The "cuts" resulting from the cash-based budget transition in 2019 confound solons



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LAWMAKERS on Tuesday questioned the "budget cuts" in the proposed national budget for 2019, including that of the Department of Health (DOH), the Department of Education (DepEd) and the Department of Public Works and of the Road (DPWH). At the start of the hearings on the 2019 National Budget Project, Karlo Alexei B. Nograles, chairman of the House Appropriations Committee, led members of Congress who were concerned about the "reduced budgets" of the main agencies. They were appalled by the fact that the proposed national budget for 2019 at P3,757 billion was 10 billion pesos less than the current 2017 General Appropriations Act of 7,767 billion trillion.

Nograles also noted that he expected a budget of at least 3.9 billion pound.

"Let's talk about the elephant in the room.You just asked for a budget of 10 billion pesos in absolute terms.We are all concerned about the cuts in various ministries and agencies, namely the Ministry of Finance. Defense, the Ministry of the Environment and the DPWH, "said Nograles to Budget Secretary Benjamin E. Diokno, Chair of the Development Budget Coordination Committee.In 2019, it is difficult to explain to the Filipinos that we have reduced the classrooms, reduced barangay health units, reduced the roads since we go to the checkout [budget]"he said." All these concerns could have been resolved if the DBCC came to us with a larger budget. "

Nograles noted that the budget of the Ministry of Health decreased by 35 billion piastres, the DepEd budget by 77 billion and the DPWH budget by 95 billion. this time, l e Department of Social Protection and Development and the Elections Committee also received budget cuts to 5 billion pesos

"Revolution"

However, Diokno defended the "revolutionary" displacement from the country. Cash-based budgeting, saying that it is "misleading" to compare the proposed cash budget for 2019 with the budget based on the 2018 bonds.

On budget cuts, especially on the DOH, DPWH and DepEd, Diokno said the cash-based organizations' budget was based on the agency's absorption capacity and on the preparation of their targeted programs or projects to be implemented during the year. Fiscal year.

However, data from the proposed national budget for 2019 The budget and management showed a different picture, especially for the budgets of the DPWH and the DSWD, because the DBM presented the cash equivalent of the budget from 2018 and compared it to the 2019 Nation Based on DBM calculations, the cash budget of the DPWH increased by 25.8%, from 11.9 billion pesos, to 555.7 billion pesos, against 441.8 billion pesos

. The budget of the DSWD has increased by 5.4%, from 8.9 billion pesos to 173.3 billion pesos, against 164.4 billion pesos

The proposed budget for the Ministry of Defense has been reduced of 8% or 12.3 billion De Diogo repeatedly told lawmakers that the correct comparison, or apples to apples, is to see the 2019 budget vis-à-vis the cash equivalent of the 2018 budget

Diokno He reaffirmed that the 2019 budget based on cash transfers is even 13 percent higher than the monetary equivalent of 2018 to 3 324 billion pesos.

Prior to the transfer, the country was performing budgeting based on bonds. The two types differ in terms of time horizon or implementation period and payment period.

According to the new type of budgeting to be followed by the government, the project contracts, programs to be implemented for the fiscal year delivered, inspected and accepted by the end of the year. 39, financial year. Payment should also be made during the fiscal year and up to an extended payment period of three months after the fiscal year for goods and services accepted no later than 31 December of the financial year.

On the other hand, in the bond-based budgeting system contracts awarded during the fiscal year can be delivered even after the end of the year; and inspection, verification and payment are made during and after the fiscal year.

Thus, according to Diokno, this change is necessary in order to promote discipline among the organisms. It strengthens the credibility of the government vis-à-vis its suppliers and subcontractors, supports the government's expansionist policy by tackling under-spending, modernizes the country's budget system and places it in line with international standards.

Cash credits will be returned to the Treasury. -appropriate if the agencies fail to complete the projects intended to be implemented during the financial year.

Other members of the DBCC, including Finance Secretary Carlos G. Dominguez III, Governor of Bangko Sentral ng Pilipinas (BSP) Nestor Espenilla Governor Diwa Guinigundo and Secretary of Socio-Economic Planning Ernesto M. Pernia were also present for facing the committee reviewing the proposed budget

The DBCC is an inter-agency body that determines overall economic objectives, spending levels and sources of funding.

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