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Philippines : Aquino admin to push faster gov’t spending

Publish Date : 18-Apr-2015

Following a year of slower government spending, the Aquino administration is now taking aggressive steps to ramp up public disbursements and bring faster economic growth to the country. With majority of their respective 2015 allotments already released to government departments and agencies under the General Appropriations Act-as-Release Document (GAARD) regime, President Aquino recently issued Administrative Order (A.O.) No. 46 to improve spending efficiency and expedite the implementation of priority programs and projects under the 2015 Budget.

Department of Budget and Management (DBM) Secretary Florencio “Butch” Abad said, “We’ve already set down a lot of transparency and openness reforms in the National Budget, and that’s allowed us to make spending more responsive to the people’s needs. We recognized the need, however, to make budget execution much more efficient among our agencies. If major departments cannot optimize their budgets, it will be very difficult for us to get crucial projects rolling.” There was a clear need for us to adopt firmer and more aggressive measures so that the Budget can duly support the growing economy. The A.O. will allow us to strengthen agency capacities for implementing the budget and clear more of the bottlenecks that hamper efficient spending.

Under A.O. 46, agencies will be required to complete the disaggregation of project listings and submit all the documentary requirements for their allotment releases by end-April. Likewise, they should submit to the DBM and the Office of the Cabinet Secretary (OSC) their implementation plans for the programs and projects noted in the FY 2015 GAA.

To improve procurement practices, agencies will be expected to assign full-time support staff to their respective Bids and Awards Committee (BAC) Secretariats—even as they require BAC members and Technical Working Groups (TWGs) to prioritize procurement assignments over other duties and responsibilities. Furthermore, larger departments with a number of complex items that need to be procured—like the Department of Transportation and Communications (DOTC), the Department of Public Works and Highways (DPWH), the Department of Education (DepEd), the Department of Health (DOH), and the Department of Social Welfare and Development (DSWD)—should increase the number of BACs to handle the load.

“We have a strong procurement framework, but agencies won’t be able to make good use of it if they juggle their daily responsibilities with BAC duties. We see now that introducing devoted BAC staff will go a long way in making the procurement process more efficient. If we clear this bottleneck, agencies can deliver public goods and services more quickly,” Abad said. In addition, the A.O. directs agencies to submit their Annual Procurement Plan (APP) to the Government Procurement Policy Board and its Technical Support Office as soon as possible, besides coordinating with the DBM to ensure they have the needed personnel and resources. They must also comply with all procurement timelines as required by Republic Act 9184 (the Government Procurement Reform Act).

Furthermore, agencies will be required to designate full-time personnel—with officers not below the rank of Undersecretary—to oversee the implementation of each program and project, as well as ensure that these are properly executed. Finally, departments and agencies must now submit their Budget and Financial Accountability Reports at the end of every quarter to the DBM and the OSC. The reports are expected to cover the progress and issues of the program and project implementation, as well as catch-up plans and alternative modes of implementation if applicable.

Abad said, “Hand-in-hand with the early release of government funds, these measures improve department spending and procurement in both the immediate and long term. Our National Budget has already been designed in favor of rapid and inclusive economic growth. If we’re going to realize our goals, however, agencies must be better-positioned to bring goods and services efficiently to the public. The A.O. addresses that need in a very sure and sustainable way.”

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