National Budget Call for FY 2020

February 26, 2019

DBM NATIONAL BUDGET MEMORANDUM NO. 131, S. 2019

 

1.0 CONTINUED IMPLEMENTATION OF BUDGET REFORMS

1.1 The government is modernizing the national budgeting process to improve the efficiency of underlying processes like planning, procurement, cash management, and payment systems. These improvements in our public financial management systems are aimed towards enhancing the volume and the quality of public services. The continuing transition, towards the annual cash-based budgeting (ACBB) system, as well as the consolidation of national government funds to the Treasury Single Account (TSA), are key pillars of this reform.

1.2 In the second year of the transition towards ACBB, there will be greater focus on ensuring the implementation-readiness of proposals through better procurement planning, programming of projects and activities, and coordination among agencies. With budgeting as the last phase of the planning process, agencies are expected to anchor their budget proposals on more concrete plans and designs that outline key procurement and implementation milestones, specific beneficiaries, and improvement in monitoring priority outputs and results.

1.3 To ensure that the national budgeting process works for the people across the different regions and provinces, the vertical linkage between the regional and national plans is being strengthened. Agencies should undertake consultations and coordination with the Local Government Units (LGUs) within the Regional Development Councils (RDCs) to ensure that the national priorities are responsive to regional and local needs in a manner that LGU development capacities are strengthened in the process.

2.0 EXPENDITURE MANAGEMENT FRAMEWORK

2.1 The FY 2020 budget proposal shall be consistent with the policies of the Duterte Administration as embodied in 0+10-Point Socio Economic Agenda and Philippine Development Plan.

2.2 Priority programs and projects contained in the Updated 2017-2022 Public Investment Program (PIP) and Approved 2020-2022 Three Year Rolling Infrastructure Program (TRIP) reflect the continuing emphasis on infrastructure spending. However, increased infrastructure spending will not, in any way, detract from the full support provided to the poorest, lagging and climate change and disaster risk vulnerable areas nor the social sector.

2.3 FY 2020 will reflect continued adoption of the following administrative reforms for greater budget transparency and reliability:

2.3.1 Annual Cash-based Budgeting (ACBB) System;

2.3.2 Two-Tier Budgeting Approach (2TBA);

2.3.3 Unified Accounts Code Structure (UACS);

2.3.4 Program-based budgeting structure through the Program Expenditure Classification (PREXC) approach;

2.3.5 Disaggregation of lump-sum amounts within the agency specific budgets to reflect the program/project, implementing agencies and/or regional or local levels;

2.3.6 A well-functioning, results-based and credible monitoring and evaluation system that will provide evidence-based information; and

2.3.7 Institutionalization of the Program Convergence Budgeting (PCB) strategy in the budget process to link, harmonize and synchronize the timing of critical program interventions.

2.4 To strengthen the vertical linkage between national and regional plans and budgets, agencies shall ensure that strategic regional needs are considered in national plans while ensuring that regional plans are aligned with national priorities.

2.4.1 Agency Central Offices (ACOs) shall coordinate its priorities for the medium-term and for FY 2020, with its respective Agency Regional Offices (AROs). ACOs shall provide guidance on the department's priorities in the different regions, on the assessment of implementation-readiness of the priority projects and activities in the regions, and on the consideration of the likely resource constraints for the regional planning and budgeting. In turn, AROs shall craft annual regional plans and budgets that are anchored to these priorities and criteria. AROs shall coordinate these with the RDCs to ensure convergence in the regions.

2.4.2 Agency Programs to be implemented by LGUs shall have been coordinated with the targeted LGUs as to the resource availabilities should be responsive to local needs.

2.4.3 The ACOs shall finalize their agency budget proposals and provide feedback to the RDCs, through their AROs, on the items that were included in the agency budget proposals.

3.0 DEPARTMENT/AGENCY BUDGET LEVELS

3.1 The total budget of departments and agencies shall be based on the total cash requirements for (a) ongoing programs, activities, and projects (Tier 1) and (b) for new and expanded spending (Tier 2).

3.2 In accordance with ACBB system, departments and agencies shall include in their budget proposals under Tier 1 the total cash requirements for the continued implementation of 2019 programs, activities, and projects (PAPs) that cannot be fully-implemented by the end of the fiscal year.

3.3 Annex A provides the detailed guidelines on the formulation of Tier 1 and Tier 2 levels, as well as the Forward Estimates (FEs) for out-years (2021-2022).

3.4 The Budget Priorities Framework (BPF) to serve as basis for the Tier 2 proposals shall be covered in a separate issuance.

4.0 SUBMISSION REQUIREMENTS

GENERAL PROCEDURES

4.1 All concerned shall submit Budget Preparation (BP) Forms per Annex B (BP Guidelines, Forms and Instructions) through the Online Submission of Budget Proposals System (OSBPS) and transmit to DBM three (3) hard copies of the required BP Forms duly endorsed by the Department Secretary/OEO Head. It must be emphasized that the hard copy submission must be the same as the encoded data under the OSBPS.

4.2 Agencies are reminded of the strict adherence to the submission deadlines specified in the Calendar of Activities per Annex C of this NBM.

4.3 For proposed special or general provisions, agencies are required to completely fill-out BP Form 300, especially the justifications for the inclusion of such provisions. Incomplete forms will not be tagged as submitted in the OSBPS, hence, will not be considered in the evaluation of proposed special and general provisions.

4.4 For Information and Communication Technology (ICT) budget proposals, the following are required to be submitted:

• DICT-ICT-endorsed Information Systems Strategic Plan (ISSP) containing the said proposal/s; and

• Signed BP form 202 for new and expanded ICT Projects consistent with the ISSP, copy furnished DICT.

4.5 All national government agencies shall submit the pertinent BP Forms and supporting documents cited in items 4.1 to 4.4 and 4.8 to 4.9 of this Memorandum directly to the Administrative Service-Central Records Division (AS-CRD), Ground Floor, DBM Building III, General Solano St., San Miguel, Manila. In the case of State Universities and Colleges (SUCs), the same requirements, as endorsed by CHED, are to be submitted to the DBM units (BMB-F and ROs) concerned.

4.6 FY 2019 P/A/Ps foreseen to spill-over its implementation in FY 2020 is still subject to DBM evaluation. To monitor these projects, departments and agencies should include in their proposals the funding requirements of P/A/Ps that were delayed in their implementation by 31 March 2019 using a separate BP Form 201 (Schedule A, B C or D), in excel format.

SPECIFIC PROCEDURES

4.7 In accordance with Philippine Commission on Women (PCW) Memorandum Circular No. 2018-05, the submission of the FY 2020 Gender and Development (GAD) Plan and Budget (GPB) shall be moved to the 2nd semester of 2019. This will synchronize the schedule of the GAD planning and budgeting process with the fiscal calendar of the national government as provided under DBM-DOF-NEDA Joint Circular 2017-1. The PCW shall issue a separate circular on the specific details of the submission of the FY 2020 GPB.

4.8 Agencies belonging to the education sector shall submit budget proposals covering only those activities to be implemented within the Calendar Year (CY) 2020 (January to December 2020 only), i.e., not the requirements for the whole Academic Year (June 2020 to March 2021).

Examples: Department of Education (DepEd) and State Universities and Colleges (SUCs), DND-Philippine Military Academy, National Defense College of the Philippines, DILG-Philippine Public Safety College, DOST-Philippine Science High School, DTI-Technical Education and Skills Development Authority, 1 OEO-Commission on Higher Education

4.9 The proposed infrastructure programs and projects included in the approved FY 2020-2022 TRIP as endorsed by NEDA, shall still be subject to DBM evaluation.

4.10 Departments and agencies shall likewise prepare the indicative 2020 Annual Procurement Plan (APP) to support their budget proposals. The APP shall be a consolidation of the different Procurement Projects as contained in their respective PPMPs. The indicative APPs shall be submitted to the DBM as part of the budget proposals.

4.11 In addition, the budget proposals of agencies involving specific concerns shall require agency endorsement as follows:

 

Endorsing Entity	Subject of Endorsement
CHED	State Universities and Colleges (SUCs) Budgets
DA	Research and Development (R&D) in Agriculture and Fisheries
PSA	Systems of Designated Statistics pursuant to EO 352
MITHI 2 Steering Committee	ISSP in support of ICT-related proposals
DOST	R&D in natural resources, environment, technological and engineering sciences
DENR-NAMRIA	Procurement of Data from Airborne and Space borne platforms and other related products and services for mapping purposes
ICF 3 Review Panel	Funding proposals pertaining to the Hosting of International Conferences
DOH	Early Childhood Care and Development Program
DA	Agricultural Development Program
DTI	Export Development Program
DOT	Tourism Development Program
DBM	Pasig River Convergence Program
DENR	Risk Resiliency Program
HUDCC	Marawi Rehabilitation and Reconstruction Program
NEDA	Three-Year Rolling Project (TRIP), Public Investment Program (PIP)
OPAPP	Payapa at Masaganang Pamayanan (PAMANA) Program

 

4.12 All endorsed projects by the above agencies shall still be subject to DBM evaluation.

5.0 For compliance.

(SGD.) BENJAMIN E. DIOKNOSecretary

ANNEX A

Guidelines on the Formulation of Tier 1 and Tier 2 Levels

GENERAL GUIDELINES IN THE COMPUTATION OF TIER 1 AND TIER 2

1.0 Department and agencies are reminded of the following key features distinguishing budgetary items for inclusion in Tier 1 and 2:

 

TIER 1

TIER 2

DEFINITION

Estimates pertaining to the following:   1. Amounts required for the budget year (FY 2020) to continue ongoing activities, programs, projects and commitments at the same scope and quality.

Covers two processes:   The amount available for Tier 2 proposals corresponds to the fiscal space, or the difference between the projected expenditure program (after considering projected revenues and deficit targets) and Tier 1. 1. Allocation of the fiscal space among new activities, programs, or projects, or the expansion of existing programs in terms of changes in scope, beneficiaries, timeframe, or outputs. 2. Reallocation of Tier 1 resources among P/A/Ps, and proposals for the scaling up of activities in terms of policy change not previously approved such as scope, beneficiaries, design or implementation schedule.

COMPOSITION

1. FY 2020 Tier 1 — FEs for the budget year: known budgetary amounts that are essential for the continued implementation of existing approved programs/activities/projects, including: • All costs of approved filled positions and approved allowances and entitlements as of December 31, 2018; and • Existing approved locally-funded or foreign-assisted capital projects based on the approved project profile. 2. Formulated FEs for the out-years FY 2021 and 2022.

FY 2020 Tier 2 high priority new & expanded program/project proposals, implementation-ready and compliant to the Investment Coordination Committee (ICC) and Three (3)-Year Rolling Infrastructure Program (TRIP) guidelines, but not yet funded in Tier 1. Tier 2 submissions will include proposals to reallocate resources between P/A/Ps, and proposals for the scaling up of activities in terms of policy change not previously approved such as scope, beneficiaries, design or implementation schedule.   This also encompasses the essential operations, maintenance, asset replacement and minor capital costs.

 

SPECIFIC GUIDELINES IN THE FORMULATION OF TIER 1 AND TIER 2 PROPOSALS

1.0 Formulation of Tier 1 Forward Estimates (FEs)

1.1 The FEs for FY 2020-2022 shall be formulated by the DBM in consultation with their respective departments/agencies coverage/s.

1.2 The Tier 1 FEs pertain to the annual requirements for the budget year (FY 2020) and out-years (FY 2021-2022) to implement ongoing programs, activities, and projects (P/A/P) in the same scope and quality.

1.3 The FY 2019 National Expenditure Program (NEP) shall be the basis for determining the list of on-going P/A/Ps.

1.4 The FEs for FYs 2020-2022 shall be formulated based on the NEP levels, which shall be adjusted taking into consideration of the 2018 Budget Utilization Rate (BUR) computed as current year's obligation (for MOOE and CO, as of December 31, 2018) over allotment on a per P/A/P BUR of the agency (as may be applicable).

1.5 Agencies with demand driven parameters, e.g., population-based shall all be subject to BUR.

1.6 The targeted outputs and outcomes shall be consistent with the level supported by the cash-based budgetary requirements formulated for the pertinent FEs years.

1.7 Department/agencies shall be advised of their approved FY 2020-2022 FEs.

2.0 Guidelines in the Composition of Tier 1 and Tier 2

2.1 The Tier 1 FEs shall consider the adjustments arising from changes in macro-economic parameters, namely, foreign exchange rate and inflation rate.

2.1.1 The foreign exchange rate of P53.50:$1.00 shall be used in determining the peso equivalent of foreign currencies. This rate shall be applied for FY 2020 until FY 2022.

2.1.2 The inflation rate of 3.0 percent4 shall only be used to adjust the levels of MOOE indexed items or those mandatory expenditure items that are affected by changes in the prices of commodities. Non-indexed items 5 are not subject to inflation since these are based on contract/rate and those with fixed amount. The indexed MOOE items shall be multiplied by the cumulative indexation factor for the corresponding year, as shown below:

 

YEAR	INFLATION	FACTOR
2019 (Base)	3.0%	-
2020	3.0%	1.03
2021	3.0%	1.06090
2022	3.0 %	1.09273

 

2.2 The Tier 2 estimates pertains to the amounts allocated for (a) new priority activities, and "scaling up" of existing activities in terms of scope, timing, number or type of beneficiaries, design or implementation method, and (b) reallocation of Tier 1 resources among programs and projects.

2.3 The details of Tier 1 and Tier 2 inclusions are shown in the table below.

 

TIER 1

TIER 2

A.	PERSONNEL SERVICES (PS)

A.1. For Inclusion in Agency PS Budget	• For CFAG Agencies: Salary and allowances of all filled and unfilled positions reported in the GMIS as of December 31. 2018, based on SSL 4th tranche. • For other Agencies: Salary of all filled positions reported in the GMIS as of December 31, 2018, based on SSL 4th tranche. • For all Agencies: o Other standard allowances benefits and incentives of filled positions reported in the GMIS as of December 31, 2018 i.e., PERA, Uniform/Clothing Allowance, Midyear Bonus, Year-End Bonus, Cash Gift, PEI, including RATA; o Other non-interface PS items such as Anniversary Bonus, Magna Carta Benefits, Loyalty Pay of filled positions reported in the GMIS as of December 31, 2018, as well as existing authorized allowances and collaterals of Military/Uniformed Positions (MUPs) such as, hazard pay, combat duty pay, etc.; o Step Increment due to Length of Service per CSC-DBM Joint Circular No. 2012-1; o Lumpsum for Casuals and Contractuals adjusted to SSL 4th tranche, subject to submission of BP 204; o Terminal Leave (TL) benefits of compulsory retirees, subject to submission of BP 205; and o TL and Retirement Gratuity (RG) of MUPs and compulsory retirees of other agencies covered by special laws.	• Adjustments in PS due to budget policy decision such as: o Implementation of a new program or activity; o Abolition or expansion of PAP; o Major change in the organizational structure of an agency; and o Transfer of functions between agencies.
A.2. For inclusion in Miscellaneous Personnel Benefits Fund (MPBF)	• 30% of the PS cost of unfilled civilian positions, except those provided otherwise; May be transferred to Agency Budget during Tier 2 deliberation: • 100% of the PS cost of new positions based on population-based formulas (e.g., teaching and MUP positions, among others); • 100% of the PS cost of the following unfilled positions: o Uniformed personnel in PNP, BJMP, BFP, PCG, NAMRIA, and BuCor; o teaching positions; o military personnel in the DND; and • 75% of the PS cost of unfilled medical and medical-allied positions.	• 100% of the PS cost of new positions and staffing modifications approved by the DBM after December 31, 2018. • 75% of the PS cost of positions proposed for creation and staffing modifications with legal basis, established standards, or with evaluation based on complete agency submission of documentary requirements; • Step Increment due to Meritorious Performance per CSC-DBM Joint Circular No. 2012-1; and • Proposed overtime pay requirements per CSC-DBM JC No. 2015-2.
A.3. For inclusion in Pension and Gratuity Fund (PGF)	• Pension payments for existing retirees for Military/uniformed personnel and agencies covered by special laws, i.e., Judiciary, OSG, OGCC, NLRC, PRC, ERC, LRA, DOJ-National Prosecution Service, PAO and Ombudsman.	• TL and RG for optional retirees; • Pension payments for new retirees for Military/uniformed personnel, and agencies covered by special laws, i.e., Judiciary, OSG, OGCC, NLRC, PRC, ERC, LRA, DOJ-National Prosecution Service, PAO and Ombudsman; • Monetization of Leave Credits; and • Separation benefits and/or incentives of affected personnel pursuant to rightsizing the bureaucracy, re-organization, merger, streamlining, abolition, or privatization authorized under applicable laws, rules and regulations.

B.	MAINTENANCE AND OTHER OPERATING EXPENSES (MOOE)

	• Funding requirements to implement ongoing activities, programs and projects; • Budget requirements for regular periodic activities or programs such as the Philippine Statistics Authority (PSA) periodic surveys and the COMELEC preparatory activities for the conduct of elections for the pertinent year; • ICT P/A/Ps previously covered by existing ISSP as endorsed or approved by the MITHI; • Infrastructure subsidy support to GOCCs • Resources required for the pursuit of existing or ongoing ISO 9001:2015 Quality Management System certification efforts including recertification and expansion of the scope (processes and/or sites) of the QMS certification; and	• Funding requirements to cover new or expanded existing activities, programs and projects, as identified under the BPF; • MOOE costs to implement approved major changes in the organization or structure of an agency, including downsizing or mergers; • MOOE costs not included in the FEs: o Due to changes in demand driven parameters of Medium Term Expenditure Plans (MTEP); o Already approved rolling development or expansion plans; • Proposed resources needed for ISO 9001:2015 QMS certification efforts for an agency which is yet to start/pursue the same;
	Others which are not in the FY 2019 NEP • Reasonable costs needed to ensure the operation of newly completed facilities as of December 2018 but not provided in the FY 2019 budget, e.g., furniture, fittings and operating costs (electricity, fuel, rent) — taking into account of any reductions in existing costs (e.g., rent); and • Office accommodation and equipment costs for newly-approved filled positions;	• Expanded/new ICT P/A/Ps with BP Form 202, covered by the current ISSP, as endorsed by the MITHI; • Proposals to realign MOOE funds between P/A/Ps to improve outcomes including abolition of P/A/Ps; and • New/expansion of infrastructure subsidy support to GOCCs and LGUs. • Maintenance costs for projects to be completed by 2019 • PAMANA projects to be endorsed by OPAPP

C.	CAPITAL OUTLAYS (CO)

	• The cost of ongoing capital projects that have been approved in previous years; • Approved projects covered by MYOA subject to revision to reflect the cash requirements that shall be paid within the year in consideration; • Replacement of motor vehicles for the same purpose and/or intended user that will reach their end-of-productive/useful/economic life by FY 2020 per DBM-established guidelines, supported with an updated inventory of motor vehicles and re-fleeting program, as well as proof of disposal of retired assets if applicable; • Maintenance cost and spare parts of existing critical assets (e.g., airplanes, critical equipment, trains, etc.) to ensure their continued operation. • ICT P/A/Ps previously covered by existing ISSP as endorsed or approved by the MITHI (e.g., software/hardware and license renewals; and	• Proposed new infrastructure projects included in the approved FY 2020-2022 TRIP; • Proposed adjustments in the total cost of an already approved project by the NEDA Board or ICC as of March 31, 2019, which are implementation-ready; • Proposed requirements for the purchase of motor vehicles for additional/newly-entitled officials and/or functions of a newly-created agency; • Expanded/new ICT P/A/Ps with BP Forms 202; • PAMANA projects to be endorsed by OPAPP; and • Other proposed new and expanded capital outlays that are non-infrastructure in nature, which are implementation-ready
	Others which are not in the FY 2019 NEP • Basic CO requirements of newly completed facilities and newly approved filled positions as of December 31, 2018 but not provided in the FY 2019 budget.

 

3.0 Department/agency Budget Levels

3.1 The Tier 1 Forward Estimates level as formulated pursuant to the guidelines presented herein shall become the department/agency budget level for its ongoing programs/projects for FY 2020.

3.2 The Tier 2 requirements shall be chargeable against the available fiscal space as determined by the Development Budget Coordination Committee (DBCC).

3.3 The total budget of each department/agency shall be determined by the TIER 1 requirements for ongoing spending and the TIER 2 requirements for new spending and expansion of P/A/Ps.

ANNEX B

Budget Preparation Guidelines, Forms and Instructions

Specific Guidelines on the Allocation for Objects of Expenditure

The following information will assist agencies in providing adequate provision for each sub-object to meet mandatory requirements in accordance with existing legislation and guidelines, including the UACS.

Personnel Services BP 201-A

The basis for the computation of all Personnel Services for FY 2020 shall be the number of filled itemized positions, based on the approved staffing pattern, as of the cut-off date of December 31, 2018.

For the Judiciary, Congress, and agencies vested with fiscal autonomy, basic salaries for both filled and unfilled positions at the cut-off date shall be included.

Agencies shall observe the guidelines and deadlines for updating the Personnel Services Itemization/Plantilla of Personnel (PSIPOP), prescribed in NBC 549 dated October 21, 2013 and subsequent circulars that may be issued for the purpose.

1.0 Salaries and Wages

1.1 Salaries of Permanent Positions

1.1.1 The applicable rate to be used for calculating salaries is the authorized basic salaries of positions and step increments due to length of service and/or meritorious performance, if any, as of December 31, 2018.

1.1.2 Positions identified as co-terminus with the incumbent shall be automatically abolished once vacated.

1.2 Salaries/Wages of Casual/Contractual

1.2.1 Details of Salaries/Wages of Non-Permanent Positions classified into Contractual, Casual and Emergency Personnel and Substitute Teachers/Instructors are to be reflected in BP Form 204.

1.2.2 Only DBM-approved/authorized positions shall be included, consistent with the approved Rationalization Plans, as applicable.

1.2.3 Provision for non-permanent positions shall be inclusive of other PS-related benefits, i.e., PERA, Uniform/Clothing Allowance, Mid-Year and Year-End Bonus, Cash Gift, PhilHealth, Pag-IBIG, ECIP and RLIP Contributions.

1.2.4 Non-submission of BP Form 204 shall mean no budget provision for non-permanent positions.

1.3 Requests for Additional Casual and Contractual positions for staffing of duly created/co-terminus with the ad-hoc bodies, may be proposed in Tier 2. Moreover, subject to the scrap and build policy, positions for development projects to augment the core staff of the Project Office/unified PMO may be created, pursuant to NBC No. 485 dated March 13, 2003.

2.0 Other Compensation

2.1. Personnel Economic Relief Allowance (PERA)

The PERA of P2,000/month shall cover all positions entitled thereto pursuant to Budget Circular No. 2009-3. The total amount shall be based on the number of filled itemized positions as of December 31, 2018.

2.2 Representation Allowance (RA) and Transportation Allowance (TA)

Appropriations for RA and TA shall be provided for the following filled positions and those of equivalent ranks in accordance with the monthly rates for each type of allowance, as follows:

P14,000 — Department Secretaries or equivalent;

P11,000 — Department Undersecretaries or equivalent;

P10,000 — Department Assistant Secretaries or equivalent;

P9,000 — Bureau Directors and Department Regional Directors or equivalent;

P8,500 — Assistant Bureau Directors, Department Assistant Regional Directors, Bureau Regional Directors, Department Service Chiefs or equivalent;

P7,500 — Assistant Bureau Regional Directors or equivalent;

P5,000 — Chief of Division or equivalent.

2.3 Uniform/Clothing Allowance (U/CA)

The provision for P6,000 per annum for U/CA for civilian personnel shall be computed based on the number of filled itemized positions as of the cut-off date above.

2.4 Subsistence, Laundry, and Quarters Allowances (SLQA)

The SLQA under the Magna Carta Benefits of Public Health Workers pursuant to R.A. No. 7305 shall be in accordance with the DBM-DOH Joint Circular (JC) No. 1, s. 2012 as amended by DBM-DOH JC No. 2016-01.

The SLQA authorized for specific positions other than public health workers shall be computed based on the rates authorized under specific laws, rules and regulations.

2.5 Step Increment Due to Meritorious Performance

Maximum number of employees that may be granted Step increment due to Meritorious Performance shall be limited to five percent (5%) of all incumbent officials and employees in an agency with a Performance Management System approved by the Civil Service Commission (CSC), in accordance with the guidelines under the CSC-DBM Joint Circular No. 1, s. 2012 dated September 3, 2012.

2.6 Step Increment Due to Length of Service

One (1) step increment shall be granted to qualified personnel for every three (3) years of continuous satisfactory service in the present position, pursuant to CSC-DBM JC No. 1, s. 2012 dated September 3, 2012.

2.7 Anniversary Bonus

The provision for Anniversary Bonus (AB) at P3,000.00 per qualified personnel shall be made only on the occasion of the agency's milestone year (15th anniversary and every 5 years thereafter) in accordance with Administrative Order No. 263 dated March 28, 1996 and National Budget Circular No. 452 dated May 20, 1996. This should be supported by the legal basis on the creation of the agency.

2.8 Loyalty Award

The provision for the cash gift component of the Loyalty Award for qualified officials and employees, in addition to the loyalty memorabilia/souvenir, on the occasion of the incumbent's milestone year (10th year anniversary and every 5 years thereafter), shall be computed at P500.00 but not more than P1,000.00 for every year of service, in accordance with CSC MC No. 06, s. 2002. Hence, the Loyalty Award shall be at a maximum of P10,000 for the first 10 years of continuous and satisfactory service; and a maximum of P5,000 for every 5 years thereafter.

2.9 Overseas allowances

The allowances of personnel assigned abroad such as overseas, living quarters, family, clothing, post and representation allowances shall be at rates authorized under R.A. No. 7157 and E.O. No. 156, s. 2013.

2.10 Honoraria

Honoraria shall be paid to the following personnel subject to the guidelines issued by the DBM:

2.10.1 Teaching personnel of the DepEd, TESDA, SUCs, and other educational institutions engaged in actual classroom teaching and whose teaching load is outside the regular office hours and/or in excess of the regular teaching load;

2.10.2 Those who act as lecturers, resource persons, coordinators, and facilitators in seminars, training programs, workshops, and other similar activities conducted by other agencies;

2.10.3 Chairs and members of Commissions/Boards/Councils and other similar entities who are neither paid salaries nor per diems but compensated in the form of honoraria as provided by law, rules, and regulations;

2.10.4 Those involved in science and technological activities who render services beyond their regular workload;

2.10.5 Officials and employees assigned to special projects provided that:

2.10.5.1 Said special projects are reform-oriented or developmental, contribute to the improvement of service delivery and enhancement of the performance of the core functions of the agency and have specific timeframes and deliverables for accomplishing objectives and milestones set by the agency for the year; and

2.10.5.2 Such assignment entails rendition of work in addition to, or over and above, their regular workload.

2.10.6 Officials and employees authorized to receive honoraria under R.A. No. 9184 and its IRR.

 The rates of honoraria shall depend on the level of responsibilities, nature of work rendered, and extent of individual contribution to produce the desired outputs. The total honoraria received from all special projects shall not exceed 25% of the annual basic salary.

2.11 Longevity Pay

Longevity Pay for specific positions, equivalent to a percentage of basic salary or base pay depending on length of service, shall be computed based on existing policies and guidelines. Payment of longevity pay shall be governed by the following:

2.11.1 Health Workers — DBM-DOH JC No. 1, s. 2012, as amended by DBM-DOH JC No. 2016-1

2.11.2 Science and Technology Workers — DBM-DOST Joint Circular No. 1, s. 2013

2.11.3 Social Workers — R.A. No. 9433

2.11.4 Military and Uniformed Personnel — RA. No. 1134, as amended by R.A. No. 3725

Those who are enjoying longevity pay shall no longer be entitled to step increment.

2.12 Cash Gift

Cash Gift equivalent to P5,000 shall be computed based on the number of filled positions as of December 31, 2018.

2.13 Year-End Bonus

Year-end Bonus equivalent to one (1) month basic salary or base pay shall be computed based on the number of filled positions as of December 31, 2018.

2.14 Mid-Year Bonus

Mid-Year Bonus equivalent to one (1) month basic salary or base pay shall be computed based on the number of filled positions as of December 31, 2018.

2.15 Collective Negotiation Agreement (CNA) Incentive

Pursuant to Budget Circular No. 2018-5, the actual obligations for CNA Incentive shall be reflected in BP Form 201-A under the account code "Collective Negotiation Agreement Incentive-Civilian."

2.16 Productivity Enhancement Incentive (PEI)

PEI equivalent to P5,000 shall be computed based on the number of filled positions as of December 31, 2018.

3.0 Other Personnel Benefits

3.1 Pension Benefits

The requirement of agencies with special retirement laws for their officials such as the Judiciary, Chairs and Members of Constitutional Commissions and other similarly situated officials in the Office of the Solicitor General (OSG), Office of the Government Corporate Counsel (OGCC), National Labor Relations Commission (NLRC), Professional Regulation Commission (PRC) Energy Regulatory Commission (ERC), Office of the Ombudsman, AFP, PNP, BFP, BJMP, PCG, PAO, LRA, DOJ-National Prosecution Office, NAMRIA and BuCor including those for ex-Presidents or their surviving spouses, shall be computed based on the provisions of said special retirement laws.

3.2 Retirement Gratuity Benefits (RGB):

3.2.1 Agencies shall accomplish BP Form 205 for the list of FY 2020 retirees for budget provision and programming purposes. Separate lists shall be prepared for mandatory and optional retirees.

• In the absence of a BP 205, any amount indicated under the RG column in the BP 201 Schedule A will be disapproved.

• In case of discrepancy between the amount for RG in BP 201 Schedule A and BP 205, the amount in BP 205 shall prevail.

3.2.2 Claims for RGB of retirees who opt to avail of the benefits under R.A. No. 1616 may be accommodated against the FY 2020 Pension and Gratuity Fund (PGF), in the absence of agency savings. The computation of the RGB under R.A. No. 1616 shall be based on the total creditable service which is converted into gratuity months, as follows:

• 1 gratuity month — for each creditable year of service not exceeding 20 years

• 1.5 gratuity months — for each creditable year of service over 20 years but not exceeding 30 years

• 2 gratuity months — for each creditable year of service over 30 years

For this purpose, agencies are enjoined to properly accomplish BP Form 205 for the list of proposed retirees in FY 2020, i.e., those retiring under R.A. 1616 and other retirement packages (e.g., R.A. No. 8291, 660). In the absence of the said list, agencies will not be allowed to charge the payment of RGB against the PGF.

For non-GSIS members, computation shall be based on special laws governing the same, using BP Form 205.

3.3 Terminal Leave Benefits (TLB):

3.3.1 Agencies shall also use BP Form 205 to reflect the terminal leave benefits of FY 2020 retirees. TLB of compulsory retirees whether permanent or casual, shall be computed separately from those of optional retirees.

• In the absence of a BP 205, any amount indicated under the TL column in the BP 201 Schedule A will be disapproved.

• In case of discrepancy between the amount for TL in BP 201 Schedule A and BP 205, the amount in BP 205 shall prevail.

3.3.2 Terminal Leave Benefits for employees who retired effective January 23, 2016 onwards shall be computed as follows, pursuant to Budget Circular 2016-2 dated March 29, 2016:

 

TLB	=	S x D x CF
Where:
TLB	-	Terminal Leave Benefits
S	-	Highest monthly salary received
D	-	No. of accumulated vacation and sick leave credits
CF	-	Constant Factor is 0.0481927

 

4.0 Personnel Benefit Contributions

4.1 Government counterpart contributions shall be computed based on filled itemized positions as of the cut-off date.

4.1.1 GSIS RLIP — 12% of total salaries with the exception of the following who are covered by separate and specific laws:

4.1.1.1 For members of the Judiciary, Chair and Members of the Constitutional Commissions and other similarly situated officials in the OSG, OGCC, NLRC, PRC and ERC, the computation shall be 3% of total salaries (corresponding only to Life Insurance Premiums); and

4.1.1.2 For military personnel of the DND, uniformed personnel of the DILG, DOTr (PCG) and DENR (NAMRIA), no provision for RLIP shall be made.

4.2 PAG-I.B.I.G Contributions — P1,200 each per annum.

4.3 PHILHEALTH Contributions — in accordance with the Premium Contribution Item IV of Philhealth Circular No. 2017-0024.

4.4 ECIP — 1% of the annual basic salary or P1,200/annum, whichever is lower.

5.0 Agencies with Military and Uniformed Personnel

In addition to the Base Pay that is authorized for military and uniformed personnel as discussed in item 1.0 of Salaries and Wages under this Annex, other personnel benefits include the following:

5.1 Regular Pay and Allowances

5.1.1 Longevity Pay equivalent to a percentage of base pay depending on length of service;

5.1.2 Subsistence Allowance of P150.00 per day;

5.1.3 Quarters allowance ranging from P400 to P1,500 depending on the rank;

5.1.4 Clothing Allowance of P200 per month;

5.1.5 Hazard Pay of P540 per month; Laundry allowance of P60 per month for officers and P30 per month for non-officers.

5.2 Duty-based allowances and collaterals, such as, but not limited to combat duty pay and combat incentive pay, shall be given to military uniformed personnel in accordance with existing laws and established guidelines.

5.2.1 Combat Duty Pay of P3,000 per month to the officers and enlisted personnel of the AFP and uniformed personnel of the PNP under E.O. No. 03, s. 2016, amending EO No. 38, s. 2011.

5.2.2 Additional Combat Incentive Pay of P300 per day not exceeding P3,000 per month to the members of the AFP and the uniformed personnel of the PNP who figure directly in actual combat against members of various insurgent, terrorist and lawless elements, subject to conditions prescribed under E.O. No. 03, s. 2016.

5.3 Special Group Term Insurance not exceeding P72 each per annum.

Maintenance and Other Operating Expenses (MOOE) — BP 201-B

6.0 Extraordinary and Miscellaneous Expenses

This item provides for expenses incidental to the performance of official functions such as, meetings, conferences, public relations, educational, cultural and athletic activities.

The annual appropriations for Extraordinary Expenses shall be provided for the following officials at rates not exceeding:

P264,000 — for each Department Secretary or equivalent;

P108,000 — for each Department Undersecretary or equivalent;

P60,000 — for each Department Assistant Secretary

P45,600 — for each head of a bureau or organization of equivalent rank, and for each head of a Department Regional Office including General Manager of Local Water District in Category A and B;

P26,400 — for each head of a Bureau Regional office or organization of equivalent rank including General Manager of Local Water District in Category C and D; and

P19,200 — for each Municipal Trial Court Judge, Municipal Circuit Trial Court Judge, and Shari'a Circuit Court Judge.

Additional Miscellaneous Expenses not exceeding P72,000 per annum shall be provided for each of the offices of the above-named officials and its equivalent.

Financial Expenses — BP 201-C

Estimated amounts for Financial Expenses should be assigned to the relevant UACS category. No amounts should be provided for 'Other Financial Charges.'

Capital Outlays — BP 201-D

7.0 Infrastructure Outlay

Budget proposal for infrastructure outlay shall adopt the most recent standard cost from DPWH for infrastructure, i.e., factoring resiliency to withstand natural calamities and other prerequisites as enumerated in BP Forms 202 and 203.

8.0 Transportation Equipment Outlay

The following guidelines shall be considered in the determination of transportation equipment requirements of agencies:

8.1 Proposals for the purchase of motor vehicles shall be subject to pertinent provisions of the General Appropriations Act, National Budget Circular Nos. 446 and 446-A and Budget Circular No. 2017-1 and Administrative Order No. 233 (s. 2008) as amended by Administrative Order No. 15 (s. 2011), prohibiting the acquisition by government offices of luxury vehicles.

8.2 The agency shall determine and dispose its unserviceable motor vehicles subject to pertinent COA rules and regulations. No amount shall be provided for the repair of unserviceable vehicles.

8.3 Motor vehicles that should be replaced shall likewise be determined. The provisions of NBC 446 shall, however, be strictly adhered to in the replacement of motor vehicles.

8.4 Based on the car re-fleeting program, it is understood that old motor vehicles should have been disposed before the purchase of new units, pursuant to item 4.6.1 of CL No. 2008-9.

ICT Related Expenditures:

9.0 Agency budget proposals for ICT programs and projects processed through the MITHI Steering Committee shall already be considered by DBM as evaluated and endorsed by recognized technically proficient government stakeholders.

10.0 The following rules shall be observed in the tagging of activities in the OSBPS:

10.1 Classification of Functions of Government (COFOG) tagging up to the second level category i.e., sub-sector level, and re-categorization of GAS and STO from General Services to the appropriate Function/Sector of the agency per COA-DBM-DOF JC No. 1 dated August 11, 2017;

10.2 Online tagging of proposed programs/projects to facilitate real-time monitoring of budgets for Climate Change per DBM-CCC JMC 2015-1 dated March 24, 2015; and

10.3 ICT-pertinent proposals shall be tagged as part of MITHI.

BP FORMS AND INSTRUCTIONS

 

BP Form	Title
A	Program Budget Matrix
B	Agency Performance Measures (Program)
C	Summary of RDC Inputs and Recommendations on Agency New and Expanded Programs and Projects
D	Report of CSO's Inputs on Ongoing and New Spending Projects and Activities
100	Statement of Revenues (General Fund)
100-A	Statement of Revenues and Expenditures (Earmarked Revenues)
100-B	Statement of Other Receipts/Expenditures (Off-Budgetary and Custodial Funds)
100-C	Statement of Donations and Grants (In Cash or In Kind)
200	Comparison of Appropriations and Obligations
201	Summary of Obligations and Proposed Programs/Projects
201-A	Obligations for Personnel Services (PS)
201-B	Obligations for Maintenance and Other Operating Expenditure (MOOE)
201-C	Obligations for Financial Expenses (FinEx)
201-D	Obligations for Capital Outlays (CO)
201-E	Summary of Outyear Requirements
201-F	Climate Change Expenditures
202	Proposal for New or Expanded Locally-Funded Projects
202-A	Convergence Programs and Projects
203	Proposal for New or Expanded Foreign-Assisted Projects
204	Staffing Summary of Non-Permanent Positions
205	List of Retirees
300	FY 2020 Proposed Provisions

 

BP Form A

 

Agency Performance Measures

 

BP Form CSummary of RDC Inputs and Recommendations on Agency New and Expanded Programs and Projects FY 2020 Budget

 

BP Form D

 

BP Form 100

 

BP Form 100-A

 

BP Form 100-B

 

BP Form 100-C

 

BP Form 200: Comparison of Appropriations and Obligations

 

BP Form 201 — Summary of Obligations and Proposed Programs/Projects

 

BP Form 201 — Schedules A

 

BP Form 201 — Schedules B

 

BP Form 201 — Schedules C

 

BP Form 201 — Schedules D

 

BP Form 201 — (Schedules A, B, C and D) Summary of Obligations and Proposed Programs/Projects

 

BP Form 201-E — Summary of Outyear Requirements

 

BP Form 201-F

 

Revised BP Form 202 (2020 Budget Tier 2)

 

BP Form 202-A

 

Matrix of Priority Programs and Participating Agencies

 

Revised BP Form 203 (2020 Budget Tier 2)

 

BP Form 204

 

BP Form 205

 

BP Form 300

 

ANNEX C

Calendar of Activities

FY 2020 DETAILED BUDGET PREPARATION CALENDAR

 

ACTIVITY	2020 Calendar	Responsible Unit
within DBM	Outside DBM

1. Budget Forum i. DBM Officials and Staff ii. National Government Agencies iii. Government Corporations 2. DBM-RO/Agency ROs Budget Forum 3. RDC Consultation/Dialogue with Selected Agency Central Offices (CO)/ROs 4. Consultations with: i. Regional Development Councils ii. Civil Society Organizations iii. Student/Faculty Associations and PASUC iiii. Other Stakeholders under the Assistance to Municipalities 5. Submission (thru OSBP) of B.P. Form Nos 201 A. B, C, D — Past Year's Actual Obligation and FY 2018-2022 Revenue Program 6. Presentation to the DBM Secretary of the Tier I Level 7. Sending of Letters to Agencies informing them of their Tier I Level 8. Presentation to the President and the Cabinet of the Approved Tier 1 Level of Department/Agency/Special Purposes Funds 9. Issuance of NBM for Budget Priorities Framework and Tier I Level Ceiling 10. Deadline of Submission (thru OSBPS) of CY 2020 Budget Proposals Tiers 1 (FEs) and 2 as well as Summary of Outyear Requirements 11. Conduct of Technical Budget Hearings for Tier 2 (New Spending) Proposals, including PCB 12. Conduct of ERB Hearings for Tier 2 Level, including PCB 13. Sending of Confirmation Letters to Agencies of the Total Budget Levels (Tiers 1 and 2) 14. Presentation to the President and the Cabinet of the CY 2020 Proposed Budget Levels of Department/Agency/Special Purpose Funds 15. Finalization of National Expenditure Program (NEP), Budget of Expenditures and Sources of Financing (BESF) Tables, Staffing Summary, President's Budget Message 16. Printing of CY 2020 Budget Documents 17. Submission of the CY 2020 Budget Documents to the President 18. Submission of the CY 2020 President's Budget to Congress (Day of the State of the Nation Address)

January 24, 2019 January 25, 2019 (Morning) January 25, 2019 (Afternoon) January 2019 February 2019   February 2019           January 28-February 15, 2019     March 14-15, 2019 March 19-21, 2019   March 25, 2019     March 27-April 7, 2019   May 3, 2019     April 22-May 20, 2019   May 22-June 5, 2019 June 13-14, 2019   June 17, 2019     June 19-24, 2019     June 25-July 6, 2019 July 8, 2019   July 22, 2019

BTB BTB BMB-C ROs                       BTB BTB, BMBs & ROs   FPRB     FPRB         BMBs/ROs   BTB, BMBs & ROs BTB, BMBs & ROs   FPRB     BTB, BMB-C ICTSS, LS, FPRB, OPCCB & BITS BTB, BMB-C ICTSS, LS, FPRB, OPCCB & BITS OSEC & BTB BTB

Agencies     NEDA Agencies CHED DILG   Agencies                     Agencies     Agencies

 

Footnotes

1. Transferred from OEO to DTI per Executive Order No. 67 dated October 31, 2018.

2. Medium-Term Information and Communications Technology Harmonization Initiative.

3. International Commitments Fund (ICF).

4. Approved by the Development Budget Coordination Committee on October 16, 2018.

5. Non-indexed MOOE items include Rents, Professional Services, Subscription Expenses, Membership Dues and Contributions, Confidential and Intelligence, Extraordinary and Miscellaneous Expense, Awards and Indemnities, Subsidies and Donations, Taxes and Premiums, Labor and Wages, Rewards and Other Claims and Other expenses based contract/rate or with fixed amount.