Thread by @znsuzara

Alamin mo muna ang buong budget process ha? Para alam mo kung saang phase pwede ang reallocation

During BUDGET PREPARATION, the budget can be reallocated by an incoming administration.

During BUDGET LEGISLATION, legislators can reallocate the Executive-proposed version.

During BUDGET EXECUTION, the constitutional heads of the different branches of gov’t can reallocate the budget via use of savings and augmentation and/or modification of allotment

Here are the legal bases:

Section 25 (5), Article VI of the 1987 Constitution

Section 39, Chapter 5, Book VI of the 1987 Administrative Code (Executive Order No. 292), Authority to Use Savings in Appropriations to Cover Deficits

General Provisions of every GAA

General Provisions of every General Appropriations Act

While it is true, that MASSIVE REALLOCATION LIKE BAYANIHAN needed the approval of Congress,

The concept of “reallocation” during other phases of the budget process do not automatically constitute technical malversation.

Following these legal bases, the concept of “reallocation” again, technically referred to as “modification of allotment” and “use of savings and augmentation” also have specific provisions in the Budget Execution Guidelines that DBM issues every year

Reallocation has been called other terms in the post-EDSA PH budget system. It has been called “realignment” / “reprioritization.

The rules that governed these processes depended on the kind of “reallocation” that needed to done

“Reallocation” / “realignment” / “reprioritization” covered instances where changes in the budget had to be done a) within a program/activity/project, b) between or among allotment classes, c) between or among implementing units.

“Use of savings and augmentation” which is authorized under the Constution is also a kind of reallocation. This is more complicated.

Nevertheless, the approving authority for request for reallocation depends on its nature.

These rules have historically been encapsulated in the General Provisions of the GAA and the Budget Execution Guidelines issued by the DBM to the entire bureaucracy following the enactment of the GAA.

Not all instances of “reallocation” require congressional approval.

Not all “reallocations” of funds constitute technical malversation FOR AS LONG THEY COMPLY WITH EXISTING BUDGET RULES AND REGULATIONS DURING A PARTICULAR FISCAL YEAR.

In recent years, DBM coined the term “modification of allotment” to distinguish “reallocations” that involved smaller funds within a department/agency, within a program/activity/project, etc from those that will involve “declaration of savings and augmentation”

Declaration of savings and augmentation is the kind of “reallocation” that involves transfer of funds from one department to another.

Bayanihan is an example of this, though the magnitude of funds needed was such that it was difficult to rely on simple modifications

I do agree that massive reallocations of that sort should be authorized by Congress. Why? Because budgetary requirement for the pandemic PRACTICALLY INVOLVED CHANGING THE STRUCTURE OF THE 2020 TO A POINT THAT WAS BARELY RECOGNIZABLE.

DBM needed the authority to withdraw funds

But FUNDS OFFERED BY THE AGENCIES THEMSELVES FOR REALLOCATION / REALIGNMENT / REPRIORITIZATION is a different matter.

So kung ang konsepto ng reallocation ay equivalent agad to technical malversation, then I guess kelangan ihabla ang DBM, ang Kongreso, ang buong Executice branch pati na rin ang nagsulat ng 1987 Constitution at Admin Code for the existing budget rules on this process🤷🏻‍♀️

Calling me “technical malversation” also doesn’t change the fact that I am and will always be a proud DBM alumna💪🏼#SorryNotSorry

P.S. for those interested in the budget references I cited, below are the links:

1. General Provisions of the 2022 GAA - dbm.gov.ph/wp-content/upl…

2. National Budget Circular 587 - dbm.gov.ph/wp-content/upl…

P.S.S. If you noticed, the legal bases do not explicitly mention the need for congressional approval to reallocate funds.

In fact, it is expressly provided in the 1987 Admin Code that the PRESIDENT CAN SUSPEND EXPENDITURE OF APPROPRIATIONS.

But the thing with the reallocations needed under Bayanihan was that NEW EXPENDITURES that were not in the GAA at that time had to be funded. Therefore, Congressional approval logically had to be sought.
Tama lang para naman may legal cover ang ordinary civil servants.

Ngayon, yung konteksto na sinasabi ko to reallocate the budget, hindi kagaya ng Bayanihan.

Bilang nagtrabaho sa DBM, ALAM KO NA BUDGET PREPARATION FOR 2023 NGAYON KAYA PWEDE MAGREALLOCATE NG BUDGET KAHIT ILANG BILYON PA YAN. WALA PA NGANG NATIONAL EXPENDITURE PROGRAM EH.

Inihahanda palang ng DBM ang NEP. Naghihintay sila sa pagpasok ng bagong administration kasi kailangan rin nilang malamang mula sa bagong presidente kung anu-ano priority programs at ilang bilyon ba ang kailangan nilang ireallocate from the proposal of the outgoing admin

Iyan ang proseso. Iyan ang nuances ng national government budgeting

Update: She blocked technical budget people correcting her.

https://twitter.com/beritasekwitas/status/1543233877879267328?s=21&t=nR3AWAXErmNi5BmEUfLY9g

Sya ang nainis🤣🤣🤣

Dahil dyan, I will not get lost🤣🤣🤣