There will be a new 2019 budget - House

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FILE PHOTO

Metro Manila (CNN Philippines, August 15) — Malacañang and the House of Representatives are finally on the same page insofar as the 2019 budget scheme is concerned.

This came after a rift between the two sides over the administration's push to have a primarily cash-based budget next year, replacing the traditional obligation-based setup.

House Majority Leader Rolando Andaya said an understanding was reached among him, President Rodrigo Duterte and House Speaker Gloria Macapagal-Arroyo after a meeting Tuesday night.

In a statement, Andaya said the reconciled hybrid budget system will be signed into law by December 30, 2018.

This hybrid budget system, which consolidates the cash-based budget sought for by the Department of Budget and Management (DBM) with the obligation-based budget sought by lawmakers, will not completely scrap the current setup where projects can be funded beyond one year.

"If you look at the proposal of the Executive, it is not strictly cash-based. It is moving towards cash-based budget," Andaya said, explaining that what the DBM submitted was a step towards a fully cash-based system.

"Yung one year na window to implement projects, these are post enactment. But yung pag formulate, it was still done in an obligation-based system so in that sense hybrid talaga siya," the former Budget Secretary added.

[Translation:The one-year window to implement projects, these are post-enactment. The budget was formulated based on an obligation-based system so in that sense it's hybrid.]

Andaya said the President would also talk to Budget Secretary Benjamin Diokno to strike a compromise with lawmakers to avoid a re-enacted budget.

Budget cuts proposed by the administration may also be realigned by the House during its deliberations, which could resume now that the issue is resolved. This includes a budget to implement the recently signed Bangsamoro Organic Law (BOL).

"There are also suggestions that there will be supplemental budgets to be submitted because the DBM already admitted that budget for full implementation of BOL is not in the present budget now," Andaya said.

Lawmakers will meet with the officials of the Budget Department and other agencies on their respective proposals and budget cuts.

The administration has proposed a P3.757-trillion budget for 2019.

CNN Philippines' AC Nicholls contributed to this report.