Stretched 2019 budget redundant

There are 2019 budget items extended which may not be as important as items in the 2020 budget.

Disbursements of funds to agencies and projects are almost done that make it unnecessary to extend the 2019 budget, figures from the Department of Budget and Management (DBM) showed.

“The DBM has released P3.54 trillion or 96.7 percent of the P3.66 trillion fiscal year 2019 obligation program as of 31 October,” the DBM announced.

“Allotment releases to the line departments amounted to P2.02 trillion. These include funds allocated for agencies in the Executive branch, Congress, the Judiciary and other constitutional offices,” it added.

Last 12 November, the House of Representatives approved on second reading a bill extending the availability of the funds for maintenance and other operating expenses and capital outlays under the 2019 budget until the end of 2020.

The late passage of the 2019 General Appropriations Act and the election ban on the implementation of infrastructure and social services projects resulted in the delay of the implementation of most projects, which according to proponents of the bill would be remedied by an extension.

The DBM, nonetheless, devised a catch-up plan that was badly needed to douse the effects of the delayed budget approval on the economy.

Third quarter growth recovered to 6.2 percent from a dismal 5.5 percent the previous three months, which economists blamed on the late budget approval.

Bangko Sentral ng Pilipinas Gov. Benjamin Diokno, a top economist, noted that extending the effectivity of the budget may even work against efforts to spur growth.

Diokno said the extension of the validity of the 2019 budget “will not necessarily increase the 2020 budget.”

“Not many legislators know this. The 2020 disbursement program is fixed. The extension of the 2019 budget means that some items in the 2020 budget will be bumped off, assuming the DBM would allow the substitution,” he explained.

There is also the matter of prioritization, according to Diokno, since there are 2019 budget items extended which may not be as important as items in the 2020 budget that will be crowded out.

According to the DBM, the swift release of funds will ensure the speedy implementation of government programs and projects, particularly in infrastructure development, which saw a drastic decline in spending in the first semester.

Also, DBM reported some P337.42 billion released for Special Purpose Funds (SPF), which are budgetary allocations for specific socioeconomic purposes, such as funding support for government corporations, contingent fund and allocation to local government units.

Appropriations programmed annually or automatic appropriations on the other hand showed an increase in its allotment reaching P1.07 trillion. Such funds included 100 percent of the fiscal year 2019 program for the internal revenue allotment of local government units, net lending, interest payments and retirement and life insurance premium (RLIP) requirements.

Moreover, payments for the RLIP during the period includes the P3.61 billion additional requirements for newly-created or filled positions in various government offices. Such inclusion brought some 107.7 percent increase in its release.

“The DBM has also released P25.54 billion as of end-October from the continuing appropriations of the 2018 GAA (general appropriations act) for line departments and releases from SPF,” it said.

“As for unprogrammed appropriations, P50.51 billion have been released. Allotment for other appropriation, amounting to P26.64 billion, have also been released,” it added.

Sen. Christopher Lawrence “Bong” Go also revealed the Senate will push for the passage of the national budget before the year ends.