The President’s Affirmation Message dated January 6, 2020 on the FY 2020 General Appropriations Act (GAA), Republic Act No. 11465, particularly on Section IV on Increases of Appropriations and New Budgetary Items, states:

As a final note, let me emphasize that the increases and new budgetary items introduced in this Act by Congress shall be subject to the National Government’s cash programming and prudent observance of responsible fiscal management, applicable rules and procedures during budget execution, and approval by the President based on the programmed priorities of the government.

Inasmuch as said increases and new items have corresponding effects in the respective outputs and outcomes of the agencies concerned, the DBM shall inform the agencies of the changes in their respective appropriations and require the submission of documents to ensure their implementation-readiness and alignment with the programmed priorities of the government. (emphasis supplied)

Upon the enactment of the FY 2020 GAA, the Department of Budget and Management (DBM) issued National Budget Circular (NBC) No. 578 dated January 6, 2020 to prescribe the guidelines on the release of funds for FY 2020.  In the said issuance, the total expenditure program for FY 2020 of P4.1 trillion was classified into: For Comprehensive Release (FCR) for items to be released with the GAA as the Allotment Order (GAAAO), and For Later Release (FLR) for items to be released using the Special Allotment Release Order (SARO) or General Allotment Release Order (GARO). The FLR items are those the release of which shall be subject to compliance with specific conditions, such as documentary requirements and approvals from appropriate authorities.

In view of the conditions in the President’s Affirmation Message, the Congress-introduced increases in appropriations and new budgetary items in the FY 2020 GAA which did not undergo the usual budget evaluation process, thus, were not part of the President’s Proposed Budget (National Expenditure Program) will be subjected to compliance with documentation requirements to serve as basis for the DBM in recommending the release of funds for the President’s approval/directive. This shall ensure that government funds shall be made available only for projects which are implementation-ready for the year and aligned with government priorities.  

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