DBM moves to ‘minimize’ impact of reenacted budget on growth
Credit to Author: eestopace| Date: Thu, 03 Jan 2019 09:39:12 +0000
MANILA, Philippines — The budget department has issued guidelines on the release of funds for key state expenses to mitigate the impact of a reenacted budget on the country’s economic growth.
Budget Secretary Benjamin Diokno on Thursday said a reenacted budget would “presumably” last for the first quarter of 2019 as Congress failed to pass the 2019 national budget over allegations of “insertions.”
“We will do what we can to minimize the damage to the Philippine economy, particularly public construction. You see, as early as the first working day of the year, we have come up with the guidelines for fund releases under the reenacted budget,” he said in a statement.
The DBM released on Thursday Circular Letter No. 2019-1, which would take effect until the General Appropriations Act 2019 is passed into law.
READ: CIRCULAR-LETTER-NO-2019-1-DATED-JANUARY-3-2019
According to the circular, government agencies may only spend 25 percent of their 2018 budget for the first quarter of 2019.
Government agencies could also use the budget to pay for personnel services (salaries, bonuses, hiring, allowances, incentives), maintenance and operating expenses, and capital outlays.
The DBM said it would issue a Special Allotment Release Order (SARO) based on the agency’s special budget request.
The agency said SAROs would be issued while the 2019 budget is not yet passed.
“The sooner the 2019 GAA is passed, the better for the economy and the Filipino people. Ramping up our investments on infrastructure and social services will only be sustainable if the budget is authorized by Congress,” Diokno said. /ee