House Appropriations Committee Chairperson Rep. Karlo Nograles on Friday was adamant that Congress’ ongoing clash with the Department of Budget and Management over the 2019 budget would not result in a reenacted budget, even as he assured the public that Congress would pass a General Appropriations Act that would benefit the people and would be consistent with the development agenda of President Rodrigo Duterte.”©”©”©”©
Lawmakers in the House have crossed party lines to oppose the DBM’s new cash-based budgeting system, which have resulted in across-the-board cuts in the budgets of critical agencies like the Department of Education, the Department of Health, and the Department of Public Works and Highways (DPWH).
The budgets of the said agencies were reduced by P77 billion, P35 billion and P95 billion, respectively.
“Our job in Congress is to ensure the passage of a budget that is in line with the vision of the President, a budget that benefits all Filipinos, especially those in the regions. Dito sa cash-based budget ng DBM, lugi ang Pilipino, lalo na ang mga probinsyano [in this cash-based budget of the DBM, the Filipinos, especially probinsyanos, are shortchanged],” lamented Nograles.”©”©”©”©
According to Nograles, the ongoing budget deliberations in the House of Representatives “have opened our eyes to the drawbacks of the proposed cash-based budgeting system.””©”©”©”©
“This is the complete opposite of the ‘Build, Build, Build’ thrust of the Duterte Administration. The people expect more infrastructure, more assistance from government. Instead, the budget presented by the DBM is all about ‘Slash, Slash, Slash,’ which would result in fewer of everything: Fewer roads, fewer classrooms, fewer government hospital facilities,” Nograles said.
Nograles said many of his colleagues in the House were determined to exhort the DBCC “to amend the budget to one that is more attuned to the situation on the ground.”
“We will revert to an obligations-based budget. Hindi lang naman kami sa Kongreso may isyu sa cash-based budgeting; kahit ang mga myembro ng kabinete na humarap sa amin, may mga isyu din dito. (It is not just us in Congress who have issues with cash-based budgeting; even members of the cabinet who have faced us have issues, too.) The requirements of a cash-based budget simply do not reflect the realities of governance,” Nograles added.”©”©”©”©
In separate budget hearings this week, several points were raised with regard to the inapplicability of the new DBM budget scheme.”©”©”©”©
Commission on Higher Education (CHED) Officer-in-Charge Prospero de Vera III told lawmakers on Thursday that the cash-based budget system would “severely hamper” the implementation of Republic Act 10931 or the Universal Access to Quality Tertiary Education (UAQTE) Act.”©”©”©”©
De Vera said CHED would encounter problems with the shift to a cash-based budget system as the fiscal year and academic year are not aligned.
“We will be severely hampered in implementing RA 10931… first in estimating reimbursements, second in determining which reimbursements will be given, and third in utilizing the budget allocated by Congress.
”In another hearing, DPWH Secretary Mark Villar admitted that the shift to a cash-based budgeting would be “challenging” for his agency.”©”©”©”©
Villar said his department has had to make adjustments due to the cash-based budgeting system, as it requires disbursements to be made within the fiscal year.”©”©”©”©
“We have to make sure that our timelines are extremely accurate. We have to make sure preparations [for] our projects are all on time… It’s more challenging,” said the former lawmaker.”©”©”©”©
Nograles, a three-term congressman, said that experience has shown that such scenarios, while ideal, were difficult to guarantee.”©”©”©”©
“Many projects do not get completed on time for various valid reasons, like justifiable delays in procurement, legal challenges, fund release problems, and even the weather. We recognize that the DBM wants more spending efficiency, but this can be achieved through other means, without gutting the budget.”
