DBM SETS TIME FRAME ON 2013 SPENDING

CARRY OVER OF LAPSED ALLOTMENTS TO SUCCEEDING YEAR TO BE DISALLOWED

THE Department of Budget and Management (DBM) said on Wednesday that it plans to set a one-year validity limit for 2013 appropriations, with lapsed allotments for government agencies no longer be carried over to the next year.

Budget Secretary Florencio Abad said that it will be easier for the DBM to monitor the progress of funded programs and ensure efficiency in fu- ture budget preparations.

“We intend to enforce policies that will expedite program implementation and budget execution. Come 2013, lapses—or unexpended portions in the national budget—will not enjoy carry- overs to the next year,” he said. Budgetary items are generally subject to a one-year lapse period, with the exception of capital outlays (COS) and maintenance and other operating expenses (MOOES), which are valid for two years.

COS are used for goods and services with long-term benefits for the public, such as infrastructure, vehicles and equipment, and property. Meanwhile, MOOES are directed to an agency’s day-to-day operational expenses, including supplies and utilities.

“The two-year validity period for COS and MOOES gave agencies more time to execute their projects and make full use of their funds. However, we also found that the protracted lapse period contributed to delays in project implementation. By setting a one-year lapse period for allotments, we hope to encourage better agency performance and push departments to optimize their allocations,” Abad said.

He added that the proposed one- year lapse period will also underpin the Aquino administration’s agenda of increasing trans- parency and accountability in public fund management.

“The one-year limit will help the DBM keep a closer eye on the status of agency programs. It should also make budget preparations faster; once allocations are plotted out over a smaller time frame, an agency’s budget requirements will naturally be easier to determine,” he said.

The budget chief clarified that multiyear agency projects will not be compromised by the shortened validity period, since the DBM will continue issuing multi-year obligational authorities to agencies that require them.