RMC No. 35-2009: Publishes the full text of National Budget Circular No. 519 entitled “Guidelines on the Release of Funds for FY 2009”

Key points

1. FY 2009 GAA effectivity. The FY 2009 General Appropriations Act under RA No. 9524 took effect April 1, 2009. Unutilized allotments as of March 31, 2009 under SAROs chargeable against the FY 2008 GAA (R.A. No. 9498 as reenacted) are no longer available for obligation.
2. Allotment Release Program. Each agency’s Allotment Release Program equals its budget under the FY 2009 GAA or the National Expenditure Program, whichever is lower. Certain obligations, continuing appropriations and Unprogrammed Fund releases are charged against it and are not add-ons, while releases from multi-user Special Purpose Funds are over and above it.
3. Obligation and disbursement authority. Obligational authority is issued through the Agency Budget Matrix (ABM) and SAROs. Disbursement authority is issued through the Notice of Cash Allocation, Non-Cash Availment Authority and Cash Disbursement Ceiling.
4. Performance review and reports. Agencies submit Budget Execution Documents and Budget Accountability Reports to DBM under NBC Nos. 507 and 507-A. The Agency Performance Review results guide releases, withdrawals, realignments and revisions of targets, and the no report, no release policy is strictly enforced.
5. Flexibilities under the GAA. Agencies may use savings, fees and excess income for stated purposes under General Provisions of R.A. No. 9524, such as augmenting MOOE items without prior DBM approval, except confidential and intelligence funds. Agencies already authorized by law to retain income cannot use excess income.
6. Personal liability. The Head of Agency or Operating Unit is personally liable for payment of expenditures not in accordance with the circular.

Who is affected

• Government departments and agencies
• Heads of Agency/OU

Deadlines and effectivity

• Circular issued June 29, 2009
• Budget circular dated March 27, 2009
• FY 2009 GAA effective April 1, 2009