QUEZON CITY, Philippines — House Majority Leader Rolando Andaya called for an all-member caucus on Wednesday (August 8), after several lawmakers have questioned the Department of Budget and Management’s (DBM) shift to cash-based budgeting system from the previous obligation-based budget.
He said some congressmen are blaming the new budgeting system for the cuts in their districts’ budgets.
“There’s a proposal by DBM to shift from obligation-based budget to a cash-based budget so this is causing some confusion to some members. They’re wondering why instead of the budget going up, it’s going down,” Andaya said.
Under the cash-based budget system, agencies are required to spend allotted funds and deliver their projects within the year regardless of possible setbacks.
Whereas under the obligated budget system, agencies may spend on various projects even without available funds but are assured of reimbursement the following year.
“Cash-based kasi gagastusin mo yung kikitain mo sa taong ito. Ang obligation-based is pwede kang gumastos pero pwede mo na bayaran next year, kumbaga may credit line sa tindahan, na ‘yun ang kinasanayan natin at ng lahat ng departamento,” Andaya explained.
Andaya said all members of the House agreed to call on DBM regarding their concerns about the new budgeting system.
“This is the first time it will happen walang precedent pa rito. Everything is uncertain, siguro a little more study before we totally apply,” he said.
Majority of the congressmen both from the minority and majority groups signed a resolution on Wednesday urging DBM to hold its implementation. — Grace Casin
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