P162-M supplemental funds for Iloilo towns 'inoperative', says SP

December 7, 2012 11:18 pm 

ILOILO City, Dec. 7 -– The supplemental budget of five towns here amounting to over P162.5 million has been declared by the Sangguniang Panlalawigan (SP) as “inoperative” due to some discrepancies.

The frozen funds for Personal Services (PS) affect the towns of Sta. Barbara (P36.4 million), Barotac Viejo (P37.7 million), Miagao (P39.1 million), Alimodian (P26.4 million) and New Lucena (P22.8 million).

The appropriation for PS is intended for the salaries and other benefits of regular, co-terminus and casual employees of the local government unit.

Appropriations Committee Chairman Board Member June Mondejar said the additional PS funds have exceeded the 45 percent cap set by Section 325 of Local Government Code as well as the Local Budget Circular No. 98 of the Department of Budget and Management (DBM).

In his committee report, Mondejar disclosed that Sta. Barbara’s additional budget for PS has excess of P99,629; P5.8 million for Barotac Viejo; P192,705 for Miagao; P27,253 for Alimodian, and P1.2 million for New Lucena.

Since the funds exceeded the PS limitation, the guidelines of the DBM, provides that LGUs can no longer provide additional PS costs until such time that the cap is observed.

Furthermore, the rules state that the municipality is precluded from incurring additional PS expenditures except to provide for mandatory expenditures, he said.

It also mandates that the obligations or disbursements of the aforementioned supplemental budget shall not exceed the amount authorized by the Sangguniang Bayan or Panlungsod for that matter.

To iron out the discrepancies in the appropriation ordinances, these will be returned to the concerned municipalities for ratification, according to Mondejar. (PNA)



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