DBM sets 'contingency plan' for 4th tranche of salary hike amid budget impasse

ABS-CBN News

Posted at Mar 15 2019 07:41 PM

MANILA - The Department of Budget and Management (DBM) on Friday said it has recommended a "contingency plan" to the Office of the President to fund the pending 4th tranche of salary increase for government workers should the budget impasse drag on.

Executive Order No. 201 states that the 4th tranche of salary adjustments will be funded by the full-year appropriations of the 2019 national budget.

However, the Congress was locked in a budget impasse as the Senate pushed for the “ratified version” against the Lower House’s position “on the line itemization and not lump sum” version.

In a statement, the DBM said it has recommended the amendment of EO No. 201 to authorize government agencies to utilize available funds under the reenacted budget "to meet the funding requirement of the salary adjustment."

"With this measure, the long overdue compensation hike that our public servants have been looking forward to can finally be granted," the DBM said.

Adjustments are subject to existing budgeting, accounting and auditing rules and regulations, it said.

Despite the plan, the DBM said it would still urge the Congress to pass the 2019 national budget "as soon as possible to end fiscal uncertainty."

Socioeconomic Planning Sec. Ernesto Pernia earlier warned that running the country on a reenacted budget for the entire year could stunt economic growth to as low as 4.2 to 4.9 percent, way below the government's target of 6 to 7 percent.