DBM issues guidelines on release of 2019 budget

The Department of Budget and Management (DBM) has issued the guidelines for the release and utilization of the 2019 budget following the signing of the General Appropriations Act (GAA).

DBM officer-in-charge Janet Abuel issued National Budget Circular 577 providing the policies relative to the release of funds for fiscal year 2019.

It also prescribes guidelines on the treatment of fund releases and utilization prior to and after the approval of the 2019 budget.

Under the circular, all unutilized allotments of line agencies as of April 30 chargeable against the 2018 GAA, as reenacted, will no longer be available for obligation.

The circular also states that all appropriations authorized under the 2019 GAA, as well as programmed automatic appropriations, will be valid for release and obligation until Dec. 31, 2019, in line with the cash-based budgeting system implemented by the government.

“The Allotment Release Program, or the allotments to be released to cover government operations in FY 2019, shall be limited to P3.662 trillion,” the DBM said.

Meanwhile, the circular states that amounts obligated by agencies for their operating requirements from Jan. 3 to April 30, as charged against the 2019 reenacted budget, “shall not be considered as ‘add-ons’ to the FY 2019 Expenditure Program.” These include Special Allotment Release Orders (SAROs) during the period, the DBM said.

As such, the balance of available programmed appropriations, as authorized under the 2019 budget from May 1 to Dec. 31, is determined by deducting from the agency allotments the amounts already obligated in the first four months of the year.

This means the net program chargeable against the 2019 appropriations will only include obligations starting May 1, automatic appropriations under the 2019 budget of expenditures and sources of financing, unprogrammed appropriations under the 2019 GAA.

This also includes unreleased appropriations for maintenance and other operating expenses and capital outlays under the 2018 GAA, which can still be released and obligated under Dec. 31.