Senate OKs extension of 2020 budget on third reading

Voting 18-0, the Senate on Tuesday approved on third and final reading a bill seeking to extend the validity of the 2020 General Appropriations Act until next year.

Under Committee Report 158, taking into consideration House Bill No. 6656, the 2020 budget will be available for release and disbursement until December 31, 2021.

Senate Committee on Finance chairperson Sonny Angara said P110 billion under the current budget is yet to be obligated, based on Department of Budget and Management data as of November 30.

A huge chunk of still unobligated funds in the 2020 budget is under the Department of Education, according to the senator, with P60.7 billion of its P553 billion budget for the year remaining unused.

Another P3 billion under the Department of National Defense remains unobligated; P2.7 billion under the Department of Public Works and Highways, and P1.79 billion under the Department of Agriculture, he added when asked to enumerate some national government agencies.

Allowing these to lapse in the middle of a pandemic and economic recession would have "no small impact," the sponsor of the measures said.

"With the adoption of the cash adoption system, that means this P110 billion would need to be released and obligated before the year ends or else these are returned to the national treasury," Angara said.

"With just a few weeks left in the year it would be extremely difficult for agencies with pending releases to submit their required documents and secure the necessary approvals," he added.

While Senate Minority Leader Franklin Drilon and Senator Lacson pointed out that the cash-based budgeting system was implemented to compel agencies to act on budgetary authorizations within the year, they both supported the extension of the 2020 budget given the COVID-19 situation.

Drilon introduced an amendment which states that "the balances of fund transfers between agencies, instrumentalities and government-owned and controlled corporations  which, while obligated, remain unused, unutilized, unexpended, and undisbursed as of June 30, 2021 shall revert to the unappropriated surplus of the general fund."

His amendment also stated that agency outsourcing requests or agreements by agencies, instrumentalities and/or government-owned and controlled corporations with Philippine International Trading Corporation shall not be allowed.

"Any balances of fund transfers in the books of the Philippine International Trading Corporation shall revert to the unappropriated surplus of the general fund upon the effectivity of this act," it added.

The Senate likewise approved the extension of validity of P38 billion worth of appropriations under the Bayanihan to Recover as One Act which would expire on December 19.

Both measures were certified urgent by Malacanang on Monday and were approved by the House of Representatives on final reading on the same day.

The extension of the two appropriation measures would push the spending authority of the government to about P4.8 trillion next year, including the P4.5 trillion 2021 budget and the unprogrammed funds under it. -NB, GMA News