DBM to only give DA P10B for farm-to-market roads
Department of Budget and Management (DBM) said the Department of Agriculture (DA) will only receive P10 billion for the implementation of its farm-to-market roads (FMR) projects for 2019.
This, according to DBM, was because of the “department’s slow budget disbursement registered in the past years”.
Based on DBM’s records, the DA’s disbursement rate in 2014 was a measly 5.9 percent. This means that out of the P12 billion FMR appropriations, the DA disbursed a meager P708 million.
The DA then registered a significant increase in disbursement rate for 2015 at 42.8 percent but this went down to 39.1 percent and to 38.1 percent for 2016 and 2017, respectively.
“We want the DA to improve its disbursement rate and translate its budget to actual delivery of FMR projects,” DBM Secretary Benjamin Diokno said.
This is in line with the shift to an annual cash-based appropriations from the two-year obligation-based budgeting system.
Under the new scheme, contracts should be fully delivered by the end of the fiscal year, which effectively shifts project implementation to a one-year horizon.
As such, government agencies have to keep up by improving their performance in terms of disbursements and actual delivery of goods and services, Diokno said.
FMRs improve the mobility of goods, services, and the general public. They serve as links for better access to basic social services such as health centers, schools, and areas for employment.