DBM Regional Director Annabelle M. Atillo said the meeting was aimed to inform agency heads on budget reforms, particularly on the use of annual cash-based appropriations.
The budget for 2019 will be cash-based as stipulated in the Budget Memorandum N0. 129 which means that agencies can only incur contractual obligations and disburse payments for goods delivered and services rendered and inspected within the fiscal year, with an extended payment period of three months.
Thus, payments of obligations should be settled within the fiscal year of the budget. Contracts awarded at the end of the year can be paid during the three-month extended period.
According to DBM-X, the shift will ensure that agencies focus on implementing the budget of the current fiscal year instead of the prior years. It will also quicken program delivery and strengthen accountability of government as the target outputs of government programs are clearly linked to their appropriated budget.
Director Atillo said the shift will further encourage agencies to strengthen their planning so that no residual projects will remain unimplemented at the end of the budget year.
With this, agency heads are reminded to structure their prospective contracts so that they do not spill-over to the next fiscal year. Budget and planning officers are also urged to work closely with program/project managers to ensure that project proposals are aligned with the implementation schedule. (APB/PIA-10)