DBM sets rules for Jan. spending before 2020 budget is signed

THE Department of Budget and Management (DBM) ordered agencies and local government units (LGUs) to operate with funds appropriated for 2019 for the time being as the 2020 budget is still awaiting President Rodrigo R. Duterte’s signature.

“Pending the approval of the FY (fiscal year) 2020 General Appropriations Act (GAA), all operating units, i.e., agencies of the national government receiving allotment/Notice of Cash Allocation (NCA) directly from DBM, are authorized to obligate the amount corresponding to their actual requirements under the regular budget for the month of January FY 2020,” DBM said in circular letter No. 2020-1 issued Thursday.

The circular covers all national government agencies, state universities and colleges, LGUs and government-owned and controlled corporations (GOCCs).

The proposed P4.1-trillion spending plan for 2020 was approved and ratified by the two chambers of the Congress on Dec. 12 and was then submitted to the President for his signature.

Presidential Spokesperson Salvador S. Panelo has said that the budget is for signing this week.

The budget department, however, set a ceiling on the amount that the departments can spend until the 2020 budget is enacted.

For personnel services, DBM said agencies can only obligate 1/12 of personnel services funds using actual salary requirements as of end-December last year, and capped at the amount set in the 2020 National Expenditure Program (NEP).

For maintenance and other operating expenditures as well as for capital outlays, DBM said agencies can also spend 1/12 “of the regular programs and ongoing foreign assisted/locally funded projects funded under the FY 2019 GAA (R.A. No. 11260) and the FY 2020 NEP,” whichever is lower.

The three-and-a-half month budget delay last year was largely blamed for the slow growth of the economy, which expanded at a weaker-than-expected 5.6%, 5.5% an 6.2% in the first to third quarters.

The circular was signed and issued by DBM Acting Secretary Wendel E. Avisado. — Beatrice M. Laforga

https://www.bworldonline.com/dbm-sets-rules-for-jan-spending-before-2020-budget-is-signed/