This paper attempts to assess the proposed shift in the country's budget system from obligation-based to cash-based budgeting and its implications on the 2019 proposed national budget. In the process, it aims to inform policy deliberations on Senate Bill 1761 (formerly Senate Bill 1450), otherwise known as the Budget Reform Bill, by discussing the concept of cash-based budgeting with focus on its advantages and disadvantages and its implications on the proposed national budget for 2019 and on government operations and practices. It also examines the past disbursement performance of the national government as well as the factors affecting its performance. The paper argues that there is a need to reconsider the shift from obligation-based to the annual cash-based budget scheme—a move initiated by the Department of Budget and Management—in view of the perennial issues faced by government agencies/units.
