Section 72
SEC. 72. Effectivity. The provisions of this Act shall take effect on January one, nineteen hundred and ninety-four, unless otherwise provided herein. Approved, December 30,1993. MALACAÑANG Manila December 30,1993 THE HONORABLE SPEAKER LADIES AND GENTLEMEN OF THE HOUSE OF REPRESENTATIVES I have this day signed into Republic Act No. 7663 the General Appropriations Bill for Fiscal year 1994 (H.B. No. 10900), entitled "AN ACT APPROPRIATING FUNDS FOR THE OPERATION OF THE GOVERNMENT OF THE PHILIPPINES FROM JANUARY ONE TO DECEMBER THIRTY-ONE, NINETEEN HUNDRED AND NINETY-FOUR, AND FOR OTHER PURPOSES." I. GENERAL COMMENTS At the outset, allow me to acknowledge and make of record my wholehearted gratitude to the leaders and members of Congress for the precedent-setting passage in record time of the CY1994 General Appropriations Bill. I am particularly gratified to note the beneficent actions of Congress on funds and appropriation items which are of common interest and mutual concern to the executive and the legislative, in particular, for compensation adjustment, for calamities, for the infrastructure program and for internal revenue allotment to local government units. I view these favorable legislative actions as monumental testaments to Congressional sentiment in favor of countryside development and of the general welfare of the Filipino people. II. CHANGES IN APPROPRIATIONS A. BUDGETARY CUTS AND REALIGNMENTS I have noted with special interest the zeal and enthusiasm of the Legislature in the assiduous exercise of its power over the purse as manifested by its incisive budgetary cuts and realignments. I fully recognize the legislative authority to effect these budgetary cuts. However, when said cuts shall render difficult the implementation of urgent administration programs and curtail the effective delivery of essential public services, I shall exercise my Constitutional prerogative to augment the affected programs and items of appropriations and implement the same pursuant to Section 25 (5) of Article VI and Sections 1 and 17 of Article VII of the Constitution. The budgetary realignments effected by Congress which resulted in the increase of the appropriations of certain offices and agencies or the additional allocation for agency programs or projects shall be released and disbursed during budget implementation subject to Executive approval pursuant to the above-stated Constitutional authority and the provisions of Section 35, Chapter 5, Book VI of E.O. No. 292. The reallocation of agency appropriations for projects and activities which are beyond the mandate and functional responsibility of recipient implementing agencies shall be subject to the exercise of the same Executive prerogative. B. BUDGETARY AUGMENTATION BY USE OF INCOME Pursuant to Section 65 of the Government Auditing Code of the Philippines, Section 44, Chapter 5, Book VI of E.O. No. 292, s. 1987 and Section 22, Article VII of the Constitution, all income earned by all government offices and agencies shall accrue to the General Fund of the Government in line with the One Fund Policy enunciated by Section 29 (1), Article VI and Section 22, Article VII of the Constitution. Likewise, the creation and establishment of revolving funds shall be authorized by substantive law pursuant to Section 66 of the Government Auditing Code of the Philippines and Section 45, Chapter 5, Book VIofE.O.No.292. Notwithstanding the aforementioned provisions of the Constitution and existing law, I have noted the proliferation of special provisions authorizing the use of agency income as well as the creation, operation and maintenance of revolving funds. I would like to underscore the fact that such incomes were already considered as integral part of the revenue and financing sources of the National Expenditure Program which I previously submitted to Congress. Hence, the grant of new special provisions authorizing the use of agency income and the establishment of revolving funds over and above the agency appropriations authorized in this Act shall effectively reduce the financing sources of the 1994 GAA and, at the same time, increase the level of expenditures of some agencies beyond the well-coordinated, rationalized levels for such agencies. This correspondingly increases the overall deficit of the National Government. B.1 Direct Veto In view of the foregoing reasons, I am directly vetoing in their entirety the following new special provisions which authorize the use of income and the creation, operation and maintenance of revolving funds: (a) West Visayas State University "Equal Sharing of Income. Income earned by the University subject to Section 13 of the Special Provisions applicable to all State Universities and Colleges shall be equally shared by the university and the university hospital." (page 395, GAA, FY 1994) (b) Leyte State College "Revolving Fund for the Operation of LSC House and Human Resources Development Center (HRDC). The income of Leyte State College derived from the operation of its LSC House and HRDC shall be constituted into a Revolving Fund to be deposited in an authorized government depository bank for the operational expenses of these projects/services. The net income of the Revolving Fund at the end of the year shall be remitted to the National Treasury and shall accrue to the General Fund. The implementing guidelines shall be issued by the Department of Budget and Management." (page 415, GAA, FY 1994) (c) Special provisions applicable to all State Universities and Colleges "Use of Income from Extension Services. State Universities and Colleges are authorized to use their income from their extension services. Subject to the approval of the Board of Regents and the approval of a special budget pursuant to SEC. 35, Chapter 5, Book VI of E.O. No. 292, such income shall be utilized solely for faculty development, instructional materials and work study program." (page 490, GAA, FY 1994) "Income of State Universities and Colleges. The income of State Universities and Colleges derived from tuition fees and other sources as may be imposed by governing boards other than those accruing to revolving funds created under LOI Nos. 872 and 1026 and those authorized to be recorded as trust receipts pursuant to Section 40, Chapter 5, Book VI of E.O. No. 292 shall be deposited with the National Treasury and recorded as a Special Account in the General Fund pursuant to P.D. No. 1234 and P.D. No. 1437 for the use of the institution, subject to Section 35, Chapter 5, Book VI of E.O. No. 292: PROVIDED, That disbursements from the Special Account shall not exceed the amount actually earned and deposited: PROVIDED, FURTHER, That a cash advance on such income may be allowed State Universities and Colleges representing up to one-half of income actually realized during the preceding year and this cash advance shall be charged against income actually earned during the budget year: AND PROVIDED, FINALLY, That in no case shall such funds be used to create positions, nor for payment of salaries, wages and allowances, except as may be specifically approved by the Department of Budget and Management for income-producing activities, or to purchase equipment or books, without the prior approval of the President of the Philippines pursuant to Letter of Implementation No. 29. All collections of the State Universities and Colleges for fees, charges and receipts intended for private recipient units, including private foundations affiliated with these institutions shall be duly acknowledged with official receipts and deposited as a trust receipt before said income shall be subject to Section 35, Chapter 5, Book VI of E.O. No. 292." (page 490, GAA, FY1994) (d) Office of the Secretary - Department of Labor and Employment "Revolving Fund. Payments collected from loans extended thru the Promotion of Rural Employment through Self-Employment and Entrepreneurship Development (PRESEED) program shall be constituted into a revolving fund which shall be used for relending to other qualified beneficiaries. The fund shall be deposited in an authorized government depository bank and withdrawals therefrom shall be made in accordance with the procedures prescribed by law and implementing rules and regulations: PROVIDED, That the interest income earned shall accrue to the revolving fund which shall be utilized solely for operating expenses of the program (PRESEED) subject to the submission of a special budget pursuant to Section 35, Chapter 5, Book VI of E.O. No. 292: PROVIDED, FURTHER, That DOLE-PRESEED shall submit to DBM a quarterly report of its collection and relending. In case of failure to submit said requirements, no withdrawals shall be allowed except upon certification of DBM that said report had been submitted." (page 676 to 677, GAA, FY 1994) (e) Movie and Television Review and Classification Board "Use of Income. The Movie and Television Review and Classification Board may use income derived from operations in the form of fees, surcharges and fines not exceeding Five million pesos (P5,000,000) which shall be used for purchase of equipment needed for reviewing, cutting and monitoring films, including its repair and maintenance; monitoring theaters especially those in the provinces that are showing pornographic films; and organizing local regulatory councils in all cities and municipalities throughout the country to help enforce the provisions of P.D. No. 1986, subject to Section 35, Chapter 5, Book VI of E.O. No. 292." (page 1054, GAA, FY1994) (f) Philippine Racing Commission "Use of Income. Pursuant to Section 1 of E.O. No. 194, the Commission may use the collections representing the one percent (1%) of total wager fund or gross receipts from the sale of betting tickets set aside for use of the Commission not exceeding Fifteen million pesos (P15,000,000) to defray the additional operational and capital requirements of the Commission, subject to Section 35, Chapter 5, Book VI, E.O. No. 292." (page 1091, GAA, FY 1994) (g) Philippine Sports Commission "Income and Receipts from Activities and Rentals. All receipts and income derived by the Commission from activities and rentals for the use of its buildings and facilities being managed and administered or co-sponsored by the Commission shall automatically revert to the National Treasury and shall accrue to the General Fund: PROVIDED, That the same shall be earmarked for the program of identification, recruitment and training of athletes and coaches: PROVIDED, FURTHER, That the Commission shall submit to the Department of Budget and Management a quarterly report of its income and receipts and, in case of failure to submit said requirements, no withdrawal in the subsequent quarters shall be allowed." (page 1094, GAA, FY 1994) B.2 Conditional Implementation Aside from the above enumerated new special provisions, I have observed that there are old and long existing special provisions authorizing the use of income and the creation of revolving funds. As a rule, such authorizations should be discouraged. However, I take it that these authorizations have legal/statutory basis aside from being already a vested right to the agencies concerned which should not be jeopardized through the Veto Message. There is, however, imperative need to rationalize their implementation, applicability and operation. Thus, in order to substantiate the purpose and intention of said provisions, I hereby declare that the operationalization of the following provisions during budget implementation shall be subject to the guidelines to be issued by the President pursuant to Section 35, Chapter 5, Book VI of E.O. No. 292 and Sections 65 and 66 of P.D. No. 1445 in relation to Sections 2 and 3 of the General Provisions of this Act: (a) Office of the Secretary - Department of Agriculture (Special Provision No. 1, page 42, GAA, FY1994) (b) National Historical Institute (Special Provision No. 1, page 226, GAA, FY 1994) (c) National Museum (Special Provision No. 1, page 234, GAA, FY 1994) (d) Bureau of Immigration (Special Provision No. 1, page 652, GAA, FY 1994) (e) National Bureau of Investigation (Special Provision No. 2, page 657, GAA, FY 1994) (f) Office of the Secretary - Department of Labor and Employment (Special Provision No. 3, page 677, GAA, FY 1994) (g) Philippine Overseas Employment Administration (Special Provision No. 1, page 707, GAA, FY 1994) (h) Maritime Industry Authority (Special Provision No. 1, page 960, GAA, FY1994) (i) National Telecommunications Commission (Special Provision No. 1, page 965, GAA, FY 1994) (j) Philippine Regulation Commission (Special Provision No. 1, page 1156, GAA, FY 1994) (k) Commission on Audit (Special Provision No. 3, page 1160, GAA, FY 1994) C. EXPANDED USE OF APPROPRIATION THROUGH SAVINGS I have likewise noted that there are special provisions which treat savings as a new appropriation or new funding source for payment of fringe benefits and pensions. Ideally, the grant of, as well as the consequent payment of, such fringe benefits should be specifically authorized by law pursuant to Section 8, Article IX-B of the Constitution and should be covered by direct appropriations specifically approved for the purpose pursuant to Section 29 (1), Article VI of the fundamental law of the land. Besides, the authority to use savings is lodged by the Constitution in the officials enumerated under Section 25 (5) of Article VI of the Constitution. C.1 Direct Veto On the basis of the aforecited provisions of the Constitution, I will exercise my prerogative to use savings during budget implementation. Accordingly, I am directly vetoing in its entirety the following new special provision: AFP Pension and Gratuity Fund "Use of Savings. The Chief of Staff, AFP, is authorized, subject to the approval of the Secretary of National Defense, to use savings in the appropriations herein to augment the pension fund being managed by the AFP Retirement and Separation Benefit System as provided under Sections 2 (a) and 3 of P.D. No. 361." (page 746, GAA, FY1994) C.2 Conditional Implementation I am happy to note that Congress incorporated as condition precedent in the use of savings the underlined portion of the following special provisions of the offices vested with fiscal autonomy: (a) The Judiciary "Augmentation of any Item in the Court's Appropriations. Any savings in the appropriations for the Supreme Court and the Lower Courts may be utilized by the Chief Justice of the Supreme Court to augment any item of the Court's appropriations for (a) printing of decisions and publication of "Philippine Reports"; (b) commutable terminal leaves of Justices and other personnel of the Supreme Court and payment of adjusted pension rates to retired Justices entitled thereto pursuant to Administrative Matter No. 91-8-225-C.A.; (c) repair, maintenance, improvement and other operating expenses of the courts' libraries, including purchase of books and periodicals; (d) purchase, maintenance and improvement of printing equipment; (e) necessary expenses for the employment of temporary employees, contractual and casual employees, for judicial administration; (f) maintenance and improvement of the Court's Electronic Data Processing System; (g) extraordinary expenses of the Chief Justice, attendance in international conferences and conduct of training programs; (h) commutable transportation and representation allowances and fringe benefits for Justices, Clerks of Court, Court Administrator, Chiefs of Offices and other Court personnel in accordance with the rates prescribed by law; and (i) compensation of attorney-de-officio: PROVIDED, That as mandated by LOI No. 489 any increase in salary and allowances shall be subject to the usual procedures and policies as provided for under P.D. No. 985 and other pertinent laws." (page 1128, GAA, FY 1994) (b) Commission on Audit "Use of Savings. The Chairman of the Commission on Audit is hereby authorized, subject to appropriate accounting and auditing rules and regulations, to use savings for the payment of fringe benefits as may be authorized by law for officials and personnel of the Commission." (Page 1161, GAA, FY1994) (c) Office of the Ombudsman "Augmentation of Items in the Appropriation of the Office of the Ombudsman. The Ombudsman is hereby authorized, subject to appropriate accounting and auditing rules and regulations, to augment items of appropriation in the Office of the Ombudsman from savings in other items of appropriation actually released, for: (a) printing and/or publication of decisions, resolutions, training and information materials; (b) repair, maintenance and improvement of OMB Central and Area/Sectoral facilities; (c) purchase of books, journals, periodicals and equipment; (d) payment of commutable representation and transportation allowances of officials and employees who by reason of their positions are entitled thereto and fringe benefits as may be authorized specifically by law for officials and personnel of OMB pursuant to Section 8 of Article IX-B of the Constitution; and (e) for other official purposes subject to accounting and auditing rules and regulations." (page 1172, GAA, FY 1994) (d) Commission on Human Rights "Use of Savings. The Chairman of the Commission on Human Rights (CHR) is hereby authorized, subject to appropriate accounting and auditing rules and regulations, to augment any items of appropriation in the office of the CHR from savings in other items of appropriations actually released, for: (a) printing and/or publication of decisions, resolutions, training materials and educational publications; (b) repair, maintenance and improvement of Commission's central and regional facilities; (c) purchase of books, journals, periodicals and equipment; (d) payment of commutable representation and transportation allowances of officials and employees who by reason of their positions are entitled thereto and fringe benefits, as may be authorized by law for officials and personnel of CHR, subject to accounting and auditing rules and regulations." (page 1178, GAA, FY1994) The said condition is consistent with the Constitutional injunction prescribed under Section 8, Article IX-B of the Constitution which states that "no elective or appointive public officer or employee shall receive additional, double, or indirect compensation unless specifically authorized by law." I am, therefore, confident that the heads of the said offices shall maintain fidelity to the law and faithfully adhere to the well-established principle on compensation standardization. D. CONGRESSIONAL RESTRICTIONS/LIMITATIONS ON APPROPRIATION While I am cognizant of the well-intended desire of Congress to impose certain restrictions contained in some special provisions, I am equally aware that many programs, projects and activities of agencies would require some degree of flexibility to ensure their successful implementation and therefore risk their completion. Furthermore, not only could these restrictions and limitations derail and impede program implementation but they may also result in a breach of contractual obligations. D.1 Direct Veto D.1.a A study conducted by the Infrastructure Agencies show that for practical intent and purposes, maintenance by contract could be undertaken to an optimum of seventy percent (70%) and the remaining thirty percent (30%) by force account. Moreover, the policy of maximizing implementation through contract maintenance is a covenant of the Road and Road Transport Program Loan from the Asian Development Bank (ADB Loan No. 1047-PHI-1990) and Overseas Economic Cooperation Fund (OECF Loan No. PH-C17-199). The same is a covenant under the World Bank (IBRD) Loan for the Highway Management Project (IBRD Loan No. PH-3430) obtained in 1992. In the light of the foregoing and considering the policy of the government to encourage and maximize private sector participation in the regular repair and maintenance of infrastructure facilities, I am directly vetoing the underlined second paragraph of Special Provision No. 2 of the Department of Public Works and Highways as quoted below: "Release and Use of Road Maintenance Funds. Funds allotted for the maintenance and repair of roads which are provided in this Act for the Department of Public Works and Highways shall be released to the respective Engineering District, subject to such rules and regulations as may be prescribed by the Department of Budget and Management. Maintenance funds for roads and bridges shall be exempt from budgetary reserve. Of the amount herein appropriated for the maintenance of national roads and bridges, a maximum of thirty percent (30%) shall be contracted out in accordance with guidelines to be issued by the Department of Public Works and Highways. The balance shall be used for maintenance by force account. Five percent (5%) of the total road maintenance fund appropriated herein to be applied across the board to the allocation of each region shall be set aside for the maintenance of roads which may be converted to or taken over as national roads during the current year and the same shall be released to the central office of the said department for eventual sub-allotment to the concerned region and district: PROVIDED, That any balance of the said five percent (5%) shall be restored to the regions on a pro-rata basis for the maintenance of existing national roads. No retention or deduction as reserves or overhead expenses shall be made, except as authorized by law or upon direction of the President." (page 785-786, GAA, FY1994) D.1.b The same rule and governing principle equally applies to the restrictions imposed on the purchase of medicines by the Armed Forces of the Philippines. While it is desirable to subject the purchase of medicines to a standard formulary, it is more prudent to provide for a transition period for its adoption and smooth implementation in the Armed Forces of the Philippines. In view of the foregoing, I am vetoing the whole of the following Special Provision: "Purchase of Medicines. The purchase of medicines by all Armed Forces of the Philippines units, hospitals and clinics shall strictly comply with the formulary embodied in the National Drug Policy of the Department of Health." (page 748, GAA, FY 1994) D.1.c In like manner as in paragraph D.1.a above, I would have fully supported the imposition of the restrictions and prohibitions contained under Special Provision Nos. 2 and 3 of the Armed Forces of the Philippines if these were not violative of the Constitutional mandate of non-impairment of contractual obligations. Furthermore, the prohibition, if allowed, shall effectively alter the original intent of the AFP Modernization Fund to cover all military equipment deemed necessary to modernize the Armed Forces of the Philippines. In view of the foregoing, I am constrained to veto the underlined proviso of Special Provision No. 2 on the "Use of the Fund" as well as entire Special Provision No. 3 on the "Specific Prohibition"; "Use of the Fund. Of the amount herein appropriated, priority shall be given for the acquisition of AFP assets necessary for protecting marine, mineral, forest and other resources within Philippine territorial borders and its economic zone, detection, prevention or deterrence of air or surface intrusions and to support diplomatic moves aimed at preserving national dignity, sovereignty and patrimony: PROVIDED, That the said modernization fund shall not be released until a Table of Organization and Equipment for FY 1994-2000 is submitted to and approved by Congress." (page 747, GAA, FY 1994) "Specific Prohibition. The said Modernization Fund shall not be used for payment of six (6) additional S-211 Trainer planes, 18 SF-260 Trainer planes and 150 armored personnel carriers." (page 747, GAA, FY 1994) D.2 CONDITIONAL IMPLEMENTATION I am well cognizant of the laudable intention of Congress in proposing the amendment of Special Provision No. 1 of the CAFGU. However, it is premature at this point in time of our peace process to earmark and declare through special provision the actual number of CAFGU members to be deactivated in CY 1994. I understand that the number to be deactivated would largely depend on the result or degree of success of the on-going peace initiatives which are not yet precisely determinable today. I have desisted, therefore, to directly veto said provisions because this would mean the loss of the entire special provision to the prejudice of its beneficient provisions. I therefore declare that the actual implementation of this special provision shall be subject to prior Presidential approval pursuant to the provisions of P.D. No. 1597 and R.A. No. 6758: "CAFGU Compensation and Separation Benefit. The appropriation authorized herein shall be used for the compensation of CAFGUs including the payment of their separation benefits not exceeding one (1) year subsistence allowance for the 11,000 members who will be deactivated in 1994. The Chief of Staff, AFP, shall, subject to the approval of the Secretary of National Defense, promulgate policies and procedures for the payment of separation benefit." (page 740, GAA, FY1994) E. OTHERS E.1 Direct Veto I also note the laudable and noble intent of Special Provision No. 2 of the National Manpower and Youth Council (NMYC-DOLE). However, the subject matter of the provision is already amply covered by existing law and the general provisions of this Act, hence this is already a surplusage. Accordingly, I am vetoing the whole special provision: "Utilization of Services of Instructors. NMYC is authorized to utilize the services of instructors for off-training centers in various trade areas where the expertise is not available in their regular programs. Training honoraria/allowances from the Council's MOOE appropriations may be provided if deemed necessary subject to availability of funds." (page 695, GAA, FY 1994) E.2. Conditional Implementation E.2.a While I fully agree with the intent and purpose of Congress in providing Special Provision No. 9 of the Department of Public Works and Highways, the mandatory retention of five percent (5%) and three percent (3%) through special provisions like in this case needs further study. Therefore, the implementation of the following special provision shall be subject to the necessary administrative guidelines to be formulated by the Executive pursuant to existing laws: "Engineering and Administrative Overhead. Not more than five percent (5%) of the amount for infrastructure project released by the Department of Budget and Management shall be deducted by DPWH for administrative overhead, detailed engineering and construction supervision, testing and quality control, and the like, thus ensuring that at least ninety-five percent (95%) of the released fund is available for direct implementation of the project: PROVIDED, HOWEVER, That for school buildings, health centers, day-care centers and barangay halls, the deductible amount shall not exceed three percent (3%). Violation of, or non-compliance with, this provision shall subject the government official or employee concerned to administrative, civil and/or criminal sanction under Sections 43 and 80, Book VI of E.O. No. 292." (page 786, GAA, FY 1994) E.2.b I have noted that special provisions earmarking the budget of the National Housing Authority (NHA) for specific purposes were incorporated under previous General Appropriations Acts. These have not been directly vetoed for reason that it will result in the elimination of the items and the loss of the appropriations specified therein. The appropriations authorized for the NHA under this Act shall, therefore, be released and disbursed in accordance with the housing program of the government, subject to prior Executive approval. "Allocations for Specified Projects. The following allocations for the specified projects shall be set aside for corollary works and used exclusively for the repair, rehabilitation and construction of buildings, roads, pathwalks, drainage, waterworks system, facilities and amenities in the area: PROVIDED, That any road to be constructed or rehabilitated shall conform with the specifications and standards set by the Department of Public Works and Highways for such kind of road: PROVIDED, FURTHER, That savings that may be available in the future shall be used for road repair, rehabilitation and construction: (1) Maharlika Village Road - Not less than P5,000,000 (2) Tenement Housing Project (Taguig) - Not less than P3,000,000 (3) Bagong Lipunan Condominium Project (Taguig) - Not less than P2,000,000.00" (page 1216, GAA, FY1994) "Allocation of Funds. Out of the amount appropriated for the implementation of various projects in resettlement areas, Seven million five hundred thousand pesos (P7,500,000) shall be allocated to the Dasmari ñas Bagong Bayan resettlement area, Eighteen million pesos (P18,000,000) to the Carmona Relocation Center Area (Gen. Mariano Alvarez) and Three million pesos (P3,000,000) to the Bulihan Sites and Services, all of which will be for the cementing of roads in accordance with DPWH standards." (page 1216, GAA, FY 1994) "Allocation for SapangPalay. An allocation of Eight million pesos (P8,000,000) shall be set aside for the asphalting of seven (7) kilometer main road of Sapang Palay, San Jose del Monte, Bulacan." (page 1216, GAA, FY 1994) III. APPROPRIATIONS FOR DEBT SERVICE I would like to emphasize that I concur fully with the desire of Congress to reduce the debt burden by decreasing the appropriation for debt service as well as the inclusion of the Special Provision quoted below. Nevertheless, I believe that this debt reduction scheme cannot be validly done through the 1994 GAA. This must be addressed by revising our debt policy by way of innovative and comprehensive debt reduction programs conceptualized within the ambit of the Medium-Term Philippine Development Plan. Appropriations for payment of public debt, whether foreign or domestic, are automatically appropriated pursuant to the Foreign Borrowing Act and Section 31 of P.D. No. 1177 as reiterated under Section 26, Chapter 4, Book VI of E.O. No. 292, the Administrative Code of 1987. I wish to emphasize that the constitutionality of such automatic provisions on debt servicing has been upheld by the Supreme Court in the case of "Teofisto T. Guingona, Jr. and Aquilino Q. Pimentel, Jr. vs. Hon. Guillermo N. Carague, in his capacity as Secretary of Budget and Management, et. al.," G.R. No. 94571, dated April 22,1991. I am, therefore, vetoing the following special provision for reason that the GAA is not the appropriate legislative measure to amend the provisions of the Foreign Borrowing Act, P.D. No. 1177 and E.O. No. 292: "Use of the Fund. The appropriation authorized herein shall be used for payment of principal and interest of foreign and domestic indebtedness: PROVIDED, That any payment in excess of the amount herein appropriated shall be subject to the approval of the President of the Philippines with the concurrence of the Congress of the Philippines: PROVIDED, FURTHER, That in no case shall this fund be used to pay for the liabilities of the Central Bank Board of Liquidators." (page 1266, GAA, FY1994) IV. GENERAL OBSERVATIONS I note with keen interest Special Provision No. 2 of the Congress of the Philippines on the "Organizational Structure of the Senate, the House of Representatives, the Senate and the House of Representatives Electoral Tribunals and the Commission on Appointments" and Section 69 of the General Provisions of this Act on the "Budget Authority" of the three corporations under the Department of Energy. A. SPECIAL PROVISION NO. 2, CONGRESS OF THE PHILIPPINES It may be recalled that this provision was included in the General Observations portion of the Veto Messages under the CY 1991 and CY 1992 General Appropriations Acts as well as under R.A. No. 7645, the 1993 GAA, citing in particular the underlined portion of the provision, stating that its operation shall be circumscribed by the salary rates, allowable level of allowances and other benefits prescribed or authorized by law enacted pursuant to the compensation standardization clause of the Constitution. I hereby reiterate the same observations for the implementation of subject Special Provision. As have been previously stated, I have complete trust in the wisdom of the institution tasked with this provision. I am therefore confident that the power vested in the officials of the Congress of the Philippines to fix and determine the salaries, allowances, year-end bonuses and cash gifts and other benefits of their respective employees shall be judiciously exercised in accordance with R.A. No. 6686 and the Constitutional principle of salary standardization which Congress itself heralded as a state policy under R.A. No. 6758, the Compensation and Position Classification Act of 1989. B. SECTION 69, GENERAL PROVISION I am disturbed by the congressional injunction contained under this new General Provision entitled "Budget Authority" which states that the Philippine National Oil Company, the National Power Corporation and the National Electrification Administration are authorized to operate on the basis of their respective budgets for Fiscal Year 1993 for the first semester of 1994 or until such time that their annual budget is submitted to, and approved by, Congress. This Congressional declaration may be misconstrued as an indictment of the Executive Branch for non-submission of the budgets of the aforementioned government corporate entities as required by Section 13 of R.A. No. 7638. I, therefore, take exception to this provision. I have incorporated the annual budgets of the three corporations on pages 363-407 of the FY 1994 Budget of Expenditures and Sources of Financing (BESF) which I submitted to Congress pursuant to the Constitution. These budgets are presented in the form consistent with the provisions of Executive Order No. 518, s. 1979. I, therefore request Congress to approve and affirm by Resolution the annual Budgets of said corporate entities pursuant to Section 13 of R.A. No. 7636. V. CLOSING STATEMENT In closing, I would like to put on record my deep gratitude to the leadership of Congress, most especially to the House Committee on Appropriations and the Senate Committee on Finance for the timely passage and enactment of the General Appropriations Bill for CY 1994. While this was sometimes heatedly debated upon by all concerned, I observed that it was designed, molded and crafted with the welfare of the Filipino people and the national interest of our beloved Philippines in mind. This Bill has become Republic Act No. 7663. Very Truly yours, (SGD.) FIDEL V. RAMOS THE HOUSE OF REPRESENTATIVES Congress of the Philippines Manila