Lakas-Christian Muslim Democrats (Lakas-CMD) president, Leyte 1st district Rep. Martin Romualdez is making a serious push toward overhauling the national budgeting system in a bid to fix its inherent flaws.

For this purpose, the former House Speaker has filed House Bill (HB) No. 11, known as the Budget Modernization Act, which proposes a shift to a cash-based budgeting system.

The measure defines Cash Budgeting System as that which “refers to the annual appropriations that limit incurring obligations and disbursing payments to goods delivered and services rendered, inspected and accepted within the current fiscal year.

The bill aims to accelerate the delivery of government services, eliminate wasteful spending and make all government transactions easier to monitor and assess.

“Bawat sentimo sa national budget ay pera ng taongbayan. Kailangan magamit ito nang mabilis, tapat at may malinaw na resulta para sa mga Pilipino, lalo na sa mga nangangailangan,” Romualdez, who earlier backed the proposal to make public the bicameral deliberations of the national budget, said in a statement Sunday, July 6.

(Every centavo in the national budget is the people's money. It must be used efficiently, honestly, and with clear results for Filipinos—especially those who need it most.)

The measure targets long-standing problems in public finance where funds are obligated but not spent, resulting in delayed infrastructure, stalled programs and unutilized aid.

It mandates agencies to implement projects within the same fiscal year, with only a three-month extension for payments. This will compel agencies to plan better, deliver faster and report clearer outcomes.

HB No. 11 also addresses the issue of so-called “parked” funds and off-budget items by requiring greater transparency and stricter definitions for appropriations.

The bill restricts the use of lump-sum or special purpose funds without clear deliverables and timelines.

“Kapag may pondong inilaan para sa eskwelahan, dapat may maitayong silid-aralan. Kung may budget para sa kalsada, dapat may daang natatapos. Hindi puwedeng puro plano, walang resulta,” Romualdez noted.

(When funds are allocated for schools, classrooms should be built. If there's a budget for roads, they should be completed. We can't settle for plans without results.)

To ensure real-time oversight, the measure requires agencies to use a digital public financial management system that can track every peso spent.

Third-termer Romualdez said this will improve transparency, curb corruption, and restore confidence in how government handles taxpayer money.

“’Pag malinaw ang sistema, madaling masilip ng taumbayan kung saan talaga napupunta ang pondo. Iyan ang tunay na malasakit (If the system is clear, it's easier for the people to track where the funds are really going. That’s what true concern is),'' he said.

Another key provision is the introduction of performance-based budgeting. Agencies will no longer be evaluated solely by how much they’ve spent, but by the outcomes they’ve achieved.

This will allow the public to directly see how their taxes translated into actual improvements in their communities.

“Hindi na sapat ang sabihing nagastos ang pondo. Dapat makita ng taumbayan kung ano ang naitulong nito sa kanilang buhay (It’s no longer enough to simply say the funds were spent. The people must be able to see how those funds have made a difference in their lives),'' said the ex-Speaker.

Romualdez said the early filing of this bill is a signal of his intent to keep working even as leadership matters remain pending ahead of the 20th Congress.

The bill was co-authored by Tingog Party-list Reps. Andrew Julian Romualdez and Jude Acidre.