Amended procurement law to speed up gov’t spending: Diokno

MANILA -- Budget and Management Secretary Benjamin Diokno expects further improvement of government agencies’ absorptive capacity and its impact on expenditures given the amendments in the government’s procurement law.

In 2017, government spending reached P2.823 trillion, up 11 percent from the previous year's P2.549 trillion. It was only 2 percent short of the P2.91-trillion government spending target.

In an interview by journalists at the sidelines of the two-day 2018 procurement summit (March 26-27) at Crowne Plaza Manila Galleria, Diokno said underutilization of government budget had been significantly addressed under the current government.

He said underspending reached around 14 percent in recent years but it has gone down to just around 2 percent as of last year.

“That’s history. We are fast now,” he said.

In his speech, Diokno said amendments to the Implementing Rules and Regulations (IRR) of the Government Procurement Reform Act, otherwise known as Republic Act (RA) 9184 in 2016, addressed issues such as the low number of bidders and poor planning of the procuring entity.

These issues, he said, caused poor government spending.

“We believe that efficient, transparent and effective procurement greatly contributes to economic growth in a country. Without efficient procurement, money gets wasted on a very large scale. It is essential therefore that the government must carefully and judiciously plan its procurement activities for the successful implementation of its projects,” he said.

Diokno said the state is the largest buyer in the market since a huge portion of government budget is allocated for the purchase of goods, tapping of consulting services, and construction of infrastructure projects.

“With the recent amendments to the IRR of RA 9184, it is hoped that this will expedite government procurement and spending in government,” he said, citing also the need for greater coordination with the private sector.

“Different stakeholders have different, complex interests and incentives related to procurement reform. Thus, for a more responsive government acquisition system, it is essential to recognize the important roles that each stakeholder plays,” he added. PNA