NEGROS Occidental Second District Board Member Salvador Escalante Jr. revealed yesterday that the provincial government has only utilized 40 percent of the 2018 annual budget due to processing.
Escalante, chairman of the Sangguniang Panlalawigan (SP) committee on finance and ways, said the underutilization of the budget was found out during the marathon hearing on the proposed P4.01 billion budget for 2019.
"We are trying to look at where the problem lies and hopefully find a solution to it," Escalante said.
Initially, the problem lies in the delayed reaction and adaptation of local government units including the provincial government to the new guidelines issued by the Commission on Audit and the Civil Service Commission, he said.
He pointed out that the Office of the Provincial Accountant has submitted recommendations.
"After the budget hearings, the committee will also come out with its own recommendations," he added.
Escalante admitted that some projects and programs of the provincial government have been affected by the situation resulting in the 40 percent underutilization of the budget.
He said that Vice Governor Eugenio Jose Lacson has suggested to start budget deliberations as early as September to November every year.
"This would give time to departments and offices to prepare their purchase request earlier than its current practice. So by January the next year, they can start the procurement process which takes quite long," Escalante said.
The unused budget will revert back to the general fund for next year, he said.
Meanwhile, the 2019 budget is P455 million or 12.83% increase from this year’s budget which is P3.5 billion.
Under the proposed 2019 budget, allocated for the general fund is P1.1 billion, health services – P1.6 billion, economic enterprise – P104 million and special appropriations - P1.1 billion, he said.
The main source of funds for the 2019 budget is the Internal Revenue Allotment which is P3.3 billion while the rest will come from the local income and economic enterprise earnings.
Escalante said that his committee intends to finish the budget hearings as early as Wednesday this week.
The bulk of the increase in the next year’s budget is allotted for the fourth tranche of the implementation of the salary increase for government employees, he said.