Debates on the proposed budget is the busiest time for the Lower House. The Committee on Appropriations commenced with a briefing by the Development Budget Coordination Committee last week.
The General Appropriations Bill proposes P3.757-trillion budget, with cash-based appropriations of P3.468 trillion. The Department of Budget and Management explained that the shift from multi-year obligations-based to annual cash-based budgeting “limits incurring obligations and disbursing payments for goods delivered and services rendered, inspected, and accepted within the fiscal year.” With this new budgeting scheme, project implementation is only within a year, with an “Extended Payment Period” of three months after the fiscal year. Ideally, the cash-based budgeting system shall improve budget utilization and reflect the annual outputs of the government.
The two highest receivers of allocated funds under the 2019 proposed budget receive a significant increase from their 2018 budget. The education sector receives the biggest share of the budget at P659.3 billion, which is P72.2 billion higher than its cash-based equivalent in 2018. The Department of Public Works and Highways receives the second biggest share of funds at P555.7 billion, which is 68.2 percent higher than its P225.5-billion budget for the previous year.
It is noticeable that the 2019 proposed budget is relatively lower than the 2018 national budget worth P3.767 trillion. The health sector receives a budget cut of 13.8 percent, from P155.2 billion in 2018 down to P141.4 billion for 2019.
As the House Minority Leader, I am concerned with the actual results and effectiveness of the new budget scheme and the slight decrease in the budget. Despite DBM Secretary Benjamin Diokno’s assurance about their expected positive results of the new budgeting scheme, I am quite worried about how the budget will be fully utilized for the effective implementation of government projects and programs.
With the enactment of the first package of the Tax Reform for Acceleration and Inclusion Law, the Bureau of Treasury reported a surplus in revenue collection in the first half of 2018. The total revenue collection reached P1.41 trillion, which is reportedly 9 percent higher than the target for the inclusive period. Cabinet members even boast of the improved fiscal capacity of our country.
I have repeatedly expressed my “revenue neutral” stand on the implementation of the TRAIN Law, wherein the government should only spend what it earns. Because of the TRAIN Law, we are even earning more, and the consumers are unfortunately suffering its consequences. But now that it is here, we have more money to spend. Therefore, it seems odd that we raised taxes and projected higher income, but we are cutting the budget for our people.
The House Minority will not take this matter lightly. We will be proactive in scrutinizing the proposed budget during the committee and plenary deliberations. We will demand transparency and integrity in the fiscal activities of the government and ensure that government agencies will effectively utilize the budget and implement projects and programs.