THE Department of Budget and Management (DBM) said it will require government agencies to file special requests to access unspent personnel services funds, with the requests to include explanations for why the funds were not utilized.
In a circular signed by Budget Secretary Amenah F. Pangandaman on Aug. 15, the DBM said instances covered by the policy include “deficiencies” in disbursing salaries, bonuses, allowances, and associated premiums of government employees.
The deficiencies include unspent compensation or benefits, including instances of leaves of absence without pay, vacancies, as well as delays in onboarding newly hired workers. It also includes errors in computation of employee benefits.
If allotments are not available, the head of an agency or the president of a State University or College (SUC) is to submit a special budget request to the DBM to set in motion a special allotment release order authorizing the payment for the deficiencies.
“All units under decentralized departments shall submit their requests to their respective Central Offices (COs) for evaluation or consolidation,” the DBM said.
“All departments and agencies, including the CO of decentralized departments, shall submit their request to the DBM central office,” it said.
The DBM added that SUCs are to submit their requests to DBM regional offices.
It also said it will only process requests for release of funds supported by financial accountability reports, and other documents that justify the deficiencies in personnel services appropriations.
The new requirements come in the middle of a DBM crackdown on underspending, as well as a drastically reduced budget for benefits.
According to the DBM, the programmed appropriations of the Miscellaneous Personnel Benefits Fund (MPBF) have been reduced to P26.6 billion from the P89 billion proposed in the 2023 national budget.
“Hence, the release of funds for the Performance-Based Bonus including PS deficiencies provided under the MPBF (pursuant to Special Purpose No. 1) has been hampered,” it added. — Keisha B. Ta-asan