MANILA, Philippines – Senators are set to grill government agencies on underspending in the upcoming 2018 budget hearings.

Senate President Pro Tempore Ralph Recto said senators would cross party lines in asking agencies if they are on track in spending their allocations for 2017. This came after reports of underspending of the Duterte administration.

Recto said he was given a preliminary estimate that unreleased funds reached P185.8 billion in 2016, on top of unobligated allotments of P410.8 billion.

Recto said officials of the Duterte government have repeatedly criticized the Aquino administration for failing to spend an estimated P1 trillion – an accusation denied by the previous set of economic managers.

“Now that the shoe is on the other foot, it is time to ask this question: Have you solved the problem you have accused your predecessors of doing?” Recto said in a statement on Thursday, July 27.

“It’s a valid question because budget hearings are sessions where they’ll be asking for fund replenishment. So before we replenish, we should ask if they’ve been prompt in disbursing,” he added.

Underspending and tax reform

Recto said the agencies’ capacity to spend their budget would also affect the Senate’s discussions on the tax reform bill.

“We will be looking at both ledgers. Income and spending. Bakit ka hihingi ng ganito kalaking bagong revenues kung hindi mo naman nagagasta (Why would you ask for huge new revenues if you won’t spend it)?” Recto said.

“Ito naman ang matagal na naming sinasabi sa kanila (This is what we’ve been telling them). Can we not cut the frivolous expenses first so that we can reduce the number of new taxes you are asking for?” he said, citing the need to trim costs by holding government seminars inside offices and not in hotels and beach resorts.

President Duterte, in his 2nd State of the Nation Address on Monday, July 24, exerted pressure on the Senate to pass his tax measure in toto, even zeroing in on Senate ways and means committee chair Juan Edgardo Angara’s 2019 reelection.

Senators, however, are not keen on doing so, calling the Palace’s version as “anti-poor.” Some also questioned the need to impose higher taxes when the government has yet to spend its allocated funds. (READ: Senate won’t pass Malacañang’s version of tax reform bill)

Duterte has promised to lower personal income tax rates, in exchange of higher levy on automobiles, fuel, and sugar-sweetened beverages.

The Senate is also set to constitute a Committee of the Whole next week to discuss their concerns on the measure with the government’s economic managers. – Rappler.com