Updated (5:48 p.m.)
Leaders of the House of Representatives are not backing down from the move to block the Department of Budget and Management鈥檚 (DBM) proposed cash-based budget system but not really keen on a reenacted budget for 2019.
Majority Leader and Camarines Sur 1st District Rep. Rolando Andaya, Jr. has dismissed any plan to go for a reenacted 2019 budget, a possibility raised by Budget Secretary Benjamin Diokno and Senate President Vicente Sotto III.
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鈥淭here will be no reenacted budget scenario. We鈥檙e not moving towards that, we will avoid having the reenacted budget like leptospirosis,鈥� he said in a听Monday听press briefing.
Andaya added that the Cabinet-level Development Budget Coordination Committee (DBCC) should be 鈥渦pfront鈥� in relaying to the lower chamber the possible revenue and expenditure scenarios under its proposed P3.757-trillion 2019 cash-based budget because they were 鈥済etting mixed signals鈥� on the issue.
鈥淲e鈥檙e getting mixed signals鈥� on what their budget proposals are. So I think it鈥檚 about time na tumigil muna kami sa pag-hear ng budget and make sense of it (So I think it鈥檚 about time that we stop the budget hearings first and make sense of it),鈥� the lawmaker said.
The chamber has suspended their scheduled budget hearings because of the issue.
鈥淒apat maging upfront 鈥榶ung DBCC sa revenue scenario鈥�(The DBCC should be upfront about the revenue scenario鈥�)鈥� he added, noting that Speaker听Gloria Macapagal-Arroyo wants the same thing.
If Congress fails to pass the budget or the General Appropriations Act (GAA) before the听end of the year, the 2018 budget will be reenacted, a scenario which has historically given the sitting President wider latitude to spend funds already appropriated in the current year, automatically appearing as savings.
Appropriations committee chair Rep. Karlo Nograles has also brushed off the possibility of a reenacted budget, saying that the DBM still has time to correct their budget proposal and revert to an obligation-based budget.
Diokno earlier said that they could not submit another version of the 2019 budget that is 鈥渙bligation-based.鈥�
鈥淲e鈥檙e hopeful that the DBM will be able to address these concerns and the reason why we鈥檙e suspending the budget hearings is because the House has already created a decision to go to an obligations-based budget and because we鈥檙e going to the obligation-based, what use would be the hearings conducted鈥� if the assumptions used on the budgets were based on cash-based [budgeting]?鈥� Nograles explained in a briefing.
He also said he would meet with DBM officials later听on Monday听to discuss their concerns.
The lawmaker also warned that cash-based budgeting has affected some departments鈥� proposed key programs such as the Department of Health鈥檚 health facilities enhancement听program and the Department of Public Works and Highways鈥� flood-control and drainage projects.
READ: Lawmaker decries reduced number of flood-control, drainage system projects听听
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Albay 1st District Rep. Edcel Lagman, a former chair of the House appropriations panel who was also a Budget undersecretary, explained that under a cash-based budgeting, only projects and programs which are implementable for completion and payment within the fiscal year and during the three-month extension period after the yearend are included for funding in the GAA.
Meanwhile, under the obligation-based budgeting, the implementation, completion, and payment of the projects and programs in the GAA could be made beyond the yearend provided they are obligated within the fiscal year by contract or other modes of incurring an obligation.
鈥楾oo much too soon鈥�
Nograles said they are not totally 鈥渃losing down their door鈥� to the cash-based budget system, but he said this 鈥渕ight be too much, too soon.鈥�
鈥淭he concept is good, we all fell in love with the concept,听kasi听maganda, based on management point of view, based on utilization of funds, based on taking away the under-utilization and non-utilization鈥︹�� he said.
鈥淎ll we鈥檙e saying is maybe this 2019 budget is not the right time to do it. Let鈥檚 allow first the departments and agencies to catch up, improve their utilization. They鈥檙e already improving obligation rate听nila, let them improve their utilization, give them a chance,鈥� he added.
Nograles said government agencies should be allowed to 鈥渃atch up鈥� first, noting that their obligations rate has improved to 95 percent.
鈥淎ng听sinasabi听lang听po听namin (What we are saying听 is), it might be too much too soon. Remember in the previous administration,听nasanay听ang听mga听departments and agencies in a two-year lifespan budget 鈥榙i ba. Two years for them to consume, finish, utilize the budgets. So听naging听mabagal听po. Nagkaron ng underspending in the previous administration. When this new administration came in, we adjusted it to no more two years, one year听na听lang听po. So听within one year, you use it or lose it, that was the policy,鈥� he continued.
Nograles also said the budgeting system might be more appropriate for 2020.听 /ee