Guidelines for the Identification of Agency Savings under the FY 2020 GAA (RA No. 11465) for Purposes of Augmentation of Appropriations Therein Due to the Continuing COVID-19 Pandemic
The DBM National Budget Circular No. 586, issued on May 21, 2021, provides guidelines for identifying agency savings from the FY 2020 General Appropriations Act (GAA) to support COVID-19 response efforts. It allows government agencies, state universities, and corporations to tap into unobligated allotments as of May 15, 2021, to augment funds for emergency subsidies and socio-economic relief for affected households and workers. Agencies must certify and report their savings by May 31, 2021, or risk having their savings determined based on earlier reports. The circular emphasizes the need for efficient fund allocation during the extended state of calamity due to the pandemic and urges other branches of government to adopt similar guidelines.
Quick Answers
- What is Guidelines for the Identification of Agency Savings under the FY 2020 GAA (RA No. 11465) for Purposes of Augmentation of Appropriations Therein Due to the Continuing COVID-19 Pandemic about?
- The DBM National Budget Circular No. 586, issued on May 21, 2021, provides guidelines for identifying agency savings from the FY 2020 General Appropriations Act (GAA) to support COVID-19 response efforts. It allows government agencies, state universities, and corporations to tap into unobligated allotments as of May 15, 2021, to augment funds for emergency subsidies and socio-economic relief for affected households and workers. Agencies must certify and report their savings by May 31, 2021, or risk having their savings determined based on earlier reports. The circular emphasizes the need for efficient fund allocation during the extended state of calamity due to the pandemic and urges other branches of government to adopt similar guidelines.
- What type of law is DBM National Budget Circular No. 586?
- Guidelines for the Identification of Agency Savings under the FY 2020 GAA (RA No. 11465) for Purposes of Augmentation of Appropriations Therein Due to the Continuing COVID-19 Pandemic (DBM National Budget Circular No. 586) is a Philippine Other Rules and Procedures enacted by the Congress of the Philippines.
- When was Guidelines for the Identification of Agency Savings under the FY 2020 GAA (RA No. 11465) for Purposes of Augmentation of Appropriations Therein Due to the Continuing COVID-19 Pandemic enacted?
- Guidelines for the Identification of Agency Savings under the FY 2020 GAA (RA No. 11465) for Purposes of Augmentation of Appropriations Therein Due to the Continuing COVID-19 Pandemic (DBM National Budget Circular No. 586) was enacted on May 21, 2021.
- What is the citation for Guidelines for the Identification of Agency Savings under the FY 2020 GAA (RA No. 11465) for Purposes of Augmentation of Appropriations Therein Due to the Continuing COVID-19 Pandemic?
- Guidelines for the Identification of Agency Savings under the FY 2020 GAA (RA No. 11465) for Purposes of Augmentation of Appropriations Therein Due to the Continuing COVID-19 Pandemic, DBM National Budget Circular No. 586, May 21, 2021 (Philippines)
Law Information
- Reference Number
- DBM National Budget Circular No. 586
- Date Enacted
- Category
- Other Rules and Procedures
- Subcategory
- Department of Budget and Management
- Jurisdiction
- Philippines
- Enacting Body
- Congress of the Philippines
Full Law Text
May 21, 2021
DBM NATIONAL BUDGET CIRCULAR NO. 586
| FOR | : | All Heads of Departments/Agencies/State Universities and Colleges (SUCs) and Other Offices of the National Government, Government Owned or Controlled Corporations (GOCCs) Receiving Budgetary Support; Budget Officers; Heads of Accounting Units; and All Others Concerned |
| SUBJECT | : | Guidelines for the Identification of Agency Savings under the FY 2020 GAA (RA No. 11465) for Purposes of Augmentation of Appropriations Therein Due to the Continuing COVID-19 Pandemic |
1.0 RATIONALE
1.1 The State of Calamity has been extended from the original six-month period from March 16, 2020 to September 16, 2020 (Proclamation 929 , s. 2020 n ) up to September 12, 2021, through Proclamation 1021, s. 2020. Given the emergent duration and scale of the COVID-19 pandemic, more funds must be made readily available, in a sustainable and responsible manner, to support the required intensified government-wide response and recovery measures including various forms of socio-economic relief and assistance to those affected by the imposition of stricter levels of community quarantine.
1.2 Relative thereto, the President issued Administrative Order No. 41, s. 2021 last May 12, 2021, to tap agency savings in the form of unobligated released allotments under the FY 2020 GAA which may be used to augment deficient items of appropriations authorized by the same GAA, including if necessary, items of appropriations for the provisions of emergency subsidies to low-income households and disadvantaged or displaced workers affected by the pandemic.
2.0 COVERAGE
All departments, agencies and operating units of the National Government, including SUCs, GOCCs receiving allotments covered by budgetary appropriations authorized under the FY 2020 GAA. This Circular shall cover released allotments under the FY 2020 GAA which remain unobligated as of May 15, 2021, but not expressly earmarked for the implementation of programs/activities/projects addressing the COVID-19 pandemic.
3.0 PURPOSE
To prescribe the guidelines for the agency submission of certification of savings and documents/reports to the DBM to be used as bases for the identification of savings corresponding to unobligated FY 2020 GAA-covered allotment balances as of May 15, 2021.
4.0 GUIDELINES
4.1 Each NGA/SUC/Constitutional Office/GOCC shall identify, certify and report their respective FY 2020 unobligated allotments as of May 15, 2021 on or before May 31, 2021. These unobligated allotments correspond to savings as a result of completed, discontinued or abandoned projects, or amounts generated due to improved systems and efficiencies which resulted to the achievement of targets at a lesser cost pursuant to Section 67 of the General Provisions of the FY 2020 GAA.
4.1.1 For this purpose, agencies shall submit to the DBM the updated FY 2021 Statement of Appropriations, Allotments, Obligations, Disbursements and Balances (SAAODB) (Financial Accountability Report (FAR) No. 1) as of May 15, 2021, pertaining to the FY 2020 appropriations.
4.1.2 The Certification of Identified Savings hereto attached as Annex A duly signed by the agency head, budget and finance officers of the government entity concerned shall likewise be submitted to the DBM not later May 31, 2021. The certification shall reflect adjustments, i.e., obligations incurred for the period April 1 to May 15, 2021.
4.2 Pending receipt of agency submission of updated SAAODB as of May 15, 2021, the DBM shall generate data from the FY 2021 SAAODB as of March 31, 2021 which shall be used as basis to determine the FY 2020 unobligated allotment balances.
4.3 In case agencies do not submit the required reports and certification mentioned in item 4.1 hereof within the cut-off period of May 31, 2021, the DBM shall consider the March 31, 2021 SAAODB reports from its records as confirmed and this shall serve as basis for recommendation to the President of the amount of savings.
4.4 The DBM shall submit a consolidated report of savings to the President, based on the certification prescribed and the reports/documents submitted by the agencies and/or DBM data.
4.5 Within the Executive Branch, the President is authorized to declare and use savings to augment any deficient item related to measures intended to alleviate the effects of the COVID-19 pandemic, including provision for emergency subsidies to low-income households and disadvantaged or displaced workers affected by the pandemic in accordance with Section 2 of A.O. 41, s. 2021.
4.6 While vested with fiscal autonomy, the Legislative and Judicial Branches of Government, as well as similar agencies so authorized, are strongly urged to adopt and implement the herein prescribed guidelines for the Executive Branch.
5.0 SEPARABILITY
If any part or provision of this Circular is held invalid or unconstitutional, other provisions not affected thereby shall remain in force and effect.
6.0 REPEALING CLAUSE
All provisions of existing circulars and other issuances inconsistent with this Circular are hereby rescinded/repealed and/or modified accordingly only for purposes of implementation of this circular.
7.0 SAVING CLAUSE
Cases not covered in this Circular shall be referred to the DBM for resolution.
8.0 EFFECTIVITY
This Circular shall take effect immediately.
(SGD.) WENDEL E. AVISADOSecretary
ANNEX A
Certification of Identified Savings
n Note from the Publisher: Written as "Proclamation 921, s. 2020" in the original document.
Cite This Law
Guidelines for the Identification of Agency Savings under the FY 2020 GAA (RA No. 11465) for Purposes of Augmentation of Appropriations Therein Due to the Continuing COVID-19 Pandemic, DBM National Budget Circular No. 586, May 21, 2021 (Philippines)
Guidelines for the Identification of Agency Savings under the FY 2020 GAA (RA No. 11465) for Purposes of Augmentation of Appropriations Therein Due to the Continuing COVID-19 Pandemic, DBM National Budget Circular No. 586 (Phil. 2021)
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