DBM: Funding remedies to follow rules

MANILA, Philippines —  Efforts to ensure enough funding for items affected by the amendments made by Congress would strictly follow rules and regulations, the Department of Budget and Management (DBM) assured the public yesterday.

President Marcos has described the enacted 2025 budget as “suboptimal” and has been holding discussions with various agencies to fund key programs and projects with reduced allocations.

He has directed agencies to determine which programs, activities and projects are within their priorities and are ready for implementation and which ones are not so they can be revisited and identified as possible savings that can be reprogrammed or reprioritized.

“We are one with the President in addressing the validated funding deficiencies. Nevertheless, it is understood that the process and procedures to be undertaken shall strictly adhere to budgeting, accounting, and auditing laws, rules and regulations,” the DBM said in a statement.

“Pursuant to the directive of the President, the Department of Budget and Management is committed to remedy the funding deficiencies of various departments for FY (fiscal year) 2025, through appropriate measures,” it added.

Among the measures being eyed are the modification in the allotment, the use of savings to augment deficient items or the use of the contingent fund or unprogrammed appropriations, subject to the conditions and requirements prescribed in the applicable special and general provisions under the General Appropriations Act (GAA).

According to the DBM, available allotments within an agency’s budget can be declared as savings, as defined in Section 77 of the general provisions of the 2025 budget. The use of these funds would be subject to the rules on augmentation provided in Section 78, it added.

The contingent fund may also be tapped to cover the funding requirements of new or urgent activities or projects of national government agencies, government-owned or controlled corporations and local governments that must be implemented or paid during the year, subject to the approval of the President, the DBM said.

Guidelines on government t workers’ wage hike

The DBM has signed the guidelines for the second tranche of salary increases for civilian government workers.

In a statement yesterday, the DBM said Budget Secretary Amenah Pangandaman signed National Budget Circular No. 597, which provides the guidelines, rules and regulations for the second tranche of the salary increase for civilian government workers.

It added that the circular is issued in line with the implementation of the updated Salary Schedule for the Civilian Personnel pursuant to Executive Order No. 64, s. 2024, which was signed by President Marcos in August 2024.

“We hope that this second tranche will provide much-needed financial relief and allow our government workers to better support their families, invest in their futures, and enhance their overall quality of life,” she said.

EO 64 states that the updated salary schedule shall be implemented in National Government Agencies in four tranches with the first tranche retroactively beginning on Jan. 1, 2024, the second on Jan. 1, 2025, the third tranche on Jan. 1, 2026, and the fourth and final tranche beginning Jan. 1, 2027.

The budget department said the amounts required for the salary adjustment of the civilian government personnel in FY 2025 shall be charged against the miscellaneous personnel benefits fund and any available appropriations under the FY 2025 General Appropriations Act, subject to budgeting, accounting and auditing rules and regulations.

Policies on Congress-induced fund releases

The DBM also released National Budget Circular 595, dated Jan. 20, to outline the policies and procedures on the release of funds under the 2025 GAA.

NBC 595 is available for reference on the DBM website. The circular outlines that items under the GAA will be released through the GAA as the Allotment Order (GAAAO). However, agencies with specific appropriation items requiring a Special Allotment Release Order (SARO) must submit updated performance targets and comply with the revised guidelines.

The DBM told The STAR on Wednesday the stringent guidelines for the release of funds tied to Congress-induced increases in appropriations and new budgetary items for fiscal year 2025.

Under the rules, government agencies seeking to access these funds must meet a performance rate of at least 85 percent for both financial and physical targets in the preceding reporting period.  – Catherine Talavera, Keisha Ta-asan, Jose Rodel Clapano