Budget Secretary Florencio B. Abad on Tuesday said the Department of Budget and Management (DBM) has already released 78 percent, or P2.037 trillion, of the P2.606-trillion national budget for 2015 to recipient government agencies and departments to address procurement delays and fast-track project implementation.
He said under the new budgetary-reform program, dubbed as GAA-as-Release Document (GAARD), government agencies are required to obligate funds on the start of the fiscal year to facilitate the spending upon budget release.
The new scheme also allows government agencies and departments to enter into contracts and kick-start the procurement process from the start of the fiscal year.
“This is because the disaggregated budget items in the GAA—specifically under the GAARD regime—are already considered released to their respective agencies,” said Abad in a news statement.
The new budgetary reform is being implemented under National Budget Circular 556 on the Release of Funds for 2015.
“In keeping with the GAA-as-Release-Document regime we started last year, the release of a major component of the 2015 budget at the start of the year will ensure greater efficiency in public spending. With the GAA standing as the official budget release document, we’re able to address previous issues in transparency, delays in project implementation, and accountability in the expenditure process,” Abad said.
The budget chief said that the remaining 22 percent of the national budget, worth P568.7 billion, will be considered for later release and will be done through the special allotment release order subject to compliance with required documents and clearances.
Abad explained that the increase in the initial fund release is due to the adoption of the “no lump-sum policy” in the General Appropriations Act and the comprehensive release of budgets in most departments, including the Department of Agriculture’s provision for farm-to-market roads and national programs for rice, corn and livestock.
“The goal of the budget’s early release is to give agencies a head-start in the procurement process for their projects. But we also plan to aggressively clear spending bottlenecks by working closely with agencies, and making sure they make the most of the funds released to them,” Abad said.
Under the circular, agencies need to execute priority programs and projects within one year so they can deliver public goods and service at the soonest possible time.