House passes bill extending validity of 2020 budget until next year on 2nd reading

The House of Representatives on Wednesday approved on second reading the measure seeking to extend the availability of funds under the 2020 General Appropriations Act until December 31, 2021.

In a vote of ayes and nays, the chamber approved House Bill 6656, authored by no less than Speaker Lord Allan Velasco, Majority Leader Martin Romualdez, Minority Leader Joseph Stephen Paduano, Committee on Appropriations chairman Eric Yap and six other lawmakers.

"The approval of this bill is earnestly sought to deploy the remaining significant funding to government agencies and equip them in delivering the delayed services and boosting the economic activity leading to economic growth and recovery," the explanatory note of the bill read.

Under the measure all appropriations authorized under the 2020 GAA, including budgetary support for government-owned and -controlled corporations (GOCC), will be available for release and disbursement until December 31, 2021.

At the same time, appropriations for infrastructure capital outlays, including those for subsidy releases for GOCC, will be valid for obligation under December 31 next year. They must also be completed not later than the same date.

Appropriations for maintenance and other operating expenses, as well as other capital outlays, will likewise be extended until December 31 next year, with their delivery, inspection and payment made not later than the same date.

In seeking the extension of the validity of the said funds, the lawmakers cited the Department of Budget and Management National Budget Circular 580 issued in April this year mandating all executive departments and agencies to assess which projects could be deferred in order to preserve funding for coronavirus disease (COVID-19) response.

This circular, in turn, caused an interruption in the execution of government programs and services intended for this year, they said.

"As we face the final quarter of 2020, there are appropriations that have not been released to and/or obligated by government agencies. If this is left unaddressed by year-end, the unexpended funds automatically revert back to the National Treasury," the bill read.

"In order to fully utilize the allotted funds of the country for this year, this bill seeks to extend the availability of the General Appropriations Act of 2020," it added.

Earlier in the day, the House and the Senate also ratified the bicameral conference committee report on the proposed P4.5-trillion national budget for next year.

With the ratification, the budget bill now only needs the signature of President Rodrigo Duterte in order to become a law.  -- BAP, GMA News