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Manila Bulletin devider Business devider Congressional budget additions face delays due to SARO requirement

Congressional budget additions face delays due to SARO requirement

Published Jan 8, 2025 08:04 am

Nearly P800 billion worth of projects and programs covered by the changes and adjustments in the 2025 national budget will face delays in fund release until the president issues approval.

Department of Budget and Management (DBm) Secretary Amenah Pangandaman cited Section 6 of the president’s veto message, stating that budget increases and new items introduced by Congress will depend on cash programming, fiscal management, budget rules, and presidential approval based on government priorities.

“Considering that such increases in appropriations and new budgetary items will have corresponding effects on the outputs and outcomes of the agencies concerned, the DBM shall inform the said agencies of the changes in their respective appropriations and require the submission of their revised performance targets,” it said.

Pangandaman stressed that Section 6 of the president’s veto message was not included in his previous veto messages.

Last year, budget changes were released without adjustments unless a Conditional Provision was in place.

The budget chief noted that by the first day of January 2024, 90 percent of the budget had already been released, with Special Allotment Release Orders (SARO) issued and cash requirements for the first quarter provided.

For the 2025 budget, however, projects, activities, and programs (PAPs) worth P783 billion are currently on hold.

In a statement released on Jan. 8, DBM said that all congressional additions to the 2025 budget will need a SARO before funds can be released.

A SARO is a government approval allowing agencies to spend a specific amount of money for a set purpose and time.

“This serves as an added safeguard to prevent misuse of the budget, ensuring that increases or new items introduced by Congress align with the government’s cash programming, adhere to prudent fiscal management, secure approval from the President, and comply with budget rules and guidelines,” the DBM said.

Out of the P783 billion allocated for projects, activities, and programs, the President rejected P26 billion. This move left P757 billion available for release once the SARO is issued.

These P757 billion budget adjustments are now subject to a process called FISARO (For Issuance of SARO). The SARO will only be released once agencies meet the necessary requirements and secure approvals from the president.

Pangandaman stressed that this process ensures government spending aligns with its priorities, promoting transparency, fiscal discipline, and efficient use of public funds.

Related Tags

Amenah F. Pangandaman 2025 national budget Department of Budget Management Procurement Service Budget Secretary
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