BY PRINCE GOLEZ
Manila Reporter
MANILA – The Supreme Court ruling on the Disbursement Acceleration Program (DAP) may “undo” the country’s economic gains, warned Secretary of Budget Florencio “Butch” Abad.
Abad appeared before the Senate committee on finance’s investigation on DAP yesterday.
In 2011 before DAP’s implementation, the country’s gross domestic product (GDP) grew by 3.7 percent only.
A year after when the government’s economic stimulus package had seen implementation, Abad said the Philippines saw a “dramatic improvement” in GDP – 6.8 percent growth.
In 2013, GDP rose by 7.23 percent, he boasted.
“DAP was an urgent response to an urgent problem. It is a spending reform measure to catalyze economic growth,” Abad said,
He also said it was not wholly declared unconstitutional by the Supreme Court.
Abad maintained that DAP has “sufficient” legal and historical basis.
“It was a shock to us in the executive to find a ruling with paragraphs saying that the operative fact and presumption of good faith cannot apply to authors of DAP,” Abad said. “What a shame if we now presume bad faith on those who have in fact acted in the country’s best interest.”
The Budget chief submitted to Senate a complete list of all projects facilitated through the DAP.
The list, he said, had “name of project,” “implementing agencies,” Special Allotment Release Order (SARO) details,” “programs,” “activities,” and “status of the project.”
Abad said the government has released a total of P144.378 billion for DAP-funded projects.
Thirty-seven percent of the funds went economic services; while the 34 percent and 21 percent were allocated to infrastructure projects and social services, respectively.
‘DAP IS NOT NEW’
The use and generation of savings, example of which is the DAP, is not new, stressed Abad.
It took the form of “reserves” or “savings generated” during the administration of former Presidents Corazon Aquino, Fidel Ramos and Joseph Estrada, senators were told.
DAP was “overall savings” under the Arroyo government, added Abad.
Abad debunked claims that the government failed to announce the existence of DAP in 2011.
“The launching of DAP was covered by major broadsheets,” the Budget chief said.
Those who came to the hearing to support Abad were department secretaries Rosalinda Baldoz, Arsenio Balisacan, Virgilio Delos Reyes, Voltaire Gazmin, Ramon Jimenez, Patricia Licuanan, Enrique Ona, Cesar Purisima, Rogelio Singson, Corazon Soliman and Francis Tolentino.
Presidential spokespersons Edwin Lacierda and Abigail Valte were also present./PN
