Unprogrammed allocation limit seen preventing GAA 'insertion'

By Katherine K. chan

The cap on unprogrammed appropriations (UA) in the government's proposed Budget Modernization Bill has the potential to prevent budget “consolidation”, the Department of Budget and Management (DBM) said.

Assistant Budget Secretary Romeo Matthew T. Balanquit said the DBM usually sends a draft spending plan to Congress with a fixed amount of UA that is doubled or tripled after Congress enacts legislation.

,please let me know Under GAA (General Appropriations Act), Nadodouble or natitriple (It comes back to us as a GAA bill with double or triple the level of the original level),” Mr Balanquit told reporters on the sidelines of an event on Monday.

“It's something we don't have control over. But hopefully, under the law, halimbwa ma-to push 'Young philippine budget code, magkakaroon ng Cap 'Yan (For example, if the Philippine Budget Code is implemented, there will be a limit on that),” he said.

UA spending is considered dependent on the availability of funds, requiring the government to either exceed its revenue target or borrow more.

The budget process has been marred by last-minute insertions and amendments at the bicameral conference committee level, leading to calls for the removal of the UA.

Budget Secretary Amena F. Pangandaman and the Palace have defended on separate occasions The UAS says some allowances should be made for unexpected expense needs.

Ms. Pangandaman has proposed a 5% cap on UA ​​in the National Expenditure Program (NEP), a document prepared by the DBM that Congress converts into a budget bill.

Diva C. Guingundo, country analyst at GlobalSource Partners, said any change “opens up the door” on the UAZ. FPlunder for abuse.

“This is the best time to get rid of UA – it has been abused all these years fiEliminate corruption through the involvement of Congress,” he said via Viber. “The DBM in collaboration with all relevant agencies and other entities of government should already sharpen their pencils in nailing down the major expenditure items based on one, the essential and priority list and two, absorptive capacity.”

Mr Guinigundo said the government should not finance programs that are not mentioned in the national budget.

“Even disaster and emergency situations should be covered by risk management and scenario-building exercises of various agencies of the government,” he said. ,kunin sa discretionary fund ng Malacañang if the disaster fund is not sufficient (if the disaster fund is not sufficient, take it from the discretionary fund of Malacañang).

Finance Secretary Ralph G. Recto calls the 5% UA cap excessive and “probably” 2% would suffice.marginal forceice storm

Mr. Balanquit said he prefers any UA to be “the lower the better.”

In the 2026 NEP, unprogrammed appropriations so far amount to P243 billion, equivalent to about 3.6% of the P6.793-trillion proposed spending plan.

The 5% limit would mean a UA level of about P340 billion.

Mr. Balanquit said the government's current cash budget system still gives legislators scope to modify the level of funds programmed for infrastructure projects, allowing potential budget abuses.

,Naming 'Young Sinasabi' The cash budgeting system is being implemented somehow. But… I mean Because in the end, ginagalaw pa rin ng Congress (The cash budget system that we are referring to is somehow being implemented right now. However… it has not taken hold, because in the end, Congress will manipulate it),'' Mr. Balanquit said.

The proposed progressive budgeting bill has been included among the 44 priority 20 bills of the Legislative-Executive Development Advisory Council for better and modern governance.th Congress.

The measure seeks to improve the budget and public financial management process by institutionalizing the cash budgeting system, treasury single account and integrated financial management information system.

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