MANILA – The government will implement the country’s first cash-based budget system starting 2019 to move projects faster, an official said Wednesday.
The Department of Budget and Management (DBM) will "up the ante" next year to scrap the "flawed" obligation-based system, Department of Budget and Management Assistant Secretary Rolando Toledo said during a business forum in Davao City.
The 2-year validity of allocations under the obligation-based budget system “proposes reverse incentive since there is no pressure for agencies to complete projects,” Toledo said.
Under the cash-based budget, goods and services will be delivered and paid for in the same fiscal year.
Seventy-four percent or P2.4 trillion of the total P3.757 trillion 2019 budget will go to the regions, Toledo said.
The DBM is "anticipating" a reeneacted budget with the 2019 General Appropriations Act is still pending in Congress.
The 2019 budget is unlikely to be passed before the Senate goes on its Christmas break this year and will likely be signed in early February at the soonest based the Senate's “tentative of calendar for the 2019 budget.
Based on the calendar released by Senate Majority Floor Leader Miguel Zubiri, the budget bill will undergo interpellation from Dec. 5 to 12, after which the upper chamber goes on break.
The House of Representatives passed the 2019 budget last week.