92.5% of 2015 Allotment to Gov’t Departments already Released – DBM

(DBM) — The Department of Budget and Management reported that 92.5 percent of the 2015 allotments for government departments and agencies have been comprehensively released during the first quarter of the year.

This is consistent with the objectives of the General Appropriations Act-as-Release-Document (GAARD) regime implemented at the start of 2014.

DBM said that the first quarter allotment releases from the GAA rose slightly in 2015 compared to 2014 levels with 80.4 percent of the programmed allotments for 2015 having been comprehensively released. This is an increase of 16.7 percent from allotment releases in 2014 over the same period. Meanwhile, the percentage of early releases for automatic appropriations almost doubled this year—from 47.1 percent in 2014 to 92.3 percent in 2015. Automatic appropriations refer to appropriations programmed over a period prescribed by law, through outstanding legislation requiring periodic action by Congress.

Budget Secretary Florencio “Butch” Abad said, “The latest report affirms our success with a major initiative towards more efficient budget execution. With this early release, we can speed up the implementation of projects and programs across agencies and departments, even as we minimize irregularities in fund releases.”

Under the GAARD regime, departments and agencies can begin obligating funds, start procurement procedures, and enter into contracts without securing a Special Allotment Release Order (SARO) from DBM. The GAA is used as the official release document, which facilitates speedier project execution and reduces bottlenecks.

Items under automatic appropriations that had 100 percent of their allotments released during the first quarter of the year include the following: the Internal Revenue Allotment (IRA), Interest Payments, Grants and Donations, and the Pensions of Ex-Presidents/Ex-Presidents’ Widows. Meanwhile, the Retirement and Life Insurance Premium releases were at 99.6 percent of program. While the comprehensive releases to agencies have allowed them to begin obligating funds since the start of the year, releases for automatic appropriations still require clearance prior to release.

“The comprehensive release of allotments is one step on the road towards ensuring that every peso contributes to sustained, inclusive growth. On our end, we will continue to work with departments, agencies, and local government units to improve their spending capacity and procurement procedures. This is to certify that the funds we release will be spent swiftly and efficiently for the benefit of all Filipinos,” Abad added. (DBM)