DBM, DPWH mulls over P6-B savings

Budget Secretary Florencio Abad. Photo courtesy of the World Economic Forum 2014 / Fotopedia

MANILA — The Department of Budget and Management (DBM) and the Department of Public Works and Highways (DPWH) are in serious talks over the use of at least P6 billion savings that the latter has produced.

According to DPWH Secretary Rogelio Singson, he already made the request from the DBM for authority to use the savings of his agency. Unfortunately, DBM Secretary Florencio Abad still needs to make a decision in light of the Disbursement Acceleration Program (DAP) issue. Recently, the Supreme Court already declared DAP to be unconstitutional.

Abad noted that the SC ruling states that the government should use and declare their savings as the year ends. However, he said that it will be useless if the agencies will only be able to utilize them come November or December.

“These funds have to be used in a timely manner. As it is, we start realizing savings as early as January when we begin awarding contracts. These savings are generated from the bidding process, which usually result in contract costs that are lower than project appropriations,” Abad said.

He added that usually savings are only seen when projects are neglected. One notable example of this is the road project tin Cebu. According to Singson, this was bunked “because the local government unit has withdrawn the tree-cutting permit they gave us.” Another example is the supposed to be rehabilitation project of EDSA. Given the number of complaints of traffic congestion, Singson made a request to consider the funds as savings and be allocated to other projects.

Singson stressed that he does not wish to raise any arguments on the unfinished projects. Rather, he wants to realign the projects with the funding.

SC ruling states that DAP prevents the use of savings during midyear.

“We want to be allowed to use these funds. We are seeking the help of Congress,” said Singson.