DBM redirects sizeable budget appropriations for virus response

THE Philippine government has opted to partially fund the budget requirements needed to respond to Covid-19 pandemic by halting the release of 35 percent of programmed appropriations under the 2020 national budget effective April 1. At the same time, the government through the Department of Budget and Management (DBM) announced the discontinuance of at least 10 percent of the total released allotments for maintenance and other operating expenses (MOOE) and capital outlays (CO) of all national government departments and agencies and operating units.

“To partially generate the required amounts to implement the national policy to address the Covid-19 situation, while observing the overall expenditure program for FY [fiscal year] 2020, government instrumentalities concerned are advised that thirty five percent [35 percent] of programmed appropriations under the FY 2020 GAA [General Appropriations Act] shall no longer be made available for release effective April 1, 2020,” read the National Budget Circular 580 signed by Budget Secretary Wendel E. Avisado adopting the economy measures in the government due to emergency health situation.

The said circular shall take effect immediately upon publication. “Likewise at least ten percent [10 percent] of the total released allotments to covered entities under Section 2 hereof for MOOE and CO shall no longer be available for obligation,” the document added.

Covered entities shall include state universities and colleges (SUCS), as well as government-owned and -controlled corporations (GOCCS) receiving budgetary appropriations authorized under the 2019 and 2020 national budgets that shall also cover appropriations not expressly earmarked for the implementation of programs/activities/projects addressing the Covid-19 pandemic.

Moreover, the DBM circular stated that no allotment shall be released for new programs, projects, activities, including Congress-introduced increases, which are not likely to be implemented within the current calendar year.

The DBM also announced that specific activities shall be discontinued to implement the 10 percent discontinuance of the amounts corresponding to the FY 2020 released allotments for MOOE and CO.

Those which are discontinued by the government are purchase of any type of motor vehicles, except ambulances and those required by the military and uniformed personnel for the direct exercise of their public safety functions; start-up construction of government buildings, as well as repairs/renovation works which may be deferred; all foreign travels, except for ministerial meetings and scholarship/trainings that are grant-funded or undertaken at no cost to the government.

Also halted are all local travels, unless urgently necessary and allowed by the secretary, or head of the SUCS, constitutional offices and GOCCS; conduct of celebrations and cultural or sports activities not related to the core function of the agency, including athletic competitions conducted by public schools or SUCS; and hiring of job orders, except those considered as frontliners during this state of public health emergency.

The government also decided to discontinue at least 10 percent of the cost of the following: services of consultants and technical assistants; consumption of fuel, water and electricity and other utilities; consumption of supplies and materials, except for essential and critical supplies and materials related to Covid-19; cost of training, seminars and workshops; and all other MOOE items not otherwise enumerated.

The DBM said it shall also prepare and submit a report to the President on the programs, activities and projects with unobligated allotments to be discontinued to be used to fund programs and activities being implemented in response to the current health situation.

Each government agency, SUC or GOCC are also requested to identify and compute their unobligated allotments for MOOE and CO under the 2019 and 2020 national budgets as of March 31, 2020.

The certification shall be submitted to DBM not later than April 30, 2020.

For the legislative and judicial branches of government, constitutional commissions and other offices vested with fiscal autonomy, they are also strongly urged to adopt and implement the same economy measures in their respective offices.