Budget reform bill seen to get Congress nod by year-end

The Department of Budget and Management (DBM) is optimistic that a bill seeking to strengthen the country’s budgeting system will get the approval of the Congress before the end of 2017.

Budget Secretary Benjamin Diokno said the DBM is confident Congress would swiftly pass House Bill 5590 or the Budget Reform Bill as it has been tagged by the LegislativeExecutive Development Advisory Council (LEDAC) as one of the 13 priority bills that need urgent legislation.

“I’m pleased to report to you that this bill has been endorsed by the LEDAC as one of the 13 priority bills awaiting the certification of President Duterte such that they should be passed into law within the next five months,” Diokno told other government officials during a forum on the Budget Reform Bill in Manila yesterday.

“I’m confident that this bill will be passed before the end of the year,” Diokno said.

The DBM chief said the government’s budget reform program is also expected to be mentioned by the President in his State of the Nation Address on Monday.

House Bill 5990 aims to “strengthen government’s accountability to the people for its use of public funds through greater transparency and facilitates the delivery of direct, immediate and substantial services through a more efficient public financial management,” the DBM said.

According to Diokno, the passage of a Budget Reform Law is expected to increase the utilization of budget, and ultimately, result in improved delivery of service to the public.

“The changes initiated by the bill will impact not on just the way we prepare, implement and report the budget, but will more importantly allow us to achieve soon our goal of a prosperous, peaceful, safer and healthier nation,” he said.

Among the main components of the bill include the shift from obligation- to cash-based budgeting, and shortening the validity of appropriations from two years to one year.

“It will remove the culture where agencies relax once they obligate the budget. Now, they know that if they don’t implement it within the year, they will lose the budget,” Diokno said.

The bill also provides the introduction of an extended payment period and the establishment of a unified accounts code structure, among others.

“We will also create an office, the Office of Comptroller General. It’s like an internal auditor, unlike the COA (Commission on Audit) which is doing external audit. It will be placed under the Office of the President to speed up assessment and compliance,” Diokno said.