The Department of Budget and Management (DBM) issued National Budget Circular No. 580 on April 22, 2020 titled: “Adoption of Economy Measures in the Government due to the Emergency Situation”.
The budget circular was issued with the aim to observe fiscal prudence in the management of government funds to ensure that adequate and readily available funds could be provided to address the emergency health situation caused by the COVID-19 pandemic. It proceeded from Section 4(v) of Republic Act No. 11469 otherwise known as “The Bayanihan to Heal as One Act” which directed the discontinuance of appropriated programs, projects or activities of any agency of the Executive Department, in Fiscal Years 2019 and 2020 General Appropriations Acts (GAAs), including unreleased appropriations and unobligated released allotments.
Thus, the following guidelines, as provided in the budget circular, are herein reproduced for guidance and information:
“4.1 To partially generate the required amounts to implement the national policy to address the COVID-19 situation, while observing the overall expenditure program for FY 2020, government instrumentalities concerned are advised that thirty five (35%) of programmed appropriations under the FY 2020-GAA shall no longer be made available for release effective April 1, 2020. Likewise, at least ten percent (10%) of the total released allotments to covered entities under Sec. 2 hereof for Maintenance and Other Operating Expenses (MOOE) and Capital Outlays (CO), shall no longer be available for obligation. (emphasis supplied)
4.2 No allotment shall be released for new programs, projects, activities, including Congress-Introduced Increases which are not likely to be implemented within the current calendar year, FY 2020.
4.3 To effect the 10% discontinuance in the amounts corresponding to FY 2020 released allotments for MOOE and CO, the following economy measures are to be implemented:
4.3.1. Discontinuance of the following:
4.3.1.1 Purchase of any type of motor vehicles, except ambulances and those required by the military and uniformed personnel for the direct exercise of their public safety functions;
4.3.1.2 Start-up construction of government buildings, as well as repairs/renovation works which may be deferred;
4.3.1.3 All foreign travels, except for ministerial meetings and scholarship/trainings that are grant-funded or undertaken at no cost to the government;
4.3.1.4 All local travels, unless urgently necessary and allowed by the Secretary or head of the SUCs, constitutional offices and GOCCs;
4.3.1.5 Conduct of celebrations and cultural or sports activities not related to the core function of the agency, including athletic competitions conducted by public schools or SUCs; and
4.3.1.6 Hiring of job orders, except those considered as frontliners during the state of public health emergency.
4.3.2 Discontinuance by at least 10% in the cost of the following:
4.3.2.1 Services of consultants and technical assistants;
4.3.2.2 Consumption of fuel, water and electricity and other utilities;
4.3.2.3 Consumption of supplies and materials, except for essential and critical supplies and materials related to COVID-19;
4.3.2.4 Cost of training, seminars and workshops; and
4.3.2.5 All other MOOE items not otherwise enumerated above.
The discontinuance by at least 10% in the cost of utilities may likewise affect the implementation of DepEd Order No. 004, s. 2020 dated April 18, 2020 which recently amended the maximum monthly provision for the postpaid line and prepaid load for school heads/principals from Three Hundred Pesos (P300.00) to One Thousand Pesos (P1,000.00) with additional inclusion of Assistant School Principals as among those entitled to be recipient of such benefit in the amount of Eight Hundred Pesos (P800.00) per month, subject to further orders that the DepEd Central Office may issue relative thereto.
Enclosed in this memorandum is a copy of National Budget Circular No. 580 dated April 22, 2020 for reference.
Immediate dissemination of and compliance with this memorandum is hereby mandated.
