Govt to tap ’20 savings for Covid response programs

THE government will soon be using its 2020 budget savings to help finance its projects, particularly those related to its Covid-19 response, for which the necessary budget is lacking this year. On Wednesday, President Duterte issued Administrative Order (AO) 41 through Executive Secretary Salvador C. Medialdea, ordering government agencies to report their savings from their 2020 General Appropriations Act (GAA) budget to the Department of Budget and Management (DBM).

e concerned government offices will have 15 days from the day of the effectivity of AO on May 12, 2021 to complete the submission.

“e certified report shall include the specific P/A/PS [programs, activities, and projects] of the identified portions or balances of the released appropriations that may be declared as savings,” Medialdea said.

Under the 2020 GAA, savings is defined as the portion of appropriations which have not been obligated as a result of completion final discontinuance or abandonment of a P/A/PS; and implementation of measures resulting in improved systems and efficiencies and thus enabling an agency to cut its costs.

e DBM will recommend to Duterte the amounts that can be

declared savings under the FY2020.

It will also determine the deficiencies in any existing item of appropriations under the same GAA that need to be augmented.

AO 41 is part of the austerity measure of the government to raise funds for its programs during the pandemic such as the government’s emergency subsidies to lowincome households during the Covid-19 pandemic.

“e impact of the Covid-19 pandemic and the increasing cases of Covid-19 infection call for intensified government-wide response and recovery measures including various forms of socioeconomic relief and assistance to those affected by the imposition of strict levels of community quarantine,” Medialdea said.