DBM Guidelines on the Validity of Unprogrammed Appropriations for CY 2023

Introduction:

The Department of Budget and Management (DBM) recently issued an amendment to National Budget Circular (NBC) No. 590 (Fund Release Guidelines for CY 2023) to provide guidelines on the validity of funds under the Unprogrammed Appropriations (UA) of the Fiscal Year 2023 General Appropriations Act (GAA) or Republic Act No. 11936.

This amendment, outlined in NBC No. 590-A, aims to provide clarity and guidelines on the utilization of funds under the UA. In this blog post, we will delve into the key points of the amendment and its implications.

Purpose and Legal Basis:

Section 70 of the General Provisions (GP 70) of the FY 2023 GAA, R.A. No. 11936 provides that all appropriations authorized in the Act shall be available for release, obligation and disbursement until December 31, 2024, except for Personnel Services which shall be available for release, obligation and disbursement until December 31, 2023. On the other hand, appropriations for the statutory shares of LGUs shall be available for obligation and disbursement until fully expended.

Further, GP 70 provides that the construction of infrastructure projects, delivery of goods and services, inspection, and payment of infrastructure capital outlays, MOOE, and other capital outlays, including those subsidy releases to GOCCs for MOOE and capital outlays shall be made not later than December 31, 2024.

Key Emphasis of the Circular

The Circular clarifies that GP 70 does not exclusively limit its application to programmed appropriations but covers all appropriations authorized in the GAA, including unprogrammed appropriations.

However, due to the nature of the unprogrammed appropriation’s funding sources (such as excess collections, new revenues, and approved loans which pertains to 2023 only), the DBM reiterates that the funds covering the FY 2023 unprogrammed appropriations shall be available for release until December 31, 2023 only.

However, the funds released under the FY 2023 unprogrammed appropriations shall be available for obligation and disbursement until December 31, 2024, except of Personnel Services, which will have a validity period ending on December 31, 2023, in accordance with GP 70.

To guide government agencies concerned, the DBM provides in the Circular a summary of the above amendments as shown below:

Reference:

National Budget Circular No. 590-A — Amending Item 3.3 of National Budget Circular No. 590 dated January 3, 2023 on the Guidelines on the Validity of Unprogrammed Appropriations 

National Budget Circular No. 590 — Fund Release Guidelines for