Romualdez files bill to reform national budgeting system

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Romualdez files bill to reform national budgeting system

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President Ferdinand Romualdez Marcos Jr. signs into law the General Appropriations Act (GAA) of 2024 or the national budget at the Ceremonial hall of the Malacañan Palace on December 20, 2023. KJ Rosales, PPA pool/File

MANILA — House Speaker Martin Romualdez has filed a bill seeking to reform the country's budgeting system.

Romualdez's Budget Modernization Act proposes a shift to a cash-based budgeting system, which aims to "accelerate the delivery of government services, eliminate wasteful spending, and make all government transactions easier to monitor and assess."

A cash budgeting system refers to the "annual appropriations that limit incurring obligations and disbursing payments to goods delivered and services rendered, inspected and accepted within the current fiscal year," according to the measure.

"Bawat sentimo sa national budget ay pera ng taongbayan. Kailangan magamit ito nang mabilis, tapat at may malinaw na resulta para sa mga Pilipino, lalo na sa mga nangangailangan," Romualdez said in a statement Sunday.

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Romualdez said the early filing of the bill signals his intent "to keep working even as leadership matters remain pending ahead of the 20th Congress."


WHAT DOES THE BILL INTEND TO REFORM?


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

It also mandates agencies to implement projects within the same fiscal year, with only a 3-month extension for payments. 

Romualdez said this would compel agencies to plan better, deliver faster, and report clearer outcomes.

The legislation addresses "parked" funds and off-budget items by requiring greater transparency and stricter definitions for appropriations.

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It restricts the use of lump-sum or special-purpose funds without clear deliverables and timelines.

To ensure real-time oversight, Romualdez said the measure requires agencies to use a digital public financial management system "that can track every peso spent," which could improve transparency, curb corruption, and restore confidence in how the government handles taxpayers' money.

The bill also introduced performance-based budgeting where agencies will "no longer be evaluated solely by how much they’ve spent, but by the outcomes they’ve achieved."

This will allow the public, he said, to directly see how their taxes translate into actual improvements in their communities.


MAKING BICAM PUBLIC


The lawmaker earlier said he backed proposals to make public the bicameral deliberations of the national budget.

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The non-governmental organization Social Watch Philippines welcomed the move but said the public should also be allowed to observe technical budget hearings at the executive level, Congress committee hearings, technical working groups, and other "crucial" discussions "where laws and policies are shaped."

Romualdez authored the bill with Tingog Party-list Reps. Andrew Julian Romualdez and Jude Acidre.


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