DBM mandates austerity measures for COVID-19 response funding

The Department of Budget and Management (DBM) has mandated government agencies to implement austerity measures and postpone non-essential expenditures to safeguard funds for the ongoing COVID-19 response.

Budget Secretary Wendel E. Avisado issued National Budget Circular (NBC) No. 580 on April 22, emphasizing the need for fiscal prudence due to the pandemic's unpredictable duration and scale.

The circular mandates that 35 percent of programmed funding will not be released starting April 1.

Additionally, at least 10 percent of funds allocated for maintenance and other operating expenses, as well as capital outlays, will be withheld from release.

The release of funds for new programs and activities, including those introduced by Congress that are unlikely to be implemented within the year, is also prohibited.