The “parliamentary courtesy”granted to Vice President Sara Duterte by the members of the House in August 30,2023  when she skipped direct scrutiny ofher twin-office budgets may have inadvertently triggered consequencessurrounding an issue that overshadowed the entire budget deliberations andbeyond.

Currently, debates around howconfidential funds are allocated and spent by civilian agencies—including theOffice of the Vice President and line agencies like education, agriculture, andnatural resources—and now even by local government units, continue to dominatediscussions  in both traditional andsocial media.

The controversy  amplified during the September 27, 2023  plenary debate on the proposed OVP budget.  House Deputy Minority Leader France Castro ofthe ACT Teachers Partylist, who initially questioned the sizable confidentialfund of VP Duterte, was visibly stunned.

The shock stemmed from adisclosure by Senior Appropriations Committee Vice-Chair Rep. Stella Quimbo. Thedisputed 2022 P125 M OVP Confidential Funds, previously believed to have beenexpended in 19 days as claimed by Rep. Castro, were actually used up in a mere11 days.

This startling revelation notonly resonated throughout the nation, sparking a social media storm, but alsoprompted deeper constitutional introspection.

Initially, Congress seemedhesitant to delve into the matter anew. However, due to increased scrutiny,discussions around confidential funds allocated to various civilian departmentsthat typically don't have security roles became more apparent now compared toprevious years’ budget deliberations.

The timing is pivotal,though. Of the proposed 2024 national budget of P5.768 trillion, the proposedCIF is a staggering P10.14 Billion, including allocations for both the Officeof the President and the OVP. In contrast, the executive only proposes P9Billion for its Rice Buffer Stocking  Program,even with the looming  supply crisis  and the steadily rising prices of  the country’s staple food.

As a result, too, of thecontroversy, even the  confidentialexpenses of   LGUs are also now underclose public scrutiny, given the equally large allocations earmarked on thissecretive expenses by local chief executives.

Amid this fiscal maelstrom,the members of the Makabayan Bloc in the House of Representatives undeniablyemerged as confident advocates for fiscal transparency and responsibility.

It's worth noting that theBloc’s initial attempt to spotlight the issue of the P125 Million 2022 OVPConfidential Fund during the House Appropriations Committee budget presentationwas thwarted by Majority members.

They cited the overused“parliamentary courtesy” granted to Executive Officials, which in essenceshields these officials from direct public scrutiny.

However, the Makabayan Blocpersisted. Their incisive insights during committee and plenary deliberationsgarnered public attention, thanks in part to the live streaming of proceedingson social media platforms.

Many lauded their meticulousexamination, particularly of the contentious Confidential and Intelligence Fund(CIF). It served as a beacon, ensuring the nation's already strained budgetremains clear and transparent. They underscore the importance of ongoingvigilance in the face of government ambiguity.

For one, Rep. France Castrohas been instrumental in bringing the CIF debate to the forefront. Alongsideher are fellow Makabayan Bloc members Kabataan Partylist Rep. Raul Manuel, anadvocate for increased funding for state universities and colleges, andGabriela Women’s Party Rep. Arlene Brosas, a champion for marginalized groups.Together, this trio ensures essential sectors, like the workers, farmers andindigenous peoples, receive the attention they merit.

Despite adversity, Rep.Castro remains unwavering in her commitment to fiscal transparency. Herrigorous interpellations and demands for clear explanations have been essentialin promoting transparency in an otherwise murky domain.

In an era where public trustis vital, Rep. France Castro stands as a beacon of integrity. Her fervor forupholding democratic ideals and ensuring accountability embodies the pivotalrole principled legislators play in a democracy.

The next stage for furtherbudget scrutiny is the Senate, especially after its rushed approval by Housemembers on September 27, spurred by the certification of urgency fromMalacanang.

At this point, the publicexpects Congress to genuinely reclaim its “power of the purse” and allow theCIF debate to lead to more judicious budgetary spending.

So, how essential forCongress to scrutinize the annual budget more diligently now, especiallyregarding lump-sum allocations like the confidential and intelligence funds(CIF)?

Public finance in thePhilippines has always been a balance of admiration and skepticism.

In the past, it was thedebates on the now unconstitutional Priority Development Assistance Fund(PDAP), a euphemism for legislative pork barrel, that bedeviled the country.There was also the equally unconstitutional Disbursement Acceleration Program(DAP), another  euphemism forpresidential pork barrel.

Now, a major point ofcontention is the allocation of "confidential expenses," especiallyto agencies that traditionally don't engage in security-sensitive operations.Confidential funds, by their very nature, are opaque and often escape regularscrutiny. This secrecy makes holding these funds accountable challenging sincethey don't undergo the same rigorous auditing process as other earmarked funds.

Even the Commission on Audit(COA) during the House budget deliberations recognized the need to re-examineguidelines for CIF allocation and disbursement, such as the Joint Circular No.2015-01, issued by the DBM, COA, DND, DILG, and the Government Commission forGOCC.

These large confidentialfunds with minimal oversight are enticing for those seeking personal gains,especially when these funds seem to sidestep established legal and procurementprotocols.

Given these potentialpitfalls, the clarion call for fiscal transparency emerging from the CIF debateis both praiseworthy and vital. This call protects the public's trust and thenation's fiscal health, now compromised by deficit revenue collections andburdened by trillions in debt.

The 1987 PhilippineConstitution entrusts the "power of the purse" to Congress. Thisauthority over the nation's finances ensures that the Executive cannot utilizethe nation's resources without legislative oversight -- ideally.

The Supreme Court hasunderscoredthis balance, affirming in several decisions that fund appropriation is alegislative prerogative. While the Executive enforces policies, the Legislaturecontrols the economic resources backing them, with the Judiciary ensuring theseprovisions adhere to the constitution.

Yet, in an era still markedby political patronage and a series of pork barrel scandals that shook Congressand the nation, this power seems more symbolic than actual. Over the years,with minor realignments to cater to its members' localized or parochialinterests, Congress has generally rubber-stamped the national expenditureprogram proposed by the Executive.

However, given the changingglobal economic landscape and many countries, including the Philippines,grappling with severe post-pandemic financial crises, the power of the pursebecomes even more imperative.

Again, this Congress"power of the purse" is not just a fiscal tool. It stands as atestament to the country’s democratic principles, emphasizing the balance ofpowers, fiscal responsibility, and public accountability.

As the nation navigates frompandemic-aggravated economic crisis, the significance of these principles andCongress's role in preserving them cannot be stressed enough.

In an ideal world, checks andbalances to prevent misuse would shield confidential expenses. However, thePhilippines has seen instances where the absence of strong oversight allowedpotential misappropriation, even for regularly earmarked, not confidential,funds.

This leads to an essentialquestion: How can the government ensure these funds  serve their intended purposes exclusively?

Again, the secretive natureof confidential funds really makes them vulnerable to misuse. Withouttransparent oversight, there's potential for these funds to be redirected forpurposes other than those intended.

A working democracy thriveson transparency and accountability. Awarding civilian agencies confidentialfunds undermines these principles.

The growing chasm of trustbetween the public and the government is exacerbated by the fact that whileofficials can expediently spend P125 Million in 11 days, average Filipinos mustgrapple with a meager P610 daily minimum wage amid escalating living costs.

In a country like thePhilippines where resources are scant and every centavo is crucial, allocatingundisclosed amounts to civilian agencies is certainly not the wisest use ofpublic funds.

In the present  proposed budget, for instance,  a measly P1.1 Billion  was allocated for the MSME DevelopmentProgram. This translates to a little over P407 per small entrepreneur  based on the 1, 076, 279 MSMEs as of 2021.

Thus, these “confidential”resources could be better utilized in sectors where their impact can be openlyevaluated, such as more subsidies for state universities and colleges orfunding for public hospitals and aid to farmers and senior citizens.

While there are those whoargue that there are legitimate situations where such funds can probably provebeneficial, the potential for misuse is undeniable.

Former SC Justice AdolfoAzcuna, for instance, recently proposed that Congress should now pass alaw  establishing a transparent auditingframework that justifies allocation, defines intended use, and furnishes amechanism for subsequent accountability.

A strong Congressionaloversight was also proposed by Rep. Quimbo, with the formation of a committeecomposed  of “three members from the majority and one from the minority(that) would have complete access to reports” on CIF that are submitted to COA.

While certain operations mayremain confidential, ensuring accountability and curtailing misuse is equallyparamount.

“If the mandate does not include  the utilization of confidential orintelligence funds,  then suchagency  should not get any appropriation”for CIF,  argued Rep. Lagman.

Bayan Muna Chair NeriColmenares is even more assertive: “If these civilian agencies need to do an important project, why don’tthey ask for it in the budget just like other regular civilian agencies ratherthan lump this in an amorphous secret confidential fund.  Lump sum amounts in confidential funds arenot itemized and can be easily malversed.  There have been anomalies in the hundreds of billions of pesos inregular budget items that are audited, how much more if these were placed inbudget items that are not regularly audited like the confidential funds.  What if these funds were spent on personaltravel, or parties, or just went to the bank accounts of corrupt publicofficials?”

“No civilian agency should be allowed to have  covert and secret confidential funds, period.No government agency should be given confidential found without fullyaccounting for their previous spending of their secret funds,” he added.

His sentiment is reflected in the  proposed amendment to Section 81 of theapproved General Appropriations Bill submitted by the Makabayan Bloc memberswhich calls on Congress to “abolish confidential funds”  from the allocation of any “governmentagency, GOCC, Constitutional Body and Local Government Unit.”

For the Philippines tosuccessfully chart a course through its present challenges, fosteringconfidence in its fiscal management is crucial. And, reassessing the allocationof confidential expenses, particularly to civilian agencies, can no longer beignored or be subject to the usual  quidpro quo  transactions  between the executive and Congress.

Moving forward, dedicatedlegislators like Rep. France Castro, her Makabayan Bloc colleagues, independentHouse members like Rep. Edcel Lagman, and opposition Senators Risa Hontiverosand Koko Pimentel, certainly,  offer aglint of hope. Their efforts suggest that confidentiality and transparency can coexist,fortifying the nation's democratic fabric.

Their relentless push fortransparency and accountability in the handling of funds like the  confidential expenses have led to heightenedscrutiny and awareness, not only concerning CIF but also regarding the broaderbudgetary complexities.

Yet, the role of the publicis indispensable. An informed and engaged citizenry should be at the forefrontof holding their leaders to account and ensuring the judicious use of publicfunds. By demanding transparency and insisting on open discussion regardingwhere and how funds are spent, the public ensures that its best interests arealways at the forefront of fiscal decisions.

The series of BantayBudget  fora, both face-to-face andonline, conducted by civil society organizations on the  ongoing Congress deliberations are awelcome  initiative in this direction.

In this digital age, theproliferation of social media and the easy accessibility of information haveequipped the public with powerful tools to monitor governmental actions.Citizens, now more than ever, have the capability to rally for change, to voicetheir concerns, and to hold leaders accountable in real-time.

The case of the CIF debate isa testament to this. It's not just about questioning the rapid expenditure of asignificant sum in a matter of days. It’s about questioning the systems andprocesses that allowed for such an expenditure without the requisitetransparency. It's about ensuring that every peso allocated from the publiccoffers is spent judiciously and for the benefit of the many, not the few.

As in the past, it is stilltrue now: the future of the Philippines’ fiscal health and democraticprinciples rests not just in the hands of vigilant legislators but also in aninformed and proactive public. The CIF debate has illuminated the path forward— one where confidentiality in opaque budgetary allocations does not overshadowthe paramount importance of transparency and accountability. As the nationmoves forward, it is this delicate balance that will define its fiscal anddemocratic resilience.

**Carlos Isagani Zarate,  a budgetpolicy reform advocate,  was a formerDeputy Minority  Leader and  three-term member of the House ofRepresentatives representing Bayan Muna Partylist. He  now works as the Climate Litigation Adviserof the Manila Observatory-Klima Center and Senior Partner of the La Vina Zarateand Associates (LVZ Law).