Directing All Agencies of the Executive Department to Identify Savings from Their Respective Appropriations under the General Appropriations Act for FY 2020

May 12, 2021

ADMINISTRATIVE ORDER NO. 41

DIRECTING ALL AGENCIES OF THE EXECUTIVE DEPARTMENT TO IDENTIFY SAVINGS FROM THEIR RESPECTIVE APPROPRIATIONS UNDER THE GENERAL APPROPRIATIONS ACT (GAA) FOR FISCAL YEAR 2020, FOR CONSIDERATION IN THE AUGMENTATION OF DEFICIENCIES IN ITEMS OF APPROPRIATIONS THEREIN, IN VIEW OF THE CORONA VIRUS DISEASE 2019 (COVID-19) PANDEMIC

WHEREAS, through Proclamation No. 1021 (s. 2020), the President extended the period of the State of Calamity throughout the country to 12 September 2021, and enjoined government agencies to render full assistance to and cooperation with each other, and mobilize the necessary resources to undertake critical disaster response aid and measures in a timely manner, to curtail and eliminate the threat of COVID-19;

WHEREAS, the impact of the COVID-19 pandemic and the increasing cases of COVID-19 infection call for intensified government-wide response and recovery measures, including various forms of socioeconomic relief and assistance to those affected by the imposition of stricter levels of community quarantine;

WHEREAS, under Section 66, General Provisions of Republic Act (RA) No. 11465, or the "Fiscal Year (FY) 2020 GAA," the President is authorized to declare and use savings to augment actual deficiencies incurred in any item of the regular appropriations of the Executive department;

WHEREAS, Section 67, General Provisions of the FY2020 GAA defines savings as the portions or balances of any released appropriations which have not been obligated as a result of (i) completion, final discontinuance or abandonment of a program, activity or project for which the appropriation is authorized; or (ii) implementation of measures resulting in improved systems and efficiencies and thus enabled an agency to meet and deliver the required or planned targets, programs and services approved therein at a lesser cost;

WHEREAS, RA No. 11520 extended the availability of appropriations under the FY2020 GAA to 31 December 2021; and

WHEREAS, Section 17, Article VII of the Constitution provides that the President has the power of control over all executive departments, bureaus and offices, and shall ensure the faithful execution of laws;

NOW, THEREFORE, I, RODRIGO ROA DUTERTE, President of the Republic of the Philippines, by virtue of the powers vested in me by the Constitution and existing laws, do hereby order:

SECTION 1. Identification of Savings. — Departments, agencies, bureaus and offices of the National Government are hereby directed to identify portions or balances of their released appropriations under the FY2020 GAA that may be declared as savings, particularly those which have not been obligated as a result of the completion, final discontinuance or abandonment of programs, activities or projects (P/A/Ps) for which the appropriation is authorized, or those corresponding to P/A/Ps which have not been obligated as a result of the implementation of measures resulting in improved systems and efficiencies and thus enabled an agency to meet and deliver the required or planned targets, programs and services at a lesser cost.

A report on such identified portions or balances of released appropriations, duly certified by the Head of Agency and the budget and finance officers concerned, shall be submitted to the Department of Budget and Management (DBM) within fifteen (15) days from the effectivity of this Order. The certified report shall include the specific P/A/Ps of the identified portions or balances of the released appropriations that may be declared as savings.

SECTION 2. Recommendation of the Use of Savings and Augmentation of Deficient Items of Appropriation. — On the basis of the certified reports submitted by the agencies in accordance with Section 1 of this Order, and subject to the requirements of Sections 67, 68 and 69 of the General Provisions of the FY2020 GAA, the DBM shall promptly determine and recommend to the President: (i) the amounts that can be declared as savings under the FY2020 GAA, with due consideration to the extension of availability of appropriations thereof until 31 December 2021; and (ii) actual deficiencies in any existing item of appropriation under the same GAA that need to be augmented, including, if necessary, items of appropriation for the provision of emergency subsidies to low-income households and disadvantaged or displaced workers affected by the COVID-19 pandemic.

SECTION 3. Implementing Guidelines. — As may be necessary, the DBM may issue supplemental guidelines for the effective implementation of this Order.

SECTION 4. Separability. — If any provision of this Order is declared invalid or unconstitutional, the other provisions not affected thereby shall remain valid and subsisting.

SECTION 5. Repeal. — All issuances, rules and regulations contrary to or inconsistent with this Order are hereby repealed, modified, or amended accordingly.

SECTION 6. Effectivity. — This Order shall take effect immediately.

DONE in the City of Manila, this 12th day of May, in the year of Our Lord, Two Thousand and Twenty-One.

 

Published in the Official Gazette, Vol. 117, No. 21, p. 5592 on May 24, 2021.