President Rodrigo Roa Duterte has signed into law Republic Act No. 11640 which effectively extends the validity of the FY 2021 General Appropriations Act, the first pandemic-era national budget, until December 31, 2022.

With the extended validity period, government agencies have another year to use their respective allocations under the FY 2021 national budget. In particular, appropriations for maintenance and other operating expenses as well as for capital outlays are now available for release, obligation and disbursement until the end of the next fiscal year. In addition, funds for infrastructure capital outlays, including those subsidy releases to GOCCs for infrastructure can now be obligated, completed and paid out until December 31, 2022. 

However, the budget validity extension would not cover funds for Personnel Services and thus, this will expire by the end of 2021. 

After the one-year extension, all unreleased appropriations and unobligated allotments shall lapse, while unexpended or undisbursed funds will be reverted to the National Treasury. 

The Department of Budget and Management shall issue the necessary guidelines to guide agencies in the release, obligation and disbursement of funds pursuant to the Republic Act.