Must-read updates!

In my post last Oct 10th (Waived items in the 2010 NEP), I mentioned that three (3) PS costs were retained as waived items from the 45%-55% PS limitation. My source of information was the 2010 National Expenditures Program (NEP), otherwise known as the President's Budget, particularly, Section 87, General Provisions which was posted in the DBM Central Office web site. The printed hard copy of the same document, however, revealed that their are two (2) other PS costs added as waived items. These are: (a) retirement gratuity and terminal leave benefits of retiring LGU personnel; and (b) in the case of barangays, the Year-end Bonus of mandatory barangay officials up to P1,000 for the Punong Barangay and P600 each for the Kagawad, Barangay Secretary and Treasurer.

Before they went on recess last October, the House of Representatives approved on second reading the 2010 Budget (General Appropriations Bill). The waived items mentioned were carried in the House approval. It is expected that when the Senate resumes session today, November 9th, the budget bill will be among those that the body will tackle.

Revision of 20% Development Fund usage. In the next few weeks, a joint circular will be issued by the DILG and DBM revising Joint Circular No. 2005-1, prescribing the guidelines on the utilization of 20% Internal Revenue Allotment for development projects.

The revised guidelines will be issued in response to the requests of LGUs stricken by the recent calamities. In particular, projects related to disaster response, mitigation and preparedness will be added as among those that can be funded by the 20% Development Fund. These include: construction or rehabilitation of evacuation or relocation centers; purchase or repair of area-wide calamity-related alarm or warning system; purchase or repair of calamity-related rescue operations equipment; construction or rehabilitation of local roads and bridges; and purchase of dump trucks, graders and pay loaders.

The joint circular was drafted by the DILG, and in our coordination meeting today, the regional directors were asked to come up with the DBM comments and suggestions.