Manila Bulletin

Solons stand firm vs ‘cash-based’ budgeting

- By CHARISSA M. LUCI

The Duterte administra­tion should revert to “obligation­based” budgeting to avoid jeopardizi­ng the delivery of basic services, the House of Representa­tives said Thursday.

The administra­tion has submitted to Congress a “cash-based” 13.757trillio­n national budget for 2019.

At Thursday’s House Committee on Appropriat­ions’ deliberati­on of the Department of Public Works and Highways (DPWH) budget for 2019, Davao City Rep. Karlo Alexei Nograles said the Lower Chamber rejected the cash-based budget due to its impact on health, education, and infrastruc­ture.

“We are not going to support the cash-based budget,” he told DPWH Secretary Mark Villar whose agency’s budget was cut by 15 percent for 2019.

Villar attributed the 195.2-billion reduction in the DPWH budget to the cash-based budgeting system. “It is disburseme­nt-based budget, not an obligation-based budget,” he said, citing that they already made necessary adjustment­s in their proposed budget in anticipati­on of the cash-based budgeting system.

Asked by Zamboanga City Rep. Celso Lobregat how the DPWH can continue with the “Build, Build, Build” program when their capital outlay was reduced by more than 190 billion, Villar said, “We are adjusting to this new policy. It is the mandate of this department that if they tell us to disburse in one year, we have to adjust our assumption­s based on that.”

The DPWH proposes a total of 1544.521 billion for 2019, which is 14.63 percent lower than the 1637.864 billion budget this year.

During the budget deliberati­on, Albay Rep. Edcel Lagman called on his colleagues to be “united” in supporting a “realistic” budget of the DPWH to help the Duterte administra­tion pursue its “Build, Build, Build” agenda.

“We must restore the cuts in the DPWH submittal made by DBM. We must not only restore the excised allocation­s but must augment the DPWH’s budget once found to be justified and imperative,” he said, noting that the DPWH is one of the major casualties of the administra­tion’s “budgetary calistheni­cs”

He expressed concern that the reduction includes a drastic slash on locally funded projects. “We appreciate the announceme­nt of the new leadership of the House that no district shall be punished with a zero infrastruc­ture allocation. But how can this be completely pursued if the budget of the DPWH is not adequate even as the lost infrastruc­ture projects this year because of the zero allocation­s cannot be offset by additional funding next year if the proposed budget of the DPWH is frozen at its present decimated level,” Lagman said.

In a separate interview, Nograles disclosed that the House “unanimousl­y” agreed to withdraw House Bill (HB) 7302 or the Budget Reform Bill they passed on March 20, 2018 that would call for cash-based budgeting.

The House leader showed the draft copy of the two-page resolution to the reporters, which is being signed by the House members and set to be filed on Monday. The resolution, authored by Nograles, Majority Floor Leader and Camarines Sur Rep. Rolando Andaya Jr., and Albay Rep. Joey Salceda, requests the Senate to return HB 7302 “in order for the House of Representa­tives to introduce further perfecting amendments thereto.” The resolution has the support of Speaker Gloria Macapagal Arroyo, Nograles noted. HB 7302 is titled “An Act to Reform the Budget Process by Enforcing Greater Accountabi­lity in Public Financial Management (PFM), Promoting Fiscal Sustainabi­lity, Strengthen­ing Congress’s Power of the Purse, Institutin­g an Integrated PFM System and Increasing Budget Transparen­cy and Participat­ion.” The engrossed copy of HB 7302 was transmitte­d to the Senate on March 22, 2018.

Nograles said that if the Budget Reform bill will be passed, it would result in cash-based budgeting system.

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