Line agencies urged to halt programs to save on funds

MANILA, Philippines — The Department of Budget and Management (DBM) has directed line agencies to halt the implementation of some programs, activities and projects to save funds which can be used in the country’s fight against the coronavirus disease 2019 or COVID-19 pandemic.

Budget Secretary Wendel Avisado issued National Budget Circular 580, dated April 22, which orders the adoption of economy measures in the government in light of the national health emergency due to COVID-19.

The circular provides the guidelines for the discontinuance of programs, activities and projects to generate funds that will be used for measures that aim to contain the spread of the virus and mitigate its impact on the economy.

It covers all departments, agencies and operating units of the national government, including state universities and colleges and government-owned and -controlled corporations (GOCCs) receiving budgetary appropriations.

Under the circular, the DBM will no longer release 35 percent of programmed appropriations of agencies under the 2020 General Appropriations Act (GAA) effective April 1.

The DBM adviced agencies that no allotments will be released for new programs, projects and activities which are not likely to be implemented within the current year.

Furthermore, the DBM said at least 10 percent of the total released allotments, specifically for maintenance and other operating expenses (MOOE) and capital outlays (CO) would no longer be made available for obligation.

In line with this, Avisado ordered agencies to defer some projects and activities, including the purchase of motor vehicles, except ambulances and those required by uniformed personnel; and the construction of government buildings.

The DBM also said that all foreign travel, except for ministerial meetings and training that are undertaken at no cost to the government, and local travels, unless urgently necessary and allowed by the head of the agency, should be discontinued.

The circular also ordered agencies to defer the conduct of celebrations, cultural or sports activities, and the hiring of job orders, except those considered as frontliners.

Furthermore, the DBM also directed agencies to cut back their expenses on the services of consultants and technical assistants; consumption of fuel, water, electricity and other utilities; consumption of supplies and materials, except for essential supplies related to COVID-19; trainings, seminars and workshops; and other MOOE items, by at least 10 percent.

All covered entities were also advised to evaluate the programs, projects and activities that may be discontinued from unreleased appropriations and unobligated allotments in the 2019 GAA as well as appropriations “for later release.”