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DBM allows agencies to spend what’s left of 2019 funds for January 2020 needs

By: - Reporter / @bendeveraINQ
/ 04:00 PM January 02, 2020

With President Rodrigo Duterte yet to sign the P4.1-trillion 2020 national budget, the Department of Budget and Management (DBM) on Thursday (Jan. 2) asked national government agencies to use what’s left of their 2019 budgets for their spending needs this January.

In Circular Letter No. 2020-1 signed by acting Budget Secretary Wendel E. Avisado, agencies of the national government that receive notices of allotment or cash allocation from the DBM directly had been authorized to obligate, or use, the amount “corresponding to their actual requirements” in January 2020 but not exceeding ceilings set by the DBM.

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For personnel services, the DBM put a cap of 1/12 of actual salary requirements—excluding allowances, bonuses, benefits, cash gifts, incentives and funds for new positions—but not exceeding the levels set by the 2020 national budget.

For capital outlay, maintenance and other operating expenses, the DBM also put a cap of 1/12 of funds for regular programs and ongoing projects listed in the 2019 national budget and the 2020 national budget, whichever was lower.

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All expenses using 2019 budgets, the DBM circular said, must be recorded as “overdraft in allotment.”

The expense figures would be adjusted once the 2020 national budget is in effect, the DBM added.

But the authority did not cover funds for pension and gratuity, centrally managed items and other special purpose needs. Local governments’ internal revenue allotments and special accounts in the general fund are also not covered by the DBM circular.

The DBM would issue Saros, or special allotment release order, for agencies’ special budget requests.

It said notice of cash allocations, or NCAs, would be issued for items which are covered by the DBM circular. Issuance of Saros would be “based on the DBM-evaluated monthly disbursement program,” the department added.

The DBM also reminded agencies to regularly submit monthly documents or reports prescribed by the Commission on Audit.

These would be used as “basis for determining the status of programs or project implementation and expenditures for the production or delivery of goods and services to the public.”

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These reports, the DBM said, “shall be consolidated for submission to the President.”

Edited by TSB
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TAGS: Budget, DBM, Requirements, spending
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