House Pushes Cash Based Budgeting System Reform
MANILA, Philippines — A new bill proposing a shift to a cash based budgeting system aims to speed up government service delivery, prevent wasteful expenses, and improve transparency in fund monitoring. This cash based budgeting system reform seeks to make government transactions easier to oversee and more efficient.
Re-elected Leyte 1st District Representative Ferdinand Martin G. Romualdez filed House Bill No. 11, known as the Budget Modernization Act, on June 30. The proposal was introduced to institutionalize cash-based estimates within general and special government appropriations.
Aligning Budgets with National Priorities
According to sources, the bill intends to transform the budget preparation process to ensure public funds focus on key national priorities. It also integrates medium-term planning, especially for infrastructure projects, to guarantee their completion within the fiscal year.
Under this system, the government’s annual appropriations will limit obligations and payments strictly to goods delivered and services rendered, inspected, and accepted during the current fiscal year. This is designed to address chronic issues where funds are obligated but remain unspent, causing delays in infrastructure and stalled government initiatives.
Addressing Fund Mismanagement and Enhancing Transparency
The bill further targets the problem of “parked” funds and off-budget items by enforcing stricter rules and clearer definitions for appropriations. It restricts lump-sum or special-purpose funds that lack clear deliverables and timelines, ensuring funds are properly accounted for.
To promote real-time oversight, the measure requires government agencies to adopt a digital public financial management system. This system will track every peso spent, allowing for more transparent and accountable public spending.
Co-authors of the bill include Tingog Party-list Representatives Andrew Julian Romualdez and Jude Acidre. Local leaders noted the reform could mark a significant step toward more efficient government budgeting and spending.
For more news and updates on government budgeting reforms, visit Filipinokami.com.