The Budget Department said Thursday it issued the guidelines for the reenacted budget in the first quarter while awaiting the congressional approval of the 2019 General Appropriations bill.
Budget Secretary Benjamin Diokno said the DBM would continue to oversee the budgetary operations of the national government, especially as it began operating on a reenacted budget for presumably the first quarter of 2019.
“We will do what we can to minimize the damage to the Philippine economy, particularly public construction. You see, as early as the first working day of the year, we have come up with the guidelines for fund releases under the reenacted budget,” Diokno said in a statement.
“The sooner the 2019 GAA is passed, the better for the economy and the Filipino people. Ramping up our investments on infrastructure and social services will only be sustainable if the budget is authorized by Congress,” he said.
The agency said that pending the congressional approval of the 2019 budget bill, the national budget for fiscal year 2018 was deemed reenacted as mandated by Section 25 (7), Article VI of the Constitution. The reenacted budget will remain in force until such time that the GAB is passed into law by Congress.
“In light of recent developments, the Department of Budget and Management has released Circular Letter No. 2019-1 guiding national government agencies and instrumentalities in operating under a reenacted budget,” Diokno said.
He said that pending the approval of the 2019 GAA, national government agencies receiving allotment or notice of cash allocation from the DBM were authorized to obligate the amount corresponding to their actual requirements for the first quarter of 2019, but not exceeding certain percentages.
Those chargeable against agency-specific budget include personnel services, with 25 percent of the personnel services level using actual salary requirements as of end-2018, but not exceeding the level provided under the 2019 National Expenditure Program.
The personnel services level will exclude the following: built-in funds in the agency for the creation of new positions and fourth tranche compensation adjustments; mid-year bonus; year-end benefits and cash gift; clothing and uniform allowance; and productivity enhancement incentive.
The department said that for maintenance and other operating expenses, the amount should be 25 percent of regular programs and ongoing foreign-assisted and locally-funded projects under the 2018 GAA and 2019 NEP, whichever has the lower amount.
It said that for capital outlays, the amount should be 25 percent of regular programs and ongoing foreign-assisted and locally-funded projects under the 2018 GAA and 2019 NEP, whichever has the lower amount.
Chargeable against automatic appropriations are retirement and life insurance premiums, which is equivalent to 12 percent (or the applicable rate otherwise provided under special laws) of the salaries component chargeable against agency-specific budget as mentioned in the said circular.
The Budget Department said it would issue a special allotment release order based on the agency’s special budget request on items such as charges against the pension and gratuity fund, as reenacted, for the actual requirements for retired government employees and actual requirements for pension benefits of military and uniformed personnel.