The power of the purse
Congress has the power of the purse. This theory has always been part of a lengthy discussion in political law on the doctrine of separation of powers. Separation of powers is explained simply by saying that the Executive holds the power of the “sword,” the Judiciary the power of the “pen,” while the Legislature has the power of the “purse.” Under the 1987 Constitution, it is Congress that has the power to approve the national budget under Section 24, Article VI, which states that “all appropriation, revenue or tariff bills, bills authorizing increase of public debt, bills of local application, and private bills shall originate exclusively in the House of Representatives, but the Senate may propose or concur with amendments.
True, Congress must act on the proposed national budget and pass a general appropriations bill to be signed by the President into law, which will then be called the GAA or the General Appropriations Act. But, does Congress really possess the power of the purse?
In theory, the power belongs to Congress. But in reality, observers note, the power of the purse is wielded by the President or the Executive Department. The realities on the ground show that budget legislation or the enactment of a general appropriations bill is only a part of the entire budget cycle, which consists of budget preparation, budget legislation, execution and control, and accountability. Congress does not actually review all items in the budget since there are automatic appropriations and other items that Congress will no longer deliberate and scrutinize.
While Congress has the power to approve the appropriations bill, the Executive prepares and submits the budget to Congress. Congress cannot increase appropriations proposed by the President, but it can reduce them or realign allotments as long as the total is maintained. The Executive, however, can override the mandate of the GAA as enacted by Congress. Let us not forget that the President can also exercise his power to veto an item in the appropriations bill with Congress needing a higher majority to override the President’s veto.
The recent turn of events in Congress where the passage of the appropriations bill is made a hostage in the squabble for speakership shows that the President is not completely powerless in case of inaction by Congress. Using his powers under the Constitution, the President has called for a special session of Congress to avoid delays in passing the budget for 2021.
So, who really has the power of the purse?
According to former National Treasurer Leonor Briones, now the Education Secretary, the President has the power of the purse while Congress has the power of the coin purse.