requirements that need to be passed to **[05:46:29.680] PPP Center Executive Director Rizza Blanco-Latorre** (h2r5-turn-004933) the PPP center for the completeness check. **[05:46:32.840] PPP Center Executive Director Rizza Blanco-Latorre** (h2r5-turn-004934) The intention of that is actually to make sure that we have that. That competitive level **[05:46:40.105] PPP Center Executive Director Rizza Blanco-Latorre** (h2r5-turn-004935) among the proponents and among LGUs across all sectors. But the review, **[05:46:46.960] PPP Center Executive Director Rizza Blanco-Latorre** (h2r5-turn-004936) negotiation, and approval remains to be at the LGU level. **[05:46:52.440] Rep. Albert S. Garcia** (h2r5-turn-004937) Thank you, Madam Chair. Pero up to now, walang bagong consummated PPP contract. **[05:47:01.100] PPP Center Executive Director Rizza Blanco-Latorre** (h2r5-turn-004940) Sorry, if I may just correct myself. In the first quarter of this year, we have awarded three local PPP contracts. **[05:47:10.540] Rep. Albert S. Garcia** (h2r5-turn-004941) Can we compare that with the pre-PPP code era? **[05:47:18.200] PPP Center Executive Director Rizza Blanco-Latorre** (h2r5-turn-004944) I just don't have the data at the moment, Mr. Chair, but we are committing to submit that. **[05:47:24.260] Rep. Albert S. Garcia** (h2r5-turn-004945) Thank you, Madam Chair. Maraming salamat po sa ating PPP center. **[05:47:28.960] Rep. Mikaela Angela B. Suansing** (h2r5-turn-004946) Thank you. SVC Albert Garcia will now move to the next interpellator for the second round. From the minority, Representative Sarah Elago. **[05:47:47.470] Rep. Sarah Jane I. Elago** (h2r5-turn-004947) Yes, Madam Chair. Manghihingi lang po ako unang-una nung report ng GAD compliance ng **[05:47:53.230] Rep. Sarah Jane I. Elago** (h2r5-turn-004948) mga agencies natin. Kung kasama po ang DBM sa nag **[05:47:57.870] Rep. Sarah Jane I. Elago** (h2r5-turn-004949) -check ng proper **[05:47:59.950] Rep. Sarah Jane I. Elago** (h2r5-turn-004950) utilization ng Gender and Development Fund. **[05:48:03.130] Rep. Sarah Jane I. Elago** (h2r5-turn-004951) Para po ba sa 2025, **[05:48:06.690] Rep. Sarah Jane I. Elago** (h2r5-turn-004952) magkano po yung **[05:48:07.930] Rep. Sarah Jane I. Elago** (h2r5-turn-004953) buong nagamit para sa gender and development ng **[05:48:11.830] Rep. Sarah Jane I. Elago** (h2r5-turn-004954) ating mga agencies? **[05:48:15.270] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004955) Madam Chair, Your Honor. Unfortunately, we don't have the figure with us right now, but we will coordinate with the Philippine Commission on Women so **[05:48:23.050] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-004956) that we can get the data and submit to Your Honor through the Committee on Appropriation. **[05:48:28.650] Rep. Sarah Jane I. Elago** (h2r5-turn-004957) Yes, **[05:48:29.150] Rep. Sarah Jane I. Elago** (h2r5-turn-004958) maraming salamat, Madam Chair. At hihingin din po natin yung, **[05:48:32.510] Rep. Sarah Jane I. Elago** (h2r5-turn-004959) hindi lang yung submission, pero kung meron na po kayong assessment, **[05:48:36.710] Rep. Sarah Jane I. Elago** (h2r5-turn-004960) kung paano **[05:48:38.430] Rep. Sarah Jane I. Elago** (h2r5-turn-004961) nagagamit ng mga agencies bilang hindi po hiwalay **[05:48:41.550] Rep. Sarah Jane I. Elago** (h2r5-turn-004962) na expenses, **[05:48:44.030] Rep. Sarah Jane I. Elago** (h2r5-turn-004963) expenditure, pero kung paano nila natitiyak na sa bawat programa, sa bawat aktibidad, sa bawat proyekto ay meron tayong **[05:48:52.490] Rep. Sarah Jane I. Elago** (h2r5-turn-004964) nakikita at pagkilala sa halaga ng pantay na karapatan ng bawat isa at paglama din sa diskriminasyon. Hindi lang po sa kababaihan, pero sa kahit saan man, or kahit **[05:49:04.370] Rep. Sarah Jane I. Elago** (h2r5-turn-004965) ano man na kasarihan. **[05:49:06.690] Rep. Sarah Jane I. Elago** (h2r5-turn-004966) Ngayon, Madam Chair, gusto ko lang pong humingi **[05:49:10.270] Rep. Sarah Jane I. Elago** (h2r5-turn-004967) ng clarification mula sa DepDev, dun sa binanggit nila kanina na figures ng poverty **[05:49:16.230] Rep. Sarah Jane I. Elago** (h2r5-turn-004968) threshold. Ang sabi po nila kanina for NCR, meron tayong 16,842 pesos. **[05:49:22.770] Rep. Sarah Jane I. Elago** (h2r5-turn-004969) At sa labas ng NCR, 14,634. **[05:49:27.010] Rep. Sarah Jane I. Elago** (h2r5-turn-004970) At kung titignan yung daily sa **[05:49:31.030] Rep. Sarah Jane I. Elago** (h2r5-turn-004971) NCR, ang sabi nila kanina 554. **[05:49:33.930] Rep. Sarah Jane I. Elago** (h2r5-turn-004972) Ngunit kung idedivide po yung figure na binigay nila monthly, nasa 561 pesos po ito, mas mataas. **[05:49:42.210] Rep. Sarah Jane I. Elago** (h2r5-turn-004973) At kung sa outside NCR, **[05:49:44.410] Rep. Sarah Jane I. Elago** (h2r5-turn-004974) nasa 488 pesos. Pwede po ba itong makumpirma ng DepDev? **[05:49:55.970] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-004975) Ang divisor na ginagamit natin is 30.4 days. Sa average, **[05:50:02.590] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-004976) 30 **[05:50:06.360] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-004977) .4 days per month ang **[05:50:09.080] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-004978) average na ginagamit. **[05:50:11.340] Rep. Sarah Jane I. Elago** (h2r5-turn-004979) 30.4 days. **[05:50:14.360] Rep. Sarah Jane I. Elago** (h2r5-turn-004980) Okay, **[05:50:15.100] Rep. Sarah Jane I. Elago** (h2r5-turn-004981) so tama po kanina yung 554. **[05:50:17.900] Rep. Sarah Jane I. Elago** (h2r5-turn-004982) Okay. At sa labas po ng NCR, **[05:50:21.160] Rep. Sarah Jane I. Elago** (h2r5-turn-004983) nasa 460, 470 plus. **[05:50:24.580] Rep. Sarah Jane I. Elago** (h2r5-turn-004984) At **[05:50:25.180] Rep. Sarah Jane I. Elago** (h2r5-turn-004985) natanong ko ito ulit, **[05:50:26.400] Rep. Sarah Jane I. Elago** (h2r5-turn-004986) Madam **[05:50:28.440] Rep. Sarah Jane I. Elago** (h2r5-turn-004987) Chair, dahil kung **[05:50:29.740] Rep. Sarah Jane I. Elago** (h2r5-turn-004988) titignan natin yung pamantayan ng poverty threshold na binanggit sa atin ng DepDev, **[05:50:37.780] Rep. Sarah Jane I. Elago** (h2r5-turn-004989) meron po tayong isa, **[05:50:40.820] Rep. Sarah Jane I. Elago** (h2r5-turn-004990) dalawa, tatlo, apat, lima, **[05:50:42.860] Rep. Sarah Jane I. Elago** (h2r5-turn-004991) anim at pito na mga regyon **[05:50:46.420] Rep. Sarah Jane I. Elago** (h2r5-turn-004992) na ang mga minimum wage po. Ay nasa ilalim na ng poverty threshold. **[05:50:51.780] Rep. Sarah Jane I. Elago** (h2r5-turn-004993) Kaya ho, concerning, dahil **[05:50:53.980] Rep. Sarah Jane I. Elago** (h2r5-turn-004994) ibig sabihin nito, Madam Chair, hindi na lang talaga sapat **[05:50:57.680] Rep. Sarah Jane I. Elago** (h2r5-turn-004995) na isa **[05:50:58.580] Rep. Sarah Jane I. Elago** (h2r5-turn-004996) yung kumikita sa **[05:51:00.280] Rep. Sarah Jane I. Elago** (h2r5-turn-004997) kada pamilya para masuportahan yung **[05:51:03.520] Rep. Sarah Jane I. Elago** (h2r5-turn-004998) family of five. Kaya ho, **[05:51:05.440] Rep. Sarah Jane I. Elago** (h2r5-turn-004999) isa rin ito sa mga dahilan kung bakit dito sa Kongreso, nagsusulong tayo **[05:51:10.480] Rep. Sarah Jane I. Elago** (h2r5-turn-005000) ng pag **[05:51:12.200] Rep. Sarah Jane I. Elago** (h2r5-turn-005001) -aaral sa pagpapatupad ng isang national **[05:51:15.880] Rep. Sarah Jane I. Elago** (h2r5-turn-005002) minimum wage system. At **[05:51:17.920] Rep. Sarah Jane I. Elago** (h2r5-turn-005003) kung paano rin mapapababa yung presyo ng mga bilihin. **[05:51:21.280] Rep. Sarah Jane I. Elago** (h2r5-turn-005004) Nabanggit na rin ho kanina yung iba't ibang mga proposals para tanggalin yung value-added tax. **[05:51:27.360] Rep. Sarah Jane I. Elago** (h2r5-turn-005005) Dahil patong-patong yung VAT sa pagkain, sa kuryente, sa langis at **[05:51:33.140] Rep. Sarah Jane I. Elago** (h2r5-turn-005006) mga batayang pangailangan ng ating mga kababayan. **[05:51:36.780] Rep. Sarah Jane I. Elago** (h2r5-turn-005007) Kaya gusto rin ho natin hinga ng update ang DOF. Matagal na rin po natin na pinopropose sa kanila na ma **[05:51:45.160] Rep. Sarah Jane I. Elago** (h2r5-turn-005008) -review yung suspension. O pagbaba man lang ng value-added tax. Bilang dagdag pa dun sa current **[05:51:53.700] Rep. Sarah Jane I. Elago** (h2r5-turn-005009) powers na ng President na pwede **[05:51:56.720] Rep. Sarah Jane I. Elago** (h2r5-turn-005010) silang mag-suspend, mag-reduce ng excise tax sa oil. **[05:52:00.340] Rep. Sarah Jane I. Elago** (h2r5-turn-005011) Marami hong nagsasabi rin sa atin na hindi sapat na bawasan yung excise tax sa LPG at kerosene. **[05:52:06.760] Rep. Sarah Jane I. Elago** (h2r5-turn-005012) Kung pwedeng bawasan o suspindihin na rin yung excise tax sa **[05:52:11.320] Rep. Sarah Jane I. Elago** (h2r5-turn-005013) diesel at sa iba pang mga petroleum products. At kung maaari nararapat lang sa hirap ng buhay ngayon, mababa nga yung sahod, mataas ang presyo ng bilihin, **[05:52:20.500] Rep. Sarah Jane I. Elago** (h2r5-turn-005014) dagdag pa po ang mga sunod-sunod na calamities, ay tingnan na rin, suriin na rin yung pagtanggal mismo sa value-added tax. Meron na po bang update mula sa DOF ng inyong proposal sa uplift? Napag-uusapan ho ba ito? **[05:52:36.660] Rep. Sarah Jane I. Elago** (h2r5-turn-005015) At ano ho yung plano natin for the next months? Lalong-lalo na may mga reported din po na, na windfall revenues ng government from VAT collection sa oil and petroleum products? **[05:52:52.660] DOF Secretary Frederick D. Go** (h2r5-turn-005016) Madam Chair, Your Honor, **[05:52:55.240] DOF Secretary Frederick D. Go** (h2r5-turn-005017) I **[05:52:56.580] DOF Secretary Frederick D. Go** (h2r5-turn-005018) mentioned it earlier that **[05:52:59.820] DOF Secretary Frederick D. Go** (h2r5-turn-005019) my categorical position on any tax **[05:53:02.580] DOF Secretary Frederick D. Go** (h2r5-turn-005020) removal is I'm not opposed to any tax removal **[05:53:07.360] DOF Secretary Frederick D. Go** (h2r5-turn-005021) for as long as a replacement revenue source is identified. **[05:53:12.800] DOF Secretary Frederick D. Go** (h2r5-turn-005022) I **[05:53:13.560] DOF Secretary Frederick D. Go** (h2r5-turn-005023) am neutral to **[05:53:15.080] DOF Secretary Frederick D. Go** (h2r5-turn-005024) all the tax removals. But we **[05:53:17.320] DOF Secretary Frederick D. Go** (h2r5-turn-005025) do have a national expenditure budget of 7.2 trillion, which we have to fund. **[05:53:24.620] DOF Secretary Frederick D. Go** (h2r5-turn-005026) So if we remove any tax measure, **[05:53:28.580] DOF Secretary Frederick D. Go** (h2r5-turn-005027) the request is that **[05:53:31.940] DOF Secretary Frederick D. Go** (h2r5-turn-005028) Your **[05:53:32.580] DOF Secretary Frederick D. Go** (h2r5-turn-005029) Honor identify another tax **[05:53:35.160] DOF Secretary Frederick D. Go** (h2r5-turn-005030) source. **[05:53:36.500] DOF Secretary Frederick D. Go** (h2r5-turn-005031) But **[05:53:37.180] DOF Secretary Frederick D. Go** (h2r5-turn-005032) I'll tackle VAT in particular. **[05:53:40.980] DOF Secretary Frederick D. Go** (h2r5-turn-005033) Our VAT rate is actually 12 percent. But our effective rate... VAT rate is only half. It's only six. **[05:53:48.440] DOF Secretary Frederick D. Go** (h2r5-turn-005034) Because there are so many exemptions on VAT. **[05:53:53.440] DOF Secretary Frederick D. Go** (h2r5-turn-005035) I will not name them, but the list is very long for all the exemptions. So our real effective VAT rate is actually only half. **[05:54:02.960] DOF Secretary Frederick D. Go** (h2r5-turn-005036) And the **[05:54:03.880] DOF Secretary Frederick D. Go** (h2r5-turn-005037) discussion always in the **[05:54:07.240] DOF Secretary Frederick D. Go** (h2r5-turn-005038) DBCC, which was the entity that made the recommendation for which taxes to remove, was similar. If we remove this revenue source, what would the replacement be? Or at what expense to government services, **[05:54:25.440] DOF Secretary Frederick D. Go** (h2r5-turn-005039) ayuda, **[05:54:26.620] DOF Secretary Frederick D. Go** (h2r5-turn-005040) infrastructure, classrooms, **[05:54:29.220] DOF Secretary Frederick D. Go** (h2r5-turn-005041) etc.? **[05:54:30.620] Rep. Sarah Jane I. Elago** (h2r5-turn-005042) Yes, Madam Chair. **[05:54:32.020] Rep. Sarah Jane I. Elago** (h2r5-turn-005043) Parehong question sa DOF. **[05:54:34.780] Rep. Sarah Jane I. Elago** (h2r5-turn-005044) Kasi natanong po natin nung sila ay nagpunta dito para mag-present. **[05:54:39.020] Rep. Sarah Jane I. Elago** (h2r5-turn-005045) Maganda naman na meron tayong MCIT **[05:54:41.700] Rep. Sarah Jane I. Elago** (h2r5-turn-005046) exemption, meron din tayong pagtataas ng personal income tax exemption **[05:54:46.980] Rep. Sarah Jane I. Elago** (h2r5-turn-005047) to P350,000. **[05:54:49.720] Rep. Sarah Jane I. Elago** (h2r5-turn-005048) Samantalang, nandyan din yung mga revenue generating reforms from the e-cigarettes, novel tobacco, excise tax on plastics, increase and expansion of sweet and beverage taxes, excise tax on alcohol, ano. Pero ang hinanap po namin, paano naman yung mga sobrang-sobrang yaman, yung **[05:55:08.120] Rep. Sarah Jane I. Elago** (h2r5-turn-005049) mga super-bilyonaryo? Meron ba kayong mga proposals, no, galing mismo sa inyo, no? Kasi kayo nga yung pinaka-nakakakita sa ngayon ng [unclear] na kalagayan ng ating bayan. At napakatindi na talaga ng **[05:55:21.103] Rep. Sarah Jane I. Elago** (h2r5-turn-005050) layo yung agwat ng sobrang-sobrang yaman, mga bilyonaryo, doon sa mga pinakamahihirap nating mga kababayan. Kaya ho, ayun na lang yung **[05:55:31.180] Rep. Sarah Jane I. Elago** (h2r5-turn-005051) katanungan ko, Madam Chair, no. Bagama't meron tayong mga relief, no, measures na sinabi ko na rin po, 350,000 is just an **[05:55:39.420] Rep. Sarah Jane I. Elago** (h2r5-turn-005052) inflation **[05:55:40.660] Rep. Sarah Jane I. Elago** (h2r5-turn-005053) -adjusted **[05:55:41.720] Rep. Sarah Jane I. Elago** (h2r5-turn-005054) um, value, no. **[05:55:43.100] Rep. Sarah Jane I. Elago** (h2r5-turn-005055) Ah, hindi talaga **[05:55:44.880] Rep. Sarah Jane I. Elago** (h2r5-turn-005056) ito yung parang mas malaki pa, no, substantially **[05:55:47.280] Rep. Sarah Jane I. Elago** (h2r5-turn-005057) um, helpful, no, na relief sa ating mga kababayan **[05:55:51.180] Rep. Sarah Jane I. Elago** (h2r5-turn-005058) pero sana naman, ah, pag-isipan din ho natin **[05:55:53.920] Rep. Sarah Jane I. Elago** (h2r5-turn-005059) kung paano **[05:55:54.640] Rep. Sarah Jane I. Elago** (h2r5-turn-005060) mapapasan din ng mga sobrang-sobrang yaman **[05:55:57.740] Rep. Sarah Jane I. Elago** (h2r5-turn-005061) at mga malalaking korporasyon yung kinakailangan na **[05:56:02.280] Rep. Sarah Jane I. Elago** (h2r5-turn-005062) mabuo natin na revenues for health, education, agriculture and social services. **[05:56:08.860] Rep. Sarah Jane I. Elago** (h2r5-turn-005063) Ayun lang, Madam Chair. **[05:56:11.860] DOF Secretary Frederick D. Go** (h2r5-turn-005064) Madam Chair, can I answer? **[05:56:13.900] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005065) Go ahead po. **[05:56:15.340] DOF Secretary Frederick D. Go** (h2r5-turn-005066) Your Honor, it is in the Progress Bill. **[05:56:19.380] DOF Secretary Frederick D. Go** (h2r5-turn-005067) There are several tax **[05:56:22.000] DOF Secretary Frederick D. Go** (h2r5-turn-005068) measures there that **[05:56:23.940] DOF Secretary Frederick D. Go** (h2r5-turn-005069) cover exactly what you said. For example, we were proposing a higher tax for automobiles in the luxury segment. **[05:56:30.800] DOF Secretary Frederick D. Go** (h2r5-turn-005070) There's also a proposal to tax private planes. **[05:56:34.780] DOF Secretary Frederick D. Go** (h2r5-turn-005071) There's also a measure to... **[05:56:39.960] DOF Secretary Frederick D. Go** (h2r5-turn-005072) GMT. We also have this global minimum tax that we want to tax the global multinationals that are doing operations in our country. **[05:56:47.740] DOF Secretary Frederick D. Go** (h2r5-turn-005073) So it's there. A **[05:56:49.420] DOF Secretary Frederick D. Go** (h2r5-turn-005074) short answer. **[05:56:52.260] Rep. Sarah Jane I. Elago** (h2r5-turn-005075) What about, Madam Chair, the billionaire's tax? **[05:56:55.840] Rep. Sarah Jane I. Elago** (h2r5-turn-005076) We **[05:56:56.080] Rep. Sarah Jane I. Elago** (h2r5-turn-005077) have **[05:56:56.320] Rep. Sarah Jane I. Elago** (h2r5-turn-005078) a lot here. We **[05:56:57.771] Rep. Sarah Jane I. Elago** (h2r5-turn-005079) haven't filed any yet, in particular. But there **[05:57:01.580] Rep. Sarah Jane I. Elago** (h2r5-turn-005080) are proposals here that we are currently studying. **[05:57:05.260] Rep. Sarah Jane I. Elago** (h2r5-turn-005081) Each one has **[05:57:07.320] Rep. Sarah Jane I. Elago** (h2r5-turn-005082) 1 billion taxable income. There's an increase of 1 **[05:57:11.020] Rep. Sarah Jane I. Elago** (h2r5-turn-005083) contribution. **[05:57:15.810] DOF Secretary Frederick D. Go** (h2r5-turn-005084) I think that we can continue that discussion internally. **[05:57:21.450] DOF Secretary Frederick D. Go** (h2r5-turn-005085) But I think the global **[05:57:24.270] DOF Secretary Frederick D. Go** (h2r5-turn-005086) standard for that is... **[05:57:27.490] DOF Secretary Frederick D. Go** (h2r5-turn-005087) Well, we will study that internally. **[05:57:30.990] Rep. Sarah Jane I. Elago** (h2r5-turn-005088) That's all for now, Madam Chair. Thank you very much. **[05:57:33.430] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005089) Thank you, Representative Elago. **[05:57:35.790] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005090) Next to interpellate for the second round, Senior Deputy Speaker Ferdinand Hernandez. **[05:57:42.670] Senior Deputy Speaker Ferdinand L. Hernandez** (h2r5-turn-005091) This is my first round, Madam Chair. Thank **[05:57:45.870] Senior Deputy Speaker Ferdinand L. Hernandez** (h2r5-turn-005092) you, Madam Chair. **[05:57:47.030] Senior Deputy Speaker Ferdinand L. Hernandez** (h2r5-turn-005093) To DOF. Sorry, Sec. **[05:57:49.690] Senior Deputy Speaker Ferdinand L. Hernandez** (h2r5-turn-005094) Madali **[05:57:50.010] Senior Deputy Speaker Ferdinand L. Hernandez** (h2r5-turn-005095) lang 'to. **[05:57:54.440] Senior Deputy Speaker Ferdinand L. Hernandez** (h2r5-turn-005096) The Chair of Ways and Means and I filed **[05:57:57.520] Senior Deputy Speaker Ferdinand L. Hernandez** (h2r5-turn-005097) a bill for **[05:57:59.420] Senior Deputy Speaker Ferdinand L. Hernandez** (h2r5-turn-005098) the removal of VAT on system loss. **[05:58:03.840] Senior Deputy Speaker Ferdinand L. Hernandez** (h2r5-turn-005099) And I just feel, based on discussion, that **[05:58:09.740] Senior Deputy Speaker Ferdinand L. Hernandez** (h2r5-turn-005100) we don't need a legislation. **[05:58:12.100] Senior Deputy Speaker Ferdinand L. Hernandez** (h2r5-turn-005101) I **[05:58:12.780] Senior Deputy Speaker Ferdinand L. Hernandez** (h2r5-turn-005102) totally agree with your **[05:58:14.020] Senior Deputy Speaker Ferdinand L. Hernandez** (h2r5-turn-005103) position that when you ask for a removal of, let's **[05:58:19.160] Senior Deputy Speaker Ferdinand L. Hernandez** (h2r5-turn-005104) say, VAT, you have to identify another source when it is legitimately imposed. **[05:58:25.400] Senior Deputy Speaker Ferdinand L. Hernandez** (h2r5-turn-005105) However, **[05:58:26.640] Senior Deputy Speaker Ferdinand L. Hernandez** (h2r5-turn-005106) dun sa systems loss kasi, I'll just read this, Sec. **[05:58:33.500] Senior Deputy Speaker Ferdinand L. Hernandez** (h2r5-turn-005107) No consumption, no **[05:58:35.800] Senior Deputy Speaker Ferdinand L. Hernandez** (h2r5-turn-005108) VAT. **[05:58:37.800] Senior Deputy Speaker Ferdinand L. Hernandez** (h2r5-turn-005109) Electricity loss before it reaches the consumer should not be treated as the same manner as electricity actually delivered and consumed. **[05:58:46.740] Senior Deputy Speaker Ferdinand L. Hernandez** (h2r5-turn-005110) Removing VAT on system loss, therefore, aligns the **[05:58:50.360] Senior Deputy Speaker Ferdinand L. Hernandez** (h2r5-turn-005111) tax treatment with the consumption-based character of VAT and **[05:58:54.200] Senior Deputy Speaker Ferdinand L. Hernandez** (h2r5-turn-005112) prevents consumer from paying a tax on electricity never **[05:58:57.980] Senior Deputy Speaker Ferdinand L. Hernandez** (h2r5-turn-005113) actually used. **[05:58:59.600] Senior Deputy Speaker Ferdinand L. Hernandez** (h2r5-turn-005114) So, **[05:59:00.180] Senior Deputy Speaker Ferdinand L. Hernandez** (h2r5-turn-005115) nag-impose tayo ng VAT on **[05:59:03.140] Senior Deputy Speaker Ferdinand L. Hernandez** (h2r5-turn-005116) consumption. **[05:59:05.280] Senior Deputy Speaker Ferdinand L. Hernandez** (h2r5-turn-005117) Ito kasi, they're **[05:59:07.580] Senior Deputy Speaker Ferdinand L. Hernandez** (h2r5-turn-005118) paying already the system loss. **[05:59:12.500] Senior Deputy Speaker Ferdinand L. Hernandez** (h2r5-turn-005119) Kumbaga, **[05:59:13.480] Senior Deputy Speaker Ferdinand L. Hernandez** (h2r5-turn-005120) pinasa na yung sa system loss sa consumer, ninagdagan pa ng VAT na **[05:59:18.720] Senior Deputy Speaker Ferdinand L. Hernandez** (h2r5-turn-005121) hindi naman dapat i-impose because it's not consumption. **[05:59:22.120] Senior Deputy Speaker Ferdinand L. Hernandez** (h2r5-turn-005122) So, this is different from VAT on electricity, only on the **[05:59:26.960] Senior Deputy Speaker Ferdinand L. Hernandez** (h2r5-turn-005123) system loss. So, what is the position now of **[05:59:30.360] Senior Deputy Speaker Ferdinand L. Hernandez** (h2r5-turn-005124) DOF and BIR? Kasi, nakikita namin, **[05:59:34.440] Senior Deputy Speaker Ferdinand L. Hernandez** (h2r5-turn-005125) You can come up with your **[05:59:37.480] Senior Deputy Speaker Ferdinand L. Hernandez** (h2r5-turn-005126) own rules and regulation. And you've cited several times, na ito yung mga VAT exempt. **[05:59:46.620] Senior Deputy Speaker Ferdinand L. Hernandez** (h2r5-turn-005127) And it covers even previous imposition and then **[05:59:51.240] Senior Deputy Speaker Ferdinand L. Hernandez** (h2r5-turn-005128) later on, **[05:59:52.480] Senior Deputy Speaker Ferdinand L. Hernandez** (h2r5-turn-005129) sinasabi nyo na VAT exempt to. So, **[05:59:54.840] Senior Deputy Speaker Ferdinand L. Hernandez** (h2r5-turn-005130) what we're asking **[05:59:57.440] Senior Deputy Speaker Ferdinand L. Hernandez** (h2r5-turn-005131) is that I **[05:59:59.400] Senior Deputy Speaker Ferdinand L. Hernandez** (h2r5-turn-005132) don't think we need the legislation. All we need is new, **[06:00:02.860] Senior Deputy Speaker Ferdinand L. Hernandez** (h2r5-turn-005133) probably rules and regulation **[06:00:05.500] Senior Deputy Speaker Ferdinand L. Hernandez** (h2r5-turn-005134) exempting VAT on system loss. **[06:00:10.280] DOF Secretary Frederick D. Go** (h2r5-turn-005135) Thank you very much, Madam Chair. Your Honor, thank you very much. It's a point well taken. With **[06:00:17.012] DOF Secretary Frederick D. Go** (h2r5-turn-005136) your permission, I will ask our BIR Commissioner, Charlie Mendoza, to respond. **[06:00:22.920] BIR Commissioner Charlito Martin R. Mendoza** (h2r5-turn-005137) Yes. **[06:00:23.460] BIR Commissioner Charlito Martin R. Mendoza** (h2r5-turn-005138) Madam Chair, tama po iyon. Recently, we issued a revenue memorandum circular **[06:00:29.340] BIR Commissioner Charlito Martin R. Mendoza** (h2r5-turn-005139) exempting some **[06:00:31.000] BIR Commissioner Charlito Martin R. Mendoza** (h2r5-turn-005140) charges from VAT. **[06:00:33.300] BIR Commissioner Charlito Martin R. Mendoza** (h2r5-turn-005141) Iyan po ay iyong Green Energy Auction Allowance at iyong Lifeline Subsidy. We **[06:00:39.040] BIR Commissioner Charlito Martin R. Mendoza** (h2r5-turn-005142) issued a revenue memorandum circular categorically stating that **[06:00:42.480] BIR Commissioner Charlito Martin R. Mendoza** (h2r5-turn-005143) they should not be subject to VAT **[06:00:44.700] BIR Commissioner Charlito Martin R. Mendoza** (h2r5-turn-005144) because these are clearly mandated pass- **[06:00:47.780] BIR Commissioner Charlito Martin R. Mendoza** (h2r5-turn-005145) through charges. **[06:00:49.100] BIR Commissioner Charlito Martin R. Mendoza** (h2r5-turn-005146) So, the current problem po kasi with system loss charge is **[06:00:53.400] BIR Commissioner Charlito Martin R. Mendoza** (h2r5-turn-005147) that it is bundled **[06:00:56.453] BIR Commissioner Charlito Martin R. Mendoza** (h2r5-turn-005148) with the gross sales **[06:00:58.699] BIR Commissioner Charlito Martin R. Mendoza** (h2r5-turn-005149) of the companies, **[06:00:59.821] BIR Commissioner Charlito Martin R. Mendoza** (h2r5-turn-005150) of the distributor. **[06:01:02.066] BIR Commissioner Charlito Martin R. Mendoza** (h2r5-turn-005151) So, it becomes part of the gross sale and therefore, it forms part of the tax base of the VAT base. That is why it is currently being subject to VAT. **[06:01:14.180] BIR Commissioner Charlito Martin R. Mendoza** (h2r5-turn-005152) But we are closely working with ERC on this, Madam Chair. **[06:01:18.880] BIR Commissioner Charlito Martin R. Mendoza** (h2r5-turn-005153) Nag-uusap po kami. **[06:01:21.620] BIR Commissioner Charlito Martin R. Mendoza** (h2r5-turn-005154) At **[06:01:22.220] BIR Commissioner Charlito Martin R. Mendoza** (h2r5-turn-005155) tinitingnan po namin kung paano natin mare-resolve itong concern na ito. **[06:01:26.480] BIR Commissioner Charlito Martin R. Mendoza** (h2r5-turn-005156) In fact, as far as I know, they have a draft **[06:01:29.080] BIR Commissioner Charlito Martin R. Mendoza** (h2r5-turn-005157) regulation addressing **[06:01:31.940] BIR Commissioner Charlito Martin R. Mendoza** (h2r5-turn-005158) this. **[06:01:32.760] BIR Commissioner Charlito Martin R. Mendoza** (h2r5-turn-005159) At ang pagkakaalam ko po is it will go **[06:01:36.080] BIR Commissioner Charlito Martin R. Mendoza** (h2r5-turn-005160) through a public consultation next **[06:01:38.440] BIR Commissioner Charlito Martin R. Mendoza** (h2r5-turn-005161) week. And then, titingnan po namin doon **[06:01:40.300] BIR Commissioner Charlito Martin R. Mendoza** (h2r5-turn-005162) based doon sa regulation na ilalabas ng ERC. **[06:01:43.520] BIR Commissioner Charlito Martin R. Mendoza** (h2r5-turn-005163) Pero maliwanag naman po ang posisyon ng BIR dyan kung **[06:01:46.740] BIR Commissioner Charlito Martin R. Mendoza** (h2r5-turn-005164) iyan po ay hindi part ng gross sales, kung iyan po ay mandated pass-through charge lang, iyan po ay hindi dapat ma-subject sa VAT. **[06:01:54.340] Senior Deputy Speaker Ferdinand L. Hernandez** (h2r5-turn-005165) So, Sek, this is important, no? Kasi para **[06:01:58.360] Senior Deputy Speaker Ferdinand L. Hernandez** (h2r5-turn-005166) malaman ng taong bayan, **[06:01:59.700] Senior Deputy Speaker Ferdinand L. Hernandez** (h2r5-turn-005167) meron naman pwedeng gawin na hindi na kailangan ng legislation. **[06:02:02.920] Senior Deputy Speaker Ferdinand L. Hernandez** (h2r5-turn-005168) And they've been asking for this. The **[06:02:05.060] Senior Deputy Speaker Ferdinand L. Hernandez** (h2r5-turn-005169) President mentioned this during SONA na **[06:02:07.680] Senior Deputy Speaker Ferdinand L. Hernandez** (h2r5-turn-005170) merong solusyon na hindi na kailangan tumagal. **[06:02:10.100] Senior Deputy Speaker Ferdinand L. Hernandez** (h2r5-turn-005171) All it takes is for BIR at ERC to sit down and **[06:02:13.700] Senior Deputy Speaker Ferdinand L. Hernandez** (h2r5-turn-005172) come up with a new **[06:02:14.620] Senior Deputy Speaker Ferdinand L. Hernandez** (h2r5-turn-005173) list or items that are chargeable and **[06:02:18.940] Senior Deputy Speaker Ferdinand L. Hernandez** (h2r5-turn-005174) removing VAT. **[06:02:19.920] Senior Deputy Speaker Ferdinand L. Hernandez** (h2r5-turn-005175) Kasi in system loss, meron pang... **[06:02:23.520] Senior Deputy Speaker Ferdinand L. Hernandez** (h2r5-turn-005176) Technical and non-technical. And there's no issue on the non-technical. But **[06:02:28.720] Senior Deputy Speaker Ferdinand L. Hernandez** (h2r5-turn-005177) as far as VAT, whether it's technical or non-technical, dapat talaga hindi na ma-impose yung VAT. **[06:02:35.780] DOF Secretary Frederick D. Go** (h2r5-turn-005178) Your Honor, your points are very well taken. I think what our **[06:02:41.220] DOF Secretary Frederick D. Go** (h2r5-turn-005179) BIR Commissioner mentioned is that there is light at the end of the tunnel, but **[06:02:47.260] DOF Secretary Frederick D. Go** (h2r5-turn-005180) there needs to be certain conditions that need to be satisfied. **[06:02:52.240] DOF Secretary Frederick D. Go** (h2r5-turn-005181) We enumerated two. But **[06:02:53.980] DOF Secretary Frederick D. Go** (h2r5-turn-005182) I think the good news is there is light at the end of the tunnel on this one, I think. So **[06:03:00.200] DOF Secretary Frederick D. Go** (h2r5-turn-005183) we probably, **[06:03:03.840] DOF Secretary Frederick D. Go** (h2r5-turn-005184) if the ERC ever comes in front of your **[06:03:07.180] DOF Secretary Frederick D. Go** (h2r5-turn-005185) committee, you can raise the same issue **[06:03:10.780] DOF Secretary Frederick D. Go** (h2r5-turn-005186) with them. **[06:03:11.760] Senior Deputy Speaker Ferdinand L. Hernandez** (h2r5-turn-005187) I think we've met with the **[06:03:13.540] Senior Deputy Speaker Ferdinand L. Hernandez** (h2r5-turn-005188) Commissioner **[06:03:14.880] Senior Deputy Speaker Ferdinand L. Hernandez** (h2r5-turn-005189) and ERC and they're working on it. And I hope that it can be resolved soon para sa taong bayan. **[06:03:22.520] Senior Deputy Speaker Ferdinand L. Hernandez** (h2r5-turn-005190) Another question. **[06:03:25.900] Senior Deputy Speaker Ferdinand L. Hernandez** (h2r5-turn-005191) Again, the **[06:03:27.660] Senior Deputy Speaker Ferdinand L. Hernandez** (h2r5-turn-005192) Chairman of Ways and Means and I filed **[06:03:30.200] Senior Deputy Speaker Ferdinand L. Hernandez** (h2r5-turn-005193) a bill **[06:03:30.800] Senior Deputy Speaker Ferdinand L. Hernandez** (h2r5-turn-005194) for **[06:03:32.560] Senior Deputy Speaker Ferdinand L. Hernandez** (h2r5-turn-005195) the suspension of **[06:03:36.300] Senior Deputy Speaker Ferdinand L. Hernandez** (h2r5-turn-005196) the Real Property Valuation and Assessment Reform Act. **[06:03:41.580] Senior Deputy Speaker Ferdinand L. Hernandez** (h2r5-turn-005197) Because of, **[06:03:42.660] Senior Deputy Speaker Ferdinand L. Hernandez** (h2r5-turn-005198) number one, **[06:03:43.780] Senior Deputy Speaker Ferdinand L. Hernandez** (h2r5-turn-005199) we are in crisis. **[06:03:45.600] Senior Deputy Speaker Ferdinand L. Hernandez** (h2r5-turn-005200) Number two, the **[06:03:47.900] Senior Deputy Speaker Ferdinand L. Hernandez** (h2r5-turn-005201) unabated increase in prices. **[06:03:49.960] Senior Deputy Speaker Ferdinand L. Hernandez** (h2r5-turn-005202) So parang, at **[06:03:51.880] Senior Deputy Speaker Ferdinand L. Hernandez** (h2r5-turn-005203) this time... **[06:03:53.460] Senior Deputy Speaker Ferdinand L. Hernandez** (h2r5-turn-005204) I don't think you have enough data and you've done consultation. And to impose this at this time, **[06:04:01.160] Senior Deputy Speaker Ferdinand L. Hernandez** (h2r5-turn-005205) baka napaka-detrimental sa taong bayan. So what's the position of DOF on this? **[06:04:09.440] DOF Secretary Frederick D. Go** (h2r5-turn-005206) Your Honor, Madam Chair, if **[06:04:12.640] DOF Secretary Frederick D. Go** (h2r5-turn-005207) Congress **[06:04:14.500] DOF Secretary Frederick D. Go** (h2r5-turn-005208) will legislate a postponement of RPVARA, we will comply. **[06:04:21.100] Senior Deputy Speaker Ferdinand L. Hernandez** (h2r5-turn-005209) Yes, we will do it. **[06:04:22.780] Senior Deputy Speaker Ferdinand L. Hernandez** (h2r5-turn-005210) Thank you. **[06:04:24.320] DOF Secretary Frederick D. Go** (h2r5-turn-005211) Thank you. **[06:04:36.220] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005212) Thank you, SDS Dinand. We'll now move to the next interpellator for the second round, from **[06:04:53.910] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005213) the Minority, Rep. Allan Ty. **[06:04:58.830] Rep. Allan U. Ty** (h2r5-turn-005214) Thank you, Madam Chair. **[06:05:00.120] Rep. Allan U. Ty** (h2r5-turn-005215) To Secretary Kim **[06:05:02.020] Rep. Allan U. Ty** (h2r5-turn-005216) de Leon, **[06:05:02.660] Rep. Allan U. Ty** (h2r5-turn-005217) what **[06:05:08.220] Rep. Allan U. Ty** (h2r5-turn-005218) was the total budget for the Local Government Support Fund, or LGSF, in fiscal year 2025 and **[06:05:16.400] Rep. Allan U. Ty** (h2r5-turn-005219) for fiscal year 2026? **[06:05:33.660] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005220) Madam Chair, Your Honor. **[06:05:36.970] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005221) Ah. **[06:05:38.370] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005222) Are we referring to the **[06:05:40.624] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005223) total LGSF, Your Honor, across the different uses? **[06:05:44.750] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005224) For 2026, that is 57 **[06:05:47.890] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005225) .872 billion pesos, Your Honor. And **[06:05:53.430] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005226) for 2027, that is 58.532 **[06:05:57.810] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005227) billion pesos. **[06:06:00.010] Rep. Allan U. Ty** (h2r5-turn-005228) For 2025, **[06:06:01.370] Rep. Allan U. Ty** (h2r5-turn-005229) Mr. Secretary. **[06:06:03.070] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005230) Sixty. **[06:06:04.190] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005231) Twenty **[06:06:04.990] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005232) -twenty-five. **[06:06:10.360] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005233) Your Honor, we'll just... We'll just retrieve the level for 2025. **[06:06:38.920] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005234) Twenty-twenty-five, Your Honor. **[06:06:46.700] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005235) Ga **[06:06:52.750] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005236) -a level. **[06:06:53.510] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005237) The **[06:06:57.870] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005238) GAA level for 2025 for LGSF is 22.999 billion pesos, Your Honor. **[06:07:05.310] Rep. Allan U. Ty** (h2r5-turn-005239) Mr. Secretary, may I refer you to Volume **[06:07:10.080] Rep. Allan U. Ty** (h2r5-turn-005240) 3 of **[06:07:11.500] Rep. Allan U. Ty** (h2r5-turn-005241) the NEP 2027, page **[06:07:14.600] Rep. Allan U. Ty** (h2r5-turn-005242) 887. **[06:07:17.700] Rep. Allan U. Ty** (h2r5-turn-005243) On... On... **[06:07:19.180] Rep. Allan U. Ty** (h2r5-turn-005244) Letter D, **[06:07:20.220] Rep. Allan U. Ty** (h2r5-turn-005245) as to unreleased **[06:07:24.280] Rep. Allan U. Ty** (h2r5-turn-005246) appropriation for **[06:07:25.540] Rep. Allan U. Ty** (h2r5-turn-005247) 2025, you **[06:07:27.480] Rep. Allan U. Ty** (h2r5-turn-005248) have 10.936 billion, am I correct? **[06:07:32.500] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005249) May we confirm, Your Honor, Volume 3? **[06:07:39.000] Rep. Allan U. Ty** (h2r5-turn-005250) Page 887, **[06:07:40.680] Rep. Allan U. Ty** (h2r5-turn-005251) Mr. Secretary. **[06:07:42.000] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005252) That's on LGSF, presumably, Your Honor. **[06:07:45.560] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005253) Page 887, unreleased, apro. So, **[06:07:49.020] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005254) we confirm that figure, Your Honor, 10.936 in unreleased, apro. **[06:07:53.720] Rep. Allan U. Ty** (h2r5-turn-005255) Yes. So, it was carried to **[06:07:56.200] Rep. Allan U. Ty** (h2r5-turn-005256) 2026, am I correct? **[06:08:00.180] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005257) The validity... That is correct, **[06:08:02.520] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005258) Your Honor. **[06:08:03.440] Rep. Allan U. Ty** (h2r5-turn-005259) So, the total available appropriation is around 68.8 **[06:08:07.760] Rep. Allan U. Ty** (h2r5-turn-005260) billion pesos, **[06:08:09.360] Rep. Allan U. Ty** (h2r5-turn-005261) am I correct? **[06:08:10.980] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005262) Based on that page of the NEP, Your Honor, that is correct. **[06:08:15.560] Rep. Allan U. Ty** (h2r5-turn-005263) So, how much has been appropriated for fiscal year 2026 out of 68.8 billion? **[06:08:22.580] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005264) For the releases, as of 2026, your honor, we're just pulling up the slides, the figures. So **[06:08:37.780] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005265) the cumulative, your honor, from 2026, we have **[06:08:44.790] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005266) 50.9 plus the continuing 3.7. So that's about 50 **[06:08:58.080] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005267) .9, **[06:09:00.520] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005268) almost 54 billion pesos as of July **[06:09:05.400] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005269) 31, your honor, Madam Chair. **[06:09:08.680] Rep. Allan U. Ty** (h2r5-turn-005270) So Mr. Secretary, how much still **[06:09:10.800] Rep. Allan U. Ty** (h2r5-turn-005271) remains **[06:09:12.620] Rep. Allan U. Ty** (h2r5-turn-005272) available or unreleased from fiscal year 2026? **[06:09:19.400] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005273) This is as of July 31, your honor, although there are... There were releases made during the first two weeks of August. So that's about a **[06:09:37.360] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005274) little over 7 **[06:09:39.940] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005275) billion, your honor, Madam Chair. **[06:09:42.860] Rep. Allan U. Ty** (h2r5-turn-005276) Thank you, Mr. **[06:09:44.480] Rep. Allan U. Ty** (h2r5-turn-005277) Secretary. **[06:09:45.760] Rep. Allan U. Ty** (h2r5-turn-005278) Mr. Secretary, can **[06:09:47.640] Rep. Allan U. Ty** (h2r5-turn-005279) you distinguish between **[06:09:49.060] Rep. Allan U. Ty** (h2r5-turn-005280) unreleased appropriations from **[06:09:53.360] Rep. Allan U. Ty** (h2r5-turn-005281) unobligated allotments? **[06:09:56.840] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005282) Your honor, Madam Chair. Unreleased appropriations. Unreleased appropriations pertains to appropriations authorized in the GAA, which we have not yet released any form **[06:10:06.380] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005283) of obligation and authority. **[06:10:08.140] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005284) While unobligated allotments, your honor, Madam Chair, pertains to allotments already released to the corresponding departments or agencies but are yet to be obligated by **[06:10:21.000] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005285) the respective departments or agencies, your honor. **[06:10:23.820] Rep. Allan U. Ty** (h2r5-turn-005286) Thank you, Mr. **[06:10:24.780] Rep. Allan U. Ty** (h2r5-turn-005287) Secretary. **[06:10:25.380] Rep. Allan U. Ty** (h2r5-turn-005288) So my question now, Mr. Secretary, about the declaration. What will be your legal basis on the declaration of savings? **[06:10:34.360] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005289) Your honor, Madam Chair, pursuant to the pertinent general provisions and corresponding jurisprudence on the declaration of savings, your honor, Madam Chair. The **[06:10:46.800] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005290) first basis is to refer to released allotments, your honor. **[06:10:54.120] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005291) And from **[06:10:55.800] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005292) these released allotments... The proper determination, **[06:11:00.433] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005293) whether the projects are already deemed abandoned, completed, or discontinued, that's the enumerated basis in the general provision as to when a project **[06:11:12.649] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005294) or a PAP can be declared as savings, your honor. But it has to be released allotment, your honor, Madam Chair. **[06:11:23.000] Rep. Allan U. Ty** (h2r5-turn-005295) Correct. I agree with you, Mr. Secretary. **[06:11:25.380] Rep. Allan U. Ty** (h2r5-turn-005296) So in fiscal year 2025, you did declare... Clear savings, am I correct? **[06:11:32.950] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005297) For, do we refer to the period, your honor, the last fiscal year, during fiscal year 2025? **[06:11:40.390] Rep. Allan U. Ty** (h2r5-turn-005298) Yes. **[06:11:41.130] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005299) I will have to confirm that period, your honor, because that's something I am not personally privy about. **[06:12:05.050] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005300) Your honor, Madam Chair, subject to the final determination, the initial response that we had is during the period of 2025, **[06:12:15.650] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005301) there was no declaration of savings. But definitely, we'll have to double-check with our figures as well, your honor, on **[06:12:23.990] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005302) the particular timing of that declaration of savings. **[06:12:28.170] Rep. Allan U. Ty** (h2r5-turn-005303) Mr. **[06:12:28.790] Rep. Allan U. Ty** (h2r5-turn-005304) Secretary, are you familiar with National Budget Circular No. 603, dated May 4, 2026? **[06:12:35.850] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005305) Yes, your honor. That is issued in response to the Middle East oil crisis. **[06:12:42.110] Rep. Allan U. Ty** (h2r5-turn-005306) And it also provides for the agencies to **[06:12:45.810] Rep. Allan U. Ty** (h2r5-turn-005307) identify savings, am I **[06:12:47.910] Rep. Allan U. Ty** (h2r5-turn-005308) correct? **[06:12:49.010] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005309) That is correct, your honor. But that's **[06:12:51.630] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005310) why I clarified on the period because NBC-603 was issued in 2026, your honor. **[06:12:58.570] Rep. Allan U. Ty** (h2r5-turn-005311) No, Mr. Secretary, can you please go **[06:13:02.170] Rep. Allan U. Ty** (h2r5-turn-005312) over it again? NBC Circular No. 603 refers to fiscal year 2025. **[06:13:08.090] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005313) That is correct. We confirm that, your honor. We issued that in 2026, but **[06:13:13.290] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005314) covering available release allotments that may be declared as savings, under the fiscal year 2025, continuing appropriations. **[06:13:23.640] Rep. Allan U. Ty** (h2r5-turn-005315) You also issued **[06:13:25.700] Rep. Allan U. Ty** (h2r5-turn-005316) NBC Circular No. 602, **[06:13:28.580] Rep. Allan U. Ty** (h2r5-turn-005317) dated **[06:13:30.700] Rep. Allan U. Ty** (h2r5-turn-005318) April 23, 2026, **[06:13:34.060] Rep. Allan U. Ty** (h2r5-turn-005319) covering fiscal year **[06:13:35.640] Rep. Allan U. Ty** (h2r5-turn-005320) 2026, am I correct? **[06:13:37.780] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005321) That is correct, your honor. For fiscal year 2026, GAA release allotments, your honor. **[06:13:49.000] Rep. Allan U. Ty** (h2r5-turn-005322) May I refer to you to your program adjustments for January 1 to July 31? **[06:14:08.020] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005323) Yes, your honor. I'm holding the said report, your honor, Madam Chair. **[06:14:16.190] Rep. Allan U. Ty** (h2r5-turn-005324) Based on the **[06:14:17.270] Rep. Allan U. Ty** (h2r5-turn-005325) FY2026 program adjustments, there **[06:14:21.470] Rep. Allan U. Ty** (h2r5-turn-005326) was already a declaration of savings in the amount of 3 **[06:14:24.310] Rep. Allan U. Ty** (h2r5-turn-005327) .24 billion **[06:14:28.250] Rep. Allan U. Ty** (h2r5-turn-005328) pesos. **[06:14:30.170] Rep. Allan U. Ty** (h2r5-turn-005329) Am **[06:14:30.790] Rep. Allan U. Ty** (h2r5-turn-005330) I correct? **[06:14:33.310] Rep. Allan U. Ty** (h2r5-turn-005331) Or **[06:14:33.930] Rep. Allan U. Ty** (h2r5-turn-005332) rather, amount **[06:14:39.550] Rep. Allan U. Ty** (h2r5-turn-005333) of 12.287 billion. **[06:14:43.930] Rep. Allan U. Ty** (h2r5-turn-005335) Out of the fiscal year **[06:14:45.530] Rep. Allan U. Ty** (h2r5-turn-005336) 2025, **[06:14:47.110] Rep. Allan U. Ty** (h2r5-turn-005337) GAA. **[06:15:08.100] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005338) I **[06:15:08.380] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005339) apologize, your honor. We're trying to find that same figure that your honor has mentioned. **[06:15:20.970] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005340) Your honor, Madam Chair, the figure you mentioned was 12.658 **[06:15:26.570] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005341) billion pesos. **[06:15:29.110] Rep. Allan U. Ty** (h2r5-turn-005342) The amount is around 12.287199 billion. **[06:15:34.490] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005344) I **[06:16:15.750] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005345) apologize, your honor, if you can point us further to which department. Because apparently, in the adjustment **[06:16:22.550] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005346) that we have in front of us, we cannot seem to find that same figure that you cited. **[06:16:27.850] Rep. Allan U. Ty** (h2r5-turn-005347) Madam Chair, may I approach the Secretary to confer with him about **[06:16:32.630] Rep. Allan U. Ty** (h2r5-turn-005348) the figure on **[06:16:34.290] Rep. Allan U. Ty** (h2r5-turn-005349) my possession? **[06:16:38.900] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005350) Go ahead, po. ComSec, please stop the time while Representative Ty is conferring with Sec. Kim. **[06:17:05.240] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005351) Yes, your honor. We can now confirm the figure. The figure, **[06:17:09.340] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005352) 12.287 billion, initially declared as savings by the respective agencies from the fiscal year 2025, GAA, pursuant to National Budget Circular **[06:17:21.460] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005353) 603. Your honor, Madam Chair. **[06:17:26.160] Rep. Allan U. Ty** (h2r5-turn-005354) Was the amount allocated already, **[06:17:28.780] Rep. Allan U. Ty** (h2r5-turn-005355) Mr. Secretary? And to which department was it allocated? **[06:17:32.600] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005356) Yes, Madam Chair, your honor. In compliance with the rule on declaration of savings, it is imperative. **[06:17:41.580] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005357) That's why the recipient PAP, **[06:17:44.540] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005358) the recipient agencies are the following, 11.287119 to the Department of Social Welfare and Development, **[06:17:52.860] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005359) and 1 billion pesos to DMW OWA to **[06:17:56.220] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005360) implement measures under the Uplift Program, your honor, Madam Chair. **[06:18:01.820] Rep. Allan U. Ty** (h2r5-turn-005361) Thank you, Mr. Secretary. How about for 2026? **[06:18:06.800] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005362) For 20, under the 2026 GAA, your honor, Madam Chair, the offered **[06:18:14.240] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005363) savings amounts to 4.087801, initially, your honor, **[06:18:27.440] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005365) corresponding to amounts **[06:18:30.460] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005366) released as well to DMW OSEC at 3 billion and additional 1 **[06:18:34.340] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005367) .087 billion for **[06:18:37.140] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005368) DSWD. And we add to that as well, the amount **[06:18:42.700] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005370) Some earmarked amounts for DA at 2 billion. **[06:18:46.280] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005371) So that gives us about 6.1 billion pesos from under 2026 GAA, your honor. **[06:18:53.680] Rep. Allan U. Ty** (h2r5-turn-005372) Thank you, Mr. **[06:18:54.660] Rep. Allan U. Ty** (h2r5-turn-005373) Secretary. **[06:18:55.900] Rep. Allan U. Ty** (h2r5-turn-005374) I **[06:18:56.460] Rep. Allan U. Ty** (h2r5-turn-005375) have no more questions, **[06:18:58.000] Rep. Allan U. Ty** (h2r5-turn-005376) Madam Chair. **[06:19:01.100] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005377) Thank you, Representative Ty. Next to interpellate for the second round, Representative Renee Co. **[06:19:09.820] Rep. Renee Louise M. Co** (h2r5-turn-005378) Thank you, Chair. Just to get back also on free higher education, Madam Chair, this representation would like to share **[06:19:20.340] Rep. Renee Louise M. Co** (h2r5-turn-005379) its appreciation na may attention finally doon sa pag-disburse at paglabas ng pondo para po sa free higher education deficiency. And the Secretary made mention of their updated formula in relation sa pag **[06:19:38.720] Rep. Renee Louise M. Co** (h2r5-turn-005380) -calculate ano yung SUC budget. May this representation be furnished a copy of how the DBM now calculates the budget? **[06:19:52.840] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005381) Yes, your honor, Madam Chair, would be glad to share with the **[06:19:57.540] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005382) good Congresswoman the basis for the computation of the FHE allocation as presented in the 2027 NEP. **[06:20:05.380] Rep. Renee Louise M. Co** (h2r5-turn-005383) Okay. And just a practical question po, Madam Chair. Section 4 po kasi provides that the basis should be the projected number of enrollees for each academic year. Pero mukhang nag-share po ng DBM. Parang actual number of enrollees for the **[06:20:22.580] Rep. Renee Louise M. Co** (h2r5-turn-005384) average of three years. Paano po i-reconcile ng DBM yun? **[06:20:29.220] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005385) Your honor, Madam Chair, that is the reason why we used some proxy indicator to approximate the probable increase because historically, **[06:20:38.400] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005386) the **[06:20:39.060] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005387) reason why there were arrears because the old enrollment figures were used. **[06:20:44.340] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005388) But this time, we used the three **[06:20:48.060] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005389) -year estimate. So, the average growth of the enrollment so that we **[06:20:53.033] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005390) can approximate the level of increase for 2027. As for any variance that may arise, **[06:20:59.380] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005391) even if we have already applied this average growth rate, **[06:21:03.180] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005392) that is something that will have to be calculated with CHED and UNIFA so that we can **[06:21:08.520] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005393) identify the amount and the possible corresponding source, your honor. **[06:21:14.700] Rep. Renee Louise M. Co** (h2r5-turn-005394) Thank you po, Madam Chair. And syempre, tuloy-tuloyin namang BWM. Pagkabantayan ng representasyong ito yung **[06:21:20.920] Rep. Renee Louise M. Co** (h2r5-turn-005395) implementation ng RA 10931. At paano, syempre, pinupondohan **[06:21:25.540] Rep. Renee Louise M. Co** (h2r5-turn-005396) yung pagkakaroon ng libre legalidad abot kamay na edukasyon para sa kabataan. **[06:21:31.920] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005397) Just to add as well, your honor, Madam Chair, in relation to the almost 10 billion that we have released, the **[06:21:37.920] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005398) release actually has a small portion or small allowance that will allow CHED **[06:21:42.860] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005399) to entertain possible appeals from SUCs in case there will be some discrepancies. In terms of the enrollment being claimed. So that can be **[06:21:52.060] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005400) handled very well by CHED. And we maintain close coordination, your honor, to **[06:21:56.920] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005401) fully settle our FHE careers to our SUCs. **[06:22:01.540] Rep. Renee Louise M. Co** (h2r5-turn-005402) Thank you, Madam Chair. Last na lang po on confidential funds. Dahil may nirelease lang din po today, or a few days ago na article yung Rappler, detailing how even at the local government level, **[06:22:16.960] Rep. Renee Louise M. Co** (h2r5-turn-005403) meron ding increases in... confidential funds na nire-report ang mga LGUs. Is there an explanation for this? Bakit po dumadami yung mga pondong nire-request that confidentially ginagamit? Ayun nga po, bumabalik tayo doon sa prinsipyo na ideally, transparent yung mekanismo ng pag-report ng spending ng public funds, pero dumadami yung ganitong instances. **[06:22:47.220] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005404) Madam **[06:22:47.900] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005405) Chair, your honor, number one. May time po. **[06:22:50.340] Rep. Renee Louise M. Co** (h2r5-turn-005406) Thank you. **[06:22:51.620] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005407) On the confidential funds of LGUs, number one, meron pong **[06:22:55.800] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005408) guidelines na sinusunod ang ating mga local government units in the preparation of the respective **[06:23:01.840] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005409) LGU budgets. At in fact, **[06:23:05.620] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005410) meron pong limitation din po ang pagkakaroon ng confidential funds sa ating mga local government units dahil **[06:23:14.000] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005411) patid po natin that they also perform peace and order mandate. **[06:23:17.800] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005412) So meron po tayong issued na joint... Kabilang po ito doon sa issued joint circular on **[06:23:23.060] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005413) the limitation and use of confidential funds, kabilang po yung proper documentation na **[06:23:28.180] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005414) necessary to support the same. At sa atin pong mga local government units, **[06:23:33.380] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005415) kailangan pong ma-aprubahan ng **[06:23:35.700] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005416) kanilang respective local **[06:23:38.020] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005417) peace and order council, number one. **[06:23:40.780] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005418) Dapat po may covering local peace and order council approval, yung proposed allocation. Ngayon din, dahil ito po ay appropriation sa level ng... Dapat din po itong ma-aprubahan ng kanilang mga respective sanggunian, your honor, Madam Chair. **[06:23:57.340] Rep. Renee Louise M. Co** (h2r5-turn-005419) So does DBM look at these resolutions? **[06:24:03.200] Rep. Renee Louise M. Co** (h2r5-turn-005420) Meron po bang nakikitang trends? Bakit po ba dumadagdag yung spending? And sa dulo po ba nito, ano po bang pwedeng magawa pa ng DBM to ensure na **[06:24:14.180] Rep. Renee Louise M. Co** (h2r5-turn-005421) nagagamit sa tama, hindi nahulog sa maling paggasta ang confidential funds? **[06:24:20.700] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005422) Number one po, your honor, Madam Chair, at the level of the DBM, ang dumarating po sa amin for review and approval ng mga LGU budgets, ay yun pong para sa mga **[06:24:30.620] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005423) provinces and highly urbanized cities. Dahil po yung iba pong level under the local government code, **[06:24:36.880] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005424) meron pong iba't-ibang nagre-review. So for DBM, **[06:24:39.720] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005425) we review and approve the budgets of provinces and highly **[06:24:44.140] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005426) urbanized city at tinitingnan po natin sa ating pag-review yung **[06:24:48.300] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005427) kanila pong compliance sa iba't-ibang paratong budget. So yung parameters on local budgets, kapilang na **[06:24:54.109] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005428) po dyan yung limitation on the allocation for **[06:24:57.878] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005429) confidential fund. As to the utilization, **[06:25:00.520] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005430) your honor, we fully submit that it is within, nandoon na nga po sa Joint Circular, **[06:25:05.420] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005431) yun po kasing report ng actual na paggamit ng confidential fund ay hindi **[06:25:09.780] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005432) po sa DBM actually sinasubmit. **[06:25:12.360] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005433) It's being submitted to the Commission on Audit for their **[06:25:15.300] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005434) post-audit and determination whether the same is actually used in accordance. With the **[06:25:21.120] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005435) approved peace and order plan endorsed by the respective local peace and order councils of their LGUs, your honor. **[06:25:28.480] Rep. Renee Louise M. Co** (h2r5-turn-005436) So **[06:25:29.180] Rep. Renee Louise M. Co** (h2r5-turn-005437) to clarify, **[06:25:30.540] Rep. Renee Louise M. Co** (h2r5-turn-005438) siyempre labas na yung post **[06:25:34.160] Rep. Renee Louise M. Co** (h2r5-turn-005439) -allocation dahil ang COA po ang gumagawa. Pero prior po or during sa pag-submit po ng budget, maaari po bang tignan ng DBM at mag-disapprove ng **[06:25:46.400] Rep. Renee Louise M. Co** (h2r5-turn-005440) plan ng paggasta kung may na-flag? **[06:25:50.400] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005441) Your honor, Madam Chair, sa review po kasi ng mga regional offices ng DBM ng budget. **[06:25:54.860] Rep. Renee Louise M. Co** (h2r5-turn-005442) To clarify po, Madam Chair, we're also including din sana yung national government agencies, NGAs, sana, and hindi lang po LGUs. **[06:26:04.180] Rep. Renee Louise M. Co** (h2r5-turn-005443) In your answer, supposedly, Secretary. **[06:26:06.560] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005444) Your honor, Madam Chair, in evaluating, sorry po if I have to differentiate kasi magkaiba po kasi yung proseso. For the local government units, our regional offices that reviews local government units' budgets, **[06:26:20.340] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005445) primarily, ang tinitingnan po dito, well, number one, if it does not exceed the ceiling provided for under existing **[06:26:26.900] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005446) guidelines, and if these are properly supported **[06:26:30.320] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005447) by the requisite **[06:26:32.140] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005448) mentioned documents dun po sa ating joint circular. So one po yung ceiling, pangalawa po yung **[06:26:38.480] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005449) presence ng resolution endorsement ng **[06:26:41.000] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005450) local peace and order council, gayon din po **[06:26:44.100] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005451) yung supporting certification **[06:26:46.380] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005452) from the PNP chief regarding the peace and order situation, that actually necessitates yung **[06:26:52.480] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005453) pangangailangan po sa confidential fund ng isang LGU. **[06:26:55.680] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005454) So dun po sa level na yun pumapasok yung role ng DBM. **[06:26:58.880] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005455) Pagdating po sa national government agency, again, similarly, **[06:27:03.000] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005456) mandato po ng ahensya yung una nating tinitingnan, and as to amount, we have practically limited yung amount po ng confidential and intelligence funds to **[06:27:12.560] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005457) the NEP level, at hindi po tayo halos nagbigay or nag-entertain ng any request for increase or new confidential funds, na civilian agencies na lalo na po kung wala pong mandato na **[06:27:24.140] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005458) magsagawa ng intelligence, counterintelligence, or security operations, Your Honor. So **[06:27:28.920] Rep. Renee Louise M. Co** (h2r5-turn-005459) Madam Chair, ang naririnig ko po ba ay, correct me if I'm wrong, yes, may power ang DBM na gawin yun. Kung malabas po sa mandato, maaari niyang i-disprove yung **[06:27:39.520] Rep. Renee Louise M. Co** (h2r5-turn-005460) sinubmit na budget request, or para ma-include po sa national budget, **[06:27:45.620] Rep. Renee Louise M. Co** (h2r5-turn-005461) yung confidential expenses na gustong gamitin, gastahin. **[06:27:49.580] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005462) Yes, Your Honor. Okay, **[06:27:50.980] Rep. Renee Louise M. Co** (h2r5-turn-005463) thank you Madam Chair. My **[06:27:53.440] Rep. Renee Louise M. Co** (h2r5-turn-005464) next question po would be to DepDev, **[06:27:56.940] Rep. Renee Louise M. Co** (h2r5-turn-005465) in **[06:27:57.840] Rep. Renee Louise M. Co** (h2r5-turn-005466) relation po sa kanyang presentation **[06:27:59.480] Rep. Renee Louise M. Co** (h2r5-turn-005467) po **[06:28:00.680] Rep. Renee Louise M. Co** (h2r5-turn-005468) nila earlier. **[06:28:04.230] Rep. Renee Louise M. Co** (h2r5-turn-005469) This **[06:28:04.870] Rep. Renee Louise M. Co** (h2r5-turn-005470) was in the presentation earlier kung saan, taking off from the points of Representative Eli San Fernando, nakita po na the **[06:28:14.050] Rep. Renee Louise M. Co** (h2r5-turn-005471) economy remains heavily **[06:28:15.210] Rep. Renee Louise M. Co** (h2r5-turn-005472) reliant on consumption and services, constraining faster, more durable, and inclusive growth. **[06:28:22.450] Rep. Renee Louise M. Co** (h2r5-turn-005473) Na-mention din po ni PBBM sa kanyang SONA that **[06:28:26.630] Rep. Renee Louise M. Co** (h2r5-turn-005474) there will be a product of the, may product of a 23-member strong and US-led PAC-SILICA initiative, which **[06:28:34.430] Rep. Renee Louise M. Co** (h2r5-turn-005475) will accelerate industrial competitiveness and revitalize our economy. **[06:28:41.890] Rep. Renee Louise M. Co** (h2r5-turn-005476) So ang tanong po natin ng representation na ito, is **[06:28:46.490] Rep. Renee Louise M. Co** (h2r5-turn-005477) PAC-SILICA part of the industrial growth strategy, the broadening of sources of growth? Now, **[06:28:57.080] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-005478) if PAC-SILICA will involve the **[06:29:01.960] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-005479) industries like manufacturing of **[06:29:07.160] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-005480) say semiconductors, electronics, high-value manufacturing, **[06:29:14.247] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-005481) then indeed that's what would **[06:29:19.200] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-005482) be beneficial and be supportive of our industrialization. **[06:29:22.760] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-005483) But then again, recall that, as shared **[06:29:29.311] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-005484) by our colleagues earlier is **[06:29:31.676] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-005485) that this is still **[06:29:33.568] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-005486) an evolving **[06:29:34.514] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-005487) concept, no? **[06:29:36.600] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-005489) Wala pa namang mga specific industries **[06:29:43.500] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-005490) na nandun or companies, **[06:29:47.240] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-005491) no? **[06:29:47.520] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-005492) But clearly, **[06:29:49.160] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-005493) if it's about **[06:29:50.640] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-005494) setting up an industrial hub that **[06:29:53.860] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-005495) will create jobs, **[06:29:54.960] DEPDev Secretary Arsenio M. Balisacan** (h2r5-repair-turn-23394-v3-01) that will bring in the kind of technologies that will increase higher value or adding value to our local production, **[06:30:04.420] DEPDev Secretary Arsenio M. Balisacan** (h2r5-repair-turn-23394-v3-02) then that's what I meant or could be supportive of what I suggested earlier that we need to diversify the sources of growth. **[06:30:17.700] Rep. Renee Louise M. Co** (h2r5-turn-005502) Madam Chair, according to PBBM-SAête it **[06:30:21.620] Rep. Renee Louise M. Co** (h2r5-turn-005503) will be in part the Luzon Economic Corridor and it will be an advanceduary manufacturing and logistics center in the global AI and technology value chain. So I'm asking these questions because just yesterday, the **[06:30:34.780] Rep. Renee Louise M. Co** (h2r5-turn-005504) U.S. State Department recognized a leak of internal documents, including a draft letter to be addressed to dozens of countries. And it says that countries must pick sides in the artificial intelligence race between the U.S.-led Paxilica and China. Sabi ng draft, signature of the Paxilica declaration is not merely a membership subscription, but commitment, and that U.S. hopes to limit China's access to resources needed to develop increasingly sophisticated AI to be used for military and economic dominance. Madam Chair, ang tanong ko po, are **[06:31:09.680] Rep. Renee Louise M. Co** (h2r5-turn-005505) we signing up to be a pawn in an AI development race by competing superpowers? Is that what's at play here, **[06:31:16.880] Rep. Renee Louise M. Co** (h2r5-turn-005506) or is it quote-unquote development? **[06:31:21.720] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-005507) What we are pushing is development for the Philippines. **[06:31:27.960] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-005508) And whether it is that **[06:31:31.020] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-005509) is China or that's the U.S. or that's Europe or that's U.K. for so long as they **[06:31:36.740] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-005510) come in and that **[06:31:39.240] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-005511) is consistent with our interest and **[06:31:43.220] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-005512) meeting our objectives. So it is, I **[06:31:49.380] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-005513) define it as creating opportunities for Filipinos. **[06:31:55.000] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-005514) Then those kind of... Those kind of investment would be encouraged. So **[06:32:01.240] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-005515) we look at it as a part of our strategy **[06:32:07.760] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-005516) to industrialize the country. **[06:32:12.000] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-005517) And **[06:32:12.900] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-005518) the bottom line is they improve the mix of our industries **[06:32:19.980] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-005519) so that we are able to provide high quality jobs. For Filipinos. **[06:32:29.560] Rep. Renee Louise M. Co** (h2r5-turn-005520) Madam Chair, a final manifestation perhaps in response to the answer of our good Secretary. I have to ask, development for whom? Development at what cost? **[06:32:41.480] Rep. Renee Louise M. Co** (h2r5-turn-005521) Because **[06:32:41.880] Rep. Renee Louise M. Co** (h2r5-turn-005522) sa dulo po nito, mukhang kung the United States who leads this initiative will **[06:32:49.080] Rep. Renee Louise M. Co** (h2r5-turn-005523) be making this kind of ultimatum, pick a side. And sa **[06:32:54.360] Rep. Renee Louise M. Co** (h2r5-turn-005524) dulo din nito, ang pagtatayo ng hub ay marami pa pong questions kung sino pa ang magbe-bear ng cost na ito—land-wise, environmental-wise, electricity **[06:33:03.680] Rep. Renee Louise M. Co** (h2r5-turn-005525) -wise, water-wise, even the rights of indigenous peoples kung paano po ito marirespeto. These are questions and kailangan pong itimbang kung kaya at gusto ba natin at makakaambag po ba sa develop natin or development for others yung pagsama natin sa Paxilica. That's all, Madam Chair. I'm out of time. But nonetheless, these are questions naman nga na pending. Anyway, may mga stances naman po ang representation na ito when it comes to paano pa natin may ensure yung development for the people. Thank you, Madam Chair. **[06:33:35.800] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005526) Thank you, Representative Renee Co. **[06:33:38.720] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005527) Is there anyone else who wishes to interpellate our agencies? **[06:33:44.260] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005528) If not, I'll reserve. I haven't asked any question. **[06:33:53.500] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005529) Okay, before I ask my questions, Representative Javi Benitez. **[06:34:01.390] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-005530) Madam Chair, thank you so much. Pasensya lang. Alam ko ang haba ng araw na ito. But gusto **[06:34:06.470] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-005531) lang itanong para sa ating **[06:34:08.630] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-005532) Honorable Secretary of DEPDev. **[06:34:13.250] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-005533) Honorable Secretary, kapwa **[06:34:15.870] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-005534) ako po yung ginawang Technical Working Group Head for the Circular Economy. **[06:34:19.750] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-005535) And just to give some context that July **[06:34:24.010] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-005536) and August, we **[06:34:25.930] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-005537) felt that the flood water is in our streets and floating in it our own garbage. **[06:34:31.490] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-005538) So the trash that we... collected sa pumping stations had **[06:34:35.930] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-005539) 526 tons and **[06:34:38.330] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-005540) 600 tons of garbage in five days. **[06:34:42.290] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-005541) So I know we spent billions on flood control and plastic disables, the very pumps meant to save. **[06:34:49.290] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-005542) And I want to share that truth, that **[06:34:53.590] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-005543) the Philippines is the world's number one contributor of **[06:34:56.750] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-005544) plastic waste to the ocean. **[06:34:59.150] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-005545) And **[06:35:01.130] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-005546) that in **[06:35:01.970] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-005547) 2021, It was found by Science Advances that **[06:35:05.990] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-005548) we account for 36% of **[06:35:08.590] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-005549) the plastics that rivers carry into the sea. **[06:35:11.090] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-005550) And that Pasig River is the single most polluting river on the planet, **[06:35:15.010] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-005551) about 63,000 tons a year, and 7 of the world's top 10 hour hours. **[06:35:23.650] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-005552) So this is also money we are throwing away because the World Bank found that we lose upwards to 890 **[06:35:28.790] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-005553) million US dollars a year in material value because we discard plastic instead of recycling it. **[06:35:35.290] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-005554) We recycled only 28% of our key plastics. **[06:35:38.510] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-005555) So this representation has a threshold question for the Circular Economy Bill, **[06:35:42.070] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-005556) which I again have the honor of being the Technical Working Group Chair. **[06:35:46.870] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-005557) So which agency should chair the Interagency Council? **[06:35:50.210] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-005558) The instinct is DNR, but **[06:35:52.550] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-005559) the Circular Economy is not a waste program. It's a growth strategy about resource productivity and **[06:35:58.730] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-005560) industrial competitiveness. **[06:36:00.290] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-005561) If DNR chairs it, we will treat it as just a waste problem. If **[06:36:04.910] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-005562) DepDev chairs it, we treat it as an **[06:36:07.410] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-005563) economic strategy for **[06:36:09.770] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-005564) our country. **[06:36:13.480] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-005565) So DepDev cannot say that this is not just a mandate. It was **[06:36:17.100] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-005566) NEDA, and now DepDev, that wrote the Philippine Action Plan for Sustainable Consumption and Production in 2019. **[06:36:24.940] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-005567) And it's also DepDev that carries Circular Economy in the Philippine Development Plan under RA 12145. **[06:36:31.200] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-005568) And its charter now expressly covers long-term strategic planning across the whole economy. **[06:36:36.980] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-005569) The **[06:36:37.500] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-005570) Extended Producer Responsibility Law helps, but it only covers big companies and **[06:36:42.140] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-005571) only chases recovery, **[06:36:43.420] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-005572) not reduction. And it's not yet a circular economy. **[06:36:47.400] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-005573) So let me ask on record, Mr. Secretary, **[06:36:50.120] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-005574) kasi **[06:36:50.960] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-005575) nagpadala po kami every Technical Working Group, apat na beses po. Ang **[06:36:55.560] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-005576) lagi pong sinasabi sa amin is ayaw po ng DepDev mag-chair po. And **[06:37:00.020] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-005577) nagiging **[06:37:02.920] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-005578) yung mga stakeholders namin nagsasabi, **[06:37:06.960] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-005579) So, **[06:37:07.560] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-005580) Mr. Secretary, will DepDev accept the chairmanship of the Circular Economy Council? **[06:37:12.720] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-005581) If not, why not? And what would it take for you to say yes, Mr. Secretary? **[06:37:22.740] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-005582) If it is, Mr. **[06:37:27.600] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-005583) Chair, **[06:37:28.100] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-005584) if **[06:37:30.420] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-005585) it's **[06:37:31.760] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-005586) mainstream as part of our mandate, **[06:37:42.800] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-005587) if it has clear **[06:37:45.200] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-005588) implications **[06:37:47.160] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-005589) for our development **[06:37:50.540] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-005590) planning, **[06:37:53.180] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-005591) monitoring, and then **[06:37:57.040] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-005592) I think we could **[06:37:58.000] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-005593) consider **[06:38:00.380] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-005594) that. But I **[06:38:01.220] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-005595) think over **[06:38:04.400] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-005596) the last couple of years, **[06:38:10.400] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-005597) there **[06:38:11.160] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-005598) have been so many... additional tasks given to the agency without **[06:38:16.320] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-005599) corresponding **[06:38:17.640] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-005600) support **[06:38:21.080] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-005601) in terms of manpower, for example. **[06:38:24.980] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-005602) And that's basically our constraint. **[06:38:27.580] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-005603) We've become the Secretariat for **[06:38:29.820] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-005604) Trabaho Para sa Bayan, **[06:38:33.620] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-005605) the **[06:38:33.980] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-005606) latest on the Innovation Council, **[06:38:37.380] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-005607) the... **[06:38:37.720] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-005608) Ang **[06:38:39.060] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-005609) dami ho. **[06:38:39.880] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-005610) Na... **[06:38:42.680] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-005611) bagong batas na **[06:38:44.180] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-005612) tinatapon **[06:38:48.160] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-005613) sa amin to **[06:38:49.860] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-005614) serve as the Secretariat without **[06:38:51.820] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-005615) complementary support staff **[06:38:56.560] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-005616) or structure. **[06:38:58.480] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-005617) If you give us, if you put in that law, **[06:39:02.720] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-005618) the complementary support **[06:39:05.580] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-005619) staff, **[06:39:07.700] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-005620) then it would be feasible for us to **[06:39:13.080] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-005621) absorb that responsibility, **[06:39:16.420] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-005622) Mr. Chair. **[06:39:18.920] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-005623) Madam Chair, nakita po natin ang **[06:39:21.800] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-005624) pwedeng gawin na pwede **[06:39:24.540] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-005625) nating... ang ating mga batas, which is ang EPR, PENCAS, circular economy, at alam ko mayroon ding carbon credits na kailangan pong i-synthesize. So with that, Madam Chair, we will ensure that the bill will... include... **[06:39:42.580] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-005627) that... **[06:39:43.900] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-005628) I'm synthesizing all of this together but also requiring that the bill be funding few levels of plantilla positions for the Circular Economy Council. So with that, maraming salamat po, Madam Chair. And sana **[06:40:00.740] Rep. Javier Miguel Lopez Benitez** (h2r5-turn-005629) po ang ating mga colleagues ay mag-focus din dito dahil tayo ay number one sa ating pag-pollute ng plastic sa buong mundo. Thank you. **[06:40:15.200] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005630) Thank you, Representative Javi Benitez. If you would allow me to ask questions, I haven't asked questions all day. So I just want to pose a few questions to the DBCC family. And one of the main intentions of doing the DBCC is for us to be able to check whether the assumptions underlying the sources of financing that feed into the BESF are sound. So medyo doon lang po ako magfo-focus in the discussion. **[06:40:44.120] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005631) So... I would like to pose the question whether **[06:40:48.740] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005632) the DBM family or the DOF family would answer my question. Just going back to the 2026 BESF, may I ask, just to validate, what was the underlying assumption in terms of the collections? **[06:41:07.300] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005633) So the revenues? **[06:41:09.920] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005634) Sorry, I'm setting the context lang for my question for the 2026 BESF. So **[06:41:22.310] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005635) out of the 6.8 trillion that was in the 2026 budget **[06:41:30.710] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005636) or NEP, what **[06:41:32.430] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005637) proportion of that **[06:41:33.660] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005638) would come from collections as **[06:41:39.990] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005639) a nominal value? **[06:41:44.000] DOF Undersecretary Karlo Fermin S. Adriano** (h2r5-turn-005640) Madam Chair, for the revenues for 2026, the emerging revenue is 4.8 trillion pesos for this year. **[06:41:53.540] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005641) For the **[06:41:54.780] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005642) BESF? So, going back to the 2026 BESF, the 4.8 is actually not— **[06:42:01.620] DOF Undersecretary Karlo Fermin S. Adriano** (h2r5-turn-005643) For the 2026 BESF, it is 4.983. **[06:42:06.520] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005644) There you go. Yeah. That's the figure that I have here. So may I, for the record, ask the DOF family, what is the actual—sorry, not yet actual—but what is the revised projection for the collections in 2026? **[06:42:22.660] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005645) So, in effect, that would feed into your projections for the 2027 BESF? **[06:42:27.040] DOF Undersecretary Karlo Fermin S. Adriano** (h2r5-turn-005646) For 2026, based on the 2027 BESF document submitted to the **[06:42:33.500] DOF Undersecretary Karlo Fermin S. Adriano** (h2r5-turn-005647) committee, it's 4.807 trillion **[06:42:37.020] DOF Undersecretary Karlo Fermin S. Adriano** (h2r5-turn-005648) pesos for this year. **[06:42:38.740] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005649) Thank you, Usec. Karlo. I use that to set the context for my questioning. Because based **[06:42:45.980] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005650) off that, there's roughly 180 billion in shortfall between the assumed level of collections in the 2026 BASF. And the projected **[06:42:57.610] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005651) actual, projected actual? Projected collections for 2026. So yun po siguro yung tanong ko. Because I believe **[06:43:10.690] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005652) this has been asked by one of my colleagues before. But that 180 billion peso shortfall, is that primarily driven by, I **[06:43:20.270] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005653) guess, which lever? Is it tax revenues? Non-tax revenues? Where does the shortfall lie? What was the main driver for the 180 billion shortfall? **[06:43:31.360] DOF Undersecretary Karlo Fermin S. Adriano** (h2r5-turn-005654) Madam Chair, it's mainly from the tax revenues, which is highly correlated to the macro assumptions, macroeconomic assumptions. Is **[06:43:40.700] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005655) it correct? I would assume because you have different components within your revenue collections, given that it's tied with the macroeconomic assumptions, the current circumstances, we're looking at a dip in your consumption driven. Taxes. **[06:43:56.900] DOF Undersecretary Karlo Fermin S. Adriano** (h2r5-turn-005656) Yes, Madam Chair. So just to provide some context, ginawa po natin yung ating NEP last year, **[06:44:04.000] DOF Undersecretary Karlo Fermin S. Adriano** (h2r5-turn-005657) basically June. **[06:44:06.300] DOF Undersecretary Karlo Fermin S. Adriano** (h2r5-turn-005658) So wala pa po yung mga crisis na dinadanas po natin ngayon. Kaya po, **[06:44:10.760] DOF Undersecretary Karlo Fermin S. Adriano** (h2r5-turn-005659) when we reviewed the macro assumption, there were some revisions, and because of those revisions, bumaba rin po yung projected revenues for the year. **[06:44:19.020] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005660) Thank you, Usec. Karlo. May I ask, out of the 180 billion shortfall, what is the biggest contributor to the shortfall? **[06:44:23.764] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005661) we **[06:44:24.007] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005662) can do to reduce the **[06:44:25.680] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005663) What shortfall? is the biggest **[06:44:27.340] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005664) contributor to the shortfall? Among **[06:44:29.860] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005665) the different types of sources, tax revenues, non-tax revenues, within tax revenues, are we looking at government remittances, sorry, government expenditure related revenues or taxes, **[06:44:44.500] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005666) VAT? **[06:44:47.370] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005667) What is the biggest contributor to that 180 billion shortfall? **[06:44:54.750] DOF Undersecretary Karlo Fermin S. Adriano** (h2r5-turn-005668) Madam Chair, one of the biggest contributor in the decline in tax revenue, are the consumption taxes. One **[06:45:02.010] DOF Undersecretary Karlo Fermin S. Adriano** (h2r5-turn-005669) of which will be the VAT, **[06:45:03.730] DOF Undersecretary Karlo Fermin S. Adriano** (h2r5-turn-005670) wherein if you take a look, the BSF 2026 and the BSF 2027, that's around 175 billion **[06:45:11.930] DOF Undersecretary Karlo Fermin S. Adriano** (h2r5-turn-005671) shortfall compared to what was submitted last year. **[06:45:15.910] DOF Undersecretary Karlo Fermin S. Adriano** (h2r5-turn-005672) So those are all related to consumption taxes and all related to macro economic assumptions. **[06:45:22.910] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005673) Thank you, Usec. Karlo. Again, it's as expected, given the fuel crisis **[06:45:53.970] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005674) context and situation. **[06:45:58.570] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005675) nakikita naman po natin na mayroong ganong real possibility even until 2027 so I just would like to understand from the DBCC family how **[06:46:08.390] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005676) that sort of context, that macroeconomic context as well as our experience in a **[06:46:16.470] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005677) very sizable shortfall between the 2026 target, sorry 2026 estimate and yung actual fed into how you develop the assumptions for the 2027 BSF. So I'm looking at the BSF here **[06:46:36.370] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005678) so **[06:46:37.130] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005679) is it correct that for the 2027 BSF the assumed, sorry the projected total revenues is 5.2 trillion **[06:46:48.890] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005680) pesos? **[06:46:49.710] DOF Undersecretary Karlo Fermin S. Adriano** (h2r5-turn-005681) Yes Madam Chair, you're correct. **[06:46:51.930] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005682) Based off your presentation earlier today, the 5.2 trillion pesos, if you compare it to the 4.8 trillion pesos as is the revised target for 2026, represents an 8.3 **[06:47:08.670] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005683) growth. Is that correct? **[06:47:12.410] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005684) Sa ano po? In your presentation earlier today. **[06:47:18.110] DOF Undersecretary Karlo Fermin S. Adriano** (h2r5-turn-005685) Yes Madam Chair, you're correct. 8.3 growth based **[06:47:21.990] DOF Undersecretary Karlo Fermin S. Adriano** (h2r5-turn-005686) on the 4.8 trillion revenues. **[06:47:24.390] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005687) Thank you. **[06:47:25.910] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005688) So looking at the components of that 5.2 trillion, sorry mahihimay lang ako ng konti. I'm seeing here that there is an assumption that there would be a **[06:47:38.970] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005689) 100, roughly 180 billion increase in the taxes on domestic goods and services, which was the main driver for the shortfall for 2026. So may I know, given that we have **[06:47:53.730] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005690) already seen that in 2026, that was the main driver of the shortfall, why is it that in 2000, that when we made the, sorry, when you made the projections for the 5.2 trillion, why did we assume that taxes on domestic goods and services would increase by 180 billion? **[06:48:13.550] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005691) I'm just doing a **[06:48:16.110] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005692) what do you, like a **[06:48:18.030] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005693) what's the term? **[06:48:21.110] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005694) Stress test on the levers that feed into the 5.2 trillion assumption. **[06:48:27.830] DOF Undersecretary Karlo Fermin S. Adriano** (h2r5-turn-005695) Madam Chair, **[06:48:29.850] DOF Undersecretary Karlo Fermin S. Adriano** (h2r5-turn-005696) our data shows that for instance for VAT, if you compare the **[06:48:34.810] DOF Undersecretary Karlo Fermin S. Adriano** (h2r5-turn-005697) 2027 projection **[06:48:37.850] DOF Undersecretary Karlo Fermin S. Adriano** (h2r5-turn-005698) today compared to last year, it's around 243 billion lower. **[06:48:46.170] DOF Undersecretary Karlo Fermin S. Adriano** (h2r5-turn-005699) So, in terms of sales taxes, VAT, and licenses, basically the consumption taxes, it's actually 250 billion lower compared **[06:48:55.490] DOF Undersecretary Karlo Fermin S. Adriano** (h2r5-turn-005700) to the BSF 2026 numbers. **[06:49:00.410] DOF Undersecretary Karlo Fermin S. Adriano** (h2r5-turn-005701) Madam Chair, we can **[06:49:01.550] DOF Undersecretary Karlo Fermin S. Adriano** (h2r5-turn-005702) submit this. **[06:49:03.530] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005703) I'd like to refer to page **[06:49:05.990] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005704) 463 of the BSF. **[06:49:08.530] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005705) So, in 2026, **[06:49:11.270] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005706) the taxes of domestic goods and services totaled to in the 2026 program totaled to 1.57 trillion. **[06:49:20.790] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005707) But in the 2027 projection, **[06:49:24.230] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005708) the **[06:49:24.650] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005709) assumption built in is that taxes on domestic goods and services would be 1.75 trillion. **[06:49:31.030] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005710) So, that represents a 180 billion increase. **[06:49:34.930] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005711) So, yun lang siguro yung gusto kong i-challenge at i-stress test if we've already seen in 2026 that given the macroeconomic context and situation, may shortfall tayo ng 2026. Why is it that we're assuming that there would be a 180 billion increase? Come 2027? **[06:49:58.630] DOF Undersecretary Karlo Fermin S. Adriano** (h2r5-turn-005712) Madam Chair, I have to check your numbers. But based on what I have right now, for instance, for tax revenue, given the lower base in 2026, tax revenue will be short by around 240 billion compared to the BSF 2026 **[06:50:18.070] DOF Undersecretary Karlo Fermin S. Adriano** (h2r5-turn-005713) submission. **[06:50:19.330] DOF Undersecretary Karlo Fermin S. Adriano** (h2r5-turn-005714) This is for 2027. **[06:50:22.640] DOF Undersecretary Karlo Fermin S. Adriano** (h2r5-turn-005715) And again, based on our data, for instance, VAT is lower by around 243 billion in 2027. This is due to the changes in the macro assumptions plus **[06:50:32.990] DOF Undersecretary Karlo Fermin S. Adriano** (h2r5-turn-005716) the base effect in 2026. **[06:50:35.810] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005717) Usec. Karlo, sorry, it's table C1 in **[06:50:39.090] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005718) the BSF page **[06:50:40.530] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005719) 463. **[06:50:45.240] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005720) It shows the breakdown of the different components that total 5.2 trillion pesos. **[06:50:53.580] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005721) Yun siguro, yun yung malaking difference because I'm trying to see how it would be, be possible to increase total revenues from 4.8 trillion to 5.2 trillion. So that's a 400 billion peso increase. So I'm trying to see where we're **[06:51:10.380] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005722) assuming the growth would come from. **[06:51:13.320] DOF Undersecretary Karlo Fermin S. Adriano** (h2r5-turn-005723) Madam Chair, I think this is the year-on-year change. **[06:51:17.380] DOF Undersecretary Karlo Fermin S. Adriano** (h2r5-turn-005724) So for instance, for **[06:51:21.040] DOF Undersecretary Karlo Fermin S. Adriano** (h2r5-turn-005725) 2026, it is projected to be at 1.574 **[06:51:25.160] DOF Undersecretary Karlo Fermin S. Adriano** (h2r5-turn-005726) trillion. **[06:51:26.720] DOF Undersecretary Karlo Fermin S. Adriano** (h2r5-turn-005727) And in 2027, it will grow to 1.751 trillion. This is because you have a nominal growth, nominal GDP growth and other macro assumptions. So there will be **[06:51:38.300] DOF Undersecretary Karlo Fermin S. Adriano** (h2r5-turn-005728) the usual growth in collection from these items. But if you compare it to the BSF 2026 numbers, it **[06:51:47.600] DOF Undersecretary Karlo Fermin S. Adriano** (h2r5-turn-005729) should be lower. **[06:51:51.470] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005730) So despite the situation, despite the updated projections and assumptions, we're still expecting 180 billion increase. In taxes on domestic goods and services? **[06:52:03.670] DOF Undersecretary Karlo Fermin S. Adriano** (h2r5-turn-005731) Yes, Madam Chair, because in terms of nominal GDP that came from the debt-debt assumption, we will still be growing by **[06:52:13.070] DOF Undersecretary Karlo Fermin S. Adriano** (h2r5-turn-005732) around 9 in 2027. **[06:52:19.810] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005733) Okay. So, sorry, it's like ours. So it's regardless of what **[06:52:25.510] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005734) happens with all the external volatilities, it's **[06:52:29.250] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005735) still going to be the same projection. **[06:52:31.890] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005736) I **[06:52:32.510] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005737) guess **[06:52:33.030] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005738) this is what is being referred to is in nominal terms, right? **[06:52:37.830] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005739) Is it in nominal terms? In nominal **[06:52:39.150] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-005740) terms, yeah. The projections and the revenue are in nominal terms. The **[06:52:43.590] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-005741) projection and growth are in real terms. **[06:52:46.310] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005742) Percentage. **[06:52:48.510] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-005743) Now, I think that happens because **[06:52:52.210] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-005744) in 2026, we're assuming and the **[06:52:56.130] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-005745) revenue forecast is partly **[06:53:00.510] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-005746) based on the assumption that the economy for 2026 will grow only at 3.5 to 4.5% in real terms. **[06:53:08.650] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-005747) Whereas, we are assuming that for 2027, **[06:53:12.470] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-005748) our economy will grow at **[06:53:14.610] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-005749) 5 to 6 in real terms. In nominal terms, **[06:53:17.970] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-005750) you add another 5 or 6 for inflation to that. So that's **[06:53:21.210] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-005751) more or less like a 10 **[06:53:23.410] DEPDev Secretary Arsenio M. Balisacan** (h2r5-turn-005752) increase. **[06:53:26.470] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005753) I'm looking at the slide again from earlier today. So if you would, that's actually consistent with what SecRC said. So, if you look at the growth in tax revenues, revenues alone, that's a 9.21 increase between 2027 and 2026. So, **[06:53:41.210] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005754) okay. **[06:53:43.070] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005755) And then, let's move to another component, which is the privatization revenues. **[06:53:50.290] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005756) So, the assumption built into the 2027 projection is that there would be 101.5 billion in **[06:53:59.050] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005757) privatization revenues. Which, if you would look at it historically, in 2025, the actual revenues only stand at 2 **[06:54:09.410] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005758) billion. **[06:54:10.130] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005759) In 2026, 38 billion. Then, in 2027, 101.5 billion. So, again, that is a big **[06:54:20.270] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005760) contributor to the 400 billion increase. So, I would just like to ask our DOF family as to where **[06:54:28.570] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005761) that assumption came from. **[06:54:35.260] DOF Secretary Frederick D. Go** (h2r5-turn-005762) We have several privatization efforts that are ongoing, **[06:54:39.980] DOF Secretary Frederick D. Go** (h2r5-turn-005763) probably the most publicized in the media recently, **[06:54:44.380] DOF Secretary Frederick D. Go** (h2r5-turn-005764) SEMIRARA. **[06:54:45.860] DOF Secretary Frederick D. Go** (h2r5-turn-005765) We also have the privatization of the CBK of **[06:54:50.760] DOF Secretary Frederick D. Go** (h2r5-turn-005766) 36 billion that we **[06:54:53.840] DOF Secretary Frederick D. Go** (h2r5-turn-005767) privatized actually in **[06:54:55.560] DOF Secretary Frederick D. Go** (h2r5-turn-005768) previous years, but we will only get the money next year. **[06:54:58.940] DOF Secretary Frederick D. Go** (h2r5-turn-005769) So, other than 100, we're going to get 36 from CBK, and then there's the SEMIRARA, as well as other projects that we are looking at. **[06:55:07.520] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005770) So, Sekdek, just, wanted to test it because this is the highest it's ever been. This is three times the actual **[06:55:16.060] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005771) privatization revenues in previous years. So, medyo staggering looking at the assumptions and looking at the historical revenues from privatization. Medyo stand out po talaga yung 101 billion. So, we just wanted to test whether, again, I'm just doing this stress test because we all know what happens when there's a shortfall between the sources of financing as **[06:55:42.180] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005772) what you call this, as what feeds into the BSF versus the actual. Nakakaroon po ng cash management issues come implementation time. So, I'm just stress testing the different assumptions that feed into the BSF sources of financing. **[06:55:59.460] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005773) Sekdek? **[06:56:00.340] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005774) I'm **[06:56:00.940] DOF Secretary Frederick D. Go** (h2r5-turn-005775) going to say, totally share your sentiment. **[06:56:03.800] DOF Secretary Frederick D. Go** (h2r5-turn-005776) The pressure is on me when **[06:56:06.900] DOF Secretary Frederick D. Go** (h2r5-turn-005777) 100 billion was put in the privatization. **[06:56:11.160] DOF Secretary Frederick D. Go** (h2r5-turn-005778) So, I'm on your side. **[06:56:15.400] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005779) Thank you, Sec. Deck. Actually, I also want to, because the problem is, iyon po kasi talaga iyong nangyari. When there's, for example, in 2026, a 180 billion shortfall between what was put into the BESF and what is projected to be collected this year, ang hirap po i-bridge noong gap. So, I know it's a joint headache for both the DOF and the DBM on how to manage it from a cash management standpoint. So, I just want to make sure po that as much as possible, we would not have that sort of shortfall in the 2027 budget. So, please bear with me po. Sorry, Sec. I just wanted to do **[06:57:00.240] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005780) a stress test because I was going through scrutinizing the components of the BSF. So, yun lang po. Again, I also want to make sure na hindi po sasakit ang ulo ni SekDec at saka ni SekKim come 2027 once we implement this budget. But, yeah, **[06:57:17.940] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005781) actually that actually **[06:57:21.860] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005782) suffices for me. Thank you for explaining to me that it's tied to the nominal growth, that growth rate of the GDP as projected by the **[06:57:32.340] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005783) DBCC. So, **[06:57:33.500] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005784) okay. **[06:57:35.540] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005785) Next question. Sorry po. Sek, Kim, just wanted to ask, given that, given our experience in the 2026 budget where there is that huge **[06:57:46.420] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005786) shortfall, again, 180 billion, I keep on repeating that, do we have contingencies built into **[06:57:53.900] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005787) the budget to be able to **[06:57:56.920] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005788) respond quickly to extraordinary circumstances? For example, this year, it's **[06:58:03.240] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005789) the fuel crisis. And meron pang upcoming na sana hindi na naman talaga mangyari sa awan na Diyos. But, if the El Nino does materialize, that would require **[06:58:16.900] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005790) resources that were not planned for. We do have the NDRM, we have the NDRRMF, we have contingency funds. But, **[06:58:24.980] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005791) I guess the contingency funds that were built into the 2026 budget were not, **[06:58:30.980] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005792) we weren't anticipating this much of an external shock. So, the question is, for the 2020, 27 budget, **[06:58:39.960] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005793) do we have those contingencies built into the NEP? **[06:58:44.380] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005794) Madam Chair, aside from the lump sums that you have mentioned, the number one for **[06:58:48.820] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005795) El Niño, it's something that we are also preparing for as early as now. Under UPLIFT, there are funds coming out from savings generated from NBC 602-603 that are actually intended for DA in preparation for El Niño, at least in anticipation. **[06:59:07.760] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005796) So, in fact, we have some **[06:59:10.240] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005797) allotment releases for them to already start assisting farmers in preparation for the upcoming El Niño. So, that's something that we are **[06:59:20.240] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005798) taking action as early as now. **[06:59:23.780] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005799) If and when there is, of course, we don't want another oil crisis to happen, what we always say is that, number one, **[06:59:31.860] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005800) it's the very same line items of expenditures of each of the agencies that we are utilizing right now. It's not an extraordinary new item. So, those items are actually flexible to respond if needed. So, more of baka kailangan lang natin i-frontload, mag-prioritize ng beneficiaries among many others. But, of course, we still have that option na **[06:59:55.540] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005801) just like what we did under NBC 602-603, **[06:59:59.660] Acting DBM Secretary Kim Robert C. De Leon** (h2r5-turn-005802) we can also reprioritize during budget execution, probably defer some other activities, if there is a need to prioritize some other interventions to assist those who are most vulnerable or those who need it the most. **[07:00:16.860] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005803) Thank you, Sec. Kim. Sorry, just to pose a question to Ma'am Sharon. Sorry po. And Sec. Deck, so in cases like that, like when I **[07:00:26.020] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005804) don't know whether— **[07:00:29.600] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005805) Hindi, okay lang. Sige. **[07:00:31.620] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005806) Sorry. I've been working with the DOF for a long time, in their budget and with all the ways and means measures. So, sige. I won't ask it anymore. But siguro iyon lang, we need to be able to balance lang. In cases where there are shortfalls, di ba, we need to strike the balance between the need to borrow to fill the gap versus just managing it, seeing what we can defer. So, iyon lang naman. I know we have the best economic team to be able to do that. But again, for the BESF—sorry, for the 2027 budget—sana as much as possible, we don't have that huge, **[07:01:16.480] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005807) that big of a shortfall as is the case for 2026. So, I just wanted to make sure that the assumptions are sound and also we have contingencies built in place if that does happen. **[07:01:32.360] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005808) Okay. **[07:01:34.580] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005809) Yeah. **[07:01:35.840] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005810) Wala na yung questions, I guess. I feel like tayo na lang yung **[07:01:40.580] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005811) I believe that work has been suspended. For six hours already since we, is it, or more. So, again, **[07:01:51.240] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005812) ha? **[07:01:53.240] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005813) Nine hours? Twelve nun ba nag-suspend? So, 9 a.m.? **[07:01:58.420] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005814) So, we've been working for 12 hours after the suspension was announced. So, again, **[07:02:05.360] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005815) I would like to take **[07:02:07.740] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005816) this opportunity to express our gratitude to our DBCC family. Of course, to the DEPDev family headed by our Honorable Secretary Arsenio Balisacan; to our DBM family headed by Secretary Kim Robert de Leon; to our DOF family headed by Secretary Frederick Go; to our BSP family headed by Governor Eli Remolona. I really appreciate him taking the time earlier today. Thank you to everyone for staying for 12 more hours after the work suspension was announced. And thank you for answering all the queries of our **[07:02:52.120] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005817) distinguished colleagues in the House. That was really helpful in helping us understand the macroeconomic assumptions that fed into the development of the 2027 National Expenditure Program. So, excited na nagpa-pack up na lahat? **[07:03:08.880] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005818) Sure kayo wala na kaming tanong? **[07:03:11.780] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005819) Medyo ang dami pa namin dito. **[07:03:15.040] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005820) We would also like to thank, of course, our colleagues in the House for your very valuable questions. It was very helpful for all of the other members for us to be able to understand the questions, the reservations with regard to the budget. And ito pa lang naman pa, panimula pa lang po natin ito. This is the first day of two months of budget deliberations for the House. And we thank our partners in the Executive Branch. We thank our colleagues in the House for making this briefing of the DBCC a very fruitful one for everyone. So, before we end, **[07:04:00.160] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005821) we need to make a motion to formally terminate the DBCC briefing, kasi pag hindi po natin ginawa ito, babalik pa tayo sa mga susunod na araw. So, with that, may I request Senior Vice Chair Abet Garcia to please give the necessary motion. **[07:04:17.040] Rep. Albert S. Garcia** (h2r5-turn-005822) Thank you very much, Madam Chair. Madam Chair, may **[07:04:20.420] Rep. Albert S. Garcia** (h2r5-turn-005823) I move that we terminate the budget briefing of **[07:04:23.520] Rep. Albert S. Garcia** (h2r5-turn-005824) the DBCC. **[07:04:25.320] Rep. Albert S. Garcia** (h2r5-turn-005825) I so move, Madam Chair. **[07:04:26.880] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005826) Any second? **[07:04:28.300] Committee participant (seconding member)** (h2r5-turn-005827) Second. **[07:04:31.020] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005828) There is—nakangiti na kayo lahat. Hindi pa ako nag-rule. But ayan, there is a motion to terminate the budget briefing of the Development Budget Coordination Committee, or the DBCC. It has been duly seconded. The motion is carried. **[07:04:49.820] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005829) Thank you, po. **[07:04:54.320] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005830) One more. Last motion na po. We promise. **[07:04:57.900] Rep. Albert S. Garcia** (h2r5-turn-005831) Madam Chair, I **[07:04:59.940] Rep. Albert S. Garcia** (h2r5-turn-005832) move that we suspend the committee proceedings and resume on August 24, **[07:05:05.980] Rep. Albert S. Garcia** (h2r5-turn-005833) 2026, 9 a.m. **[07:05:08.660] Rep. Albert S. Garcia** (h2r5-turn-005834) I so move, Madam Chair. **[07:05:10.300] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005835) And just to clarify po, there were committee briefings that were originally scheduled for tomorrow, but in light of the work suspension because of the inclement weather, we will be rescheduling the hearings to next Monday, August 24. So, for the— **[07:05:32.700] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005836) Yes, so that would be... How many days? Monday pa lang ba ngayon? Hindi ko na alam. **[07:05:38.980] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005837) Monday, yes. **[07:05:40.740] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005838) Okay. **[07:05:41.620] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005839) So, there is a motion to suspend the committee proceedings and resume... August 24, 2026, 9 o'clock in the morning. It has been duly seconded. The motion is carried. **[07:05:55.940] Rep. Mikaela Angela B. Suansing** (h2r5-turn-005840) Thank you very much po, and please take care and stay safe on your way home. Medyo marami pa daw pong baha sa mga kalsada. So please do take care on your way home. And again, we truly appreciate your presence here. Thank you. Thank you very much po.