The President said she would rather settle with a reenacted 2005 budget than operate with a 2006 outlay impaired by the Senate and the House of Representatives.

"I hope the budget will not be reduced. But if this budget will be damaged drastically, even though I believe our lawmakers are responsible, and if this will happen, then I cannot do anything. I might have to veto the budget because the proposal was studied thoroughly," she said in Filipino in an interview over radio station DZMM.

"A budget is useless if the meaningful programs for the people would be removed. The people are looking for a budget with enough allocations for health, to combat crime syndicates, fight rebels, and to improve the economy. We cannot compromise on these," she said.

The President made the threat after senators and congressmen remained deadlocked at the bicameral conference on the long-delayed proposed General Appropriations Act of 2006.

From the original budget of R1.053 trillion for 2006 endorsed by Malacañang, the House approved a R1.04-trillion budget while the Senate trimmed it down to RP1.027 trillion.

Under the Constitution, the President can veto legislation and return measures back to Congress for review.

The President said she would not call for a special session if Congress fails to pass the 2006 budget bill without any cuts before it adjourns sine die this week.

"I will not call for a special session because it will be a waste of funds and time from the long and tedious debates," she said.

Mrs. Arroyo said the national government would rather operate on the existing 2005 budget of R907 billion pending the passage of a new one. "We would just make do with current budget," she said

Six months into the fiscal year, the President, however, remained hopeful that Congress would pass the much-delayed budget measure as originally proposed by Malacañang.

She also appealed to lawmakers to restore the budget reductions, saying these program allocations are essential for the poor.

"Aking inaasahan na mababalik lahat dahil matagal nating pinag-aralan itong budget na ito noong ito ay isinumite sa Kongreso. Kaya inaasahan ko na magiging responsive iyong ating mga taga-Kongreso dito," she said.

The President disputed the claims of senators that the deleted R3 billion-Kilos Asenso Support Fund and the R3.69 billion-Kalayaan Barangay Program Fund are pork barrel of the President.

She explained the Kilos Asenso Support Fund, which was proposed by the National Economic and Development Authority, seeks to create jobs, livelihood and develop lands into agribusiness hubs.

The Kalayaan Barangay Fund involves expansion of health care, education and other social services in the country’s poorest communities.

The entire 2006 national budget, the President said, is the government’s way to spread economic wealth to the masses. "Inaasahan ko na sa madaling panahon ay magkakaroon ng bagong budget dahil napakaimportante nito," she said.

Malacañang earlier warned that the average Filipino would be the first suffer if lawmakers reduced a substantive part of the 2006 budget bill. It said the budget is the government’s means to compensate the people who have long suffered from economic reforms implemented by the administration.

Reenacted 2005 budget looms following deadlock in bicameral hearings

By BEN R. ROSARIO

A re-enactment of the 2005 budget appeared to be imminent as the House of Representatives members in the bicameral conference committee took a hard line stance in rejecting the R64-billion cut made by the Senate on the proposed national appropriation for 2006.

Albay Rep. Joey Salceda, chairman of the House Committee on Appropriations, said the Lower House would insist on the full restoration of the R1.053 trillion budget it approved.

This stand resulted in a deadlock in the negotiations between the two panels during Monday night’s bicameral conference committee proceedings.

"With personalities and politics coming into play, our positions are further apart as the Pacific Ocean where before it was just the South China Sea," Salceda said in a press conference yesterday.

In a press statement, the Kabalikat ng Malayang Pilipino (KAMPI) lamented the Senate’s move to cut the budget, "mainly on suspicion of improper spending" on the part of the Arroyo government.

"Senators are fully aware that Congress can impose restrictions that would result in prudent spending on the part of the government. We can only hope politics has nothing to do with the Senate stand," said KAMPI spokesman and Isabela Rep. Anthony Miranda.

Miranda said the deadlock has given Charter change proponents another valid justification to abolish the two-chambers Congress and replace it with a unicameral parliament.

Salceda said the House is standing pat on its position that next year’s "spending aggregate" should not be lesser than the original Palace proposal which is the same budget ceiling approved by representatives.

"We cannot live by the cuts imposed by the Senate, particularly on Capital Outlay and on the Unprogrammed Fund. The House is taking a hard line stance on this matter," he said.

The Monday night bicameral conference lasted less than one hour.

Salceda said the two panels also failed to agree on the details of their next meeting.

He said the impasse presents a "clear and present danger" of a reenactment of the 2005 budget.

Salceda lamented the Senate’s position that a "scrap-and-build" mode be adopted in trying to reconcile their disagreements.

However, the House panel insisted on taking the "top-down" procedure which is to first agree on the aggregate amount before the details are finalized.

"Once you have the cake, it’s easier to cut it. The House would never agree on the Senate’s scrap-build mode, it has to be done in a top-down approach. We cannot discuss the details first before agreeing on the aggregate because if you do that, you tend to miss out efficiency in budget allocation," he said.

Salceda said instead of increasing the R115 billion capital outlay by R240 billion, the Senate cut it by R24.5 billion. He explained that the amount budgeted for capital expenditure should be equivalent to four percent of the Gross Domestic Product or GDP.

The R115 billion original proposal is only 1.9 percent of GDP and accounts for only 11 percent of the proposed 2006 appropriation.

The bicameral panel is plagued by "too much bad blood between Malacanang and the Senate," Salceda said.