Validity of 2021 budget extended to Dec 31, 2022

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THE Senate yesterday approved on third and final reading a measure seeking to extend the validity and availability of the P4.506-trillion national budget for 2021 until December 31, 2022.

All 22 senators, except Sen. Emmanuel Pacquiao, voted in the affirmative to approve House Bill 10373 that the lower house passed last November 29.

The measure specifically amended Section 62 of the General Provisions of RA 11518 or the General Appropriations Act of 2021.

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Under the measure, all appropriations authorized under the GAA of 2021, including budgetary support to Government-Owned and Controlled Corporations and financial assistance to local government units “shall be available for release and obligation for the purpose specified and under the same general and specific provisions applicable thereto until December 31, 2022, except for personnel services which shall be available for release, obligation, and disbursement until December 31, 2021.”

Statutory shares of LGUs, however, shall be available for release, obligation, and disbursement until the appropriations are fully utilized and funds fully disbursed. The construction of infra projects, delivery of goods and services, inspection and payment shall be made not later than December 31 next year.

“At the end of the validity period, all unreleased appropriations and unobligated allotments shall lapse, while unexpended or undisbursed funds shall revert to the unappropriated surplus of the general fund…and shall not be thereafter available for expenditure except by subsequent legislative enactment,” the measure said.

Meanwhile, the bicameral conference committee reconciling the disagreeing provisions in the budget measure will again convene on Wednesday to possibly finish the P5.024-trillion national budget.

Once the disagreeing provisions are ironed out, the Senate is expected to ratify the budget bill before Congress takes a holiday break on December 18.

The Philippines observes a cash-based budgeting system, which requires government agencies to spend their allotments within the fiscal year. Otherwise, unspent funds will be reverted to the National Treasury.

Sen. Juan Edgardo Angara, finance committee chairman, said extending the validity and availability of the 2021 national budget will allow continued disbursements of funds for vital projects that were not completed due to the extended lockdowns brought about by the pandemic.

He said this will allow government agencies to implement projects and fund programs that might have been delayed this year due to various reasons.

Senate minority leader Franklin Drilon said the extension of the budget will be used to generate economic activities and create more jobs amid the pandemic.

Drilon reminded concerned government agencies to promptly spend the funds.

“The extension of the national budget should carry with it a tall order to every agency to make sure that every peso that is appropriated is spent in a judicious and timely manner.

Underspending is like a disease that impedes growth. I urge Congress to carry out its oversight of the national budget and monitor the spending of the budget,” Drilon said.

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