National Budget Circular - 2-1,: Department of Budget and Management ''''1 - Eo.''

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DEPARTMENT OF BUDGET AND MANAGEMENT ''''1=•eo.''
GENERAL SOLANO STREET, SAN MIGUEL, MANILA
NATIONAL BUDGET CIRCULAR No. 586

May -2-1, 2021
FOR All Heads of Departments/Agencies/State Universities and

Colleges (SUCs) and Other Offices of the National
Government, Government Owned or Controlled
Corporations (GOCCs) Receiving Budgetary Support;
Budget Officers; Heads of Accounting Units; and All Others
Concerned
SUBJECT GUIDELINES FOR THE IDENTIFICATION OF AGENCY

SAVINGS UNDER THE FY 2020 GAA (RA NO. 11465) FOR
PURPOSES OF AUGMENTATION OF APPROPRIATIONS
THEREIN DUE TO THE CONTINUING COVID-19 PANDEMIC
1.0 RATIONALE
1.1 The State of Calamity has been extended from the original six-month
period from March 16, 2020 to September 16, 2020 (Proclamation 921, s.
2020) up to September 12, 2021, through Proclamation 1021, s. 2020.
Given the emergent duration and scale of the COVID-19 pandemic, more
funds must be made readily available, in a sustainable and responsible
manner, to support the required intensified government-wide response
and recovery measures including various forms of socio-economic relief
and assistance to those affected by the imposition of stricter levels of
community quarantine.
1.2 Relative thereto, the President issued Administrative Order No. 41, s.
2021 last May 12, 2021, to tap agency savings in the form of unobligated
released allotments under the FY 2020 GAA which may be used to
augment deficient items of appropriations authorized by the same GAA,
including if necessary, items of appropriations for the provisions of
emergency subsidies to low-income households and disadvantaged or
displaced workers affected by the pandemic.
2.0 COVERAGE
All departments, agencies and operating units of the National Government,

including SUCs, GOCCs receiving allotments covered by budgetary
appropriations authorized under the FY 2020 GAA. This Circular shall cover
released allotments under the FY 2020 GM which remain unobligated as
of May 15, 2021, but not expressly earmarked for the implementation of
programs/activities/projects addressing the COVID 19 pandemic.
3.0 PURPOSE
To prescribe the guidelines for the agency submission of certification of

savings and documents/reports to the DBM to be used as bases for the
identification of savings corresponding to unobligated FY 2020 GAA-
covered allotment balances as of May 15, 2021.
4.0 GUIDELINES
4.1 Each NGA/SUC/Constitutional Office/GOCC shall identify, certify and

report their respective FY 2020 unobligated allotments as of May
15, 2021 on or before May 31, 2021. These unobligated allotments
correspond to savings as a result of completed, discontinued or
abandoned projects, or amounts generated due to improved systems
and efficiencies which resulted to the achievement of targets at a
lesser cost pursuant to Section 67 of the General Provisions of the FY
2020 GM.
4.1.1 For this purpose, agencies shall submit to the DBM the updated
FY 2021 Statement of Appropriations, Allotments, Obligations,
Disbursements and Balances (SAAODB) (Financial Accountability
Report (FAR) No. 1) as of May 15, 2021, pertaining to the FY
2020 appropriations.
4.1.2 The Certification of Identified Savings hereto attached as Annex

A duly signed by the agency head, budget and finance officers
of the government entity concerned shall likewise be submitted
to the DBM not later May 31, 2021. The certification shall
reflect adjustments, i.e. obligations incurred for the period April
1 to May 15, 2021.
4.2 Pending receipt of agency submission of updated SAAODB as of May

15, 2021, the DBM shall generate data from the FY 2021 SAOODB as
of March 31, 2021 which shall be used as basis to determine the FY
2020 unobligated allotment balances.
4.3 In case agencies do not submit the required reports and certification
mentioned in item 4.1 hereof within the cut-off period of May 31,
2021, the DBM shall consider the March 31, 2021 SAAODB reports
from its records as confirmed and this shall serve as basis for
recommendation to the President of the amount of savings.
4.4 The DBM shall submit a consolidated report of savings to the President,
based on the certification prescribed and the reports/documents
submitted by the agencies and/or DBM data.
4.5 Within the Executive Branch, the President is authorized to declare and
use savings to augment any deficient item related to measures
intended to alleviate the effects of the COVID-19 pandemic, including
provision for emergency subsidies to low-income households and
disadvantaged or displaced workers affected by the pandemic in
accordance with Section 2 of A.0 41, s. 2021
4.6 While vested with fiscal autonomy, the Legislative and Judicial
Branches of Government, as well as similar agencies so authorized, are
strongly urged to adopt and implement the herein prescribed
guidelines for the Executive Branch.
5.0 SEPARABILITY
If any part or provision of this Circular is held invalid or unconstitutional, other

provisions not affected thereby shall remain in force and effect.
6.0 REPEALING CLAUSE
All provisions of existing circulars and other issuances inconsistent with this
Circular are hereby rescinded/repealed and/or modified accordingly only for
purposes of implementation of this circular.
7.0 SAVING CLAUSE
Cases not covered in this Circular shall be referred to the DBM for resolution.
8.0 EFFECTIVITY
This Circular shall take effect immediately.
WEN DEL E. AVI

Secretary
ANNEX A
Department:
Agency:
CERTIFICATION OF IDENTIFIED SAVINGS
This is to certify that the amount of PhP is available and offered as savings pursuant to Administrative Order No. 41 series of 2021. Details are as follows:
Updated Unobligated Allotment Balances Remarks/Justification

Amount to be Offered as Savings
Particulars as of May 15, 2021 (pur. to Sec. 67 of the
PS MOOE FinEx CO TOTAL PS MOOE FinEx CO TOTAL FY 2020 GP)
Agency Specific Budget

by Program/Activity/Project
e.g., General Management and Supervision
Special Purpose Funds (Please specify the SPFs)

by Purpose
e.g., Miscellaneous Personnel Benefits Fund
Grand Total
Prepared by: Certified by: Approved by:
Budget Officer Finance Head Agency Head

Date: Date: Date:

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04.

NATIONAL BUDGET CIRCULAR No. 586

FOR All Heads of Departments/Agencies/State Universities and

SUBJECT GUIDELINES FOR THE IDENTIFICATION OF AGENCY

All departments, agencies and operating units of the National Government,

To prescribe the guidelines for the agency submission of certification of

4.1 Each NGA/SUC/Constitutional Office/GOCC shall identify, certify and

4.1.2 The Certification of Identified Savings hereto attached as Annex

4.2 Pending receipt of agency submission of updated SAAODB as of May

If any part or provision of this Circular is held invalid or unconstitutional, other

6.0 REPEALING CLAUSE

7.0 SAVING CLAUSE

This Circular shall take effect immediately.

WEN DEL E. AVI

CERTIFICATION OF IDENTIFIED SAVINGS

Updated Unobligated Allotment Balances Remarks/Justification

Agency Specific Budget

Special Purpose Funds (Please specify the SPFs)

Prepared by: Certified by: Approved by:

Budget Officer Finance Head Agency Head

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