Laws extending funds for Bayanihan 2, 2020 economic programs signed

MANILA, Philippines — Two laws extending the validity of funds allocated for pandemic response and economic recovery programs in 2020 have been signed by President Duterte to fully achieve their purpose this year, it was revealed yesterday.

Documents released by Malacañang showed that the President signed Republic Act 11519, extending the shelf life of the Bayanihan to Recover as One Act or “Bayanihan 2” appropriations until June 30 this year.

Likewise, he signed Republic Act 11520, which extends the availability of appropriations in last year’s P4.1-trillion national budget until Dec. 31, 2021. Both laws were signed on Dec. 29, 2020.

The Bayanihan 2 is an extension of the Bayanihan to Heal as One Act, which granted the President additional powers to strengthen the government’s measures against the coronavirus disease.

A total of P107.96 billion has been released under Bayanihan 2 until the law expired last Dec. 19, but about P36.76 billion more have not yet been released to implementing agencies as of last month.

RA 11519, however, does not extend the President’s authority to exercise powers granted under Bayanihan 2, including the authority to reprogram, reallocate and realign savings on other items in the appropriations of the executive department in the 2020 budget.

That particular authority could only be exercised until the original law’s expiry, the new law said.

What the law allows are fund releases to local governments and government financial institutions for programs, projects and activities under Bayanihan 2 until June 30. Appropriations covered by the standby fund will also be available for release, obligation and disbursement.

However, it does not cover the balances of the fund releases sourced from savings in last year’s budget, which shall be governed by the applicable provisions of the 2020 General Appropriations Act.

Meanwhile, RA 11520 extends the availability of the appropriations in the 2020 budget until the end of 2021 to ensure that government programs delayed because of the pandemic will still be implemented.

After the validity period, all undisbursed funds will not be available for release unless Congress passes a new law allowing it.

The balances of fund transfers between agencies, instrumentalities and government-owned or controlled corporations, which, while obligated, remain unused and undisbursed as of Dec. 31, 2021 will return to the unappropriated surplus of the general fund.

Appropriations for infrastructure and capital outlays for fiscal year 2020 will also be valid for obligation until the end of 2021, the law states.