TO FAST-TRACK spending for public services, the Department of Budget and Management (DBM) will closely monitor disbursement programs and require government agencies to submit remedial action plans in case of delays in the implementation of disbursement programs.
According to National Budget Circular No. 556 issued by the DBM on Jan. 5, the release of funds allotted under the 2015 national budget will continue to be guided by reforms earlier introduced by the agency, such as the use of the general appropriations act as-release document, unified accounts code structure, performance-informed budgeting and checkless payment system.
The circular ordered government agencies and operating units to “ensure that priority socio-economic and development program and projects, as well as those intended to mitigate and address disaster-related concerns are executed within one year” to facilitate delivery of public goods and services at the soonest possible time.
“Timely implementation of programs and projects as a result of good planning will improve public spending and the quality of service delivery to the public,” the DBM noted, adding that the agencies’ implementation of disbursement programs would be assessed regularly.
“Periodic monitoring and review of agency utilization of funds in the production/delivery of goods/services to the public vis-à-vis plans/targets for a given period will be undertaken by DBM,” it said.
In case agencies face delays in disbursement, they must develop a “detailed remedial action plan” to resolve, or at least reduce, the impact of spending bottlenecks, the DBM said.
The government had programmed to spend P2.606 trillion this year, 15-percent more than in 2014. However, public expenditures slowed last year mainly due to the “chilling effects” of the Supreme Court ruling that the controversial Disbursement Acceleration Program—a stimulus package aimed at speeding up government spending to spur economic growth—was unconstitutional.