Aquino admin to push govt agencies to spend budget allotments in 1 yr.

The Aquino administration intends to place a one-year limit on government agencies to spend their budget allocations as programmed in the General Appropriations Act.   Government wants to enforce policies to facilitate program implementation and budget execution, said Budget and Management Secretary Florencio Abad.   Thus, by 2013, what is termed as lapses or unspent portions in the national budget would no longer be carried over into the succeeding year.   Apart from the one-year provision, the Budget Department is also spearheading other reforms in the 2013 national budget, including the elimination of agency lump sums, suspension of releases for agencies without reports, and the establishment of the General Appropriations Act as a release document.   “This way, it will be easier for us to monitor the progress of funded programs and ensure efficiency in future budget preparations,” Abad said.   This will ensure that government agencies use their allotments as programmed, the Budget chief noted. Transparency and accountability   Budget items are subject to a one-year lapse period, which allows government agencies to carry over into the following year their unspent portions.   But capital outlays for goods and services that include infrastructure, vehicles, equipment and property, as well as maintenance and other operating expenses that cover daily expenses and supplies and utilities are valid for two years.   “By setting a one-year lapse period for allotments, we hope to encourage better agency performance and push departments to optimize their allocations,” Abad said, adding that the proposed one-year limit would increase transparency and accountability in public fund management.   “The one-year limit will help the Department of Budget and Management keep a closer eye on the status of agency programs,” Abad added.    “It should also make budget preparations faster. Once allocations are plotted out over a smaller time frame, an agency’s budget requirements will naturally be easier to determine,” Abad said. — VS, GMA News