Bill allows govt agencies to retain and use their savings

for unprogrammed capital outlay projects

A lawmaker is seeking to authorize local government units (LGUs), agencies, departments,
bureaus and commissions of the national government to retain their savings and use these for other
unprogrammed capital outlay proects such as purchase at bargain prices of e!uipment that would not
be available all year round"
#ep" $agtanggol Gunigundo (%
nd
&istrict, 'alenzuela (ity) said the main goal of his proposal
embodied in )ouse *ill +,-,, or the proposed ./0penditure and 1avings 2ncentive Act of %34+,5
which is originally )* 64,4 that they filed in the 4+
th
(ongress, is to authorize heads of LGUs and
government agencies to retain savings from their $aintenance and 7ther 7perating /0penses
($77/) and (apital 7utlay ((7) for purposes of providing services and e!uipment beyond the
fiscal year such savings accrued"
)e said these savings could be used for other unprogrammed capital outlay proects such as
ac!uisition at bargain prices of e!uipment that would not be available all year round"
Gunigundo said his proposal encourages austerity and provides budget fle0ibility, thereby
cutting down red tape and corruption in the procurement process"
.8his is an effective measure to reduce the budget deficit of the national government and
likewise a good alternative for the national government to accelerate the disbursements for its
intended programs,5 said Gunigundo"
Gunigundo, a &eputy $aority Leader, said proper post9audit should be conducted to prevent
abuse of this authority to retain and use government savings for unprogrammed capital outlay
proects"
:resently, he noted there is no incentive and motivation for LGUs and government agencies to
implement belt9tightening measures since they have to return their savings to the ;ational 8reasury
or to the local treasury at the end of the fiscal year"
)ouse *ill +,-,, now pending the )ouse (ommittee on Appropriations chaired by #ep"
2sidro Ungab (<
rd
&istrict, &avao (ity), defines savings as the e0cess amount in the financial account
of an agency for the appropriation year after spending for the intended and programmed proects"
2t provides that all head of various LGUs and national government departments, bureaus,
commissions and other agencies shall hereby be allowed to retain savings from the $77/ and (7
beyond the fiscal year such savings accrued" 8hese savings may be used by the said government unit
in funding unprogrammed (7 proects, subect to post9audit"
2t directs the 1ecretary of *udget and $anagement (&*$), in coordination with the
&epartment of 2nterior and Local Government (&2LG), to promulgate the necessary rules and
regulations for the effective implementation of the Act within <3 days from its effectivity" (<3) rbb
NR # 3565
AUG 21, 2014