MANILA — The Department of Budget and Management (DBM) has moved up the deadline for government agencies to request the release of additional funds and related budget authorizations to Nov. 3 from Nov. 16, citing the need to maximize budget utilization before the fiscal year closes on Dec. 31.

"Requests for additional obligational and disbursement authorities received by the DBM beyond the prescribed cut-off date shall be deferred for consideration in FY 2027," the DBM said in Circular Letter No. 2026-13 dated Oct. 21.

According to the DBM, the revised deadline "is intended for the timely assessment and prioritization of budgetary requests, considering that 97.1% of the FY 2026 Total Expenditure Program had already been released as of Oct. 15." The figure leaves less than 3% of the year's spending program unreleased as of that date, and pulling the cut-off forward by 13 days gives the budget agency roughly two additional weeks to assess and prioritize whatever requests come in before agencies lose the chance to secure additional authorizations within the current fiscal year.

The DBM is the Philippine government agency responsible for formulating and executing the national budget, and it issues circular letters to guide agencies on fund releases under the annual General Appropriations Act. Obligational authority allows agencies to incur legal commitments for programs and services, while disbursement authority governs the release of cash to carry out those commitments. Because these authorities determine when commitments can legally be made and paid for, deferral to FY 2027 pushes affected requests into the next budget cycle rather than the current one.

The DBM clarified, however, that requests for mandatory or urgent purposes are exempt from the prescribed cut-off date, subject to the availability of funds. These include additional personnel services requirements, such as the government's share of retirement and life insurance premium contributions, and terminal leave benefits for National Government personnel whose functions have been devolved to local governments.

The exempted items also cover requests for the issuance of non-cash availment authorities to record loan disbursements, as well as requests arising from extraordinary or prevailing circumstances that call for an immediate government response. The carve-outs leave a pathway open for time-sensitive requirements after Nov. 3, while other additional fund requests submitted past the deadline will be taken up under FY 2027 consideration.

— Justine Irish D. Tabile

Source: BusinessWorld