MEMORANDUM

FOR : PRESIDENT JUAN Z. SMITH

THRU : MARIA D. DE LA CRUZ

Executive Secretary

CC : JOSE P. RIZAL
Cabinet Secretary

FROM : MARY A. MAKILING

Secretary

SUBJECT : Recommendation for veto of the enrolled House Bill (HB)

No. 1111 and Senate Bill (SB) No. 2222

1. Action requested. This is to respectfully recommend for the President to

veto the enrolled bill granting special benefits to the selected personnel of
the Executive Branch.

2. Background. The House of Representatives and the Senate ratified the

reconciled version of HB No. 1111 and SB No. 2222, which grants special
benefits, in addition to the existing benefit package provided for by the
law, to the selected personnel of the Executive Branch. The bill specifically
covers temporary and permanent personnel with Salary Grade of 15 to 18
who are directly hired by the Agency they are currently reporting.

3. Justification for recommendation for veto. The Department of Finance

strongly recommends that the President exercise the power to veto the
bill, pursuant to Article VI, Section 27 (1) of the Constitution, for the
following reasons:

a. The proposal provides disproportionate benefits among the

members of the Executive Branch. If passed into law, it may be
deemed as an extraordinary benefit that is granted only to
selected personnel of a particular agency. Consequently, it may
cause other offices of the government to clamor for the same kind
of benefits. 
Recommendation for veto of the enrolled House Bill (HB)
No. 1111 and Senate Bill (SB) No. 2222
Page 1 of 2
 b. The proposal provides no other funding source than the General
Appropriations Act. The proposal will be an expense on the part
of the National Government without a funding source other than
the taxpayer or incremental borrowing. This will be detrimental to
the fiscal position of the government.

Instead of giving a piecemeal grant of benefits limited to selected

personnel in the government, we recommend strengthening the
existing compensation and benefit package under existing rules to
provide a more equitable and fair reward system across the
government agencies.

For the President’s consideration.

Thank you.

MARY A. MAKILING
Secretary

Recommendation for veto of the enrolled House Bill (HB)

No. 1111 and Senate Bill (SB) No. 2222
Page 2 of 2