What is an Obligational Authority?

An obligational authority is a document issued by the Department of Budget and Management (DBM) to a government agency authorizing the agency to incur obligations or enter into a contract.

There are several forms of obligational authority. These documents include the following:

1. GAA-as-Allotment-Order (GAAAO). The GAAAO serves as an obligational authority wherein appropriations in the GAA are considered released, except those identified in the pertinent issuance as “For Later Release” or “Negative List”.

2. General Allotment Release Order (GARO). A GARO is a comprehensive authority issued to all national government agencies, in general, to incur obligations, i.e. Retirement and Life Insurance Premium (RLIP), except RLIP for the departments/agencies chargeable against Special Accounts in the General Funds (SAGFs) and those covered by special arrangements.

3. Special Allotment Release Order (SARO). A SARO is a specific authority issued by DBM to identified agencies to incur obligations not exceeding a given amount during a specified period for the purpose indicated. It shall cover expenditures the release of which is subject to compliance with specific laws or regulations, or is subject to separate approval or clearance by competent authority.

Source: Glossary of Terms, Department of Budget and Management