Budget releases must comply with DBM rules

Increases in appropriations and new budgetary items introduced in the 2025 national budget will only be released once the concerned agencies comply with necessary requirements, the Department of Budget and Management (DBM) clarified yesterday.

- KEISHA TA-ASAN

DBM Undersecretary Goddess Hope Libiran said the process is called For Issuance of Special Allotment Release Order (FISARO), which is an authorization document for the allocation and utilization of public funds for various government projects and programs.

"SARO will be released upon the agency's compliance with requirements," Libiran said in a chat message to reporters.

This directive aligns with the guidance outlined in Section VI in President Marcos' veto message, which emphasizes fiscal prudence and adherence to programmed government priorities.

The veto message, which serves as a guiding document for budget execution, specifically states:

"In the exercise of the budget execution function vested upon the Executive branch, it is understood that the increases in appropriations and new budgetary items introduced by the Congress in this Budget shall be subject to the national government’s cash programming, observance of prudent fiscal management, applicable budget execution rules and procedures and approval by the President based on the programmed priorities of the government.”

Libiran stressed that adjustments in appropriations must align with the President’s programmed priorities. As part of the process, agencies would be required to adjust their performance targets in response to any changes in their budgets.

The response of the DBM came after former Senate president Franklin Drilon’s proposal, urging Marcos to classify all Congress-introduced amendments in the 2025 General Appropriations Act (GAA) as “for later release” or FLR to prevent public funds from being used by politicians for the 2025 elections.

The FLR mechanism is a practice implemented by the DBM during the previous administration. Under this approach, Congress-introduced amendments that are not part of the President’s National Expenditure Program are classified as FLR, requiring compliance with specific conditions before funds are released.