THE Department of Budget and Management (DBM) said the fourth tranche of salary increases for government workers will be financed by available appropriations from the re-enacted 2018 Budget.
National Budget Circular No. 575 posted on DBM’s website on Monday, covers “all positions for civilian personnel, whether regular, casual, or contractual in nature, appointive or elective, full-time or part-time, now existing or hereafter created in the Executive, Legislative and Judicial Branches, the Constitutional Commissions and other Constitutional Offices, and SUCs (state universities and colleges).”
However, state workers without employer-employee relationship and with salaries sourced from non-personnel services appropriations of agencies are excluded from the coverage.
The funding for the fourth tranche of the salary hike for government workers will be charged against “any available appropriations under the 2018 General Appropriations Act, as reenacted” this year.
The budget circular also provided rules on granting bonuses such as the mid-year bonus, productivity enhancement incentive and performance-based bonus.
Last week, President Rodrigo R. Duterte signed Executive Order (EO) No. 76 authorizing funding for the salary hike. This amended EO No. 201 or the fourth tranche of state employees’ salary adjustments signed by President Benigno S.C. Aquino III in 2016.
On March 15, the DBM recommended that Mr. Duterte amend the EO signed by his predecessor to “authorize government agencies to utilize available appropriations under the re-enacted budget in the meantime to meet the funding requirements of the salary adjustments.”
The standoff which has delayed the P3.757-trillion 2019 appropriations bill ended on Tuesday after Senate President Vicente C. Sotto III signed the document “with reservations,” leading to its transmittal to Malacañang for the President’s signature.
The budget delays stemmed from the refusal of the Senate to accept the allegedly “unconstitutional” insertions made by members of the House of Representatives after the bicameral conference committee agreed on a final version for the President’s signature.
The President’s spokesperson, Salvador S. Panelo, said that Mr. Duterte “can sign it immediately” if he feels the alleged post-ratification realignment does not violate the Constitution.
Socioeconomic Planning Secretary Ernesto M. Pernia said a Budget deadlock that lasts until April will bring down full-year growth to 6.1-6.3%, well under the government’s original 7-8% target and likely level with the 2018 pace of 6.2%.
Economic managers were forced to reduce their growth targets to 6-7% this year from 7-8% previously, because it will be “very difficult” to catch up with the rollout of infrastructure projects after missing much of the dry-season window for construction. — Karl Angelo N. Vidal

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