Reenacting the Reenacted in the Year of the Pig!

Today, January 2nd is the start of official working hours in the bureaucracy for fiscal year 2007. I don't know much about chinese astrology but year 2007 is universally considered as the "Year of the Fire Boar or Pig" (Ding Hai in Chinese)which according to Feng Shui experts, is characterized by clashing elements, fire and water that could mean conflict and even illness.

I don't mean to paint an unrosy picture at this start of the year - I'm no Madam Auring or Paul Ng - but we already experience the so-called clashing of the elements in the bureaucracy with Congress not coming to terms on whose preferences would prevail over the national budget even before the Year of the Pig unfolds. Thus we commence the fiscal year with a reenacted budget so as not to disrupt government operations and delivery of essential services.

The DBM has issued towards the last working day of December 2006, a guideline on the releases of funds for January 2007. Sad to say, we are again reverting to piece meal releases instead of the much desired comprehensive one that marks the so-called predictability of funding.

The releases are computed at one twelfth (1/12) of the total Personal Services excluding Productivity Incentive Benefits, Clothing Allowance, Year-end Benefits, and lump sums for creation of positions - based on the level of the agencies' budget in the 2007 National Expenditure Program (NEP). Maintenance and Other Operating Expenses are likewise computed at one-twelfth (1/12) of the agencies' budget level in the NEP. For retirement benefits, the DBM will continue to process and release the funds as submitted. In the case of the Internal Revenue Allotment (IRA) of LGUs, the January requirements shall be computed on the 2006 Reenacted Budget. We anticipate LGUs to howl on the amounts to be released as it has been widely publicized that with the passage of the 2006 supplemental budget last October, the IRA is now treated as automatic appropriation.

We expect that this reversion to the 2006 reenacted level of the IRA is just temporary and that the release of the LGUs share to the level that they should be receiving pursuant to the Local Government Code will be made in due time.