Gov’t scraps cash-based budgeting system; reenacts 2018 budget

House Majority Floor Leader Rolando Andaya Jr. INQUIRER.net file photo / Noy Morcoso

(Updated, 2:56 p.m.)

NAGA CITY, Camarines Sur, Philippines — The government will no longer push through with the cash-based budgeting system for the 2019 national budget, House Majority Leader Rolando Andaya Jr. said on Thursday.

The Camarines Sur 1st District congressman said President Rodrigo Duterte already signed a resolution extending the life of 2018 expenditure program. Thus, the country would operate on a reenacted budget this fiscal year.

“Unang-una, gusto ko lang ipaabot sa inyo, ‘yung cash-based budgeting system mukhang hindi na po matutuloy next year (2019) dahil pinirmahan na po ng ating mahal na pangulo ‘yung resolusyon na ineextend yung 2018 budget this year,” Andaya explained during a hearing into budget anomalies here.

READ: House panel begins probe on 2019 budget ‘anomalies’

“Ibig sabihin nabasura na ‘yung sistema… In effect, the President, by signing that resolution extending the life of the 2018 budget, does away with the cash-budgeting system,” he added.

Shortly after Andaya’s statement, Budget Chief Benjamin Diokno belied his statement saying the 2019 budget would still be cash-based.

READ: Diokno refutes Andaya: 2019 budget will be cash-based

But Andaya insisted on his information, saying Diokno was probably unaware because he was out of the country.

“Siguro galing siya sa abroad eh, baka hindi niya alam. So, bahala siya sa buhay niya,” he told reporters.

Albay 1st District Rep. Edcel Lagman, a former chair of the House appropriations panel who had been a Budget undersecretary, earlier 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 General Appropriations Act (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.

The country operates under an obligation-based budgeting system in the past years. /jpv