Budget stalemate delays NegOcc pay raise

BACOLOD CITY – A stalemate over the proposed R3.7-trillion national budget for 2019 has delayed the release of the fourth tranche salary increase of 3,000 Negros Occidental provincial government employees that was supposed to be given out this month.

Provincial Budget Officer Jose Percival Salado said that although the provincial government has already allotted R65.5 million for the pay raise this year, they need a Department of Budget and Management (DBM) circular authorizing its release.

Salado said because DBM has not issued the circular, local government units, not affected by the national budget release, cannot move.

It appears that DBM has not issued the circular because it is claiming that the stalemate is preventing it from being able to release the fourth phase of salary increases.

But Sen. Panfilo Lacson, in a press statement on Thursday, said the stalemate is not a reason to hold up the raise.

DBM can use R99.446 billion under the Miscellaneous Personnel Benefits Fund (MBPF) in the 2018 budget for the purpose, Lacson said.

Lacson noted that of the R99.4 billion in the MPBF, R62.8 billion is for Compensation Adjustment, while R12.36 billion is for Staffing Modification Upgrading of Salaries.

Earlier, DBM Secretary Benjamin Diokno said it may be unconstitutional to implement a new round of salary increases for government workers without the proposed 2019 budget being passed.

The government is presently operating on a reenacted budget. The Senate is due to resume deliberations on the proposed 2019 budget starting Jan. 14.

In December Lacson questioned several pork-like insertions in the proposed 2019 budget that has caused the delay in its passage.

Meanwhile, Negros Occidental Gov. Alfredo Marañon said Friday he is asking the Sangguniang Panlalawigan to revert the provincial government’s newly created Human Resource Department back to a division and dissolve the Organic Farming Division in compliance with a DBM directive.

DBM has disallowed the Negros Occidental government’s 2018 allocation of R504,457,935 in excess of its Personal Services (PS) cap.

It also said the newly created positions for the new department and division were illegal, Salado said. “The Commission on Audit has also directed us to follow the decision of the DBM,” he added.

Salado said the seven Capitol employees assigned to the Organic Farming Division will be re-assigned to the Office of the Provincial Agriculturist.

Marañon denied the DBM ruling that the provincial government spent R504,457,935 in excess of its Personal Services cap in 2018, saying the Capitol even had savings from unfilled provincial government posts.

Salado said the Capitol, in fact, had savings of more than R550 million from the amount it allocated in 2018 for salaries.