OVER 91 percent of the P3.6 trillion 2019 national budget has been released by the Department of Budget and Management (DBM) to fund government projects for the year.
As of August, DBM disclosed it already released P3.345 trillion of the funds for the Fiscal Year (FY) 2019 obligation program.
Of this amount, P1.971 trillion was given to departments; and P244.642 billion for Special Purpose Funds (SPFs), such as Budgetary Support to Government Corporations and Allocation to Local Government Units.
Another P1.069 trillion of the budget is for automatic appropriations, or appropriations programmed annually or for some other period prescribed by law.
About P24.778 billion of the project are for multiyear projects, while P29.072 billion are for unprogrammed appropriations, which are mostly for support to foreign-assisted projects of the Department of Transportation.
In line with this development, President Duterte issued Executive Order (EO) 91 containing the rules for Cash Budgeting System (CBS), mandating government agencies to utilize their allocated funds before the end of each fiscal year.
The EO stressed that all appropriated government funds that will not be used after the period will be returned to the National Treasury. For multiyear projects, EO 91 should get a Multi-Year Contractual Authority (MYCA) from DBM before being allowed to use an allocated funds in multiple years.
As part of the transitory period for the CBS, the order gave concerned government agencies and government-owned and -controlled corporations (GOCCs) a grace period to use their 2019 allocations, especially after the delay in its release.
“Appropriations for infrastructure capital outlays, including subsidy releases to GOCCs for infrastructure projects, shall be valid for obligations until 31 December 2019,” the EO said.
The completion of the said projects should not be later than December 31, 2020.
Government agencies and GOCCs may also utilize the same rule for maintenance and operating expenses and other capital outlays.
The projects should be funded by December 31, 2019, and delivered not later than June 30, 2020.
To recall, the release of the 2019 budget was deferred to April due to the months-long standoff between the two chambers of Congress over budgeting rules.