Senators and congressmen have agreed to limit budget realignments to P2100 billion in the hopes of approving the P3.757-trillion 2019 national budget by Feb. 6.
READ: Sick and tired of ’insertions,’ Sotto changes budget tune
The members of the bicameral conference committee on the 2019 national budget were able to break a budget impasse during their meeting at the Manila Polo Club Wednesday night.
“Feb. 6 is the deadline. Contrary to some rumormongers that we will operate under a reenacted [budget], we have been saying since Day 1, we will have a new budget” said Camarines Sur Rep. Rolando Andaya Jr., chairman of the House committee on appropriations and head of the House contingent in the bicameral conference committee.
The committee is now working on where the P200 billion will come from and where it will go.
Earlier, Andaya disclosed that the Senate made P190 billion in “insertions” compared to the P51 billion by the House of Representatives.
“I am happy that we can reach an agreement, Andaya said Thursday.
At the same time, Andaya and Senate Minority Leader Franklin Drilon have sought to extend for two years the validity of the 2019 national budget or the obligation-based budgeting system, junking Budget Secretary Benjamin Diokno’s cash-based budgeting system.
They said 2019 is an election year where the ban on the release of public funds will be imposed, affecting the implementation of projects.
“There is no legal basis for this cash-based budget, and the implementing agencies have spoken that it will cause more harm than good. COA [Commission on Audit] has also said that it will result in accumulation of accounts payable,” Andaya said.
“I propose that we abandon this cash-based system and make the life of the appropriations for capital outlay and maintenance and other operating expenses active for two years,” he added.
READ: Salceda: Congress keen to pass budget
Earlier, the Palace rejected a proposal from Senate President Vicente Sotto III to implement a reenacted budget for 2019 amid alleged insertions of pork barrel in the 2019 spending plan.
“A reenacted budget as a result of a budget impasse would hurt our economy,” Presidential Spokesman Salvador Panelo said in a statement.
Panelo said a reenacted budget would be “fatal” to the country’s growth, saying that the economic managers are estimating a loss of 1 to 2.3 percentage points in the full-year gross domestic product if the Congress fails to pass the 2019 budget.
Panelo said the administration’s flagship “Build, Build, Build” projects would be delayed, hurting thousands of workers.
“The ordinary Filipino would be the one greatly affected as there would be fewer openings of employment, not to mention lesser work productivity for those employed as a result of delays in the completion of badly needed transport and road network [improvements],” he said.
“Programs of various departments this year intended for poverty reduction, health promotion, and peace and security advancement, to mention a few, would be inevitably affected as well,” he added.
He then called on the Congress to pass the 2019 General Appropriations Act, saying the Palace “eagerly awaits” its passage.
“We are appreciative of the statement made by some members of the bilateral committee that it will endeavor to pass the general appropriations bill next week. The executive branch has already done its part in the budgeting process, we eagerly await Congress to complete the process,” he said.
Frustrated over the alleged irregularities on the proposed P3.757-trillion national budget, Sotto had earlier said he would recommend a reenacted budget for the entire 2019, saying he would ask Senator Loren Legarda, chairperson of the Senate budget committee, to withdraw the proposed General Appropriations Act for 2019.
But in a Palace press briefing Thursday, Panelo said Legarda already declined the move to have a reenacted budget.
Last year, the House of Representatives suspended budget deliberations because of lawmakers’ opposition to the cash-based budgeting and the so-called last-minute insertions allegedly prepared by the executive.