Martin Romualdez pushes for budget reform via cash-based system

FILE / SAVED NOVEMBER 21, 2024House Speaker Ferdinand Martin Romualdez,HOUSE OF REPRESENTATIVES PHOTO

MANILA, Philippines — A bill seeking a shift to cash-based budgeting system in a bid to “accelerate the delivery of government services, eliminate wasteful spending, and make all transactions easier to monitor and assess,” has been filed in the House of Representatives.

Re-elected Leyte 1st District Rep. Ferdinand Martin G. Romualdez lodged House Bill No. 11, also known as the Budget Modernization Act on June 30.

The measure “institutionalizes the cash-based estimates in the proposed general and special appropriations.”

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“It reforms the budget preparation process to ensure that public resources are aligned with national priorities. It incorporates medium-term planning, particularly in infrastructure, to ensure the completion of the projects within the budget year,” a copy of the bill released to the media on Sunday reads.

The measure defines a cash budgeting system as “the annual appropriations that limit incurring obligations and disbursing payments to goods delivered and services rendered, inspected, and accepted within the current fiscal year.”

The bill covers long-standing problems in public finance where funds are obligated but not spent, resulting in delayed infrastructure, stalled programs, and unutilized aid.

Aside from this, the measure also aims to solve issues on so-called “parked” funds and off-budget items by requiring transparency and stricter definitions for appropriations.

“The bill restricts the use of lump-sum or special-purpose funds without clear deliverables and timelines. To ensure real-time oversight, the measure requires agencies to use a digital public financial management system that can track every peso spent,” a separate statement from Romualdez’s office said.

The bill is co-authored by Tingog Party-list Reps. Andrew Julian Romualdez and Jude Acidre.