Double whammy! Lacson details underspending of Bayanihan funds

At least P63 billion in funds from Bayanihan 2 – including P46.397 billion in undisbursed funds and P17.273 billion in unobligated funds – failed to reach their beneficiaries, no thanks to underspending by the government, Sen. Panfilo Lacson said Monday.

Lacson – who did his research on the matter after being wrongfully accused by President Rodrigo Duterte of saying the government underspent – said this means a double whammy for Filipinos whose lives and livelihoods were affected by the pandemic, as the aid they need did not reach them.

“We should keep in mind that underspending is determined not by fund releases but by obligations and disbursements. And based on my research, is there underspending? Yes!” Lacson said in an interview on Radyo 5.

Obligation is a commitment by a government agency arising from an act of a duly authorized official which binds the government to the immediate or eventual payment of a sum of money.

The agency is authorized to incur obligations only in the performance of activities which are in pursuit of its functions and programs authorized in appropriations acts/laws within the limit of the allotment released by the Department of Budget and Management (DBM).

Disbursement refers to the settlement/liquidation/payment of an obligation incurred in the current or prior years, involving cash or non-cash transactions and covered by disbursement authorities.

“Thus, funds are deemed obligated when the contracts for the projects have been signed. Funds are deemed disbursed when the funds are actually paid to the suppliers,” Lacson said.

Lacson pointed out the release of the budget by the DBM to the agencies concerned is not a determinant of underspending, because the funds remain with the agencies and not yet to the intended beneficiaries.

Instead, he said underspending should be based on obligations and disbursements.

“Releasing the funds is a step toward spending but it is not spending itself. Just because the DBM released the funds does not mean the funds are spent. If the implementing agencies that got the funds from the DBM are incompetent, the funds won’t reach the beneficiaries,” he said.

“The bad thing is that Bayanihan 2 already expired last June 30. Those who were denied the funds will no longer get aid unless a new law can be passed,” he added.

Citing latest data from the DBM, Lacson said that of the P205.117-billion allotment under Bayanihan 2, agencies incurred an obligation of P187.844 billion, or an obligation rate of 91.58 percent. But only P141.447 billion was disbursed, for a disbursement rate of 75.30% and 24.7% has not been disbursed.

“This can be considered huge underspending with P46.397 billion undisbursed and P17.273 billion unobligated,” Lacson said.

Also, Lacson pointed out such underspending of the Bayanihan 2 funds had denied much-needed assistance to many Filipinos whose lives and livelihood were affected by the pandemic. Bayanihan 2 ended last June 30.

These include those undergoing the “online learning program” of the Department of Education, as well as public utility vehicle drivers. “If the money was not fully disbursed, the affected Filipinos suffer because they are denied the aid meant for them,” Lacson said.

“It is a disservice to many, to say the least,” he added.

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Source: Latest Politics News Today (Politics.com.ph)