PAMPANGA, February 28, 2020 – The Department of Agriculture – Special Area for Agricultural Development (DA-SAAD) aligned its funding proposals for Fiscal Year (FY) 2021 to the new budget system of the government during a comprehensive planning and budget workshop in Angeles City, held from February 25 to 27. 

The Regional Program Management Support Offices (RPMSOs) and the National Program Management Office (NPMO) convened to craft the FY 2021 budget and project proposals for each covered province. 

The workshop, facilitated by NPMO Planning, Monitoring, and Evaluation (PME) Head Darwin Pamatmat, will prepare SAAD implementers to the transition from obligation-based to an annual cash-based system. 

Each RPMSO presented its budget forms and requirements (Form A, Form B, Budget Plan 201 B and D), which were critiqued by SAAD Program Director Myer Mula, Deputy Program Director Ulysses Lustria Jr., and NPMO PME staff.

The Budget Reform Program: transition to an annual cash-based system

 The annual cash-based system is a new financial management approach recently proposed by the DBM, supplemental to the administration’s goal of improving the efficiency of project delivery and the accomplishments of the state-funded projects.

From the obligation-based budgeting which allows contract fulfillment beyond the cycle of one fiscal year, the Annual Cash-Based Budgeting System (ACBBS) limits the fulfillment of contracts within one year, with an Extension Payment Period (EPP) of three months. This budgeting system (ACBBS), targets to secure delivery and completion of projects within a year, thus requiring financial discipline and intricate feasibility studies among government agencies. The DBM formed inter-agency Task Teams to facilitate and monitor the transition. 

Internal Issues and Agreements

With the new budgeting system at work, settlements and adjustments have been made before the workshop concluded. These include 1) forwarding issues on procurement of agricultural machinery to the Bureau of Agricultural and Fisheries Engineering; 2) the enhancement of the collaboration between the RPMSOs and Agricultural Training Institute, as the provision of training will still be facilitated by the SAAD Program with close monitoring of the partner-agency; 3) the procurement of planting materials from the Bureau of Plant and Industry accredited nurseries; 4) the temporary postponement of swine procurement in response to the African Swine Fever (ASF) virus situation; and 5) the matching of the Executive Order No, 70 beneficiaries of DA-SAAD and DA-Kabuhayan at Kaunlaran ng Kababayang Katutubo (4Ks).

The budget proposals are to be presented by the NPMO to the DA Internal Budget Hearing from March 3 to 5, 2020. ###

Writer: Jessa Mae Gabon, SAAD Public Relations and Communications Officer