budgeting system By ALEXIS ROMERO implementatibn of an opera- tional cash budget and by set- President Duterte has ting deadlines for obligation of signed an executive order funds and execution of projects adopting the cash budgeting during the fiscal year, in order system to address what he to speed up the implementation called "si.gnificant gaps" in of prograqs and to promptly spending outputs and annual deliver goods and services to appropriations that delay the our people," it added. delivery of public services. Under the EO, all autho. The shiff from a multiyear rized appropriations shall be obligation+based to arurual cash available for obligation and budgeting is mntained in EO No. disbursement only until the 91 signed by Executive Seo,etary end of each fiscal y6ar. Obliga- Salvador Medraldea bv authoriw tions incurred bv the national of the President last Srlpt. 9. government wiih eac\ fiscal According to thebudget de- vear shall be imolemented partment, annual cash-based turftrg the same yiar budgeting limits incurring ob- Goods and services that ligations and disbursing pay- correspond to obligations have ments for goods delivered and to be delivered, rendered, in- services rendered, inspected spected and accepted by the and accepted within the fiscal end of each fiscal year. year. Under the svstem, the PaYments for oblisations Lxtent of budget implementa- incuried shall be maie until tion is just one year, with an the end of the tlree-month ex- extended Davment oeriod of tended palment period unless three morithi after ihe fiscal another period has been deter- year. The cash budgeting sys- mined by the budget depart- tem will start this year. ment upon consultation with "Significant gaps between relevant agencieg the EO stated. the actual expenditure out- Appropriations covering turns and annual appropria- financial subsidy to local gov- tions translate to billions of emment units will be available pesos of delayed and forgone for obligation and release until sefvlces, w services, which should have the end endbf succeedins fiscal of the succeeding fiscal been delivered to the general vear. Appropriations for year. Aoorooriations f-or the publi_c," the order read. statutory shares of local gov- "There is a need to imprcve ernments shall be available for nscar plarming the fiscal rne praruxng ofor govem- govem- obligation and disbursement ment agencies through the the until fully expended.