Pernia urges House: 'Accept' modern cash-based budgeting


Posted at Aug 14 2018 11:21 AM

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MANILA - Socioeconomic planning secretary Ernesto Pernia on Tuesday emphasized the efficiency of using the "more modern" cash-based budgeting amid opposition of some lawmakers in the House of Representatives.

It is more effective in preventing under-spending and it also put pressure on agencies and contractors to complete projects, or parts of the project within the year, Pernia told ANC's Headstart.

"It’s too much of a pressure on contractors and agencies but we accept it,"he said.

Agencies and contractors should be ready to act on their absorptive capacity "making sure that they have the contractors, they have the workers... so that projects can be delivered before the end of the year."

The House of Representatives suspended the deliberations on the 2019 budget "to be consistent with the position of the House to oppose cash-based budgeting," the office of appropriations committee chair Rep. Karlo Nograles has said.

Pernia was clueless as to why some lawmakers oppose the cash-based budgeting, which he calls a "good change."

"Typically when people are used to something they want to stay on the same mode of spending or budgeting. But change is something that if it is good, it should be accepted," he said.

Nograles earlier said the House will give the Development Budget Coordination Committee time to make the necessary changes to revert back to obligation-based budgeting.

But Pernia called the House of Representatives to just come around and accept the cash-based budgeting since it cannot be reverted or re-enacted because it was already submitted to the President.

The Senate suspended its budget hearing on Monday, Aug. 13 as it awaits the decision of the House of Representatives on passing a "cash-based" appropriations act for next year.