Lawmakers trash budget reform

CONGRESSMEN are up in arms over the proposal of the Department of Budget and Management ( DBM) to shift from obligation to cash- based budgeting in 2019.

During deliberations on the proposed P3.757- trillion budget for next year, congressmen realized the impact of an earlier resolution they approved seeking to institutionalize budget reforms, including a cash-based budgeting system.

A cash-based budgeting system means fund allocations are based on availability of money and that government agencies have to spend what’s allotted and implement their projects within a year.

Budget Secretary Benjamin Diokno is quite excited about the budget reform which he has described as revolutionary because it would accelerate spending, which is a drastic change from the current obligation- based budget that allows spending the funds for two years.

But lawmakers are not convinced. Some congressmen said the proposed cash-based budgeting system has resulted in a P93billion decrease in the budget of the Department of Public Works and Highways (DPWH).

The budget for the Department of Education (DepEd) was also P77 billion lower while that of the Department of Health (DoH) was P25 billion less than last year’s allocation.

Because of this, congressmen agreed during a caucus last week to recall House Bill 7302 from the Senate because of their assertion that cash- based budgeting would hamper most of the infrastructure projects of the Duterte administration under the “Build, Build, Build” program, contrary to what Diokno has been saying in pushing for the shift from obligation-based budgeting.

Congressmen opposing cashbased budgeting said the ongoing budget deliberations in the House “have opened our eyes to the drawbacks of the proposed cash-based budgeting system.”

This development showed that HB 7302 was not well thought out, just like other measures such as the Tax Reform for Acceleration and Inclusion (TRAIN) that has raised prices of basic consumer goods and which some lawmakers wanted to be suspended to ease the impact on consumers.

Lawmakers are, of course, worried that a P93 billion cut in the DPWH budget would mean P93 billion worth of projects that would not be implemented in their congressional districts. That’s a lot of money to lose during an election year.

They did not realize this when they were discussing HB 7302. They did not think then of the consequences and potential problems that a cash-based budgeting system would bring about.

A possible dangerous outcome of the opposition from the House would be a failure by Congress to enact by the end of the year the new budget for 2019. If that happens, the government would operate on a re-enacted budget which would give the President the authority to juggle funds for projects and programs that have been completed.

From the news reports, it would seem that the cash-based budgeting system did not have the endorsement of all the Cabinet members.

For instance, Prospero de Vera,

- sion on Higher Education (CHED) has raised objections, arguing that the academic year, which begins in

year used in budgeting, which from January to December.

CHED, which proposed an P83.02 billion allocation for 2019, is getting only P50.44 billion under the DBM- endorsed budget, with the agency’s scholarship grants suffering deep cuts.

Congressmen want the DBM to revise the budget proposal and revert to the obligation-based bud-

is

of the Duterte administration for more infrastructure, improved education and health services.

The lawmakers said they be-

of P624.4 billion for 2019 is the antithesis of the “Build, Build, Build” project of Duterte.

“The people expect more infrastructure, more assistance from government. Instead, the budget presented by the DBM is all about ‘Slash, Slash, Slash’ which would result in fewer of everything,” said Rep. Karlo Nograles of Davao City, chairman of the House appropriations committee.

The bargaining for the 2019 budget has begun. The DBM apparently failed to consult legislators on the allocations for their respective districts. Who knows, we may yet see the resurgence of the “pork barrel” funds in another form and shape in the 2019 budget.

With reports from the Commission on Audit (COA) regarding misuse of funds by several agencies in the previous year, public vigilance is in order to make sure that funds are not wasted and misused.