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MORE than a week before the expiration of the Bayanihan to Recover as One Act (Bayanihan 2), the Department of Budget and Management (DBM) reported that it has so far published a total of P105.775 billion.
Broken down, the DBM has disbursed 73.24 percent or a total of P102.53 billion of the P140 billion allocation under Bayanihan 2, based on the status of the Covid-19 fund releases reported by DBM as of December 11. .
Meanwhile, the remaining P3.24 billion was charged from the regular funds of the 2020 national budget according to Bayanihan 2.
However, the two chambers are already planning to extend the validity of the assignments under Bayanihan 2, which will expire on December 19.
If there is no extension, the uncommitted funds will revert to the Treasury Office.
Aside from the P140 billion in regular allocations provided under Bayanihan 2, a reserve fund of P25 billion was allocated to cushion the effects of the Covid-19 pandemic.
The budget department has issued special appropriations release orders (Saros) for Bayanihan 2 to 17 government agencies. Saros are issued by DBM to authorize agencies to undertake obligations not to exceed a specified amount during a specific period for the stated purpose.
The Department of Agriculture (DA) topped the list of agencies receiving the most under Bayanihan 2 with P23.29 billion. Along with DA is the Department of Health (P21.77 billion), the Department of Labor and Employment (P16.4 billion), the Department of Finance (P11.62 billion) and the Department of Transportation (P9.5 billion).
To date, the DBM has disbursed P498.5 billion to fund the government’s fight against the pandemic, including P105.775 billion in Bayanihan 2. The government has also released P386.14 billion in Bayanihan 1 and P6.589 million in Post-Bayanihan. 1.
Drilon: financing problem
Senate Minority Leader Franklin Drilon urged President Duterte on Monday to realign P33 billion of “parked” funds at the Philippine International Trading Corp. to address the government’s “underfunding,” saying resources are much needed for response measures to the ongoing pandemic.
Drilon affirmed his support for an option to extend the 2020 budget law and Bayanihan 2, but doubted “if the national coffers with cash problems can absorb additional expenses” in addition to the programmed expenses of P4.5 billion for the next year a Once Congress extends the validity of appropriations under the Republic Law 11494, or the “Bayanihan to Recover as One Law” (Bayanihan 2) and the General Appropriations Law of 2020.
In a statement, the minority leader noted his support for an expiring Bayanihan 2 extension, as well as the 2020 General Appropriations Act (GAA), particularly “in light of reports from the Asian Development Bank [ADB] that the country’s Covid-19 war chest is relatively small compared to its neighboring Asian countries such as Malaysia and Thailand. “
Drilon, however, noted that “financing remains the government’s biggest problem,” adding: “I support the extension of the validity of the spending authorization under GAA 2020 and Bayanihan 2. The problem is where to get the funds to support these authorizations “. . “
Drilon reminded his colleagues that “granting authorization is one thing, financing it is another.” He said that “the current fiscal space makes us doubt whether the level of unspent amount under Bayanihan 2 and 2020 GAA is something that the government can absorb in addition to the expenditures scheduled for next year.”
He said the president is expected to sign the proposed national budget of 4.5 trillion pesos by 2021 with a programmed deficit of 8.9 percent of GDP. The administration, he said, “must do another cash sweep” to raise funds. He proposed that President Duterte “should realign dormant funds, including ‘parked’ funds of 33,000 million pesos at Philippine International Trading Corp., where the spending authority has expired, including accrued interest, to finance these authorizations. We have no choice but to do a ‘cash sweep’ and that should cover idle funds and interest income illegally withheld by PITC. “
A bill that seeks to extend the validity of allocations under Bayanihan 2 until June 30, 2021, was endorsed by a House committee last week. The chamber had previously approved a bill on second reading that seeks to extend the validity of the GAA 2020 until December 31, 2021.
