House suspends budget hearings

The House Appropriations Committee yesterday announced its suspension of the remaining budget hearings to express opposition to the cash-based budgeting proposed by the Department of Budget and Management (DBM).

The proposed budget for 2019 amounts to P3.757 trillion. The hearings for the General Appropriations Act (GAA) will be suspended “until further notice,” said committee chair Rep. Karlo Nograles.

He told reporters it was the “decision of the House” to suspend all budget briefings amid lawmakers’ outright opposition to the new system proposed by DBM.

In an annual cash-based budget, contracts intended to be implemented for the fiscal year should be fully delivered by the end of the year.

The prevailing multi-year obligation-based budgeting system, on the other hand, allows the government to enter into a contract or “obligate funds” without requiring the actual delivery of goods and services within the year.

“(We will suspend budget briefings) to be consistent with the position of the House to oppose cash-based budgeting,” Nograles said.

“And since we will revert to obligation-based budgeting, we will give time to DBCC (Development and Budget Coordination Committee) to make the necessary changes,” he added.

A resolution is circulating in the House seeking the recall of the budget reform bill, which proposes a shift from a multi-year obligation budget to an annual cash-based budget.