Senate OKs extension of 2021 budget until end of 2022 on final reading

Voting 22-0-0, the Senate on Monday approved on third and final reading the bill seeking to extend the P4.5-trillion 2021 General Appropriations Act (GAA) until December 31, 2022.

House Bill 10373, as amended by the Senate, provides that all appropriations authorized by the 2021 GAA, including the budgetary support to Government-owned and -controlled corporations (GOCCs) and financial assistance to local government units (LGUs) shall be available for release and obligation until the end of December next year.

However, the bill does not extend the appropriations for the personnel services. This means these funds should be released by December 31, 2021.

On the other hand, appropriations for the statutory shares of LGUs shall be available for release, obligation, and disbursement until all the budget specified were fully utilized and fully disbursed.

The Senate version of the bill also provided that the construction of infrastructure projects, delivery of goods and service, and inspection and payment shall be made not later than the end of December 2022.

After the end of the validity period, all unreleased budget and unobligated allotments “shall lapse” while unexpended or undisbursed funds shall revert to the general fund.

“Except for transfers between LGUs, all balances of fund transfers between or among agencies, instrumentalities, GOCCs and LGUs, which, while obligated but not actually used, utilized, expended or disbursed to pay for completed construction, goods delivered, and services rendered, inspected and accepted as of December 31, 2022, shall revert to the unappropriated surplus of the general fund,” the bill further stated.

The Department of Budget and Management (DBM) will also be authorized to issue necessary guidelines for the implementation of the cash-budgeting system.

Under the cash-budgeting system, all appropriations indicated in every GAA should be utilized until the end of every fiscal year. Otherwise, the funds shall revert to the National Treasury.

The proposed measure will also require a report on the releases, obligations, and disbursements to the speaker of the House of Representatives, the Senate president, and the chairpersons of the House appropriations committee and the Senate finance committee. —KBK, GMA News