Budget modernization bill filed in House

 A LAWMAKER  at the House of Representatives has filed a measure that sets the ground rules for the use and allocation of government funds and the national budget, and institutionalizes public participation and transparency in budgeting.  

Albay Rep. Joey Salceda filed on April 17 House Bill 9214, or the Budget Modernization bill, which is a priority of the economic managers of the Duterte administration. A copy of the bill was sent to the media on Friday.

With the Duterte administration's push for people-centered budgeting, Salceda said the bill aims to introduce a fourth key component on accountability and people’s participation in the budget process, as well as transparency.

“There is (an) urgent need for a framework that clarifies the management of public resources, especially in view of the pressures our public resources face during and in the aftermath of the Covid-19 pandemic,” he said. “We can’t afford to waste public money during this difficult time. We need to manage the budget as well as we could."

One important reform, according to Salceda, is the requirement that all proposed revenue eroding and expenditure bills include a Financial and Budgetary Information Sheet upon filing of the bill.

The said information sheet shall contain an estimate of the financial and budgetary implications of said proposal for the initial year of implementation.
The bill clarifies the processes and regulations for budget preparation, management, and reporting, and also introduces a rule that all congressional proposals that will erode government revenues, such as tax breaks, should have a corresponding revenue source identified.

It institutionalizes the Budget Priorities Framework, which has been regarded as an international best-practice for budgeting, to ensure that the national budget is allocated towards clear national priorities.

“As the most important guiding document of national policy for the year, the budget must be prepared, discussed, and enforced in a manner that upholds national interest and the Constitution. It must be prepared and implemented with a view towards national objectives for the year,” Salceda said.

It also institutionalizes medium-term planning, particularly in infrastructure, to ensure that projects that are initiated during one budget year are carried out to completion.

The bill introduces filters on multi-year contracts to ensure that only such contracts that the government can fully meet will be initiated.

“The rule on contingent liabilities is important. Congress determines the budget, but many liabilities we incur are not in the budget. This is due to some contracts that the government enters without Congressional approval that impose liabilities on the government. We will limit such liabilities,” Salceda said. (By Filane Mikee Cervantes)