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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


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