DBM affirms legality of Dagupan’s Supplemental Budget 2
THE Department of Budget and Management (DBM), in a letter dated January 7, 2025, said Dagupan’s P557.2 million Supplemental Budget No. 2 for Fiscal Year 2024, enacted through Appropriation Ordinance 2299-2024 by the Sangguniang Panlungsod (SP) on November 5, 2024, “shows substantial compliance with Republic Act 7160 and its Implementing Rules and Regulations and others applicable laws, rules and regulations.”
The letter, signed by DBM Region 1 Regional Director Ria Balsigan and addressed to the SP through Mayor Belen Fernandez, only made an exception on items of appropriation corresponding to the payment of prior years’ obligations amounting to P632,199.13.
The DBM said these items are not in accordance with the provisions of Section 350 of Republic Act No. 7160, which provides that all lawful expenditures incurred during a fiscal year “shall be taken up in the account of that fiscal year”.
Luz de Guzman, the mayor’s chief of staff, explained that the prior years’ obligation referred to, which covered office supplies, was incurred by the past Lim administration and whose original allocation was reverted by it for other programs and projects.
When Fernandez took over as mayor, suppliers of the office items came out and threatened legal action against the city government, which was why payment of these items were included in Supplemental Budget No. 2-2024.
Following the opinion of the DBM, the only remedy is to stop the payment of these items, De Guzman, former city budget officer, said.
The DBM also set some conditions for the expenditures of the supplemental budget. Among these are: 1) The creation of 62 positions must be in accordance with the provisions of Civil Service Commission Memorandum. Circular No. 19 s. 1992, and the priority shall be given to the creation of mandatory positions; 2) The Personnel Services for the above mentioned newly-created positions under the City Health Office must be by the provisions of applicable issuance/circulars, etc.; 3) The projects funded under the 20% Development Fund must be subject to the provisions of DBM-Department of Finance-Department of the Interior and Local Government Joint Memorandum Circular No. 2020-01 dated November 04, 2020; and 4) The items funded out of the Local Disaster Risk Reduction and Management Fund must be in accordance with the approved Local Disaster Risk Reduction and Management Plan.
The letter further stated that consistent with Section 327, in relation to Section 326 of RA 7160, “this review covers the ascertainment that the AO has complied with the requirements set forth in the Local Fiscal Administration of the same law.” (Leonardo Micua)
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