BAGUIO CITY – The Cordillera office of the Department of Budget and Management (DBM-CAR) declared as operative Ordinance No. 13, series of 2016 authorizing a supplemental budget involving an amount of P90.2 million to augment the 2016 and investment priority projects of the city government.
In her letter to the members of the city council coursed through Mayor Mauricio G. Domogan, Liza B. Fangsilat, DBM-CAR regional director, said the operation of the appropriation ordinance was effective as of the date fixed in the said local legislative measure subject to the posting requirement under Section 59 of Republic Act (RA) 7160 or the Local government Code of the Philippines.
Aside from the posting requirement, the city government was required to comply with several conditions prescribed for the implementation of the projects such as the city shall be guided by the pertinent provisions of the Supreme Court (SC) in the case of Hon. Gabriel Luis Quisumbing, et al. versus Hon. Gwendolyn F. Garcia, et al in the disbursement of the appropriations for various projects contained therein, particularly the P3.8 million earmarked for barangay assistance, the P700,000 allocated for livelihood projects, P300,000 for the establishment of additional tree parks or mini-parks in various barangays and the P6 million set aside for the reclamation and construction of sidewalk pavement, markings and railings where applicable including tactile pavement a trip for the visually impaired at the central business district and other commercial zones.
In case, for instance, where the local government unit operates under an annual as opposed to a re-enacted budget, Fangsilat cited that it should be acknowledged that the appropriation passed by the city council may validly serve as the authorization required under Section 22© of RA 7160 considering that an appropriation is an authorization made by ordinance, directing the payment of goods and services from local government funds under specified conditions or for specific purposes.
She added the appropriation covers the expenditures which are to be made by the local government unit, such as current operating expenditures and capital outlays.
According to her, the question whether a council authorization separate from the appropriation ordinance is required should be resolved depending on the particularly circumstances of the case.
“Resort to the appropriation ordinance is necessary in order to determine if there is a provision there which specially covers the expense to be incurred or the contract to be entered into. Should the appropriation ordinance, for instance, already contain in sufficient detail the project and cost of a capital outlay such that all the local chief executive needs to do after undergoing the requisite public bidding is to execute the contract, no further authorization is required, the appropriation ordinance already being sufficient,” Fangsilat stressed.
On the other hand, The DBM-CAR official pointed out the specific council approval may also be required for the purchase of goods and services which are neither specified in the appropriation ordinance nor encompass within the regular personal services and maintenance operating expenses.
At the same time, she cited that the appropriation of 20 percent of the internal revenue allotment for development projects shall strictly cover only development projects as prescribed under DBM-DILG Joint Memorandum Circular No. 2011-1 dated April 13, 2011 and shall be utilized for programs, projects and activities as approved under the 2014 first supplemental annual investment program.
Subsequently, she claimed that the allocation for the local disaster risk reduction management fund corresponding to 5 percent of the estimated income from regular sources shall be set aside to support disaster risk reduction management activities such as but not limited to pre-disaster risk reduction management including trainings, purchase of life-saving, rescue equipment supplies and calamity insurance and construction of evacuation centers, as provided under pertinent laws, rules and regulations.
Fangsilat asserted that the disbursement of funds shall conform with the general welfare clauses under Section 16 of the Local government code and the fundamental principles under Section 305 which states the same.
Further, she said the procurement of all goods and services, infrastructure projects and consulting services shall be subject to the provisions of Republic Act 9184 otherwise known as the Government Procurement Reform Act.
“It is understood that this review action does not authorize any item of appropriation that is specifically prohibited by or inconsistent with the provisions of law,” Fangsilat added.
By Dexter A. See