RMC No. 38-2015: Publishes the full text of Circular Letter No. 2015-7 issued by the Secretary of the Department of Budget and Management, entitled “Updated Guidelines for Issuance of Multi-Year Obligational Authority”

Key points

1. MYOA before bidding. Before bidding a multi-year contract for a Multi-Year Project, capital or non-capital, national government agencies must first secure a MYOA from the DBM.
2. Infrastructure programs. Capital expenditures requested for a MYOA are included by agencies in the Comprehensive Integrated Infrastructure Program or the Three-Year Rolling Infrastructure Program (TRIP), as reinstituted by the Committee on Infrastructure. The DBM and the National Economic and Development Authority jointly issue the TRIP guidelines.
3. Annual budget. Even with a MYOA, the annual requirement of the program or project is included in the proposed National Expenditure Program, subject to Congressional approval. Agencies include the requirement of MYOA-covered projects in their budget proposals to the DBM for the succeeding budget year.
4. Limit on obligations. Obligations incurred in any given year cannot exceed the allotment released for the purpose that year.

Who is affected

• National government agencies with multi-year projects