Metro Manila (CNN Philippines, January 3) — Because the 2019 budget bill was not passed before the year end, the government will have to work based on last year’s P3.767 trillion budget.
President Rodrigo Duterte on December 28 signed Joint Resolution No.3 which extends the validity of certain components of the 2018 budget until the end of 2019, Executive Secretary Salvador Medialdea confirmed in a message to reporters.
The Department of Budget and Management (DBM) in its first circular letter for 2019, set guidelines on how and how much could be spent by government agencies, under the assumption that the 2019 general appropriations act (GAA) will be passed by the first quarter.
“The DBM will continue to oversee the budgetary operations of the national government, especially as it runs on a reenacted budget for presumably the first quarter of 2019,” said Budget Secretary Benjamin Diokno in a statement Thursday.
Based on DBM Circular Letter no. 2019-1, government agencies may only spend 25 percent of their 2018 budget for the first quarter of this year.
They are allowed to use this budget to pay for the following: personnel services (salaries, bonuses, hiring, allowances, incentives), maintenance and operating expenses, and capital outlays.
The budget for retirement and life insurance premiums will also be automatically doled out.
The DBM will release special allotment release orders (SAROs) for special budget requests from government agencies which might not be covered by the circular letter.
These SAROs will remain in effect until the 2019 national budget is 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.
