MANILA — The House of Representatives has reached a compromise with the Department of Budget and Management (DBM) to adopt a “hybrid” budgeting system for the 2019 national budget, House Majority Leader Rolando Andaya Jr. said Tuesday.
In a press conference, Andaya said Budget Secretary Benjamin Diokno has agreed to push for a hybrid budget system, which shall be a combination of cash-based and obligation-based budgeting system.
The agreement was reached after a luncheon between Diokno, Finance Secretary Carlos Dominguez III, Executive Secretary Salvador Medialdea, and House appropriations chair Karlo Nograles.
“We’ll work with them and cooperate para wala nang (to clear out) misunderstandings. We have given each other the merits of our proposals, and we’ve agreed on it,” Andaya said.
“So, tuloy na ho yung sinasabi natin na “hybrid” na budget (So, the so-called “hybrid” budget will push through),” he added.
In an annual cash-based budget, contracts intended to be implemented for the fiscal year should be fully delivered by the end of the year while the multi-year obligation-based budgeting system allows the government to enter into a contract or “obligate funds” without requiring the actual delivery of goods and services within the year.
He explained that under the proposed hybrid system, the agency shall be given up to a six-month extension to accomplish a project and disburse the allocated budget.
The House of Representatives resumed its budget deliberations on Tuesday after suspending it temporarily due to lawmakers’ concerns over the proposed cash-based budgeting system.
Andaya said the House and DBM likewise agreed to restore the budget cuts in key government agencies, including the Department of Education, the Department of Public Works and Highways, and the Department of Health.
“Oo nag-agree kami na may mga ibabalik (Yes, we’ve agreed to restore some cuts). We will help each other in finding areas where we can source these cuts,” Andaya said, noting that realignment is a plausible option.
He also said Malacañang would submit to Congress a supplemental budget, which will fund the implementation of the Bangsamoro Organic Law, as well as the Supreme Court ruling on increasing the internal revenue allotment of local government units.
Andaya said around PHP140 billion would be needed to finance these two items.
After ironing out the budgeting system issue, Andaya expects that the 2019 national budget would be approved on October 12. He assured that there will be no reenacted budget for next year.
Earlier, Andaya mentioned that President Rodrigo Duterte has opened the lines of communication with the executive branch to discuss the possible agreement on how the budget for 2019 will be executed. (Filane Mikee Cervantes/PNA)
