By Melissa Luz T. Lopez
Senior Reporter
The EXECUTIVE branch will release funds this year according to state offices’ spending capacity despite Congress’ opposition to the scheme, Budget Secretary Benjamin E. Diokno said in a press briefing on Wednesday, adding that President Rodrigo R. Duterte’s economic managers have signed a request for the Commission on Elections (Comelec) to exempt 145 infrastructure projects from the 45-day ban on public works ahead of the May 13 mid-term elections.
The letter signed by Mr. Diokno, Finance Secretary Carlos G. Dominguez III and Socioeconomic Planning Secretary Ernesto M. Pernia seeks the exemption of locally funded projects as well as those financed by official development assistance (ODA).
The list includes farm-to-market roads, new school buildings, the national ID system, as well as big-ticket items like the Mindanao Rail Project, phase one of the Metro Manila Subway and the New Bohol (Panglao) International Airport.
“The exemption will facilitate implementation and ensure that there are no delays and disruption of these national priority projects,” read the letter addressed to Comelec Chairman Sheriff M. Abas.
The Duterte administration is looking for ways to prod economic activity further, following a 6.2% gross domestic product (GDP) growth clocked in 2018 that fell short of the official downward-adjusted 6.5-6.9% target.
The Department of Budget and Management (DBM) listed 59 projects implemented by national government agencies, 82 under state corporations, three for constitutional bodies and one from the Autonomous Region in Muslim Mindanao.
Comelec Spokesperson James B. Jimenez had said that the poll body will not grant a blanket waiver and will need a detailed list of projects. ODA-funded projects are actually not covered by the ban, which will take effect March 29 to May 12. Mr. Diokno noted that the Comelec en banc meets weekly and can take up their request promptly.
Mr. Diokno also added that they will forge ahead with cash-based fund releases for the P3.757-trillion spending plan, saying Mr. Duterte is prepared to issue an executive order if warranted.
Lawmakers removed the provision for cash-based budgeting in the bill before ratifying the now-delayed spending plan, citing supposed irregularities in the DBM’s proposal.
“The content and form of the budget is an executive decision,” Mr. Diokno said in Wednesday’s media briefing, adding that they can rely on the Administrative Code of 1987 for the basis of an “operational cash budget.”
However, Mr. Diokno said they can also ask the President to issue an executive order “if necessary” to avert possible questions on legality.
Cash-based budgeting means government funds will be released only for projects that are ready to be rolled out, with allocations valid for just a year. In contrast, the previous practice of obligation budgeting provided a two-year window for expenditures.
“That’s the reason why we have cut underspending… We’re slightly overspending because of the change in the budget process,” the Budget chief added.
“If it’s the old system, we won’t be able to do our Build, Build, Build. I can assure you that because it’s a slow process and we cannot attract new contractors.”
Mr. Diokno claimed the Duterte administration has moved faster in terms of project implementation, than the three years under the old public-private partnership scheme.
Presidential Spokesperson Salvador S. Panelo said Malacañang is “supportive” of the shift in the budget process.
The state is looking to raise infrastructure spending to 6.9% of GDP by 2022 from 4.4% of GDP in 2017. This, in turn, should drive economic growth to 7-8% annually from a 6.3% average in 2010-2016.
The government has been running on a re-enacted budget, leaving new programs unfunded, pending Mr. Duterte’s signing of the 2019 spending plan into law.

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