DBM releases P2.4 trillion from 2022 national budget

MANILA, Philippines — Nearly 83 percent of the total annual budget worth P2.89 trillion has been released to make sure that state agencies deliver their services without delay, according to the Department of Budget and Management (DBM).

The budget department said that P2.4 trillion of the programmed budget for government offices has been issued through the General Appropriations Act as an Allotment Order (GAAAO).

The amounts were released on time to make sure programs and projects, especially in education, health and transportation proceed as planned.

Upon receiving their financing, national agencies can also start their negotiations with bidders looking to land government contracts for the year. Further, procurement for and implementation of activities can commence as soon as they get their respective budgets through the GAAAO.

According to the DBM, line departments can tap the remaining P498.21 billion in funds through a special allotment release order (SARO).

The DBM reminded state agencies that specific appropriations must be released, obligated and disbursed until Dec. 31, 2023, except for the budget on personnel services that lasts only until Dec. 31, 2022.

On top of the P2.89 trillion in department financing, the 2022 General Appropriations Act (GAA) contains P457.32 billion in special purpose funds (SPFs) that can be tapped upon the issuance of either a general allotment release order or SARO.

More than 40 percent of the SPFs or P183.94 billion will go to the pension and gratuity fund, as over 35 percent at P160.3 billion will subsidize government-owned and controlled corporations.

On the other hand, the GAA sets aside P1.67 trillion in automatic appropriations for various uses. The bulk of the item at P959.04 billion will go to local governments as their share in tax collections in line with the Mandanas ruling.

The Supreme Court decision mandates the national government to expand the internal revenue share of localities beginning this year. Local leaderships, in turn, will acquire the responsibility of managing social services, such as agriculture, connectivity and health.

Under automatic appropriations, the government will also spend for usual expenses like interest payments (P512.59 billion), block grant (P66.96 billion), retirement and life insurance premiums (P60.02 billion), special account (P31.06 billion) and net lending (P28.7 billion).

The government faces the third year of the pandemic with a record budget of P5.024 trillion, as it pushes to expand the economy by seven to nine percent this year from 5.6 percent in 2021.