February 6, 2023

The Department of Budget and Management-Cordillera declared as inoperative a number of city ordinances, including the grant of cash incentives for nonagenarians.
DBM-Cordillera Director Irene Gahid informed city officials that aside from disallowing the grant of cash incentives for nonagenarians, some of the city’s funded projects were also disallowed because there are no available funds.
She pointed out that the city government did not submit Supplemental Budget No. 1 to the agency for review. As such, Supplemental Budget No. 2 will be considered as 2019 Supplemental Budget No. 1.
She added the city government informed the agency that Supplemental Budget No. 1 was covered by four ordinances but perusal of the same showed the reversion of funds and the re-appropriation of the same to other programs, projects, and activities in the same ordinances.
She cited Section 321 of Republic Act 7160 or the Local Government Code, which states that changes in the annual budget may be done through the passage of a supplemental budget ordinance, supported a certification by the local treasurer that funds are available or by new revenue sources.
She added that pursuant to Section 354 of RA 7160, the budget operations manual for local government units, as contained in Local Budget Circular 112, prescribed that an appropriation ordinance authorizing a supplemental budget should clearly indicate the source of funds available for appropriation, the items of appropriations affected, and the reasons for the change.
Gahid said although the four ordinances submitted by the city government are non-compliant in form, the same complied with the essential contents of an appropriation ordinance, but in adherence to Section 321 of RA 7160, a single appropriation ordinance consolidating the four ordinances should have been enacted to authorize the supplemental budget allocation.
She said the city’s 2019 annual investment plan showed that the programs, projects, and activities under the assailed ordinances have been excluded and the city did not submit any supplemental annual investment plan to cover the projects under the measures.
The city council has called for an executive session with members of the local finance committee and concerned departments to discuss possible remedies that can be adopted to convince the DBM to lift its declaration as inoperative the four ordinances. – PIO release