DBM Guidelines on the Processing of Requests for Personnel Services (PS) Deficiencies for CY 2023

Purpose and Reason for Issuing this Circular

The Department of Budget and Management (DBM) issued Circular Letter No. 2023-11 dated August 15, 2023 to provide government agencies concerned with the guidelines on the processing of requests for Personnel Services (PS) deficiencies for CY 2023.

PS deficiencies are common every year since there are personnel requirements which may have not been considered during the preparation of the agency budget or the proposed budget for personnel requirements has been cut or reduced when the National Budget was approved.

For instance, the subject guidelines provides that the programmed appropriations for the Miscellaneous Personnel Benefits Fund (MPBF) in the National Expenditure Program (also known as the National Budget) have been significantly reduced (from ₱89 Billion to ₱27 Billion) when it was approved.

Consequently, the release of funds for the Performance-Based Bonus (PBB) including PS deficiencies provided under the MPBF (pursuant to Special Purpose [SP] No. 1) has been hampered according to the Circular.

Remedy available for government agencies in case of deficiency in Personnel Services allotment

Thus, national government agencies concerned are instructed by the DBM to utilize the following, to cover PS deficiencies in salaries, bonuses, allowances, associated premiums, among others:

1. Available PS allotments realized from unspent compensation/ benefits of employees as mentioned in item 5.2.3 of the NBC No. 590 (Fund Release Guidelines for CY 2023), as follows:

— Incurrence of leaves of absence without pay;

— Vacant positions on account of termination, resignation, transfer, retirement or separation;

— Delay in the actual assumption of duty from the date of appointment;

— Suspension and other disciplinary sanctions;

— Erroneous computations of PS benefits; or

— Other similar instances.

2. Any FY 2023 unreleased PS appropriations.

Remedy if NO PS allotment is available considering the above

If the above possible sources of PS allotment are not available, government agencies concerned may submit to the DBM a Special Budget Request (SBR) for the issuance of a Special Allotment Release Order (SARO) authorizing the payment for the PS deficiencies, as follows:

— All units under decentralized departments (i.e., Department of Education, Department of Health, Department of Public Works and Highways, Department of Labor and Employment – Technical Education and Skills Development Authority and Other Executive Offices – Commission on Higher Education) shall submit their requests to their respective Central Offices (COs), for evaluation/consolidation;

— All departments/agencies including the CO of decentralized departments shall submit their requests to the DBM CO; and

— SUCs shall submit their requests to the DBM Regional Office concerned.

The SBR shall be supported by the following, otherwise, the same shall not be processed by the DBM:

— Report on PS Deficiencies consistent with Financial Accountability Report (FAR) Nos. 1 and lA;

— Justification for incurrence of deficiency in PS appropriations; and

— Other relevant information/documents.

Download Circular Letter No. 2023-11 for more details.

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