DBM to phase out SAROs and ABMs from budget release process 

The Department of Budget and Management (DBM) has decided to phase out its use of two key documents long used in authorizing releases of government funds because these requirements have been causes of delay in implementing programs and projects.   In a statement released Thursday, Budget Secretary Florencio Abad said the state bureaucracy will be weaned from its use of Special Allotment Release Orders (SAROs) and Agency Budget Matrices (ABMs) starting next year and until 2014.   He did not describe, however, how the phaseout will be done.   “Release documents like the SARO and ABM are supposed to aid in record-keeping and budget transparency. We noted, however, that fulfilling these documentary requirements can take considerable time for agencies, time that could otherwise have been spent in implementing crucial projects,” Abad said.   The Budget chief said that starting next year, the approved national budget or General Appropriations Act (GAA) will serve as the comprehensive release order to eliminate the need for the SAROs and ABMs—as a general rule.   Abad also said only a few budget items will be covered by DBM release orders in the new funds disbursement process.   Preparations for the 2013 national budget have begun. Abad said the phaseout of the SAROs and ABMs will depend much on the full breakdown of lump sum funds of government agencies in next year’s GAA.   “Once the General Appropriations Act can act as the release document, appropriations for all departments and agencies will have a one-year validity period. Lapsed allotments will not automatically carry over into the next fiscal year,” Abad said.   In the statement, the DBM said it “hit the ground running in executing the 2012 General Appropriations Act, having released around 90.5% of all agency budgets in the first two weeks of January alone.” — ELR/KG, GMA News