Duterte Orders Implementation Of Cash Budgeting System

by in Categories Duterte News

President Duterte Carries Out Cash Budgeting System

RODRIGO DUTERTE – President Rodrigo Duterte has carried out an order to implement a new cash-based budgeting system to start at fiscal year 2019.

This was done to accelerate the delivery of public services. The Executive Order (EO) 91 had been signed by Duterte on September 9, but was released to media on Thursday.

Duterte Orders Implementation Of Cash Budgeting System
Image by: CNN Philippines

The President stated that an operational cash budget shall be implemented to ensure availability of cash resources. This would prioritize development projects.

Duterte then said that the billions of pesos and previous services are delayed. He stated that this was due to actual expenditure outturns and annual appropriations having significant gaps.

Durte then emphasized the need to improve the fiscal planning of government agencies. He added that this could be done through an implementation of an operational cash budget.

This could then benefit the public people, he said. With the system in place, implementation of programs and delivery of goods and services would be sped up, said Duterte.

According to Manila Times, EO 91 stated that:

  • All approved appropriations shall be accessible for obligation and disbursement only until the end of each fiscal year
  • Obligations made by the national government within each fiscal year shall be executed in the same fiscal year
  • Payments for obligations made shall be made until the end of the extended payment period, which is three months after the end of the validity of appropriations
  • Appropriations covering financial subsidy to local government units shall be accessible for obligation and disbursement until the end of the succeeding fiscal year.
  • Multiyear procurement projects, or those that take more than a year of implementation, must secure a multiyear contractual authority from the Budget department.

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