Government agencies with unused funds can't have more money

The discovery of large amounts of unused or idle funds in some government agencies has prompted President Gloria Arroyo to direct the implementation of the "No Report, No Fund Release" policy.

Budget Secretary Rolando Andaya said the president wanted a stricter policy on this matter, which means that all agencies were ordered to include their unused and unobligated capital outlays last year in their funds for 2007 before asking for more allocation.

Andaya said Arroyo's order provides that an agency, with unutilized and unobligated capital outlays in 2006, shall be allowed only to request for additional budget if it has already spent at least half of its previous continuing fund through the present year.

The Budget and Management Department will soon issue guidelines on the format of reports that government agencies shall submit to the department in compliance with the "No Report, No Fund Release" policy.

A report shall contain the particular agency's use of expenditures program, special release program and notice of cash availability.

"We will be coming up with guidelines in making agency expenditure accomplishment reports to ensure that the format, information and contents are the same," Andaya said.

He said this new policy will ensure that government funds are released and used efficiently that would improve the financial capacity of each agency. - Ferliza C. Contratista