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GEALOGO, Carl Patrick M. BSA – 5A Disbursement Acceleration Program The Disbursement Acceleration Program (DAP) is a stimulus package under the Aquino administration designed to fast-track public spending and push economic growth. This covers high-impact budgetary programs and projects which will be augmented out of the savings generated during the year and additional revenue sources. The DAP was approved by the President on October 12, 2011, upon the recommendation of the Development Budget Coordination Committee (DBCC) and the Cabinet Clusters. DAP was introduced when the Aquino Administration unearthed systemic inefficiencies in public spending back in 2010. These included poorly-designed and questionable projects that need to be cancelled; the prevalence of lump sum funds; implementation bottlenecks; among others. Unfortunately, its efforts to plug leakages and reform the budget execution process had the effect of slowing down spending. The government wanted to unconventionally change and improve the economy by creating new tactics and programs, and one of these is DAP. The DAP tapped the power of the president over a) the use of savings to augment deficient programs and projects; and b) the use of unprogrammed funds. Savings are available portions or balances of items under the General Appropriations Act (GAA) which result from: a) the completion or final discontinuance or abandonment of a program, activity, or project; b) unpaid compensation for vacant or unfilled positions and leaves of absence without pay; or c) the implementation of efficiency measures that enable agencies to deliver services at lower cost. Such savings may then be used to augment funds for programs, activities, or projects which are included in the GAA (i.e. nonexistent budget items cannot be funded). Unprogrammed funds are standby appropriations which are authorized by Congress in the annual GAA, and which may only be used when a) revenue

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GEALOGO, Carl Patrick M.BSA 5ADisbursement Acceleration ProgramThe Disbursement Acceleration Program (DAP) is a stimulus package under the Aquino administration designed to fast-track public spending and push economic growth. This covers high-impact budgetary programs and projects which will be augmented out of the savings generated during the year and additional revenue sources. The DAP was approved by the President on October 12, 2011, upon the recommendation of the Development Budget Coordination Committee (DBCC) and the Cabinet Clusters. DAP was introduced when the Aquino Administration unearthed systemic inefficiencies in public spending back in 2010. These included poorly-designed and questionable projects that need to be cancelled; the prevalence of lump sum funds; implementation bottlenecks; among others. Unfortunately, its efforts to plug leakages and reform the budget execution process had the effect of slowing down spending. The government wanted to unconventionally change and improve the economy by creating new tactics and programs, and one of these is DAP. The DAP tapped the power of the president over a) the use of savings to augment deficient programs and projects; and b) the use of unprogrammed funds. Savings are available portions or balances of items under the General Appropriations Act (GAA) which result from: a) the completion or final discontinuance or abandonment of a program, activity, or project; b) unpaid compensation for vacant or unfilled positions and leaves of absence without pay; or c) the implementation of efficiency measures that enable agencies to deliver services at lower cost. Such savings may then be used to augment funds for programs, activities, or projects which are included in the GAA (i.e. nonexistent budget items cannot be funded). Unprogrammed funds are standby appropriations which are authorized by Congress in the annual GAA, and which may only be used when a) revenue collections exceed revenue targets; b) new revenues are collected from sources not included in the program; or c) newly-approved loans for foreign-assisted projects are secured. Such funds can be used for new programs, activities, or projects as long as these are consistent with the purposes listed in the GAA for the use of unprogrammed funds. Previous administrations had used these authorities in the past to address urgencies they faced. Moreover, the Aquino Administration sharpened the application of such powers by prioritizing funding for programs and projects which are a) fast-moving or quick disbursing; b) urgent or priority in terms of social and economic development objectives; and c) performing well and could deliver more services with additional funds.Before, national government disbursements from January to September of 2011, shrank by 7.3 percent year-on-year. Underspending was most severe in the case of infrastructure, which slumped by 51.3 percent. These, alongside the global economic slowdown, pulled down gross domestic product (GDP) growth to 3.6 percent in the first three quarters of 2011, from 7.6 percent in 2010. Clearly, the government could not have afforded to nothing. Because of DAP and other measures (e.g., Catch-up plans of departments/agencies, among others), public spending in the fourth quarter of 2011 grew year-on-year by a whopping 32.5 percent and was above program by 11.8 percent. As an effect, the year-on-year growth of disbursements for the whole 2011 was pushed up to 2.3 percent; similarly the level of underspending against program was reduced to 9 percent.

Despite the improvements and positive effects of DAP, there are issues that arouse regarding the usage of it for certain projects. The controversy of PDAF was directly linked to the rumors of DAP, thus the whole thing circulated the news and headlines for quite some time. The DAP controversy only came to light after the programme was alleged to be the source of the 50m pesos that Jinggoy Estrada claimed he and other senators were offered as an incentive to vote to convict a former Supreme Court justice. Mr. Estrada was implicated in a scandal involving another fund called PDAF (Priority Development Assistance Fund), which the Supreme Court declared unconstitutional last year.On July 28th Benigno Noynoy Aquino, the Philippines president, delivered his fifth State of the Nation address. On the contrary to what the nation expected, PNoys SONA didnt tackle about the economic issues (such as DAP), instead reported and boosted the name of his administration. Towards the end of the speech, however, came a protest: We have had to suspend a number of projects to make certain that we remain in accordance with the Supreme Courts decision on the Disbursement Acceleration Programme, or DAP. I know that those of you in this hall are one with me in believing that we must not deprive our countrymen of benefits. This was the only time that PNoy mentioned the said issue. But what was the issue? Why is it that PNoy tried to avoid the subject in his speech? It was courts 13-0 ruling that Mr Aquinos DAP was unconstitutional. DAP was designed to speed the Philippines slow and inefficient government spending. In a nationally televised speech on July 14th, Mr Aquino insisted that the funds were used for the benefit of Filipinos. And not for later, not soon, but now. Nobody contests that claim. Even the ruling concedes that the DAP yielded undeniably positive results that enhanced the economic welfare of the country. The problem was not what the money was spent on, but where it came from: mainly unreleased appropriations, funds reassigned from slow-moving to more urgent projects, and unprogrammed funds. Mr Aquinos government defined those funds as savings. The Supreme Court was unimpressed. It held that the DAP funds were not actually savings, so the president exceeded his constitutional authority in disbursing them. The court found that the DAP disbursals need not be undone, thus unanimously voted against him. Because of his stubbornness and persuasive arguments, two impeachment complaints stemming from the DAP ruling have been filed against Mr Aquino. It is very alarming to look at our economy todaythe different issues, the corrupt officials, and the slow crumbling effect of the economy itself. I do not believe in those numbers and facts that were presented. I do not believe that we are rising from being the Sick Man of Asia to one of the thriving countries in the world. By the looks of it, can we really justify that we are trying and thriving? The problems and issues are handed to us at a pretty platter, yet they continue to declare that we are improving. The irony of this country is beyond imagination. Regarding the insufficiency of PNoys SONA, as Monsod said, Syempre, meron talagang natutulungan, there's no question about it.... But the question is how many was he supposed to have helped? and that is true. Theres no question that he can help because of the different funds and programs his administration created (like DAP), but the question is, is the help enough to be felt by ordinary people? And how can he even help the country when he cant help himself in his own cases and trials? About the avoidance of the issue of DAP, I think that should be the main subject he discussed in his speech. The issues cant be solved by themselves and avoiding it is worse. In the eyes of the senators, it was the right thing to do saying the wheels of justice are already moving and we should let them handle it which in my opinion is wrong. The economy is of the people and by the people thus it is for the people. Going with the flow isnt for the benefit of the people but for themselves. You see, how can we develop our economy when there are people pulling us down that are supposed to help us? The problem in our economy the officials are indicted but not convicted up until now. The danger to Mr Aquino and the Philippines is less that he will be impeached or removed from officehis majorities in both legislative chambers will prevent thatthan that his spat with the judiciary deepens, becoming a drag on his last two years in office We do not want two equal branches of government to go head to head, said Mr Aquino in his July 14th speech. But neither does he seem anxious to take himself out of the ring.