The Senate on Tuesday, December 15, approved on 3rd and final reading measures to extend the availability of a total P148 billion in unspent funds under the 2020 national budget and the Bayanihan 2 laws beyond their original deadlines.

Senators unanimously voted in favor of adopting House Bill (HB) 8063 extending the validity of appropriations under the Bayanihan to Recover as One Act (Bayanihan 2), and HB 6656 doing the same for appropriations under the 2020 General Appropriations Act (GAA).

Unspent funds under Bayanihan 2 amounting to P38 billion are made available until June 30, 2021. An unspent P110 billion under the 2020 GAA will remain accessible for another year – until December 31, 2021.

Without the bills extending the appropriations’ validity, the funds would have reverted to the National Treasury on the date the bills were set to lapse: December 19, 2020 for Bayanihan 2, and December 31, 2020 for the 2020 GAA.

The government observes a cash-based budgeting system, which requires government agencies to spend all their allotments within the fiscal year, or else have them revert to the Treasury by the end of the term.

Congress may authorize the extension of such appropriations when justified by fortuitous events, in this case, the COVID-19 pandemic.

Senator Sonny Angara, head of the Senate committee on finance and sponsor of the bills, said only the appropriations under Bayanihan 2 are extended, not the special powers the measure afforded President Rodrigo Duterte to address the pandemic.

“COVID-19 has disrupted our lives. We’ve had to change how we work, how we study, how we interact with each other, and how we purchase our necessities, among others. Government agencies were not spared, as they too had to adjust – foregoing plans and programs for the sake of the COVID-19 response,” Angara said.

Because of these difficulties, many government agencies were unable to promptly implement programs and projects for which funds were appropriated to them under the 2020 GAA and Bayanihan 2.

“These unreleased balances add up to P148 billion, which is no small amount. Allowing these appropriations to lapse amid a pandemic and a recession would have significant impacts,” Angara said.

The outstanding appropriations under Bayanihan 2 includes P10 billion allotted for COVID-19 vaccines. Along with P72.5 billion allotted for COVID-19 vaccines under the 2021 GAA, the government expects to have a total appropriation of P82.5 billion for COVID-19 vaccines in 2021.

President Rodrigo Duterte has yet to sign the 2021 GAA into law.

Other items whose funds are extended by the 2 measures are the following:

• Some P100 million intended for the salaries, hazard duty pay, and special allowances for medical frontliners hired under the Department of Health’s Emergency Human Resources for Health program
• Around P1.92 billion for assistance to distressed MSMEs through the COVID-19 Assistance to Restart Enterprises (CARES) program of the Department of Trade and Industry’s Small Business Corporation
• Some P60.7 billion under the budget of the Department of Education

Duterte on Monday, December 14, certified the two House Bills as urgent, allowing the chambers of Congress to approve the measures on 2nd and 3rd reading on the same day. Regular bills require a 3-day interval between their 2nd and 3rd readings.

The House of Representatives approved the certified urgent measures on Monday. – Rappler.com