Lagman sees reenacted 2018 national budget for next year

Albay Representative Edcel Lagman sees a reenactment of the 2018 national budget following the suspension of the House deliberations for the proposed P3.757-trillion General Appropriations Act (GAA) for next year.

In a statement, Lagman said the House of Representatives and Budget Secretary Benjamin Diokno are headed to an "impasse" after the Department of Budget and Management adopted a "cash-based" budgeting system for 2019 instead of "obligations-based."

Lawmakers from the chamber are one in opposing the said budgeting system, as it "has resulted to serious budgetary cuts," he said.

"The looming deadlock makes a reenactment of the 2018 GAA imminent as the remaining budget hearings have been suspended and the preparation of the General Appropriations Bill (GAB) for first reading has been stopped pending the necessary amendments by Diokno and the Executive of the President’s budget proposal for the next fiscal year," Lagman said.

Cash-based budgeting means that agencies have only one year with a three-month extension after the fiscal year to settle payments for the goods and services delivered.

In obligations-based budgeting, however, the funds for the fiscal year are valid for two years instead of one year in cash-based.

House Committee on Appropriations chair Karlo Nograles on Thursday said a resolution is being circulated at the chamber to recall their approved budget reform bill that has already been transmitted to the Senate.

Nograles said the budget reform bill has resulted in cash-based budgeting, but Lagman said such innovation is without any legal basis, as "the budget reform bill authorizing the annual cash-based appropriations is still pending with the Senate."

Diokno pointed to the low absorptive capacity of some agencies in justifying the budget reductions, particularly the slow cash disbursements for payment of completed projects.

But Lagman said slow cash disbursements alone do necessarily translate to low absorptive capacity, as there are other factors affecting it.

These include the belated release of appropriations subject to conditions, inclement weather, security situation in armed-conflict areas and right-of-way problems, among others.

"These problems are, moreover, not insurmountable, and do not justify drastic budget cuts," he said.

"The appropriations ceiling in the President’s 2019 budget proposal crafted by Diokno’s department, which Congress must not exceed by constitutional restriction, is low due to the new system and unduly constricts the congressional power over public expenditure," he added.

Nograles, however, earlier promised not to have a reenacted budget for 2019.

"Our responsibility and duty to our constituents is clear: siguraduhin na ang pera ng bayan ay magamit sa ikauunlad ng ating kababayan," he said.

"We will not allow our countrymen to be shortchanged and we will do what must be done to ensure that they get the budget they deserve," he added.

Nograles is even optimistic that the national budget for 2019 will still be passed on time despite the suspension of the House budget deliberations. — Erwin Colcol/RSJ, GMA News