COTABATO CITY — The Bangsamoro Parliament has unanimously approved Parliament Bill No. 179, enabling the continued use of funds for the release and disbursement of unpaid obligations from fiscal years 2020, 2021, and 2022 appropriations.
The PB No. 179 aims to ensure the full delivery of goods and services that will benefit the constituents of the Bangsamoro region.
It acknowledges the urgent need for the Bangsamoro Government to have its funds available for an extended period. It also addresses potential causes for delays that could hinder the effective utilization of funds, emphasizing the importance of meeting the region’s development goals.
Under the newly approved bill, appropriations for infrastructure, capital outlays, and continuing programs under maintenance and other operating expenses (MOOE) will be valid for obligation until December 31, 2022, for fiscal years 2020 and 2021. The availability of funds will continue until they are fully released and disbursed.
Similarly, for the fiscal year 2022 appropriations, funds will be valid for obligation until December 31, 2023, with provisions for full release and disbursement.
The measure marks a departure from the nationwide adoption of the cash-based budgeting system (CBBS) introduced through Executive Order No. 91, which aimed to improve fiscal planning, hasten program implementation, and provide prompt goods and services to the public.
However, the unforeseen outbreak of a global pandemic severely impacted the ability of government agencies to carry out their duties efficiently, including making effective use of their budgets.
The Philippine Institute for Development Studies acknowledged that CBBS could pose significant challenges for developing nations and transition economies due to potential administrative capacity constraints and other prerequisites necessary for successful budget reforms.
In their initial efforts to implement CBBS, the Parliament passed appropriation acts with one year of financial availability. However, facing similar delays experienced by the national government, the availability of regional funds was extended.
The extension was facilitated through Bangsamoro Autonomy Act No. 24, allowing funds for FY 2020 to remain available for obligation and disbursement until December 31, 2022, specifically for continuing programs under MOOE.
For infrastructure and capital outlays, the availability was extended for obligation until December 31, 2022, and for delivery, inspection, and payment until June 30, 2023.
The Parliament also enacted BAA No. 33 in December 2022, which extended the availability of funds for FY 2022. Except for personnel services and general administration and support under MOOE, funds can be obligated until December 31, 2023.
Additionally, the delivery, inspection, and payment of MOOE and other capital outlay items can occur until March 31, 2024.
In the case of infrastructure capital outlays, the obligation can continue until December 31, 2023, and completion of construction, inspection, and payment can take place until June 30, 2024.
The recent approval of the measure by the Bangsamoro Parliament ensures the continued availability of funds for the successful implementation of development projects and the provision of essential services to the people of the region. (LTAIS-Public Information, Publication, and Media Relations Division)