Diokno pushes

cash-based budget
MalacaRang is sticking to a cash-based budget
although congress removed the provision that
sought to implement this system under the 2019
general appropriations bilt, Budget Secretary
Beniamin Diokno said onWednesday. The secre- THURSDAY / FEBRUARY 21, 2019
tary cited the Administrative Code of 1987 as the ' .. WWW.INQUIRER.NET
tegal basis for implementing cash-based budget-
ing. He said the department was prepared fi

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dthough Congress removed
he provision that sought to
mplement a cash-based bud-
et under the zorg general ap-
,ropriations bill, Budget Secre-
aly Bentamiri Diokno on
Vednesday said the new bud-
;eting system would be prac-
iced this year.
At a press conf6rence, Dio-
:no pointedto Section 36, Chap-
er 5, Book VI of Executive Or-
Ler No. 292, or the Administra-
ive Code of 1987, as the legal
rasis for implementing cash-
)ased budg€ting.
Diokno said this would be
ufficient, pointing out that the
:ontent and form of the budget
s an executive decision.
But he said that if needed,
rn executive order to be issued
)y President Duterte would
uffice to shift from the cur-
ent obligation-based budget-
ng system.
Should legislators challenge
he new budget system, Diokno
raid the Department of Btidget
rnd Management (DBM) was
prepared" and would enlist the
office of the Solicitor General livered until next year. ' tracts," Diokno said.
as its counsel. Diokno said shifting to cash This is not true as the cur-
rent Procurement Law allows
budgeting would quicken gov-
Not subject to veto ' ernment's use of the budget. securing goods and services for
. Diokno acknowledged that It will also promote discipline multiyear projects
since the provision on cash- since agency heads will only pro- "You canstill enter into mul-
based budgeting was removed pose projects and programs that tiyear contracts. All you need is
in the bicameral version of the are implementation-ready. to secure a multiyear contract-
general appropriations bill for Diokno said a cash budget ing authority from the DBM,''
the proposed P3.8-trillion na- was a more transparent way of Diokno said.
tional budget, it could not be budgeting since the annual bud-
subiect to a veto by the Presi- get would more clearly show Multiyear contracts
dent as vetoes were meant to how much financial resources Under cash budgeting, mul-
remove provisions, not rein- the government was spending tiyear proiects may still be
yearly for goods and services. awarded as multiyear contracts.
state them.
The DBM has yet to receive The budget chief said sorne However, the projects will
an enrolled copy of the bill, but lawmakers were possibly misin- have to be budgeted annually
once it gets a copy, the agency CLASH OF SYSTEMS Rep. Rolando Andaya Jr. (left), the major formed on cash budgeting de- based on what the contractors
will come out with a line-by- p1-epensnt of the obligation-based budgeting system, is on a spite DBM efforts to educate are expected to deliver by the
line statement of difference coilision course with Budget Secretary Benjamin Diokno and his them. end of the fiscal year, the DBM
and submit it to the President cash-based systeryr, -EDwtN BAcasMAs chiefsaid.
for his consideration, accord- Misconception "In other words, proiects
ing to Diokno. One prevalent misconcep- have to be included in the bud-
rest of the world," especially in He is pushing for the cash- tion on cash btidgeting that get for every year of implemen-
widelyused, terms of building infrastruc- based system, under which con- made the rounds in congres- tation to ensure payment for
An enrolled bill is the final ture. tracts of up to 12 months must sional hearings until recently deliverables by the end of the
copy of the measure that the "We included cash budget- be fully delivered by the end of was that cash budgeting would year," hesaid.
House of Representatives and ing as a general provision in the the fiscalyiar. limit agencies to projects that Diokno said that should a
Senate have approved. The proposed bridget because we could be implemented only contractor fail to deliver the
President has yet to sign the want this to be the usual prac- Speedier use ofbudget within the year. goods or services expected by
budget measure into law. tice from hereon.in," he said. In contrast, the current obli- "As a result, as some legis' the end ofthe year, payment for
For Diokno, implementing Diokno said cash budgeting ' gation-based budget allows lators fear multiyear pr,oiects these would have to be set aside
the cash-based budget will hetp was the most widely used bud- contracts awalded under the would have to be divided into in the next fiscal year. -wrrH iN-
the country "catch up with the geting systen. current year's buflget to be de- .several single-yeay' con- QUIRERRESEA{CH INQ ,,
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