THE Department of Budget and Management (DBM) has released a circular on the discontinuance of the release of funds for several programs, activities and projects (P/A/Ps) this year, to give way to the necessary funding for the government’s coronavirus disease 2019 (COVID-19) response.
National budget circular No. 580 dated April 22 and signed by Wendel Avisado, DBM secretary, focuses on the adoption of economic measures in the government due to the emergency health situation.
The circular covers departments, agencies and operating units of the national government, including state universities and colleges (SUCs) and government-owned and -controlled corporations (GOCCs) receiving budgetary appropriations authorized under the fiscal years (FY) 2019 and 2020 general appropriations acts (GAA).
The DBM said it covers appropriations not expressly earmarked for the implementation of P/A/Ps addressing the COVID-19 pandemic.
“To partially generate the required amounts to implement the national policy to address the COVID-19 situation, while observing the overall expenditure program for FY 2020, government instrumentalities concerned are advised that 35 percent of programmed appropriations under the FY 2020 GAA shall no longer be made available for release effective April 1, 2020,” the circular states.
“Likewise, at least 10 percent of the total released allotments to covered entities under Section 2 hereof for maintenance and other operating expenses (MOOE) and capital outlays (CO), shall no longer be available for obligation,” it added.
The DBM likewise said no allotment shall be released for new programs, projects, activities, including Congress-introduced increases which are not likely to be implemented within the current calendar year, FY 2020.
The circular states that to effect the 10 percent discontinuance in the amounts corresponding to FY 2020 released allotments for MOOE and CO, the following economy measures are to be implemented.
“Discontinuance of the following: purchase of any type of motor vehicles, except ambulances and those required by the military and uniformed personnel for the direct exercise of their public safety functions; start-up construction of government buildings, as well as repairs/renovation works which may be deferred; all foreign travels, except for ministerial meetings and scholarship/trainings that are grant-funded or undertaken at no cost to the government; All local travels, unless urgently necessary and allowed by the secretary or head of the SUCs, constitutional offices and GOCCs; conduct of celebrations and cultural or sports activities not related to the core function of the agency, including athletic competitions conducted by public schools or SUCs; and, hiring of job orders, except those considered as frontliners during this state of public health emergency,” the circular said.
“Discontinuance by at least 10 percent in the cost of the following: services of consultants and technical assistants; consumption of fuel, water and electricity and other utilities; consumption of supplies and materials, except for essential and critical supplies and materials related to COVID-19; cost of training, seminars and workshops; and, all other MOOE items not otherwise enumerated above,” it added.
The DBM said it will prepare and submit to the President a report on the P/A/Ps with unobligated allotments to be discontinued, to be used to fund programs and activities being implemented in relation to the current health situation.
