FINALLY, the Department of Budget and Management has approved the city’s annual budget of P357 million, three months after its submission for review by that agency.

 The DBM said based on their review of the 2006 budget, Dagupan was able to substantially comply with the Local Government Code and its implementing rules and regulations.

 But the DBM also stated some exceptions and conditions in its letter to the city government dated August 30.

 One of the exceptions was the excess provision for extraordinary expenses amounting to P36, 302.61representing two per cent of the discount granted on real property tax payments that are not actual receipts.

 It cited that under section 325 (h) of R.A No.7160, the annual appropriations for discretionary purposes of the local chief executive shall not exceed two per cent of the actual receipts derived from basic real property tax in the next preceding calendar year.

 The DBM said the city did not also identify the personnel benefits covered by such item in the budget amounting to P3, 054,477.00.

 One of the conditions cited in the DBM letter to the city was the lump-sum appropriation for consultancy services in the amount of  P1.2 million under the office of the city mayor and the Sanggunian Panlungsod, respectively.

 The DBM said the amount shall be used strictly for the professional service fees of consultants who will provide highly specialized or technical expertise that cannot be provided by the regular staff but pointed out that the payment of said professional service fees should be in accordance with budgeting, accounting and auditing rules and regulations. – AQL

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