Budget releases must comply with DBM rules

MANILA, Philippines —  Increases in appropriations and new budgetary items introduced in the 2025 national budget will only be released once the concerned agencies comply with necessary requirements, the Department of Budget and Management (DBM) clarified yesterday.

DBM Undersecretary Goddess Hope Libiran said the process is called For Issuance of Special Allotment Release Order (FISARO), which is an authorization document for the allocation and utilization of public funds for various government projects and programs.

“SARO will be released upon the agency’s compliance with requirements,” Libiran said in a chat message to reporters.

This directive aligns with the guidance outlined in Section VI in President Marcos’ veto message, which emphasizes fiscal prudence and adherence to programmed government priorities.

The veto message, which serves as a guiding document for budget execution, specifically states:

“In the exercise of the budget execution function vested upon the Executive branch, it is understood that the increases in appropriations and new budgetary items introduced by the Congress in this Budget shall be subject to the National Government’s cash programming, observance of prudent fiscal management, applicable budget execution rules and procedures, and approval by the President based on the programmed priorities of the government.”

Libiran stressed that adjustments in appropriations must align with the President’s programmed priorities. As part of the process, agencies would be required to adjust their performance targets in response to any changes in their budgets.

The response of the DBM came after former Senate president Franklin Drilon’s proposal, urging Marcos to classify all Congress-introduced amendments in the 2025 General Appropriations Act (GAA) as “for later release” or FLR to prevent public funds from being used by politicians for the 2025 elections.

The FLR mechanism is a practice implemented by the DBM during the previous administration. Under this approach, Congress-introduced amendments that are not part of the President’s National Expenditure Program are classified as FLR, requiring compliance with specific conditions before funds are released.

By subjecting Congress-introduced amendments to the FLR classification, Drilon argued, the public would be assured that government funds would not be used for election purposes.

There were almost five million beneficiaries of the Ayuda sa Kapos Ang Kita Program in 2024.

“The AKAP program has demonstrated strong impact with P26.157 billion in funds, or 99.31 percent utilization rate, from the total P26.7 billion budget allocation for 2024,” DSWD spokesperson Irene Dumlao said.

AKAP was first implemented in 2024. In a statement, the DSWD said the AKAP funds were allocated across the country and almost all regions achieved more than 99 percent in fund obligations, with Cagayan Valley (Region 2), Davao Region (Region 11) and Caraga (Region 13) posting 100 percent utilization.

The AKAP provides cash assistance of P5,000 to eligible beneficiaries. To qualify, families must have an income that falls below the poverty threshold and must not be receiving assistance from other government programs.

5 million beneficiaries

With President Marcos’ signing of the General Appropriations Act (GAA) for 2025 last December, around five million minimum wage earners and Filipinos living on the poverty threshold are expected to benefit from the DSWD’s AKAP.

In line with the President’s directive, secretaries of the DSWD, the Department of Labor and Employment and the National Economic and Development Authority are scheduled to meet today to draw up the guidelines for AKAP as a condition for its release by the Department of Budget and Management.

DSWD Secretary Rex Gatchalian has assured the public that the AKAP, one of the agency’s social protection programs, would be “insulated from politics.”

“The DSWD will not be used by anybody for their political gains not next year, not ever,” Gatchalian said.

“Our social workers, and not politicians, determine the beneficiaries. DSWD social workers also process the AKAP applications and determine how much the qualified beneficiaries will get,” the DSWD chief pointed out.

He further asserted that the assessment being done by the agency’s licensed social workers is critical to avoid the overlapping of assistance with the other DSWD social protection programs.

The DSWD chief said the agency’s Field Offices actively coordinate and work with LGU officials in payout activities but only for logistical support.

The menu of assistance include medical, funeral, food, and cash relief which are provided directly through the DSWD’s Crisis Intervention Units/Sections at both the Central and Field Offices and through the Social Welfare and Development and Satellite Offices across the country.

Gatchalian said the funding for AKAP comes from the agency’s budget as provided for under the General Appropriations Act signed by President Marcos last Dec.30.

“There is no GAA line item that entitles any congressional district or LGU to have an allocation in any amount and lodged this with the DSWD that could benefit their constituents. Referrals from legislators and local executives are entertained pursuant to existing DSWD guidelines,” he said.

‘Powerful example’

For his part, House committee on appropriations chairman and Ako party-list Rep. Zaldy Co hailed DSWD’s AKAP as “a powerful example of transparent and efficient use of public funds.”

Co, chairman of the House Committee on Appropriations, said AKAP sets the standards for corruption-free governance.

“AKAP is a clear example of how government funds should be used—efficiently and without corruption,” Co said.

“Do we want confidential funds like those in Davao City, DepEd or Office of the Vice President under Vp Sara Duterte which were riddled with 100% corruption, or programs like AKAP with zero corruption?” Co asked.

“Those who strongly criticize are usually those who have done nothing to help the people.  AKAP directly addresses inflation and uplifts the lives of our countrymen, especially the near-poor,” he added.

Co cited an official statement from the DSWD maintaining that AKAP provided P5,000 in cash assistance to nearly five million near-poor Filipinos in 2024, or a 99.31 percent utilization rate of its P26.7 billion budget.

He said it has been widely praised for its transparency and impact, helping families cope with the challenges of inflation and economic hardship.

Co also used AKAP’s success to highlight the failures of past administrations.

“If we can achieve this now, why wasn’t it done before? Where did the money go? Does it go to the confidential funds or to the 27,000 extrajudicial killings?” he asked.

Calling for justice for the Filipino people, Co urged accountability for the misuse of public resources and human rights abuses of the past.

“The Filipino people deserve justice for those who were wronged. Let us not divert the issue. Those responsible for the abuse of public funds and the lost of innocent lives must be held accountable,” Co said.

Co stressed the importance of programs like AKAP in demonstrating how good governance can make a real difference in people’s lives.

“Criticism without action is noise. While others talk, AKAP delivers. That is what happens when we give priority to the interest of the people over politics,” he said.

He reaffirmed his commitment to pushing for transparency and accountability in all government initiatives.

“This is the kind of leadership Filipinos deserve—honest, efficient, and free from corruption. Let’s learn from the past and build a better future for every Filipino,” Co said. - Elizabeth Marcelo, Cecille Suerte Felipe, Delon Porcalla, Jose Rodel Clapano, Janvic Mateo