Introduction:
The Department of Budget and Management (DBM) recently issued Circular Letter No. 2023-13, which emphasizes the importance of adhering to the deadline for the submission of agency requests for the release of additional funds for the rest of CY 2023. Said Circular aims to optimize the utilization of available funds and ensure effective budget management.
In this blog post, we will delve into the contents of the Circular and its significance for government agencies, and other concerned parties.
Key Features of DBM Circular Letter No. 2023-13:
The Circular emphasizes the limited validity period for the release, obligation, and utilization of budget authorizations. It stresses the need for agencies to submit their requests for additional Special Allotment Release Orders (SAROs) and/or Notice of Cash Allocations (NCAs) to the DBM up to November 15, 2023. This deadline aligns with the guidelines provided in National Budget Circular No. 590 (Fund Release Guidelines for CY 2023), issued on January 3, 2023.
Rationale behind the November 15 Deadline:
The primary objective of setting the deadline is to maximize the use of available funds. By adhering to the deadline, government agencies can effectively plan their financial activities and ensure the timely execution of projects and programs for the rest of the year. Additionally, the deadline allows the DBM to assess and process the requests promptly, promoting efficient and accountable utilization of public funds.
Exemptions from the November 15 Deadline:
While the deadline is emphasized, the DBM provides certain exceptions such as mandatory and urgent requests related to PS (Personnel Services) deficiencies, such as but not limited to Retirement and Life Insurance Premium (RLIP) contributions, as well as disaster mitigation projects/programs. This means that DBM may still accept agency requests even after the deadline. These exemptions aim to address critical needs and ensure the government’s ability to respond promptly to unforeseen circumstances and urgent requirements.
Implications for Government Departments and Agencies:
The Circular serves as a reminder to heads of departments, agencies, state universities, budget officers, and other concerned parties about the importance of timely submission. It underscores the need for proactive planning, effective budget utilization, and accurate forecasting of financial requirements.
Consequences of Late Submissions:
As stressed in Circular Letter No. 2023-13, requests received by the DBM beyond the November 15, 2023 deadline will be deferred to the next fiscal year (FY 2024). This highlights the significance of complying with the stringent timeline set forth to avoid delays in the release of additional funds.
Conclusion:
Circular Letter No. 2023-13 issued by the Department of Budget and Management aims to enhance fiscal discipline and accountability in the utilization of public funds. By reiterating the deadline for the submission of agency requests for additional funds, the circular emphasizes the need for effective budget planning, timely execution of projects, and prudent financial management. Government agencies must carefully adhere to the deadline to avoid deferment and ensure the smooth implementation of essential programs and projects for the benefit of the Filipino people.
Reference:
DBM Circular Letter No. 2023-13 — Reiteration of the Deadline for Submission of Agency Request/s for the Release of Additional Funds Requiring the Issuance of SARO/NCA
