House OKs budget reform bill on final reading

The House of Representatives on Tuesday subsequently approved on second reading and on final reading the bill seeking to reform the budget process to ensure accountability and transparency.

With a vote of 158 in the affirmative, eight in the negative and one abstention, the chamber approved House Bill 7302 or the proposed Budget Reform Act, which President Rodrigo Duterte has certified urgent.

The bill aims to ensure accountability and integrity in using public resources by assuring transparency, fiscal responsibility, results-orientation, efficiency and effectiveness through an integrated system of planning, accounting, reporting and review of public finances.

It also enforces Congress' power to authorize all appropriations and promotes people's empowerment in managing public resources through right of information, and allowing them to contribute in the formulation and implementation of the government's financial affairs.

Under the measure, the Office of the President will be mandated to approve and submit to Congress a Statement of Policy, Medium Term Fiscal Strategy and Budget Priorities Framework to determine the priorities of the government.

From two years, the validity of the appropriation will also be reduced to one year with no provision for carry-over, except for a three-month Extended Payment Period in the following fiscal year to allow agencies to settle payments for goods and services delivered.

Aside from this, budgeting will be made annual cash-based from the current obligation-based which making the appropriations law the authority of agencies to disburse funds.

Because of this, agencies will be forced to effectively plan, link their plan to the budget, manage their procurement and strengthen their capacity to deliver goods and services within the fiscal year.

The bill will also implement the one-fund concept to strengthen fiscal management.  Under this, all funds that the government will receive will be placed under the national treasury.

The bill will also limit the use of the special purpose funds. These will only be used as national disaster risk reduction and management fund, contingent fund, and statutory shares of the local government unit.

Unprogrammed funds will also still be allowed under the bill. These will serve as standby appropriations to fill in for the funding requirements of other priority projects.

The measure will likewise allow special procurement as long as the president has already submitted the National Expenditure Program to Congress. This will ensure the proper use of budget, timely implementation of contracts and effective delivery of services.

Following the approval on final reading, the bill will then be submitted to the Senate for its own deliberation and approval. —KBK, GMA News