Despite pronouncements by government economic managers that they would continue to push for the adoption of cash-based budgeting, House Appropriations Chair Karlo “Ang Probinsyano” Nograles on Wednesday remained hopeful that a “win-win” outcome was still possible in the ongoing impasse over the 2019 budget.
In an interview on ANC’s Headstart, the legislator from Davao reiterated that the House was keeping “communication lines” with the DBM open even as it was sticking with its position to bring back an obligations-based budget and “restore budget cuts” in critical social services.
Nograles revealed that the 2019 NEP proposed by the Department of Budget and Management (DBM) not just reduced the funds for agencies like the Department of Education, but lowered the targets for the provision of classroom buildings, scholarships, and other crucial services.
“For example, the number of youth to be assisted by the Department of Labor has been slashed from 186,850 to 85,898; the number of college scholarships has been slashed from 433,466 to 315,228; the target number of classroom buildings has been slashed from 47,000 to 4,100; and the target number of sitios to be energized has been slashed from 1,817 to 775,” Nograles lamented.
Nograles said that while legislators in the House understood the logic behind adopting a cash-based budget, “it’s not yet time” to make the shift. “Maybe we can do this in 2020, but not 2019. Let the agencies first catch up with their spending,” added Nograles.
“The number of youth to be assisted by the Department of Labor has been slashed from 186,850 to 85,898; the number of college scholarships has been slashed from 433,466 to 315,228; the target number of classroom buildings has been slashed from 47,000 to 4,100; and the target number of sitios to be energized has been slashed from 1,817 to 775.”
The solon from Davao said that for the current Administration, unlike the previous one, “underspending is not a problem.”
“The budget is 95% obligated; under-utilization, not underspending, is the real issue.”
According to Nograles, it was still too early to talk about a reenacted budget. He warned, however, that adopting the DBM’s “Plan B” would have repercussions.
“It is only August. When do we usually begin to talk about a reenacted budget? When it’s December. I’m still very hopeful that we can resolve this among us. Malayo pa ang December.”
Regarding a reenacted budget, Nograles pointed out that with a reenacted budget, “you still use obligations-based budgeting.”
In addition to this, the Executive would be hamstrung by the Supreme Court decision regarding the DAP (Disbursement Acceleration Program) that prohibits the use of savings to fund new items and limits their use to items already in the budget.
“If they want to fund new items, they will have to go to Congress to get a supplemental budget; pag ginawa yan, babalik din naman ang tinanggal nila.”
